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Effective July 1, 2016, Ind. Code §§ 9-32-13-27 and 31 will be amended to clarify the procedure(s) for certain unfair practice claims. Additionally, at the request of the Alliance of Automobile Manufacturers and the Automobile Dealers Association of Indiana, the list of unfair practices stated in Ind. Code § 9-32-13-27 will be expanded effective July 1, 2016 to add termination of a dealer’s franchise for failure to meet a performance standard that is not statistically valid, reliable, and reasonable.
Dealers should also note that House Enrolled Act 1259, which takes effect on July 1, 2016 and represented an agreement between the Alliance of Automobile Manufacturers and the Automobile Dealers Association of Indiana, makes amendments to Ind. Code §§ 9-32-13-15, 17, and 23 and added Ind. Code §§ 9-32-13-15.5 regarding dealer compensation and sourcing of materials for facility alteration.
Effective July 1, 2016, dealer plates and dealer licenses issued to a dealer whose business name begins with a non-alpha character (i.e., a number or symbol) will expire on November 1st of each year. Fees for the transition license year will not be prorated.
Effective July 1, 2016, a dealer will be able to issue an interim license plate in instances where the dealer allows a purchaser to take delivery of the motor vehicle before the sale of the motor vehicle is fully funded. This amendment was intended to address “spot delivery” situations. A dealer can still only issue one (1) interim plate per sale.
Effective July 1, 2016, Ind. Code § 9-32-6-11(l) will allow a new motor vehicle dealer to issue an interim license plate for use on a motor vehicle that the dealer delivers to a purchaser under a written courtesy agreement between the dealer and another new motor vehicle dealer or manufacturer with whom the dealer has a franchise agreement. This amendment is intended to address “courtesy delivery” situations.
Effective July 1, 2016, amendments to Ind. Code §9-32-4-1 will allow a dealer, assuming all other statutory conditions are met, up to 31 days after date of sale to deliver title to a customer if title cannot be provided at the time of sale. To accommodate this extension, interim license plates issued customers after June 30, 2016 will be valid for 45 days. The deadline for a consumer to apply for title will also be extended to 45 days.
Effective July 1, 2016, an employee of a dealer licensed under Ind. Code § 9-32 will no longer need to be approved or designated by the Auto Dealer Services Division in order to complete a VIN inspection under Ind. Code § 9-17-2-12. The restriction that an inspection can only be completed by a dealer that has been in business for 5 years and sold at least 150 vehicles in the previous calendar year is also being removed.
Applications for an Initial License
Effective January 1, 2016 IC 9-32-11-2
Sec. 2. (a) An application for a license under this chapter must:
(1) be accompanied by payment of the applicable fee required
under IC 9-29-17;
Automotive Mobility Dealers
Auto Salvage Recycler
Boat Dealer License
Wholesale to Used Transition Update
If you were a licensed wholesale dealer on or before June 30, 2015 and were approved to transition to a used dealer license, you must submit an update on your progress towards compliance with the requirements for a used dealer license every 120 days. The form to report the updates is SF 55659 (R / 11-15) Click here. In order to continue the transition, this form must be completed every 120 days until your transition is completed.
Alert – Fines and Enforcement Actions Policy (11.25.2015)
The Auto Dealer Services Division has added a new policy on fines that may be imposed and enforcement actions that may be taken as a result of violations found. The new policy document is called “Fines and Enforcement Actions” and it can be found my clicking on the “Guidance Document tab on the left hand side of the screen. It can then be found under the “Policy Documents” section.
Alert- Dealer Bond Update (10.2.2015)
In order to maintain a dealer license issued by the Indiana Secretary of State, Auto Dealer Services Division,
a dealer must provide evidence of a bond in the amount of twenty-five thousand dollars ($25,000) that is in favor of the Secretary of State and secures payment of fines, penalties, costs, and fees assessed by the Secretary.
The Secretary of State Auto Dealer Services Division has begun using a new bond form. This new bond form is State Form 53966 (R5/6-15). This is the same form number as the previous bond form, but an updated version.
All dealers licensed by the Auto Dealer Services Division will be required to update their bonds to this new bond form. Dealers will have until their 2017 renewal date to comply with this requirement. When updating your bond, please ensure you are using the (R5/6-15) version of the bond form.
If you have any questions about this notice, please contact the Division at email@example.com or (317) 234-7190.