41-3-202.  Licenses — Classes and scope.

(1)  A new motor vehicle dealer‘s license permits the licensee to:

Terms Used In Utah Code 41-3-202

  • Administrator: means the motor vehicle enforcement administrator. See Utah Code 41-3-102
  • Auction: means a dealer engaged in the business of auctioning motor vehicles, either owned or consigned, to the general public. See Utah Code 41-3-102
  • Body shop: means a person engaged in rebuilding, restoring, repairing, or painting the body of motor vehicles for compensation. See Utah Code 41-3-102
  • Crusher: means a person who crushes or shreds motor vehicles subject to registration under Chapter 1a, Motor Vehicle Act, to reduce the useable materials and metals to a more compact size for recycling. 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
  • Direct-sale manufacturer salesperson: means an individual who for a salary, commission, or compensation of any kind, is employed either directly, indirectly, regularly, or occasionally by a direct-sale manufacturer to sell, purchase, or exchange or to negotiate for the sale, purchase, or exchange of a motor vehicle manufactured by the direct-sale manufacturer who employs the individual. See Utah Code 41-3-102
  • Dismantler: includes a person who dismantles three or more motor vehicles in any 12-month period. See Utah Code 41-3-102
  • Distributor: means a person who has a franchise from a manufacturer of motor vehicles to distribute motor vehicles within this state and who in whole or in part sells or distributes new motor vehicles to dealers or who maintains distributor representatives. See Utah Code 41-3-102
  • Distributor branch: means a branch office similarly maintained by a distributor for the same purposes a factory branch is maintained. 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
  • Factory branch: means a branch office maintained by a person who manufactures or assembles motor vehicles for sale to distributors, motor vehicle dealers, or who directs or supervises the factory branch's representatives. 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
  • Line-make: means motor vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the manufacturer. See Utah Code 41-3-102
  • Manufacturer: means a person engaged in the business of constructing or assembling new motor vehicles, ownership of which is customarily transferred by a manufacturer's statement or certificate of origin, or a person who constructs three or more new motor vehicles in any 12-month period. 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
  • Motorcycle: means the same as that term is defined in Section 41-1a-102. 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
  • Off-highway vehicle: means the same as that term is defined in Section 41-22-2. See Utah Code 41-3-102
  • Remanufacturer: means a person who reconstructs used motor vehicles subject to registration under Chapter 1a, Motor Vehicle Act, to change the body style and appearance of the motor vehicle or who constructs or assembles motor vehicles from used or new and used motor vehicle parts, or who reconstructs, constructs, or assembles three or more motor vehicles in any 12-month period. See Utah Code 41-3-102
  • Salesperson: means an individual who for a salary, commission, or compensation of any kind, is employed either directly, indirectly, regularly, or occasionally by any new motor vehicle dealer or used motor vehicle dealer to sell, purchase, or exchange or to negotiate for the sale, purchase, or exchange of motor vehicles. See Utah Code 41-3-102
  • Small trailer: means a trailer that has an unladen weight of:
    (a) more than 750 pounds; and
    (b) less than 2,000 pounds. See Utah Code 41-3-102
  • Special equipment: includes a truck mounted crane, cherry picker, material lift, post hole digger, and a utility or service body. See Utah Code 41-3-102
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Trailer: means the same as that term is defined in Section 41-1a-102. See Utah Code 41-3-102
  • Transporter: means a person engaged in the business of transporting motor vehicles as described in Section 41-3-202. 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
  • Wholesale motor vehicle auction: means a dealer primarily engaged in the business of auctioning consigned motor vehicles to dealers or dismantlers who are licensed by this or any other jurisdiction. See Utah Code 41-3-102
  • (a)  offer for sale, sell, or exchange new motor vehicles if the licensee possesses a franchise from the manufacturer of the motor vehicle offered for sale, sold, or exchanged by the licensee;

    (b)  offer for sale, sell, or exchange used motor vehicles;

    (c)  operate as a body shop; and

    (d)  dismantle motor vehicles.
  • (2)  A used motor vehicle dealer’s license permits the licensee to:

    (a)  offer for sale, sell, or exchange used motor vehicles;

    (b)  operate as a body shop; and

    (c)  dismantle motor vehicles.

    (3)  A direct-sale manufacturer‘s license permits the licensee to:

    (a)  offer for sale, sell, or exchange new motor vehicles of the same line-make that the direct-sale manufacturer manufactures;

    (b)  offer for sale, sell, or exchange used motor vehicles;

    (c)  operate as a body shop; and

    (d)  dismantle motor vehicles.

    (4)  A new motorcycle, off-highway vehicle, and small trailer dealer’s license permits the licensee to:

    (a)  offer for sale, sell, or exchange new motorcycles, off-highway vehicles, or small trailers if the licensee possesses a franchise from the manufacturer of the motorcycle, off-highway vehicle, or small trailer offered for sale, sold, or exchanged by the licensee;

    (b)  offer for sale, sell, or exchange used motorcycles, off-highway vehicles, or small trailers; and

    (c)  dismantle motorcycles, off-highway vehicles, or small trailers.

    (5)  A used motorcycle, off-highway vehicle, and small trailer dealer’s license permits the licensee to:

    (a)  offer for sale, sell, or exchange used motorcycles, off-highway vehicles, and small trailers; and

    (b)  dismantle motorcycles, off-highway vehicles, or small trailers.

    (6) 

    (a)  Except as provided in Subsection (6)(b), a salesperson‘s license permits the licensee to act as a motor vehicle salesperson and is valid for employment with only one dealer at a time.

    (b)  A licensee that has been issued a salesperson’s license and that is employed by a dealer that operates as a wholesale motor vehicle auction may be employed by more than one dealer that operates as a wholesale motor vehicle auction at a time.

    (7) 

    (a)  A direct-sale manufacturer salesperson‘s license permits the licensee to act as a direct-sale manufacturer salesperson for one direct-sales manufacturer.

    (b)  A direct-sale manufacturer salesperson licensee may not simultaneously hold a salesperson’s license.

    (8) 

    (a)  A manufacturer’s license permits the licensee to construct or assemble motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, at an established place of business and to remanufacture motor vehicles.

    (b)  Under rules the administrator makes, the licensee may issue and install vehicle identification numbers on manufactured motor vehicles.

    (c)  The licensee may franchise and appoint dealers to sell manufactured motor vehicles by notifying the division of the franchise or appointment.

    (9) 

    (a)  A transporter‘s license permits the licensee to transport or deliver motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, from a manufacturing, assembling, or distributing point or from a dealer, to dealers, distributors, or sales agents of a manufacturer or remanufacturer, to or from detail or repair shops, and to financial institutions or places of storage from points of repossession.

    (b)  The division may not issue or renew a transporter license to an applicant who is not:

    (i)  licensed under this chapter as a body shop;

    (ii)  a detail or repair shop;

    (iii)  a tow truck motor carrier subject to Title 72, Chapter 9, Motor Carrier Safety Act;

    (iv)  a repossession company;

    (v)  licensed under this chapter as a dealer; or

    (vi)  a finance company.

    (c)  The division may not issue or renew a transporter license unless the applicant provides proof of insurance or other form of security meeting the minimum requirements of Title 41, Chapter 12a, Financial Responsibility of Motor Vehicle Owners and Operators Act.

    (10)  A dismantler‘s license permits the licensee to dismantle motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, for the purpose of reselling parts or for salvage, or selling dismantled or salvage vehicles to a crusher or other dismantler.

    (11)  A distributor or factory branch and distributor branch‘s license permits the licensee to sell and distribute new motor vehicles, parts, and accessories to their franchised dealers.

    (12)  A representative’s license, for factory representatives or distributor representatives permits the licensee to contact the licensee’s authorized dealers for the purpose of making or promoting the sale of motor vehicles, parts, and accessories.

    (13) 

    (a) 

    (i)  A remanufacturer’s license permits the licensee to construct, reconstruct, assemble, or reassemble motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, from used or new motor vehicles or parts.

    (ii)  Evidence of ownership of parts and motor vehicles used in remanufacture shall be available to the division upon demand.

    (b)  Under rules the administrator makes, the licensee may issue and install vehicle identification numbers on remanufactured motor vehicles.

    (14)  A crusher’s license permits the licensee to engage in the business of crushing or shredding motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, for the purpose of reducing the useable materials and metals to a more compact size for recycling.

    (15)  A body shop’s license permits the licensee:

    (a)  to rebuild, restore, repair, or paint the body of motor vehicles; and

    (b)  to dismantle motor vehicles.

    (16)  A special equipment dealer’s license permits the licensee to:

    (a)  buy incomplete new motor vehicles with a gross vehicle weight of 12,000 or more pounds from a new motor vehicle dealer and sell the new vehicle with the special equipment installed without a franchise from the manufacturer;

    (b)  offer for sale, sell, or exchange used motor vehicles;

    (c)  operate as a body shop; and

    (d)  dismantle motor vehicles.

    (17) 

    (a)  A salvage vehicle buyer license permits the licensee to bid on or purchase a vehicle with a salvage certificate as defined in Section 41-1a-1001 at any motor vehicle auction.

    (b)  The division may only issue a salvage vehicle buyer license to a motor vehicle dealer, dismantler, or body shop who qualifies under rules made by the division and is licensed in any state as a motor vehicle dealer, dismantler, or body shop.

    (c)  The division may not issue more than two salvage vehicle buyer licenses to any one dealer, dismantler, or body shop.

    (d)  In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the administrator shall make rules establishing qualifications of an applicant for a salvage vehicle buyer license. The criteria shall include:

    (i)  business history;

    (ii)  salvage vehicle qualifications;

    (iii)  ability to properly handle and dispose of environmental hazardous materials associated with salvage vehicles; and

    (iv)  record in demonstrating compliance with the provisions of this chapter.

    Amended by Chapter 424, 2019 General Session