§ 40-12-395 — License - Supplemental Licenses; Off-Site Sales

(a) A person licensed under this article shall obtain a supplemental license for each additional place of business, in a manner as prescribed by the commissioner and upon payment of an additional application fee of five dollars ($5) for each additional location. The signage and other requirements of Section 40-12-392 shall apply to each additional place of business. Only one licensed dealer shall operate at the same place of business.
(b) Notwithstanding the requirement that sales of new and used motor vehicles shall be made only from the permanent location of the new or used motor vehicle dealer, such dealers may conduct sales of new and used motor vehicles from locations off-site of their permanent locations on the following conditions:
(1) The off-site sales events shall not exceed three per dealer per license year with each sale not to exceed 10 consecutive calendar days in duration. Off-site sales of new motor vehicles by new motor vehicle dealers shall be conducted only at a location within the new motor vehicle dealer’s area of responsibility as defined in the contract or franchise agreement between the new motor vehicle dealer and its manufacturer or distributor. Off-site sales of used motor vehicles shall be conducted only at a location in the county or city where the new or used motor vehicle dealer maintains a permanent location.
(2) The off-site sale need not be conducted in a building or permanent structure, but the facilitator shall display a temporary sign at the location where the off-site sale is conducted identifying the name of the facilitator who is conducting the sale as stated on the license required by subdivision (3) and the name of the motor vehicle dealers who are participating in the sale as stated on the license required by subdivision (4). All advertisements and other notices of the sale must be conducted in the name of the facilitator.
(3)a. At least 10 calendar days before conducting each off-site sale, the facilitator of the off-site sale shall obtain a master off-site sale license by making a license application to the commissioner and paying an application fee of twenty-five dollars ($25) for each off-site sale. On the application, the facilitator shall list each participating motor vehicle dealer and the participating motor vehicle dealer’s off-site sale license number, as required in subdivision (4). The off-site sale license required in subdivision (4) is not required if the facilitator and motor vehicle dealer are the same entity. Each motor vehicle dealer participating in the off-site sale shall obtain an off-site license required by subdivision (4) and provide the license to the facilitator prior to the facilitator making the application.
b. The failure of a facilitator to disclose participating motor vehicle dealers shall subject the facilitator to the following penalties:
1. A facilitator that is a bonded agent of the state and in violation of this section shall be subject to a statutory notice of non-compliance. Subsequent violations may result in the suspension or revocation of designated agent status pursuant to Section 32-8-3 and rules adopted under that section.
2. A facilitator that is not a bonded agent of the state that is in violation of this section shall be subject to the penalty provisions as provided in subsection (d) of Section 40-12-392.
(4) At least 10 calendar days before conducting each off-site sale, the motor vehicle dealer shall obtain an off-site sale license by making license application to the commissioner and paying an application fee of twenty-five dollars ($25) for each off-site sale to be conducted. If more than one motor vehicle dealer participates in the same off-site sale, each motor vehicle dealer participating in the sale shall obtain an off-site sale license from the commissioner.
(5) This subsection shall not be construed to prohibit a new or used motor vehicle dealer from delivering a motor vehicle off-site or from selling a motor vehicle to a customer at the customer’s home or place of business.
(c) In addition to the foregoing, the motor vehicle dealer shall obtain from the judge of probate or other county licensing official a county license for the off-site location by paying the county license tax imposed pursuant to Sections 40-12-51, 40-12-62, and 40-12-169, and shall provide to the commissioner proof of payment of the license upon application for each off-site sale. If more than one motor vehicle dealer participates in the same off-site sale, each motor vehicle dealer participating in the sale shall obtain from the judge of probate or other county licensing official a county license for the off-site location by paying the county license tax imposed pursuant to Sections 40-12-51, 40-12-62, and 40-12-169.
(d) For purposes of this section, a new motor vehicle dealer temporarily displaying new vehicles at a shopping mall, auto show, or other location solely for advertising or display purposes and from which location sales are not conducted, shall not be deemed to be conducting an off-site sale and no off-site sales license shall be required.
(e) For purposes of this section, an off-site sales license shall not be required for wholesale sales between licensed motor vehicle dealers or for retail sales by new or used motor vehicle dealers conducted at the permanent location of an auction company which is licensed as a used motor vehicle dealer or motor vehicle wholesale auction.

Legislative History

(Acts 1978, No. 539, p. 597, §5; Act 2004-534, p. 1126, §1; Act 2014-158, p. 445, §2; Act 2019-244, §1; Act 2022-344, §1.)