45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO MOTOR VEHICLE SALES; RESTRICTING CERTAIN MOTOR VEHICLE DEALER SALES ACTIVITIES; CHANGING CERTAIN PROVISIONS PERTAINING TO SUPPLEMENTAL LICENSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the Motor Vehicle Code is enacted to read:

"[NEW MATERIAL] MOTOR VEHICLE DISPLAY SHOWS.--

A. A dealer of motor vehicles licensed pursuant to the provisions of Chapter 66, Article 4 NMSA 1978 may display motor vehicles for show only and not for sale if:

(1) the dealer is licensed to sell the motor vehicle to be displayed;

(2) the dealer has the written permission of the owner or the person in legal control of the real property upon which the motor vehicle is to be displayed; and

(3) the dealer has given written notice to the department at least three business days prior to the display show and the notice contains:

(a) the dates of the display show;

(b) a copy of the written permission required by Paragraph (2) of this subsection;

(c) a description of the location of the display show in sufficient detail to allow the division to locate the display show, provided that a legal description of the property shall not be required; and

(d) the dealer's license number.

B. No dealer shall consummate or attempt to consummate the sale of a motor vehicle at a display show.

C. No dealership personnel or person acting in the dealership's interest shall be present at the display show unless the display show consists of recreational vehicles or manufactured housing only, except that any such person that is necessary to move or service a motor vehicle may be present as long as necessary to perform those functions.

D. A sale of a motor vehicle by a dealer at a display show shall be void. For the purpose of this subsection, the place of sale of a motor vehicle is the physical place of the buyer when signing a document binding or purporting to bind the buyer to the purchase of the vehicle, whether or not that document is superseded by a subsequent agreement."

Section 2. Section 66-4-2 NMSA 1978 (being Laws 1978, Chapter 35, Section 215, as amended) is amended to read:

"66-4-2. DEPARTMENT TO ISSUE LICENSE.--

A. The department, upon receiving application accompanied by the required fee and when satisfied that the applicant is of good character and, so far as can be ascertained, has complied with and will comply with the laws of this state with reference to the registration of vehicles and certificates of title and the provisions of the Motor Vehicle Code, shall issue to the applicant a license [which] that entitles the licensee to carry on and conduct the business of a dealer, wrecker of vehicles or title service company, as the case may be, during the period for which the license is issued. The license shall expire on the last day of the period for which it is issued and may be renewed upon application and payment of the fee required by law.

[B. Any dealer or wrecker of vehicles licensee, before moving any one or more of the licensee's places of business or opening any additional place of business, shall apply to the department for and obtain a supplemental license for which no fee shall be charged. No supplemental license shall be issued to a dealer, other than a dealer in motorcycles, for an additional place of business unless:

(1) the place of business is an established place of business; or

(2) the majority of dealers, other than dealers in motorcycles, in the county in which the proposed additional place of business would be located have been offered the opportunity, in documentation acceptable to the department, to offer vehicles for sale at the proposed additional place of business by the applicant; provided that the offer shall be for sale of vehicles at all times at which the applicant proposes to sell vehicles and shall not be conditioned upon the payment of any fee by any dealer to whom it is addressed greater than a fair share of the actual expenses incurred.]

B. A dealer's license shall entitle the licensee to sell only vehicles for which the title or manufacturer's certificate of origin has been assigned to that dealer. No dealer shall sell or offer for sale, except as otherwise provided in this section, a motor vehicle at a location other than the established place of business for which he is licensed. A licensed motor vehicle dealer shall not consign with another licensed motor vehicle dealer more than five motor vehicles at one time. In a twelve-month period, a dealer shall not purchase more than five vehicles from another dealer after buying the same vehicles from that same dealer unless there has been a bona fide intermediate owner other than a motor vehicle dealer. Nothing in this subsection shall prohibit a dealer from selling a motor vehicle on consignment for a financial institution after the vehicle has been repossessed or at a bona fide auction sale at which only licensed dealers may purchase a motor vehicle. Nothing in this subsection shall prohibit a dealer whose principal business is conducting auction sales of motor vehicles from conducting bona fide auction sales at a fixed and permanent facility.

C. If a licensed dealer elects to move one or more of his places of business or open an additional place of business because his established place of business has been or will be obstructed or impeded by a temporary physical condition, including street construction, the licensed dealer shall apply for and obtain a supplemental license from the division, for which no fee shall be charged. The supplemental license shall be issued for a period of time not to exceed the period of time when the licensed dealer's established place of business is anticipated to be obstructed or impeded by a temporary physical condition.

[C.] D. [Any] A person to whom the department has issued a license to conduct the business of a dealer in motorcycles is deemed a wrecker of motorcycles without additional license.

[D.] E. The department is authorized to establish a staggered system for licensing of dealers, wholesalers, distributors and wreckers of vehicles and of title service companies, provided that [any] a license issued shall expire on the last day of a month. During the initial adjustment period of July 1, 1999 through December 31, 2000, the department may issue licenses for periods less than twelve months or up to twenty-one months to establish a more uniform monthly pattern of expirations. For [any] a license issued for a period other than twelve months during the initial adjustment period, the fee imposed pursuant to Section 66-6-18 NMSA 1978 shall be adjusted accordingly. After the initial adjustment period, licenses issued shall be issued for a period of twelve months."

Section 3. TEMPORARY PROVISION.--A dealer of motor vehicles operating an established place of business with a supplemental license issued under the provisions of Section 66-4-2 NMSA 1978 in effect on December 1, 2000 and continuing to operate that additional established place of business under a supplemental license as of March 1, 2001 may continue to operate at that additional established place of business through December 31, 2004, provided the dealer's license is timely renewed on an annual basis and [that] the dealer's license has not been canceled, revoked or suspended by the motor vehicle division of the taxation and revenue department.

Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2001.