HOUSE BILL 468

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

William "Bill" R. Rehm

AN ACT

RELATING TO MOTOR VEHICLES; PROVIDING FOR CIVIL PENALTIES FOR NONCOMPLIANT MOTOR VEHICLE DEALERS; RECONCILING MULTIPLE AMENDMENTS TO THE SAME SECTION OF LAW IN LAWS 2005.

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

     SECTION 1. Section 66-4-1 NMSA 1978 (being Laws 1978, Chapter 35, Section 214, as amended by Laws 2005, Chapter 324, Section 12 and by Laws 2005, Chapter 325, Section 23) is amended to read:

     "66-4-1. DEALERS, WHOLESALERS AND DISTRIBUTORS OF VEHICLES AND TITLE SERVICE COMPANIES MUST BE LICENSED--PRESUMPTION OF CONDUCTING BUSINESS.--

          A. A person, unless licensed to do so by the department, shall not carry on or conduct the active trade or business of:

                (1) a dealer in motor vehicles of a type subject to registration pursuant to the Motor Vehicle Code, including:

                     (a) trailers, but not trailers sold as kits;

                     (b) recreational vehicles designed to be towed;

                     (c) motorcycles over fifty-five cubic centimeters; and

                     (d) off-highway motor vehicles pursuant to the Off-Highway Motor Vehicle Act;

                (2) wholesaling of vehicles. Any person who sells or offers for sale vehicles of a type subject to registration in this state to a vehicle dealer licensed pursuant to the Motor Vehicle Code or who is franchised by

a manufacturer, distributor or vehicle dealer to sell or promote the sale of vehicles dealt in by such manufacturer, distributor or vehicle dealer shall be presumed to be conducting the business of wholesaling;

                (3) distributing of vehicles. Any person who distributes or sells new or used motor vehicles to dealers and who is not a manufacturer shall be presumed to be conducting the business of distributing vehicles; or

                (4) a title service company. Any person who for consideration prepares or submits applications for the registration of or title to vehicles shall be presumed to be engaging in the business of a title service company.

          B. Application for a dealer, wholesaler, distributor or title service company license shall be made upon the form prescribed by the department and shall contain, when the applicant is an individual, the name and address of the applicant [and]; when the applicant is a partnership, the name and address of each partner; or, when the applicant is a corporation, the names of the principal officers of the corporation and the state in which incorporated [and]; the place where the business is to be conducted [and]; the nature of the business; and such other information as may be required by the department. Every application shall be verified by the oath or affirmation of the applicant, if an individual, or, in the event an applicant is a partnership or corporation, by a partner or officer of the partnership or corporation. Every application shall be accompanied by the fee required by law.

          C. To ensure that a dealer, wholesaler, distributor or title service company complies with this section, the secretary may apply to a district court of this state to have a person operating without a license as required by this section or operating without the bond required by Section 66-4-7 NMSA 1978 enjoined from engaging in business until that person complies with the requirements of licensing as provided by this section and the bonding requirements of Section 66-4-7 NMSA 1978."

     SECTION 2. Section 66-4-9 NMSA 1978 (being Laws 1978, Chapter 35, Section 222) is amended to read:

     "66-4-9. PENALTY FOR DESTROYING OR DISMANTLING IN VIOLATION OF [THE ACT] CERTAIN SECTIONS--PENALTY FOR NONCOMPLIANT MOTOR VEHICLE DEALERS.--

          A. Any person violating any provision of Sections [64-3-119 and 64-3-121, 64-3-123 through 64-3-125 and 64-4-1 through 64-4-9 NMSA 1953] 66-3-119, 66-3-121, 66-3-123 through 66-3-125, 66-4-1.1 and 66-4-3 through 66-4-9 NMSA 1978 is guilty of a misdemeanor and shall be punished by a fine of three hundred dollars ($300) or by imprisonment for not less than thirty days or both.

          B. The penalty upon a second or subsequent conviction of [such offense shall be] a provision of a section of law identified in Subsection A of this section is that provided for a fourth degree felony.

          C. Any person violating any provision of Section 66-4-1 NMSA 1978 is guilty of a misdemeanor and shall be punished by imprisonment for not less than thirty days or by a fine of:

                (1) one thousand dollars ($1,000) for a first conviction, or both the fine and imprisonment;

                (2) two thousand five hundred dollars ($2,500) for a second conviction, or both the fine and imprisonment;

                (3) five thousand dollars ($5,000) for a third conviction, or both the fine and imprisonment; and

                (4) ten thousand dollars ($10,000) for a fourth or subsequent conviction, or both the fine and imprisonment.

          D. Any person violating any provision of Section 66-4-2.1 or 66-4-2.2 NMSA 1978 is guilty of a misdemeanor and shall be punished by imprisonment for not less than thirty days or by a fine of ten thousand dollars ($10,000), or both."

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