Bill Text: IN SB0537 | 2013 | Regular Session | Enrolled
Bill Title: Secretary of state, dealer services, and vehicles.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2013-05-13 - Public Law 92 [SB0537 Detail]
Download: Indiana-2013-SB0537-Enrolled.html
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
AN ACT to amend the Indiana Code concerning motor vehicles and to make an
appropriation.
(b) The secretary of state shall appoint a director of the dealer services division established by subsection (a).
IC 9-29-1-2, IC 9-29-15-1, IC 9-29-15-3, and IC 9-29-15-4, and
IC 9-29-17-14.
(b) The crossroads 2000 fund shall be administered by the
department. The treasurer of state shall invest the money in the
crossroads 2000 fund not currently needed to meet the obligations of
the crossroads 2000 fund in the same manner as other public funds may
be invested.
(c) Money in the crossroads 2000 fund at the end of a state fiscal
year does not revert to the state general fund.
(d) The department may use the money in the crossroads 2000 fund
only to pay the following costs:
(1) The cost of construction or reconstruction of a state highway.
(2) The cost of acquisition of all land, rights-of-way, property,
rights, easements, and any other legal or equitable interests
acquired by the department for the construction or reconstruction
of a state highway, including the cost of any relocations incident
to the acquisition.
(3) The cost of demolishing or removing any buildings, structures,
or improvements on property acquired by the department for the
construction or reconstruction of a state highway.
(4) Engineering and legal expenses and the costs of plans,
specifications, surveys, estimates, and any necessary feasibility
studies.
(5) Payment of rentals and performance of other obligations under
contracts or leases securing bonds issued under IC 8-14.5-6.
[EFFECTIVE JULY 1, 2013]: Sec. 9. "Automotive salvage rebuilder",
means a person, firm, limited liability company, corporation, or other
legal entity engaged in the business:
(1) of acquiring salvage motor vehicles for the purpose of
restoring, reconstructing, or rebuilding the vehicles; and
(2) in the resale of these vehicles for use on the highway. for
purposes of IC 9-32, has the meaning set forth in IC 9-32-2-5.
(b) The term does not include the following:
(1) A receiver, trustee, or other person appointed by or acting under the judgment or order of a court.
(2) A public officer while performing official duties.
(c) "Dealer", for purposes of IC 9-31, means a person that sells to the general public
(1) boats; or
(2) trailers:
(A) designed and used exclusively for the transportation of watercraft; and
(B) sold in general association with the sale of watercraft;
per year.
(b) The term includes the following enterprises:
(1) An automotive salvage recycler.
(2) A hulk crusher.
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 67. "Franchise", means
an oral or a written agreement for a definite or an indefinite period in
which a manufacturer or distributor grants to a dealer a right to use a
trade name, trade or service mark, or related characteristic, and in
which there is a community of interest in the marketing of motor
vehicles or related services at retail or otherwise. for purposes of
IC 9-32, has the meaning set forth in IC 9-32-2-13.
(b) "Motor vehicle", for purposes of IC 9-21, means:
(1) a vehicle except a motorized bicycle that is self-propelled; or
(2) a vehicle that is propelled by electric power obtained from overhead trolley wires, but not operated upon rails.
(c) "Motor vehicle", for purposes of IC 9-19-10.5 and IC 9-25, means a vehicle that is self-propelled upon a highway in Indiana. The
term does not include a farm tractor.
(d) "Motor vehicle", for purposes of IC 9-30-10, does not include a
motorized bicycle.
(e) "Motor vehicle", for purposes of IC 9-23-2 and IC 9-23-3,
IC 9-32-13, includes a semitrailer.
(f) "Motor vehicle", for purposes of IC 9-24-6, has the meaning set
forth in 49 CFR 383.5 as in effect July 1, 2010.
(b) "Record", for purposes of IC 9-32, has the meaning set forth in IC 9-32-2-19.
IC 9-32, has the meaning set forth in IC 9-32-2-20.
forth in IC 9-32-2-27.
(1) A motor club that is any of the following:
(A) A domestic corporation.
(B) A foreign corporation qualified to transact business in Indiana under IC 23-1 or IC 23-17.
(2) A financial institution (as defined in IC 28-1-1-3).
(3) A new motor vehicle dealer licensed under
(4) Other persons, including persons licensed under
(1) has been previously issued for a vehicle in Indiana, an application for a certificate of title must be accompanied by the previously issued certificate of title, unless otherwise provided; or
(2) has not previously been issued for a vehicle in Indiana, an application for a certificate of title must be accompanied by a manufacturer's certificate of origin as provided in
state general fund. In addition, if a purchaser or transferee does not
receive a valid certificate of title within the time specified by this
section, the purchaser or transferee shall have the right to return the
vehicle to the vehicle dealer ten (10) days after giving the vehicle
dealer written notice demanding delivery of a valid certificate of title
and the dealer's failure to deliver a valid certificate of title within that
ten (10) day period. Upon return of the vehicle to the dealer in the same
or similar condition as delivered to the purchaser or transferee under
this section, the vehicle dealer shall pay to the purchaser or transferee
the purchase price plus sales taxes, finance expenses, insurance
expenses, and any other amount paid to the dealer by the purchaser.
(d) For purposes of this subsection, "timely deliver", with respect to
a third party, means to deliver to the purchaser or transferee with a
postmark dated or hand delivered not more than ten (10) business days
after there is no obligation secured by the vehicle. If the dealer's
inability to timely deliver a valid certificate of title results from the acts
or omissions of a third party who has failed to timely deliver a valid
certificate of title to the dealer, the dealer is entitled to claim against
the third party one hundred dollars ($100). If:
(1) the dealer's inability to timely deliver a valid certificate of title
results from the acts or omissions of a third party who has failed
to timely deliver the certificate of title in the third party's
possession to the dealer; and
(2) the failure continues for ten (10) business days after the dealer
gives the third party written notice of the failure;
the dealer is entitled to claim against the third party all damages
sustained by the dealer in rescinding the dealer's sale with the
purchaser or transferee, including the dealer's reasonable attorney's
fees.
(e) If a vehicle for which a certificate of title has been issued by
another state is sold or delivered, the person selling or delivering the
vehicle must deliver to the purchaser or receiver of the vehicle a proper
certificate of title with an assignment of the certificate of title in a form
prescribed by the bureau.
(f) The original certificate of title and all assignments and
subsequent reissues of the certificate of title shall be retained by the
bureau and appropriately classified and indexed in the most convenient
manner to trace title to the vehicle described in the certificate of title.
(g) A dealer shall make payment to a third party to satisfy any
obligation secured by the vehicle within five (5) days after the date of
sale.
1, 2013]. Sec. 3.1. The affidavit required by section 3(a)(5) of this
chapter shall be printed in the following form:
STATE OF INDIANA )
) ss:
COUNTY OF ____________ )
I affirm under the penalties for perjury that all of the following are
true:
(1) That I am a dealer licensed under IC 9-23.
(2) That I cannot deliver a valid certificate of title to the retail
purchaser of the vehicle described in paragraph (3) at the time of
sale of the vehicle to the retail purchaser. The identity of the
previous seller or transferor is __________________________.
Payoff of lien was made on (date)_______. I expect to deliver a
valid and transferable certificate of title not later than
(date)_______________ from the (State of)________ to the
purchaser.
(3) That I will undertake reasonable commercial efforts to
produce the valid certificate of title. The vehicle identification
number is __________________.
Signed _______________________, Dealer
By_________________________________
Dated _____, ____
CUSTOMER ACKNOWLEDGES RECEIPT OF A COPY OF THIS
AFFIDAVIT.
___________________________________
Customer Signature
you within the above-described ten (10) day period results from the
acts or omissions of a third party who has failed to timely deliver the
certificate of title in the third party's possession to the dealer, the dealer
may be entitled to claim against the third party the damages allowed by
law.
(1) has been previously issued for a manufactured home in Indiana, an application for a certificate of title must be accompanied by the certificate of title; or
(2) has not previously been issued for a manufactured home in Indiana, the application must be accompanied by a manufacturer's certificate of origin as provided in
(1) For a motorcycle, trailer, semitrailer, or recreational vehicle, upon the rear of the vehicle, except as provided in subdivision (4).
(2) For a tractor or dump truck, upon the front of the vehicle.
(3) For every other vehicle, upon the rear of the vehicle, except as provided in subdivision (4).
(4) For a truck with a rear mounted forklift or a mechanism to carry a rear mounted forklift or implement, upon the front of the vehicle.
(b) A license plate shall be securely fastened, in a horizontal position, to the vehicle for which the plate is issued:
(1) to prevent the license plate from swinging;
(2) at a height of at least twelve (12) inches from the ground, measuring from the bottom of the license plate;
(3) in a place and position that are clearly visible;
(4) maintained free from foreign materials and in a condition to be clearly legible; and
(5) not obstructed or obscured by tires, bumpers, accessories, or other opaque objects.
(c) An interim license plate must be displayed in the manner required by IC 9-32-6-11(f).
(1) a disposal facility;
(2) an automotive salvage rebuilder; and
(3) a used parts dealer licensed under
to preserve information about salvage vehicles or major component parts acquired or sold by the business.
(b) The recordkeeping forms required under subsection (a) must contain the following information:
(1) For each new or used vehicle acquired or disposed of or for the major component parts of a new or used vehicle, the following:
(A) A description of the vehicle or major component part, including numbers or other marks identifying the vehicle or major component part.
(B) The date the vehicle or major component part was acquired and disposed of.
(C) The name and address of the person from whom the vehicle or major component part was acquired.
(D) Verification of the purchaser of the vehicle or major component part by driver's license, state identification card, or other reliable means.
(2) For motor vehicles acquired or disposed of, in addition to the
information required by subdivision (1), the following:
(A) The vehicle's trade name.
(B) The vehicle's manufacturer.
(C) The vehicle's type.
(D) The model year and vehicle identification number.
(E) A statement of whether any number has been defaced,
destroyed, or changed.
(3) For wrecked, dismantled, or rebuilt vehicles, the date the
vehicle was dismantled or rebuilt.
(c) Separate records for each vehicle or major component part must
be maintained.
(d) The recordkeeping requirements of this section do not apply to
hulk crushers or to scrap metal processors when purchasing scrap from
a person who is licensed under IC 9-22-4 IC 9-32-9 and who is
required to keep records under this section.
(b) A disposal facility and automotive salvage rebuilder licensed under
(b) A person who recklessly, knowingly, or intentionally violates section 18.5 or 30 of this chapter commits a Class A misdemeanor.
(1) the motor vehicle is at least fifteen (15) model years old;
(2) the purchase is solely for the purpose of dismantling or
wrecking the motor vehicle for the recovery of scrap metal or
the sale of parts; and
(3) the disposal facility or scrap metal processor records all
purchase transactions of vehicles as required in subsection
(b).
(b) A disposal facility or scrap metal processor shall maintain
the following information with respect to each motor vehicle
purchase transaction to which the disposal facility or scrap metal
processor is a party for at least two (2) years following the date of
the purchase transaction:
(1) The name and address of any secondary metals recycler or
salvage yard.
(2) The name, initials, or other identifying symbol of the
person entering the information.
(3) The date of the purchase transaction.
(4) A description of the motor vehicle that is the subject of the
purchase transaction, including the make and model of the
motor vehicle, if practicable.
(5) The vehicle identification number of the motor vehicle.
(6) The amount of consideration given for the motor vehicle.
(7) A written statement signed by the seller or the seller's
agent certifying that the seller or the seller's agent has the
lawful right to sell and dispose of the motor vehicle.
(8) The name and address of the person from whom the motor
vehicle is being purchased.
(9) A photocopy or electronic scan of one (1) of the following
forms of identification issued to the seller or the seller's agent:
(A) A current and valid driver's license.
(B) An identification card issued under IC 9-24-16-1 or a
similar card issued under the laws of another state or the
federal government.
(C) A government issued document bearing an image of
the seller or seller's agent, as applicable.
For purposes of complying with this subdivision, a disposal
facility or scrap metal processor is not required to make a
separate copy of the seller's or seller's agent's identification
for each purchase transaction involving the seller or seller's
agent but may instead refer to a copy maintained in reference
to a particular purchase transaction.
(c) A disposal facility or scrap metal processor may not
complete a purchase transaction in the absence of the information
required under subsection (b)(9).
(d) A disposal facility, a scrap metal processor, or an agent of a disposal facility or scrap metal processor that knowingly, intentionally, or recklessly buys a motor vehicle that is less than fifteen (15) model years old without a certificate of title for the motor vehicle commits a Class D felony.
(b) For the purpose of providing adequate and sufficient funds for the crossroads 2000 fund established under IC 8-14-10-9, and subject to subsection (c), after June 30, 1997, with the approval of the bureau of motor vehicles commission the bureau of motor vehicles may adopt rules under IC 4-22-2 to increase, by an amount that is in addition to the fees specified by statute, the fees under the following:
IC 9-29-4-3
IC 9-29-5
IC 9-29-9-1
IC 9-29-9-2
IC 9-29-9-3
IC 9-29-9-4
IC 9-29-9-5
IC 9-29-9-7
IC 9-29-9-8
IC 9-29-9-9
IC 9-29-9-11
IC 9-29-9-13
IC 9-29-9-14
IC 9-29-15-1
IC 9-29-15-2
IC 9-29-15-3
IC 9-29-15-4
IC 9-29-17-1
IC 9-29-17-2
IC 9-29-17-3
IC 9-29-17-4.
The amount of fees increased under this section shall first be deposited into the crossroads 2000 fund established under IC 8-14-10-9.
(c) The bureau's authority to adopt rules under subsection (b) is subject to the condition that a fee increase must be uniform throughout all license branches and at all partial service locations in Indiana.
(d) If a fee imposed by a statute listed in subsection (b) is eliminated, the amount of the fee increase set forth in a rule adopted under this section before July 1, 2007, with respect to the fee must be:
(1) collected by the bureau notwithstanding the elimination of the underlying fee;
(2) collected in addition to all other fees collected at the time of the underlying transaction; and
(3) deposited in the crossroads 2000 fund established under IC 8-14-10-9.
However, this subsection does not apply to a fee imposed under IC 9-29-5-14, IC 9-29-5-14.5, IC 9-29-5-15, or IC 9-29-5-39, which were repealed by legislation enacted in 2013.
(b) Money collected under subsection (a) shall be deposited in the state police building account. Money in the account:
(1) does not revert to the state general fund or the motor vehicle highway account under IC 8-14-1, except as provided under subsection (c); and
(2) shall be expended for the following:
(A) The construction, maintenance, leasing, and equipping of state police facilities.
(B) Other projects provided for by law.
(c) At the end of each state fiscal year, the auditor of state shall transfer to the state general fund the balance in the state police building account that is in excess of appropriations made for the construction, maintenance, leasing, or equipping of state police facilities and other projects provided for by law.
(d) Transfers under subsection (c) shall be made until one million five hundred thousand dollars ($1,500,000) has been transferred to the state general fund.
shall be deposited in the motor vehicle highway account under IC 8-14-1-3.
JULY 1, 2013]:
Chapter 17. Fees Under IC 9-32
Sec. 1. (a) Except as provided in section 3 of this chapter, the fee
for the first two (2) license plates issued under IC 9-32-6-1 to a
manufacturer or dealer is forty dollars ($40).
(b) The fee for each additional license plate under IC 9-32-6-5
for a manufacturer or dealer is fifteen dollars ($15).
(c) The fee for a dealer promotional license plate established
under IC 9-32-6-2(b) is forty dollars ($40).
(d) The fee for the first two (2) dealer-wholesale license plates
issued to an applicant under IC 9-32-6-2(a)(4) is one hundred
twenty-five dollars ($125). The fee for each additional
dealer-wholesale license plate issued to the applicant is fifteen
dollars ($15).
(e) Fees collected under this section shall be deposited as set
forth in section 14(b) of this chapter.
Sec. 2. (a) The fee for a research and development license plate
for a manufacturer of a vehicle subcomponent system under
IC 9-32-6-3 is twenty dollars ($20). There is no fee in addition to
the regular registration fee for a research and development license
plate for a manufacturer of a vehicle subcomponent system.
(b) Fees collected under subsection (a) shall be deposited as set
forth in section 14(b) of this chapter.
Sec. 3. (a) The fee for the first two (2) license plates under
IC 9-32-6-1 for a manufacturer or dealer of motorcycles is fifteen
dollars ($15).
(b) The fee for each additional license plate under IC 9-32-6-5
for a manufacturer or dealer of motorcycles is seven dollars and
fifty cents ($7.50).
(c) Fees collected under this section shall be deposited as set
forth in section 14(b) of this chapter.
Sec. 4. (a) The fee for the issuance of an interim dealer license
plate under IC 9-32-6-11 is three dollars ($3).
(b) Fees collected under subsection (a) shall be deposited as set
forth in section 14(c) of this chapter.
Sec. 5. (a) The fee under IC 9-32-8-2 for a boat dealer license for
each full year is thirty dollars ($30) for the first place of business,
plus ten dollars ($10) for each additional place of business.
(b) The secretary of state retains the fees collected under
subsection (a).
Sec. 6. (a) The fee for a change of business name or location
under IC 9-32-8-4 is five dollars ($5).
(b) The secretary of state retains the fees collected under
subsection (a).
Sec. 7. (a) The fee for an initial license under IC 9-32-9 is ten
dollars ($10).
(b) The fee for a supplemental license under IC 9-32-9 is five
dollars ($5).
(c) The fee for a renewal license under IC 9-32-9 is ten dollars
($10).
(d) A licensing fee that is submitted with an application under
IC 9-32-9:
(1) is nonrefundable; and
(2) shall be retained by the secretary of state;
if the application is rejected by the secretary of state.
Sec. 8. The fee for a license for a manufacturer or a distributor
under IC 9-32-11-1 is thirty-five dollars ($35), including a factory
branch as set forth in IC 9-13-2-97(b)(1). The fees collected shall be
deposited as set forth in IC 9-32-7-3.
Sec. 9. The fee for a license for a dealer or an automobile
auctioneer under IC 9-32-11-1 is:
(1) thirty dollars ($30) for the first place of business; and
(2) an additional ten dollars ($10) for each place of business
not immediately adjacent to the first place of business.
The fees collected shall be deposited as set forth in IC 9-32-7-3.
Sec. 10. The fee for a factory representative, a distributor
representative, a wholesale dealer, a transfer dealer, a converter
manufacturer, or an automotive mobility dealer under
IC 9-32-11-1 is twenty dollars ($20). The fee for an automotive
mobility dealer who:
(1) buys or sells vehicles, or both;
(2) sells, installs, or services, offers to sell, install, or service,
or solicits or advertises the sale, installation, or servicing of
equipment or modifications specifically designed to facilitate
use or operation of a vehicle by an individual who is disabled
or aged; or
(3) performs acts described in both subdivisions (1) and (2);
is twenty dollars ($20). The fees collected shall be deposited as set
forth in IC 9-32-7-3.
Sec. 11. The fee for a business name or location change under
IC 9-32-11-6 is five dollars ($5). The fees collected shall be
deposited as set forth in IC 9-32-7-3.
Sec. 12. The license fee for each offsite sales license issued under
IC 9-32-11-11 is twenty-five dollars ($25). The fees collected shall
be deposited as set forth in IC 9-32-7-3.
Sec. 13. The permit fee for a special event permit issued under
IC 9-32-11-18 is two hundred fifty dollars ($250). The fees collected
shall be deposited as set forth in IC 9-32-7-3.
Sec. 14. (a) Except as otherwise provided in subsection (b),
subsection (c), and IC 9-29-1-2, registration fees collected under
IC 9-32 and fees collected under section 7 of this chapter shall be
paid into the state general fund for credit to the motor vehicle
highway account under IC 8-14-1.
(b) Fees collected under this chapter for license plates issued
under IC 9-32-6 by the secretary of state shall be deposited as
follows:
(1) The following shall be deposited in the dealer compliance
account established by IC 9-32-7-1:
(A) Thirty percent (30%) of the fees collected for license
plates issued under IC 9-32-6, except for license plates
issued under IC 9-32-6-2(b).
(B) One hundred percent (100%) of the fees collected for
license plates issued under IC 9-32-6-2(b).
(2) Seventy percent (70%) of the fees collected for license
plates issued under IC 9-32-6, except for license plates issued
under IC 9-32-6-2(b), shall be deposited in the motor vehicle
highway account.
(c) Notwithstanding subsection (b), fees collected under this
chapter for interim license plates issued under IC 9-32-6-11 by the
secretary of state shall be deposited as follows:
(1) Sixty-six and seven-tenths percent (66.7%) to the
crossroads 2000 fund established by IC 8-14-10-9.
(2) Thirty percent (30%) to the dealer compliance account
established by IC 9-32-7-1.
(3) Three and three-tenths percent (3.3%) to the motor
vehicle highway account under IC 8-14-1.
Sec. 15. The revenue from the license fees collected under
IC 9-32-9 shall be deposited in the motor vehicle highway account
under IC 8-14-1.
(1) A bill of sale from the dealer giving the purchaser's name and address, the date of purchase, and the make and type of boat or the hull identification number.
(2) A temporary permit displayed on the forward portion of the boat, as provided in section 6 of this chapter.
ARTICLE 32. DEALER SERVICES
Chapter 1. Application
Sec. 1. This article may not be construed to limit the authority of the bureau to administer this title.
Chapter 2. Definitions
Sec. 1. The definitions in this chapter apply throughout this article.
Sec. 2. "Adjusted or net capitalized cost"means the capitalized cost, less any capitalized cost reduction payments made by a retail lessee at the inception of a lease agreement. The adjusted or net capitalized cost is the basis for calculating the amount of a retail lessee's periodic payment under a lease agreement.
Sec. 3. "Advisory board" refers to the motor vehicle sales advisory board established by IC 9-32-10-1.
Sec. 4. "Automobile auctioneer" means a person who is engaged in providing a place of business or facilities for the purchase and sale of more than three (3) motor vehicles, on the basis of bids by persons acting for themselves or others, per calendar year. The term includes an auctioneer who, as part of the business of the auctioneer, participates in providing a place of business or facilities for the purchase and sale of motor vehicles on the basis of bids by persons acting for themselves or others. The term does not include
a person acting only as an auctioneer under IC 25-6.1-1.
Sec. 5. "Automotive salvage rebuilder" means a person, firm,
limited liability company, corporation, or other legal entity
engaged in the business:
(1) of acquiring salvage motor vehicles for the purpose of
restoring, reconstructing, or rebuilding the vehicles; and
(2) of reselling these vehicles for use on the highway.
Sec. 6. "Broker" means a person who, for a fee, a commission,
or other valuable consideration, arranges or offers to arrange a
transaction involving the sale, for purposes other than resale, of a
new or used motor vehicle and who is not:
(1) a dealer or an employee of a dealer;
(2) a distributor or an employee of a distributor; or
(3) at any point in the transaction, the bona fide owner of the
vehicle involved in the transaction.
Sec. 7. (a) "Capitalized cost" means the amount that, after
deducting any capitalized cost reduction, serves as the basis for
determining the base lease payment, which is the part of the
periodic lease payment that is the sum of:
(1) the average periodic lease charge; and
(2) the average periodic depreciation.
(b) For a single payment lease, the base lease payment is the sum
of:
(1) the average periodic lease charge multiplied by the
number of months in the term of the lease; and
(2) the average periodic depreciation multiplied by the
number of months in the term of the lease.
(c) The capitalized cost may include any of the following:
(1) Taxes.
(2) Registration fees.
(3) License fees.
(4) Insurance charges.
(5) Charges for guaranteed auto protection or GAP coverage.
(6) Charges for service contracts and extended warranties.
(7) Fees and charges for accessories and for installing
accessories.
(8) Charges for delivery, service, and repair.
(9) Administrative fees, acquisition fees, and all fees or
charges for providing services incidental to the lease
agreement.
(10) The unpaid balance of an amount financed under an
outstanding motor vehicle loan agreement or motor vehicle
retail installment contract with respect to a motor vehicle
used as a trade-in vehicle.
(11) The unpaid part of the early termination obligation
under an outstanding lease agreement.
(12) The first periodic payment due at the inception of the
lease agreement, if not otherwise paid by the retail lessee.
Sec. 8. "Capitalized cost reduction" means a payment made by
cash, check, credit card, debit card, net vehicle trade-in, rebate, or
other similar means in the nature of a down payment or credit,
made by a retail lessee at the inception of a lease agreement, for the
purpose of reducing the capitalized cost and does not include any
periodic payments received by the retail lessor at the inception of
the lease agreement.
Sec. 9. "Charge back" means a manufacturer induced return of
incentive payments to a manufacturer by a dealer. The term
includes a manufacturer drawing funds from an account of a
dealer.
Sec. 10. "Director" refers to the director of the dealer services
division within the office of the secretary of state who is appointed
under IC 4-5-1-12(b).
Sec. 11. "Division" refers to the dealer services division within
the office of the secretary of state established by IC 4-5-1-12(a).
Sec. 12. "Existing franchise"means the franchise in effect on the
date of a franchisee's death or incapacity.
Sec. 13. "Franchise" means an oral or a written agreement for
a definite or an indefinite period in which a manufacturer or
distributor grants to a dealer a right to use a trade name, trade or
service mark, or related characteristic, and in which there is a
community of interest in the marketing of motor vehicles or related
services at retail or otherwise.
Sec. 14. "Franchisee" means a dealer to whom a franchise is
granted.
Sec. 15. "Franchisor" means a manufacturer or distributor who
grants a franchise to a dealer.
Sec. 16. "Labor rate" means the hourly labor rate charged by
a franchisee for service, filed periodically with the division as the
division may require, and posted prominently in the franchisee's
service department.
Sec. 17. "Lease agreement" means a written agreement entered
into in Indiana for the transfer from a retail lessor to a retail lessee
of the right to possess and use a motor vehicle in exchange for
consideration for a scheduled term exceeding four (4) months,
whether or not the retail lessee has the option to purchase or
otherwise become the owner of the motor vehicle upon expiration
of the agreement. The term does not include an agreement that
covers an absolute sale, a sale pending approval, or a retail
installment sale.
Sec. 18. "Lease transaction" means a presentation made to a
retail lessee concerning a motor vehicle, including a sales
presentation or a document presented to the retail lessee, resulting
in the execution of a lease agreement.
Sec. 19. "Record" includes, but is not limited to, the following:
(1) Bills of sale.
(2) Finance agreements.
(3) Titles.
(4) Inventory records.
(5) Sales receipts from auctions.
(6) Form ST-108 (department of state revenue certificate of
gross retail or use tax paid on the purchase of a motor vehicle
or watercraft).
(7) Interim plate log.
Sec. 20. "Relevant market area" means the following:
(1) With respect to a new motor vehicle dealer who plans to
relocate the dealer's place of business in a county having a
population of more than one hundred thousand (100,000), the
area within a radius of six (6) miles of the intended site of the
relocated dealer. The six (6) mile distance shall be determined
by measuring the distance between the nearest surveyed
boundary of the existing new motor vehicle dealer's principal
place of business and the nearest surveyed boundary line of
the relocated new motor vehicle dealer's place of business.
(2) With respect to a:
(A) proposed new motor vehicle dealer; or
(B) new motor vehicle dealer who plans to relocate the
dealer's place of business in a county having a population
of not more than one hundred thousand (100,000);
the area within a radius of ten (10) miles of the intended site
of the proposed or relocated dealer. The ten (10) mile distance
shall be determined by measuring the distance between the
nearest surveyed boundary line of the existing new motor
vehicle dealer's principal place of business and the nearest
surveyed boundary line of the proposed or relocated new
motor vehicle dealer's principal place of business.
Sec. 21. "Retail lessee" means an individual who executes a lease
agreement for a motor vehicle from a retail lessor primarily for
personal, family, or household purposes.
Sec. 22. "Retail lessor" means a person who regularly engages
in the business of selling or leasing motor vehicles and who offers
or arranges a lease agreement for a motor vehicle. The term
includes an agent or affiliate who acts on behalf of the retail lessor
and excludes any assignee of the lease agreement.
Sec. 23. "Sale" includes every contract of sale, contract to sell,
or disposition of a motor vehicle or interest in a motor vehicle for
value.
Sec. 24. "Secretary" refers to the secretary of state holding
office as set forth in IC 4-5-1-1.
Sec. 25. "Transfer dealer" means a person, other than a dealer,
manufacturer, or wholesale dealer, who has the necessity of
transferring at least twelve (12) motor vehicles during a license
year as part of the transfer dealer's primary business function.
Sec. 26. "Uniform time standards manual" means a schedule
established by a manufacturer or distributor setting forth the time
allowances for the diagnosis and performance of warranty work
and service.
Sec. 27. "Used parts dealer" means a person who primarily
buys, sells, barters, exchanges, or deals in used major component
parts. The term does not include a scrap metal processor.
Sec. 28. "Wholesale dealer" means a person who is engaged in
the business of buying or selling motor vehicles for resale to other
dealers, wholesale dealers, transfer dealers, or persons other than
the general public.
Chapter 3. Powers and Duties of the Division
Sec. 1. The secretary may delegate any or all of the rights,
duties, or obligations of the secretary under this article to:
(1) the director; or
(2) another designee under the supervision and control of the
secretary.
The individual delegated has the authority to adopt and enforce
rules under IC.4-22-2 as the secretary under IC.4-5-1-11. The
secretary shall adopt emergency rules in the manner set forth in
IC.4-22-2-37.1 to carry out the secretary's duties under this article.
The emergency rules must be adopted before January 1, 2014. The
emergency rules expire June 30, 2014. Before July 1, 2014, the
secretary shall, under IC 4-2-22, adopt rules to carry out the
secretary's duties under this article that supersede the emergency
rules.
Sec. 2. The secretary shall do the following:
(1) Administer and enforce:
(A) this article concerning the division; and
(B) the policies and procedures of the division.
(2) Organize the division in the manner necessary to carry out the duties of the division.
(3) Perform other duties as required by the division.
Chapter 4. Obtaining, Expiration, Replacement, and Transfer of Certificate of Title
Sec. 1. (a) If a vehicle for which a certificate of title has been issued is sold or if the ownership of the vehicle is transferred in any manner other than by a transfer on death conveyance under IC 9-17-3-9, the person who holds the certificate of title must do the following:
(1) Endorse on the certificate of title an assignment of the certificate of title with warranty of title, in a form printed on the certificate of title, with a statement describing all liens or encumbrances on the vehicle.
(2) Except as provided in subdivisions (4) and (5), deliver the certificate of title to the purchaser or transferee at the time of the sale or delivery to the purchaser or transferee of the vehicle, if the purchaser or transferee has made all agreed upon initial payments for the vehicle, including delivery of a trade-in vehicle without hidden or undisclosed statutory liens.
(3) Complete all information concerning the purchase on the certificate of title, including, but not limited to:
(A) the name and address of the purchaser; and
(B) the sale price of the vehicle.
(4) In the case of a sale or transfer between vehicle dealers licensed by this state or another state, deliver the certificate of title within twenty-one (21) days after the date of the sale or transfer.
(5) Deliver the certificate of title to the purchaser or transferee within twenty-one (21) days after the date of sale or transfer to the purchaser or transferee of the vehicle, if all the following conditions exist:
(A) The seller or transferor is a vehicle dealer licensed by the state under this article.
(B) The vehicle dealer is not able to deliver the certificate of title at the time of sale or transfer.
(C) The vehicle dealer provides the purchaser or transferee with an affidavit under section 2 of this chapter.
(D) The purchaser or transferee has made all agreed upon initial payments for the vehicle, including delivery of a trade-in vehicle without hidden or undisclosed statutory liens.
(b) A licensed dealer may offer for sale a vehicle for which the dealer does not possess a certificate of title, if the dealer can comply with subsection (a)(4) or (a)(5) at the time of the sale.
(c) A vehicle dealer who fails to deliver a certificate of title within the time specified under this section is subject to the following civil penalties:
(1) One hundred dollars ($100) for the first violation in a calendar year.
(2) Two hundred fifty dollars ($250) for the second violation in a calendar year.
(3) Five hundred dollars ($500) for all subsequent violations in a calendar year.
Payment shall be made to the secretary of state and deposited in the dealer enforcement account established under IC 9-32-7-2.
(d) If a purchaser or transferee does not receive a valid certificate of title within the time specified by this section, the purchaser or transferee has the right to return the vehicle to the vehicle dealer ten (10) days after giving the vehicle dealer written notice demanding delivery of a valid certificate of title and the dealer's failure to deliver a valid certificate of title within that ten (10) day period. Upon return of the vehicle to the dealer in the same or similar condition as delivered to the purchaser or transferee under this section, the vehicle dealer shall pay to the purchaser or transferee the purchase price plus sales taxes, finance expenses, insurance expenses, and any other amount paid to the dealer by the purchaser or transferee.
(e) For purposes of this subsection, "timely deliver", with respect to a third party, means to deliver to the purchaser or transferee with a postmark dated or hand delivered not more than ten (10) business days after there is no obligation secured by the vehicle. If the dealer's inability to timely deliver a valid certificate of title results from the acts or omissions of a third party who has failed to timely deliver a valid certificate of title to the dealer, the dealer is entitled to claim against the third party one hundred dollars ($100). If:
(1) the dealer's inability to timely deliver a valid certificate of title results from the acts or omissions of a third party who has failed to timely deliver the certificate of title in the third
party's possession to the dealer; and
(2) the failure continues for ten (10) business days after the
dealer gives the third party written notice of the failure;
the dealer is entitled to claim against the third party all damages
sustained by the dealer in rescinding the dealer's sale with the
purchaser or transferee, including the dealer's reasonable
attorney's fees.
(f) If a vehicle for which a certificate of title has been issued by
another state is sold or delivered, the person selling or delivering
the vehicle shall deliver to the purchaser or receiver of the vehicle
a proper certificate of title with an assignment of the certificate of
title in a form prescribed by the bureau.
(g) The original certificate of title and all assignments and
subsequent reissues of the certificate of title shall be retained by
the bureau and appropriately classified and indexed in the most
convenient manner to trace the title to the vehicle described in the
certificate of title.
(h) A dealer shall make payment to a third party to satisfy any
obligation secured by the vehicle within ten (10) days after the date
of sale.
Sec. 2. The affidavit required by section 1(a)(5)(C) of this
chapter must be printed in the following form:
STATE OF INDIANA )
) ss:
COUNTY OF ____________.)
.I affirm under the penalties for perjury that all of the following
are true:
(1) That I am a dealer licensed under IC.9-32.
(2) That I cannot deliver a valid certificate of title to the retail
purchaser of the vehicle described in paragraph (3) at the
time of sale of the vehicle to the retail purchaser. The identity
of the previous seller or transferor is ___________________.
Payoff of lien was made on (date)_______. I expect to deliver
a valid and transferable certificate of title not later than
(date)_______________ from the State of (state)________ to
the purchaser.
(3) That I will undertake reasonable commercial efforts to
produce the valid certificate of title. The vehicle identification
number is __________________.
..Signed _______________________, Dealer
By_________________________________
Dated _____, ____
CUSTOMER ACKNOWLEDGES RECEIPT OF A COPY OF THIS AFFIDAVIT.
___________________________________
Customer Signature
Chapter 5. Manufacturers, Converter Manufacturers, and Dealers; Manufacturers' Certificates of Origin
Sec. 1. This chapter does not apply to an off-road vehicle.
Sec. 2. A manufacturer, a converter manufacturer, an automotive mobility dealer, a dealer, or other person may not sell or otherwise dispose of a new motor vehicle to another person, to be used by the other person for purposes of display or resale, without delivering to the other person a manufacturer's certificate of origin under this chapter that indicates the assignments of the certificate of origin necessary to show the ownership of the title to a person who purchases the motor vehicle.
Sec. 3. A person may not purchase or acquire a new motor vehicle without obtaining a valid manufacturer's certificate of origin from the seller of the motor vehicle.
Sec. 4. (a) Except as provided in subsection (b), certificates of origin and assignments of certificates of origin must be in a form:
(1) prescribed by the bureau; or
(2) approved by the bureau.
(b) A manufacturer's certificate of origin for a low speed vehicle must indicate that the motor vehicle is a low speed vehicle.
Sec. 5. A manufacturer, a converter manufacturer, an automotive mobility dealer, or a dealer must have:
(1) a certificate of title;
(2) an assigned certificate of title;
(3) a manufacturer's certificate of origin;
(4) an assigned manufacturer's certificate of origin; or
(5) other proof of ownership or evidence of right of possession as determined by the secretary;
for a motor vehicle, semitrailer, or recreational vehicle in the manufacturer's, converter manufacturer's, automotive mobility dealer's, or dealer's possession.
Sec. 6. (a) If a dealer purchases or acquires ownership of a:
(1) motor vehicle;
(2) semitrailer; or
(3) recreational vehicle;
in a state that does not have a certificate of title law, the dealer shall apply for an Indiana certificate of title for the motor vehicle, semitrailer, or recreational vehicle not more than thirty-one (31) days after the date of purchase or the date ownership of the motor vehicle, semitrailer, or recreational vehicle was acquired.
(b) The bureau shall collect a delinquent title fee as provided in IC.9-29-4-4 if a dealer fails to apply for a certificate of title for a motor vehicle, semitrailer, or recreational vehicle as described in subsection (a).
Sec. 7. The bureau shall provide forms on which applications for certificates of title and assignments of certificates of title must be made under this chapter.
Sec. 8. A manufacturer, a converter manufacturer, an automotive mobility dealer, or a dealer shall deliver an assigned certificate of title or certificate of origin to a person entitled to the certificate of title or certificate of origin.
Sec. 9. (a) In order to obtain or maintain a manufacturer's, a converter manufacturer's, an automotive mobility dealer's, or a dealer's license from the secretary, a person must agree to allow a police officer or an authorized representative of the secretary to inspect:
(1) certificates of origin, certificates of title, assignments of certificates of origin and certificates of title, or other proof of ownership or evidence of right of possession as determined by
the secretary; and
(2) motor vehicles, semitrailers, or recreational vehicles that
are held for resale by the manufacturer, converter
manufacturer, automotive mobility dealer, or dealer;
in the manufacturer's, converter manufacturer's, automotive
mobility dealer's, or dealer's place of business during reasonable
business hours.
(b) A certificate of title, a certificate of origin, and any other
proof of ownership described under subsection (a):
(1) must be readily available for inspection by or delivery to
the proper persons; and
(2) may not be removed from Indiana.
Chapter 6. Dealer License Plates
Sec. 1. A person licensed under IC.9-32-11 may apply for a
dealer license plate. The application must include any information
the secretary reasonably requires. Upon application, a distinctive
registration number shall be assigned to each applicant. Two (2)
certificates of registration and two (2) metal license plates bearing
the registration number of the applicant shall then be issued to the
applicant.
Sec. 2. (a) The secretary shall issue dealer license plates under
this chapter according to the following classifications:
(1) Dealer-new.
(2) Dealer-used.
(3) Manufacturer.
(4) Dealer-wholesale.
(b) The secretary may adopt rules under IC.4-22-2 to establish
additional classifications of dealer license plates, and may
prescribe the general conditions for usage of an additional
classification. The secretary shall establish the classifications of
antique car museum dealer license plates and dealer promotional
license plates.
Sec. 3. (a) The secretary shall:
(1) issue a research and development license plate under this
chapter to a manufacturer of a vehicle subcomponent system;
and
(2) adopt rules under IC.4-22-2 to prescribe the general
conditions for the:
(A) application;
(B) issuance; and
(C) use;
of research and development license plates for manufacturers of
vehicle component systems.
(b) The fee for a research and development license plate for a
manufacturer of a vehicle subcomponent system is the fee under
IC.9-29-17-2.
(c) A research and development license plate for a manufacturer
of a vehicle subcomponent system shall be displayed in accordance
with subsection (a)(2).
Sec. 4. The secretary shall determine the color, dimension, and
style of the letters and the information required on a dealer license
plate issued under this chapter.
Sec. 5. Upon payment of the fee under IC.9-29-17-1(b), an
applicant may obtain additional dealer license plates of the same
category. The applicant must demonstrate the applicant's need for
additional plates by stating the applicant's number of employees,
annual sales, and other supporting factors. The secretary shall
determine whether the applicant is entitled to additional plates.
Sec. 6. Dealer license plates issued to licensed dealers under this
chapter expire as follows:
(1) A person whose business name begins with the letters A
through B, inclusive, March 1 of each year.
(2) A person whose business name begins with the letters C
through D, inclusive, April 1 of each year.
(3) A person whose business name begins with the letters E
through G, inclusive, May 1 of each year.
(4) A person whose business name begins with the letters H
through I, inclusive, June 1 of each year.
(5) A person whose business name begins with the letters J
through L, inclusive, July 1 of each year.
(6) A person whose business name begins with the letters M
through O, inclusive, August 1 of each year.
(7) A person whose business name begins with the letters P
through R, inclusive, September 1 of each year.
(8) A person whose business name begins with the letters S
through T, inclusive, October 1 of each year.
(9) A person whose business name begins with the letters U
through Z, inclusive, November 1 of each year.
Dealer license plates issued to a sole proprietor expire based upon
the name of the sole proprietorship.
Sec. 7. (a) Except as provided in sections 8 and 9 of this chapter,
dealer-new, dealer-used, manufacturer, and wholesale license
plates may be used only on motor vehicles in the:
(1) dealer's inventory being held for sale;
(2) usual operation of the manufacturer's or dealer's business;
(3) movement of the manufacturer's or dealer's inventory; or
(4) inventory of a manufacturer or dealer that is unattended by the manufacturer or dealer or the dealer's agent for a maximum of ten (10) days by a prospective buyer or a service customer.
(b) The license plates referenced in subsection (a) must be:
(1) primarily used or stored at an address within Indiana; or
(2) displayed on a vehicle being transported for purposes of sale by a licensed Indiana dealer.
Sec. 8. Dealer-new, dealer-used, manufacturer, and wholesale license plates may be used without restriction by a manufacturer, a dealer, or an employee of a manufacturer or a dealer in compliance with rules adopted by the secretary to prohibit use of the plates solely to avoid payment of applicable taxes.
Sec. 9. Dealer-new, dealer-used, manufacturer, and wholesale license plates may be used without restriction by a designee of a dealer or a designee of a manufacturer under rules adopted by the secretary. The rules must provide the following:
(1) The dealer or manufacturer is to be assessed and pay the motor vehicle excise tax under IC.6-6-5 attributable to that part of the total year that the designee operates the motor vehicle.
(2) The dealer or manufacturer shall report to the secretary the date of assignment to a designee, the designee's name and address, and the date of termination of the assignment within ten (10) days after the assignment or termination.
(3) The tax calculated in subdivision (1) shall be paid within thirty (30) days after the termination of the assignment to the designee or at the time the dealer or manufacturer purchases license plates under this chapter.
Sec. 10. Dealer-new, dealer-used, manufacturer, and wholesale license plates may not be used on a vehicle that:
(1) is required to be registered; and
(2) has a fee charged by dealers to others for the use of the vehicle.
Sec. 11. (a) The secretary may issue an interim license plate to a dealer or manufacturer who is licensed and has been issued a license plate under section 2 of this chapter.
(b) The secretary shall prescribe the form of an interim license plate issued under this section. However, an interim license plate must bear the assigned registration number and provide sufficient
space for the expiration date as provided in subsection (c).
(c) Whenever a dealer or manufacturer sells or leases a motor
vehicle, the dealer or manufacturer may provide the buyer or
lessee with an interim license plate. The dealer shall, in the manner
provided by the secretary, affix on the plate in numerals and letters
at least three (3) inches high the date on which the interim license
plate expires.
(d) An interim license plate authorizes a motor vehicle owner or
lessor to operate the vehicle for a maximum period of thirty-one
(31) days after the date of sale or lease of the vehicle to the vehicle's
owner or lessor or until a regular license plate is issued, whichever
occurs first.
(e) A motor vehicle that is required by law to display license
plates on the front and rear of the vehicle is required to display
only a single interim license plate.
(f) An interim license plate shall be displayed:
(1) in the same manner required in IC 9-18-2-26; or
(2) in a location on the left side of a window facing the rear of
the motor vehicle that is clearly visible and unobstructed. The
plate must be affixed to the window of the motor vehicle.
(g) The dealer must provide an ownership document to the
purchaser at the time of issuance of the interim license plate that
must be kept in the motor vehicle during the period an interim
license plate is used.
(h) All interim license plates not issued by the dealer must be
retained in the possession of the dealer at all times.
Sec. 12. A dealer may not knowingly or intentionally issue an
altered interim license plate or an interim license plate with false
or fictitious information.
Sec. 13. A person may not knowingly or intentionally operate a
vehicle displaying an altered interim license plate issued under
section 11 of this chapter.
Sec. 14. A record directly related to the use of interim license
plates by a dealer must be made available to an investigating
employee of the secretary upon demand at the place of business of
the dealer.
Chapter 7. Accounts and Distribution of License and Permit
Fees Under IC 9-32-11
Sec. 1. (a) The dealer compliance account is established as a
separate account to be administered by the secretary. The funds in
the account must be available, with the approval of the budget
agency, for use in enforcing and administering this article.
(b) The expenses of administering this article shall be paid from money in the account.
(c) The treasurer of state shall invest the money in the dealer compliance account not currently needed to meet the obligations of the account in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the account.
(d) The dealer compliance account consists of the following:
(1) Money deposited under:
(A) IC.9-29-17-14(b);
(B) IC.9-29-17-14(c); and
(C) section 3(1) of this chapter.
(2) Appropriations to the account from other sources.
(3) Grants, gifts, donations, or transfers intended for deposit in the account.
(4) Interest that accrues from money in the account.
(e) Money in the dealer compliance account at the end of a state fiscal year does not revert to the state general fund.
(f) Money in the dealer compliance account is continuously appropriated to the secretary for the purposes of the account.
Sec. 2. (a) The dealer enforcement account is established as a separate account to be administered by the secretary.
(b) The dealer enforcement account consists of money deposited pursuant to:
(1) IC 9-32-4-1(c);
(2) IC 9-32-16-1(f);
(3) IC 9-32-16-13(d);
(4) IC 9-32-17-7; and
(5) IC 9-32-17-9.
The funds in the account shall be available, with the approval of the budget agency, for use to augment and supplement the funds appropriated for the administration of this article.
(c) The treasurer of state shall invest the money in the dealer enforcement account not currently needed to meet the obligations of the account in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited into the account.
(d) Money in the dealer enforcement account at the end of the state fiscal year does not revert to the state general fund.
(e) Money in the dealer enforcement account is continuously appropriated to the secretary for the purposes of the account.
Sec. 3. All money collected by the secretary from
manufacturers, factory branches, distributors, dealers, automobile
auctioneers, factory representatives, distributor representatives,
wholesale dealers, transfer dealers, converter manufacturers, or
automotive mobility dealers for licenses and permit fees under
IC.9-29-17-8 through IC 9-29-17-13 shall be deposited as follows:
(1) Thirty percent (30%) to the dealer compliance account
established by section 1 of this chapter.
(2) Forty percent (40%) to the motor vehicle highway account
under IC 8-14-1.
(3) Twenty percent (20%) to the state police department, and
this amount is continuously appropriated to the department
for its use in enforcing odometer laws.
(4) Ten percent (10%) to the attorney general, and this
amount is continuously appropriated to the attorney general
for use in enforcing odometer laws.
Chapter 8. Boat Dealers
Sec. 1. Boat dealers are classified for the purposes of this
chapter and IC.9-29-17-5 into two (2) categories as follows:
(1) Class A dealers having more than one (1) business location
for the sale of boats.
(2) Class B dealers having only one (1) business location for
the sale of boats.
Sec. 2. A person must be licensed under this chapter before the
person may engage in the business of selling boats.
Sec. 3. (a) An application for a boat dealer license must meet all
the following conditions:
(1) Be accompanied by the fee under IC.9-29-17-5.
(2) Be on a form prescribed by the secretary.
(3) Contain any information that the secretary reasonably
needs to enable the secretary to determine fully the:
(A) qualifications and eligibility of the applicant to receive
the license;
(B) location of each of the applicant's places of business in
Indiana; and
(C) ability of the applicant to conduct properly the
business for which the application is submitted.
(b) An application for a license as a boat dealer must show
whether the applicant proposes to sell new or used boats or both
new and used boats.
Sec. 4. A license issued to a boat dealer must specify the location
of each place of business and shall be conspicuously displayed at
each business location. If a business name or location is changed,
the licensee shall notify the secretary within ten (10) days and
remit the fee specified under IC.9-29-17-6(a). The secretary shall
endorse that change on the boat dealer license if it is determined
that the change is not subject to other provisions of this chapter.
Sec. 5. A boat dealer license issued under this chapter is valid
for one (1) year after the date the boat dealer license is issued. All
license fees shall be paid at the annual rate under IC.9-29-17-5.
Sec. 6. (a) A person licensed under this chapter shall furnish
evidence that the person currently has liability insurance covering
the person's place of business. The policy must have limits of not
less than the following:
(1) One hundred thousand dollars ($100,000) for bodily injury
to one (1) person.
(2) Three hundred thousand dollars ($300,000) per accident.
(3) Fifty thousand dollars ($50,000) for property damage.
(b) The minimum amounts must be maintained during the time
the license is valid.
Chapter 9. Licensing of Vehicle Salvaging
Sec. 1. A disposal facility, a used parts dealer, or an automotive
salvage rebuilder must be licensed by the secretary under this
chapter before the facility, dealer, or rebuilder may do any of the
following:
(1) Sell a used major component part of a vehicle.
(2) Wreck or dismantle a vehicle for resale of the major
component parts of the vehicle.
(3) Rebuild a wrecked or dismantled vehicle.
(4) Possess more than two (2) inoperable vehicles subject to
registration for more than thirty (30) days unless the facility,
dealer, or rebuilder holds a mechanic's lien on each vehicle
over the quantity of two (2).
(5) Engage in the business of storing, disposing, salvaging, or
recycling of vehicles, vehicle hulks, or parts of vehicles.
Sec. 2. A disposal facility, a used parts dealer, or an automotive
salvage rebuilder licensed in Indiana must have a principal place
of business in Indiana conducting the business that is the basis for
the license. A place of business that performs only ministerial tasks
is not considered to be conducting business.
Sec. 3. To apply for a license under this chapter, a disposal
facility, a used parts dealer, or an automotive salvage rebuilder
must submit the following to the secretary:
(1) A completed application, which must be verified by the
secretary.
(2) The licensing fee under IC.9-29-17-7.
Sec. 4. The secretary shall prescribe an application form to be used by persons applying for a license under this chapter. The application must include the following information:
(1) The applicant's name.
(2) The applicant's type of business organization and the following as appropriate:
(A) If the applicant is a corporation, the name and address of each officer and director of the corporation.
(B) If the applicant is a sole proprietorship, the name and address of the sole proprietor.
(C) If the applicant is a partnership, the name and address of each partner.
(D) If the applicant is an unincorporated association or similar form of business organization, the name and address of each member, trustee, or manager.
(3) The applicant's principal place of business.
(4) The types of activities specified in section 1 of this chapter that the applicant proposes to conduct.
Sec. 5. Each license under this chapter, except an initial license, shall be issued for a twelve (12) month period beginning March 1 and expiring the last day of February of each year. An initial license may be issued for a period of less than twelve (12) months, but the license must expire on the last day of February immediately following the date the license is issued.
Sec. 6. Within a reasonable time, the secretary shall do the following:
(1) Review all license applications submitted under this chapter.
(2) Approve a submitted license application unless any of the following apply:
(A) The application does not conform with this chapter.
(B) The applicant has made a material fact misrepresentation on the application.
(C) The applicant has been convicted of committing a fraudulent act in connection with one (1) of the activities specified in section 1 of this chapter.
Sec. 7. A person denied a license under section 6 of this chapter is entitled to a hearing under IC 9-32-16.
Sec. 8. If the secretary approves a license application under this chapter, the secretary shall grant the applicant:
(1) an initial license for the applicant's principal place of
business; and
(2) a supplemental license for each other place of business
listed on the application.
Sec. 9. The secretary shall prescribe the form of the licenses
granted under section 8 of this chapter. A license granted under
section 8 of this chapter must include the following information:
(1) The licensee's name.
(2) The licensee's type of business organization and the
following as appropriate:
(A) If a corporation, the name and address of each officer.
(B) If a sole proprietorship, the name and address of the
proprietor.
(C) If a partnership, the name and address of each
managing partner.
(D) If an unincorporated association or similar form of
business organization, the name and address of the
manager or other chief administrative official.
(3) The licensee's principal place of business.
(4) A listing of the types of business activities specified in
section 1 of this chapter that the licensee may conduct.
(5) The date the license expires.
Sec. 10. A licensee shall post a license granted to the licensee
under this chapter in a conspicuous place at the licensed place of
business.
Sec. 11. If the secretary receives a written complaint from a
local zoning body that a disposal facility or automotive salvage
rebuilder, subject to this chapter, is operating in violation of a local
zoning ordinance, the secretary shall delay the issuance or renewal
of the facility's or rebuilder's license under this chapter until the
local zoning complaints have been satisfied.
Chapter 10. Motor Vehicle Sales Advisory Board
Sec. 1. The motor vehicle sales advisory board is established to
advise the secretary in the administration of this article.
Sec. 2. (a) The advisory board is composed of the secretary and
eleven (11) persons appointed by the governor upon the
recommendation of the secretary as follows:
(1) Two (2) of the appointed members must be franchised new
motor vehicle dealers as follows:
(A) One (1) member must have sold fewer than seven
hundred fifty (750) new motor vehicles in the year before
the member's appointment.
(B) One (1) member must have sold more than seven
hundred forty-nine (749) new motor vehicles in the year
before the member's appointment.
(2) Two (2) of the appointed members must represent the
automobile manufacturing industry, and each must have been
an Indiana resident for at least two (2) years immediately
preceding the member's appointment.
(3) Two (2) of the appointed members must represent the
general public and may not have any direct interest in the
manufacture or sale of motor vehicles.
(4) One (1) member must represent used motor vehicle
dealers that are not franchised new motor vehicle dealers.
(5) One (1) member must represent used motor vehicle
auctioneers.
(6) One (1) member must represent the automobile salvage
and recycling industry.
(7) One (1) member must represent boat dealers.
(8) One (1) member must represent the recreational vehicle
industry.
(b) Not more than six (6) members of the advisory board may be
of the same political party.
Sec. 3. (a) A member appointed to the advisory board under
section 2 of this chapter serves a three (3) year term. A person may
not serve more than two (2) consecutive full terms. Each appointed
member serves until the member's successor is appointed and
qualified.
(b) A member may be removed for good cause.
(c) A vacancy shall be filled by appointment of the governor for
the unexpired term.
Sec. 4. Members of the advisory board are entitled to receive the
expenses and per diem allowed by law. Membership on the
advisory board does not constitute the holding of a public office.
Sec. 5. The secretary shall serve as chairperson of the advisory
board. The advisory board shall elect a vice chairperson and
secretary from the appointed members during the first month of
each year. The vice chairperson and secretary serve until their
successors are appointed and qualified and may be removed for
good cause.
Sec. 6. The advisory board shall meet at least one (1) time
during a calendar year. Additional meetings may be convened at
the call of the secretary or the written request of any three (3)
members.
Sec. 7. Seven (7) members of the advisory board constitute a
quorum for doing business. The majority vote of the members of
the quorum, present and voting, is required for the passage of a
matter put to a vote of the advisory board.
Sec. 8. The advisory board is vested with the following powers:
(1) To consult with and advise the secretary.
(2) To suggest rules, including the following:
(A) The contents of forms.
(B) Methods and procedures for the investigation and
evaluation of the qualifications of applicants for licenses.
(C) The criteria upon which to issue, deny, suspend, and
revoke licenses.
(D) Procedures for the investigation into and conduct of
hearings on unfair practices.
Chapter 11. Regulation of Vehicle Merchandising
Sec. 1. (a) The following persons must be licensed under this
article to engage in the business of buying or selling motor vehicles
or semitrailers:
(1) An automobile auctioneer.
(2) A converter manufacturer.
(3) A dealer.
(4) A distributor.
(5) A distributor representative.
(6) A factory branch.
(7) A factory representative.
(8) A manufacturer.
(9) A transfer dealer.
(10) A wholesale dealer.
(11) An automotive mobility dealer.
(b) An automotive mobility dealer who engages in the business
of:
(1) selling, installing, or servicing;
(2) offering to sell, install, or service; or
(3) soliciting or advertising the sale, installation, or servicing
of;
equipment or modifications specifically designed to facilitate use
or operation of a vehicle by an individual who is disabled or aged
must be licensed under this article.
Sec. 2. (a) An application for a license under this chapter must:
(1) be accompanied by payment of the applicable fee required
under IC 9-29-17;
(2) be on a form prescribed by the secretary;
(3) contain the information the secretary considers necessary
to enable the secretary to determine fully:
(A) the qualifications and eligibility of the applicant to
receive the license;
(B) the location of each of the applicant's places of business
in Indiana; and
(C) the ability of the applicant to conduct properly the
business for which the application is submitted; and
(4) contain evidence of a bond required in subsection (e).
An application for a wholesale dealer license must contain the
additional information required in section 3 of this chapter.
(b) An application for a license as a dealer must show whether
the applicant proposes to sell new or used motor vehicles, or both.
(c) An applicant who proposes to use the Internet or another
computer network to facilitate the sale of motor vehicles to
consumers in Indiana shall, if the applicant's activities may result
in the creation of business records outside Indiana, provide the
division with the name, address, and telephone number of the
person who has control of those business records. The secretary
may not issue a license to a dealer who transacts business in this
manner and does not have an established place of business in
Indiana, except as proved under section 11(h) of this chapter.
(d) The application must include an affidavit from:
(1) the person charged with enforcing a zoning ordinance, if
one exists; or
(2) the zoning enforcement officer under IC 36-7-4, if one
exists;
who has jurisdiction over the real property where the applicant
wants to operate as a dealer. The affidavit must state that the
proposed location is zoned for the operation of a dealer's
establishment. The applicant may file the affidavit at any time after
the filing of the application. However, the secretary may not issue
a license until the applicant files the affidavit.
(e) Except as provided in subsection (g), a licensee shall
maintain a bond satisfactory to the secretary in the amount of
twenty-five thousand dollars ($25,000). The bond must:
(1) be in favor of the state; and
(2) secure payment of fines, penalties, costs, and fees assessed
by the secretary after:
(A) notice;
(B) opportunity for a hearing; and
(C) opportunity for judicial review;
in addition to securing the payment of damages to a person
aggrieved by a violation of this chapter by the licensee after
a judgment has been issued.
(f) Service under this chapter shall be made in accordance with
the Indiana Rules of Trial Procedure.
(g) Instead of meeting the requirement in subsection (e), a
licensee may submit to the secretary evidence that the licensee is a
member of a risk retention group that is regulated by the Indiana
department of insurance.
Sec. 3. In addition to the requirements of section 2 of this
chapter, a license application for a wholesale dealer must contain
the following:
(1) A copy of a written lease that has a term of not less than
one (1) year, if the established place of business is not owned
by the applicant.
(2) If the application is the initial application, photographs of
the established place of business. The photographs must
include but are not limited to the:
(A) major exterior advertising sign; and
(B) display and office building.
Sec. 4. A wholesale dealer that has been issued a license under
this chapter must maintain the following standards for the license
to remain valid:
(1) A conspicuous permanent sign with letters at least six (6)
inches high bearing:
(A) the business name of the wholesale dealer; and
(B) the hours of operation of the wholesale dealer;
must be located on the exterior of the established place of
business of the wholesale dealer.
(2) The office of the wholesale dealer must be:
(A) housed at the established place of business of the
wholesale dealer;
(B) at least one hundred (100) square feet; and
(C) served with utilities such as electricity, lighting, heat,
and a business telephone exclusively for the use of the
wholesale dealer.
(3) The wholesale dealer or an employee of the wholesale
dealer must be present for the purposes of inspection of
records at the established place of business of the wholesale
dealer during the posted hours of operation of the business of
the wholesale dealer.
(4) All business records of the wholesale dealer must be kept
at the licensed place of business of the wholesale dealer.
Sec. 5. A manufacturer, distributor, factory branch, or dealer proposing to sell new motor vehicles shall file and maintain with the secretary:
(1) a current copy of each franchise to which the person is a party; or
(2) if the person is a party to multiple franchises that are identical except for stated items, a copy of the franchise form with supplemental schedules of variations from the form.
Sec. 6. (a) The license issued to a factory branch, an automobile auctioneer, a transfer dealer, or a dealer under this chapter:
(1) must specify the location of each place of business; and
(2) shall be conspicuously displayed at each business location.
(b) If a licensee's business name or location is changed, the licensee shall notify the secretary not later than ten (10) days after the change and remit the fee required under IC.9-29-17. The secretary shall endorse the change on the license if the secretary determines that the change is not subject to other provisions of this article.
(c) A dealer who uses the Internet or another computer network to facilitate the sale of motor vehicles as set forth in section 2(c) of this chapter shall notify the secretary not later than ten (10) days after any change in a name, address, or telephone number documented in business records located outside Indiana that have been created in transactions made in Indiana by the dealer. A report made under this subsection is not subject to the fee required under IC.9-29-17.
(d) A dealer who wants to change a location must submit to the secretary an application for approval of the change. The application must be accompanied by an affidavit from:
(1) the person charged with enforcing a zoning ordinance described in this subsection; or
(2) the zoning enforcement officer under IC.36-7-4, if one exists;
who has jurisdiction over the real property where the applicant wants to operate as a dealer. The affidavit must state that the proposed location is zoned for the operation of a dealer's establishment. The secretary may not approve a change of location or endorse a change of location on the dealer's license until the dealer provides the affidavit.
(e) For the purpose of this section, an offsite license issued under section 11 of this chapter does not constitute a change of location.
Sec. 7. A license issued to a factory representative or distributor
representative must state the name of the representative's
employer. Within ten (10) days after a change of employer, the
licensee shall mail the license to the secretary and indicate the
name and address of the licensee's new employer. The secretary
shall endorse the change on the license and return the license to the
licensee in care of the new employer of the licensee. A factory
representative, distributor representative, or wholesale dealer
must have a license when engaged in business and shall display the
license upon request. A temporary license for a factory
representative or distributor representative may be issued for a
period of not more than one hundred twenty (120) days pending
investigation by the secretary of the representative's qualification
for a license.
Sec. 8. The secretary shall, by rules adopted under IC.4-22-2,
establish requirements for an initial application for and renewal of
an automotive mobility dealer's license. The rules must include a
requirement that each initial or renewal application for an
automotive mobility dealer's license include proof that the
applicant is accredited through the Quality Assurance Program of
the National Mobility Equipment Dealers Association.
Sec. 9. An automotive mobility dealer licensed under this
chapter is entitled to:
(1) display;
(2) inventory;
(3) advertise;
(4) offer for sale; or
(5) do any combination of subdivisions (1) through (4)
concerning;
any adapted vehicle.
Sec. 10. This section does not apply to sales made at a motor
vehicle industry sponsored trade show. A dealer may not sell or
offer to sell a vehicle at a location away from the dealer's
established place of business without obtaining an offsite sales
license under section 11 of this chapter.
Sec. 11. (a) Except as provided in subsections (b) through (g),
the secretary shall issue an offsite sales license to a dealer licensed
under this chapter who submits an application for the license not
later than ten (10) business days or two (2) calendar weeks before
the offsite sale date. License applications under this section shall be
made public upon the request of any person.
(b) The secretary may not issue an offsite sales license to a
dealer who does not have an established place of business within
Indiana.
(c) This subsection does not apply to:
(1) new manufactured housing dealers;
(2) recreational vehicle dealers;
(3) a rental company that is a dealer conducting a sale at a site
within twenty (20) miles of any of its company owned
affiliates;
(4) off-road vehicle dealers; or
(5) dealers of vehicles classified as classic, collector, or antique
under rules adopted under section 18(a)(2)(B) of this chapter.
The secretary may not issue an offsite sales license to a licensed
dealer proposing to conduct a sale outside a radius of twenty (20)
miles from the established place of business of the licensed dealer.
(d) A vehicle display is not considered an offsite sale if it is
conducted by a new vehicle franchised dealer in an open area
where no sales personnel and no sales material are present.
(e) The secretary may not issue an offsite sales license to a
licensed dealer proposing to conduct an offsite sale for more than
ten (10) calendar days.
(f) As used in this subsection, "executive" has the meaning set
forth in IC 36-1-2-5. The secretary may not issue an offsite sales
license to a licensed dealer if the dealer does not have certification
that the offsite sale would be in compliance with local zoning
ordinances or other local ordinances. Authorization under this
subsection may be obtained only from the following:
(1) If the offsite sale would be located within the corporate
boundaries of a city or town, the executive of the city or town.
(2) If the offsite sale would be located outside the corporate
boundaries of a city or town:
(A) except as provided in clause (B), the executive of the
county; or
(B) if the city or town exercises zoning jurisdiction under
IC.36-7-4-205(b) over the area where the offsite sale would
be located, the executive of the city or town.
(g) The secretary may not issue an offsite sales license to a
licensed dealer who has held more than three (3) nonconsecutive
offsite sales in the year ending on the date of the offsite sale for
which the license application is being submitted.
(h) Section 2(c) of this chapter does not apply to the application
or issuance of an offsite sales license under this section.
Sec. 12. A license issued under this chapter is valid for a one (1)
year period in accordance with the following schedule:
(1) A person whose business name begins with the letters A through B, inclusive, shall register before March 1 of each year.
(2) A person whose business name begins with the letters C through D, inclusive, shall register before April 1 of each year.
(3) A person whose business name begins with the letters E through G, inclusive, shall register before May 1 of each year.
(4) A person whose business name begins with the letters H through I, inclusive, shall register before June 1 of each year.
(5) A person whose business name begins with the letters J through L, inclusive, shall register before July 1 of each year.
(6) A person whose business name begins with the letters M through O, inclusive, shall register before August 1 of each year.
(7) A person whose business name begins with the letters P through R, inclusive, shall register before September 1 of each year.
(8) A person whose business name begins with the letters S through T, inclusive, shall register before October 1 of each year.
(9) A person whose business name begins with the letters U through Z, inclusive, shall register before November 1 of each year.
A sole proprietor shall register based upon the name of the sole proprietorship.
Sec. 13. A person licensed under this article may transfer or assign a title for a motor vehicle.
Sec. 14. (a) A person licensed under this article shall furnish evidence that the person has liability insurance or garage liability insurance covering the person's place of business. The policy must have limits of at least the following:
(1) One hundred thousand dollars ($100,000) for bodily injury to one (1) person.
(2) Three hundred thousand dollars ($300,000) for bodily injury for each accident.
(3) Fifty thousand dollars ($50,000) for property damage.
(b) The minimum amounts required by subsection (a) must be maintained during the time the license is valid.
Sec. 15. (a) A person who ceases a business activity for which a license was issued under this chapter shall do the following:
(1) Notify the secretary of the date that the business activity will cease.
(2) Deliver to the secretary all permanent dealer license plates and interim license plates issued to the person not later than ten (10) days after the date the business activity will cease.
(b) A dealer may not transfer or sell the:
(1) dealer's license; or
(2) use of the dealer's license.
(c) A dealer that changes its form of organization or state of incorporation may continue the dealer's licensure by filing an amendment to the registration if the change does not involve a material fact in the financial condition or management of the dealer. The amendment becomes effective when filed or on the date designated by the registrant in its filing. The new organization is a successor to the original registrant for the purposes of this article.
(d) If there is a change in the dealer's ownership, the successive owner shall file a new application for a license under this chapter.
Sec. 16. Except as provided in IC.9-29-17, all revenues accruing to the secretary under this chapter shall be deposited in the motor vehicle highway account under IC 8-14-1.
Sec. 17. A dealer who sells a motor vehicle through the use of the Internet or another computer network shall deliver the motor vehicle to the customer, or the customer's representative, at the place of business of the dealer in Indiana.
Sec. 18. (a) A person licensed under this article shall be issued a special event permit from the secretary for a special event that meets the following conditions:
(1) The event is a vehicle auction conducted by auctioneers licensed under IC.25-6.1-3.
(2) The vehicles to be auctioned are:
(A) at least fifteen (15) years old; or
(B) classified as classic, collector, or antique vehicles under rules adopted by the secretary.
(3) At least one hundred (100) vehicles will be auctioned during the special event.
(4) The licensee submits to the secretary an application for a special event permit not later than thirty (30) days before the beginning date of the special event.
(5) The application under subdivision (4) is accompanied by the permit fee required under IC.9-29-17-13.
(b) Not more than two (2) special event permits may be issued by the secretary to the same applicant within a twelve (12) month period.
Chapter 12. Disclosures Required in Motor Vehicle Leases
Sec. 1. A retail lessor shall do the following:
(1) Comply with the requirements of Regulation M (12 CFR 213) for disclosure of gross capitalized cost, capitalized cost reduction, and adjusted capitalized cost adopted under the federal Truth in Lending Act (15 U.S.C. 1601 et seq.).
(2) Disclose to a retail lessee in a separate blocked section in a lease agreement, in capital letters in at least 10 point bold type the following:
THIS IS A LEASE AGREEMENT.
THIS IS NOT A PURCHASE AGREEMENT.
PLEASE REVIEW THESE MATTERS CAREFULLY AND SEEK INDEPENDENT PROFESSIONAL ADVICE IF YOU HAVE ANY QUESTIONS CONCERNING THIS TRANSACTION. YOU ARE ENTITLED TO AN EXACT COPY OF THE AGREEMENT YOU SIGN.
(3) Provide the retail lessee with a copy of each document signed by the retail lessee during the course of the lease transaction.
Sec. 2. A trade-in vehicle used, in whole or in part, to pay amounts due at lease signing or delivery of a leased vehicle must be identified:
(1) as a trade-in vehicle in the lease agreement; and
(2) by year, make, and model.
The lease agreement must state the net credit of the trade-in vehicle used to pay amounts due at lease signing or delivery of the leased vehicle.
Sec. 3. A bona fide printing error identified on the face of the lease agreement does not constitute a violation of this chapter.
Sec. 4. (a) A retail lessor who fails to comply with the requirements of this chapter is liable to the retail lessee for:
(1) actual damages sustained;
(2) a civil penalty of not more than one thousand dollars ($1,000) per lease transaction; and
(3) reasonable attorney's fees and costs.
(b) In addition to any other remedies provided by law, a retail lessee may bring an action in circuit court to recover the damages, penalties, and fees described in subsection (a).
(c) The total recovery of damages, penalties, and fees in a class action civil suit brought under this section may not exceed one hundred thousand dollars ($100,000).
Sec. 5. A civil suit described under section 4 of this chapter may be brought on behalf of a consumer by the attorney general.
Sec. 6. An action authorized by sections 4 and 5 of this chapter must be brought not later than three (3) years after the date the lease agreement is signed.
Chapter 13. Unfair Practices
Sec. 1. It is an unfair practice for a dealer to require a purchaser of a motor vehicle, as a condition of sale and delivery of the motor vehicle, to purchase any equipment, part, or accessory not ordered by the purchaser unless the equipment, part, or accessory is:
(1) already installed on the motor vehicle when the motor vehicle is received by or offered for sale by the dealer; or
(2) required by law.
Sec. 2. It is an unfair practice for a dealer to willingly fail to perform the obligations imposed on the dealer in connection with the delivery and preparation of a new motor vehicle for retail sale as provided in the preparation and delivery agreement of the manufacturer or distributor applicable to the motor vehicle.
Sec. 3. It is an unfair practice for a dealer to willingly fail to perform the obligations imposed on the dealer in connection with the warranty agreement of the manufacturer or distributor applicable to any motor vehicle sold by the dealer.
Sec. 4. It is an unfair practice for a dealer to sell a new motor vehicle having a trade name, trade or service mark, or related characteristic for which the dealer does not have a franchise in effect at the time of the sale. However, a vehicle having more than one (1) trade name, trade or service mark, or related characteristic as a result of modification or further manufacture by a manufacturer, converter manufacturer, or an automotive mobility dealer licensed under this article may be sold by a franchisee appointed by that manufacturer, converter manufacturer, or automotive mobility dealer.
Sec. 5. It is an unfair practice for a dealer to willingly fail to perform the fiduciary duty imposed on the dealer by IC.6-2.5-2-1 with regard to the collection and remittance of the state gross retail tax. Willful violation of the fiduciary duty includes written or oral agreements between a dealer and a prospective purchaser that would give the appearance that a bona fide trade-in has taken place, when in fact the purpose of the agreement is to reduce the prospective purchaser's state gross retail tax and thereby deprive the state of revenue.
Sec. 6. It is an unfair practice for a dealer to sell, exchange, or transfer a rebuilt vehicle without disclosing in writing to the
purchaser, customer, or transferee the fact that the vehicle is a
rebuilt vehicle if the dealer knows or should reasonably know
before consummating the sale, exchange, or transfer that the
vehicle is a rebuilt vehicle.
Sec. 7. It is an unfair practice for a dealer to require a
purchaser of a motor vehicle as a condition of the sale and delivery
of the motor vehicle to pay a document preparation fee, unless the
fee:
(1) reflects expenses actually incurred for the preparation of
documents;
(2) was affirmatively disclosed by the dealer;
(3) was negotiated by the dealer and the purchaser;
(4) is not for the preparation, handling, or service of
documents that are incidental to the extension of credit; and
(5) is set forth on a buyer's order or similar agreement by a
means other than preprinting.
Sec. 8. (a) It is an unfair practice for a manufacturer or
distributor to violate IC.23-2-2.7.
(b) It is an unfair practice for a manufacturer or distributor to
enter into an agreement in which a dealer is required to waive the
provisions of:
(1) this chapter; or
(2) IC.23-2-2.7.
However, this subsection does not apply to a voluntary agreement
in which separate consideration is offered and accepted.
Sec. 9. It is an unfair practice for a manufacturer or distributor
to coerce a dealer to order parts, accessories, equipment,
machinery, tools, appliances, or any other commodity from a
person.
Sec. 10. It is an unfair practice for a manufacturer or
distributor to prevent or require, or attempt to prevent or require,
by contract or otherwise, a change in the capital structure of a
dealer or the means by or through which the dealer finances the
dealer's operation, if the dealer at all times meets reasonable
capital standards agreed to by the dealer and the manufacturer or
distributor. A change in capital structure does not cause a change
in the principal management or have the effect of a sale of the
franchise without the consent of the manufacturer or distributor.
Sec. 11. It is an unfair practice for a manufacturer or
distributor to prevent or require, or attempt to prevent or require,
a dealer to change the dealer's executive management, other than
the principal dealer operator or operators, if the franchise was
granted in reliance upon the personal qualifications of the
principal dealer operator or operators.
Sec. 12. It is an unfair practice for a manufacturer or
distributor to prevent or require, or attempt to prevent or require,
by contract or otherwise, a dealer or an officer, a partner, or a
stockholder of a dealer to sell or transfer a part of the interest of
the officer, partner, or stockholder to any other person. A dealer,
an officer, a partner, or a stockholder may not sell, transfer, or
assign the franchise or a right under the franchise without the
consent of the manufacturer or distributor. This consent may not
be withheld unreasonably.
Sec. 13. It is an unfair practice for a manufacturer or
distributor to prevent or attempt to prevent a dealer from
receiving fair and reasonable compensation for the value of the
franchised business as a going concern. The dealer may not
transfer or assign the dealer's franchise without the consent of the
manufacturer or distributor, and the manufacturer or distributor
may not unreasonably withhold consent.
Sec. 14. It is an unfair practice for a manufacturer or
distributor to employ a person as a representative who has not
been licensed under this article.
Sec. 15. (a) It is an unfair practice for a manufacturer or
distributor to fail to compensate a dealer the posted labor rate for
the work and services the dealer is required to perform in
connection with the dealer's delivery and preparation obligations
under any franchise, or fail to compensate a dealer the posted
hourly labor rate for labor and other expenses incurred by the
dealer under the manufacturer's warranty agreements as long as
the posted rate is reasonable. Judgment of the reasonableness
includes consideration of charges for similar repairs by
comparable repair facilities in the local area as well as mechanic's
wages and fringe benefits.
(b) This section does not authorize a manufacturer or
distributor and its franchisees in Indiana to establish a uniform
hourly labor reimbursement rate effective for the entire state.
Sec. 16. (a) A manufacturer or distributor and at least thirty
percent (30%) of its franchisees in Indiana of the same line make
may agree in an express written contract citing this section to a
uniform warranty reimbursement policy to be used by franchisees
for the performance of warranty repairs. The contract must
include reimbursement for parts used in warranty repairs or the
use of a uniform time standards manual, or both. The allowance
for diagnosis within the uniform time standards manual must be
reasonable and adequate for the work and service to be performed.
The manufacturer or distributor:
(1) may have only one (1) contract with regard to each line
make; and
(2) must have a reasonable and fair procedure for franchisees
to request a modification or adjustment of a standard
included in the uniform time standards manual.
(b) A contract described in subsection (a) must meet the
following criteria:
(1) Establish a uniform parts reimbursement rate that must
be greater than the manufacturer's or distributor's nationally
established parts reimbursement rate in effect at the time the
contract becomes effective. A subsequent contract must
include a uniform reimbursement rate that is equal to or
greater than the rate in the immediately prior contract.
(2) Apply to all warranty repair orders written while the
agreement is in effect.
(3) At any time during the period the contract is in effect:
(A) be available to any franchisee of the same line make as
the franchisees that entered into the contract with the
manufacturer or distributor; and
(B) be available to a franchisee of the same line make on
the same terms as apply to the franchisees that entered into
the contract with the manufacturer or distributor.
(4) Be for a term not to exceed three (3) years.
(5) Allow any party to the uniform warranty reimbursement
policy to terminate the policy with thirty (30) days prior
written notice to all parties upon the annual anniversary of
the policy, if the policy is for at least one (1) year.
(6) Remain in effect for the entire original period if the
manufacturer and at least one (1) franchisee remain parties
to the policy.
(c) A manufacturer or distributor that enters into a contract
with its franchisees under subsection (a) may seek to recover only
its costs from a franchisee that receives a higher reimbursement
rate, if authorized by law, subject to the following:
(1) Costs may be recovered only by increasing invoice prices
on new vehicles received by the franchisee.
(2) A manufacturer or distributor may make an exception for
vehicles that are titled in the name of a purchaser in another
state. However, price increases imposed for the purpose of
recovering costs imposed by this section may vary from time
to time and from model to model and must apply uniformly to
all franchisees of the same line make that have requested
reimbursement for warranty repairs at a level higher than
provided for in the contract.
(d) A manufacturer or distributor that enters into a contract
with its franchisees under subsection (a) shall do the following:
(1) Certify to the secretary under oath, in a writing signed by
a representative of the manufacturer or distributor, that at
the time the contract was entered into at least thirty percent
(30%) of the franchisees of the line make were parties to the
contract.
(2) File a copy of the contract with the bureau at the time of
the certification.
(3) Maintain a file that contains the information upon which
the certification required under subdivision (1) is based for
three (3) years after the certification is made.
Sec. 17. (a) It is an unfair practice for a manufacturer or
distributor to:
(1) fail to pay a claim made by a dealer for compensation for:
(A) delivery and preparation work;
(B) warranty work; and
(C) incentive payments;
not later than thirty (30) days after the claim is approved;
(2) fail to approve or disapprove a claim not later than thirty
(30) days after receipt of the claim; or
(3) disapprove a claim without notice to the dealer in writing
of the grounds for disapproval.
(b) A manufacturer or distributor may:
(1) audit a claim made by a dealer; or
(2) charge back to a dealer any amounts paid on a false or
unsubstantiated claim;
for up to one (1) year after the date on which the claim is paid.
However, the limitations of this subsection do not apply if the
manufacturer or distributor can prove fraud on a claim. A
manufacturer or distributor shall not discriminate among dealers
with regard to auditing or charging back claims.
Sec. 18. It is an unfair practice for a manufacturer or
distributor to sell a motor vehicle for resale to a person not
licensed under this article.
Sec. 19. It is an unfair practice for a manufacturer or
distributor to refuse or fail to indemnify and hold harmless a
dealer, upon written notification from the dealer, from all losses,
costs, and expenses that result or arise from or are related to a
complaint, claim, defense, or suit against the dealer that concerns
defects in a motor vehicle or other goods or services that are the
responsibility of the manufacturer or distributor.
Sec. 20. It is an unfair practice for an automobile auctioneer, a
wholesale dealer, or a transfer dealer, in connection with the
auctioneer's or dealer's business, to use false, deceptive, or
misleading advertising or to engage in deceptive acts or practices.
Sec. 21. It is an unfair practice for an employee, an agent, an
officer, a partner, or a representative of a licensee to engage in a
practice prohibited by this chapter.
Sec. 22. (a) It is an unfair practice for a manufacturer to
terminate a franchise in violation of IC 23-2-2.7-3. A dealer may
not transfer, assign, or sell the business and assets of a dealership
or an interest in the dealership to another person under an
agreement that contemplates or is conditioned on a continuation of
the franchise relationship with the manufacturer or distributor
unless the dealer first:
(1) notifies the manufacturer or distributor of the dealer's
decision to make the transfer, assignment, or sale by written
notice; and
(2) obtains the approval of the manufacturer or distributor.
The dealer must provide the manufacturer or distributor with
completed application forms and related information generally
used by the manufacturer or distributor to conduct a review of
such a proposal and a copy of all agreements regarding the
proposed transfer, assignment, or sale.
(b) The manufacturer or distributor shall send a letter by
certified mail to the dealer not later than sixty (60) days after the
manufacturer or distributor receives the information specified in
subsection (a). The letter must indicate any disapproval of the
transfer, assignment, or sale and must set forth the material
reasons for the disapproval. If the manufacturer or distributor
does not respond by letter within sixty (60) days after the
manufacturer or distributor receives the information under
subsection (a), the manufacturer's or distributor's consent to the
proposed transfer, assignment, or sale is considered to have been
granted. A manufacturer or distributor may not unreasonably
withhold approval of a transfer, assignment, or sale under this
section.
(c) A manufacturer or distributor has a right of first refusal as
specified in the franchise agreement to acquire the new vehicle
dealer's assets or ownership if there is a proposed change of more
than fifty percent (50%) of the dealer's ownership or proposed
transfer of more than fifty percent (50%) of the new vehicle
dealer's assets, and all the following are met:
(1) The manufacturer or distributor notifies the dealer in
writing of the intent of the manufacturer or distributor to
exercise the right of first refusal within the sixty (60) day
notice period under subsection (b).
(2) The exercise of the right of first refusal will result in the
dealer and the dealer's owners receiving consideration, terms,
and conditions that are either the same as or better than those
they have contracted to receive under the proposed change of
more than fifty percent (50%) of the dealer's ownership or
transfer of more than fifty percent (50%) of the new vehicle
dealer's assets.
(3) The proposed change of the dealership's ownership or
transfer of the new vehicle dealer's assets does not involve the
transfer of assets or the transfer or issuance of stock by the
dealer or one (1) or more of the dealer's owners to any of the
following:
(A) A designated family member or members, including
any of the following members of one (1) or more dealer
owners:
(i) The spouse.
(ii) A child.
(iii) A grandchild.
(iv) The spouse of a child or a grandchild.
(v) A sibling.
(vi) A parent.
(B) A manager:
(i) employed by the dealer in the dealership during the
previous four (4) years; and
(ii) who is otherwise qualified as a dealer operator.
(C) A partnership or corporation controlled by any of the
family members described in clause (A).
(D) A trust arrangement established or to be established:
(i) for the purpose of allowing the new vehicle dealer to
continue to qualify as such under the manufacturer's or
distributor's standards; or
(ii) to provide for the succession of the franchise
agreement to designated family members or qualified
management in the event of the death or incapacity of
the dealer or the principal owner or owners.
(4) Except as otherwise provided in this subsection, the
manufacturer or distributor agrees to pay the reasonable
expenses, including reasonable attorney's fees, that do not
exceed the usual, customary, and reasonable fees charged for
similar work done for other clients, and that are incurred by
the proposed owner or transferee before the manufacturer's
or distributor's exercise of the right of first refusal in
negotiating and implementing the contract for the proposed
change of the dealer ownership or the transfer of the new
vehicle dealer's assets. Payment of expenses and attorney's
fees is not required if the dealer has failed to submit an
accounting of those expenses not later than twenty (20) days
after the dealer receives the manufacturer's or distributor's
written request for such an accounting. An expense
accounting may be requested by a manufacturer or
distributor before exercising the right of first refusal.
(d) Violation of this section by a manufacturer or distributor is
an unfair practice by the manufacturer or distributor.
Sec. 23. It is an unfair practice for a manufacturer, distributor,
officer, or agent to do any of the following:
(1) Require, coerce, or attempt to coerce a new motor vehicle
dealer in Indiana to:
(A) change the location of the dealership;
(B) make any substantial alterations to the use of
franchises; or
(C) make any substantial alterations to the dealership
premises or facilities;
if to do so would be unreasonable or would not be justified by
current economic conditions or reasonable business
considerations. This subdivision does not prevent a
manufacturer or distributor from establishing and enforcing
reasonable facility requirements.
(2) Require, coerce, or attempt to coerce a new motor vehicle
dealer in Indiana to divest ownership of or management in
another line or make of motor vehicles that the dealer has
established in its dealership facilities with the prior written
approval of the manufacturer or distributor.
(3) Establish or acquire wholly or partially a franchisor
owned outlet engaged wholly or partially in a substantially
identical business to that of the franchisee within the exclusive
territory granted the franchisee by the franchise agreement
or, if no exclusive territory is designated, competing unfairly
with the franchisee within a reasonable market area. A
franchisor is not considered to be competing unfairly if
operating:
(A) a business for less than two (2) years;
(B) in a bona fide retail operation that is for sale to any
qualified independent person at a fair and reasonable
price; or
(C) in a bona fide relationship in which an independent
person has made a significant investment subject to loss in
the business operation and can reasonably expect to
acquire majority ownership or managerial control of the
business on reasonable terms and conditions.
This subdivision does not apply to recreational vehicle
manufacturer franchisors.
Sec. 24. (a) This section does not apply to the relocation of a new
motor vehicle dealer to a location that is not more than two (2)
miles from its established place of business.
(b) This section does not apply to the reopening or replacement
in a relevant market area of a closed dealership that was closed
within the preceding three hundred sixty-five (365) days, if the
established place of business of the reopened or replacement dealer
is within two (2) miles of the established place of business of the
closed dealership.
(c) This section does not apply to a new motor vehicle dealer
located in a county having a population of more than one hundred
thousand (100,000) if:
(1) the new motor vehicle dealer relocates to a site that is
located at a distance greater than the existing distance of
another new motor vehicle dealer of the same line make
before the relocation; and
(2) the site of the relocation is outside an area that is within a
radius of four (4) miles from another new motor vehicle
dealer of the same line make;
but does apply to a new motor vehicle dealer that, before January
1, 2013, had been engaged in the process of relocating but had not
physically relocated to the new intended site by January 1, 2013,
and to a new motor vehicle dealer that began engaging in the
process of relocating on or after January 1, 2013.
(d) Before a franchisor enters into a franchise establishing or
relocating a new motor vehicle dealer within a relevant market
area where the same line make is represented, the franchisor shall
give written notice to each new motor vehicle dealer of the same
line make in the relevant market area of the franchisor's intention
to establish an additional dealer or to relocate an existing dealer
within that relevant market area.
(e) Not later than thirty (30) days after:
(1) receiving the notice provided for in subsection (d); or
(2) the end of any appeal procedure provided by the
franchisor;
a new motor vehicle dealer may bring a declaratory judgment
action before the division to determine whether good cause exists
for the establishing or relocating of a proposed new motor vehicle
dealer. If an action is filed under this section, the franchisor may
not establish or relocate the proposed new motor vehicle dealer
until the division has rendered a decision on the matter. An action
brought under this section shall be given precedence over all other
matters pending before the division.
(f) In determining whether good cause exists for establishing or
relocating an additional new motor vehicle dealer for the same line
make, the division shall take into consideration the existing
circumstances, including the following:
(1) Permanency of the investment.
(2) Effect on the retail new motor vehicle business and the
consuming public in the relevant market area.
(3) Whether it is injurious or beneficial to the public welfare.
(4) Whether the new motor vehicle dealers of the same line
make in that relevant market area are providing adequate
competition and convenient consumer care for the motor
vehicles of that line make in that market area, including the
adequacy of motor vehicle sales and qualified service
personnel.
(5) Whether the establishment or relocation of the new motor
vehicle dealer would promote competition.
(6) Growth or decline of the population and the number of
new motor vehicle registrations in the relevant market area.
(7) The effect on the relocating dealer of a denial of its
relocation into the relevant market area.
Sec. 25. It is an unfair practice for a person to:
(1) act as;
(2) offer to act as; or
(3) profess to be;
a broker in the advertising, buying, or selling of at least five (5)
new or used vehicles per year.
Sec. 26. It is an unfair practice for a dealer to, in connection
with the offer, sale, or purchase of a vehicle, directly or indirectly:
(1) employ a device, scheme, or artifice to defraud;
(2) make an untrue statement of a material fact or omit to
state a material fact necessary to make the statement made,
in light of the circumstances under which the statement was
made, not misleading; or
(3) engage in an act, practice, or course of business that
operates or would operate as a fraud or deceit upon another
person.
Chapter 14. Damage to New Motor Vehicles
Sec. 1. Notwithstanding the terms, provisions, or conditions of
an agreement or franchise, a motor vehicle dealer is solely liable
for damage to a new motor vehicle:
(1) after acceptance from the carrier or transporter; and
(2) before delivery to the ultimate purchaser.
Sec. 2. Notwithstanding the terms, provisions, or conditions of
any agreement or franchise, a manufacturer, converter
manufacturer, or automotive mobility dealer is liable for all
damage to a new motor vehicle before delivery of the motor vehicle
to a carrier or transporter.
Sec. 3. A motor vehicle dealer is liable for damage to a new
motor vehicle after the motor vehicle is delivered to the carrier or
transporter only if the dealer selects the method of transportation,
mode of transportation, and the carrier or transporter. In all other
instances, the manufacturer is liable for carrier related damage to
a new motor vehicle.
Sec. 4. (a) This section does not apply to damage to:
(1) glass;
(2) radios;
(3) tires; and
(4) bumpers;
when replaced by identical manufacturer's original equipment.
(b) Any uncorrected or corrected damage to a new motor
vehicle that exceeds four percent (4%) of the manufacturer's
suggested retail price (as defined in 26 U.S.C. 4216), as measured
by retail repair costs, must be disclosed in writing before delivery
of the motor vehicle to an ultimate purchaser.
Sec. 5. Repaired damage to a new motor vehicle ordered by a
customer not exceeding four percent (4%) of the manufacturer's
suggested retail price (as defined in 26 U.S.C. 4216) does not need
to be disclosed at the time of sale.
Chapter 15. Succession to Franchise by Designated Family
Members
Sec. 1. This chapter does not apply to a franchise if:
(1) the franchise is granted to a dealer other than a new motor
vehicle dealer; and
(2) the franchise or other written document filed with the
franchisor includes the franchisee's designation of a successor
to the franchise who is not the:
(A) spouse of the franchisee;
(B) child of the franchisee;
(C) grandchild of the franchisee;
(D) spouse of a:
(i) child; or
(ii) grandchild;
of the franchisee;
(E) parent of the franchisee; or
(F) sibling of the franchisee.
Sec. 2. A designated family member of a deceased or
incapacitated franchisee may succeed the franchisee under the
existing franchise if:
(1) the manufacturer or distributor determines, subject to
section 3 of this chapter, that the existing franchise should be
honored; and
(2) the designated family member complies with section 4 of
this chapter.
Sec. 3. A manufacturer or distributor may refuse to honor the
succession of an existing franchise under section 2 of this chapter
only for good cause.
Sec. 4. To qualify under section 2 of this chapter to succeed a
franchisee under the existing franchise, a designated family
member must do all the following:
(1) Not later than one hundred twenty (120) days after the
franchisee's death or disability, give the manufacturer or
distributor written notice of the designated family member's
intention to succeed to the franchise.
(2) Agree to be bound by all terms and conditions of the
existing franchise.
(3) Meet the criteria generally applied at the time of the death
or incapacity of the franchisee by the manufacturer or
distributor in qualifying new motor vehicle dealers as
franchisees.
(4) If requested by the manufacturer or distributor, promptly supply personal and financial data that is reasonably necessary for the manufacturer or distributor to determine if the existing franchise should be honored.
Sec. 5. (a) Not later than sixty (60) days after receipt of:
(1) notice from a designated family member under section 4(1) of this chapter; or
(2) requested personal or financial data under section 4(4) of this chapter;
a manufacturer or distributor that determines that good cause exists for refusing to honor an existing franchise shall serve notice of the determination on the designated family member.
(b) The notice required under subsection (a) must state the following:
(1) The specific grounds for the manufacturer's or distributor's determination.
(2) The date on which the existing franchise will be discontinued, which must be at least ninety (90) days after the date the notice is served.
(c) If notice of the manufacturer's determination is not served within the time specified in subsection (a) and does not comply with subsection (b), the franchise must be honored and is not subject to discontinuance under this chapter.
Chapter 16. Administration and Legal Proceedings
Sec. 1. (a) This chapter shall be administered by the secretary.
(b) The secretary:
(1) shall employ employees, including a director, investigators, or attorneys, necessary for the administration of this article; and
(2) shall fix the compensation of the employees with the approval of the budget agency.
(c) It is unlawful for the director or an officer, employee, or designee of the secretary to use for personal benefit or the benefit of others records or other information obtained by or filed with the dealer services division under this article that are confidential. This article does not authorize the director or an officer, employee, or designee of the secretary to disclose the record or information, except in accordance with this chapter.
(d) This article does not create or diminish a privilege or exemption that exists at common law, by statute or rule, or otherwise.
(e) The secretary may develop and implement dealer's and
vehicle purchaser's education initiatives to inform dealers and the
public about the offer or sale of vehicles, with particular emphasis
on the prevention and detection of fraud involving vehicle sales. In
developing and implementing these initiatives, the secretary may
collaborate with public and nonprofit organizations with an
interest in consumer education. The secretary may accept a grant
or donation from a person that is not affiliated with the dealer
industry or from a nonprofit organization, regardless of whether
the organization is affiliated with the dealer industry, to develop
and implement consumer education initiatives. This subsection
does not authorize the secretary to require participation or
monetary contributions of a registrant in an education program.
(f) Fees and funds accruing from the administration of this
article:
(1) described in IC 9-32-7-1(d) shall be accounted for by the
secretary and shall be deposited with the treasurer of state to
be deposited in the dealer compliance account established by
IC 9-32-7-1(a);
(2) described in IC 9-32-7-2(b) shall be accounted for by the
secretary and shall be deposited with the treasurer of state to
be deposited in the dealer enforcement account established by
IC 9-32-7-2(a);
(3) described in IC 9-29-17-14(b)(2), IC 9-29-17-14(c)(2),
IC 9-29-17-15, and IC 9-32-7-3(2) shall be accounted for by
the secretary and shall be deposited with the treasurer of state
to be deposited in the motor vehicle highway account under
IC 8-14-1;
(4) described in IC 9-32-7-3(3) shall be accounted for by the
secretary and shall be deposited with the treasurer of state to
be deposited with the state police department, and these fees
and funds are continuously appropriated to the department
for its use in enforcing odometer laws;
(5) described in IC 9-32-7-3(4) shall be accounted for by the
secretary and shall be deposited with the treasurer of state to
be deposited with the attorney general, and these fees and
funds are continuously appropriated to the attorney general
for use in enforcing odometer laws; and
(6) described in IC 9-29-1-4(a) shall be accounted for by the
secretary and shall be deposited with the treasurer of state to
be deposited in the state police building account.
Expenses incurred in the administration of this article shall be paid
from the state general fund upon appropriation being made for the
expenses in the manner provided by law for the making of those
appropriations. However, grants and donations under subsection
(e), costs of investigations, and civil penalties recovered under this
chapter shall be deposited by the treasurer of state in the dealer
enforcement account established by IC 9-32-7-2. The funds in the
dealer compliance account established by IC 9-32-7-1 must be
available, with the approval of the budget agency, to augment and
supplement the funds appropriated for the administration of this
article.
(g) In connection with the administration and enforcement of
this article, the attorney general shall render all necessary
assistance to the director upon the request of the director. To that
end, the attorney general shall employ legal and other professional
services as are necessary to adequately and fully perform the
service under the direction of the director as the demands of the
division require. Expenses incurred by the attorney general for the
purposes stated under this subsection are chargeable against and
shall be paid out of funds appropriated to the attorney general for
the administration of the attorney general's office. The attorney
general may authorize the director and the director's designee to
represent the director and the division in any proceeding involving
enforcement or defense of this article.
(h) The secretary, director, and employees of the division are
not liable in an individual capacity, except to the state, for an act
done or omitted in connection with the performance of their duties
under this article.
(i) The director and each attorney or investigator designated by
the secretary:
(1) are police officers of the state;
(2) have all the powers and duties of police officers in
conducting investigations for violations of this article, or in
serving any process, notice, or order issued by an officer,
authority, or court in connection with the enforcement of this
article; and
(3) comprise the enforcement department of the division.
The division is a criminal justice agency for purposes of
IC 5-2-4-1(3) and IC 10-13-3-6.
(j) The provisions of this article delegating and granting power
to the secretary, division, and director shall be liberally construed
to the end that:
(1) the practice or commission of fraud may be prohibited and
prevented; and
(2) disclosure of sufficient and reliable information in order to afford reasonable opportunity for the exercise of independent judgment of the persons involved may be assured.
(k) Copies of any statements and documents filed in the office of the secretary and of any records of the secretary certified by the director are admissible in any prosecution, action, suit, or proceeding based on, arising out of, or under this article to the same effect as the original of the statement, document, or record would be if actually produced.
Sec. 2. (a) An order issued under this article may deny a dealer license application for registration if the secretary finds that the order is in the public interest and subsection (c) authorizes the action. An order may condition or limit the license of an applicant to be a dealer and, if the applicant for a dealer license is a partner, officer, director, or person having similar status or performing similar functions, or a person directly or indirectly in control of the dealership, the order may condition or limit the license.
(b) If the secretary finds that an order is in the public interest and subsection (c) authorizes the action, an order issued under this article may deny, revoke, suspend, condition, limit, or permanently bar the granting of a license to or an application for a license from a dealer, or a partner, an officer, a director, or a person having a similar status or performing similar functions as a dealer, or a person directly or indirectly in control of the dealer. However, the secretary may not:
(1) institute a revocation or suspension proceeding under this subsection based on an order issued under the law of another state that is reported to the secretary or a designee of the secretary more than one (1) year after the date of the order on which it is based; or
(2) issue an order on the basis of an order issued under the dealer services laws of another state unless the other order was based on conduct for which subsection (c) would authorize the action had the conduct occurred in Indiana.
(c) A person may be disciplined under subsections (a) and (b) if the person:
(1) has filed an application for a dealer license in Indiana under this article, or its predecessor, within the previous ten (10) years, which, as of the effective date of license or registration or as of any date after filing in the case of an order denying effectiveness, was incomplete as to a material
fact or contained a statement that, in light of the
circumstances under which it was made, was false or
misleading with respect to a material fact;
(2) knowingly violated or knowingly failed to comply with this
article, or its predecessor, within the previous ten (10) years;
(3) has been convicted of a felony within the previous ten (10)
years or has been convicted of a misdemeanor involving theft,
fraud, or an aspect of business involving the offer, sale,
financing, repair, or manufacture of a vehicle;
(4) is enjoined or restrained by a court with jurisdiction in an
action instituted by a state or the United States from engaging
in or continuing an act, practice, or course of business
involving an aspect of a business involving the offer, barter,
sale, purchase, transfer, financing, repair, or manufacture of
a vehicle;
(5) refuses to allow or otherwise impedes the secretary from
conducting an audit or inspection;
(6) has engaged in dishonest or unethical practices in a
business involving the offer, barter, sale, purchase, transfer,
financing, repair, or manufacture of a vehicle within the
previous ten (10) years;
(7) is engaging in unfair practices as set forth in this article;
(8) is on the most recent tax warrant list supplied to the
secretary by the department of state revenue;
(9) violates IC 23-2-2.7; or
(10) violates IC 9-19-9.
(d) The secretary may suspend or deny an application, impose
fines and costs, restrict, condition, limit, bar, suspend, or rescind
a dealer license, or order restitution, or do any combination of
these actions before final determination of an administrative
proceeding. Upon the issuance of an order, the secretary shall
promptly notify each person subject to the order:
(1) that the order has been issued;
(2) the reasons for the action; and
(3) that within fifteen (15) days after the receipt of a request
in a record from the person the matter will be scheduled for
a hearing.
If a hearing is not requested and no hearing is ordered by the
secretary within thirty (30) days after the date of service of the
order, the order becomes final by operation of law. If a hearing is
requested or ordered, the secretary, after notice of and opportunity
for hearing to each person subject to the order, may modify or
vacate the order or extend the order until final determination.
(e) Revocation or suspension of a license of a manufacturer, a
distributor, a factory branch, a dealer, or an automobile auctioneer
may be limited to one (1) or more locations, to one (1) or more
defined areas, or only to certain aspects of the business.
(f) Except as provided in subsection (d), an order may not be
issued under this section without:
(1) appropriate notice to the applicant or registrant;
(2) an opportunity for a hearing; and
(3) findings of fact and conclusion of law in a record.
(g) A person that controls, directly or indirectly, a person not in
compliance with this section may be disciplined by order of the
secretary under subsections (a) and (b) to the same extent as the
noncomplying person, unless the controlling person did not know,
and in the exercise of reasonable care could not have known, of the
existence of conduct that is a ground for discipline under this
section.
(h) A person subject to this chapter that has not been issued a
license is subject to the same disciplinary fines, costs, and penalties
as if a license had been issued.
Sec. 3. Information or documents obtained by the division in the
course of an investigation, including an audit conducted under
section 6(c) of this chapter, are law enforcement records for the
purposes IC 5-14-3-4(b)(1).
Sec. 4. A person complying with any request, order, or subpoena
issued by the division for the production of documentary evidence
shall retain the originals and shall provide the division with clearly
legible, true, and complete copies of the documents requested,
along with a signed cover letter, which must identify those
documents with a reasonable degree of specificity.
Sec. 5. All dealers licensed with the division shall, upon request,
provide members of the staff of the division prompt access, during
reasonable business hours, to that part of the premises at the
dealer's place of business where:
(1) documents are stored; or
(2) vehicle sales are offered, made, or processed.
Sec. 6. (a) A dealer licensed or required to be licensed under this
article shall make and maintain the records, accounts,
correspondence, memoranda, papers, books, and other records
required under this article.
(b) Dealer records required to be maintained under
IC 9-32-6-14 and other records required under this article may be
maintained in any form of data storage acceptable to the secretary
if the records are readily accessible and available to copy by an
investigating or auditing employee of the secretary upon demand
at the place of business of the dealer.
(c) The records of a dealer licensed or required to be licensed
under this article are subject to such reasonable periodic, special,
or other audits or inspections by a representative of the secretary,
within or outside Indiana, as the secretary considers necessary or
appropriate in the public interest and for the protection of
investors. An audit or inspection may be made at any time and
without prior notice. The representative of the secretary may copy,
and remove for audit or inspection copies of, the records the
secretary reasonably considers necessary or appropriate to
conduct the audit or inspection.
(d) Dealer records required to be maintained under
IC 9-32-6-14 and other records required under this article must be
maintained at the place of business of a dealer for a period of two
(2) years. Following the two (2) year period, records may be moved
offsite but must be maintained for a period of five (5) years.
Sec. 7. At the request of the division or equivalent regulator of
another state or foreign jurisdiction, the secretary may provide
assistance if the requesting regulator states that the requesting
regulator is conducting an investigation to determine whether a
person has violated, is violating, or is about to violate a law or rule
of the other state or foreign jurisdiction relating to dealer matters
that the requesting regulator administers or enforces. The
secretary may provide assistance by using the authority to
investigate and the powers conferred by this article as the
secretary determines are necessary or appropriate. The assistance
may be provided without regard to whether the conduct described
in the request would also constitute a violation of this article or
other law of Indiana if occurring in Indiana. In deciding whether
to provide the assistance, the secretary may consider:
(1) whether the requesting regulator is permitted and has
agreed to provide assistance reciprocally within the state or
foreign jurisdiction of the requesting regulator to the
secretary on dealer matters when requested;
(2) whether compliance with the request would violate or
prejudice the public policy of Indiana; and
(3) the availability of resources and employees of the division
to carry out the request for assistance.
Sec. 8. (a) A person shall cooperate in an inquiry, investigation,
or inspection conducted by, or on behalf of, the division for
purposes of determining whether or not a person has violated or is
about to violate any provision under this article. The willful failure
of a person to cooperate, absent a bona fide claim of privilege,
may:
(1) be considered by the division a violation of statute; and
(2) thus subject the person to denial, suspension, or revocation
of licensing or registration or a bar from licensing or
registration.
(b) The following are examples of, but are not the only, conduct
by a person that may be considered a failure to cooperate:
(1) The failure to timely respond by way of appearance or
production of documents to a subpoena or order issued by the
division.
(2) The failure to answer any question pertinent to inquiry
unless the response to the question is subject to a bona fide
claim of privilege.
(3) The failure to grant division personnel access to:
(A) the business premises of a dealer or a person required
to be licensed as a dealer; or
(B) the records and documents that the dealer or person
required to be licensed as a dealer is required, by statute or
rule, to make available for inspection.
(4) The failure to attend a scheduled proceeding at which the
appearance of the person is required. If a person elects to
retain counsel for the purpose of representation in any such
proceeding, it is the responsibility of the person to do so in a
timely fashion. The failure of a person to retain counsel,
absent a showing of good cause, does not require an
adjournment of the proceeding.
(5) The failure to timely respond to or to provide information
requested under a demand under this chapter.
(6) Aiding or abetting the failure of another person to
cooperate.
Sec. 9. (a) The division may copy records or require a dealer to
copy records and provide the copies to the division to the extent
and in the manner reasonable under the circumstances.
(b) The division may impose a reasonable fee for the expense of
making copies under subsection (a).
Sec. 10. (a) The secretary or a designee of the secretary may
refer the facts drawn from an investigation to the prosecuting
attorney of the county in which a crime is alleged to have been
committed.
(b) The secretary may assist the prosecuting attorney in
prosecuting an action brought subsequent to a referral made under
subsection (a), which may include a division attorney serving as a
special deputy prosecutor appointed by the prosecuting attorney.
Sec. 11. (a) All dealers operating as a:
(1) corporation;
(2) limited liability company;
(3) limited partnership; or
(4) limited liability partnership;
shall file and maintain all filings required to remain in good
standing with the secretary of state business services division.
(b) The dealer shall provide the secretary:
(1) the federal tax identification number; and
(2) the registered retail merchant's certificate number issued
under IC 6-2.5-8;
issued to the dealer.
(c) The dealer must, for the entire licensing period, have an
established place of business with a physical Indiana address. The
dealer may not have a mailing address that differs from the actual
location of the business.
(d) The applicant and all corporate officers, partners, and
owners must submit to a national criminal history background
check (as defined in IC 10-13-3-12) administered by the state police
at the expense of the applicant and the corporate officers, partners,
and owners. The secretary may deny an application based upon
felony or misdemeanor convictions related to dealing in motor
vehicles.
(e) The dealer and the corporation, company, or partnership
must be in good standing with the bureau, the department of state
revenue, and the state police department.
Sec. 12. It is a violation of this article for a person to:
(1) make or cause to be made, in a record that is used in an
action or proceeding or filed under this chapter, a statement
that, at the time and in the light of the circumstances under
which it is made, is false or misleading with respect to a
material fact; or
(2) in connection with a statement to the division or to a
consumer, omit to state a material fact necessary to make the
statement made, in light of the circumstances under which it
was made, not false or misleading.
Sec. 13. (a) If the secretary believes that a person has engaged,
is engaging, or is about to engage in an act, practice, or course of
business:
(1) that constitutes a violation of this article or a rule adopted
or order issued under this article; or
(2) that materially aids a violation of this article or a rule
adopted or order issued under this article;
the secretary or a designee of the secretary, in addition to any
administrative remedies, may maintain an action in the circuit or
superior court in the county where the investigation or inquiry in
question is being conducted to enjoin the act, practice, or course of
business and to enforce compliance with this article or a rule
adopted or order issued under this article.
(b) In an action under this section and on a proper showing, a
court may:
(1) issue a permanent or temporary injunction, restraining
order, or declaratory judgment;
(2) order other appropriate or ancillary relief, which may
include:
(A) an asset freeze, accounting, writ of attachment, writ of
general or specific execution, and appointment of a
receiver or conservator;
(B) ordering a receiver or conservator appointed under
clause (A) to:
(i) take charge and control of the property of the
respondent, including investment accounts and accounts
in a depository institution, rents, and profits;
(ii) collect debts; and
(iii) acquire and dispose of property;
(C) imposing a civil penalty of up to ten thousand dollars
($10,000) per violation and an order of rescission,
restitution, or disgorgement directed to a person that has
engaged in an act, practice, or course of business
constituting a violation of this article or a rule adopted or
order issued under this article; and
(D) ordering the payment of prejudgment and
postjudgment interest; or
(3) order other relief that the court considers appropriate.
(c) The director may not be required to post a bond in an action
or proceeding under this article.
(d) Penalties collected under this section shall be deposited in
the dealer enforcement account established by IC 9-32-7-2.
Sec. 14. (a) The secretary may:
(1) conduct public or private investigations within or outside Indiana that the secretary considers necessary or appropriate to determine whether a person has violated, is violating, or is about to violate this article or a rule adopted or order issued under this article, or aid in the enforcement of this article or in the adoption of rules and forms under this article;
(2) require or permit a person to testify, file a statement, or produce a record, under oath or otherwise as the secretary determines, as to all the facts and circumstances concerning a matter to be investigated or about which an action or proceeding is to be instituted; and
(3) publish a record concerning an action, proceeding, or investigation under, or a violation of, this article or a rule adopted or order issued under this article if the secretary determines it is necessary or appropriate and in the public interest and for the protection of dealers or consumers.
(b) For purposes of an investigation under this article, the secretary or a designated employee of the secretary may administer oaths and affirmations, subpoena witnesses, seek compulsion of attendance, take attendance, take evidence, require the filing of statements, and require the production of any records that the secretary considers relevant or material to the investigation. Upon order of the secretary or a hearing officer appointed by the secretary in a hearing, depositions may be taken in the manner prescribed by law for depositions in civil actions and made returnable to the secretary or a hearing officer appointed by the secretary.
(c) If a person does not appear or refuses to testify, file a statement, or produce records, or otherwise does not obey a subpoena as required by this article, the secretary or hearing officer appointed by the secretary may apply to the circuit or superior court in the county where the hearing, investigation, or inquiry in question is being conducted to enforce compliance. The court may:
(1) hold the person in contempt;
(2) order the person to appear before the secretary or hearing officer appointed by the secretary;
(3) order the person to testify about the matter under investigation or in question;
(4) order the production of records;
(5) grant injunctive relief, including restricting or prohibiting the offer or sale of vehicles;
(6) impose a civil penalty of not more than twenty thousand dollars ($20,000) for each violation; and
(7) grant any other necessary or appropriate relief.
(d) This section does not preclude a person from applying to the circuit or superior court in the county where the hearing, investigation, or inquiry in question is being conducted for relief from a request to appear, testify, file a statement, produce records, or obey a subpoena.
(e) If a witness, in any hearing, inquiry, or investigation conducted under this article, refuses to answer any question or produce any item, the secretary may file a written petition with the circuit or superior court in the county where the hearing, investigation, or inquiry in question is being conducted requesting a hearing on the refusal. The court shall hold a hearing to determine if the witness may refuse to answer the question or produce the item. If the court determines that the witness, based upon the witness's privilege against self-incrimination, may properly refuse to answer or produce an item, the secretary may make a written request that the court grant use immunity to the witness. Upon written request of the secretary, the court shall grant use immunity to a witness. The court shall instruct the witness, by written order or in open court, that:
(1) any evidence the witness gives, or evidence derived from that evidence, may not be used in any criminal proceedings against that witness, unless the evidence is volunteered by the witness or is not responsive to a question; and
(2) the witness must answer the questions asked and produce the items requested.
A grant of use immunity does not prohibit the use of evidence that the witness gives in a hearing, investigation, or inquiry from being used in a prosecution for perjury under IC 35-44.1-2-1. If a witness refuses to give the evidence after the witness has been granted use immunity, the court may find the witness in contempt.
(f) In any prosecution, action, suit, or proceeding based upon or arising out of or under this article, a certificate signed by the secretary showing compliance or noncompliance with this article by a dealer constitutes prima facie evidence of compliance or noncompliance with this article and is admissible in evidence in any action at law or in equity to enforce this article.
(g) Each witness who appears before the secretary or a hearing officer appointed by the secretary by order is entitled to receive for the witness's attendance the fees and mileage provided for
witnesses in civil cases, which must be audited and paid by the state
in the same manner as other expenses of the division are audited
and paid when proper vouchers sworn to by the witnesses and
approved by the secretary are presented. However, a witness
subpoenaed at the instance of parties other than the secretary or
a hearing officer appointed by the secretary is not entitled to any
fee or compensation from the state.
Sec. 15. (a) A dealer who is injured by an unfair practice set
forth in IC 9-32-13 or IC 9-32-15 may file a complaint or petition
with the division.
(b) A dealer may not file a complaint or petition with the
division under subsection (a) based on an alleged violation of
IC 9-32-13 or IC 9-32-15 by a manufacturer or distributor unless
the dealer serves a demand for mediation upon the manufacturer
or distributor:
(1) before; or
(2) at the same time as;
filing the complaint or petition. A demand for mediation must be
in writing and served upon the manufacturer or distributor by
certified mail at an address designated for the manufacturer or
distributor in the licensor's records. The demand for mediation
must contain a brief statement of the dispute and the relief sought
by the dealer serving the demand.
(c) Not later than twenty (20) days after the date the demand for
mediation is served under subsection (b), the parties shall mutually
select an independent mediator and meet with the mediator for the
purpose of attempting to resolve the dispute. The meeting place
must be within Indiana at a location selected by the mediator. The
mediator may extend the period in which the meeting must occur
for good cause shown by either party or upon stipulation of the
parties.
Chapter 17. Penalties and Disciplinary Action
Sec. 1. Except as provided in section 8 of this chapter, a person
who violates this article, a rule established under this article, or an
order issued by the secretary under this article is subject to a civil
penalty of up to ten thousand dollars ($10,000) for each act of
violation. Civil penalties recovered under this section shall be paid
to the state and deposited into the dealer enforcement account
established by IC 9-32-7-2.
Sec. 2. (a) Except as provided in subsections (b) and (c), a person
who violates IC 9-32-4 commits a Class C infraction.
(b) A person who knowingly or intentionally violates
IC 9-32-4-1(a)(1), IC 9-32-4-1(a)(2), IC 9-32-4-1(a)(4),
IC 9-32-4-1(a)(5), or IC 9-32-4-1(d) commits a Class B
misdemeanor.
(c) A person who knowingly or intentionally violates
IC 9-32-4-1(a)(3) commits a:
(1) Class A misdemeanor for the first violation; and
(2) Class D felony for a second or subsequent unrelated
violation.
Sec. 3. (a) Except as provided in subsection (b), a person who
knowingly or intentionally violates any of the following commits a
Class A misdemeanor:
(1) IC 9-32-6-7.
(2) IC 9-32-6-10.
(3) IC 9-32-6-11(d).
(4) IC 9-32-6-12.
(b) A person who knowingly or intentionally violates
IC 9-32-6-13 commits a Class A misdemeanor.
Sec. 4. A person who knowingly or intentionally violates any of
the following commits a Class A misdemeanor:
(1) IC 9-32-9-1.
(2) IC 9-32-9-2.
(3) IC 9-32-9-10.
Sec. 5. A person who knowingly or intentionally violates:
(1) IC 9-32-11-1; or
(2) IC 9-32-11-12;
commits a Class A misdemeanor.
Sec. 6. A person who knowingly or intentionally violates
IC 9-32-13 commits a Class A misdemeanor.
Sec. 7. A dealer who fails to deliver a certificate of origin or title
under IC 9-32-5-2 or IC 9-32-5-8 or fails to deliver timely a
certificate of title under IC 9-32-4-1(c) is subject to the following
civil penalties:
(1) One hundred dollars ($100) for the first violation in a
calendar year.
(2) Two hundred fifty dollars ($250) for the second violation
in a calendar year.
(3) Five hundred dollars ($500) for all subsequent violations
in a calendar year.
Payment shall be made to the secretary and deposited in the dealer
enforcement account established under IC 9-32-7-2.
Sec. 8. A retail lessor who fails to comply with IC 9-32-12, as set
forth in IC 9-32-12-4, is liable to the retail lessee for:
(1) actual damages sustained;
(2) a civil penalty of not more than one thousand dollars ($1,000) per lease transaction; and
(3) reasonable attorney's fees and costs.
Sec. 9. In addition to all other remedies, the secretary may seek the following remedies against a person that violates, attempts to violate, or assists in a violation of or an attempt to violate IC 9-32-16:
(1) An injunction.
(2) Appointment of a receiver or conservator.
(3) A civil penalty not to exceed ten thousand dollars ($10,000) per violation.
(4) An action to enforce a civil penalty assessed under subdivision (3).
Civil penalties recovered under this section shall be paid to the state and deposited into the dealer enforcement account established by IC 9-32-7-2.
(1) The corporation does not pay within sixty (60) days after they are due any taxes or penalties imposed by this article or other law.
(2) The corporation does not deliver the corporation's annual report to the secretary of state within sixty (60) days after the report is due.
(3) The corporation is without a registered agent or registered office in Indiana for at least sixty (60) days.
(4) The corporation does not notify the secretary of state within sixty (60) days that the corporation's:
(A) registered agent or registered office has been changed;
(B) registered agent has resigned; or
(C) registered office has been discontinued.
(5) The corporation's period of duration, if any, stated in the corporation's articles of incorporation expires.
(6) The secretary receives credible evidence that the corporation is engaged in:
(A) illegal activity; or
(B) activity not authorized by the corporation's articles of incorporation.
JULY 1, 2013]: Sec. 1. (a) This article shall be administered by a
division of the office of the secretary of state. The secretary of state
shall appoint a securities commissioner who shall be responsible for
the direction and supervision of the division and the administration of
this article under the direction and control of the secretary of state. The
salary of the securities commissioner shall be paid out of the funds
appropriated for the administration of this article. The commissioner
shall serve at the will of the secretary of state.
(b) The secretary of state:
(1) shall employ a chief deputy, attorneys, a senior investigator,
a senior accountant, and other deputies, investigators,
accountants, clerks, stenographers, and other employees necessary
for the administration of this article; and
(2) shall fix their compensation with the approval of the budget
agency.
(c) It is unlawful for the commissioner or an officer, employee, or
designee of the commissioner to use for personal benefit or the benefit
of others records or other information obtained by or filed with the
commissioner that are not public under section 7(b) of this chapter.
This article does not authorize the commissioner or an officer,
employee, or designee of the commissioner to disclose the record or
information, except in accordance with section 2, 7(c), or 8 of this
chapter.
(d) This article does not create or diminish a privilege or exemption
that exists at common law, by statute or rule, or otherwise.
(e) Subject to IC 4-2-6-15, the commissioner may develop and
implement investor education initiatives to inform the public about
investing in securities, with particular emphasis on the prevention and
detection of securities fraud. In developing and implementing these
initiatives, the commissioner may collaborate with public and nonprofit
organizations with an interest in investor education. The commissioner
may accept a grant or donation from a person that is not affiliated with
the securities industry or from a nonprofit organization, regardless of
whether the organization is affiliated with the securities industry, to
develop and implement investor education initiatives. This subsection
does not authorize the commissioner to require participation or
monetary contributions of a registrant in an investor education
program.
(f) Fees and funds of whatever character accruing from the
administration of this article shall be accounted for by the secretary of
state and shall be deposited with the treasurer of state to be deposited
by the treasurer of the state in either the state general fund or the
enforcement account referenced below. Subject to IC 4-2-6-15,
expenses incurred in the administration of this article shall be paid
from the state general fund upon appropriation being made for the
expenses in the manner provided by law for the making of those
appropriations. However, grants and donations received under
subsection (e), costs of investigations recovered under section 4(e) of
this chapter, and civil penalties recovered under sections 3(b) and 4(d)
of this chapter shall be deposited by the treasurer of state in a separate
account to be known as the securities division enforcement account.
Notwithstanding IC 9-23-6-4, IC 23-2-2.5-34, IC 23-2-2.5-43,
IC 23-2-5-7, IC 23-19-4-12, IC 25-11-1-15, and this chapter, five
percent (5%) of funds received after June 30, 2010, for deposit in the
enforcement account shall instead be deposited in the securities
restitution fund established by IC 23-20-1-25. Subject to IC 4-2-6-15,
the funds deposited in the enforcement account shall be available, with
the approval of the budget agency:
(1) to augment and supplement the funds appropriated for the
administration of this article; and
(2) for grants and awards to nonprofit entities for programs and
activities that will further investor education and financial literacy
in the state.
The funds in the enforcement account do not revert to the state general
fund at the end of any state fiscal year.
(g) In connection with the administration and enforcement of this
article, the attorney general shall render all necessary assistance to the
commissioner upon the commissioner's request, and to that end, the
attorney general shall employ legal and other professional services as
are necessary to adequately and fully perform the service under the
direction of the commissioner as the demands of the securities division
shall require. Expenses incurred by the attorney general for the
purposes stated in this subsection shall be chargeable against and paid
out of funds appropriated to the attorney general for the administration
of the attorney general's office. The attorney general may authorize the
commissioner and the commissioner's designee to represent the
commissioner and the securities division in any proceeding involving
enforcement or defense of this article.
(h) Neither the secretary of state, the commissioner, nor an
employee of the securities division shall be liable in their individual
capacity, except to the state, for an act done or omitted in connection
with the performance of their respective duties under this article.
(i) The commissioner shall take, prescribe, and file the oath of office
prescribed by law. The commissioner, chief deputy commissioner, and
each attorney or investigator designated by the commissioner are police
officers of the state and shall have all the powers and duties of police
officers in making arrests for violations of this article, or in serving any
process, notice, or order connected with the enforcement of this article
by whatever officer, authority, or court issued and shall comprise the
enforcement department of the division and are considered a criminal
justice agency for purposes of IC 5-2-4 and IC 10-13-3.
(j) The provisions of this article delegating and granting power to
the secretary of state, the securities division, and the commissioner
shall be liberally construed to the end that:
(1) the practice or commission of fraud may be prohibited and
prevented;
(2) disclosure of sufficient and reliable information in order to
afford reasonable opportunity for the exercise of independent
judgment of the persons involved may be assured; and
(3) the qualifications may be prescribed to assure availability of
reliable broker-dealers, investment advisers, and agents engaged
in and in connection with the issuance, barter, sale, purchase,
transfer, or disposition of securities in this state.
It is the intent and purpose of this article to delegate and grant to and
vest in the secretary of state, the securities division, and the
commissioner full and complete power to carry into effect and
accomplish the purpose of this article and to charge them with full and
complete responsibility for its effective administration.
(k) Copies of any statement and documents filed in the office of the
secretary of state and of any records of the secretary of state certified
by the commissioner shall be admissible in any prosecution, action,
suit, or proceeding based upon, arising out of, or under this article to
the same effect as the original of such statement, document, or record
would be if actually produced.
(l) IC 4-21.5 is not applicable to any of the proceedings under this
article.
(1) A person that holds a special event permit issued under
(2) The buying, selling, or trading of a motor vehicle that is a motorcycle (as defined in IC 9-13-2-108).
(b) A person who engages in the business of buying, selling, or trading motor vehicles on Sunday commits a Class B misdemeanor.
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 15. (a) A reasonable
number of attempts is considered to have been undertaken to correct a
nonconformity if:
(1) the nonconformity has been subject to repair at least four (4)
times by the manufacturer or its agents or authorized dealers, but
the nonconformity continues to exist; or
(2) the vehicle is out of service by reason of repair of any
nonconformity for a cumulative total of at least thirty (30)
business days, and the nonconformity continues to exist.
(b) The thirty (30) business day period in subsection (a)(2) shall be
extended by any period of time during which repair services are not
available as a direct result of a strike, a period of civil unrest, a fire,
a natural disaster, a terrorist attack, an act of God, or an act of
war. The manufacturer, its agent, or an authorized dealer shall provide
or make provision for the free use of a vehicle to any buyer whose
vehicle is out of service by reason of repair during a strike, a period of
civil unrest, a fire, a natural disaster, a terrorist attack, an act of
God, or an act of war.
(c) The burden is on the manufacturer to show that the reason for an
extension under subsection (b) was the direct cause for the failure of
the manufacturer, its agent, or authorized dealer to cure any
nonconformity during the time of the event.
IC 9-14-3.5-15 (Concerning bureau of motor vehicles).
IC 9-14-5-9 (Concerning parking placards for persons with physical disabilities).
IC 9-17-2-15 (Concerning certificates of title).
IC 9-17-2-16 (Concerning certificates of title).
IC 9-17-3-3.2 (Concerning certificates of title).
IC 9-17-3-7 (Concerning certificates of title).
IC 9-17-4-6 (Concerning certificates of title).
IC 9-18-2-42 (Concerning motor vehicle registration and license plates).
IC 9-18-2-44 (Concerning motor vehicle registration and license
plates).
IC 9-18-2-45 (Concerning motor vehicle registration and license
plates).
IC 9-18-4-8 (Concerning motor vehicle registration and license
plates).
IC 9-18-8-11 (Concerning motor vehicle registration and license
plates).
IC 9-18-8-12 (Concerning motor vehicle registration and license
plates).
IC 9-18-8-13 (Concerning motor vehicle registration and license
plates).
IC 9-18-8-14 (Concerning motor vehicle registration and license
plates).
IC 9-18-8-15 (Concerning motor vehicle registration and license
plates).
IC 9-18-13-9 (Concerning motor vehicle registration and license
plates).
IC 9-18-22-6 (Concerning motor vehicle registration and license
plates).
IC 9-18-26-11 (Concerning motor vehicle registration and license
plates).
IC 9-18-26-13 (Concerning motor vehicle registration and license
plates).
IC 9-18-27-9 (Concerning motor vehicle registration and license
plates).
IC 9-19-9-5 (Concerning motor vehicle equipment).
IC 9-19-10.5-4 (Concerning motor vehicle equipment).
IC 9-19-10.5-5 (Concerning motor vehicle equipment).
IC 9-20-18-4 (Concerning motor vehicle size and weight
regulation).
IC 9-21-5-13 (Concerning traffic regulation).
IC 9-21-6-3 (Concerning traffic regulation).
IC 9-21-8-50 (Concerning traffic regulation).
IC 9-21-8-52 (Concerning traffic regulation).
IC 9-21-8-55 (Concerning traffic regulation).
IC 9-21-8-56 (Concerning traffic regulation).
IC 9-21-8-58 (Concerning traffic regulation).
IC 9-21-12-9 (Concerning traffic regulation).
IC 9-21-12-11 (Concerning traffic regulation).
IC 9-22-1-21.5 (Concerning liens for vehicles).
IC 9-22-3-31 (Concerning abandoned, salvaged, and scrap
vehicles).
IC 9-22-3-32 (Concerning abandoned, salvaged, and scrap vehicles).
IC 9-22-3-33 (Concerning abandoned, salvaged, and scrap vehicles).
IC 9-22-5-18.2 (Concerning buying a motor vehicle without a certificate of title).
IC 9-22-6-3 (Concerning mechanic's liens for vehicles).
IC 9-24-1-8 (Concerning driver's licenses).
IC 9-24-6-16 (Concerning driver's licenses).
IC 9-24-6-17 (Concerning driver's licenses).
IC 9-24-11-8 (Concerning driver's licenses).
IC 9-24-15-11 (Concerning driver's licenses).
IC 9-24-16-12 (Concerning driver's licenses).
IC 9-24-16-13 (Concerning driver's licenses).
IC 9-24-18-1 (Concerning driver's licenses).
IC 9-24-18-2 (Concerning driver's licenses).
IC 9-24-18-7 (Concerning driver's licenses).
IC 9-24-19-2 (Concerning driver's licenses).
IC 9-24-19-3 (Concerning driver's licenses).
IC 9-24-19-4 (Concerning driver's licenses).
IC 9-25-6-18 (Concerning financial responsibility).
IC 9-25-8-2 (Concerning financial responsibility).
IC 9-26-1-8 (Concerning accidents and accident reports).
IC 9-26-1-9 (Concerning accidents and accident reports).
IC 9-26-6-4 (Concerning accidents and accident reports).
IC 9-30-4-7 (Concerning licenses and registrations).
IC 9-30-4-8 (Concerning licenses and registrations).
IC 9-30-4-13 (Concerning licenses and registrations).
IC 9-30-5-1 (Concerning operating a vehicle while intoxicated).
IC 9-30-5-2 (Concerning operating a vehicle while intoxicated).
IC 9-30-5-3 (Concerning operating a vehicle while intoxicated).
IC 9-30-5-4 (Concerning operating a vehicle while intoxicated).
IC 9-30-5-5 (Concerning operating a vehicle while intoxicated).
IC 9-30-5-7 (Concerning operating a vehicle while intoxicated).
IC 9-30-5-8 (Concerning operating a vehicle while intoxicated).
IC 9-30-6-8.7 (Concerning implied consent).
IC 9-30-9-7.5 (Concerning alcohol abuse deterrent programs).
IC 9-30-10-16 (Concerning habitual violator of traffic laws).
IC 9-30-10-17 (Concerning habitual violator of traffic laws).
IC 9-30-10-17.5 (Concerning habitual violator of traffic laws).
IC 9-31-2-26 (Concerning watercraft titling and registration).
IC 9-31-2-27 (Concerning watercraft titling and registration).
IC 9-31-2-28 (Concerning watercraft titling and registration).
IC 9-32-17-2 (Concerning certificates of title).
IC 9-32-17-3 (Concerning dealer license plates).
IC 9-32-17-4 (Concerning licensing of vehicle salvaging).
IC 9-32-17-5 (Concerning regulation of vehicle merchandising).
IC 9-32-17-6 (Concerning unfair practices by dealers).
(b) This SECTION expires December 31, 2014.
(b) In repealing IC 9-23-2 by SEA 537-2013, the general assembly recognizes that IC 9-23-2-4 was amended by SEA 85-2013, SECTION 37. The general assembly intends to repeal IC 9-23-2-4.
(c) This SECTION expires December 31, 2013.
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