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SENATE BILL No. 117

Citations Affected: IC 9-23.

Synopsis: Vehicle sales and purchases. Provides that it is an unfair practice for a vehicle manufacturer or distributor to enter into an agreement in which a vehicle dealer is required to waive certain provisions dealing with unfair practices in the vehicle sales profession or franchise practices. Establishes an exception for voluntary agreements in which separate consideration is offered and accepted. Exempts certain persons that buy or sell motor vehicles from the requirement of maintaining a bond satisfactory to the secretary of state.

Effective: July 1, 2010.

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Head , Alting, Deig
(HOUSE SPONSORS _ AUSTIN, SAUNDERS)

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    January 5, 2010, read first time and referred to Committee on Commerce, Public Policy & Interstate Cooperation.
    January 28, 2010, amended, reported favorably _ Do Pass.
    February 1, 2010, read second time, amended, ordered engrossed.
    February 2, 2010, engrossed. Read third time, passed. Yeas 50, nays 0.

    February 8, 2010, read first time and referred to Committee on Courts and Criminal Code.
    February 18, 2010, reported _ Do Pass.
    February 22, 2010, read second time, amended, ordered engrossed.

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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 this style type.
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 this style type reconciles conflicts between statutes enacted by the 2009 Regular and Special Sessions of the General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning motor vehicles.

SOURCE: IC 9-23-2-2; (10)ES0117.2.1. -->     SECTION 1. IC 9-23-2-2, AS AMENDED BY P.L.147-2009, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 2. (a) An application for a license under this chapter must:
        (1) be accompanied by the fee required under IC 9-29-8;
        (2) be on a form prescribed by the secretary of state;
        (3) contain the information the secretary of state considers necessary to enable the secretary of state to determine fully the following information:
            (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.
            (C) The ability of the applicant to conduct properly the business for which the application is submitted; and
        (4) contain evidence of the a bond required in subsection (e).
    (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 other computer network in aid of its sale of motor vehicles to consumers in Indiana, which activities may result in the creation of business records outside Indiana, shall provide the division with the name, address, and telephone number of the person who has control of those business records. The secretary of state may not issue a license to a dealer who transacts business in this manner who does not have an established place of business in Indiana.
    (d) This subsection applies to an application for a license as a dealer in a city having a population of more than ninety thousand (90,000) but less than one hundred five thousand (105,000). The application must include 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 applicant may file the affidavit at any time after the filing of the application. However, the secretary of state may not issue a license until the applicant files the affidavit.
    (e) This subsection does not apply to a person listed in the categories set forth in section 1(a)(10) through 1(a)(12) of this chapter and that was licensed under this chapter before July 1, 2009. A licensee shall maintain a bond satisfactory to the secretary of state in the amount of twenty-five thousand dollars ($25,000), which must:
        (1) be in favor of the state; and
        (2) secure payment of fines, penalties, costs, and fees assessed by the secretary of state after notice, opportunity for a hearing, and 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 shall be made in accordance with the Indiana Rules of Trial Procedure.

SOURCE: IC 9-23-3-7; (10)ES0117.2.2. -->     SECTION 2. IC 9-23-3-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 7. (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:

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        (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.