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 this
article 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 servicing
of;
equipment or modifications specifically designed to facilitate use or
operation of a vehicle by an individual who is disabled or aged must
be 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 considers
necessary to enable the secretary of state to determine fully the
following information:
(A) The qualifications and eligibility of the applicant to
receive the license.
(B) The location of each of the applicant's places of business
in Indiana.
(C) The ability of the applicant to conduct properly the
business 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 the
applicant proposes to sell new or used motor vehicles, or both.
(c) An applicant who proposes to use the Internet or other
computer network in aid of its sale of motor vehicles to consumers
in Indiana, which activities may result in the creation of business
records outside Indiana, shall provide the division with the name,
address, and telephone number of the person who has control of
those business records. The secretary of state may not issue a license
to a dealer who transacts business in this manner who does not have
an established place of business in Indiana.
(d) This subsection applies to an application for a license as a
dealer in a city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000). The
application must include an affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one
exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
applicant may file the affidavit at any time after the filing of the
application. However, the secretary of state may not issue a license
until the applicant files the affidavit.
(e) This subsection does not apply to a person listed in the
categories set forth in section 1(a)(10) through 1(a)(12) of this
chapter and that was licensed under this chapter before July 1, 2009.
A licensee shall maintain a bond satisfactory to the secretary of 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 assessed
by the secretary of state after notice, opportunity for a hearing,
and opportunity for judicial review, in addition to securing the
payment of damages to a person aggrieved by a violation of this
chapter by the licensee after a judgment has been issued.
(f) Service shall be made in accordance with the Indiana Rules of
Trial 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 risk
retention 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 considers
necessary to enable the secretary of state to determine fully the
following information:
(A) The qualifications and eligibility of the applicant to
receive the license.
(B) The location of each of the applicant's places of business
in Indiana.
(C) The ability of the applicant to conduct properly the
business 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 the
applicant proposes to sell new or used motor vehicles, or both.
(c) An applicant who proposes to use the Internet or other
computer network in aid of its sale of motor vehicles to consumers
in Indiana, which activities may result in the creation of business
records outside Indiana, shall provide the division with the name,
address, and telephone number of the person who has control of
those business records. The secretary of state may not issue a license
to a dealer who transacts business in this manner who does not have
an established place of business in Indiana.
(d) This subsection applies to an application for a license as a
dealer in a city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000). The
application must include an affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one
exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
applicant may file the affidavit at any time after the filing of the
application. However, the secretary of state may not issue a license
until the applicant files the affidavit.
(e) A licensee shall maintain a bond satisfactory to the secretary
of 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 assessed
by the secretary of state after notice, opportunity for a hearing,
and opportunity for judicial review, in addition to securing the
payment of damages to a person aggrieved by a violation of this
chapter by the licensee after a judgment has been issued.
(f) Service shall be made in accordance with the Indiana Rules of
Trial Procedure.
(g) Instead of meeting the requirement in subsection (e), a
licensee may submit to the secretary of state evidence that the
licensee is a member of a risk retention group regulated by the
Indiana 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, distributor
branch, or dealer proposing to sell new motor vehicles shall file and
maintain with the secretary of state a current copy of each franchise
to which the person is a party, or, if multiple franchises are identical
except for stated items, a copy of the form franchise with
supplemental 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; application
for approval of change; affidavit
Sec. 4. (a) The license issued to a factory branch, a distributor
branch, an automobile auctioneer, a transfer dealer, or a dealer under
this chapter must specify the location of each place of business and
shall be conspicuously displayed at each business location.
(b) If a business name or location is changed, the holder shall
notify the secretary of state within ten (10) days and remit the fee
required under IC 9-29-8. The secretary of state shall endorse that
change on the license if the secretary of state determines that the
change is not subject to other provisions of this article.
(c) A dealer who uses the Internet or other computer network to
facilitate the sale of motor vehicles as set forth in section 2(c) of this
chapter shall notify the secretary of state within ten (10) days upon
any change in the name, address, or telephone number of business
records located outside Indiana that have been created in transactions
made in Indiana by the dealer. A report made under this subsection
is not subject to the fee required under IC 9-29-8-5.
(d) This subsection applies to a dealer in a city having a
population of more than ninety thousand (90,000) but less than one
hundred five thousand (105,000). A dealer who wants to change a
location must submit to the secretary of state an application for
approval of the change. The application must be accompanied by an
affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one
exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
secretary of state may not approve a change of location or endorse a
change of location on the dealer's license until the dealer provides the
affidavit.
(e) For the purpose of this section, an offsite license issued under
section 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 of
employer; display of license; temporary license for representative
Sec. 5. The license issued to a factory representative or distributor
representative must state the name of the employer. Within ten (10)
days after a change of employer, the holder shall mail the license to
the secretary of state and indicate the name and address of the
holder's new employer. The secretary of state shall endorse the
change on the license and return the license to the licensee in care of
the licensee's new employer. A factory representative, distributor
representative, or wholesale dealer must have a license when
engaged in business and shall display the license upon request. A
temporary license for a factory representative or distributor
representative may be issued for a period up to one hundred twenty
(120) days pending investigation by the secretary of state of the
applicant'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 under
IC 4-22-2, establish requirements for an initial application for and
renewal of an automotive mobility dealer's license. The rules must
include a requirement that each initial or renewal application for an
automotive mobility dealer's license include proof that the applicant
is accredited through the Quality Assurance Program of the National
Mobility Equipment Dealers Association. As added by P.L.147-2009, SEC.11.
IC 9-23-2-5.7 Automotive mobility dealers; display, inventory, advertising, and
offering for sale adapted vehicles
Sec. 5.7. An automotive mobility dealer licensed under this
chapter 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 and
without offsite sales license; trade shows
Sec. 6. This section does not apply to sales made at a motor
vehicle industry sponsored trade show. A dealer may not sell a
vehicle at a location away from the dealer's established place of
business without obtaining an offsite sales license under section 7 of
this 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), the
secretary of state shall issue an offsite sales license to a dealer
licensed under this chapter who submits an application for the
license not later than ten (10) business days or two (2) calendar
weeks before the offsite sale date. License applications under this
section shall be made public upon the request of any person.
(b) The secretary of state may not issue an offsite sales license to
a dealer who does not have an established place of business within
Indiana.
(c) The secretary of state may not issue an offsite sales license to
a licensed dealer proposing to conduct the sale outside a radius of
twenty (20) miles from its established place of business. This
subsection 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 site
within 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 is
conducted by a new vehicle franchised dealer in an open area where
no sales personnel and no sales material are present.
(e) The secretary of state may not issue an offsite sales license to
a licensed dealer proposing to conduct the offsite sale for more than
ten (10) calendar days.
(f) As used in this subsection, "executive" has the meaning set
forth in IC 36-1-2-5. The secretary of state may not issue an offsite
sales license to a licensed dealer if the dealer does not have
authorization that the offsite sale would be in compliance with local
zoning ordinances or other local ordinances. Authorization under this
subsection may only be obtained from the following:
(1) If the offsite sale would be located within the corporate
boundaries of a city or town, the executive of the city or town.
(2) If the offsite sale would be located outside the corporate
boundaries of a city or town:
(A) except as provided in clause (B), the executive of the
county; or
(B) if the city or town exercises zoning jurisdiction under
IC 36-7-4-205(b) over the area where the offsite sale would
be located, the executive of the city or town.
(g) The secretary of state may not issue an offsite sales license to
a licensed dealer who has held more than three (3) nonconsecutive
offsite sales in the year ending on the date of the offsite sale for
which the current license application is being submitted.
(h) The requirements of section 2(c) of this chapter do not apply
to the application or issuance of an offsite sales license under this
section. 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 A
through B, inclusive, shall register before March 1 of each year.
(2) A person whose business name begins with the letters C
through D, inclusive, shall register before April 1 of each year.
(3) A person whose business name begins with the letters E
through G, inclusive, shall register before May 1 of each year.
(4) A person whose business name begins with the letters H
through I, inclusive, shall register before June 1 of each year.
(5) A person whose business name begins with the letters J
through L, inclusive, shall register before July 1 of each year.
(6) A person whose business name begins with the letters M
through O, inclusive, shall register before August 1 of each
year.
(7) A person whose business name begins with the letters P
through R, inclusive, shall register before September 1 of each
year.
(8) A person whose business name begins with the letters S
through T, inclusive, shall register before October 1 of each
year.
(9) A person whose business name begins with the letters U
through Z, inclusive, shall register before November 1 of each
year.
A sole proprietor shall register based upon the name of the sole
proprietorship. 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 assign
a 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 furnish
evidence that the person currently has liability insurance or garage
liability insurance covering the person's place of business. The policy
must have limits of not less than the following:
(1) One hundred thousand dollars ($100,000) for bodily injury
to one (1) person.
(2) Three hundred thousand dollars ($300,000) for bodily injury
for each accident.
(3) Fifty thousand dollars ($50,000) for property damage.
(b) The minimum amounts required by subsection (a) must be
maintained 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 a
license was issued under this chapter shall do the following:
(1) Notify the secretary of state of the date that the business
activity will cease.
(2) Deliver all permanent dealer license plates and interim
license plates issued to the person to the secretary of state
within 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, all
revenues accruing to the secretary of state under this article shall be
deposited 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 of
this chapter. In conducting an investigation under this subsection, the
secretary 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 the
secretary of state determines are material to the investigation.
Upon a motion by the secretary of state, the court may order a person
that fails to obey a subpoena issued under subdivision (2) to obey the
subpoena.
(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 or
evidence may tend to incriminate the person or subject the person to
a penalty or forfeiture. However, a person that asserts the privilege
against self-incrimination may not be prosecuted or subject to a
penalty or forfeiture for any matter concerning the person's testimony
or evidence.
(c) Following an investigation under subsection (a), the secretary
of state may, without hearing, issue orders and notices that the
secretary of state determines to be in the public interest. The
secretary of state may issue an order under this subsection denying,
suspending, or revoking a license issued under this chapter for any
of the following:
(1) Material misrepresentation in the application for the license
or other information filed with the secretary of state.
(2) Lack of fitness under the standards set forth in this article or
a rule adopted by the secretary of state under this article.
(3) Willful failure to comply with the provisions of this article
or 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 or
a 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 of
a license takes effect after the secretary of state makes a
determination and notice of the determination has been served upon
the affected person.
(d) Upon the entry of an order under subsection (c), the secretary
of 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 be
set for hearing within fifteen (15) business days after receipt of
the request.
(e) An order entered under subsection (c) remains in effect until
the 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, a
distributor, a factory branch, a distributor branch, a dealer, or an
automobile auctioneer may be limited to one (1) or more locations,
to one (1) or more defined areas, or only to certain aspects of the
business.
(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 may
seek the following remedies against a person that violates, attempts
to violate, or assists in a violation of or an attempt to violate this
chapter:
(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 under
subdivision (3).
(i) In a court proceeding initiated under this section in which
judgment is awarded to the secretary of state, the secretary of state
is entitled to recover the costs and expenses of investigation, and the
court 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 the
Internet or other computer network shall deliver the motor vehicle to
the 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 a
special event permit from the secretary of state for a special event
meeting the following conditions:
(1) The event is a vehicle auction conducted by auctioneers
licensed 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 under
rules adopted by the secretary of state.
(3) At least one hundred (100) vehicles will be auctioned during
the special event.
(4) An application for a special event permit has been submitted
to the secretary of state not later than thirty (30) days before the
beginning date of the special event.
(5) The application is accompanied by the permit fee required
under IC 9-29-8-6.5.
(b) Not more than two (2) special event permits may be issued by
the secretary of state within a twelve (12) month period to the same
applicant. 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 the
secretary of state under this chapter as follows:
(1) By an applicant for a license under this chapter, from a final
order of the secretary of state concerning the application.
(2) By a licensee, from a final order of the secretary of state
affecting the licensee's license under this chapter.
(3) By a person against whom a civil penalty is imposed under
section 14 of this chapter, from the final order of the secretary
of state imposing the civil penalty.
(4) By a person named as a respondent in an investigation or a
proceeding under section 14 of this chapter, from a final order
of the secretary of state under section 14 of this chapter. An
appeal 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 the
appellant resides or maintains a place of business.
(b) A person who seeks to appeal a final order of the secretary of
state under this section must serve the secretary of state with the
following 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 is
sought.
(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 the
secretary 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 the
appellant.
(c) Not later than ten (10) days after the secretary of state is
served with the items described in subsection (b), the secretary of
state shall make, certify, and deliver to the appellant the transcript
described in subsection (b)(2)(A). Not later than five (5) days after
the appellant receives the transcript under this subsection, the
appellant shall file the transcript and a copy of the notice of appeal
with the clerk of the court. The notice of appeal serves as the
appellant's complaint. The secretary of state may appear before the
court, 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 de
novo and shall be given precedence over all matters pending in the
court.
(d) The court shall receive and consider any pertinent oral or
written evidence concerning the order of the secretary of state from
which the appeal is taken. If the order of the secretary of state is
reversed, the court shall in its mandate specifically direct the
secretary of state as to the secretary of state's further action in the
matter. The secretary of state is not barred from revoking or altering
the order for any proper cause that accrues or is discovered after the
order is entered. If the order is affirmed, the appellant may, after
thirty (30) days from the date the order is affirmed, file a new
application for a license under this chapter if the application is not
otherwise barred or limited. During the pendency of the appeal, the
order from which the appeal is taken is not suspended but remains in
effect unless otherwise ordered by the court. An appeal may be taken
from the judgment of the court on the same terms and conditions as
an 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 a
separate account to be administered by the secretary of state. The
funds in the account must be available, with the approval of the
budget agency, for use in enforcing and administering this chapter.
(b) The expenses of administering the dealer compliance account
shall be paid from money in the account.
(c) The treasurer of state shall invest the money in the dealer
compliance account not currently needed to meet the obligations of
the account in the same manner as other public money may be
invested. Interest that accrues from these investments shall be
deposited 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 in
the account.
(4) Interest that accrues from money in the account.
(e) Money in the dealer compliance account at the end of a state
fiscal year does not revert to the state general fund.
(f) Money in the dealer compliance account is continuously
appropriated to the secretary of state for the purposes of the account. As added by P.L.106-2008, SEC.32.
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 this
article 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 servicing
of;
equipment or modifications specifically designed to facilitate use or
operation of a vehicle by an individual who is disabled or aged must
be 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 considers
necessary to enable the secretary of state to determine fully the
following information:
(A) The qualifications and eligibility of the applicant to
receive the license.
(B) The location of each of the applicant's places of business
in Indiana.
(C) The ability of the applicant to conduct properly the
business 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 the
applicant proposes to sell new or used motor vehicles, or both.
(c) An applicant who proposes to use the Internet or other
computer network in aid of its sale of motor vehicles to consumers
in Indiana, which activities may result in the creation of business
records outside Indiana, shall provide the division with the name,
address, and telephone number of the person who has control of
those business records. The secretary of state may not issue a license
to a dealer who transacts business in this manner who does not have
an established place of business in Indiana.
(d) This subsection applies to an application for a license as a
dealer in a city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000). The
application must include an affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one
exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
applicant may file the affidavit at any time after the filing of the
application. However, the secretary of state may not issue a license
until the applicant files the affidavit.
(e) This subsection does not apply to a person listed in the
categories set forth in section 1(a)(10) through 1(a)(12) of this
chapter and that was licensed under this chapter before July 1, 2009.
A licensee shall maintain a bond satisfactory to the secretary of 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 assessed
by the secretary of state after notice, opportunity for a hearing,
and opportunity for judicial review, in addition to securing the
payment of damages to a person aggrieved by a violation of this
chapter by the licensee after a judgment has been issued.
(f) Service shall be made in accordance with the Indiana Rules of
Trial 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 risk
retention 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 considers
necessary to enable the secretary of state to determine fully the
following information:
(A) The qualifications and eligibility of the applicant to
receive the license.
(B) The location of each of the applicant's places of business
in Indiana.
(C) The ability of the applicant to conduct properly the
business 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 the
applicant proposes to sell new or used motor vehicles, or both.
(c) An applicant who proposes to use the Internet or other
computer network in aid of its sale of motor vehicles to consumers
in Indiana, which activities may result in the creation of business
records outside Indiana, shall provide the division with the name,
address, and telephone number of the person who has control of
those business records. The secretary of state may not issue a license
to a dealer who transacts business in this manner who does not have
an established place of business in Indiana.
(d) This subsection applies to an application for a license as a
dealer in a city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000). The
application must include an affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one
exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
applicant may file the affidavit at any time after the filing of the
application. However, the secretary of state may not issue a license
until the applicant files the affidavit.
(e) A licensee shall maintain a bond satisfactory to the secretary
of 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 assessed
by the secretary of state after notice, opportunity for a hearing,
and opportunity for judicial review, in addition to securing the
payment of damages to a person aggrieved by a violation of this
chapter by the licensee after a judgment has been issued.
(f) Service shall be made in accordance with the Indiana Rules of
Trial Procedure.
(g) Instead of meeting the requirement in subsection (e), a
licensee may submit to the secretary of state evidence that the
licensee is a member of a risk retention group regulated by the
Indiana 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, distributor
branch, or dealer proposing to sell new motor vehicles shall file and
maintain with the secretary of state a current copy of each franchise
to which the person is a party, or, if multiple franchises are identical
except for stated items, a copy of the form franchise with
supplemental 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; application
for approval of change; affidavit
Sec. 4. (a) The license issued to a factory branch, a distributor
branch, an automobile auctioneer, a transfer dealer, or a dealer under
this chapter must specify the location of each place of business and
shall be conspicuously displayed at each business location.
(b) If a business name or location is changed, the holder shall
notify the secretary of state within ten (10) days and remit the fee
required under IC 9-29-8. The secretary of state shall endorse that
change on the license if the secretary of state determines that the
change is not subject to other provisions of this article.
(c) A dealer who uses the Internet or other computer network to
facilitate the sale of motor vehicles as set forth in section 2(c) of this
chapter shall notify the secretary of state within ten (10) days upon
any change in the name, address, or telephone number of business
records located outside Indiana that have been created in transactions
made in Indiana by the dealer. A report made under this subsection
is not subject to the fee required under IC 9-29-8-5.
(d) This subsection applies to a dealer in a city having a
population of more than ninety thousand (90,000) but less than one
hundred five thousand (105,000). A dealer who wants to change a
location must submit to the secretary of state an application for
approval of the change. The application must be accompanied by an
affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one
exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
secretary of state may not approve a change of location or endorse a
change of location on the dealer's license until the dealer provides the
affidavit.
(e) For the purpose of this section, an offsite license issued under
section 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 of
employer; display of license; temporary license for representative
Sec. 5. The license issued to a factory representative or distributor
representative must state the name of the employer. Within ten (10)
days after a change of employer, the holder shall mail the license to
the secretary of state and indicate the name and address of the
holder's new employer. The secretary of state shall endorse the
change on the license and return the license to the licensee in care of
the licensee's new employer. A factory representative, distributor
representative, or wholesale dealer must have a license when
engaged in business and shall display the license upon request. A
temporary license for a factory representative or distributor
representative may be issued for a period up to one hundred twenty
(120) days pending investigation by the secretary of state of the
applicant'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 under
IC 4-22-2, establish requirements for an initial application for and
renewal of an automotive mobility dealer's license. The rules must
include a requirement that each initial or renewal application for an
automotive mobility dealer's license include proof that the applicant
is accredited through the Quality Assurance Program of the National
Mobility Equipment Dealers Association. As added by P.L.147-2009, SEC.11.
IC 9-23-2-5.7 Automotive mobility dealers; display, inventory, advertising, and
offering for sale adapted vehicles
Sec. 5.7. An automotive mobility dealer licensed under this
chapter 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 and
without offsite sales license; trade shows
Sec. 6. This section does not apply to sales made at a motor
vehicle industry sponsored trade show. A dealer may not sell a
vehicle at a location away from the dealer's established place of
business without obtaining an offsite sales license under section 7 of
this 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), the
secretary of state shall issue an offsite sales license to a dealer
licensed under this chapter who submits an application for the
license not later than ten (10) business days or two (2) calendar
weeks before the offsite sale date. License applications under this
section shall be made public upon the request of any person.
(b) The secretary of state may not issue an offsite sales license to
a dealer who does not have an established place of business within
Indiana.
(c) The secretary of state may not issue an offsite sales license to
a licensed dealer proposing to conduct the sale outside a radius of
twenty (20) miles from its established place of business. This
subsection 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 site
within 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 is
conducted by a new vehicle franchised dealer in an open area where
no sales personnel and no sales material are present.
(e) The secretary of state may not issue an offsite sales license to
a licensed dealer proposing to conduct the offsite sale for more than
ten (10) calendar days.
(f) As used in this subsection, "executive" has the meaning set
forth in IC 36-1-2-5. The secretary of state may not issue an offsite
sales license to a licensed dealer if the dealer does not have
authorization that the offsite sale would be in compliance with local
zoning ordinances or other local ordinances. Authorization under this
subsection may only be obtained from the following:
(1) If the offsite sale would be located within the corporate
boundaries of a city or town, the executive of the city or town.
(2) If the offsite sale would be located outside the corporate
boundaries of a city or town:
(A) except as provided in clause (B), the executive of the
county; or
(B) if the city or town exercises zoning jurisdiction under
IC 36-7-4-205(b) over the area where the offsite sale would
be located, the executive of the city or town.
(g) The secretary of state may not issue an offsite sales license to
a licensed dealer who has held more than three (3) nonconsecutive
offsite sales in the year ending on the date of the offsite sale for
which the current license application is being submitted.
(h) The requirements of section 2(c) of this chapter do not apply
to the application or issuance of an offsite sales license under this
section. 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 A
through B, inclusive, shall register before March 1 of each year.
(2) A person whose business name begins with the letters C
through D, inclusive, shall register before April 1 of each year.
(3) A person whose business name begins with the letters E
through G, inclusive, shall register before May 1 of each year.
(4) A person whose business name begins with the letters H
through I, inclusive, shall register before June 1 of each year.
(5) A person whose business name begins with the letters J
through L, inclusive, shall register before July 1 of each year.
(6) A person whose business name begins with the letters M
through O, inclusive, shall register before August 1 of each
year.
(7) A person whose business name begins with the letters P
through R, inclusive, shall register before September 1 of each
year.
(8) A person whose business name begins with the letters S
through T, inclusive, shall register before October 1 of each
year.
(9) A person whose business name begins with the letters U
through Z, inclusive, shall register before November 1 of each
year.
A sole proprietor shall register based upon the name of the sole
proprietorship. 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 assign
a 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 furnish
evidence that the person currently has liability insurance or garage
liability insurance covering the person's place of business. The policy
must have limits of not less than the following:
(1) One hundred thousand dollars ($100,000) for bodily injury
to one (1) person.
(2) Three hundred thousand dollars ($300,000) for bodily injury
for each accident.
(3) Fifty thousand dollars ($50,000) for property damage.
(b) The minimum amounts required by subsection (a) must be
maintained 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 a
license was issued under this chapter shall do the following:
(1) Notify the secretary of state of the date that the business
activity will cease.
(2) Deliver all permanent dealer license plates and interim
license plates issued to the person to the secretary of state
within 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, all
revenues accruing to the secretary of state under this article shall be
deposited 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 of
this chapter. In conducting an investigation under this subsection, the
secretary 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 the
secretary of state determines are material to the investigation.
Upon a motion by the secretary of state, the court may order a person
that fails to obey a subpoena issued under subdivision (2) to obey the
subpoena.
(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 or
evidence may tend to incriminate the person or subject the person to
a penalty or forfeiture. However, a person that asserts the privilege
against self-incrimination may not be prosecuted or subject to a
penalty or forfeiture for any matter concerning the person's testimony
or evidence.
(c) Following an investigation under subsection (a), the secretary
of state may, without hearing, issue orders and notices that the
secretary of state determines to be in the public interest. The
secretary of state may issue an order under this subsection denying,
suspending, or revoking a license issued under this chapter for any
of the following:
(1) Material misrepresentation in the application for the license
or other information filed with the secretary of state.
(2) Lack of fitness under the standards set forth in this article or
a rule adopted by the secretary of state under this article.
(3) Willful failure to comply with the provisions of this article
or 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 or
a 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 of
a license takes effect after the secretary of state makes a
determination and notice of the determination has been served upon
the affected person.
(d) Upon the entry of an order under subsection (c), the secretary
of 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 be
set for hearing within fifteen (15) business days after receipt of
the request.
(e) An order entered under subsection (c) remains in effect until
the 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, a
distributor, a factory branch, a distributor branch, a dealer, or an
automobile auctioneer may be limited to one (1) or more locations,
to one (1) or more defined areas, or only to certain aspects of the
business.
(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 may
seek the following remedies against a person that violates, attempts
to violate, or assists in a violation of or an attempt to violate this
chapter:
(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 under
subdivision (3).
(i) In a court proceeding initiated under this section in which
judgment is awarded to the secretary of state, the secretary of state
is entitled to recover the costs and expenses of investigation, and the
court 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 the
Internet or other computer network shall deliver the motor vehicle to
the 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 a
special event permit from the secretary of state for a special event
meeting the following conditions:
(1) The event is a vehicle auction conducted by auctioneers
licensed 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 under
rules adopted by the secretary of state.
(3) At least one hundred (100) vehicles will be auctioned during
the special event.
(4) An application for a special event permit has been submitted
to the secretary of state not later than thirty (30) days before the
beginning date of the special event.
(5) The application is accompanied by the permit fee required
under IC 9-29-8-6.5.
(b) Not more than two (2) special event permits may be issued by
the secretary of state within a twelve (12) month period to the same
applicant. 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 the
secretary of state under this chapter as follows:
(1) By an applicant for a license under this chapter, from a final
order of the secretary of state concerning the application.
(2) By a licensee, from a final order of the secretary of state
affecting the licensee's license under this chapter.
(3) By a person against whom a civil penalty is imposed under
section 14 of this chapter, from the final order of the secretary
of state imposing the civil penalty.
(4) By a person named as a respondent in an investigation or a
proceeding under section 14 of this chapter, from a final order
of the secretary of state under section 14 of this chapter. An
appeal 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 the
appellant resides or maintains a place of business.
(b) A person who seeks to appeal a final order of the secretary of
state under this section must serve the secretary of state with the
following 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 is
sought.
(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 the
secretary 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 the
appellant.
(c) Not later than ten (10) days after the secretary of state is
served with the items described in subsection (b), the secretary of
state shall make, certify, and deliver to the appellant the transcript
described in subsection (b)(2)(A). Not later than five (5) days after
the appellant receives the transcript under this subsection, the
appellant shall file the transcript and a copy of the notice of appeal
with the clerk of the court. The notice of appeal serves as the
appellant's complaint. The secretary of state may appear before the
court, 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 de
novo and shall be given precedence over all matters pending in the
court.
(d) The court shall receive and consider any pertinent oral or
written evidence concerning the order of the secretary of state from
which the appeal is taken. If the order of the secretary of state is
reversed, the court shall in its mandate specifically direct the
secretary of state as to the secretary of state's further action in the
matter. The secretary of state is not barred from revoking or altering
the order for any proper cause that accrues or is discovered after the
order is entered. If the order is affirmed, the appellant may, after
thirty (30) days from the date the order is affirmed, file a new
application for a license under this chapter if the application is not
otherwise barred or limited. During the pendency of the appeal, the
order from which the appeal is taken is not suspended but remains in
effect unless otherwise ordered by the court. An appeal may be taken
from the judgment of the court on the same terms and conditions as
an 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 a
separate account to be administered by the secretary of state. The
funds in the account must be available, with the approval of the
budget agency, for use in enforcing and administering this chapter.
(b) The expenses of administering the dealer compliance account
shall be paid from money in the account.
(c) The treasurer of state shall invest the money in the dealer
compliance account not currently needed to meet the obligations of
the account in the same manner as other public money may be
invested. Interest that accrues from these investments shall be
deposited 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 in
the account.
(4) Interest that accrues from money in the account.
(e) Money in the dealer compliance account at the end of a state
fiscal year does not revert to the state general fund.
(f) Money in the dealer compliance account is continuously
appropriated to the secretary of state for the purposes of the account. As added by P.L.106-2008, SEC.32.
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 this
article 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 servicing
of;
equipment or modifications specifically designed to facilitate use or
operation of a vehicle by an individual who is disabled or aged must
be 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 considers
necessary to enable the secretary of state to determine fully the
following information:
(A) The qualifications and eligibility of the applicant to
receive the license.
(B) The location of each of the applicant's places of business
in Indiana.
(C) The ability of the applicant to conduct properly the
business 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 the
applicant proposes to sell new or used motor vehicles, or both.
(c) An applicant who proposes to use the Internet or other
computer network in aid of its sale of motor vehicles to consumers
in Indiana, which activities may result in the creation of business
records outside Indiana, shall provide the division with the name,
address, and telephone number of the person who has control of
those business records. The secretary of state may not issue a license
to a dealer who transacts business in this manner who does not have
an established place of business in Indiana.
(d) This subsection applies to an application for a license as a
dealer in a city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000). The
application must include an affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one
exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
applicant may file the affidavit at any time after the filing of the
application. However, the secretary of state may not issue a license
until the applicant files the affidavit.
(e) This subsection does not apply to a person listed in the
categories set forth in section 1(a)(10) through 1(a)(12) of this
chapter and that was licensed under this chapter before July 1, 2009.
A licensee shall maintain a bond satisfactory to the secretary of 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 assessed
by the secretary of state after notice, opportunity for a hearing,
and opportunity for judicial review, in addition to securing the
payment of damages to a person aggrieved by a violation of this
chapter by the licensee after a judgment has been issued.
(f) Service shall be made in accordance with the Indiana Rules of
Trial 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 risk
retention 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 considers
necessary to enable the secretary of state to determine fully the
following information:
(A) The qualifications and eligibility of the applicant to
receive the license.
(B) The location of each of the applicant's places of business
in Indiana.
(C) The ability of the applicant to conduct properly the
business 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 the
applicant proposes to sell new or used motor vehicles, or both.
(c) An applicant who proposes to use the Internet or other
computer network in aid of its sale of motor vehicles to consumers
in Indiana, which activities may result in the creation of business
records outside Indiana, shall provide the division with the name,
address, and telephone number of the person who has control of
those business records. The secretary of state may not issue a license
to a dealer who transacts business in this manner who does not have
an established place of business in Indiana.
(d) This subsection applies to an application for a license as a
dealer in a city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000). The
application must include an affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one
exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
applicant may file the affidavit at any time after the filing of the
application. However, the secretary of state may not issue a license
until the applicant files the affidavit.
(e) A licensee shall maintain a bond satisfactory to the secretary
of 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 assessed
by the secretary of state after notice, opportunity for a hearing,
and opportunity for judicial review, in addition to securing the
payment of damages to a person aggrieved by a violation of this
chapter by the licensee after a judgment has been issued.
(f) Service shall be made in accordance with the Indiana Rules of
Trial Procedure.
(g) Instead of meeting the requirement in subsection (e), a
licensee may submit to the secretary of state evidence that the
licensee is a member of a risk retention group regulated by the
Indiana 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, distributor
branch, or dealer proposing to sell new motor vehicles shall file and
maintain with the secretary of state a current copy of each franchise
to which the person is a party, or, if multiple franchises are identical
except for stated items, a copy of the form franchise with
supplemental 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; application
for approval of change; affidavit
Sec. 4. (a) The license issued to a factory branch, a distributor
branch, an automobile auctioneer, a transfer dealer, or a dealer under
this chapter must specify the location of each place of business and
shall be conspicuously displayed at each business location.
(b) If a business name or location is changed, the holder shall
notify the secretary of state within ten (10) days and remit the fee
required under IC 9-29-8. The secretary of state shall endorse that
change on the license if the secretary of state determines that the
change is not subject to other provisions of this article.
(c) A dealer who uses the Internet or other computer network to
facilitate the sale of motor vehicles as set forth in section 2(c) of this
chapter shall notify the secretary of state within ten (10) days upon
any change in the name, address, or telephone number of business
records located outside Indiana that have been created in transactions
made in Indiana by the dealer. A report made under this subsection
is not subject to the fee required under IC 9-29-8-5.
(d) This subsection applies to a dealer in a city having a
population of more than ninety thousand (90,000) but less than one
hundred five thousand (105,000). A dealer who wants to change a
location must submit to the secretary of state an application for
approval of the change. The application must be accompanied by an
affidavit from:
(1) the person charged with enforcing a zoning ordinance
described in this subsection; or
(2) the zoning enforcement officer under IC 36-7-4, if one
exists;
who has jurisdiction over the real property where the applicant wants
to operate as a dealer. The affidavit must state that the proposed
location is zoned for the operation of a dealer's establishment. The
secretary of state may not approve a change of location or endorse a
change of location on the dealer's license until the dealer provides the
affidavit.
(e) For the purpose of this section, an offsite license issued under
section 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 of
employer; display of license; temporary license for representative
Sec. 5. The license issued to a factory representative or distributor
representative must state the name of the employer. Within ten (10)
days after a change of employer, the holder shall mail the license to
the secretary of state and indicate the name and address of the
holder's new employer. The secretary of state shall endorse the
change on the license and return the license to the licensee in care of
the licensee's new employer. A factory representative, distributor
representative, or wholesale dealer must have a license when
engaged in business and shall display the license upon request. A
temporary license for a factory representative or distributor
representative may be issued for a period up to one hundred twenty
(120) days pending investigation by the secretary of state of the
applicant'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 under
IC 4-22-2, establish requirements for an initial application for and
renewal of an automotive mobility dealer's license. The rules must
include a requirement that each initial or renewal application for an
automotive mobility dealer's license include proof that the applicant
is accredited through the Quality Assurance Program of the National
Mobility Equipment Dealers Association. As added by P.L.147-2009, SEC.11.
IC 9-23-2-5.7 Automotive mobility dealers; display, inventory, advertising, and
offering for sale adapted vehicles
Sec. 5.7. An automotive mobility dealer licensed under this
chapter 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 and
without offsite sales license; trade shows
Sec. 6. This section does not apply to sales made at a motor
vehicle industry sponsored trade show. A dealer may not sell a
vehicle at a location away from the dealer's established place of
business without obtaining an offsite sales license under section 7 of
this 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), the
secretary of state shall issue an offsite sales license to a dealer
licensed under this chapter who submits an application for the
license not later than ten (10) business days or two (2) calendar
weeks before the offsite sale date. License applications under this
section shall be made public upon the request of any person.
(b) The secretary of state may not issue an offsite sales license to
a dealer who does not have an established place of business within
Indiana.
(c) The secretary of state may not issue an offsite sales license to
a licensed dealer proposing to conduct the sale outside a radius of
twenty (20) miles from its established place of business. This
subsection 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 site
within 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 is
conducted by a new vehicle franchised dealer in an open area where
no sales personnel and no sales material are present.
(e) The secretary of state may not issue an offsite sales license to
a licensed dealer proposing to conduct the offsite sale for more than
ten (10) calendar days.
(f) As used in this subsection, "executive" has the meaning set
forth in IC 36-1-2-5. The secretary of state may not issue an offsite
sales license to a licensed dealer if the dealer does not have
authorization that the offsite sale would be in compliance with local
zoning ordinances or other local ordinances. Authorization under this
subsection may only be obtained from the following:
(1) If the offsite sale would be located within the corporate
boundaries of a city or town, the executive of the city or town.
(2) If the offsite sale would be located outside the corporate
boundaries of a city or town:
(A) except as provided in clause (B), the executive of the
county; or
(B) if the city or town exercises zoning jurisdiction under
IC 36-7-4-205(b) over the area where the offsite sale would
be located, the executive of the city or town.
(g) The secretary of state may not issue an offsite sales license to
a licensed dealer who has held more than three (3) nonconsecutive
offsite sales in the year ending on the date of the offsite sale for
which the current license application is being submitted.
(h) The requirements of section 2(c) of this chapter do not apply
to the application or issuance of an offsite sales license under this
section. 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 A
through B, inclusive, shall register before March 1 of each year.
(2) A person whose business name begins with the letters C
through D, inclusive, shall register before April 1 of each year.
(3) A person whose business name begins with the letters E
through G, inclusive, shall register before May 1 of each year.
(4) A person whose business name begins with the letters H
through I, inclusive, shall register before June 1 of each year.
(5) A person whose business name begins with the letters J
through L, inclusive, shall register before July 1 of each year.
(6) A person whose business name begins with the letters M
through O, inclusive, shall register before August 1 of each
year.
(7) A person whose business name begins with the letters P
through R, inclusive, shall register before September 1 of each
year.
(8) A person whose business name begins with the letters S
through T, inclusive, shall register before October 1 of each
year.
(9) A person whose business name begins with the letters U
through Z, inclusive, shall register before November 1 of each
year.
A sole proprietor shall register based upon the name of the sole
proprietorship. 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 assign
a 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 furnish
evidence that the person currently has liability insurance or garage
liability insurance covering the person's place of business. The policy
must have limits of not less than the following:
(1) One hundred thousand dollars ($100,000) for bodily injury
to one (1) person.
(2) Three hundred thousand dollars ($300,000) for bodily injury
for each accident.
(3) Fifty thousand dollars ($50,000) for property damage.
(b) The minimum amounts required by subsection (a) must be
maintained 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 a
license was issued under this chapter shall do the following:
(1) Notify the secretary of state of the date that the business
activity will cease.
(2) Deliver all permanent dealer license plates and interim
license plates issued to the person to the secretary of state
within 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, all
revenues accruing to the secretary of state under this article shall be
deposited 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 of
this chapter. In conducting an investigation under this subsection, the
secretary 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 the
secretary of state determines are material to the investigation.
Upon a motion by the secretary of state, the court may order a person
that fails to obey a subpoena issued under subdivision (2) to obey the
subpoena.
(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 or
evidence may tend to incriminate the person or subject the person to
a penalty or forfeiture. However, a person that asserts the privilege
against self-incrimination may not be prosecuted or subject to a
penalty or forfeiture for any matter concerning the person's testimony
or evidence.
(c) Following an investigation under subsection (a), the secretary
of state may, without hearing, issue orders and notices that the
secretary of state determines to be in the public interest. The
secretary of state may issue an order under this subsection denying,
suspending, or revoking a license issued under this chapter for any
of the following:
(1) Material misrepresentation in the application for the license
or other information filed with the secretary of state.
(2) Lack of fitness under the standards set forth in this article or
a rule adopted by the secretary of state under this article.
(3) Willful failure to comply with the provisions of this article
or 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 or
a 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 of
a license takes effect after the secretary of state makes a
determination and notice of the determination has been served upon
the affected person.
(d) Upon the entry of an order under subsection (c), the secretary
of 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 be
set for hearing within fifteen (15) business days after receipt of
the request.
(e) An order entered under subsection (c) remains in effect until
the 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, a
distributor, a factory branch, a distributor branch, a dealer, or an
automobile auctioneer may be limited to one (1) or more locations,
to one (1) or more defined areas, or only to certain aspects of the
business.
(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 may
seek the following remedies against a person that violates, attempts
to violate, or assists in a violation of or an attempt to violate this
chapter:
(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 under
subdivision (3).
(i) In a court proceeding initiated under this section in which
judgment is awarded to the secretary of state, the secretary of state
is entitled to recover the costs and expenses of investigation, and the
court 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 the
Internet or other computer network shall deliver the motor vehicle to
the 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 a
special event permit from the secretary of state for a special event
meeting the following conditions:
(1) The event is a vehicle auction conducted by auctioneers
licensed 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 under
rules adopted by the secretary of state.
(3) At least one hundred (100) vehicles will be auctioned during
the special event.
(4) An application for a special event permit has been submitted
to the secretary of state not later than thirty (30) days before the
beginning date of the special event.
(5) The application is accompanied by the permit fee required
under IC 9-29-8-6.5.
(b) Not more than two (2) special event permits may be issued by
the secretary of state within a twelve (12) month period to the same
applicant. 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 the
secretary of state under this chapter as follows:
(1) By an applicant for a license under this chapter, from a final
order of the secretary of state concerning the application.
(2) By a licensee, from a final order of the secretary of state
affecting the licensee's license under this chapter.
(3) By a person against whom a civil penalty is imposed under
section 14 of this chapter, from the final order of the secretary
of state imposing the civil penalty.
(4) By a person named as a respondent in an investigation or a
proceeding under section 14 of this chapter, from a final order
of the secretary of state under section 14 of this chapter. An
appeal 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 the
appellant resides or maintains a place of business.
(b) A person who seeks to appeal a final order of the secretary of
state under this section must serve the secretary of state with the
following 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 is
sought.
(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 the
secretary 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 the
appellant.
(c) Not later than ten (10) days after the secretary of state is
served with the items described in subsection (b), the secretary of
state shall make, certify, and deliver to the appellant the transcript
described in subsection (b)(2)(A). Not later than five (5) days after
the appellant receives the transcript under this subsection, the
appellant shall file the transcript and a copy of the notice of appeal
with the clerk of the court. The notice of appeal serves as the
appellant's complaint. The secretary of state may appear before the
court, 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 de
novo and shall be given precedence over all matters pending in the
court.
(d) The court shall receive and consider any pertinent oral or
written evidence concerning the order of the secretary of state from
which the appeal is taken. If the order of the secretary of state is
reversed, the court shall in its mandate specifically direct the
secretary of state as to the secretary of state's further action in the
matter. The secretary of state is not barred from revoking or altering
the order for any proper cause that accrues or is discovered after the
order is entered. If the order is affirmed, the appellant may, after
thirty (30) days from the date the order is affirmed, file a new
application for a license under this chapter if the application is not
otherwise barred or limited. During the pendency of the appeal, the
order from which the appeal is taken is not suspended but remains in
effect unless otherwise ordered by the court. An appeal may be taken
from the judgment of the court on the same terms and conditions as
an 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 a
separate account to be administered by the secretary of state. The
funds in the account must be available, with the approval of the
budget agency, for use in enforcing and administering this chapter.
(b) The expenses of administering the dealer compliance account
shall be paid from money in the account.
(c) The treasurer of state shall invest the money in the dealer
compliance account not currently needed to meet the obligations of
the account in the same manner as other public money may be
invested. Interest that accrues from these investments shall be
deposited 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 in
the account.
(4) Interest that accrues from money in the account.
(e) Money in the dealer compliance account at the end of a state
fiscal year does not revert to the state general fund.
(f) Money in the dealer compliance account is continuously
appropriated to the secretary of state for the purposes of the account. As added by P.L.106-2008, SEC.32.
