COMMITTEE SUBSTITUTE
FOR
H. B. 2143
(By Delegate Warner)
[Originating in the Committee in Finance]
(March 2, 1999)
A BILL to amend and reenact sections six, seven, ten and thirteen, article six, chapter seventeen-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to motor vehicle dealers; clarifying the criteria for issuance of a dealer license and the use of
dealer special license plates.
Be it enacted by the Legislature of West Virginia:
That sections six, seven, ten and thirteen, article six,
chapter seventeen-a of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended and reenacted,
all to read as follows:
ARTICLE 6. LICENSING OF DEALERS AND WRECKERS OR DISMANTLERS;
SPECIAL PLATES; TEMPORARY PLATES OR MARKERS, ETC.
§17A-6-6. Refusal or issuance of license certificate; license
certificate not transferable.
(a) Upon the basis of the application and all other
information before him
or her, the commissioner shall make and
enter an order denying the application for a license certificate
and refusing the license certificate sought, which denial and
refusal
shall be are final and conclusive unless an appeal is
taken
is in accordance with the provisions of section twenty-one
of this article, if the commissioner finds that the applicant
(individually, if an individual, or the partners, if a
copartnership, or the officers and directors, if a corporation):
(1) Has failed to furnish the required bond;
(2) Has failed to furnish the required certificate of
insurance;
(3) Has knowingly made false statement of a material fact in
his
or her application;
(4) Has habitually defaulted on financial obligations
in
this state or any other state or jurisdiction;
(5) Has been convicted of a felony
within five years
immediately preceding receipt of the application by the
commissioner;: Provided, That upon appeal, the motor vehicle
dealers advisory board established pursuant to the provisions of
section eighteen-a of this article has the authority to grant as
exemption of this restriction if the felony did not involve
financial matters, the motor vehicle industry or involve matters
of moral turpitude.
(6) So far as can be ascertained, has not complied with and
will not comply with the registration and title laws of this
state
or any other state or jurisdiction;
(7) Does not or will not have
and/or maintain at each place
of business (subject to the qualification contained in
subdivision (17), subsection (a), section one of this article
with respect to a new motor vehicle dealer) an established place
of business as defined for the business in question in said
section one;
(8) Has been
guilty convicted of any fraudulent act in
connection with the business of new motor vehicle dealer, used
motor vehicle dealer, house trailer dealer, trailer dealer,
recreational vehicle dealer, motorcycle dealer, used parts
dealer, or wrecker or dismantler
or in this state or any other
state or jurisdiction;
(9) Has done any act or has failed or refused to perform any
duty for which the license certificate sought could be suspended
or revoked were it then issued and outstanding;
(10) Is not age eighteen years or older;
(11) Is delinquent in the payment of any taxes owed to the
United States, the state of West Virginia or any political
subdivision thereof;
(12) Has been denied a license in another state or has been
the subject of license revocation or suspension in another state; or
(13) Has committed any action in another state which, if it
had been committed in this state, would be grounds for denial and
refusal of the application for a license certificate.
(14)
Has failed to pay any civil penalty assessed by this
state or any other state.
Otherwise, the commissioner shall issue to the applicant the
appropriate license certificate which shall entitle the licensee
to engage in the business of new motor vehicle dealer, used motor
vehicle dealer, house trailer dealer, trailer dealer,
recreational vehicle dealer, motorcycle dealer, used parts
dealer, or wrecker or dismantler, as the case may be, during the
period, unless sooner suspended or revoked, for which the license
certificate is issued.
(b) A license certificate issued in accordance with the
provisions of this article
shall not be is not transferable.
§17A-6-7. When application to be made; expiration of license
certificate; renewal.
(a) Every person licensed under the former provisions of
article seven of this chapter shall make application for a
license certificate under the provisions of this article at least
thirty days before expiration of his license granted in
accordance with said article seven.
(b) (a) Every license granted under the former provisions of article seven of this chapter shall, unless sooner suspended, or
revoked, expire on June thirtieth, one thousand nine hundred
sixty-eight, and Every license certificate issued in accordance
with the provisions of this article shall, unless sooner
suspended or revoked, expire on June thirtieth next following the
issuance thereof.
(c) (b) A license certificate may be renewed each year in
the same manner, for the same fee as prescribed in section ten of
this article and upon the same basis as an original license
certificate is issued under section six of this article. All
applications for the renewal of any license certificate shall be
filed with the commissioner at least thirty days before the
expiration thereof.
Any application for renewal of any license
certificate not filed at least thirty days before the expiration
may not be renewed except upon payment of the same fee as an
original license certificate as prescribed in subsection (a),
section ten of this article. The commissioner may allow the
delinquent applicant to complete an abbreviated application for
renewal in lieu of an original application.
§17A-6-10. Fee required for license certificate; dealer special
plates
(a) The initial application fee for a license certificate to
engage in the business of a new motor vehicle dealer, used motor
vehicle dealer, house trailer dealer, trailer dealer, motorcycle dealer, recreational vehicle dealer or
wrecker/dismantler/rebuilder is two hundred fifty dollars:
Provided,
That if an application for a license certificate is
denied or refused in accordance with section six of this article,
one hundred twenty-five dollars shall be refunded to the
applicant. The initial application fee entitles the licensee to
dealer special plates as prescribed by subsections (b), (c), (d)
and (e) of this section.
(b) The annual renewal fee required for a license
certificate to engage in the business of new motor vehicle dealer
is one hundred dollars. This fee shall also entitle the licensee
to one dealer's special plate which shall be known as a Class D
special plate. Up to two additional Class D special plates shall
be issued to the licensee upon application on a form prescribed
by the commissioner for such purpose and the payment of a fee of
five dollars for each additional Class D special plate. Any
licensee is also entitled to receive additional Class D special
plates on a formula basis, that is, one additional Class D
special plate per twenty new and used motor vehicles sold at
retail and wholesale by the licensee or predecessor during the
preceding fiscal year, upon application on a form prescribed by
the commissioner for such purpose and the payment of a fee of
five dollars for each additional Class D special plate:
Provided,
That in the case of a licensee who did not own or operate the business during the preceding fiscal year and who
has no predecessor who owned or operated a business during the
fiscal year, additional Class D plates shall be issued for the
ensuing fiscal year only on a formula basis of one additional
Class D plate per twenty new and used motor vehicles which the
licensee estimates on his or her application for his or her
license certificate he or she will sell at retail and wholesale
during the ensuing fiscal year. The licensee may revise his or
her estimate if actual sales of new and used motor vehicles in
the initial year exceed the estimate by filing an amended
application for his or her license certificate. Additional
Class D plates shall be issued for the remaining portion of the
fiscal year only on a formula basis of one additional Class D
plate per twenty new and used vehicles in the revised estimate.
A licensee may receive no more than five additional Class D
special license plates upon a showing that the licensee's new
vehicle retail sale business requires more special license plates
than authorized under the formula established under the
provisions of this section. Such showing shall include evidence
of the geographical divergence of the licensee's customer base
and the number of licensees holding similar franchises of a
particular brand of a motor vehicle to show the need for
additional Class D special plates.
(c) The annual renewal fee required for a license certificate to engage in the business of used motor vehicle
dealer is one hundred dollars. This fee also entitles the
licensee to one dealer's special plate which shall be known as a
Class D-U/C special plate. Up to two additional Class D-U/C
special plates shall be issued to the licensee upon application
on a form prescribed by the commissioner for such purpose and the
payment of a fee of five dollars for each additional Class D-U/C
special plate. Any licensee is also entitled to receive
additional Class D-U/C special plates on a formula basis, that
is, one additional Class D-U/C special plate per twenty used
motor vehicles sold at retail and/or wholesale by the licensee or
his or her predecessor during the preceding fiscal year, upon
application therefor on a form prescribed by the commissioner for
such purpose and the payment of a fee of five dollars for each
additional Class D-U/C special plate: Provided,
That in the case
of a licensee who did not own or operate the business during the
preceding fiscal year and who has no predecessor who owned or
operated the business during the preceding fiscal year,
additional Class D-U/C plates shall be issued for the ensuing
fiscal year only on a formula basis of one additional Class D-U/C
plate per twenty used motor vehicles which the licensee estimates
on his or her application for the license certificate he or she
will sell at retail and/or wholesale during the ensuing fiscal
year. The licensee may revise his or her estimate if actual sales of used motor vehicles in the ensuing fiscal year exceed
the estimate by filing an amended application for his or her
license certificate. Additional Class D-U/C plates shall be
issued for the remaining portion of the fiscal year only on a
formula basis of one additional Class D-U/C plate per twenty used
vehicles in the revised estimate.
(d) The annual renewal fee required for a license
certificate to engage in the business of house trailer dealer or
trailer dealer, as the case may be, is twenty-five dollars. This
fee also entitles the licensee to four dealer's special plates
which shall be known as Class D-T/R special plates. Additional
Class D-T/R special plates shall be issued to any licensee upon
application therefor on a form prescribed by the commissioner for
such purpose and the payment of a fee of five dollars for each
such additional Class D-T/R special plate.
(e) The annual renewal fee required for a license
certificate to engage in the business of recreational vehicle
dealer is one hundred dollars. This fee shall also entitles the
licensee to four dealer special plates which shall be known as
Class D-R/V special plates. Additional Class D-R/V special
plates shall be issued to any licensee upon application therefor
on a form prescribed by the commissioner for such purpose on the
payment of a fee of twenty-five dollars for each additional Class
D-R/V special plate.
(f) The annual renewal fee required for a license
certificate to engage in the business of motorcycle dealer is ten
dollars. This fee shall also entitle the licensee to two
dealer's special plates which shall be known as Class F special
plates. Additional Class F special plates shall be issued to any
dealer upon application therefor on a form prescribed by the
commissioner for such purpose and the payment of a fee of five
dollars for each additional Class F special plate.
(g) The annual renewal fee required for a license
certificate to engage in the business of
wrecker/dismantler/rebuilder is fifteen dollars. Upon payment of
the fee for the license certificate, a licensee is entitled to up
to four special license plates which shall be known as Class WD
special plates. The plates shall be issued to any licensee upon
application therefor on a form prescribed by the commissioner for
such purpose and the payment of a fee of twenty-five dollars for
each plate. The plate issued under the provisions of this
subsection shall have the words "Towing Only" affixed
thereon. A wrecker/dismantler/rebuilder is entitled to one
special plate known as a Class WD/Demo special plate upon payment
of a twenty-five dollar fee. This plate shall only be
used for demonstrating rebuilt automobiles owned by the
wrecker/dismantler/rebuilder.
(h) All of the special plates provided for in this section shall be of such form and design and contain such other
distinguishing marks or characteristics as the commissioner may
prescribe.
§17A-6-13. Use of special plates; records to be maintained by
dealer.
(a) The Class D special plates and the Class D-U/C special
plates authorized in this article may be used for any purpose on
any motor vehicle owned by the dealer to whom issued and which is
being operated with his or her knowledge and consent and not
otherwise: Provided, That under no circumstances whatever shall
may a Class D special plate or Class D-U/C special plate be used
on any work or service vehicle owned by a dealer, on any vehicle
owned by a dealer and offered for hire or lease, or on any
vehicle which has been sold by a dealer to a customer: Provided,
however, That a dealer is authorized to use a Class D or Class D-
U/C special plate on no more than one courtesy vehicle per
dealership: Provided, further, That a Class D licensee is
authorized to use a Class D special plate on no more than one
Class A type pickup truck or van which is specifically identified
as a parts truck for the Class D licensee and which is used
exclusively for the transportation of parts for the dealership.
(b) Under no circumstances whatever shall may a Class D-T/R
special plate be used for the purpose of operating a motor vehicle upon the streets and highways, or on any house trailer or
other trailer owned by a dealer and offered for hire or lease, or
on any house trailer or other trailer which has been sold by a
dealer to a customer: Provided, That notwithstanding the sale or
any provision of this code to the contrary, a Class D-T/R special
plate may be used in moving a house trailer sold by a house
trailer dealer to a customer for one trip only from the house
trailer dealer's established place of business to a place
designated by the customer.
(c) Under no circumstances whatever shall may a Class D-R/V
special plate be used for the purpose of operating a motor
vehicle upon the streets and highways, or on any recreational
vehicle owned by a dealer and offered for hire or lease, or on
any recreational vehicle which has been sold by a dealer to a
customer: Provided, That notwithstanding any provision of this
code to the contrary, a Class D-R/V special plate may be used
upon the streets and highways for demonstration purposes only on
those recreational vehicles that are subject to registration
under article three of this chapter.
(d) Under no circumstances whatever shall may a Class F
special plate be used for the purpose of operating any type of
motor vehicle other than a motorcycle on the streets and
highways, or on a motorcycle owned by a dealer and offered for
hire or lease, or on any motorcycle which has been sold by a dealer to a customer.
(e) Under no circumstances whatever may a special plate
authorized under the provisions of this section be subcontracted,
brokered, leased or rented.
(e) (f) Every dealer entitled to and issued a special plate
or plates under the provisions of this article shall keep a
written record of the salesman, mechanic, employee, agent,
officer or other person to whom a special plate or plates have
been assigned by the dealer. Every record shall be open to
inspection by the commissioner or his or her representatives or
any
law enforcement officer.