HB 312

Abstract

This legislation closes several loopholes that dealers have been using to get around suspended or revoked dealership licenses. Currently the Division of Motor Vehicles will suspend or revoke a dealer license, and the dealer will get a family member or friend to apply for a dealership license and employ the suspended dealer at the dealership in a managerial, financial, or sales capacity thereby negating the suspension or revocation. This legislation closes that loophole by preventing a dealer who has had their license suspended, revoked, or renewal refused from being employed at Delaware licensed dealerships for periods of time commensurate with their revocation or suspension. Additionally, to prevent a further loophole wherein the dealer would simply turn in their dealer license upon receiving notice by the Division that their license will be revoked, suspended, or renewal refused, if the licensee chooses not to defend themselves they would be prohibited for the same time periods as if their license had been suspended, revoked, or renewal refused and be unable to do any of the qualifying employment for that period of suspension. This bill also extends the period of time of prohibited employment if the dealer does not turn in division documents and plates in its possession at the time of suspension or revocation. This bill does not seek to bar individuals from employment in other auto industry sectors such as auto repairs so long as they do not work at those dealerships in any of the prohibited positions.