2021 Resource & Reference Guidebook

3 Hr Dealer Renewal Class 2021 RESOURCE & REFERENCE GUIDEBOOK PREFERRED PROVIDER FOR THE STATE OF UTAH & THE USED CAR DEALERS OF UTAH

PRESENTED BY: – DEALER LICENSE RESOURCE GUIDE – – DEALER LICENSE RESOURCE GUIDE – Table Of Contents

DEALER LICENSE RESOURCE BOOK TABLE OF CONTENTS TABLE OF CONTENTS IDS DEALER LICENSE EDUCATION PROGRAM WELCOME! ��V COPYRIGHT POLICY & INFRINGEMENT ��VII INDUSTRY RESOURCES & PARTNERS ��VIII PASSED BILLS HB 217 - REGULATORY SANDBOX PROGRAM AMENDMENTS ��1 HB 170 - VEHICLE REGISTRATION RENEWAL NOTICE REQUIREMENTS ��2 2HB 195 - VEHICLE, BOAT, AND TRAILER REGISTRATION AMENDMENTS ��2 4SB 73 - VEHICLE REGISTRATION CHECKOFF AND FEE AMENDMENTS ��3 2SB 78 - MOTOR VEHICLE REPAIR AMENDMENTS ��4 SB 82 - ROAD USAGE CHARGE PROGRAM SPECIAL REVENUE FUND ��7 SB 146 - EMISSIONS TESTING AMENDMENTS ��8 BILLS NOT PASSED DEALERSHIP FEES AMENDMENTS (NO NUMBER) ��8 DEALER DUTIES AND DISCLOSURES ENACTMENTS (NO NUMBER) ��9 OTHER BILLS NOT PASSED ��11 POWERSPORT & MARINE BILLS HB 111 - OFF-HIGHWAY VEHICLE AMENDMENTS ��11 3HB 314 - MOTORBOAT AGREEMENTS ACT ��12 2HB 346 - NATURAL RESOURCES ENTITIES AMENDMENTS ��12 HB 257 - UTAH STATE PARKS AMENDMENTS ��12 LICENSE PLATES BILLS 2HB 272 - SPECIAL LICENSE PLATE AMENDMENTS ��13 SB 77 - KIWANIS SPECIAL GROUP LICENSE PLATE ��13 SB 203 - LICENSE PLATE MODIFICATIONS ��14 LICENSE PLATE BILLS NOT PASS ��14 FUTURE ISSUES PROPOSED RULE CHANGES R873 - PROPOSED RULE CHANGES ��15 R877 - PROPOSED RULE CHANGES ��19 NEW FORMS AVAILABLE NEW FORMS NOW AVAILABLE ��31 NEW FORMS COMING ��31 FEDERAL CHANGES NHTSA ODOMETER RULE CHANGES DISCLOSURE EXEMPTION FROM TEN YEARS TO TWENTY YEARS ��32

– DEALER LICENSE RESOURCE GUIDE – Ids Dealer License Education Program IDS DEALER LICENSE EDUCATION PROGRAM

WELCOME! Welcome and thank you for choosing Independent Dealer Solutions to obtain your license renewal education. We are committed to helping dealers across the state of Utah to better understand what is required to operate legally. This is not a class that simply fills a requirement, but a class that offers solutions to keep you in compliance with the laws. It is extremely important as a dealer in Utah that you understand and properly disclose the sale of a motor vehicle. Consumers in Utah are suing dealers and unwinding deals simply because dealers are not aware of all the requirements and disclosures in selling a vehicle. It has never been more apparent why the used vehicle industry must unite together. Every year our legislature is looking at ways to regulate our profession. Even though we are competitors, we must unite our efforts on all government intervention. Independent Dealer Solutions has worked for over 50 years on Capitol Hill “It has never been to protect your interests and are very familiar with the laws governing this more apparent why profession. We are not attorneys or legal council and suggest if you have the used vehicle questions or issues specific to your dealership you should seek legal advice. industry must unite We offer the best option for your education needs and hope you will together. Every year continue to look to us for further information and solutions for your business. our legislature is The mission of IDS is to better inform and educate dealers in Utah to looking at ways avoid any unfair and unneeded legislation. Additionally, we seek to raise to regulate our the level of professionalism of the industry and the confidence of the profession.…” consuming public. We are dedicated to providing quality and professional representation to dealers in Utah and meeting all your business needs. We urge you to become invested in your profession by joining the Used Car Dealers Association and sharing your ideas and issues that affect us all. Working together there is nothing that we cannot do to meet our goals and objectives. If you would like more information about the association and what is available to you, don’t hesitate to contact us. .

Welcome, Continued…

Our Anti-Trust Statement Disclosure:

Independent Dealers Solutions is organized to promote, develop and, maintain the advancement of the used vehicle dealer, powersport dealer, marine dealer and WHAT IS AN ANTI-TRUST recreation vehicle dealer. IDS does not intended to AND WHY IT’S BAD? and may not play a role in the competitive decisions of Congress passed the first antitrust law, the Sherman its members, customers, and employees or in any way Act, in 1890 as a “comprehensive charter of economic restrict competition in any aspect of the automotive liberty aimed at preserving free and unfettered industry. Though this statement of policy makes it clear competition as the rule of trade.” In 1914, Congress unequivocal support for the policy of competition passed two additional antitrust laws: the Federal served by the antitrust laws and its uncompromising Trade Commission Act, which created the FTC, and the intent to comply strictly in all respects with those laws. Clayton Act. With some revisions, these are the three It is the individual responsibility of every dealer to be core federal antitrust laws still in effect today. guided by the antitrust laws. It is not the role of IDS to act as arbiter or judge of competitive conduct of industry members. As such, this statement of antitrust policy is not a mechanism through which members or customers could charge another member or customer with alleged illegal action. This is a great industry because of the people in it who have a vision of what the future can bring. We want to make sure that government does not impose restrictions that will inhibit business or effect commerce in a negative way. We thank those in government who also share the same vision. Be active in sharing ideas and concerns about this industry with us. We can only represent your interests if you tell us what they are. We represent dealers both big and small and will always protect free enterprise. Please let us know what we can do for you to further your success in this industry.

www.IndependentDealerSolutions.com – 801.566.3802 – ©2021 Copyright – CONFIDENTIAL PAGE vi – DEALER LICENSE RESOURCE GUIDE – Ids Dealer License Education Program COPYRIGHT POLICY & INFRINGEMENT For more than 40 years IDS has spent a large amount of time, money, and effort in helping dealers meet compliance with required disclosures and forms. We have developed and maintained these forms for dealers to purchase them from us. In light of the number of violations we continue seeing, we are continually preparing notices to every printing facility in Utah outlining the forms we have copyright protection. If they have been printing our protected forms, we will ask them to cease and desist and to disclose any business who has ordered forms or any similar version of the form. This also will include all software companies who have programed our forms into your system without our permission. Making variations to the form is still a violation as well as removing a copyright designation is a violation. Penalties can be very sever for the print company and the dealer. IDS has hired a top level law firm specializing in copyright protection that is investigating all copyright violations for us and taking appropriate action. To avoid this situation from being a problem for your dealership, you or your printer or software company should contact IDS to work out a solution. Our primary solution is to work with you, your printer and your software provider, enabling you to have the proper forms and disclosure to keep your dealership in compliance. We still provide the best prices and always maintain the most current version of the forms as the laws change. We hope you understand our position, as I know you would not want someone else using your name to sell cars without your permission. Here is a basic list of copyrighted forms owned by IDS for your review. If you have questions whether your forms violate our copyright protection, feel free to contact us without fear of reprisal. This list includes the following:

• Motor Vehicle Contract of Sale • Test Drive Agreement • Authorization for Payoff & Lien Holder Notification • Vehicle As-Is Agreement No Implied Warranty • Goodwill Service Agreement • Down Payment Disclosure • Dealer Consignment Agreement • Dealer Wholesale Only • Agreement to Furnish Insurance • Trade In Vehicle Appraisal • Safety Recall Notice • Advanced Driving System Notification

CORPORATE OFFICE: 7414 South State St. Midvale, UT 84047 Independent Dealer Solutions Ph: 801.566.3802 Fx: 801.566.0708 www.idsinfo.com Located in Midvale, Ogden, and Orem. OGDEN OFFICE: IDS Offices carry promotional products, forms, dealer supplies, guide books and more for all your dealership needs. Some products such as 3544 Lincoln Ave. #9 custom items or specialty items may need to be ordered and sent to Ogden, UT 84405 you at a later time. Ph: 801.621.5869 IDS also provides title and registration services. Bring your paperwork into one of our three offices and have your paperwork processes just like at a DMV office. Service fees apply based on the type of OREM OFFICE: paperwork turnaround service you would like. 905 S. Orem Blvd Temporary Permits are available for purchase at any IDS office. Orem, UT 84058 Ph: 801.852.9003 IDS is not a Legal Attorney Office. IDS suggests that you contact your attorney to review any and all paperwork and business decisions within your dealership. Insurance:

Curtis J Vernon Insurance 46 West 200 South, Bountiful, UT 84010 ph: 801.292.5529 Attorneys: IDS CORPORATE OFFICE (MIDVALE) LOCATION Bryan Fishburn Fishburn & Associates 4505 Wasatch Blvd E # 215, Salt Lake City, UT 84124 (801) 277-3445 Richard Madsen II Ray Quinney & Nebeker P.C. 36 South State Street, Suite 1400, Salt Lake City, Utah 84111 þ REPORT PROBLEMS: (801) 323-3392 http://MVED.Utah.gov or Call 1.800.297.2600 Local Association: Used Car Dealers of Utah (UCDU) 7414 S State Street, Midvale, UT 84047 ph: 801.438.2520 [email protected]

PASSED BILLS

HB 217 - REGULATORY SANDBOX PROGRAM AMENDMENTS Chief Sponsor: A. Cory Maloy Senate Sponsor: Ann Millner General Description: - - - - - EFFECTIVE DATE & ACTION - - - - - This bill creates the Utah Office of Regulatory Relief EFFECTIVE DATE: (regulatory relief office) within the Governor’s Office of Upon the signature of the Governor. Economic Development (GOED). ACTION: Highlighted Provisions: This bill opens the door for the Used Car Dealer This bill creates the regulatory relief office within GOED; Association to explore new approaches to the describes the duties of the regulatory relief office; used vehicle profession and not be held back by old traditions or laws. creates the General Regulatory Sandbox Program (sandbox program), which allows the office to waive laws or regulations applicable to a participant under certain circumstances; describes how the sandbox program is to be administered by the regulatory relief office; describes reporting and other requirements of the regulatory relief office and participants in the sandbox program; creates the General Regulatory Sandbox Program Advisory Committee (advisorycommittee); describes the membership and duties of the advisory committee; and requires the regulatory relief office to create a web page where residents and businesses in the state may provide suggestions regarding modifying or eliminating laws and regulations to reduce the regulatory burden on residents and businesses in the state. LEGISLATIVE BILL EFFECTIVE DATE OPTIONS Legislative bills have three options for the implementation date. If a bill does not specify the effective date, then the bill becomes law 60 days following the legislative session. The three options include: • Upon the signature of the Governor. • A date specified in the legislative bill. • 60 days following the Legislative Session. May 5, 2021 is 60 days follwoing the legislative session this year.

©2021 Copyright – CONFIDENTIAL – 801.566.3802 – www.IndependentDealerSolutions.com PAGE 1 Passed Bills – DEALER LICENSE RESOURCE GUIDE – HB 170 - VEHICLE REGISTRATION RENEWAL NOTICE REQUIREMENTS Sponsor: Scott H. Chew - - - - - EFFECTIVE DATE & ACTION - - - - - Senate Sponsor: Jani Iwamoto EFFECTIVE DATE: General Description: Upon the signature of the Governor. This bill requires the Motor Vehicle Division to provide ACTION: a vehicle owner the option to receive notification Train employees to inform customers of the through mail or email to inform the owner of the new option for registration. Always put the expiration of a vehicle’s registration. email address on the application for title and registration form. Highlighted Provisions: This bill requires the Motor Vehicle Division to send notification through the mail of the expiration of a vehicle’s registration unless the individual elects to receive notification by email; requires the Motor Vehicle Division to begin mailing registration expiration notifications as soon as practicable. There is no cost to the owner to receive the notification.

2HB 195 - VEHICLE, BOAT, AND TRAILER REGISTRATION AMENDMENTS Chief Sponsor: Adam Robertson - - - - - EFFECTIVE DATE & ACTION - - - - - Senate Sponsor: Kathleen A. Riebe EFFECTIVE DATE: General Desciption: January 1, 2022 This bill requires certain agencies to establish procedures for an individual to request automatic renewal of ACTION: registration on a vehicle, off highway vehicle or boat; Action Item: Train employees to inform customers allows an individual to request automatic registration of the new option for automatic registration. Always put the customer email address on the renewal; allows special, permanent registration decals application for title and registration form. for certain rental or fleet vehicles. (6) The division shall establish a process by which an individual may request automatic renewal of registration. (7) An individual may request automatic renewal of registration as provided by the division. (8) If the vehicle is subject to an emissions inspection as described in Section 41-6a-1642 for the year for which a vehicle automatic registration is requested, the automatic renewal is not effective until the vehicle has passed an emissions inspection as required in Section 41-6a-1642.

www.IndependentDealerSolutions.com – 801.566.3802 – ©2021 Copyright – CONFIDENTIAL PAGE 2 – DEALER LICENSE RESOURCE GUIDE – Passed Bills (b) An owner of an off-highway vehicle may apply for automatic registration renewal as described in Section 41-1a-216.

4SB 73 - VEHICLE REGISTRATION CHECKOFF AND FEE AMENDMENTS Chief Sponsor: Lincoln Fillmore House Sponsor: Norman K. Thurston General Description: - - - - - EFFECTIVE DATE & ACTION - - - - - This bill provides a credit for fees and taxes charged to a person registering a leased vehicle purchased by the EFFECTIVE DATE: lessee and creates a voluntary contribution checkoff January 1, 2022 for motor vehicle registrations and renewals. ACTIONS: 41-1a-230.7. Registration checkoff for supporting A new Application for Title and Registration form emergency medical services and search and rescue (TC-656) will be modified. Dealers may need to operations. contact their DMS provider to modify their form. (1) A person who applies for a motor vehicle registration or registration renewal may designate a voluntary Inform a customer who has leased a vehicle and contribution of $3 for the purpose of supporting: decides later to purchase it rather than lease, no new fees will be required. (a) the Emergency Medical Services Grant Program; and (b) the Search and Rescue Financial Assistance Program. (2) This contribution shall be: (a) collected by the division; (b) treated as a voluntary contribution and not as a motor vehicle or off-highway vehicle registration fee; and (c) distributed equally to the Emergency Medical Services System Account created in Section 26-8a- 108 and the Search and Rescue Financial Assistance Program created in Section 53-2a-1102 at least monthly, less actual administrative costs associated with collecting and transferring the contributions. (3) In addition to the administrative costs deducted under Subsection (2)(c), the division may deduct the first $1,000 collected to cover costs incurred to change the registration form.

Section 3. Section 41-1a-1225 is enacted to read: 41-1a-1225. Credit for registering leased vehicle purchased by the lessee. (1) The division shall provide a credit against the fees and taxes charged to a person registering a vehicle under Title 41, Chapter 1a, Motor Vehicle Act, if: (a) immediately before purchasing the vehicle, the purchaser leased the vehicle and was a registrant of the vehicle; and (b) while leasing the vehicle and during the same registration period, the purchaser paid the fees and taxes charged for registering the vehicle under Title 41, Chapter 1a, Motor Vehicle Act. (2) The division shall apply the credit provided under Subsection (1) by allowing the registration period described in Subsection (1)(b) to remain in effect until expiration. (3) This section applies only to taxes and fees paid by, or on behalf of, the purchaser at the time of the registration described in Subsection (1)(b).

2SB 78 - MOTOR VEHICLE REPAIR AMENDMENTS Chief Sponsor: Curtis S. Bramble House Sponsor: Joel Ferry - - - - - EFFECTIVE DATE & ACTION - - - - - General Description: EFFECTIVE DATE: This bill amends provisions related to advanced driver May 5, 2021 assistance facilities and enacts provisions related to motor vehicle glass repair. ACTION: Highlighted Provisions: If a vehicle has had a windshield replacement and has not had the vehicle safety system recalibrated, This bill amends provisions related to the repair and a written notice must be given to the owner that recalibration of an advanced driver assistance feature; the system is inoperable. Be sure to inspect trade establishes a violation of a provision related to an in vehicles with safety systems in the windshield advanced driver assistance feature as an infraction; whether they are operable and recalibrated. enacts provisions related to motor vehicle glass repair. Written notice forms will be available with IDS.

www.IndependentDealerSolutions.com – 801.566.3802 – ©2021 Copyright – CONFIDENTIAL PAGE 4 – DEALER LICENSE RESOURCE GUIDE – Passed Bills (a) A person with actual knowledge that [the] an advanced driver assistance [system] feature of a motor vehicle is inoperable or has not been repaired or recalibrated [after a vehicle glass repair or replacement as described in this section] may not knowingly sell, offer for sale, or display for sale, the motor vehicle without providing written notice to the purchaser that: [(a)] (i) the advanced driver assistance [system] feature has not been repaired or recalibrated to the manufacturer’s specifications; or [(b)] (ii) the advanced driver assistance [system] feature is inoperable. (b) This Subsection (6) does not apply to: (i) a motor vehicle auction or consignor to a motor vehicle auction, if no disclosure is required under Section 41-1a-1005.3; or (ii) a vehicle for which the ownership document is: (A) a certification of title in an insurance company’s name; (B) a salvage certificate, as defined in Section 41-1a- 1001; or (C) a nonrepairable certificate, as defined in Section 41-1a-1001. 41-6a-1646. Motor vehicle glass repair requirements -- Penalties. (1) An automotive glass company or repair facility shall provide a consumer seeking motor vehicle glass repair or replacement: (a) an electronic or hardcopy written and itemized description of the work to be done on the vehicle; and (b) if an insurer is paying all or part of the repair, the total amount the insurer has agreed to pay for the work described in Subsection (1)(a). (2) An insurance company that pays for work described in Subsection (1)(a) may not be required to pay more than a fair and competitive price for the local market area. (3) An automotive glass company or repair facility:

©2021 Copyright – CONFIDENTIAL – 801.566.3802 – www.IndependentDealerSolutions.com PAGE 5 Passed Bills – DEALER LICENSE RESOURCE GUIDE – (a) may not represent to a customer that the cost of a repair or replacement will be paid for entirely by the customer’s insurer and at no cost to the customer unless the cost of the repair or replacement is fully covered and approved by the insurer; (b) is not limited to vehicle glass, tooling, or equipment dictated or recommended by the manufacturer’s procedures or specifications; and (c) may only bill or charge for vehicle glass repair, replacement, or recalibration services that are performed and necessary. (4) A person who violates a provision of this section is: (a) guilty of an infraction; and (b) subject to a civil penalty of $500. Subsection (6) does not apply to: (i) a motor vehicle auction or consignor to a motor vehicle auction, if no disclosure is required under Section 41-1a-1005.3; or (ii) a vehicle for which the ownership document is: (A) a certification of title in an insurance company’s name; (B) a salvage certificate, as defined in Section 41-1a- 1001; or (C) a nonrepairable certificate, as defined in Section 41-1a-1001.

www.IndependentDealerSolutions.com – 801.566.3802 – ©2021 Copyright – CONFIDENTIAL PAGE 6 – DEALER LICENSE RESOURCE GUIDE – Passed Bills SB 82 - ROAD USAGE CHARGE PROGRAM SPECIAL REVENUE FUND Chief Sponsor: Wayne A. Harper House Sponsor: Jeffrey D. Stenquist - - - - - EFFECTIVE DATE & ACTION - - - - - General Description: EFFECTIVE DATE: This bill creates the Road Usage Charge Program May 5, 2021 Special Revenue Fund. ACTION: Highlighted Provisions: No action is needed at this time. This bill only This bill amends definitions; creates the Road Usage addresses special revenue funds. Charge Program Special Revenue Fund; defines Future action may require informing customers sources of revenue to be deposited into the Road that registration fees may be different for different Usage Charge Program Special Revenue Fund; defines types vehicles such as electric vs. gas. allowed uses for revenue in the Road Usage Charge Registration fees may be based on miles driven. Program Special Revenue Fund; 72-1-213.2. Road Usage Charge Program Special Revenue Fund -- Revenue. (1) There is created a special revenue fund within the Transportation Fund known as the “Road Usage Charge Program Special Revenue Fund.” (2) The fund shall be funded from the following sources: (a) revenue collected by the department under Section 72-1-213.1; (b) appropriations made to the fund by the Legislature; (c) contributions from other public and private sources for deposit into the fund; (d) interest earnings on cash balances; and (e) money collected for repayments and interest on fund money. (3) (a) Revenue generated by the road usage charge program and relevant penalties shall be deposited into the Road Usage Charge Program Special Revenue Fund. (b) Revenue in the Road Usage Charge Program Special Revenue Fund is nonlapsing. (4) Upon appropriation by the Legislature, the department may use revenue deposited into the Road Usage Charge Program Special Revenue Fund: (a) to cover the costs of administering the program; and (b) for state transportation purposes.

©2021 Copyright – CONFIDENTIAL – 801.566.3802 – www.IndependentDealerSolutions.com PAGE 7 Bills Not Passed – DEALER LICENSE RESOURCE GUIDE – SB 146 - EMISSIONS TESTING AMENDMENTS Sponsor: Curtis S. Bramble House Sponsor: Suzanne Harrison - - - - - EFFECTIVE DATE & ACTION - - - - - General Description: EFFECTIVE DATE: This bill removes the end date of a pilot program May 5, 2021 requiring emissions inspections of certain diesel- powered motor vehicles, making the requirement ACTION: permanent. Diesel powered vehicle emissions program will be permanent. Dealers will need to emission test Highlighted Provisions: diesel vehicles on the Utah County schedule. This bill updates a pilot program to make permanent . a pilot emissions inspection program, which requires counties to have an emissions inspection program for certain diesel-powered vehicles.

BILLS NOT PASSED

Dealership Fees Amendments (No Number) Bill Sponsor: Norm Thurston This bill establishes requirements relating to a dealer documentation fee. - - - - - ACTION ITEM - - - - Highlighted Provisions:

ACTION: (14) (a) As used in this Subsection (14): (i) Doc fees cannot include profit to a dealer. It can “Documentation fee” means a fee charged for the only cover actual costs. Dealers can contact IDS preparation and processing of documents, disclosures, or the Used Car Dealers of Utah Association for titling, registration, information relating to security a worksheet to determine what their costs are. obligations imposed by state or federal law, or the A doc fee sign must be prominently displayed in the area disclosing the language required. Train performance of other related services. employees to properly inform customers that it (b) A dealer licensed under this chapter may not: is not state mandated. If a customer won’t pay the doc fee, charge them the fee and reduce the (i) charge a documentation fee that exceeds $150 for selling price by the amount of the doc fee. each motor vehicle sold or leased in a transaction; or A new Dealer Documentary Fees signage (ii) represent that the documentation fee is a document will be made available to all UCDU government fee or a fee required by the government. Association members once the language of doc (c) A dealer licensed under this chapter may not fees are changes in rule. charge a documentation fee unless: If you don’t have a current Dealer Documentary Fees sign, please contact IDS for a document you (i) notice of the documentation fee is clearly and can post in your office. conspicuously disclosed as part of every oral and written price quote provided to the customer for the motor vehicle; and

www.IndependentDealerSolutions.com – 801.566.3802 – ©2021 Copyright – CONFIDENTIAL PAGE 8 – DEALER LICENSE RESOURCE GUIDE – Bills Not Passed (ii) the price quote includes the required disclosure in Subsection (14)(d). - - - - - ACTION ITEM - - - - (d) A dealer shall provide to the customer: ACTION: (i) a disclosure of the amount of all fees charged Doc fees cannot include profit to a dealer. It can in relation to the retail sale or lease of the motor vehicle; only cover actual costs. Dealers can contact IDS or the Association for a worksheet to determine (ii) (ii) a disclosure regarding whether the fees what their costs are. A doc fee sign must be described in Subsection (14)(d)(i) are prominently displayed in the area disclosing the language required. Train employees to properly included in, or addition to, the price quoted by the inform customers that it is not state mandated. dealer; and (iii) the following notice: If a customer won’t pay the doc fee, charge them (A) if the price includes a fee, “This price includes [list the fee and reduce the selling price by the amount all fees by type and the amount of each fee] and of the doc fee. a [insert amount charged for documentation fee] A new Dealer Documentary Fees signage documentation fee.”; document will be made available to all UCDU Association members once the language of doc (B) if the price does not include a fee, “This price fees are changed in rule. excludes tax, title, tags, and a [insert amount charged for documentation fee] documentation fee.”; and If you don’t have a current Dealer Documentary Fees sign, please contact IDS for a document you (C) if the dealer charges the customer a can post in your office. documentation fee, “This documentation fee is not required by law.” immediately following the amount of - - - - - ACTION ITEM - - - - the documentation fee. ACTION: (e) If a disclosure described in Subsection (14)(d) is in Be sure you have your customer sign Section A or writing, the disclosure shall be clearly and conspicuously Section B on the Contract of Sale. If Section B is distinguished from any surrounding text. signed, all terms must be disclosed. Never have a customer sign both sections.

Dealer Duties and Disclosures Enactments (No Number) Bill Sponsor: Rep. Norm Thurston Highlighted Provisions:

This bill places a fiduciary duty on a dealer acting as the broker of the retail sale or lease of a motor vehicle to act in the best interest of the consumer; requires a dealer acting as the broker of the retail sale or lease of a motor vehicle to disclose all financing offers to the consumer;

©2021 Copyright – CONFIDENTIAL – 801.566.3802 – www.IndependentDealerSolutions.com PAGE 9 Bills Not Passed – DEALER LICENSE RESOURCE GUIDE – This bill creates a private cause of action against a dealer who breaches the dealer’s fiduciary duty or fails to provide required disclosures to the consumer; specifies damages the consumer may recover in an action brought against a dealer for breach of fiduciary duty or failure to provide required disclosures; and establishes a statute of limitations for a consumer to bring a private action under this bill. Private cause of action. (1) As used in this section: (a) “Actual damages” means the difference between: (i) the cost of financing the retail purchase or lease with the financing rate that the consumer agrees to pay; and (ii) the cost of financing the retail purchase or lease with the lowest financing rate not disclosed to the consumer, in violation of Subsection (2)(c). (b) “Broker” means a person who arranges financing on behalf of a consumer for the retail purchase or lease of a motor vehicle. (2) A dealer acting as the broker of the retail sale or lease of a motor vehicle: (a) acts as an agent of the consumer-pricncipal in the transaction; (b) owes a fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the consumer; and (c) shall disclose to the consumer all financing offers obtained in relation to the sale or lease, including: (i) the names of the financial institutions offering financing; and (ii) the financing terms of the offers. (3) A consumer may bring a private cause of action against a dealer that violates Subsection (2) to recover: (a) up to three times the value of actual damages; (b) the costs of bringing the action; (c) reasonable attorney fees; and (d) punitive damages, if the court determines appropriate considering the dealer’s pattern of violations of this section.

www.IndependentDealerSolutions.com – 801.566.3802 – ©2021 Copyright – CONFIDENTIAL PAGE 10 – DEALER LICENSE RESOURCE GUIDE – Powersport & Marine Bills (4) A consumer may not bring a cause of action described in Subsection (3) later than one year after the day on which the consumer discovers the facts underlying the cause of action.

Other Bills Not Passed Vehicle Title Amendments –Christiansen 1SB 94 – Trailer Weight HB 392 – Safety Inspection Reg Fee Increase for Electric Vehicles Post Vehicle Theft Recovery

POWERSPORT & MARINE BILLS

HB 111 - OFF-HIGHWAY VEHICLE AMENDMENTS Chief Sponsor: Carl R. Albrecht Sponsor: Derrin R. Owens General Description:

This bill amends provisions related to the operation of off-highway vehicles. Highlighted Provisions: - - - - - EFFECTIVE DATE & ACTION - - - - - This bill allows an individual under 18 years old to operate EFFECTIVE DATE: an off-highway vehicle under certain conditions; and May 5, 2021 (1) A person may not operate and an owner ACTION: may not give that person permission to operate an No action needed by the dealer for compliance. off-highway vehicle on any public land, trail, street, or It may be helpful to remind the customer of laws highway of this state unless the person: pertaining to those under 18 years of age for off- highway vehicles. (a) is able to reach and operate each control necessary to safely operate the off-highway vehicle; (b) (i) is under the direct supervision of an off-highway vehicle safety instructor during a scheduled safety training course approved by the board in accordance with Section 41-22-32 ; (ii) possesses a safety certificate issued or approved by the division in accordance with Section 41-22-31; or (iii) possesses a valid license to operate a motor vehicle issued in accordance with Title 53, Chapter 3. Uniform Driver License Act; and

©2021 Copyright – CONFIDENTIAL – 801.566.3802 – www.IndependentDealerSolutions.com PAGE 11 Powersport & Marine Bills – DEALER LICENSE RESOURCE GUIDE – (c) [if under 18 years of age,] is under the direct supervision of a person who is at least 18 years [of age] old if the person operating the off-highway vehicle: (i) is under 18 years old; (ii) does not possess a valid license to operate a motor vehicle issued in accordance with Title 53, Chapter 3, Uniform Driver License Act; and (iii) is operating the off-highway vehicle on a public highway that is: (A) open to motor vehicles; and (B) not exclusively reserved for off-highway vehicle use[; or]. [(c) has in the person’s immediate possession a valid motor vehicle operator’s license, as provided in Title 53, Chapter 3, Uniform Driver License Act.] (5) Nothing in this section allows an individual without a valid driver license issued in accordance with Title 53, Chapter 3, Uniform Driver License Act, to operate a street-legal all-terrain vehicle on a roadway.

3HB 314 - MOTORBOAT AGREEMENTS ACT - - - - - EFFECTIVE DATE & ACTION - - - - - Chief Sponsor: Francis D. Gibson EFFECTIVE DATE: Senate Sponsor: Don L. Ipson May 5, 2021 Effective Date: May 5, 2021 ACTION: General Description: When newmotorboat manufacturer agreements are put into place with the dealer, it is important This bill enacts the Motorboat Agreements Act. to know the provisions that are required to be in Highlighted Provisions: the contracts beginning May 5, 2021. This bill defines terms; requires certain provisions in an agreement; enacts provisions related to a motorboat dealer’s default and curing a default; and enacts provisions related to the termination or nonrenewal of an agreement. - - - - - NOTICE - - - - - 2HB 346 - Natural Resources TWO NEW STATE PARKS: - Utahraptor State Park Entities Amendments - Lost Creek State Park HB 257 - Utah State Parks Amendments

2HB 272 - SPECIAL LICENSE PLATE AMENDMENTS Chief Sponsor: Paul Ray - - - - - EFFECTIVE DATE - - - - Senate Sponsor: Evan J. Vickers EFFECTIVE DATE: October 15, 2021 General Description:

This bill creates the Donate Life support special group license plate. Highlighted Provisions:

This bill renames the Organ Donation Contribution Fund as the Allyson Gamble Organ Donation Contribution Fund; amends provisions related to the Allyson Gamble Organ Donation Contribution Fund to direct contributions from the Donate Life support special group license plate to be deposited into the fund; directs the Department of Health to distribute proceeds from the Donate Life support special group license plate to a nonprofit organization that specializes in the recovery and transplantation of organs and tissues; creates the Donate Life support special group license plate.

SB 77 - KIWANIS SPECIAL GROUP LICENSE PLATE Sponsor: Michael K. McKell House Sponsor: Jefferson S. Burton - - - - - EFFECTIVE DATE - - - - Highlighted Provisions: EFFECTIVE DATE: This bill creates a support special group license plate November 1, 2021 to support the mission and purpose of the Kiwanis International clubs within the state; creates the Kiwanis Education Support Fund; directs donations of license plate recipients to be distributed to the Education Fund.

©2021 Copyright – CONFIDENTIAL – 801.566.3802 – www.IndependentDealerSolutions.com PAGE 13 Future Issues – DEALER LICENSE RESOURCE GUIDE – SB 203 - LICENSE PLATE MODIFICATIONS Chief Sponsor: Ann Millner - - - - - EFFECTIVE DATE - - - - House Sponsor: Melissa G. Ballard EFFECTIVE DATE: May 5, 2021 Highlighted Provisions: This bill amends provisions related to the revenue distribution associated with the National Professional Special Note: The UCDU will be recommending to Men’s Basketball Team Support of Women and privatize all special license plates in the future. Children Issues support special group license plate due to recent organizational changes.

License Plate Bills Not Pass HB 198 – Dark Sky Plate HB407 – Pioneer Plate

FUTURE ISSUES

New Dealer Bond Program Dealer Education Program New Consumer Education Program

R873 - Proposed Rule Changes Proposed changes are in bold print and underlined or deleted. R873. Tax Commission, Motor Vehicle. R873-22M-14. License Plates and Decals Pursuant to Utah Code Ann. Sections 41-1a-215, 41-1a-401, and 41-1a-402.

A. Except as provided under Section 41-1a-215(1), license plates shall be renewed on a yearly basis until new license plates are issued. B. For all license plates, except vintage vehicle license plates, a month decal and year decal shall be issued upon the first registration of the vehicle. Upon each subsequent registration, the vehicle owner shall receive only a year decal to validate renewal. The registration decals shall be applied as follows: 1. Decals displayed on license plates with black lettering on a white background shall be applied to the lower left hand corner of the rear license plate. 2. Decals displayed on centennial license plates and regular issue license plates with blue lettering on a white background shall be applied to the upper left hand corner of the rear license plate. 3. Decals displayed on special group license plates shall be applied to the upper right hand corner of the rear license plate unless there is a plate indentation on the upper left hand corner of the license plate. 4. All registration decals issued for truck tractors shall be applied to the front license plate in the position described in either Subsection B.1. or B.2. 5. All registration decals issued for motorcycles shall be applied to the upper corner of the license plate opposite the word “Utah”. C. The month decal shall be displayed on the license plate in the left position, and the year decal in the right position.

©2021 Copyright – CONFIDENTIAL – 801.566.3802 – www.IndependentDealerSolutions.com PAGE 15 Proposed Rule Changes – DEALER LICENSE RESOURCE GUIDE – D. The current year decal shall be placed over or in place of the previous year decal. E. Whenever any license plate, month decal, or year decal is lost or destroyed, a replacement shall be issued upon application and payment of the established fees.

R873-22M-17. Standards for State Impound Lots Pursuant to Utah Code Ann. Section 41-1a-1101.

(1) An impound yard may be used by the Motor Vehicle Division and peace officers only if all of the following requirements are satisfied: (a) The yard must be identified by a conspicuously placed, well-maintained sign that: (i) is at least 24 square feet in size; (ii) includes the business name, address, phone number, and hours of business; and (iii) displays the impound yard identification number issued by the Motor Vehicle Division in characters at least four inches high. (b) The yard shall maintain a hard-surfaced storage area of concrete, black top, gravel, road base, or other similar material. (c) The yard must have adequate lighting. (d) A six-foot chain link or other similar fence that is topped with three strands of barbed wire or razor security wire must surround the yard. (e) The yard must have opaque fencing, which may be opaque chain link fencing, on any side that has frontage with a highway. (f) Spacing between vehicles must be adequate to allow opening of vehicle doors without interfering with other vehicles or objects. (g) An office shall be located on the premises of the yard. (i) The yard office shall be staffed and open for public business during normal business hours, Monday through Friday, except for designated state and federal holidays.

www.IndependentDealerSolutions.com – 801.566.3802 – ©2021 Copyright – CONFIDENTIAL PAGE 16 – DEALER LICENSE RESOURCE GUIDE – Proposed Rule Changes (ii) If the yard maintains multiple storage areas, authorization may be requested from the Motor Vehicle Division to maintain a central office facility in a location not to exceed a 10 mile radius from any of its storage areas. (iii) If a central office facility is authorized under Subsection (1)(g)(ii), the signs of all storage areas must provide the location of the office. (h) The yard shall provide compressed air and battery boosting capabilities at no additional cost. (2) Persons who can demonstrate an ownership interest in a car held at a state impound yard are allowed to enter the vehicle during normal business hours and remove personal property not attached to the vehicle upon signing a receipt for the property with the yard. (a) An individual has ownership interest in the vehicle if the person he: (i) is listed as a registered owner or lessee of the vehicle; or (ii) has possession of the vehicle title: or (iii) is the registered lienholder of the vehicle.

(b) An individual must show picture identification as evidence of his ownership interest. (c) The storage yard shall maintain a log of individuals who have been given access to vehicles for the purpose of removing personal property. (3) Impound yards holding five or less vehicles in a month may be required to tow those vehicles to another yard for the purpose of centralizing sales of vehicles or, at the discretion of the Motor Vehicle Division, be required to hold the vehicles until additional impounded vehicles may be included. (4) Operators of impound yards shall remove license plates from impounded vehicles prior to the time of sale and turn them over to the commission at the time the vehicles are sold. (5) The Motor Vehicle Division has the authority to review the qualifications of state impound yards to assure compliance with the requirements set forth in this rule. Any yard not in compliance shall be notified in writing and given 30 days from that notice to rectify any noncompliance. If no action or insufficient action is taken by the impound yard, the Motor Vehicle Division

©2021 Copyright – CONFIDENTIAL – 801.566.3802 – www.IndependentDealerSolutions.com PAGE 17 Proposed Rule Changes – DEALER LICENSE RESOURCE GUIDE – may order it to be suspended as a state impound yard. Any yard contesting suspension, or any yard directly and adversely affected by the Motor Vehicle Division’s refusal to designate it a state impound yard, has the right to appeal that suspension to the commission.

R873-22M-25. Written Notification of a Salvage Certificate or Branded Title Pursuant to Utah Code Ann. Section 41-1a-1004.

A. The Motor Vehicle Division shall brand a vehicle’s title if, at the time of initial registration or transfer of ownership, evidence exists that the vehicle is a salvage vehicle. B. Written notification that a vehicle has been issued a salvage certificate or branded title shall be made to a prospective purchaser on a form approved by the Administrator of the Motor Vehicle Enforcement Division. C. The form must clearly and conspicuously disclose that the vehicle has been issued a salvage certificate or branded title. D. The form must be presented to and signed by the prospective purchaser and the prospective lienholder, if any, prior to the sale of the vehicle. - - - - - ACTION ITEM - - - - E. If the seller of the vehicle is a dealer, the form must ACTION: be prominently displayed in the lower passenger-side If you have other suggestions please contact the corner of the windshield for the period of time the Used Car Dealers of Utah Association immediately. vehicle is on display for sale. 801.438.2520 or [email protected]. F. The original disclosure form shall be given to the purchaser and a copy shall be given to the new lienholder, if any. A copy shall be kept on file by the seller for a period of time required by federal statute three years from the date of sale if the seller is a dealer.

www.IndependentDealerSolutions.com – 801.566.3802 – ©2021 Copyright – CONFIDENTIAL PAGE 18 – DEALER LICENSE RESOURCE GUIDE – Proposed Rule Changes R877 - Proposed Rule Changes Changes are in bold print and underlined or deleted. R877-23V-5. Temporary Motor Vehicle Registration Permits and Extension Permits Issued by Dealers Pursuant to Utah Code Ann. Section 41-3-302.

(1) Every dealer desiring to issue temporary permits for the operation of motor vehicles shall make application to the Motor Vehicle Enforcement Division. If the privilege is extended, the dealer will receive a series of permits, consecutively numbered. The numbers shall be recorded by the division and charged to the dealer. (2) If a vehicle purchaser requests a temporary permit, the dealer shall issue no more than one temporary registration permit, in numerical sequence, for each motor vehicle sold. (3) The expiration date on the original permit shall be legible from a distance of 30 feet. (4) The permit shall be displayed at the rear of the motor vehicle, in a place where the printed information on the permit and the expiration date may be easily seen. (5) Temporary permits must not be placed in rear windows or permit holders with less than seventy percent light transparency. (a) If a permit holder is used, it must not cover any of the printed information on the permit, including the expiration date. (b) If a license plate frame is used in conjunction with a permit holder, it must not cover any printed information or expiration date on the permit. (c) Temporary permits must be protected from exposure to the weather and conditions that would render them illegible. (6) If a temporary permit is filled out incorrectly, or the sale of the vehicle is rescinded, or for some other reason the permit is unusable, the dealer must return the permit to the Motor Vehicle Enforcement Division, together with the stub, and it will not be considered issued. If the permit is placed on a vehicle and the sale has not been rescinded, the permit will be considered issued and the dealer is liable for the registration fee for the vehicle together with any applicable penalties.

©2021 Copyright – CONFIDENTIAL – 801.566.3802 – www.IndependentDealerSolutions.com PAGE 19 Proposed Rule Changes – DEALER LICENSE RESOURCE GUIDE – (7) A dealer’s temporary permits may be audited at any time and the dealer required to pay for all outstanding permits. The registration fee charged will be for a passenger car unless the dealer is licensed to sell only motorcycles or small trailers. (a) If the dealer’s records indicate that the permit was issued for a vehicle other than that for which the dealer was billed, the dealer must submit the proper fee and penalty. (b) If the records disclose that the permit was cleared properly, the dealer must furnish the license plate number of the vehicle for which the permit was issued and the date of issue. (c) A dealer shall resolve any outstanding permit billings by payment of fees and penalties or by reconciling the permits before any additional permits will be issued to the dealer. This action will not be construed to be a cancellation of a dealer’s privilege of issuing temporary permits, but merely a function of the division’s routine audit and billing procedure. (8) The dealer shall keep a written record in numerical sequence of every temporary registration permit issued. This record shall include all of the following information: (a) the name and address of the person or firm to whom the permit is issued; (b) a description of the motor vehicle for which it was issued, including year, make, model, and identification number; (c) date of issue; (d) license plate number; (e) in the case of a commercial vehicle, the gross laden weight for which it was issued. (9) In exceptional circumstances a dealer as agent for the division may issue an additional temporary permit for a vehicle by following the procedures outlined below: (a) The dealer must contact the division and request an extension permit for a particular vehicle. If the request is denied, no extension permit will be issued.

www.IndependentDealerSolutions.com – 801.566.3802 – ©2021 Copyright – CONFIDENTIAL PAGE 20 – DEALER LICENSE RESOURCE GUIDE – Proposed Rule Changes (b) If the extension permit is approved, the division shall issue the dealer an approval number. This number - - - - - ACTION ITEM - - - - must be recorded by the dealer in its temporary permit record and on the permit and stub in the space ACTION: provided for the license number. The space provided Be sure to track temporary permit extension in your temporary permit log. The most common on the permit and stub for the dealer name must be item on temporary permit audits come from completed with the words “State Tax Commission” permit extensions. and the dealer’s license number. The remainder of the permit and stub will be completed as usual. (c) The dealer must return the permit stub to the division within 45 days from the date it is issued. (d) A dealer may not issue an extension permit if it is determined that the dealer has been granted - - - - - ACTION ITEM - - - - extensions for more than 2% of the permits issued to the dealership during the past three months. This ACTION: percentage is calculated by dividing the number of If you have a problem getting a title from an out of state DMV, please contact IDS. We continue to extensions granted the dealer during the past three work with MVED to resolve title issues for dealers. months by the permits issued by the dealer during the past three months. (10) All extension permits issued by dealers under this rule are considered issued by the division. (11) When a motor vehicle is sold for registration in another state, the stub portion of the temporary permit shall be filed with the division within forty-five ten days from the date of issue, accompanied by the required fee. The sale must be reported in the dealer’s monthly report of sale required by Section 41-3-301(2)(b). If the permit stub and the required fee are not postmarked or received by the division within 45 days, a penalty equal to the required fee shall be collected pursuant to Section 41-3-302. (12) The temporary registration card, attached to the temporary permit, must be detached and given to the customer at the time the temporary permit is issued. This temporary registration card must be kept in the vehicle while the temporary permit is displayed.

R877-23V-7. Misleading Advertising Pursuant to Utah Code Ann. Section 41-3-210. a (1)(a) “Advertisement” means any oral, written, graphic, or pictorial statement made that concerns the offering of a motor vehicle for sale or lease. (b) “Advertisement” includes any statement or representation:

(i) made in a newspaper, magazine, electronic medium, or other publication; (ii) made on radio or television; (iii) appearing in any notice, handbill, sign, billboard, banner, poster, display, circular, pamphlet, letter, or other printed material; (iv) contained in any window sticker or price tag; and (v) in any oral statement. (c) “Advertisement” includes the terms “advertise” and “advertising”. (d) “Advertisement” does not include: (i) a statement made solely for the purpose of obtaining motor vehicle financing or a motor vehicle title; or (ii) hand written negotiation sheets between a dealer and a customer of the dealer. (2) Violation of any of the following standards of practice for the advertising and selling of motor vehicles is a violation of Section 41-3-210. - - - - - ACTION ITEM - - - - (a) Accuracy. Any advertised statements and offers about a motor vehicle as to year, make, model, ACTION: branded title, type, condition, equipment, price, trade- Salvage Vehicle Disclosure Form (TC-814) must be in-allowance, terms, and so forth, shall be clearly set posted in any vehicle for sale and signed by the forth and based upon facts. customer. (b) Bait. Bait advertising and selling practices may not be used. A motor vehicle advertised at a specific price shall be in the possession of the advertiser at the address given. It shall be willingly shown, demonstrated and sold. If sold, the advertiser shall, upon request of any prospective purchaser, peace officer, or employee of the division, show sales records of the advertised motor vehicle. (c) When an advertisement contains a picture of a motor vehicle along with a quoted price, the motor vehicle pictured must be a similar model with similar options and accessories as the motor vehicle advertised.

www.IndependentDealerSolutions.com – 801.566.3802 – ©2021 Copyright – CONFIDENTIAL PAGE 22 – DEALER LICENSE RESOURCE GUIDE – Proposed Rule Changes a (d)(A) Price. When the price or payment of a motor vehicle is quoted, the motor vehicle shall be clearly identified as to make, year, model and if new or used. Except as provided in Subsection (c)(i)(B), the advertised price must include charges that the customer must pay for the motor vehicle including freight or destination charges, dealer preparation, and dealer handling. a (B)(C) The following fees are not required to be included in the advertised price that the customer must pay for the motor vehicle: (I) dealer documentary service fees; (II) if optional, undercoating or rustproofing charges fees; and (iii) dealer preparation or dealer handling charges; and

(iv) taxes or fees required by the state, or a county, or local jurisdiction including sales tax, titling and registration fees, safety and emission fees, and waste tire recycling fees. (d)(i) In addition to other advertisements, this pertains to price statements such as “$..... Buys”. (ii) When “list”, “sticker”, or words of similar import are used in an advertisement, they may refer only to the manufacturer’s suggested retail price. If a supplementary price sticker is used, the advertised price must include all items listed on the supplementary sticker. a (d)(e) Savings and Discount Claims. Because the intrinsic value of a used motor vehicle is difficult to establish, specific claims of savings may not be used in an advertisement. This includes statements such as, “Was priced at $....., now priced at ... (i) The word “wholesale” may not be used in retail motor vehicle advertising. (ii) When a motor vehicle advertisement contains an offer of a discount on a new motor vehicle, the amount of the discount must be stated by reference to the manufacturer’s suggested retail price of the motor vehicle.

a (e)(f) Down Payments. The amount of the down payment may not be stated in a manner that suggests that it is the selling price of the motor vehicle. If an advertisement states “You can buy with no money down”, or terms of similar import, the customer must be able to leave the dealership with the motor vehicle without making any outlay of money. (f)(g) Trade-in Allowance. Statements representing that no other dealer grants greater allowances for trade-ins may not be used. A specific trade-in amount or range of trade-in amounts may not be used in advertising. (g)(h)(i)(A) Finance. The phrases, “no finance charge”, “no carrying charge”, or similar expressions may not be used when there is a charge for placing the transaction on a time payment basis. Statements representing or implying that no prospective credit purchaser will be rejected because of inability to qualify for credit, such as “we accept all credit applications”, may not be used. (B) If the amount of the advertised payment changes during the term of the loan, both the payments and the terms of the loan must be disclosed together. a (ii) The phrase “we will pay off your trade no matter what you owe” may not be used.

(h)(i) Unpaid Balance and Repossessions. The term “repossessed” may be used only to describe motor vehicles that have actually been repossessed from a purchaser. Advertisers offering repossessed motor vehicles for sale may be required to offer proof of those repossessions. The unpaid balance shall be the full selling price unless otherwise stated. (i)(j) Current Used. When a used motor vehicle, as defined by Section 41-3-102, of a current series is advertised, the first line of the advertisement must contain the word “used”, “pre-owned”, “certified used”, “certified pre-owned”, or other similar term used to designate a used motor vehicle, or the text must clearly indicate that the motor vehicle offered is used. (j) (k) Demonstrators, Executives’ and Officials’ Motor Vehicles. (i) “Demonstrator” means a motor vehicle that has never been sold or leased to a member of the public.

(ii) Demonstrator motor vehicles include motor vehicles used by new motor vehicle dealers or their personnel for demonstrating performance ability but not motor vehicles purchased or leased by dealers or their personnel and used as their personal motor vehicles. (iii) A demonstrator motor vehicle may be advertised for sale only by a dealer franchised for the sale of that make of new motor vehicle. (iv) An executive’s or official’s motor vehicle shall have been used exclusively by an executive of the dealer’s franchising manufacturer or distributor, or by an executive of the franchised dealership. These motor vehicles may not have been sold or leased to a member of the public prior to the appearance of the advertisement. (v) Demonstrator’s, executive’s and official’s motor vehicles

shall be clearly and prominently advertised as such. Advertisements shall include the year, make, and model of the motor vehicle offered for sale.

(k)(l) Taxi-cabs, Police, Sheriff, and Highway Patrol Motor Vehicles. Taxi-cabs, police, sheriff, and highway patrol motor vehicles shall be clearly so identified. These motor vehicles may not be described by an ambiguous term such as “commercial”. (l)(m) Mileage Statements. When an advertisement quotes the number of miles or a range of miles a motor vehicle has been driven, the dealer must have written evidence that the motor vehicle has not been operated in excess of the advertised mileage at the time of the advertisement. (i) The evidence required by this section shall be the properly completed odometer statement required by Section 41-1a- 902. (ii) If a dealer chooses to advertise specific mileage or a range of miles a motor vehicle has been driven, the dealer shall upon request of any prospective purchaser, peace officer, or employee of the division produce all documents in its possession pertaining to that motor vehicle so that the mileage can be readily verified.

(m)(n) Underselling Claims. Unsupported underselling claims may not be used. Underselling claims include the following: “our prices are guaranteed lower than elsewhere”, “money refunded if you can duplicate our values”, “we guarantee to sell for less”, “we sell for less”, “we purchase motor vehicles for less so we can sell them for less”, “highest trade- in allowance”, “we give $300 more in trade than any other dealers”. Evidence of supported underselling claims must be contained in the advertisement and shall be produced upon request of a prospective purchaser, peace officer, or employee of the division. (o) Name Your Own Deal. Statements such as “write your own deal”, “name your own price”, “name your own monthly payments”, “appraise your own motor vehicle”, and phrases of similar import may not be used. (Moved from section below.) a (n)(p) Free. “Free” may be used in advertising only when the advertiser is offering a gift that is not conditional on the purchase of any vehicle property or service. (o)(q) Driving Trial. A free driving trial means that the purchaser may drive the motor vehicle during the trial period and return it to the dealer within the specified period and obtain a refund of all moneys, signed agreements, or other considerations deposited and a return of any motor vehicle traded in. The exact terms and conditions of the free driving trial shall be set forth in writing and a copy given to the purchaser at the time of the sale. (p)(r) Guaranteed. When words such as “guarantee”, “warranty”, or other terms implying protection are used in advertising, an explanation of the time and coverage of the guarantee or warranty shall be given in clear and concise language. The purchaser shall be provided with a written document stating the specific terms and coverages. (q) Name Your Own Deal. Statements such as “write your own deal”, “name your own price”, “name your own monthly payments”, “appraise your own motor vehicle”, and phrases of similar import may not be used. (Moved after (m) above. (r)(s) Disclosure of Material Facts. Disclosures of material facts that are contained in advertisements and that involve types of motor vehicles and transactions shall be made in a clear and conspicuous manner. a (i) Fine print, and mouse print are not acceptable methods of disclosing material facts.

(ii) The disclosure must be made in a typeface and point size comparable to the smallest typeface and point size of the text used throughout the body of the advertisement. (iii) An asterisk may be used to give additional information about a word or term, however, asterisks or other reference symbols may not be used as a means of contradicting or substantially changing the meaning of any advertising statements. (iv) The speed of the words spoken in any verbal advertisement must be constant throughout the advertisement. a (s)(t) Lease. When an advertisement relates to a lease, the advertisement must make it readily apparent that the transaction advertised is a lease. (i) The word “lease” must appear in a prominent position in the advertisement in a typeface and point size comparable to the largest text used to directly advertise the motor vehicle. (ii) Statements that do not use the term “lease” do not constitute adequate disclosure of a lease. (iii) Lease advertisements may not contain the phrase “no down payment” or words of similar import if an outlay of money is required to lease the motor vehicle. (iv) Lease terms that are not available to the general public may not be included in advertisements directed at the general public. (v) Limitations and qualifications applicable to the lease terms advertised shall be clearly and conspicuously disclosed. (t)(u) Electronic Medium Disclosures. A disclosure appearing in any electronic advertising medium must clearly and conspicuously feature all necessary information in a manner that can be read and understood if type is used, or that can be heard and understood if audio is used.

(u)(v) Invoice or Cost. The terms “invoice” or “factory invoice” may be used as long as the dealer is willing to show the factory invoice to the prospective buyer. The term “cost” may not be used. a (v)(w) Rebate Offers. “Rebate”, “cash rebate”, or similar terms may be used only when it is clearly and conspicuously stated who is offering the rebate.

(w)(x) Buy-down Interest Rates. No buy-down interest rate may be advertised unless the dealer discloses the amount of dealer contribution and states that the contribution by the dealership may increase the negotiated price of the motor vehicle. (x)(y) Special Status of Dealership. A motor vehicle advertisement may not falsely imply that the dealer has a special sponsorship, approval status, affiliation, or connection with the manufacturer that is greater or more direct than any other like dealer. (y)(z) Price Equaling. An advertisement that expresses a policy of matching or bettering competitor’s prices shall fully disclose any conditions that apply and specify the evidence a consumer must present to take advantage of the offer. The evidence requirement may not place an unreasonable burden on the consumer; however, for example requiring the consumer to bring a written offer made to that consumer by an authorized representative of a dealership on a substantially similar motor vehicle would be considered reasonable. (z)(aa) Auction. “Auction” or “auction special” and other terms of similar import may be used only in connection with motor vehicles offered or sold at a bona fide auction. (aa)(bb) Layout and Type Size. The layout, headlines, illustrations, or type size of a printed advertisement and the broadcast words or pictures of radio, television, or electronic medium advertisements may not convey or permit an erroneous or misleading impression as to which motor vehicle or motor vehicles are offered at featured prices. (i) When an advertisement contains a picture of a motor vehicle along with a quoted price, the motor vehicle pictured must be a similar model with similar options and accessories as the motor vehicle advertised. (Moved to (2) (b). (ii) (ii) No advertised offer, expression, or display of price, terms, down payment, trade-in allowances, cash difference, savings, or other material terms may be misleading and any necessary qualifications shall be clearly, conspicuously, and accurately set forth to prevent misunderstanding. (iii) Qualifying terms and phrases shall be clearly, conspicuously, and accurately set forth as follows: (A) in bold print and in type of a size that is capable of being read without unreasonable extra effort;

(B) in terms that are understandable to the buying public; and (C) in close proximity to the qualified representation and not separated or buried by asterisk in some other part of the advertisement. a (bb)(cc) An advertisement must disclose that a vehicle - - - - - ACTION ITEM - - - - containing any title brand or is a salvage vehicle with a branded title or salvage certificate. The disclosure shall ACTION: be made by inserting the terms “salvage certificate” or Don’t hide the brands. They must be in the same “branded title,” as appropriate: font, size, and follow year make and model. (i) immediately following the year, make, and model of the advertised salvage vehicle; and (ii) in the same typeface and point size as the typeface and font size used to advertise the year, make, and model of the salvage vehicle.

R877-23V-8. Signs and Identification Pursuant to Utah Code Ann. Section 41-3-105.

(1) Every dealer, dismantler, manufacturer, remanufacturer, transporter, crusher, body shop, and distributor must post a sign at its principal place of business. (2) The sign required under Subsection (1) shall: (a) plainly display in a permanent manner the name under which the business is licensed; (b) be at least 24 square feet in size, unless required otherwise, in writing, by a government entity; and (c) be painted on the building, attached to the building with permanent decals, nails or bolts, or affixed to posts that have been securely anchored in the ground. (3) A similar sign must be conspicuously posted at each additional place of business and must show, in addition, the address of the principal place of business. All signs must remain posted at each place of business and on the office. If the office is not located at the site on which the motor vehicles are displayed or offered for sale or exchange, the bonded dealer number, dismantler number, or manufacturer number must also be conspicuously displayed either on the sign or on the building.

(4) If the additional place of business is an auto show or similar business that will conduct business for ten days or less, the sign need only show the licensee’s name as licensed by the division and be of a size that reasonably identifies the licensee. a (5) Except as in (4) above, and except for dealers participating in an off-site trade show or exhibition involving five or more licensed dealers who are not under common ownership or control, if a new dealer applies for an additional place of business or a temporary off-site sales permit, the new dealer may not display, sell or offer for sale new vehicles in another new dealers relevant market area unless both dealers agree in writing prior to the event.

R877-23V-14. Dealer Identification of Fees Associated with Issuance of Temporary Permits Pursuant to Utah Code Ann. Sections 41-3-301 and 41-3-302.

(1) Only fees required by Title 41, Chapter 1a, may be identified as state-mandated fees. (2) A dealer that charges the purchaser or lessee of a motor vehicle a fee for preparing or processing any state- mandated documents or services (“dealer documentary service fees”) must, in addition to the requirements set forth in Subsection (1), prominently display a sign on the dealer premises in a location that is readily discernable by all purchasers and lessees. The sign shall contain the language set forth in Subsection (2)(a). (a) The (dealer documentary service fee) of ($ ) as set forth in your contract represents costs and profit to the dealer for preparing and processing documents and other services related to the sale or lease of your vehicle. These fees are not set or state mandated by state statute or rule. (b) The blank in Subsection (2)(a) may be wording selected by the dealer to describe the fee charged for document preparation and processing and other services, but must be, in all cases, the actual amount disclosed wording used in the dealer’s contract of sale or lease agreement.

R877-23V-16. Replacement or Renewal of Lost or Stolen Special Plates Pursuant to Utah Code Ann. Section 41-3-507. a A. A lost or stolen dealer, dismantler, manufacturer, remanufacturer, or transporter plate may be replaced upon the request of the licensee. Replacement of lost or stolen special plates are at the discretion of the Division. Replacement of a special plate may be available only upon availability of production of the special plate. only after it has expired. B. The replaced special plate shall be included in the calculation of special plates a dealer may be issued under Section 41-3-503.

NEW FORMS AVAILABLE

There are a few new forms to be aware of at this time. There is a couple that are completed and now available and some that will be coming.

New Forms Now Available • TC-656 - This form has been updated with an additional email address capture boxes. The new revised date on them is 11/20. • Form 5555 - Retail Installment Contract - The new Retail Installment Contract was developed in conjunction with the New Car Dealers Association to replace the Retail Installment Contract and Security Agreement Form. The new form will be less expensive and is now being accepted at local finanical institutions and many subprime financing organizations as well. The form is currently available in a 3 part form from our Midvale IDS office or online at www.idsinfo.com.

New Forms Coming • TC-656 - Recent legislative changes are requiring some additional changes to this form. If you haven’t updated your system to the 11/20 revision form, consider waiting until the new form becomes available. • Motor Vehicle Consignment Agreement - A new revised consignment agreement form will be available June 1st. Language has been updated after working with our insurance company contacts to give dealers better protection when selling a vehicle on consignment

FEDERAL CHANGES

NHTSA Odometer Rule Changes Disclosure Exemption from Ten Years to Twenty Years

On October 2, 2019, the National Highway Traffic Safety Administration (NHTSA) issued a final rule on Odometer Disclosure Requirements. One of the most important and immediate impacts of the final rule are new requirements regarding the capture of mileage disclosure for a significant number of previously exempted vehicles. The final rule amends 49 CFR 580.17 such that a transferor or lessee must disclose odometer mileage for an expanded number of vehicles extending beyond the previous exemption for vehicles with a model year of ten years to twenty years. This portion of the rule affects all U.S. jurisdictions regardless of their electronic titling intentions and provides an implementation methodology to incrementally expand the number of vehicles subject to odometer capture beginning January 1, 2021.

The new 20-year odometer capture exemption requirements apply only to vehicles that are 2011 model year or newer. Vehicles manufactured with a 2010 model year or older remain exempt under the 10-year exemption. Beginning January 1, 2021, and every year thereafter, states will be obligated to continue to capture odometer disclosures for model year 2011 and later vehicles. This type of “rolling” exemption is best described as adding an additional model year worth of vehicles each January until the 20-year exemption is fully implemented. Prior to this final rule, beginning on January 1, 2021, model year 2011 vehicles would have been exempt from odometer disclosure requirements. Now, model year 2011 vehicles will not become exempt from the requirements until January 1, 2031. Today states are required to capture the odometer reading for model year 2011 and will now be required to continue to do so until 2031. Additional information is available from the American Association of Motor Vehicles Administrators or the Used Car Dealers of Utah Association.

The table below is a visual example of application of the new requirements.

Odometer Exemption Applicability to Model Year Vehicles (49 CFR 580.17) Vehicle Applicability of Model Date Vehicle Becomes Exempt from Disclosure Exemption Year 2000 1/1/2010 10-year exemption 2001 1/1/2011 10-year exemption 2002 1/1/2012 10-year exemption 2003 1/1/2013 10-year exemption 2004 1/1/2014 10-year exemption 2005 1/1/2015 10-year exemption 2006 1/1/2016 10-year exemption 2007 1/1/2017 10-year exemption 2008 1/1/2018 10-year exemption 2009 1/1/2019 10-year exemption 2010 1/1/2020 10-year exemption

1/1/2031 2011 20-year exemption (continue to require odometer disclosure on model year 2011 until 1/1/31) 1/1/2032 2012 20-year exemption (continue to require odometer disclosure on model year 2012 until 1/1/32) 1/1/2033 2013 20-year exemption (continue to require odometer disclosure on model year 2013 until 1/1/33) 1/1/2034 2014 20-year exemption (continue to require odometer disclosure on model year 2014 until 1/1/34) 1/1/2035 2015 20-year exemption (continue to require odometer disclosure on model year 2015 until 1/1/35) 1/1/2036 2016 20-year exemption (continue to require odometer disclosure on model year 2016 until 1/1/36) 1/1/2037 2017 20-year exemption (continue to require odometer disclosure on model year 2017 until 1/1/37) 1/1/2038 2018 20-year exemption (continue to require odometer disclosure on model year 2018 until 1/1/38) 1/1/2039 2019 20-year exemption (continue to require odometer disclosure on model year 2019 until 1/1/39) 1/1/2040 2020 20-year exemption (continue to require odometer disclosure on model year 2020 until 1/1/40) 1/1/2041 2021 20-year exemption (continue to require odometer disclosure on model year 2021 until 1/1/41)

Odometer Rule Disclosure Exemption Change Whitepaper 3 New Forms Available – DEALER LICENSE RESOURCE GUIDE – Used Car Dealers of Utah UCDU Membership Application UCDU www.UtahDealers.com

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