H. B. 2028
(By Delegate Boggs)
[Introduced January 9, 2008; referred to the
Committee on Roads and Transportation then Finance.]
A BILL to amend and reenact §17A-6-4 of the Code of West Virginia,
1931, as amended; to amend and reenact §17A-6B-2 of said code;
to amend and reenact §17A-6C-2 of said code; and to amend and
reenact §17A-6D-5 of said code, all relating to increasing the
required bond for certain businesses regulated by the Division
of Motor Vehicles to fifty thousand dollars.
Be it enacted by the Legislature of West Virginia:
That §17A-6-4 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that §17A-6B-2 of said code be amended
and reenacted; that §17A-6C-2 of said code be amended and
reenacted; and that §17A-6D-5 of said code be amended and
reenacted, all to read as follows:
ARTICLE 6. LICENSING OF DEALERS AND WRECKERS OR DISMANTLERS;
SPECIAL PLATES; TEMPORARY PLATES OR MARKERS.
§17A-6-4. Application for license certificate; insurance; bonds; investigation; information confidential
.
(a) Application for any license certificate required by
section three of this article shall be made on a form prescribed by
the commissioner. There shall be attached to the application a
certificate of insurance certifying that the applicant has in force
an insurance policy issued by an insurance company authorized to do
business in this state insuring the applicant and any other person,
as insured, using any vehicle or vehicles owned by the applicant
with the express or implied permission of the named insured,
against loss from the liability imposed by law for damages arising
out of the ownership, operation, maintenance or use of the vehicle
or vehicles, subject to minimum limits, exclusive of interest and
costs, with respect to each vehicle, as follows: Twenty thousand
dollars because of bodily injury to or death of one person in any
one accident and, subject to the limit for one person, forty
thousand dollars because of bodily injury to or death of two or
more persons in any one accident, and ten thousand dollars because
of injury to or destruction of property of others in any one
accident.
(b) In the case of an application for a license certificate to
engage in the business of new motor vehicle dealer, used motor
vehicle dealer or house trailer dealer, the application shall
disclose, but not be limited to, the following:
(1) The type of business for which a license certificate is
sought;
(2) If the applicant is an individual, the full name and
address of the applicant and any trade name under which he or she
will engage in the business;
(3) If the applicant is a copartnership, the full name and
address of each partner in the copartnership, the name of the
copartnership, its post-office address and any trade name under
which it will engage in the business;
(4) If the applicant is a corporation, its name, the state of
its incorporation, its post-office address and the full name and
address of each officer and director of the corporation;
(5) The location of each place in this state at which the
applicant will engage in the business and whether the business is
owned or leased by the applicant;
(6) Whether the applicant, any partner, officer or director of
the business has previously engaged in the business or any other
business required to be licensed under the provisions of this
article and if so, with or for whom, at what location and for what
periods of time;
(7) Whether the applicant, any partner, officer, director or
employer of the business has previously applied for a license
certificate under the provisions of this article or a similar
license certificate in this or any other state, and if so, whether the license certificate was issued or refused and, if issued,
whether it was ever suspended or revoked;
(8) A statement of previous general business experience and
the past history of the applicant; and
(9) Any other information that the commissioner may reasonably
require which may include information relating to any contracts,
agreements or understandings between the applicant and other
persons respecting the transaction of the business, and any
criminal record of the applicant if an individual, or of each
partner if a copartnership, or of each officer and director, if a
corporation.
(c) In the case of an application for a license certificate to
engage in the business of new motor vehicle dealer, the application
shall, in addition to the matters outlined in subsection (b) of
this section disclose:
(1) The make or makes of new motor vehicles which the
applicant will offer for sale in this state during the ensuing
fiscal year; and
(2) The exact number of new and used motor vehicles, if any,
sold at retail and wholesale by the applicant or his or her
predecessor, if any, during the preceding fiscal year, and if no
new and used motor vehicles were sold at retail and wholesale by
the applicant or his or her predecessor, if any, during the
preceding fiscal year, the number of new and used motor vehicles the applicant reasonably expects to sell at retail and wholesale
during the ensuing fiscal year.
(d) In the case of an application for a license certificate to
engage in the business of used motor vehicle dealer, the
application shall in addition to the matters outlined in subsection
(b) of this section, disclose the exact number of used motor
vehicles, if any, sold at retail and wholesale by the applicant or
his or her predecessor, if any, during the preceding fiscal year,
and if no used motor vehicles were sold at retail and wholesale by
the applicant or his or her predecessor, if any, during the
preceding fiscal year, the number of used motor vehicles the
applicant reasonably expects to sell at retail and wholesale during
the ensuing fiscal year.
(e) In the case of an application for a license certificate to
engage in the business of trailer dealer, recreational vehicle
dealer, motorcycle dealer, used parts dealer or wrecker/
dismantler/rebuilder, the application shall disclose any
information that the commissioner may reasonably require.
(f) The application shall be verified by the oath or
affirmation of the applicant, if an individual, or if the applicant
is a copartnership or corporation, by a partner or officer thereof,
as the case may be. Except as provided in section two-a of this
article, the application shall be accompanied by a bond of the
applicant in the penal sum of
ten fifty thousand dollars, in the form prescribed by the commissioner, conditioned that the applicant
will not in the conduct of his or her business practice any fraud
which, or make any fraudulent representation which, shall cause a
financial loss to any purchaser, seller or financial institution or
agency, or the State of West Virginia, with a corporate surety
thereon authorized to do business in this state. The bond shall be
effective as of the date on which the license certificate sought is
issued.
(g) Upon receipt of any fully completed application, together
with any bond required under subsection (f) of this section, the
certificate of insurance as required in subsection (a) of this
section and the appropriate fee provided
for in section ten of this
article, the commissioner may conduct any investigation he or she
considers necessary to determine the accuracy of any statements
contained in the application and the existence of any other facts
which he or she considers relevant in considering the application.
To facilitate the investigation, the commissioner may withhold
issuance or refusal of the license certificate for a period not to
exceed twenty days.
(h) Any application for a license certificate under the
provisions of this article and any information submitted with the
application is confidential for the use of the division. No person
shall divulge any information contained in any application or any information submitted with the application except in response to a
valid subpoena or subpoena duces tecum issued pursuant to law.
ARTICLE 6B. LICENSE SERVICES.
§17A-6B-2. Applicant must be bonded.
(a) An application for a license certificate must be
accompanied by a bond in the penal sum of
twenty-five fifty
thousand dollars and have a corporate surety authorized to do
business in this state, to ensure that the applicant will not, in
the conduct of his or her business, make any fraudulent
representation which shall cause a financial loss to any purchaser,
seller, financial institution, agency, or the State of West
Virginia. The bond shall be effective on the date the license
certificate is issued.
(b) A licensee shall keep the bond in full force and effect at
all times. The aggregate liability of the surety in no event shall
exceed the principal sum of the bond. The surety on such bond
shall have the right to cancel such bond upon giving thirty days'
notice to the commissioner and thereafter shall be relieved of
liability for any breach of condition occurring after the effective
date of said cancellation.
ARTICLE 6C. AUTOMOBILE AUCTION BUSINESSES.
§17A-6C-2. Bonds and insurance.
(a) An application for a license certificate must be
accompanied by a bond, issued by a surety corporation authorized to issue bonds in this state, in the penal sum of twenty-five fifty
thousand dollars, to ensure that the licensee will not make
fraudulent representations to the detriment of any purchaser,
seller, financial institution or the State of West Virginia. The
bond shall be effective on the date the license certificate is
issued. A licensee shall keep the bond in full force and effect at
all times. The aggregate liability of the surety in no event shall
exceed the principal sum of the bond. The surety of the bond shall
have the right to cancel upon giving thirty days' notice to the
commissioner and shall be relieved of liability for any breach of
condition occurring after the effective date of the cancellation.
(b) An application for a license certificate must also be
accompanied by a certificate of insurance certifying that the
applicant has in force an insurance policy, issued by an insurance
company authorized to do business in this state, insuring the
applicant and any other person using any vehicle or vehicles owned
by, or in the possession of, the applicant with the expressed or
implied permission of the applicant, against loss from the
liability imposed by law for damages arising out of the ownership,
possession, operation, maintenance or use of such vehicles, subject
to minimum limits, exclusive of interest and costs, with respect to
each vehicle, as follows: Twenty thousand dollars because of
bodily injury to or death of one person in any one accident and,
subject to said limit for one person, forty thousand dollars because of bodily injury to or death of two or more persons in any
one accident and ten thousand dollars because of injury to or
destruction of property of others in any one accident.
(c) The liability insurance policy shall run concurrently with
the license year and shall remain in full force and effect at all
times.
(d) All persons conducting business at or through an
automobile auction business in this state must obey all Division of
Motor Vehicles laws and rules.
(e) Automobile auction businesses shall report any violations
of law or any scheme designed to deceive or defraud the automobile
buying public and assist in prosecuting those involved in such
acts.
ARTICLE 6D. DAILY PASSENGER RENTAL CAR BUSINESS.
§17A-6D-5. Applicant must be bonded.
(a)
An application for a license certificate must be
accompanied by a bond in the penal sum of twenty-five fifty
thousand dollars and have a corporate surety authorized to do
business in this state, to ensure that the applicant will not, in
the conduct of his or her business, make any fraudulent
representation which causes a financial loss to any purchaser,
seller, financial institution, agency or the State of West
Virginia. The bond shall be effective on the date the license
certificate is issued.
(b)
A licensee shall keep the bond in full force and effect at
all times. The surety on the bond may cancel the bond upon giving
thirty days' notice to the commissioner and, after notice of
cancellation, the surety is relieved of liability for any breach or
condition occurring after the effective date of the cancellation.
NOTE: The purpose of this bill is to increase the amount of
the required bond of certain businesses regulated by the Division
of Motor Vehicles to $50,000.00
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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