SUMMARY--Increases amount of bond required of vehicle manufacturers, distributors, dealers and rebuilders. (BDR 43-1723)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to motor vehicles; increasing the amount of bond required of vehicle manufacturers, distributors, dealers and rebuilders; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 NRS 482.345 is hereby amended to read as follows:
482.3451. Except as otherwise provided in subsection 6, before any dealer's license, dealer's plate, special dealer's plate, rebuilder's license or rebuilder's plate, distributor's license or distributor's plate or manufacturer's license or manufacturer's plate is furnished to a manufacturer, distributor, dealer or rebuilder as provided in this chapter, the department shall require that the applicant make an application for such a license and plate upon a form to be furnished by the department, and the applicant shall furnish such information as the department requires, including proof that the applicant has an established place of business in this state, and also, except as otherwise provided in subsection 2, procure and file with the department a good and sufficient bond in the amount of [$50,000] $100,000 with a corporate surety thereon, duly licensed to do business within the State of Nevada, approved as to form by the attorney general, and conditioned that the applicant shall conduct his business as a dealer, distributor, manufacturer or rebuilder without fraud or fraudulent representation, and without violation of the provisions of this chapter. The department may, by agreement with any dealer, distributor, manufacturer or rebuilder who has been in business for 5 years or more, allow a reduction in the amount of the bond of the dealer, if his business has been conducted satisfactorily for the preceding 5 years, but no bond may be in an amount less than [$5,000.] $50,000.
2. A manufacturer, distributor, rebuilder or dealer who manufactures, distributes or sells only motorcycles, horse trailers, tent trailers, utility trailers or trailers designed to carry boats shall file a bond as required by subsection 1 in the amount of [$5,000] $50,000 regardless of the length of time he has been in business.
3. The bond must be continuous in form and the total aggregate liability on the bond must be limited to the payment of the total amount of the bond, but in no case may the amount of any judgment in an action on such a bond exceed the retail value of any vehicle in connection with which the action was brought.
4. The undertaking on the bond includes any fraud or fraudulent representation or violation of any of the provisions of this chapter by the representative of any licensed distributor or the salesman of any licensed dealer, manufacturer or rebuilder who acts for the dealer, distributor, manufacturer or rebuilder on his behalf and within the scope of the employment of the representative or the salesman.
5. The bond must provide that any person injured by the action of the dealer, distributor, rebuilder, manufacturer, representative or salesman in violation of any provisions of this chapter may apply to the director, for good cause shown and after notice and opportunity for hearing, for compensation from the bond. The director may determine the amount of compensation and the person to whom it is to be paid. The surety shall then make the payment.
6. The provisions of this section do not apply to a manufacturer without an established place of business in this state.
Sec. 2 This act becomes effective on July 1, 1997.