HCSHB894--MOTORVEHICLES(Knight)
COMMITTEEOFORIGIN:StandingcommitteeonTransportation
Infrastructure.
Thisbillmodifiesprovisionsrelatedtomotorvehicles.
Thebillrequireseverylicensedmotorvehicledealertocollect
andremitsalestaxonallmotorvehiclessold.TheDirectorof
theDepartmentofRevenuemaypromulgaterulesandregulationsfor
theadministration ofthisbill.
Thebillalsorequiresthatusedmotorvehiclesgetaninspection
attheseller'sexpensenomorethan60dayspriortoasale.The
inspectionisnotrequiredforvehicleshavinglessthan40,000
milesforthethree-yearperiodfollowingthemodelyearof
manufacture. Thesellermustpresentthebuyerwiththe
certificateofinspectionandapproval,whomustthensubmitthe
certificateofinspectionwhenapplyingforaregistration.
ThebillmodifiestheMotorVehicleFranchisePracticesAct
(MVFPAct).Itprohibitscertainentitiesfromengaginginthe
businessofsellingmotorvehicles,exceptaspermittedbythe
MVFPAct,andspecifiespartiesthatwillhavestandingtoenforce
theprohibitions.
Compensationforlaborandpartsisbasedonrateschargedbythe
franchiseeratherthanonrateschargedbycomparablefranchisees
inthemarket.
Thebillspecifiesthat,claimsnotdisapprovedbythefranchisor
inwritingwithin30dayswillbeconsideredapprovedandmustbe
paidwithin15days,ratherthanwithin10days.
Lastly,thebillspecifiesproceduresforfranchiseestofile
complaintswiththeAdministrative HearingCommission.
Franchiseesmayfileclaimswithin60days,ratherthan30days,
afterreceivinganadversedecisiononaclaimunderthebill.
Franchisorsshallfileananswertothecomplaintwithin30days,
andahearingwillbeheldwithin60daysoftheanswer.Ifthe
Administrative HearingCommissionfindsafranchisorhasviolated
therequirementsofthewarrantystatute,thefranchisorwill
compensatethefranchiseeasrequiredbylaw.