SENATE DOCKET, NO. 2466        FILED ON: 3/16/2010

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2324

The Commonwealth of Massachusetts

_______________

In the Year Two Thousand Ten

_______________

An Act regarding education requirements for class 2 motor vehicle licensees.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Section 58 of Chapter 140 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting after clause (8) of subsection (c) the following:

That such person attends sixteen hours of educational training related to the rules, regulations, and laws pertaining to the used car industry which is provided by an organization certified by the office of Consumer Affairs and Business Regulation to provide educational training.  The office of Consumer Affairs and Business Regulation shall establish the minimum core curriculum to be presented by certified training organizations and establish a standardized test which shall be administered by all certified educational training organizations to persons attending the educational training.  Upon successful completion of the training, and obtaining a passing grade the organization providing the training shall issue a class 2 education certificate to the person.  A said Class 2 education certificate shall be developed by the Office of Consumer Affairs and Business Regulation and include on the face a certificate number.  All certified training organizations shall record the name and certificate number of all certificates issued to applicants successfully completing the educational training.   A municipal licensing authority shall not issue or renew a class 2 license unless a class 2 education certificate is presented to the licensing authority.  All class 2 licensees who have successfully obtained a class 2 education certificate shall thereafter annually attend 4 hours of continuing educational training.  Class 2 licensees shall be issued a continuing education certificate which shall also be a condition precedent to obtaining a class 2 license. 

The dealer’s business is situated within a permanent building or permanently affixed structure, owned or leased by the dealer for the dealer’s exclusive use.  Except for a dealer who exchanges vehicles or trailers solely on a wholesale basis, the dealer shall be open to the public at least 40 hours per week.  The building, structure, shall have adequate office space to conduct the business with a minimum of 600 square feet and hours of operation shall be posted.  If more than one business is located within the same building or structure, the dealer shall maintain a separate and exclusive entrance.   Subject to any municipal regulation, ordinance or bylaw, and except for a dealer who exchanges motor vehicles or trailers solely on a wholesale basis, the dealer shall display a permanently affixed exterior sign of sufficient size and design to give the general public notice of the name, telephone number and nature of the business.  Except for a dealer who exchanges motor vehicles or trailers solely on a wholesale basis, the dealer shall have an area to display the vehicles offered for sale, which cannot be shared with any other business unless a clear physical separation exists.  Vehicles cannot be offered for sale at any other location; however, this shall not prohibit a dealer from transporting and offering vehicles for sale at a recognized automobile auction facility, or a combined dealer special sale event.  A municipal licensing authority shall issue only one Class 2 license for a building at a specific street address.

If a dealer does not have a repair facility a service agreement must be provided from a mechanical facility, which will be used by the dealer to obtain stickers and repairs. 

SECTION 2.  Notwithstanding any general or special law to the contrary the Registry of Motor Vehicles is hereby directed to establish a standard application form for applicants for a Class 2 license pursuant to Section 58 of Chapter 140 which shall be utilized by all licensing authorities issuing said Class 2 license.  The application shall include, but not be limited to, the name and address of the applicant, the name and address of the motor vehicle dealership, a box to be checked confirming evidence of a $25,000 bond and its certificate number or equivalent certificate of deposit or irrevocable letter of credit, a box to be checked confirming compliance with Class 2 licensee education requirements including the education certificate number, a box to be checked for wholesale dealer which shall include the following text “a checkmark in this box shall prohibit such licensee from selling motor vehicles to the retail public”.  The municipal licensing authority shall clearly indicate on the Class 2 license for wholesale only.  A Class 2 licensee with a wholesale only license who sells at retail shall be subject to a fine of $5000 payable to the municipal licensing authority and immediate revocation of the Class 2 license by the licensing authority.  The municipal licensing authority shall transmit a copy of said completed application to the Registrar of Motor Vehicles and to the Department of Revenue.