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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 |