AMENDMENT FOR PRINTED BILL
1088oa

___________________ moved that HB 1088 be amended as follows:


    On page 7, line 5, of the printed bill, delete "with a gross vehicle weight rating greater than three thousand pounds".

    On page 7, between lines 12 and 13, insert:

"    Section 2. That § 32-6B-7 be amended to read as follows:

    32-6B-7. Before any license is issued, the applicant shall deliver to the department a good and sufficient surety bond, executed by the applicant as principal and by a surety company qualified to do business in the state as surety. The bond shall be for an amount based upon the type of license applied for, as follows:

            (1)    Vehicle dealer's license --$25,000;

            (2)    Used vehicle dealer's license --$25,000;

            (3)    Motorcycle dealer's license --$5,000;

            (4)    Trailer dealer's license --$10,000 for trailers weighing 2,000 more than 3,000 pounds or more; or

            (5)    Emergency vehicle dealer's license --$10,000.

    The bond shall be to the department and in favor of any customer who suffers any loss that may be occasioned by reason of the failure of title or by reason of any fraudulent misrepresentation or breaches of warranty as to freedom from liens. The bond shall be for the license period, and a. A new bond or a proper continuation certificate shall be delivered to the department at the beginning of each license period. Any surety company that pays a claim against the bond of a licensee shall notify the department, in writing, that it has paid such a claim. Any surety company that cancels the bond of a licensee shall notify the department, in writing, of the cancellation, giving the reason for that cancellation. If a claim is made to the department against the bond, which claim is based upon a final judgment of a court of record of this state, the dealer shall execute an additional bond for the amount necessary to maintain the security at the original level.

    Section 3. That § 32-6B-10 be amended to read as follows:

    32-6B-10. No dealer's license may be issued to a person who desires to sell or offer for sale new vehicles, until the applicant furnishes written proof, satisfactory to the department, that he the person has a bona fide contract or franchise in effect in this state with the manufacturer of the vehicle, or vehicles, he the person proposes to deal in. For the purposes of this section, written proof which does not adequately capture the intent of both the applicant and the manufacturer to be bound by the subject franchise or bona fide contract may be deemed insufficient by the department.

    Section 4. That chapter 32-6B be amended by adding thereto a NEW SECTION to read as follows:


    The provisions of §§ 32-6B-45 to 32-6B-56, inclusive, do not apply to any trailer franchisee dealing in trailers with a weight of three thousand pounds or less. This section may not be construed to exclude such a franchisee from the licensing and other requirements contained in this chapter.".