Report Title:

Motor Vehicle Dealers; Licensing

Description:

Provides that any person who, within a calendar year, sells three or more vehicles owned by that person for less than a year shall be considered a dealer subject to the Motor Vehicle Industry Licensing Act. Requires applicants for a motor vehicle dealer's license to conspicuously post the name of the dealer at the dealer's site and ensure the site is easily accessible by the public.

HOUSE OF REPRESENTATIVES

H.B. NO.

138

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

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 who, within a calendar year, sells three or more vehicles owned by the person for less than one 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. Section 437-11, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Requirements to be met before issuance of dealer's and auction's license.

(1) The following requirements shall be met by an applicant for a dealer's license before a license may be issued by the motor vehicle industry licensing board:

(A) The applicant has a site which will be used primarily for the purpose of selling, displaying, offering for sale, or otherwise dealing in motor vehicles;

(B) The site has a permanent building thereon suitable for the display at any one time of at least three motor vehicles having an average base of at least ninety inches; [and]

(C) The site has suitable sanitation facilities[.];

(D) The site conspicuously displays the dealer's name on a sign in letters at least six inches in height; and

(E) The site is easily accessible to the public during normal business hours.

(2) The following requirements shall be met by an applicant for an auction's license before a license may be issued by the motor vehicle industry licensing board:

(A) The applicant has a permanent site which will be used primarily for the purpose of selling, displaying, offering for sale, or otherwise dealing in motor vehicles; and

(B) The site has suitable sanitation facilities."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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