Session of 1998
HOUSE BILL No. 2699
By Representative Beggs
1-23
9
AN ACT enacting the boat dealers and
manufacturers licensing act.
10
11 Be it enacted by the Legislature of the
State of Kansas:
12 Section 1. As used in this
act, the following words and phrases shall
13 have the meanings:
14 (a) ``Boat dealer'' means any
person who, for a commission or with
15 an intent to make a profit or gain of money
or other thing of value, sells,
16 barters, exchanges, leases or rents with
the option to purchase, offers,
17 attempts to sell, or negotiates the sale of
any vessel, whether or not the
18 vessel is owned by such person.
19 (b) ``Boat manufacturer''
means any person engaged in the manufac-
20 turing, assembling or modifying of new
vessels or a distributor, factory
21 branch or factory representative.
22 (c) ``Boat salesperson''
means any person who is employed as a sales-
23 person by a boat dealer to sell
vessels.
24 (d) ``Director'' means the
director of vehicles, or a designee of the
25 director.
26 (e) ``Division'' means the
division of vehicles of the department of
27 revenue.
28 (f) ``Licensor'' means the
director or division or both.
29 (g) ``Distributor'' means any
person who sells or distributes for resale
30 new vessels to new boat dealers in this
state or who maintains distributor
31 representatives in this state.
32 (h) ``Wholesaler'' means any
person who purchases vessels for the
33 purpose of resale to a boat dealer.
34 (i) ``Factory branch'' means
any branch office maintained in this state
35 by a boat manufacturer for the sale of new
vessels to distributors, or for
36 the sale of new vessels to new boat
dealers, or for directing or supervising,
37 in whole or in part, its representatives in
this state.
38 (j) ``Distributor branch''
means any branch office similar to subsec-
39 tion (i) maintained by a distributor for
the same purposes as a factory
40 branch.
41 (k) ``Factory
representative'' means a representative employed by a
42 boat manufacturer or factory branch for the
purpose of making or pro-
43 moting the sale of its new vessels to new
boat dealers, or for supervising
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1 or contacting its new boat dealers or
prospective new boat dealers with
2 respect to the promotion and sale of
such vessels and parts or accessories
3 for the same.
4 (l) ``Distributor
representative'' means any representative similar to
5 subsection (k) employed by a
distributor or distributor branch for the
6 same purpose as a factory
representative.
7 (m) ``Person'' means
any natural person, partnership, firm, corpora-
8 tion or association.
9 (n) ``Franchise
agreement'' means any contract or franchise or any
10 other terminology used to describe the
contractual relationship between
11 boat manufacturers, distributors and boat
dealers, by which:
12 (1) A right is granted one
party to engage in the business of offering,
13 selling or otherwise distributing goods or
services under a marketing plan
14 or system prescribed in substantial part by
the other party, and in which
15 there is a community of interest in the
marketing of goods or services at
16 wholesale or retail, by lease, agreement or
otherwise; and
17 (2) the operation of the
grantee's business pursuant to such agree-
18 ment is substantially associated with the
grantor's trademark, service
19 mark, trade name, logotype, advertising or
other commercial symbol des-
20 ignating the grantor or an affiliate of the
grantor.
21 (o) ``Lending agency'' means
any person, desiring to be licensed un-
22 der this act and engaged in the business of
financing or lending money
23 to any person to be used in the purchase or
financing of a vessel.
24 (p) ``Established place of
business'' means a building or structure,
25 other than a building or structure all or
part of which is occupied or used
26 as a residence, owned either in fee or
leased and designated as an office
27 or place to receive mail and keep records
and conduct the routine of
28 business. To qualify as an established
place of business, there shall be
29 located therein an operable telephone which
shall be listed with the tel-
30 ephone company under the name of the
licensed business.
31 (q) ``Licensee'' means any
person issued a valid license pursuant to
32 this act.
33 (r) ``Personal watercraft''
means any jet-propelled vessel that is pow-
34 ered by an inboard motor and is designed to
carry one operator and no
35 more than two passengers, riding upon the
vessel and not within the
36 vessel.
37 (s) ``Supplemental place of
business'' means a business location other
38 than that of the established place of
business of the boat dealer which
39 may be operated by the boat dealer on a
continuous year-round basis and,
40 for new boat dealers, is within the defined
area of responsibility in their
41 franchise agreement, and for all other boat
dealers is within the same city
42 or county where the established place of
business of the boat dealer is
43 operated.
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1 (t) ``Vessel'' means
every description of watercraft, other than a sea-
2 plane on the water, used or capable
of being used as a means of trans-
3 portation on water including personal
watercraft.
4 Sec. 2. No person shall
engage in the business of a boat dealer unless
5 such person has complied with the
applicable provisions of this act. The
6 director shall issue licenses
provided for by this act and shall have super-
7 vision over the licensees hereunder
in respect to all the provisions of this
8 act.
9 Sec. 3. (a) No boat
dealer shall engage in business in this state with-
10 out obtaining a license as required by this
act. Any boat dealer holding a
11 valid license and acting as a boat
salesperson shall not be required to
12 secure a salesperson's license.
13 (b) No boat manufacturer,
factory branch, factory representative, dis-
14 tributor branch or distributor
representative shall engage in business in
15 this state without a license as required by
this act, regardless of whether
16 or not an office or other place of business
is maintained in this state for
17 the purpose of conducting such
business.
18 (c) An application for a
license shall be made to the director and shall
19 contain the information provided for by
this section, together with such
20 other information as may be deemed
reasonable and pertinent, and shall
21 be accompanied by the required fee. The
director may require in the
22 application, or otherwise, information
relating to the applicant's solvency,
23 financial standing, or other pertinent
matter commensurate with the safe-
24 guarding of the public interest in the
locality in which the applicant pro-
25 poses to engage in business, all of which
may be considered by the di-
26 rector in determining the fitness of the
applicant to engage in business
27 as set forth in this section. The director
may require the applicant for
28 licensing to appear at such time and place
as may be designated by the
29 director for examination to enable the
director to determine the accuracy
30 of the facts contained in the written
application, either for initial licensure
31 or renewal thereof. Every application under
this section shall be verified
32 by the applicant.
33 (d) All licenses shall be
granted or refused within 30 days after ap-
34 plication is received by the director. All
licenses shall expire, unless pre-
35 viously suspended or revoked, on December
31 of the calendar year for
36 which they are granted, except that where a
complaint respecting the
37 cancellation, termination or nonrenewal of
a sales agreement is in the
38 process of being heard, no replacement
application shall be considered
39 until a final order is issued by the
director. Applications for renewals
40 received by the director after February 15
shall be considered as new
41 applications.
42 (e) License fees for each
calendar year, or any part thereof shall be
43 as follows:
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1 (1) For boat dealers,
$50;
2 (2) for distributors,
$50;
3 (3) for wholesalers,
$50;
4 (4) for distributor
branches, $50;
5 (5) for boat
manufacturers, $200 plus $50 for each factory branch in
6 this state;
7 (6) for factory
representatives, $25;
8 (7) for distributor
representatives, $25;
9 (8) for lending
agencies, $25; and
10 (9) for boat salesperson,
$15.
11 (f) Boat dealers may
establish approved supplemental places of busi-
12 ness within the same county of their
licensure or within their area of
13 responsibility as defined in their
franchise agreement. Those doing so
14 shall be required to pay a supplemental
license fee of $10. In addition to
15 any other requirements, boat dealers
seeking to establish supplemental
16 places of business shall also comply with
the provisions of sections 16 and
17 17. Original inspections by the division of
a proposed established place
18 of business shall be made at no charge
except that a $5 fee shall be
19 charged by the division for each additional
inspection the division must
20 make of such premises in order to approve
the same.
21 (g) The license of all
persons licensed under the provisions of this act
22 shall state the address of the established
place of business, office, branch
23 or supplemental place of business and must
be conspicuously displayed
24 therein. The director shall endorse a
change of address on a license with-
25 out charge if: (1) The change of address of
an established place of busi-
26 ness, office, branch or supplemental place
of business is within the same
27 county; or (2) the change of address of a
supplemental place of business
28 is within such dealer's area of
responsibility as defined in their franchise
29 agreement. A change of address of the
established place of business, office
30 or branch to a different county shall
require a new license and payment
31 of the required fees but such new license
and fees shall not be required
32 for a change of address of a supplemental
place of business to a different
33 county but within the dealer's area of
responsibility as defined in their
34 franchise agreement.
35 (h) Every salesperson,
factory representative or distributor represen-
36 tative shall carry on their person a
certification that the person holds a
37 valid state license. The certification
shall name the person's employer and
38 shall be displayed upon request. An
original copy of the state license for
39 a boat salesperson shall be mailed or
otherwise delivered by the division
40 to the employer of the salesperson for
public display in the employer's
41 established place of business. When a
salesperson ceases to be employed
42 as such, the former employer shall mail or
otherwise return the original
43 copy of the employee's state license to the
division. A salesperson, factory
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1 representative or distributor
representative who terminates employment
2 with one employer may file an
application with the director to transfer
3 the person's state license in the
name of another employer. The appli-
4 cation shall be accompanied by a $2
transfer fee. A salesperson, factory
5 representative or distributor
representative who terminates employment,
6 and does not transfer the state
license, shall mail or otherwise return the
7 certification that the person holds a
valid state license to the division.
8 (i) If the director has
reasonable cause to doubt the financial respon-
9 sibility or the compliance by the
applicant or licensee with the provisions
10 of this act, the director may require the
applicant or licensee to furnish
11 and maintain a bond in such form, amount
and with such sureties as the
12 director approves, but such amount shall be
not less than $5,000 nor more
13 than $20,000, conditioned upon the
applicant or licensee complying with
14 the provisions of the statutes applicable
to the licensee and as indemnity
15 for any loss sustained by any person by
reason of any act by the licensee
16 constituting grounds for suspension or
revocation of the license. Every
17 applicant or licensee who is or applies to
be a boat dealer shall furnish
18 and maintain a bond in such form, amount
and with such sureties as the
19 director approves, in the amount of
$15,000, conditioned upon the ap-
20 plicant or licensee complying with the
provisions of the statutes applicable
21 to the licensee and as indemnity for any
loss sustained by any person by
22 reason of any act by the licensee in
violation of any act which constitutes
23 grounds for suspension or revocation of the
license. To comply with this
24 subsection, every bond shall be a corporate
surety bond issued by a com-
25 pany authorized to do business in the state
of Kansas and shall be executed
26 in the name of the state of Kansas for the
benefit of any aggrieved party.
27 The aggregate liability of the surety for
all breaches of the conditions of
28 the bond in no event shall exceed the
amount of such bond. The surety
29 on the bond shall have the right to cancel
the bond by giving 30 days'
30 notice to the director, and thereafter the
surety shall be relieved of lia-
31 bility for any breach of condition
occurring after the effective date of
32 cancellation. Bonding requirements shall
not apply to boat manufactur-
33 ers, factory branches, factory
representatives or salespersons. Upon de-
34 termination by the director that a judgment
from a Kansas court of com-
35 petent jurisdiction is a final judgment and
that the judgment resulted
36 from an act in violation of this act or
would constitute grounds for sus-
37 pension, revocation, refusal to renew a
license or administrative fine pur-
38 suant to section 7, the proceeds of the
bond on deposit or in lieu of bond
39 provided by subsection (j), shall be paid.
The determination by the di-
40 rector under this subsection is hereby
specifically exempted from the
41 Kansas administrative procedure act (K.S.A.
77-501 through 77-549, and
42 amendments thereto,) and the act for
judicial review and civil enforce-
43 ment of agency actions (K.S.A. 77-601
through 77-627, and amendments
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1 thereto). Any proceeding to enforce
payment against a surety following a
2 determination by the director shall
be prosecuted by the judgment cred-
3 itor named in the final judgment
sought to be enforced. Upon a finding
4 by the court in such enforcement
proceeding that a surety has wrongfully
5 failed or refused to pay, the court
shall award reasonable attorney fees to
6 the judgment creditor.
7 (j) An applicant or
licensee may elect to satisfy the bonding require-
8 ments of subsection (i) by depositing
with the state treasurer cash, ne-
9 gotiable bonds of the United States
or of the state of Kansas or negotiable
10 certificates of deposit of any bank
organized under the laws of the United
11 States or of the state of Kansas. When
negotiable bonds or negotiable
12 certificates of deposit have been deposited
with the state treasurer to
13 satisfy the bonding requirements of
subsection (i), such negotiable bonds
14 or negotiable certificates of deposit shall
remain on deposit with the state
15 treasurer for a period of not less than two
years after the date of delivery
16 of the vessel which was the subject of the
last vessel sales transaction in
17 which the licensee engaged prior to
termination of the licensee's license.
18 In the event a licensee elects to deposit a
surety bond in lieu of the
19 negotiable bonds or negotiable certificates
of deposit previously deposited
20 with the state treasurer, the state
treasurer shall not release the negotiable
21 bonds or negotiable certificates of
deposits until at least two years after
22 the date of delivery of the certificate of
title to the vessel which was the
23 subject of the last vessel sales
transaction in which the licensee engaged
24 prior to the date of the deposit of the
surety bond. The cash deposit or
25 market value of any such securities shall
be equal to or greater than the
26 amount of the bond required for the bonded
area and any interest on
27 those funds shall accrue to the benefit of
the depositor.
28 (k) No license shall be
issued by the director to any person to act as
29 a boat dealer, wholesaler, boat
manufacturer or distributor unless the
30 applicant for the boat dealer's license
maintains an established place of
31 business which has been inspected and
approved by the division. Boat
32 manufacturers, factory branches, factory
representatives, distributor
33 branches and distributor representatives
are not required to maintain an
34 established place of business to be issued
a license.
35 (l) Boat dealers required
under the provisions of this act to maintain
36 an established place of business shall own
or have leased and use sufficient
37 lot space to display vessels.
38 (m) A sign with durable
lettering at least 10 inches in height and easily
39 visible from the street identifying the
established place of business shall
40 be displayed by every boat dealer.
Notwithstanding the other provisions
41 of this subsection, the height of lettering
of the required sign may be less
42 than 10 inches as necessary to comply with
local zoning regulations.
43 (n) If the established or
supplemental place of business or lot is
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1 zoned, approval must be secured from
the proper zoning authority and
2 proof that the use complies with the
applicable zoning law, ordinance or
3 resolution must be furnished to the
director by the applicant for licensing.
4 (o) An established or
supplemental place of business, otherwise
5 meeting the requirements of this act
may be used by a boat dealer to
6 conduct more than one business,
provided that suitable space and facil-
7 ities exist therein to properly
conduct the business of a boat dealer.
8 (p) If a supplemental
place of business is not operated on a contin-
9 uous, year-round basis, the boat
dealer shall give the department 15 days'
10 notice as to the dates on which the boat
dealer will be engaged in business
11 at the supplemental place of business.
12 (q) Any boat dealer selling,
exchanging or transferring or causing to
13 be sold, exchanged or transferred new
vessels in this state must satisfac-
14 torily demonstrate to the director that
such boat dealer has a bona fide
15 franchise agreement with the boat
manufacturer or distributor of the
16 vessel, to sell, exchange or transfer the
same or to cause to be sold, ex-
17 changed or transferred.
18 No person may engage in the
business of buying, selling or exchanging
19 vessels, either directly or indirectly,
unless such person holds a license
20 issued by the director for the make or
makes of vessels being bought,
21 sold or exchanged, or unless a person
engaged in such activities is not
22 required to be licensed or acts as an
employee of a licensee and such acts
23 are only incidentally performed. For the
purposes of this section, engaged
24 in the business of buying, selling or
exchanging vessels, either directly or
25 indirectly, includes: (1) Displaying
vessels on a lot or showroom; (2) ad-
26 vertising vessels, unless the person's
business primarily includes the busi-
27 ness of broadcasting, printing, publishing
or advertising for others in their
28 own names; or (3) regularly or actively
soliciting or referring buyers for
29 vessels.
30 (r) The director of vehicles
shall publish a suitable Kansas boat sales-
31 person's manual. Before a boat
salesperson's license is issued, the appli-
32 cant for an original license or renewal
thereof shall be required to pass a
33 written examination based upon information
in the manual.
34 (s) Nothing herein shall be
construed to prohibit a person not oth-
35 erwise required to be licensed under this
act from selling such person's
36 own vessel as an isolated and occasional
sale.
37 Sec. 4. No boat dealer's
license shall be issued or renewed unless the
38 applicant or holder of the license shall
have on file with the division an
39 approved insurance policy, issued by an
insurance carrier authorized to
40 transact business within the state of
Kansas. The term of the policy shall
41 be continuous and shall remain in full
force and effect until canceled
42 under proper notice. All policies must be
issued in the name of the holder
43 or applicant for the boat dealer's license
and shall provide public liability
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1 and property damage insurance for the
operation of any boat by pro-
2 spective purchasers, owned or being
offered for sale by the boat dealer
3 when being operated by the owner or
seller, the seller's agent, servants,
4 employees, prospective customers or
other persons. Such insurance may
5 not be cancelled unless 30 days'
notice by the insurance carrier has been
6 given in writing to the director.
Upon the effective date of cancellation
7 of any insurance policy required
under this section, the license to engage
8 in business as a boat dealer shall be
void.
9 Sec. 5. Except as
hereinafter provided, every person licensed as a
10 boat dealer under provisions of this act
shall:
11 (a) On or before the 20th day
of each month, file a monthly report,
12 on a form prescribed and furnished by the
division of vehicles, listing all
13 sales or transfers, except sales or
transfers by a boat manufacturer to a
14 boat dealer, including the name and address
of the purchaser or trans-
15 feree, date of sale, the serial or
identification number of the vessel, and
16 such other information as the division may
require.
17 (b) Make available during
regular business hours to any employee of
18 the division for the purpose of
investigation or inspection, all records
19 concerning vessels purchased, sold or
exchanged during the preceding 12
20 months.
21 (c) Whenever a boat dealer
sells or otherwise disposes of such boat
22 dealer's business, or for any reason
suspends or goes out of business as a
23 boat dealer, such boat dealer shall notify
the division and return the boat
24 dealer's license, and the division upon
receipt of such notice shall cancel
25 the boat dealer's license, except that such
boat dealer may, upon payment
26 of 50% of the annual fee to the division,
have the license assigned to the
27 purchaser of the business.
28 (d) Lending agencies licensed
under this act, which sell two or less
29 repossessed vessels a month, shall not be
required to file the monthly
30 reports under subsection (a), except that
such lending agencies shall re-
31 port annually, on a form prescribed and
furnished by the division, the
32 total number of sales or transfers of such
vessels.
33 Sec. 6. (a) A license may be
denied, suspended or revoked or a re-
34 newal may be refused by the director on any
of the following grounds:
35 (1) Proof of financial
unfitness of the applicant;
36 (2) material false statement
in an application for a license;
37 (3) filing a materially false
or fraudulent tax return as certified by the
38 director of taxation;
39 (4) negligently failing to
comply with any applicable provision of this
40 act or any applicable rule or regulation
adopted pursuant thereto;
41 (5) knowingly defrauding any
retail buyer to the buyer's damage;
42 (6) negligently failing to
perform any written agreement with any
43 buyer;
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1 (7) failure or refusal
to furnish and keep in force any required bond;
2 (8) knowingly making a
fraudulent sale or transaction;
3 (9) knowingly engaging
in false or misleading advertising;
4 (10) willful
misrepresentation, circumvention or concealment,
5 through a subterfuge or device, of
any material particulars, or the nature
6 thereof, required by law to be stated
or furnished to the retail buyer;
7 (11) negligent use of
fraudulent devices, methods or practices in con-
8 travention of law with respect to the
retaking of goods under retail in-
9 stallment contracts and the
redemption and resale of such goods;
10 (12) knowingly violating any
law relating to the sale, distribution or
11 financing of vessels;
12 (13) being a boat
manufacturer, factory branch, distributor, distrib-
13 utor or factory representative, officer,
agent or any representative thereof,
14 who has:
15 (A) Induced or has attempted
to induce, by coercion, intimidation or
16 discrimination, any boat dealer to
involuntarily accept delivery of any
17 vessel or vessels, parts or accessories
therefor, or any form of advertise-
18 ments or other commodities which shall not
have been ordered by the
19 boat dealer;
20 (B) unfairly, without due
regard to the equities of the boat dealer,
21 and without just provocation, canceled,
terminated or failed to renew a
22 franchise agreement with any boat
dealer;
23 (C) induced, or has attempted
to induce, by coercion, intimidation
24 or discrimination, any boat dealer to
involuntarily enter into any franchise
25 agreement with such boat manufacturer,
factory branch, distributor, or
26 any representative thereof, or to do any
other act to a boat dealer which
27 may be deemed a violation of this act, or
the rules and regulations adopted
28 or orders promulgated under authority of
this act, by threatening to cancel
29 or not renew a franchise agreement existing
between such parties;
30 (14) being a boat
manufacturer, or distributor who for the protection
31 of the buying public fails to specify in
writing the delivery and preparation
32 obligations of its boat dealers prior to
delivery of vessels to boat dealers.
33 A copy of such writing shall be filed with
the division by every licensed
34 boat manufacturer and the contents thereof
shall constitute the boat
35 dealer's only responsibility for product
liability as between the boat dealer
36 and the boat manufacturer. Any mechanical,
body or parts defects arising
37 from any express or implied warranties of
the boat manufacturer shall
38 constitute the product or warranty
liability of the boat manufacturer. The
39 boat manufacturer shall reasonably
compensate any authorized boat
40 dealer for the performance of delivery and
preparation obligation;
41 (15) being a boat
manufacturer, factory branch or distributor who
42 fails to supply a boat dealer with a
reasonable quantity of vessels, parts
43 and accessories, in accordance with the
franchise agreement. It shall not
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1 be deemed a violation of this act if
such failure is attributable to factors
2 reasonably beyond the control of such
boat manufacturer, factory branch
3 or distributor;
4 (16) has failed or
refused to permit an agent of the division, during
5 the licensee's regular business
hours, to examine or inspect such boat
6 dealer's records pertaining to
purchase and sale of vessels;
7 (17) has failed or
refused to surrender their boat dealer's license to
8 the division or its agent upon
demand;
9 (18) has demonstrated
that such person is not of good character and
10 reputation in the community in which the
boat dealer resides;
11 (19) has, within five years
immediately preceding the date of making
12 application, been convicted of a felony or
any crime involving moral tur-
13 pitude, or has been adjudged guilty of the
violations of any law of any
14 state or the United States in connection
with such person's operation as
15 a boat dealer or boat salesperson;
16 (20) has changed the location
of such person's established place of
17 business or supplemental place of business
prior to approval of such
18 change by the division;
19 (21) doing business as a boat
dealer other than at the boat dealer's
20 established or supplemental place of
business;
21 (22) any violation of K.S.A.
79-3294 et seq., or 79-3601 et seq., and
22 amendments thereto;
23 (23) failure to provide
adequate proof of ownership for vessels in the
24 boat dealer's possession; or
25 (24) displaying vessels at a
location other than at the boat dealer's
26 established place of business or
supplemental place of business without
27 obtaining the authorization required in
section 20.
28 (b) The director may deny the
application for the license within 30
29 days after receipt thereof by written
notice to the applicant, stating the
30 grounds for such denial. Upon request by
the applicant whose license has
31 been so denied, the applicant shall be
granted an opportunity to be heard
32 in accordance with the provisions of the
Kansas administrative procedure
33 act.
34 (c) If a licensee is a firm
or corporation, it shall be sufficient cause
35 for the denial, suspension or revocation of
a license that any officer, di-
36 rector or trustee of the firm or
corporation, or any member in case of a
37 partnership, has been guilty of any act or
omission which would be good
38 cause for refusing, suspending or revoking
a license to such party as an
39 individual. Each licensee shall be
responsible for the acts of its salesper-
40 sons or representatives while acting as its
agent.
41 (d) Any licensee or other
person aggrieved by a final order of the
42 director, may appeal to the district court
as provided by the act for judicial
43 review and civil enforcement of agency
actions.
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11
1 (e) The revocation or
suspension of a boat manufacturer's or distrib-
2 utor's license may be limited to one
or more municipalities or counties
3 or any other defined trade area.
4 Sec. 7. (a) When any
licensee is found to be allegedly violating any
5 of the applicable provisions of this
act, or any order or rule and regulation
6 adopted pursuant thereto, the
director upon the director's own motion
7 or upon complaint may commence a
hearing against the licensee, which
8 hearing shall be conducted in
accordance with the provisions of the Kan-
9 sas administrative procedure act.
10 (b) Any person who is found
to have violated any applicable provi-
11 sions of this act, any rule and regulation
adopted pursuant thereto or any
12 applicable order of the director shall be
subject to a civil penalty of not
13 less than $50 nor more than $1,000 for each
violation or such person's
14 license may be suspended or revoked or both
civil penalty and license
15 suspension or revocation.
16 (c) Any party aggrieved by
the decision of the director may appeal
17 the same to the district court in
accordance with the provisions of the act
18 for judicial review and civil enforcement
of agency actions.
19 Sec. 8. Upon application of
the director or any person having any
20 interest in the subject matter, the
district courts of this state may enjoin
21 any person from violating any of the
provisions of this act or any order or
22 rule and regulation issued or adopted
pursuant thereto.
23 Sec. 9. (a) No franchise
agreement entered into between a boat
24 dealer and a boat manufacturer or
distributor may be cancelled, termi-
25 nated or not renewed by the boat
manufacturer or distributor unless 90
26 days notice has been given to the boat
dealer and the director, which
27 notice must state in full the reasons and
causes for the cancellation, ter-
28 mination or nonrenewal of such franchise
agreement, except that in the
29 event of a showing of fraud, insolvency or
failure to perform in the or-
30 dinary course of business, a notice of not
less than 15 days may be ap-
31 proved by the director, with notice thereof
to such boat dealer and upon
32 written application by such boat
manufacturer or distributor. A notice
33 required under this subsection shall be
given by certified mail and the
34 period of time given in the notice prior to
cancellation, termination or
35 nonrenewal shall be computed from the date
of mailing thereof.
36 (b) A boat dealer, within a
period of time equal to that provided for
37 in the notice filed pursuant to subsection
(a), may file a complaint with
38 the director against a boat manufacturer or
distributor challenging the
39 reasons and causes given for the proposed
cancellation, termination or
40 nonrenewal of the franchise agreement. Upon
a complaint being filed,
41 the director shall promptly set the matter
for public hearing, in accord-
42 ance with section 7, for the purpose of
determining whether there has
43 been a violation of section 6, or whether
good cause exists for cancellation,
HB 2699
12
1 termination or nonrenewal of the
franchise agreement. Notwithstanding
2 the provisions of section 7, the
hearing may be set for a time which is not
3 less than the number of days provided
in the notice given pursuant to
4 subsection (a), from the date the
director gives notice thereof.
5 (c) The franchise
agreement shall remain in full force and effect
6 pending the determination by the
director of the issues involved as pro-
7 vided by this act. If the director
determines that the boat manufacturer
8 or distributor is acting in violation
of this act or that good cause does not
9 exist for the proposed action, the
director shall order for the franchise
10 agreement to be kept in full force and
effect.
11 (d) The burden of proof shall
be on the boat manufacturer or dis-
12 tributor to show that it did not act
arbitrarily or unreasonably and that
13 good cause did exist for the proposed
cancellation, termination or non-
14 renewal of the franchise agreement. The
director shall order that the
15 franchise agreement may be cancelled,
terminated or not renewed if the
16 director finds, after a hearing that the
licensed boat dealer is acting in
17 violation of this act or that the judgment
of the boat manufacturer or
18 distributor is with good cause and the boat
dealer's default is material.
19 (e) (1) In the event of
cancellation, termination or nonrenewal of a
20 franchise agreement, good cause as used in
this section shall mean the
21 failure of the boat dealer to effectively
carry out the performance provi-
22 sions of the franchise agreement if all of
the following have occurred:
23 (A) The boat dealer was given
notice by the boat manufacturer or
24 distributor of the failure prior to the
notice of cancellation, termination
25 or nonrenewal as required by subsection
(a);
26 (B) the notification stated
that the notice of failure of performance
27 was provided pursuant to this article;
28 (C) the boat dealer was
afforded a reasonable opportunity to carry
29 out the franchise agreement; and
30 (D) the failure continued for
more than one year after the date no-
31 tification was given.
32 (2) In the event of
cancellation, termination or nonrenewal of a fran-
33 chise agreement, good cause shall not exist
where there has been a vio-
34 lation by the boat manufacturer or
distributor of section 7. Additionally,
35 notwithstanding any agreement, the
following alone shall not constitute
36 good cause for the termination,
cancellation or nonrenewal of a franchise
37 agreement:
38 (A) A change in ownership of
the boat dealer's dealership. This sub-
39 paragraph does not authorize any change in
ownership which would have
40 the effect of a sale or an assignment of
the franchise agreement or a
41 change in the principal management of the
dealership without the boat
42 manufacturer's or distributor's prior
written consent;
43 (B) the refusal of the boat
dealer to purchase or accept delivery of
HB 2699
13
1 any vessels, parts, accessories or
any other commodity or services not
2 ordered by the boat dealer;
3 (C) the fact that the
boat dealer owns, has an investment in, partici-
4 pates in the management of or holds a
franchise agreement for the sale
5 or service of another make or line of
vessels, or that the boat dealer has
6 established another make or line of
vessels or service in the same deal-
7 ership facilities as those of the
boat manufacturer or distributor which
8 existed on or before July 1, 1998, or
is approved in writing by the boat
9 manufacturer or distributor;
10 (D) the fact that the boat
dealer sells or transfers ownership of the
11 dealership or sells or transfers capital
stock in the dealership to the boat
12 dealer's spouse, son or daughter, except
that the sale or transfer shall not
13 have the effect of a sale or an assignment
of the franchise agreement
14 without the boat manufacturer's or
distributor's prior written consent.
15 (f) (1) In event of
cancellation, termination or nonrenewal of a fran-
16 chise agreement, the boat manufacturer or
distributor shall pay the boat
17 dealer, at a minimum:
18 (A) Dealer net acquisition
cost for any undamaged and unsold vessels
19 inventory purchased from the boat
manufacturer or distributor within 12
20 months prior to the receipt of notice of
termination, cancellation or non-
21 renewal, plus any cost to the boat dealer
for returning the vessel inventory
22 to the boat manufacturer or
distributor;
23 (B) the dealer price listed
in the current list or catalog or, if unavail-
24 able, the list or catalog actually utilized
within the 12 months previous to
25 termination, cancellation or nonrenewal, as
the case may be, for any new,
26 unused and undamaged parts, supplies, and
accessories acquired from a
27 boat manufacturer, or distributor, or a
source approved or recommended
28 by it, less applicable allowances specified
in advance of boat dealer pur-
29 chase, plus 5% of the catalog or list
price, as the case may be, for the cost
30 of packing and returning the parts,
supplies and accessories to the boat
31 manufacturer or distributor. Parts,
supplies or accessories which are re-
32 conditioned or subject to reconditioning or
rebuilding or other return in
33 the ordinary course of business which are
considered to be core parts in
34 the trade practice and usage of the
industry shall be valued for payment
35 purposes at their core value, the price
listed in the catalog or list refer-
36 enced above or the amount paid for
expedited return of core parts, which-
37 ever is higher;
38 (C) fair market value for
furnishings required to be purchased by the
39 boat manufacturer or distributor and signs
which bear the trademark or
40 trade name of the boat manufacturer or
distributor which were required
41 or recommended to be purchased or leased
from the boat manufacturer
42 or distributor, or their approved
sources;
43 (D) dealer cost for special
tools and equipment required to be pur-
HB 2699
14
1 chased or leased by the boat
manufacturer or distributor within three
2 years of the date of termination,
cancellation or nonrenewal;
3 (E) the cost of
transporting, handling, packing and loading of signs,
4 special tools, equipment and
furnishings.
5 (2) Upon termination,
cancellation or nonrenewal of a franchise
6 agreement by the boat manufacturer or
distributor, the boat manufac-
7 turer or distributor shall also pay
to the boat dealer a sum equal to the
8 current fair rental value of its
established place of business for a period
9 of one year from the effective date
of termination, cancellation or non-
10 renewal, or the remainder of the lease,
whichever is less. If the boat dealer
11 owns the dealership facilities, the boat
manufacturer or distributor shall
12 pay the boat dealer a sum equivalent to the
reasonable rental value of the
13 dealership facilities for one year or until
the facilities are leased or sold,
14 whichever is less. The rental payment
required under this subsection is
15 only required to the extent that the
established place of business was
16 being used for activities under the
franchise agreement and only to the
17 extent such facilities were not leased for
unrelated purposes. The boat
18 manufacturer or distributor shall not be
required to make the payment
19 set forth under this subsection if the
basis of the cancellation, termination
20 or nonrenewal of such franchise agreement
under this act is due to con-
21 viction of the boat dealer of a felony or
any crime involving moral turpi-
22 tude, or if the boat dealer has been
adjudged guilty of the violation of
23 any law of any state or the United States
in connection with such person's
24 operation as a boat dealer.
25 (3) To the extent the
franchise agreement provides for payment or
26 reimbursement to the boat dealer in excess
of that specified in this sec-
27 tion, the provisions of the franchise
agreement shall control.
28 (4) The boat manufacturer or
distributor shall pay the boat dealer the
29 sums specified in this subsection within 90
days after the tender of the
30 property, subject to the boat dealer
providing evidence of good and clear
31 title upon return of the property to the
boat distributor.
32 (5) Nothing in this
subsection shall preclude or prohibit the boat
33 manufacturer or distributor or boat dealer
from agreeing to other terms
34 for additional payment or reimbursement,
except that such terms shall
35 include, at a minimum, the payment or
reimbursement requirements
36 contained in this subsection.
37 (g) Failure of the boat
manufacturer or distributor to give proper
38 notice or maintain the franchise agreement
in full force and effect pend-
39 ing determination by the director pursuant
to this act, or to abide by the
40 final order of the director, shall be cause
for the director to refuse to
41 issue a license to a replacement boat
dealer or to a boat dealership which
42 would be conducting business in the same
trade area and selling the same
43 make of vessels where the boat dealer in
question was engaged in busi-
HB 2699
15
1 ness.
2 Sec. 10. (a) A boat
manufacturer or distributor shall pay reasonable
3 compensation to any authorized boat
dealer who performs work to rectify
4 warranty defects in the boat
manufacturer's or distributor's product.
5 (b) A boat manufacturer
or distributor shall pay any authorized boat
6 dealer all promotional allowances or
other incentive payments submitted
7 by the boat dealer as provided by the
applicable provisions of such pro-
8 grams subject to the applicable
requirements of this act.
9 (c) In the
determination of what constitutes reasonable compensation
10 for warranty work under this act, among the
factors to be considered shall
11 be: The rate or charge which the authorized
boat dealer in good faith is
12 charging other customers for the same type
of service or repair work, the
13 compensation being paid by other boat
manufacturers or distributors to
14 their boat dealers for the same work or
service, and the prevailing wage
15 or labor rate being paid or charged by all
boat dealers licensed to operate
16 in the city or community in which such
authorized boat dealer is doing
17 business.
18 (d) A boat manufacturer or
distributor shall not require unreasonable
19 proof to establish compensation under this
section, nor act unreasonably
20 to delay payments or adjustments in the
rate or charge for particular
21 warranty work, promotional allowances or
other incentive payments as
22 circumstances or changes may justify or
require such adjustments.
23 (e) A claim made by a boat
dealer for compensation under this section
24 shall be either approved or disapproved
within 30 days after the claim is
25 submitted to the boat manufacturer or
distributor in the manner and on
26 the forms the boat manufacturer or
distributor reasonably prescribes. An
27 approved claim shall be paid within 30 days
after its approval. If a claim
28 is not specifically disapproved in writing
or by electronic transmission
29 within 30 days after the date on which the
boat manufacturer or distrib-
30 utor receives it, the claim shall be
considered to be approved and payment
31 shall follow within 30 days. A boat
manufacturer or distributor retains the
32 right to audit claims for warranty work for
a period of one year after the
33 date on which the claim is paid and to
chargeback any amounts paid on
34 claims that are false or unsubstantiated. A
boat manufacturer or distrib-
35 utor retains the right to audit claims for
promotional allowances or other
36 incentive payments submitted by the boat
dealer for a period of two years
37 after the date on which the claim is paid
and to chargeback any amounts
38 paid on claims that are false or
unsubstantiated. If there is evidence of
39 fraud, this subsection does not limit the
right of the manufacturer to audit
40 for longer periods and chargeback for any
fraudulent claim, subject to
41 the limitation period under paragraph (3)
of subsection (a) of K.S.A.
42 60-513, and amendments thereto, in addition
to any other available rem-
43 edy, this section may be enforced pursuant
to section 7.
HB 2699
16
1 Sec. 11. (a) A boat
dealer desiring to sell, transfer or assign all or any
2 portion of such boat dealer's
business, and to assign any agreement to the
3 purchaser thereof, shall submit a
written proposal of such sale, transfer
4 or assignment to the boat
manufacturer or distributor, and approval of
5 such proposal shall not be
arbitrarily or unreasonably withheld. The pro-
6 posed purchaser of such boat
dealership also shall furnish to the boat
7 manufacturer or distributor all of
the information customarily required
8 of applicants for an agreement.
9 (b) The refusal of the
boat manufacturer or the distributor to approve
10 a proposed sale, transfer or assignment
shall be subject to review by the
11 director if a written application therefor
is filed with the director by the
12 boat dealer desiring to sell, transfer or
assign, with notice thereof to the
13 boat manufacturer or distributor, within 30
days of the date of such re-
14 fusal. For the purposes of this section the
failure of the boat manufacturer
15 or distributor to approve the request, in
writing, within 30 days of a re-
16 quest to sell, transfer or assign, shall be
deemed to be a refusal. Such
17 refusal shall not be considered final until
the director, after a hearing has
18 been held in accordance with the provisions
of section 7 has determined
19 that the approval was not arbitrarily or
unreasonably withheld. The di-
20 rector shall make such determination within
90 days after the application
21 for review has been filed.
22 (c) The burden of proof shall
be on the boat manufacturer or distrib-
23 utor to show that the approval of the sale,
transfer or assignment of any
24 interest in the franchise agreement was not
withheld arbitrarily or without
25 reasonable justification. Material factors
to be considered may include,
26 but are not limited to: Whether the basic
financial and facility require-
27 ments of the franchise agreement will be
met by the proposed sale, trans-
28 fer or assignment, and whether the proposed
purchaser, transferee or
29 assignee is capable of operating, managing
and supervising such business.
30 (d) Failure of the boat
manufacturer or distributor or any officer or
31 agent thereof to abide by the final order
of the director, or to continue
32 the agreement pending the final
determination of the issues, shall be
33 cause for the director to refuse to issue a
subsequent license in the same
34 trade area to an applicant who will be
selling the same vessels as the
35 former boat dealer for the same boat
manufacturer or distributor.
36 (e) The provisions of this
section shall apply to the personal repre-
37 sentative, executor or administrator or the
heirs at law of the estate of an
38 individual who had an interest in an
agreement, or to the guardian or
39 conservator of an individual who has such
an interest for one year follow-
40 ing appointment.
41 Sec. 12. The obtaining of a
license hereunder shall bring the appli-
42 cant under the jurisdiction of the state of
Kansas, and if no agent for
43 service of process has been designated by a
licensee, the said licensee will
HB 2699
17
1 be deemed to have designated the
secretary of the state of Kansas as
2 agent for receipt of service of
process.
3 Sec. 13. The director
shall remit all moneys received by or for the
4 director from fees, charges or
penalties under the provisions of this act
5 to the state treasurer at least
monthly. Upon receipt of such remittance,
6 the state treasurer shall deposit the
entire amount thereof in the state
7 treasury to the credit of the state
highway fund.
8 Sec. 14. All boat
manufacturers shall be liable for the full period of
9 the warranty of the vessel for all
defects in any equipment attached to
10 any vessel at the factory and all defects
in any equipment produced by or
11 advertised as an accessory to a vessel
manufactured by such boat manu-
12 facturer which is added at the boat
dealership so long as such equipment
13 has been advertised as being either an
``accessory'' or an ``option.''
14 Sec. 15. The director of
vehicles is hereby authorized to enter into
15 an interstate boat dealer licensing compact
with party states to facilitate
16 the conveyance or exchange of information
concerning violations or con-
17 victions of civil or criminal offenses
committed by nonresident boat deal-
18 ers in a party state.
19 Sec. 16. (a) Any licensee, or
proposed licensee, who proposes to
20 establish an additional boat dealer for
vessels, including a supplemental
21 place of business for vessels, or permit
the relocation of an existing boat
22 dealer in vessels to a location within the
relevant market area where the
23 same line-make vessel is already presently
represented by a boat dealer
24 or dealers in vessels of that same
line-make shall give written notice of
25 its intention by certified mail to the
director of vehicles and shall establish
26 good cause for adding or relocating the
boat dealer. The notice required
27 hereunder shall state:
28 (1) The specific location at
which the additional or relocated boat
29 dealer in vessels will be established;
30 (2) the date on or after
which the licensee, or proposed licensee,
31 intends to be engaged in business as a boat
dealer in vessels at the pro-
32 posed location;
33 (3) the identity of all boat
dealers in vessels who are franchised to
34 sell the same line-make vessel from
licensed locations whose relevant
35 market areas include the location where the
additional or relocated boat
36 dealer is proposed to be located;
37 (4) the names and addresses
of the boat dealer-operator and principal
38 investors in the proposed boat dealer's
business; and
39 (5) a short and plain
statement of the evidence the licensee, or pro-
40 posed licensee, intends to rely upon in
meeting the burden of proof for
41 establishing good cause for an additional
boat dealer for vessels or permit
42 relocation of an existing boat dealer in
vessels within a relevant market
43 area where the same line-make of vessel is
presently represented by a
HB 2699
18
1 boat dealer.
2 Immediately upon
receipt of such notice the director shall cause a
3 notice to be published in the Kansas
register. The published notice shall
4 state that a petition or complaint by
any boat dealer with standing to
5 protest pursuant to subsection (c)
must be filed with the director not
6 more than 30 days from the date of
publication of the notice in the Kansas
7 register. The published notice shall
describe and identify the proposed
8 boat dealer and dealership sought to
be licensed, and the director shall
9 cause a copy of the notice to be
mailed to those boat dealers identified
10 in the notice under paragraph (3) of this
subsection.
11 (b) (1) An application for a
boat dealer license to act as a boat dealer
12 in vessels in any city or county shall not
be granted when the licensee, or
13 proposed licensee, seeking to establish an
additional boat dealer, includ-
14 ing a supplemental place of business for
vessels, or relocate an existing
15 boat dealer in the same line-make of
vessels fails to comply with the
16 requirements of this act, or when:
17 (A) A timely protest is filed
by a presently existing boat dealer in
18 vessels with standing to protest as defined
in subsection (c); and
19 (B) the director has held a
hearing and determined that good cause
20 has not been established for permitting the
addition or relocation of such
21 boat dealer. The burden of proof in
establishing good cause to permit an
22 additional boat dealer in vessels or to
permit the relocation of an existing
23 boat dealer in vessels shall be on the
licensee, or proposed licensee, seek-
24 ing to establish or relocate a boat dealer
and shall be by a preponderance
25 of the evidence presented;
26 (2) in determining whether
good cause has been established for an
27 additional boat dealer or the relocation of
an existing boat dealer for the
28 same line-make of vessel as provided
herein, the director shall take into
29 consideration the existing circumstances,
including, but not limited to:
30 (A) Permanency of the
investment of both the existing and proposed
31 boat dealers;
32 (B) growth or decline in
population and vessel ownership in the rel-
33 evant market area;
34 (C) effect on the consuming
public in the relevant market area;
35 (D) whether it is injurious
or beneficial to the public welfare for an
36 additional boat dealer to be
established;
37 (E) whether the boat dealers
of the same line-make vessels in that
38 relevant market area are providing adequate
competition and convenient
39 customer care for the vessels of the
line-make in the market area which
40 shall include the adequacy of vessel sales
and service facilities, equipment,
41 supply of vessel parts and qualified
service personnel;
42 (F) whether the establishment
of an additional boat dealer would
43 increase competition and whether such
increased competition would be
HB 2699
19
1 in the public interest;
2 (G) the effect and
denial of relocation will have on a relocating boat
3 dealer; and
4 (H) the effect the boat
dealer addition or relocation which is pro-
5 posed will have on the existing boat
dealer or dealers.
6 The application for a
boat dealer license shall not be denied after the
7 applicant meets the requirements of
this section if the applicant otherwise
8 meets the requirements of this
act.
9 (c) An existing boat
dealer in vessels shall have standing to protest
10 the proposed addition or relocation of a
boat dealer in vessels where such
11 existing boat dealer in vessels has a
franchise agreement for the same
12 line-make vessel as that which is to be
sold or offered for sale or transfer
13 by the proposed additional or relocated
boat dealer and is physically lo-
14 cated such that the protesting boat
dealer's relevant market area, as de-
15 fined in subsection (e), includes the
location where the additional or re-
16 located boat dealer is proposed to be
located.
17 (d) The director shall not
issue a license for the proposed additional
18 or relocated boat dealer until a final
decision is rendered determining
19 good cause exists for establishing an
additional boat dealer or relocating
20 a boat dealer and that the application for
the boat dealer's license should
21 be granted.
22 (e) The words or phrases used
in this section shall have the meanings
23 otherwise provided by law, except the
following specific words or phrases
24 shall have the following meanings:
25 (1) ``Line-make vessel''
means those vessels which are offered for
26 sale, lease or distribution under a common
name, trademark, service mark
27 or brand name of the manufacturer or
distributor of the same; and
28 (2) ``relevant market area''
means the area within:
29 (A) A radius of 10 miles
around an existing boat dealer in vessels, if
30 the existing boat dealer's principal
location is in a county having a pop-
31 ulation of 30,000 or more persons;
32 (B) a radius of 15 miles
around an existing boat dealer in vessels, if
33 the existing boat dealer's principal
location is in a county having a pop-
34 ulation of less than 30,000 persons; or
35 (C) the area of
responsibility defined in the franchise agreement of
36 the existing boat dealer, whichever is
greater.
37 (f) No person, entity,
licensee or their agents or employees, shall re-
38 quire the relocation, cancellation or
termination of an existing boat dealer
39 or otherwise take any action to penalize
any boat dealer who exercises
40 the rights provided under this section, or
undertake such action for the
41 purpose of preventing or avoiding the
exercise by a boat dealer of the
42 rights provided under this section. No
franchise agreement made, entered
43 or renewed after the effective date of this
act shall contain provisions
HB 2699
20
1 which avoid or circumvent the
requirements of this act.
2 (g) A boat dealer's
license may be denied, suspended or revoked, or
3 the renewal of a boat dealer's
license may be refused by the director for
4 the boat dealer's failure to comply
with this section or for otherwise vi-
5 olating its provisions.
6 (h) Any licensee, or
proposed licensee, aggrieved by a final order of
7 the director may appeal as provided
in subsection (d) of section 6.
8 Sec. 17. The provisions
of section 16, shall not apply to any proposed
9 establishment of an additional boat
dealer, including a supplemental place
10 of business, or relocation of an existing
boat dealer, as the case may be,
11 if a boat manufacturer, distributor or
factory branch provides a dispute
12 resolution mechanism for the establishment
of an additional boat dealer
13 or supplemental place of business or for
relocating a boat dealer which
14 meets the following criteria:
15 (a) The decision makers under
the dispute resolution mechanism
16 shall either be:
17 (1) Independent and not
employed by, or affiliated with the boat
18 manufacturer, distributor, factory branch
or boat dealers if there is no
19 specific process reached by prior agreement
between the protesting boat
20 dealer and the boat manufacturer,
distributor or factory branch; or
21 (2) an individual or panel
selected by a process mutually agreeable to
22 the protesting boat dealer and the boat
manufacturer, distributor or fac-
23 tory branch under the terms of the
franchise agreement between them.
24 (b) There is a standard for
deciding such cases under the terms of
25 the dispute resolution process which allows
a protesting boat dealer to
26 include evidence on impact upon the
existing boat dealers in addition to
27 any other factors expressly or implicitly
considered under the mechanism.
28 Sec. 18. (a) Whenever
application for a license as a boat salesperson
29 has been made, a temporary permit may be
granted by the director,
30 effective with the application date for the
boat salesperson license pro-
31 vided the boat salesperson is under direct
supervision whenever any sale
32 for a vessel is conducted. The temporary
permit shall be valid until such
33 time as the application is approved or
denied by the director but in no
34 case shall such temporary license be valid
for a period exceeding 45 days.
35 (b) The director shall not
grant to any person more than one tem-
36 porary boat salesperson's license, as
provided in subsection (a), during
37 any twelve-month period commencing with the
date on which the person
38 made application for licensing as a boat
salesperson and such temporary
39 permit was granted.
40 Sec. 19. It shall be unlawful
and constitute a misdemeanor, punish-
41 able by a fine not to exceed $2,500, for
any person to do business as a
42 boat dealer, boat manufacturer or boat
salesperson without a license is-
43 sued by the director. The isolated or
occasional sale of a vessel by a person
HB 2699
21
1 who owned such vessel shall not
constitute the doing of business as a boat
2 dealer.
3 Sec. 20. (a) Upon
proper application, on a form approved by the
4 division of vehicles, the director of
vehicles may authorize the display of
5 vessels at a location other than the
established or supplemental place of
6 business of a boat dealer provided
that the requirements of subsections
7 (i) and (n) of section 3 and section
4 are satisfied by the boat dealer. A
8 fee in the amount of $15 shall be
paid by an applicant for each application.
9 No sales transactions may occur at
such display locations.
10 (b) Authorization granted by
the director under this section shall be
11 granted only to boat dealers licensed by
the director and to no other
12 person, natural or otherwise. The
authorization shall be for a period not
13 to exceed 15 consecutive days unless
otherwise authorized by the director
14 of vehicles.
15 Sec. 21. The secretary of
revenue may adopt such rules and regula-
16 tions as are necessary for the
administration of this act.
17 Sec. 22. This act may be
cited as the boat dealers and manufacturers
18 licensing act.
19 Sec. 23. This act shall take
effect and be in force from and after
20 January 1, 1999, and its publication in the
statute book.
21