CHAPTER 2. REGULATION OF VEHICLE MERCHANDISING
IC 9-23-2
Chapter 2. Regulation of Vehicle Merchandising
IC 9-23-2-1
Persons required to be licensed
Sec. 1. (a) The following persons must be licensed under thisarticle to engage in the business of buying or selling motor vehicles:
(1) An automobile auctioneer.
(2) A converter manufacturer.
(3) A dealer.
(4) A distributor.
(5) A distributor branch.
(6) A distributor representative.
(7) A factory branch.
(8) A factory representative.
(9) A manufacturer.
(10) A transfer dealer.
(11) A wholesale dealer.
(12) An automotive mobility dealer.
(b) An automotive mobility dealer who engages in the business of:
(1) selling, installing, or servicing;
(2) offering to sell, install, or service; or
(3) soliciting or advertising the sale, installation, or servicingof;
equipment or modifications specifically designed to facilitate use oroperation of a vehicle by an individual who is disabled or aged mustbe licensed under this article.
As added by P.L.2-1991, SEC.11. Amended by P.L.268-2003,SEC.25; P.L.147-2009, SEC.9.
IC 9-23-2-2 Version a
Application for license; affidavits; bonds
Note: This version of section amended by P.L.17-2010, SEC.1.See also following version of this section amended by P.L.93-2010,SEC.11.
Sec. 2. (a) An application for a license under this chapter must:
(1) be accompanied by the fee required under IC 9-29-8;
(2) be on a form prescribed by the secretary of state;
(3) contain the information the secretary of state considersnecessary to enable the secretary of state to determine fully thefollowing information:
(A) The qualifications and eligibility of the applicant toreceive the license.
(B) The location of each of the applicant's places of businessin Indiana.
(C) The ability of the applicant to conduct properly thebusiness for which the application is submitted; and
(4) contain evidence of a bond required in subsection (e).
(b) An application for a license as a dealer must show whether theapplicant proposes to sell new or used motor vehicles, or both. (c) An applicant who proposes to use the Internet or othercomputer network in aid of its sale of motor vehicles to consumersin Indiana, which activities may result in the creation of businessrecords outside Indiana, shall provide the division with the name,address, and telephone number of the person who has control ofthose business records. The secretary of state may not issue a licenseto a dealer who transacts business in this manner who does not havean established place of business in Indiana.
(d) This subsection applies to an application for a license as adealer in a city having a population of more than ninety thousand(90,000) but less than one hundred five thousand (105,000). Theapplication must include an affidavit from:
(1) the person charged with enforcing a zoning ordinancedescribed in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if oneexists;
who has jurisdiction over the real property where the applicant wantsto operate as a dealer. The affidavit must state that the proposedlocation is zoned for the operation of a dealer's establishment. Theapplicant may file the affidavit at any time after the filing of theapplication. However, the secretary of state may not issue a licenseuntil the applicant files the affidavit.
(e) This subsection does not apply to a person listed in thecategories set forth in section 1(a)(10) through 1(a)(12) of thischapter and that was licensed under this chapter before July 1, 2009.A licensee shall maintain a bond satisfactory to the secretary of statein the amount of twenty-five thousand dollars ($25,000), which must:
(1) be in favor of the state; and
(2) secure payment of fines, penalties, costs, and fees assessedby the secretary of state after notice, opportunity for a hearing,and opportunity for judicial review, in addition to securing thepayment of damages to a person aggrieved by a violation of thischapter by the licensee after a judgment has been issued.
(f) Service shall be made in accordance with the Indiana Rules ofTrial Procedure.
As added by P.L.2-1991, SEC.11. Amended by P.L.98-1997, SEC.1;P.L.74-2001, SEC.2; P.L.170-2002, SEC.74; P.L.184-2007, SEC.19;P.L.147-2009, SEC.10; P.L.17-2010, SEC.1.
IC 9-23-2-2 Version b
Application for license; affidavits; bonds; membership in riskretention group
Note: This version of section amended by P.L.93-2010, SEC.11.See also preceding version of this section amended by P.L.17-2010,SEC.1.
Sec. 2. (a) An application for a license under this chapter must:
(1) be accompanied by the fee required under IC 9-29-8;
(2) be on a form prescribed by the secretary of state;
(3) contain the information the secretary of state considersnecessary to enable the secretary of state to determine fully the
following information:
(A) The qualifications and eligibility of the applicant toreceive the license.
(B) The location of each of the applicant's places of businessin Indiana.
(C) The ability of the applicant to conduct properly thebusiness for which the application is submitted; and
(4) contain evidence of a bond required in subsection (e).
(b) An application for a license as a dealer must show whether theapplicant proposes to sell new or used motor vehicles, or both.
(c) An applicant who proposes to use the Internet or othercomputer network in aid of its sale of motor vehicles to consumersin Indiana, which activities may result in the creation of businessrecords outside Indiana, shall provide the division with the name,address, and telephone number of the person who has control ofthose business records. The secretary of state may not issue a licenseto a dealer who transacts business in this manner who does not havean established place of business in Indiana.
(d) This subsection applies to an application for a license as adealer in a city having a population of more than ninety thousand(90,000) but less than one hundred five thousand (105,000). Theapplication must include an affidavit from:
(1) the person charged with enforcing a zoning ordinancedescribed in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if oneexists;
who has jurisdiction over the real property where the applicant wantsto operate as a dealer. The affidavit must state that the proposedlocation is zoned for the operation of a dealer's establishment. Theapplicant may file the affidavit at any time after the filing of theapplication. However, the secretary of state may not issue a licenseuntil the applicant files the affidavit.
(e) A licensee shall maintain a bond satisfactory to the secretaryof state in the amount of twenty-five thousand dollars ($25,000),which must:
(1) be in favor of the state; and
(2) secure payment of fines, penalties, costs, and fees assessedby the secretary of state after notice, opportunity for a hearing,and opportunity for judicial review, in addition to securing thepayment of damages to a person aggrieved by a violation of thischapter by the licensee after a judgment has been issued.
(f) Service shall be made in accordance with the Indiana Rules ofTrial Procedure.
(g) Instead of meeting the requirement in subsection (e), alicensee may submit to the secretary of state evidence that thelicensee is a member of a risk retention group regulated by theIndiana department of insurance.
As added by P.L.2-1991, SEC.11. Amended by P.L.98-1997, SEC.1;P.L.74-2001, SEC.2; P.L.170-2002, SEC.74; P.L.184-2007, SEC.19;P.L.147-2009, SEC.10; P.L.93-2010, SEC.11.
IC 9-23-2-3
Franchise; filing with secretary of state
Sec. 3. A manufacturer, distributor, factory branch, distributorbranch, or dealer proposing to sell new motor vehicles shall file andmaintain with the secretary of state a current copy of each franchiseto which the person is a party, or, if multiple franchises are identicalexcept for stated items, a copy of the form franchise withsupplemental schedules of variations from the form.
As added by P.L.2-1991, SEC.11. Amended by P.L.184-2007,SEC.20.
IC 9-23-2-4
Display of license; change of business name or location; applicationfor approval of change; affidavit
Sec. 4. (a) The license issued to a factory branch, a distributorbranch, an automobile auctioneer, a transfer dealer, or a dealer underthis chapter must specify the location of each place of business andshall be conspicuously displayed at each business location.
(b) If a business name or location is changed, the holder shallnotify the secretary of state within ten (10) days and remit the feerequired under IC 9-29-8. The secretary of state shall endorse thatchange on the license if the secretary of state determines that thechange is not subject to other provisions of this article.
(c) A dealer who uses the Internet or other computer network tofacilitate the sale of motor vehicles as set forth in section 2(c) of thischapter shall notify the secretary of state within ten (10) days uponany change in the name, address, or telephone number of businessrecords located outside Indiana that have been created in transactionsmade in Indiana by the dealer. A report made under this subsectionis not subject to the fee required under IC 9-29-8-5.
(d) This subsection applies to a dealer in a city having apopulation of more than ninety thousand (90,000) but less than onehundred five thousand (105,000). A dealer who wants to change alocation must submit to the secretary of state an application forapproval of the change. The application must be accompanied by anaffidavit from:
(1) the person charged with enforcing a zoning ordinancedescribed in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if oneexists;
who has jurisdiction over the real property where the applicant wantsto operate as a dealer. The affidavit must state that the proposedlocation is zoned for the operation of a dealer's establishment. Thesecretary of state may not approve a change of location or endorse achange of location on the dealer's license until the dealer provides theaffidavit.
(e) For the purpose of this section, an offsite license issued undersection 7 of this chapter does not constitute a change of location.
As added by P.L.2-1991, SEC.11. Amended by P.L.98-1997, SEC.2;P.L.74-2001, SEC.3; P.L.170-2002, SEC.75; P.L.184-2007, SEC.21.
IC 9-23-2-5
License issued to representative; name of employer; change ofemployer; display of license; temporary license for representative
Sec. 5. The license issued to a factory representative or distributorrepresentative must state the name of the employer. Within ten (10)days after a change of employer, the holder shall mail the license tothe secretary of state and indicate the name and address of theholder's new employer. The secretary of state shall endorse thechange on the license and return the license to the licensee in care ofthe licensee's new employer. A factory representative, distributorrepresentative, or wholesale dealer must have a license whenengaged in business and shall display the license upon request. Atemporary license for a factory representative or distributorrepresentative may be issued for a period up to one hundred twenty(120) days pending investigation by the secretary of state of theapplicant's qualification for a license.
As added by P.L.2-1991, SEC.11. Amended by P.L.268-2003,SEC.26; P.L.184-2007, SEC.22.
IC 9-23-2-5.5
Application for and renewal of automotive mobility dealer's license
Sec. 5.5. The secretary of state shall, by rule adopted underIC 4-22-2, establish requirements for an initial application for andrenewal of an automotive mobility dealer's license. The rules mustinclude a requirement that each initial or renewal application for anautomotive mobility dealer's license include proof that the applicantis accredited through the Quality Assurance Program of the NationalMobility Equipment Dealers Association.
As added by P.L.147-2009, SEC.11.
IC 9-23-2-5.7
Automotive mobility dealers; display, inventory, advertising, andoffering for sale adapted vehicles
Sec. 5.7. An automotive mobility dealer licensed under thischapter is entitled to:
(1) display;
(2) inventory;
(3) advertise;
(4) offer for sale; or
(5) do any combination of subdivisions (1) through (4)concerning;
any adapted vehicle.
As added by P.L.147-2009, SEC.12.
IC 9-23-2-6
Vehicle sales made away from dealer's place of business andwithout offsite sales license; trade shows
Sec. 6. This section does not apply to sales made at a motorvehicle industry sponsored trade show. A dealer may not sell avehicle at a location away from the dealer's established place of
business without obtaining an offsite sales license under section 7 ofthis chapter.
As added by P.L.2-1991, SEC.11.
IC 9-23-2-7
Offsite sales license
Sec. 7. (a) Except as provided in subsections (b) through (g), thesecretary of state shall issue an offsite sales license to a dealerlicensed under this chapter who submits an application for thelicense not later than ten (10) business days or two (2) calendarweeks before the offsite sale date. License applications under thissection shall be made public upon the request of any person.
(b) The secretary of state may not issue an offsite sales license toa dealer who does not have an established place of business withinIndiana.
(c) The secretary of state may not issue an offsite sales license toa licensed dealer proposing to conduct the sale outside a radius oftwenty (20) miles from its established place of business. Thissubsection does not apply to:
(1) new manufactured housing dealers;
(2) recreational vehicle dealers;
(3) a rental company that is a dealer conducting a sale at a sitewithin twenty (20) miles of any of its company owned affiliates;or
(4) off-road vehicle dealers.
(d) A vehicle display is not considered an offsite sale if it isconducted by a new vehicle franchised dealer in an open area whereno sales personnel and no sales material are present.
(e) The secretary of state may not issue an offsite sales license toa licensed dealer proposing to conduct the offsite sale for more thanten (10) calendar days.
(f) As used in this subsection, "executive" has the meaning setforth in IC 36-1-2-5. The secretary of state may not issue an offsitesales license to a licensed dealer if the dealer does not haveauthorization that the offsite sale would be in compliance with localzoning ordinances or other local ordinances. Authorization under thissubsection may only be obtained from the following:
(1) If the offsite sale would be located within the corporateboundaries of a city or town, the executive of the city or town.
(2) If the offsite sale would be located outside the corporateboundaries of a city or town:
(A) except as provided in clause (B), the executive of thecounty; or
(B) if the city or town exercises zoning jurisdiction underIC 36-7-4-205(b) over the area where the offsite sale wouldbe located, the executive of the city or town.
(g) The secretary of state may not issue an offsite sales license toa licensed dealer who has held more than three (3) nonconsecutiveoffsite sales in the year ending on the date of the offsite sale forwhich the current license application is being submitted. (h) The requirements of section 2(c) of this chapter do not applyto the application or issuance of an offsite sales license under thissection.
As added by P.L.2-1991, SEC.11. Amended by P.L.99-1997, SEC.1;P.L.98-1997, SEC.3; P.L.268-2003, SEC.27; P.L.63-2006, SEC.1;P.L.184-2007, SEC.23; P.L.107-2008, SEC.13; P.L.131-2008,SEC.49.
IC 9-23-2-8
Duration of licenses; expiration schedule
Sec. 8. A license issued under this chapter is valid for a one (1)year period in accordance with the following schedule:
(1) A person whose business name begins with the letters Athrough B, inclusive, shall register before March 1 of each year.
(2) A person whose business name begins with the letters Cthrough D, inclusive, shall register before April 1 of each year.
(3) A person whose business name begins with the letters Ethrough G, inclusive, shall register before May 1 of each year.
(4) A person whose business name begins with the letters Hthrough I, inclusive, shall register before June 1 of each year.
(5) A person whose business name begins with the letters Jthrough L, inclusive, shall register before July 1 of each year.
(6) A person whose business name begins with the letters Mthrough O, inclusive, shall register before August 1 of eachyear.
(7) A person whose business name begins with the letters Pthrough R, inclusive, shall register before September 1 of eachyear.
(8) A person whose business name begins with the letters Sthrough T, inclusive, shall register before October 1 of eachyear.
(9) A person whose business name begins with the letters Uthrough Z, inclusive, shall register before November 1 of eachyear.
A sole proprietor shall register based upon the name of the soleproprietorship.
As added by P.L.2-1991, SEC.11. Amended by P.L.88-1996, SEC.3.
IC 9-23-2-9
Authority to transfer or assign motor vehicle title
Sec. 9. A person licensed under this article may transfer or assigna title for a motor vehicle.
As added by P.L.2-1991, SEC.11.
IC 9-23-2-10
Liability insurance or garage liability insurance coverage
Sec. 10. (a) A person licensed under this article shall furnishevidence that the person currently has liability insurance or garageliability insurance covering the person's place of business. The policymust have limits of not less than the following: (1) One hundred thousand dollars ($100,000) for bodily injuryto one (1) person.
(2) Three hundred thousand dollars ($300,000) for bodily injuryfor each accident.
(3) Fifty thousand dollars ($50,000) for property damage.
(b) The minimum amounts required by subsection (a) must bemaintained during the time the license is valid.
As added by P.L.2-1991, SEC.11. Amended by P.L.39-2000, SEC.9.
IC 9-23-2-11
Cessation of business activity
Sec. 11. A person who ceases a business activity for which alicense was issued under this chapter shall do the following:
(1) Notify the secretary of state of the date that the businessactivity will cease.
(2) Deliver all permanent dealer license plates and interimlicense plates issued to the person to the secretary of statewithin ten (10) days of the date the business activity will cease.
As added by P.L.2-1991, SEC.11. Amended by P.L.176-2001,SEC.10; P.L.184-2007, SEC.24; P.L.93-2010, SEC.12.
IC 9-23-2-12
Repealed
(Repealed by P.L.60-1994, SEC.3.)
IC 9-23-2-13
Deposit of revenues in motor vehicle highway account
Sec. 13. Except as provided in IC 9-29-1-5 and IC 9-29-8-7, allrevenues accruing to the secretary of state under this article shall bedeposited in the motor vehicle highway account.
As added by P.L.2-1991, SEC.11. Amended by P.L.184-2007,SEC.25; P.L.106-2008, SEC.29.
IC 9-23-2-14
Denial, suspension, or revocation of licenses; investigations; notice
Sec. 14. (a) The secretary of state may investigate a violation ofthis chapter. In conducting an investigation under this subsection, thesecretary of state may do the following:
(1) Administer oaths and affirmations.
(2) Subpoena witnesses and compel attendance.
(3) Take evidence.
(4) Require the production of documents or records that thesecretary of state determines are material to the investigation.
Upon a motion by the secretary of state, the court may order a personthat fails to obey a subpoena issued under subdivision (2) to obey thesubpoena.
(b) A person may not be excused from:
(1) obeying a subpoena issued by;
(2) attending a proceeding and testifying as ordered by; or
(3) otherwise producing evidence as ordered by;the secretary of state on grounds that the person's testimony orevidence may tend to incriminate the person or subject the person toa penalty or forfeiture. However, a person that asserts the privilegeagainst self-incrimination may not be prosecuted or subject to apenalty or forfeiture for any matter concerning the person's testimonyor evidence.
(c) Following an investigation under subsection (a), the secretaryof state may, without hearing, issue orders and notices that thesecretary of state determines to be in the public interest. Thesecretary of state may issue an order under this subsection denying,suspending, or revoking a license issued under this chapter for anyof the following:
(1) Material misrepresentation in the application for the licenseor other information filed with the secretary of state.
(2) Lack of fitness under the standards set forth in this article ora rule adopted by the secretary of state under this article.
(3) Willful failure to comply with the provisions of this articleor a rule adopted by the secretary of state under this article.
(4) Willful violation of a federal or state law relating to the sale,distribution, financing, or insuring of motor vehicles.
(5) Engaging in an unfair practice as set forth in this article ora rule adopted by the secretary of state under this article.
(6) Violating IC 23-2-2.7.
(7) Violating IC 9-19-1.
Except as otherwise provided, a denial, suspension, or revocation ofa license takes effect after the secretary of state makes adetermination and notice of the determination has been served uponthe affected person.
(d) Upon the entry of an order under subsection (c), the secretaryof state shall promptly notify all interested parties of the following:
(1) The date of issuance.
(2) The reasons for issuance.
(3) That, upon written request from a party, the matter will beset for hearing within fifteen (15) business days after receipt ofthe request.
(e) An order entered under subsection (c) remains in effect untilthe secretary of state:
(1) modifies or vacates the summary order; or
(2) conducts a hearing and issues a final determination.
(f) Revocation or suspension of a license of a manufacturer, adistributor, a factory branch, a distributor branch, a dealer, or anautomobile auctioneer may be limited to one (1) or more locations,to one (1) or more defined areas, or only to certain aspects of thebusiness.
(g) If the secretary of state conducts a hearing under this section,the secretary of state may depose any witness.
(h) In addition to all other remedies, the secretary of state mayseek the following remedies against a person that violates, attemptsto violate, or assists in a violation of or an attempt to violate thischapter: (1) An injunction.
(2) Appointment of a receiver or conservator.
(3) A civil penalty not to exceed five thousand dollars ($5,000)per violation.
(4) An action to enforce a civil penalty assessed undersubdivision (3).
(i) In a court proceeding initiated under this section in whichjudgment is awarded to the secretary of state, the secretary of stateis entitled to recover the costs and expenses of investigation, and thecourt shall include the costs in its final judgment.
As added by P.L.2-1991, SEC.11. Amended by P.L.210-2005,SEC.37; P.L.184-2007, SEC.26; P.L.106-2008, SEC.30.
IC 9-23-2-15
Sale of motor vehicle through Internet
Sec. 15. A dealer who sells a motor vehicle through the use of theInternet or other computer network shall deliver the motor vehicle tothe customer at the place of business of the dealer in Indiana.
As added by P.L.74-2001, SEC.4.
IC 9-23-2-16
Special event permits
Sec. 16. (a) A person licensed under this article shall be issued aspecial event permit from the secretary of state for a special eventmeeting the following conditions:
(1) The event is a vehicle auction conducted by auctioneerslicensed under IC 25-6.1-3.
(2) The vehicles to be auctioned are:
(A) at least fifteen (15) years old; or
(B) classified as classic, collector, or antique vehicles underrules adopted by the secretary of state.
(3) At least one hundred (100) vehicles will be auctioned duringthe special event.
(4) An application for a special event permit has been submittedto the secretary of state not later than thirty (30) days before thebeginning date of the special event.
(5) The application is accompanied by the permit fee requiredunder IC 9-29-8-6.5.
(b) Not more than two (2) special event permits may be issued bythe secretary of state within a twelve (12) month period to the sameapplicant.
As added by P.L.156-2006, SEC.2. Amended by P.L.184-2007,SEC.27.
IC 9-23-2-17
Appeals
Sec. 17. (a) An appeal may be taken from a final order of thesecretary of state under this chapter as follows:
(1) By an applicant for a license under this chapter, from a finalorder of the secretary of state concerning the application. (2) By a licensee, from a final order of the secretary of stateaffecting the licensee's license under this chapter.
(3) By a person against whom a civil penalty is imposed undersection 14 of this chapter, from the final order of the secretaryof state imposing the civil penalty.
(4) By a person named as a respondent in an investigation or aproceeding under section 14 of this chapter, from a final orderof the secretary of state under section 14 of this chapter. Anappeal under this subdivision may be taken in:
(A) the Marion County circuit court; or
(B) the circuit or superior court of the county in which theappellant resides or maintains a place of business.
(b) A person who seeks to appeal a final order of the secretary ofstate under this section must serve the secretary of state with thefollowing not more than twenty (20) days after the entry of the order:
(1) A written notice of the appeal stating:
(A) the court in which the appeal will be taken; and
(B) the grounds on which a reversal of the final order issought.
(2) A written demand from the appellant for:
(A) a certified transcript of the record; and
(B) all papers on file in the secretary of state's office;
concerning the order from which the appeal is being taken.
(3) A bond in the penal sum of five hundred dollars ($500)payable to the state with sufficient surety to be approved by thesecretary of state, conditioned upon:
(A) the faithful prosecution of the appeal to final judgment;and
(B) the payment of all costs that are adjudged against theappellant.
(c) Not later than ten (10) days after the secretary of state isserved with the items described in subsection (b), the secretary ofstate shall make, certify, and deliver to the appellant the transcriptdescribed in subsection (b)(2)(A). Not later than five (5) days afterthe appellant receives the transcript under this subsection, theappellant shall file the transcript and a copy of the notice of appealwith the clerk of the court. The notice of appeal serves as theappellant's complaint. The secretary of state may appear before thecourt, file any motion or pleading in the matter, and form the issue.The cause shall be entered on the court's calendar to be heard denovo and shall be given precedence over all matters pending in thecourt.
(d) The court shall receive and consider any pertinent oral orwritten evidence concerning the order of the secretary of state fromwhich the appeal is taken. If the order of the secretary of state isreversed, the court shall in its mandate specifically direct thesecretary of state as to the secretary of state's further action in thematter. The secretary of state is not barred from revoking or alteringthe order for any proper cause that accrues or is discovered after theorder is entered. If the order is affirmed, the appellant may, after
thirty (30) days from the date the order is affirmed, file a newapplication for a license under this chapter if the application is nototherwise barred or limited. During the pendency of the appeal, theorder from which the appeal is taken is not suspended but remains ineffect unless otherwise ordered by the court. An appeal may be takenfrom the judgment of the court on the same terms and conditions asan appeal is taken in civil actions.
(e) IC 4-21.5 does not apply to a proceeding under this chapter.
As added by P.L.106-2008, SEC.31.
IC 9-23-2-18
Dealer compliance account
Sec. 18. (a) The dealer compliance account is established as aseparate account to be administered by the secretary of state. Thefunds in the account must be available, with the approval of thebudget agency, for use in enforcing and administering this chapter.
(b) The expenses of administering the dealer compliance accountshall be paid from money in the account.
(c) The treasurer of state shall invest the money in the dealercompliance account not currently needed to meet the obligations ofthe account in the same manner as other public money may beinvested. Interest that accrues from these investments shall bedeposited in the account.
(d) The dealer compliance account consists of the following:
(1) Money deposited under:
(A) IC 9-29-5-43(b).
(B) IC 9-29-8-7(1).
(2) Appropriations to the account from other sources.
(3) Grants, gifts, donations, or transfers intended for deposit inthe account.
(4) Interest that accrues from money in the account.
(e) Money in the dealer compliance account at the end of a statefiscal year does not revert to the state general fund.
(f) Money in the dealer compliance account is continuouslyappropriated to the secretary of state for the purposes of the account.
As added by P.L.106-2008, SEC.32.