Senate, March 5, 2012 – Recommended new draft reported from the Senate Committee on Ways and Means to further regulate business practices between motor vehicle dealers, manufacturers, and distributors (Senate, No. 1975)
|Status:||Referred to House Committee on Bills in the Third Reading|
|3/5/2012||Senate||Reported from the committee on Senate Ways and Means|
|3/5/2012||Senate||Recommended new draft of S1975|
|3/5/2012||Senate||Order relative to subject matter adopted|
|3/5/2012||Senate||Placed in the Orders of the Day for Thursday, March 8, 2012|
|3/8/2012||Senate||Motion to lay on the table pending and postponed to the next session|
|3/29/2012||Senate||Motion to lay on the table negatived|
|3/29/2012||Senate||Amendment #2 (Timilty) rejected|
|3/29/2012||Senate||SWM amendments adopted, as amended|
|3/29/2012||Senate||Substituted as a new draft for S1975|
|3/29/2012||Senate||Ordered to a third reading|
|3/29/2012||Senate||Read third and passed to be engrossed|
|4/2/2012||House||Referred to the House committee on Ways and Means|
|5/14/2012||House||Committee recommended ought to pass and referred to the House committee on Steering, Policy and Scheduling|
|5/16/2012||House||Committee reported that the matter be placed in the Orders of the Day for the next sitting|
|5/16/2012||House||Read second and ordered to a third reading|
|7/2/2012||House||Read third and passed to be engrossed|
|7/9/2012||Senate||Enacted and laid before the Governor|
|7/18/2012||Senate||Signed by the Governor, Chapter 152 of the Acts of 2012|
FAIR MARKET VALUE
Mr. Keenan moves that the bill be amended in Section 5, by striking paragraph (3), and inserting in its place the following:-
(3) if requested by the dealer within the same 90-day period, repurchase at fair market value the new and used equipment that it sold to the motor vehicle dealer within 3 years from the effective date of termination including, but not limited to, signs, special tools and manuals, which the manufacturer or distributor required the motor vehicle dealer to purchase, the repurchase amount shall include transportation charges assessed on the dealer; provided, however, that the dealer shall have transferred to the manufacturer or distributor full right and legal title to the equipment before their repurchase; and
Education Requirements for Class 2 Motor Vehicle Licenses
Mr. Timilty moves that the bill (S. 2162) be amended by adding at the end thereof the following new Section:-
SECTION X. Section 1. Section 58 of Chapter 140 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after clause (8) of subsection (c) the following:
(9) That such person attends twelve hours of educational training related to the rules, regulations, and laws pertaining to the used car industry which is provided by an organization certified by the office of Consumer Affairs and Business Regulation to provide educational training. The office of Consumer Affairs and Business Regulation shall establish the minimum core curriculum to be presented by certified training organizations and establish a standardized test which shall be administered by all certified educational training organizations to persons attending the educational training. Upon successful completion of the training, and obtaining a passing grade the organization providing the training shall issue a class 2 education certificate to the person. A said Class 2 education certificate shall be developed by the Office of Consumer Affairs and Business Regulation and include on the face a certificate number. All certified training organizations shall record the name and certificate number of all certificates issued to applicants successfully completing the educational training. A municipal licensing authority shall not issue or renew a class 2 license unless a class 2 education certificate is presented to the licensing authority. All class 2 licensees who have successfully obtained a class 2 education certificate shall thereafter annually attend 4 hours of continuing educational training. Class 2 licensees shall be issued a continuing education certificate which shall also be a condition precedent to obtaining a class 2 license.
(10) The dealer’s business is situated within a permanent building or permanently affixed structure, owned or leased by the dealer for the dealer’s exclusive use. Except for a dealer who exchanges vehicles or trailers solely on a wholesale basis, the dealer shall be open to the public. The building, structure, shall have adequate office space to conduct the business and hours of operation shall be posted. If more than one business is located within the same building or structure, the dealer shall maintain a separate and exclusive entrance. Subject to any municipal regulation, ordinance or bylaw, and except for a dealer who exchanges motor vehicles or trailers solely on a wholesale basis, the dealer shall display a permanently affixed exterior sign of sufficient size and design to give the general public notice of the name, telephone number and nature of the business. Except for a dealer who exchanges motor vehicles or trailers solely on a wholesale basis, the dealer shall have an area to display the vehicles offered for sale, which cannot be shared with any other business unless a clear physical separation exists. Vehicles cannot be offered for sale at any other location; however, this shall not prohibit a dealer from transporting and offering vehicles for sale at a recognized automobile auction facility, or a combined dealer special sale event. A municipal licensing authority shall issue only one Class 2 license for a building at a specific street address.
Section 2. Notwithstanding any general or special law to the contrary the Registry of Motor Vehicles is hereby directed to establish a standard application form for applicants for a Class 2 license pursuant to Section 58 of Chapter 140 which shall be utilized by all licensing authorities issuing said Class 2 license. The application shall include, but not be limited to, the name and address of the applicant, the name and address of the motor vehicle dealership, a box to be checked confirming evidence of a $25,000 bond and its certificate number or equivalent certificate of deposit or irrevocable letter of credit, a box to be checked confirming compliance with Class 2 licensee education requirements including the education certificate number, a box to be checked for wholesale dealer which shall include the following text “a checkmark in this box shall prohibit such licensee from selling motor vehicles to the retail public”. The municipal licensing authority shall clearly indicate on the Class 2 license for wholesale only. A Class 2 licensee with a wholesale only license who sells at retail shall be subject to a fine of $5000 payable to the municipal licensing authority and immediate revocation of the Class 2 license by the licensing authority. The municipal licensing authority shall transmit a copy of said completed application to the Registrar of Motor Vehicles and to the Department of Revenue.
Section 3. Section 1 and Section 2 shall become effective on January 1, 2013
Clerk # 3
Mr. Brewer moves to amend the bill (Senate, No. 2162), in line 216, by striking out the words “not more than 180 days” and inserting in place thereof the following words: “not more than 180 days”.
Petitioners: Senate Committee on Ways and Means