SB 19-249

Summary

Automotive sales - business disposal license - grounds for discipline - right of action for loss - appropriation. The act creates a business disposal license for a business to sell its used vehicles if the vehicle sales do not exceed 20% of the business's gross revenue. The vehicles must not be passenger vehicles. The act also authorizes the motor vehicle dealer board to deny, suspend, or revoke a business disposal license for the following: A material misstatement in an application; Violating several classes of laws dealing with motor vehicle sales and commerce; Having been convicted of certain crimes; Engaging in various types of fraudulent activities; Failing to perform a written agreement; Failing to make the required disclosures; Misleading or inaccurate advertising; Representing or selling as new a used motor vehicle; Selling a defective vehicle unless sold as a tow-away and not to be driven or selling, acquiring, or disposing of a stolen vehicle; Failing to notify a prospective buyer of the acceptance or rejection of a motor vehicle purchase order agreement within a reasonable period when on a finance sale or a consignment sale; Failing to maintain a place of business with a fixed address and full-time employees; and Failing to post a bond. A person has a right of action against a business disposer and the surety upon a disposer's bond if the disposer commits a fraudulent act or violates the laws governing motor vehicle dealers. To implement the act, $14,000 is appropriated from the auto dealers license fund to the department of revenue for use by the motor vehicle dealer licensing board. (Note: This summary applies to this bill as enacted.) Read More

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