Current through Register Vol. 49, No. 9, September, 2024
Pursuant to the authority granted by Ark. Code Ann. §
27-14-403 and
Act 1929 of 2005, as amended by Act 484 of 2009, the Director of the Arkansas
Department of Finance and Administration does hereby promulgate the following
rule governing the issuance and display of motor vehicle dealer license plates
and temporary tags by motor vehicle dealers:
A. DEFINITIONS.
1. Department. As used in this rule,
"Department" means the Arkansas Department of Finance and
Administration.
2. Director. As
used in this rule, "Director" means the Director of the Arkansas Department of
Finance and Administration, or any person designated by the Director as
authorized by Arkansas law.
3.
Motor Vehicle. As used in this rule, unless the context indicates otherwise,
the term "motor vehicle" means a vehicle, motorcycle, machine, or truck
tractor, propelled or drawn by mechanical power and used upon the highways in
the transportation of passengers or property and subject to registration in
Arkansas.
4. Motor Vehicle for
Sale.
a. As used in this rule, unless the
context indicates otherwise, the term "motor vehicle for sale" means any new or
used motor vehicle that is kept on the premises of the dealership during
business hours, unless the motor vehicle is being demonstrated, test driven, or
used as a loaner as specifically authorized in this rule.
b. In addition to the requirement of
subsection (A)(4)(a) of this rule, in order for a new motor vehicle to qualify
as a "motor vehicle for sale," the new motor vehicle must have a sticker
attached to the window as required by
15 U.S.C. §
1232, except that the sticker may be removed
when the vehicle is being driven but must be replaced in the window when not
being driven.
c. In addition to the
requirement of subsection (A)(4)(a) of this rule, in order for a used motor
vehicle to qualify as a "motor vehicle for sale," the used motor vehicle must
have a window sticker attached displaying warranty terms as required by 16
C.F.R. Part 455, except that the sticker may be removed when the vehicle is
being driven but must be replaced in the window when not being
driven.
5. Dealer. As
used in this rule, unless the context indicates otherwise, the term "dealer"
means a person, firm, or corporation engaged in the business of buying and
selling motor vehicles and licensed by the Arkansas Motor Vehicle Commission or
the Arkansas State Police.
6.
a. Dealer's Master License Plate. A dealer's
master license plate is the license plate issued to a dealer who has provided
the required dealer certification or a copy of the dealer's license from either
the Department of Arkansas State Police or the Arkansas Motor Vehicle
Commission to the director and paid a fee of One Hundred Dollars ($100). Any
reference in this rule to "dealer's plate" shall mean the dealer's master
license plate as defined in this subdivision.
b. Dealer's Extra License Plate. Dealer's
extra license plates are the license plates that are issued to a dealer who has
complied with the requirements to be issued a dealer's master license plate,
has identified each manager, sales manager, or salesperson employed by the
dealer, and has paid a fee of Twenty-five Dollars ($25) per dealer extra
license plate.
7.
Manager, Sales Manager, or Salesperson.
a. As
used in this rule, "Manager" is any person other than the dealer who is
responsible for the overall management of the dealership.
b. "Sales manager" is any person other than
the dealer who is responsible for the management of the salespersons of the
dealership.
c. "Salesperson" is:
(1) Any person who:
(a) Is employed as a salesperson by a motor
vehicle dealer whose duties include the selling or offering for sale of motor
vehicles;
(b) For compensation of
any kind, acts as a salesperson, agent or representative of a motor vehicle
dealer;
(c) Attempts to or in fact
negotiates a sale of a motor vehicle owned partially or entirely by a motor
vehicle dealer; and
(d) Uses the
financial resources, line of credit, or floor plan of a motor vehicle dealer to
purchase; sell, or exchange any interest in a motor vehicle, or
(2) Anyone who for compensation of
any kind operates as a salesperson, broker, agent, or representative of a used
motor vehicle dealer, or any person who attempts to or in fact negotiates a
sale of a vehicle owned partially or entirely by a used motor vehicle dealer,
or a person or drafter using the financial resources, line of credit, or floor
plan of a used motor vehicle dealer to purchase, sell, or exchange an interest
in a used motor vehicle.
d. The employment records of any persons
listed as "manager," "sales manager," or 'salesperson" will be subject to
review by the Department to verify their status with the dealership.
B. DEALER PLATES.
1. USE OF DEALER PLATES. Motor vehicle dealer
master license plates and extra license plates may not be placed on any vehicle
other than a motor vehicle for sale.
2. AUTHORIZED USERS. When a dealer's master
license plate or extra license plate is attached to any dealer-owned motor
vehicle, the motor vehicle may be used by only the following persons:
a. The dealer
b. A manager
c. A sales manager, or
d. A salesperson employed by the
dealership.
3.
AUTHORIZED USES OF VEHICLE WITH DEALER PLATES. A dealer, manager, sales
manager, or a salesperson employed by the dealership may use a vehicle with
dealer plates for the following purposes:
a.
To drive to or from work;
b. For
personal or business trips inside or outside the dealer's county of
residence;
c. To transport the
vehicle; or d. To demonstrate the vehicle.
4. NON AUTHORIZED USES.
a. Motor vehicle dealer license plates or
extra license plates may not be placed on work or service vehicles owned by a
dealer, manufacturer, or transporter.
b. A prospective buyer may test drive a
vehicle with dealer license plates or extra license plates only if the dealer,
manager, or salesperson of the dealer is present in the vehicle.
5. AUTHORIZED USERS LIST. Upon
initial application for, and renewal of, one or more dealer's extra license
plates, each motor vehicle dealer and motorcycle dealer is required to furnish
the Director of Department of Finance and Administration with a list of the
names of each of the dealer's managers, sales managers, and salespersons
authorized to operate a motor vehicle or motorcycle to which the plate has been
or will be attached.
6. LIMITATION
ON NUMBER OF DEALER'S EXTRA LICENSE PLATES ISSUED. The number of dealer's extra
license plates to be issued to any dealer shall be limited to the number of
managers, sales managers, and salespersons identified in the list required to
be furnished and described in subsection 5 of this section.
C. TEMPORARY PREPRINTED PAPER
BUYER'S TAG.
1. TEMPORARY PREPRINTED PAPER
BUYER'S TAG REQUIREMENT.
a. A person who buys
a motor vehicle from a licensed dealer is required to obtain a temporary
preprinted paper buyer's tag for the vehicle within five (5) business days
after the date of purchase, unless the buyer chooses to display the license
plate from a properly registered vehicle that is being replaced. See Section
C(5).
b. A buyer may obtain the
buyer's tag from the dealer, if the dealer has the capability to issue the
buyer's tag. A dealer who issues a buyer's tag shall indicate on the bill of
sale that a buyer's tag was issued.
c. If the dealer is unable to issue the
buyer's tag, the buyer must obtain the buyer's tag from the Office of Motor
Vehicle or an approved vendor. The buyer must maintain a copy of the bill of
sale in the vehicle until the buyer obtains the buyer's tag. The buyer must
provide to the Office or the vendor the buyer's name and the following
information regarding the vehicle: the date of sale, a copy of the bill of sale
or other documentation with the dealer's name, the vehicle identification
number, and the make and model.
d.
The buyer's tag shall be placed on the inside rear window of the vehicle. If
the vehicle does not have a rear window, the buyer's tag shall be placed at the
location for the permanent motor vehicle license plate. If a buyer's tag in the
license plate location is damaged or destroyed, the buyer must register the
vehicle or obtain a replacement buyer's tag from the dealer who issued the
original or from the Office of Motor Vehicle. A replacement buyer's tag expires
on the expiration date of the original buyer's tag.
e. At the time the buyer registers a vehicle,
the buyer shall pay a fee of the actual cost not to exceed One Dollar ($1.00)
for the buyer's tag that has been issued to the buyer for that
vehicle.
2. VALIDITY
PERIOD. The temporary preprinted paper buyer's tag is valid for the operation
of the vehicle until the earlier of the date on which the vehicle is registered
or the thirtieth (30th) day after the date of purchase. For purposes of this
rule, the date of purchase is the date listed on the sales invoice or the date
listed on the assignment of the certificate of title, whichever is
earlier.
3. EXTENSION OF
REGISTRATION PERIOD. If a transferee of a motor vehicle is allowed an extension
of the thirty (30) day registration period to obtain the release of the lien of
a prior lienholder, as provided by Ark. Code Ann. §
27-14-903(a)(2),
the dealer may issue one (1) additional temporary preprinted paper buyer's tag
to the transferee, to expire thirty (30) days from the date the additional
temporary tag is issued. If the dealer is unable to issue the tag, the
transferee may obtain the tag from the Office of Motor Vehicle.
4. REQUIRED DOCUMENTATION.
a. For each temporary preprinted paper
buyer's tag provided to a buyer, the issuer shall retain the following
documentation:
(1) Dealer's name and master
license plate number;
(2) Buyer's
name;
(3) Date the temporary
preprinted paper buyer's tag was issued;
(4) Vehicle's vehicle identification
number;
(5) Make and model of the
vehicle; and
(6) Expiration date of
the temporary preprinted paper buyer's tag.
b. An issuer of a buyer's tag shall provide
the documentation in subsection C(4)(a) of this rule to the Office of Motor
Vehicle on the date of sale for entry into the vehicle temporary tag
database.
5. A vehicle
purchaser who elects to display a plate that has been transferred from a
properly registered vehicle shall not be required to obtain or display the
temporary preprinted paper buyer's tag during the period prior to registration
of the newly purchased vehicle.
D. VEHICLES PROVIDED FOR PURPOSES OF
DEMONSTRATION OR AS A LOANER VEHICLE FOR REPAIR CUSTOMERS.
1. GENERAL INFORMATION.
a. DEMONSTRATION OF VEHICLE.
(1) A dealer may allow a prospective buyer to
test drive an unregistered vehicle for a period not to exceed seventy-two (72)
hours.
(2) If the date on which the
prospective buyer is required to return the vehicle to the dealer falls on a
Saturday, Sunday, or a legal holiday on which the dealer is not open for
business, then the prospective buyer will have until the next succeeding
business day that is not a Saturday, Sunday, or legal holiday to return the
vehicle to the dealer.
b. LOANER VEHICLE.
(1) A dealer may allow a repair customer to
drive an unregistered vehicle as a loaner while the customer's vehicle is being
repaired by or through the dealer for a period not to exceed fourteen (14)
calendar days.
(2) If the date on
which the prospective buyer is required to return the vehicle to the dealer
falls on a Saturday, Sunday, or a legal holiday on which the dealer is not open
for business, then the prospective buyer will have until the next succeeding
business day that is not a Saturday, Sunday, or legal holiday to return the
vehicle to the dealer.
2. TEMPORARY PREPRINTED PAPER TAG.
a. A dealer who allows a prospective buyer to
test drive a vehicle or a customer to drive a loaner vehicle and has the
capability to issue a temporary preprinted paper tag shall issue the tag and
place it in the rear window of the vehicle. If the vehicle does not have a rear
window, the paper tag shall be placed at the location for the permanent motor
vehicle license plate. The dealer may issue a replacement for the tag placed at
the license plate location if the original becomes damaged or destroyed. The
replacement tag does not extend the time the prospective buyer or repair
customer may drive the unregistered vehicle.
b. A dealer that issues a paper tag for use
by a prospective buyer or repair customer shall provide the documentation
required by subsection D(3)(b) to the Office of Motor Vehicle on the date the
paper tag is issued for entry into the vehicle temporary tag
database.
3. INFORMATION
SHEET.
a. A dealer without the capability of
issuing paper tags shall issue to the prospective buyer or repair customer a
test drive or loaner information sheet. The prospective buyer or repair
customer must keep the information sheet in the vehicle during the time the
buyer or customer has possession of the vehicle
b. The Director shall design the information
sheet and shall make it available at all state revenue offices and on the
Department of Finance and Administration website. The information required on
the information sheet is the:
(1) Year, make,
and model of the vehicle;
(2)
Vehicle identification number;
(3)
Prospective buyer's or customer's name;
(4) Time and date that the temporary
preprinted paper tag or information sheet was issued to the prospective buyer
or customer;
(5) Reason the vehicle
was furnished to the prospective buyer or customer; and
(6) Length of time the prospective buyer or
customer may retain the vehicle.
c. A dealer shall be allowed to make and use
photocopies of the information sheet designed by the Director in lieu of the
original provided by the Department.
d. The dealer must keep a copy of the
information sheet for examination by the Director at any reasonable
time.
4. TEST DRIVES OR
LOANER VEHICLES RETURNED THE SAME DAY. Neither a temporary preprinted paper tag
nor an information sheet is required if the prospective buyer or repair
customer is required to return the vehicle before the end of the business day
upon which the vehicle was provided. However, the dealer may provide an
information sheet to the customer, if the dealer elects to do so.
E. MOTORCYCLE DEALERS.
1. The Department shall provide distinctive
dealer's master and extra license plates for motorcycles.
2. Motorcycle dealers shall not be provided
and shall not be authorized to use dealer's license plates designed for any
motor vehicle other than a motorcycle unless the dealer provides proof to the
satisfaction of the Department that the dealer is also in the business of
selling new or used motor vehicles of the type for which the dealer plate is
sought.
3.
a.
Motorcycle dealers who also sell new or used motor vehicles
shall be issued only one dealer's extra license plate per manager, sales
manager, or salesperson employed by the dealer.
b. Example: A motorcycle dealer who also
sells new or used motor vehicles has ten employees authorized to use dealer's
extra license plates. Each employee is issued either a motor vehicle plate or a
motorcycle plate, but not both.
F. TRANSPORTING OF MOTOR VEHICLES WITHOUT
REGISTRATION.
1. A manufacturer or dealer
owning any vehicle of a type otherwise required to be registered under this
chapter may operate or move it upon the highways solely for purposes of
transporting it without registering each vehicle, upon condition that any such
vehicle display a dealer's master license plate, extra license plate, or
temporary preprinted paper tag. Any temporary preprinted paper tag issued by
the Department to a dealer to be used for transporting a vehicle will be valid
for 72 hours following the date the temporary tag is issued. A dealer may not
use a transporter plate issued under Ark. Code Ann. §
27-14-1806
to transport a vehicle.
2. A
manager, sales manager, or salesperson, may transport a vehicle owned by the
dealer using the dealer's master license plate, a dealer's extra license plate,
or a temporary preprinted paper tag.
3. Any employee of a dealer may transport a
vehicle owned by the dealer using a temporary preprinted paper tag.
G. UNOFFICIAL LICENSE PLATES.
1. No dealer, manager, sales manager,
salesperson, or employee of the dealership may attach to or display on any
automobile, Class One truck, trailer or semitrailer, motorcycle, or motorcycle
sidecar any license plate on the rear of the vehicle that is not furnished by
the Director of the Department of Finance and Administration.
2. No person, firm, or corporation, including
motor vehicle dealers, may reproduce or paint any license plate or registration
card in this state.
3. For purposes
of this section, "license plate" means any plate designed to be affixed to the
rear of a motor vehicle, including, but not limited to, plates advertising a
new or used car dealership or other type of business, rental car company
identification plates, or any plate or card with the designation "TAG APPLIED
FOR" or any similar designation.
H. PENALTIES.
1. Any dealer, manager, sales manager,
salesperson, or employee of the dealer who pleads guilty or nolo contendere to
or who is found guilty of the:
a. Misuse of a
dealer's master license plate or dealer's extra license plate or of allowing
anyone else to misuse a dealer's master or extra license plate; or
b. Misuse of a temporary preprinted paper
buyer's tag or of allowing anyone else to misuse a temporary preprinted paper
buyer's tag is subject to a fine of not more than $250 for the first offense,
not more than $500 for the second offense, and not more than $1,000 for the
third and subsequent offenses.
2. Any dealer who violates the provisions
regarding vehicles provided for demonstration or for repair customers (section
D of this rule) is subject to a fine of $25 per violation.
3. A buyer who pleads guilty or nolo
contendere to or who is found guilty of failing to obtain, altering, or failing
to display a temporary preprinted paper buyer's tag within five (5) business
days of the purchases of a motor vehicle is subject to a fine of not more than
$250 for the first offense, not more than $500 for the second offense, and not
more than $1,000 for the third and subsequent offenses.