Report Title:

Motor Vehicle Dealers; Licensing

Description:

Provides that any person who sells five or more vehicles within a calendar year shall be considered a dealer subject to the Motor Vehicle Industry Licensing Act. (SB345 HD1)

THE SENATE

S.B. NO.

345

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

H.D. 1


 

A BILL FOR AN ACT

 

relating to motor vehicles.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 437-1.1, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

""New motor vehicle dealer" means a dealer who engages in the business of selling at wholesale or retail, or both, new motor vehicles or new and used motor vehicles.

"Used motor vehicle dealer" means a dealer who engages in the business of selling at wholesale or retail, or both, only used motor vehicles."

SECTION 2. Section 437-1.1, Hawaii Revised Statutes, is amended by amending the definition of "dealer" to read as follows:

""Dealer" includes ["auction"]:

(1) "Auction" as defined in this section [or any];

(2) Any person not expressly excluded by this chapter engaged in the business of selling, soliciting, offering, or attempting to negotiate sales, purchases, or exchanges of motor vehicles or any interest therein, including options to purchase motor vehicles[.]; or

(3) Any person not expressly excluded by this chapter who sells five or more vehicles within a calendar year.

["New motor vehicle dealer" means a dealer who engages in the business of selling at wholesale or retail, or both, new motor vehicles or new and used motor vehicles. "Used motor vehicle dealer" means a dealer who engages in the business of selling at wholesale or retail, or both, only used motor vehicles.] The term "dealer" excludes a person who sells or purchases motor vehicles in the capacity of:

(1) A receiver, trustee, personal representative, guardian, or any other person appointed by or acting under a judgment or order of any court;

(2) A public officer while performing official duties;

(3) A holder of an auction license issued under this chapter when acting within the scope of the license;

(4) An insurance company, finance company, bank, or other financial institution selling or offering for sale motor vehicles repossessed or foreclosed by it under the terms of a credit sale contract or security agreement;

(5) A person not engaged in the business of selling or purchasing motor vehicles when acquiring or disposing of motor vehicles for the person's own personal, family, or business use; provided that the vehicles are acquired or disposed of for the person's use in good faith and not for the purpose of evading any provision of this chapter;

(6) A consumer consultant who is not engaged in the business of selling, soliciting, offering, or attempting to negotiate sales or exchanges of motor vehicles or any interest therein for any dealer, and who for a fee provides specialized information and expertise in motor vehicle sales transactions to consumers wishing to purchase or lease motor vehicles. The consumer consultant shall register and pay a fee to the board prior to offering consultant services; or

(7) A Hawaii bank or its affiliate selling or offering for sale motor vehicles surrendered or redelivered to it under the terms of a lease, or sold by it pursuant to a purchase option contained in a lease."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.