|
|
| To amend section 4517.12 of the Revised Code to | 1 |
| generally prohibit the Registrar of Motor Vehicles | 2 |
| from issuing a motor vehicle dealer's license or | 3 |
| motor vehicle leasing dealer's license to a motor | 4 |
| vehicle manufacturer for the retail sale or lease | 5 |
| of new or used motor vehicles. | 6 |
| Section 1. That section 4517.12 of the Revised Code be | 7 |
| amended to read as follows: | 8 |
| Sec. 4517.12. (A) The registrar of motor vehicles shall deny | 9 |
| the application of any person for a license as a motor vehicle | 10 |
| dealer, motor vehicle leasing dealer, or motor vehicle auction | 11 |
| owner and refuse to issue the license if the registrar finds that | 12 |
| the applicant: | 13 |
| (1) Has made any false statement of a material fact in the | 14 |
| application; | 15 |
| (2) Has not complied with sections 4517.01 to 4517.45 of the | 16 |
| Revised Code; | 17 |
| (3) Is of bad business repute or has habitually defaulted on | 18 |
| financial obligations; | 19 |
| (4) Is engaged or will engage in the business of selling at | 20 |
| retail any new motor vehicles without having written authority | 21 |
| from the manufacturer or distributor thereof to sell new motor | 22 |
| vehicles and to perform repairs under the terms of the | 23 |
| manufacturer's or distributor's new motor vehicle warranty, except | 24 |
| as provided in division (C) of this section and except that a | 25 |
| person who assembles or installs special equipment or accessories | 26 |
| for handicapped persons, as defined in section 4503.44 of the | 27 |
| Revised Code, upon a motor vehicle chassis supplied by a | 28 |
| manufacturer or distributor shall not be denied a license pursuant | 29 |
| to division (A)(4) of this section; | 30 |
| (5) Has been guilty of a fraudulent act in connection with | 31 |
| selling or otherwise dealing in, or leasing, motor vehicles, or in | 32 |
| connection with brokering manufactured homes; | 33 |
| (6) Has entered into or is about to enter into a contract or | 34 |
| agreement with a manufacturer or distributor of motor vehicles | 35 |
| that is contrary to sections 4517.01 to 4517.45 of the Revised | 36 |
| Code; | 37 |
| (7) Is insolvent; | 38 |
| (8) Is of insufficient responsibility to ensure the prompt | 39 |
| payment of any final judgments that might reasonably be entered | 40 |
| against the applicant because of the transaction of business as a | 41 |
| motor vehicle dealer, motor vehicle leasing dealer, or motor | 42 |
| vehicle auction owner during the period of the license applied | 43 |
| for, or has failed to satisfy any such judgment; | 44 |
| (9) Has no established place of business that, where | 45 |
| applicable, is used or will be used for the purpose of selling, | 46 |
| displaying, offering for sale, dealing in, or leasing motor | 47 |
| vehicles at the location for which application is made; | 48 |
| (10) Has, less than twelve months prior to making | 49 |
| application, been denied a motor vehicle dealer's, motor vehicle | 50 |
| leasing dealer's, or motor vehicle auction owner's license, or has | 51 |
| any such license revoked; | 52 |
| (11) Is a manufacturer, or a parent company, subsidiary, or | 53 |
| affiliated entity of a manufacturer, applying for a license to | 54 |
| sell or lease new or used motor vehicles at retail. Division | 55 |
| (A)(11) of this section shall not serve as a basis for the | 56 |
| termination, revocation, or nonrenewal of a license granted prior | 57 |
| to the effective date of this amendment. Nothing in division | 58 |
| (A)(11) of this section shall prohibit a manufacturer from doing | 59 |
| either of the following: | 60 |
| (a) Owning, operating, or controlling not more than three | 61 |
| licensed motor vehicle dealerships if, as of January 1, 2014, the | 62 |
| manufacturer was selling or otherwise distributing its motor | 63 |
| vehicles at an established place of business in this state. Such | 64 |
| ownership, operation, or control may continue unless the | 65 |
| manufacturer's motor vehicle operations are sold or acquired or | 66 |
| the manufacturer produces any motor vehicles other than | 67 |
| all-electric motor vehicles. | 68 |
| (b) Disposing of motor vehicles at wholesale at the | 69 |
| termination of a consumer lease through a motor vehicle auction. | 70 |
| (B) If the applicant is a corporation or partnership, the | 71 |
| registrar may refuse to issue a license if any officer, director, | 72 |
| or partner of the applicant has been guilty of any act or omission | 73 |
| that would be cause for refusing or revoking a license issued to | 74 |
| such officer, director, or partner as an individual. The | 75 |
| registrar's finding may be based upon facts contained in the | 76 |
| application or upon any other information the registrar may have. | 77 |
| Immediately upon denying an application for any of the reasons in | 78 |
| this section, the registrar shall enter a final order together | 79 |
| with the registrar's findings and certify the same to the motor | 80 |
| vehicle dealers' and salespersons' licensing board. | 81 |
| (C) Notwithstanding division (A)(4) of this section, the | 82 |
| registrar shall not deny the application of any person and refuse | 83 |
| to issue a license if the registrar finds that the applicant is | 84 |
| engaged or will engage in the business of selling at retail any | 85 |
| new motor vehicles and demonstrates all of the following in the | 86 |
| form prescribed by the registrar: | 87 |
| (1) That the applicant has posted a bond, surety, or | 88 |
| certificate of deposit with the registrar in an amount not less | 89 |
| than one hundred thousand dollars for the protection and benefit | 90 |
| of the applicant's customers except that a new motor vehicle | 91 |
| dealer who is not exclusively engaged in the business of selling | 92 |
| remanufactured vehicles shall not be required to post the bond, | 93 |
| surety, or certificate of deposit otherwise required by division | 94 |
| (C)(1) of this section; | 95 |
| (2) That, at the time of the sale of the vehicle, each | 96 |
| customer of the applicant will be furnished with a warranty issued | 97 |
| by the remanufacturer for a term of at least one year; | 98 |
| (3) That the applicant provides and maintains at the | 99 |
| applicant's location and place of business a permanent facility | 100 |
| with all of the following: | 101 |
| (a) A showroom with space, under roof, for the display of at | 102 |
| least one new motor vehicle; | 103 |
| (b) A service and parts facility for remanufactured vehicles; | 104 |
| (c) Full-time service and parts personnel with the proper | 105 |
| training and technical expertise to service the remanufactured | 106 |
| vehicles sold by the applicant. | 107 |
| Section 2. That existing section 4517.12 of the Revised Code | 108 |
| is hereby repealed. | 109 |