h_tra_2016a_2016-04-14t11:41:15z1 Hearing Summary

Date: 04/14/2016

12:43 PM -- HB 16-1342



Representative Moreno came to the table to present House Bill 16-1342, which was laid over by the chair on April 7, 2016. The bill requires licensed automobile dealers who sell salvage, non-repairable, flood-damaged, junk, or similarly branded motor vehicles to report each transaction to a third-party data consolidator within two days of the sale. The consolidator must be approved by the National Motor Vehicle Title Information System (NMVTIS) and must forward the report to NMVTIS by the following day. The consolidator may charge the dealer a per-transaction fee.



The report must be maintained electronically by the dealer for three years and must contain the following:



• the motor vehicle's make, model, year, vehicle identification number (VIN), and current odometer reading;

• the name and address of the purchaser and the seller;

• a copy of the purchaser's driver's license or other government-issued identification document; and

• proof of the purchaser's in- or out-of-state automobile dealer license, if applicable.



The consolidator is required to make information received under this section available without charge and upon request to law enforcement, the Department of Revenue (DOR), and, if the DOR approves, a nongovernmental entity.



Any person who violates the reporting requirements under the bill commits an unclassified misdemeanor, punishable by a fine of $500 per transaction, credited to the Auto Dealers License Fund.



In addition, the bill increases penalties for unlicensed automobile sales. Under current law, a person commits a class 3 misdemeanor for selling a motor vehicle without a license. Under the bill, this violation becomes an unclassified misdemeanor with the following penalties on unlicensed motor vehicle dealers, manufacturers, distributors, wholesalers, manufacturer representatives, used motor vehicle dealers, buyer agents, wholesale motor vehicle auction dealers, and motor vehicle salespersons:



• for an individual, a fine of no less than $1,000 and 25 hours of public service, neither of which may be suspended by the court. A second conviction results in a fine ranging from no less than $5,000 to no more than $25,000, neither of which may be suspended by the court; and



• for a corporation, a fine ranging from no less than $5,000 to no more than $25,000 for each separate offense.



Fines for unlicensed automobile sales are awarded half to the law enforcement agency that conducted the investigation and issued the citation and half to the Auto Dealers License Fund.



Representative Moreno described amendment L.011 (Attachment B), a strike-below amendment, to the committee. He then distributed and explained amendment L.016 (Attachment C) to amendment L.011.



160414 AttachB.pdf160414 AttachC.pdf

12:50 PM -- Melissa Kuipers, representing LKQ Corporation, testified in support of the bill. Ms. Kuipers discussed the bill as it would be amended by amendment L.011, and responded to questions. Committee discussion ensued.



12:54 PM



Jery Payne, Office of Legislative Legal Services, came to the table to explain amendment L.014 (Attachment D) to amendment L.011. Discussion ensued.



160414 AttachD.pdf

12:58 PM



Mr. Payne explained amendment L.017 (Attachment E) to amendment L.011 and responded to questions from the committee.





160414 AttachE.pdf

01:01 PM



Ms. Kuipers discussed the bill, as amended, and responded to questions from the committee.



01:07 PM -- Jep Seman, representing Copart, testified in opposition to the bill.

01:09 PM -- Shayne Madsen, representing the Consumer Data Industry Association, testified in opposition to the bill.



01:13 PM



Representative Moreno made his closing comments on the bill. The committee discussed the merits of the bill.

01:23 PM



The committee was adjourned.