HB 2008 — Relating to the Dealer Recovery Program

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Red = new code to be enacted WEST virginia legislature regular session ENROLLED Committee Substitute for House Bill 2008 (By Delegates Gearheart and Hamrick) [Passed[Originating Marchin 9,the 2018;Committee on Finance;

inFebruary effect22, ninety2018] daysA fromBILL passage.] AN ACT to amend and reenact §17A-6-2a of the Code of West Virginia, 1931, as amended, relating generally to the Dealer Recovery Fund;

(a) There is hereby created a special fund in the State Treasury which is to be designated the “Dealer"Dealer Recovery Fund.” Fund."  The fund shall consist consists of certain moneys received from persons engaged in the business of selling new or used motor vehicles, new or used motorcycles, trailers, semi-trailers multitrailers or recreational vehicles or and from grants, gifts, bequests or awards arising out of the settlement or adjudication of a claim.  The fund is not to be treated by the Auditor and Treasurer as part of the general revenue of the state.  The fund is to be a special revolving fund paid out upon order of the Commissioner of Motor Vehicles based on the recommendation of the Dealer Recovery Fund control board created in this section, solely for the purposes specified in this section.  The commissioner may use up to one percent of funds from the Dealer Recovery Fund for the administrative expenses of operating the Dealer Recovery Fund program.

(b) The Dealer Recovery Fund control board shall consist consists of the Commissioner of Motor Vehicles or his or her designee, the Attorney General’sGeneral's designee representing the Office of Consumer Protection and one representative selected by the Motor Vehicle Dealer’sDealer's Advisory Board.  The Commissioner of Motor Vehicles or his or her designee shall serve serves as chair and the board shall meet at least once a year during the month of July, and as required by the commissioner.  The board may hear claims consistent only with the purposes specified in this section.

The recommendation of the board requires a majority vote of the board.  The commissioner may propose rules for promulgation in accordance with article three, chapter twenty-nine-a §29A-3-1 et seq.

of this code that are necessary to effectuate the provisions of this section.  The commissioner may employ the necessary staff needed to operate the program.  The board may prorate the amount paid on claims when the aggregate amount of valid claims submitted would exceed thirty-three 33 percent of the fund.  However, claims presented by the Division of Motor Vehicles for taxes and fees shall be paid in full.  The board may purchase insurance at a cost not to exceed one percent of the fund to cover extraordinary or excess claims from the fund.

 (j)(i)(j) The maximum claim against the fund for any unpaid lien of a used vehicle is the unpaid balance of the lien up to the loan value of the vehicle as of the date of the sale or other transaction as shown by a generally accepted motor vehicle value guide.  The maximum claim against the fund for any new or unused vehicle is the amount of the invoice less any amounts rebated or to be rebated to the dealer from the manufacturer.  Payment is only to be made to a secured party who agrees to accept payment from the Dealer Recovery Fund and who accepts the payment in full settlement of any claims, and who releases the lien and the title, if applicable, prior to receiving payment.  Any dealer who agrees to accept payment from the Dealer Recovery Fund shall release the title prior to receiving payment.

 (k)(j)(k) On payment by the board to a claimant from the fund, the board shall immediately notify the licensee against whom a claim was paid and request full reimbursement within thirty days of notification.  If a dealer fails to fully reimburse the board within the specified period of time, the commissioner shall immediately and without prior hearing revoke the dealer license of dealer against whom the claim was paid.  No applicant with an unpaid claim is eligible for renewal or relicensure until the full amount of the reimbursement plus interest as determined by the board is paid to the fund.  Nothing in This section shall does not limit the authority of the commissioner to suspend, revoke or levy civil penalties against a dealer, nor shall does full repayment of the amount owed to the fund necessarily nullify or modify the effect of any action by the commissioner.

 (l)(k)(l) Nothing in This section shall does not limit the right for of any person to seek relief though civil action against any other person.

 (m)(l)(m) The provisions of this section do not apply to those class DTR dealers in the business of selling manufactured housing and covered by the state manufactured housing recovery fund established by the Division of Labor pursuant to a legislative rule.