41-3-201.7.  Supplemental license for additional place of business restrictions — Exception.

(1) 

Terms Used In Utah Code 41-3-201.7

  • Administrator: means the motor vehicle enforcement administrator. See Utah Code 41-3-102
  • Dealer: includes a representative or consignee of any dealer. See Utah Code 41-3-102
  • Direct-sale manufacturer: means a person:
(a) that is both a manufacturer and a dealer;
(b) that is:
(i) an electric vehicle manufacturer; or
(ii) a low-volume manufacturer;
(c) that is not a franchise holder;
(d) that is domiciled in the United States; and
(e) whose chief officers direct, control, and coordinate the person's activities as a direct-sale manufacturer from a physical location in the United States. See Utah Code 41-3-102
  • Division: means the Motor Vehicle Enforcement Division created in Section 41-3-104. See Utah Code 41-3-102
  • Franchise: includes a contract or agreement described in Subsection (20)(a) regardless of whether the contract or agreement is subject to Title 13, Chapter 14, New Automobile Franchise Act, Title 13, Chapter 35, Powersport Vehicle Franchise Act, or neither. See Utah Code 41-3-102
  • Motor vehicle: means a vehicle that is:
    (i) self-propelled;
    (ii) a trailer;
    (iii) a travel trailer;
    (iv) a semitrailer;
    (v) an off-highway vehicle; or
    (vi) a small trailer. See Utah Code 41-3-102
  • New motor vehicle: means a motor vehicle that:
    (a) has never been titled or registered; and
    (b) for a motor vehicle that is not a trailer, travel trailer, or semitrailer, has been driven less than 7,500 miles. See Utah Code 41-3-102
  • Principal place of business: means a site or location in this state:
    (i) devoted exclusively to the business for which the dealer, manufacturer, remanufacturer, transporter, dismantler, crusher, or body shop is licensed, and businesses incidental to them;
    (ii) sufficiently bounded by fence, chain, posts, or otherwise marked to definitely indicate the boundary and to admit a definite description with space adequate to permit the display of three or more new, or new and used, or used motor vehicles and sufficient parking for the public; and
    (iii) that includes a permanent enclosed building or structure large enough to accommodate the office of the establishment and to provide a safe place to keep the books and other records of the business, at which the principal portion of the business is conducted and the books and records kept and maintained. See Utah Code 41-3-102
  • Used motor vehicle: means a vehicle that:
    (a) has been titled and registered to a purchaser other than a dealer; or
    (b) for a motor vehicle that is not a trailer, travel trailer, or semitrailer, has been driven 7,500 or more miles. See Utah Code 41-3-102
    (a)  Subject to the requirements of Subsection (2), the administrator may issue a supplemental license for an additional place of business under Subsection 41-3-201(8) to a dealer if the dealer is:

    (i)  licensed in accordance with Section 41-3-202;

    (ii)  bonded in accordance with Section 41-3-205; and

    (iii)  in compliance with existing rules promulgated by the administrator of the division under Section 41-3-105.

    (b)  The administrator may issue a supplemental license for a permanent additional place of business to a used motor vehicle dealer if:

    (i)  the dealer independently satisfies the bond requirements under Section 41-3-205 for the permanent additional place of business;

    (ii)  the dealer is in compliance with existing rules promulgated by the administrator of the division under Section 41-3-105; and

    (iii)  the permanent additional place of business meets all the requirements for a principal place of business.
  • (2) 

    (a)  Except as provided in Subsections (2)(c) and (3), a supplemental license for an additional place of business issued pursuant to Subsection 41-3-201(8) for a new motor vehicle dealer may not be issued for an additional place of business that is beyond the geographic specifications outlined as the area of responsibility in the dealer’s franchise agreement.

    (b)  A new motor vehicle dealer shall provide the administrator with a copy of the portion of the new motor vehicle dealer’s franchise agreement identifying the dealer’s area of responsibility before being issued a supplemental license for an additional place of business.

    (c)  The restrictions under Subsections (2)(a) and (b) do not apply to a new motor vehicle dealer if:

    (i)  the license for an additional place of business is being issued for the sale of used motor vehicles; or

    (ii)  the dealer is a direct-sale manufacturer.

    (3)  The provisions of Subsection (2) do not apply if the additional place of business is a trade show or exhibition if:

    (a)  there are five or more dealers participating in the trade show or exhibition; and

    (b)  the trade show or exhibition takes place at a location other than the principal place of business of one of the dealers participating in the trade show or exhibition.

    (4)  A supplemental license for a temporary additional place of business issued to a used motor vehicle dealer may not be for longer than 10 consecutive days.

    Amended by Chapter 387, 2018 General Session