License Applications; Prerequisites; License Fees; Renewal; Training or Test; Supplemental Licenses; Bonds; Insurance; Suspension for Conviction or False Statement; Meetings

  1. Law
  2. Georgia Code
  3. Professions and Businesses
  4. Used Motor Vehicle and Used Motor Vehicle Parts Dealers
  5. License Applications; Prerequisites; License Fees; Renewal; Training or Test; Supplemental Licenses; Bonds; Insurance; Suspension for Conviction or False Statement; Meetings

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  1. Applications for a license shall be made to the board, shall contain the information required by this chapter, and shall be accompanied by the fee prescribed by the board. Each applicant for a new license shall submit to the board such information as may be required by the Georgia Crime Information Center and by the Federal Bureau of Investigation, including classifiable sets of fingerprints, an affidavit by the applicant disclosing the date and nature of any conviction for the violation of any crime involving violence, a used motor vehicle, illegal drugs, tax evasion, failure to pay taxes, or any crime involving the illegal use, carrying, possession of a dangerous weapon, or moral turpitude, and such fees as may be set by the Georgia Crime Information Center and by the Federal Bureau of Investigation for a records check comparison by the Georgia Crime Information Center and by the Federal Bureau of Investigation. Application for a license under this chapter shall constitute consent for performance of a records check comparison.
  2. A division under this chapter shall not issue or renew any license unless the applicant or holder thereof shall show that he or she maintains an established place of business as defined in Code Section 43-47-2.
  3. All licenses issued under this chapter shall be renewable biennially. The divisions may establish continuing education requirements for license renewals.
  4. Each division may require either that within the preceding year the applicant has attended a training and information seminar approved by the division or that the applicant has passed a test approved by the division. Such seminar or test, if required, shall include, but shall not be limited to, dealer requirements of this chapter, including books and records to be kept; requirements of the Department of Revenue; and such other information as in the opinion of the division will promote good business practices. No seminar shall exceed one day in length.
  5. Supplemental licenses shall be issued for each place of business operated or proposed to be operated by the licensee that is not contiguous to other premises for which a license is issued.
  6. Each application for a license shall also show that the licensee has obtained, or has applied for, a certificate of registration, Department of Revenue Form ST-2, commonly known as a sales tax number certificate. The board shall not renew any license unless the applicant or holder thereof shall show that he or she maintains a certificate of registration, Department of Revenue Form ST-2, under the laws of this state providing for issuance of such certificates.
  7. Each application for a license shall show that the prospective licensee has or has made provision for a bond. The required bond shall be executed with a surety company duly authorized to do business in this state and shall be payable to the Governor for the use and benefit of any purchaser and vendees or successors in title of any used motor vehicle and shall be conditioned to pay all loss, damages, and expenses that may be sustained by such purchaser, his or her vendees, or successors in title that may be occasioned by reason of any misrepresentation, deceptive practice, or unfair practice or by reason of any breach of warranty as to such used vehicle.
  8. The bond shall be in the amount of $35,000.00 for used car dealers and $10,000.00 for used parts dealers and shall be filed, immediately upon the granting of the license, with the division director by the licensee and shall be approved by the division director as to form and as to the solvency of the surety. The prospective licensee may file the required bond with the division director for the division director's approval prior to the granting of a license.
  9. No licensee shall cancel, or cause to be canceled, a bond issued pursuant to this Code section unless the appropriate division is informed in writing by a certified letter at least 30 days prior to the proposed cancellation.
  10. If the surety or licensee cancels the bond and the licensee fails to submit, within ten days of the effective date of the cancellation, a new bond, the division may revoke his or her license.
  11. Each application for a license shall show that the licensee maintains public liability and property damage insurance with liability limits of not less than $50,000.00 per person and $100,000.00 per accident, personal insurance liability coverage, and $25,000.00 property damage liability coverage. Any licensee under Chapter 6 of this title shall be exempt from the requirements of this subsection.
  12. Each division may authorize the division director to issue a license when he or she has received the bond required by subsections (g) and (h) of this Code section, the proof of insurance required by subsection (k) of this Code section, and a fingerprint card for submission to the Georgia Crime Information Center and to the Federal Bureau of Investigation. Each completed application for a permanent license shall be reviewed by the appropriate division, which may deny licensure for any good reason under this chapter. Any other provision of law to the contrary notwithstanding, each applicant for a license pursuant to the provisions of this Code section shall agree in the application that if the applicant makes a false statement on the application or if the criminal record check returned from the Georgia Crime Information Center or from the Federal Bureau of Investigation reveals a conviction of or an entry of a plea of nolo contendere to a crime involving the use of violence, a used motor vehicle, or illegal drugs; tax evasion or failure to pay taxes; any crime involving the illegal use or possession of a dangerous weapon; or any crime involving moral turpitude, then the division shall be authorized to suspend the license without a prior hearing. The divisions shall each meet as needed, in their discretion. The board shall meet at least once each quarter and upon the call of the board chairperson for any special sessions.

(Ga. L. 1958, p. 55, § 8; Ga. L. 1960, p. 801, § 1; Ga. L. 1960, p. 980, § 1; Ga. L. 1968, p. 23, § 8; Ga. L. 1974, p. 1240, § 1; Ga. L. 1983, p. 550, §§ 3, 4; Ga. L. 1984, p. 22, § 43; Ga. L. 1985, p. 975, § 1; Ga. L. 1987, p. 369, § 2; Ga. L. 1988, p. 1504, § 4; Ga. L. 1991, p. 983, § 3; Ga. L. 1992, p. 2450, §§ 2, 3; Ga. L. 1995, p. 441, § 1; Ga. L. 1996, p. 6, § 43; Ga. L. 2000, p. 1706, § 19; Ga. L. 2002, p. 415, § 43; Ga. L. 2005, p. 334, § 25-5/HB 501; Ga. L. 2006, p. 688, § 1/HB 1075; Ga. L. 2010, p. 266, § 44/SB 195.)

Cross references.

- Ad valorem taxation of motor vehicles owned and held by dealers for retail sale, § 48-5-472.

Editor's notes.

- Ga. L. 2006, p. 688, § 2, not codified by the General Assembly, provides that the amendment to this Code section shall be applicable to bond renewals on or after January 1, 2007.

JUDICIAL DECISIONS

Holder of security interests not protected by bond.

- Bond requirement of O.C.G.A. T. 43, C. 47 was not intended to require a bond to provide for the benefit of, nor to make moneys available to, a holder of security interests in motor vehicles, having possession of certificates of title for those vehicles, who purchased such security interest, and obtained such certificates of title from a used car dealer, for damages sustained by the security interest holder as a result of fraudulent acts by the used car dealer. Specifically, the holder of a security interest is not a purchaser, vendee, or successor in title, within the meaning of O.C.G.A. § 43-47-8(h), to any of the used motor vehicles in question and is not among those classes of persons protected and entitled to be indemnified by a bond executed pursuant thereto. Wooten v. G.M.H. Auto Sales, Inc., 187 Ga. App. 331, 370 S.E.2d 165 (1988).

Surety claim brought in bad faith.

- Trial court properly awarded the surety company a bad faith attorney fee award and struck the counterclaim because the purchaser's bad faith counterclaim against the surety company as a corporate surety was not only brought under an inapplicable statute, namely O.C.G.A. § 13-6-11, but failed to meet the basic pleading requirements under O.C.G.A. § 13-6-11. Hicks v. Gabor, 354 Ga. App. 714, 841 S.E.2d 42 (2020).

Cited in Gibbs v. Jack Daniel Auto Sales, Inc., 163 Ga. App. 479, 294 S.E.2d 696 (1982).

OPINIONS OF THE ATTORNEY GENERAL

Only distinction made between wholesale and retail dealer is that retail dealers must maintain an established place of business which must be shown on the retail dealer's license application, whereas a wholesale dealer need not maintain such an establishment. 1971 Op. Att'y Gen. No. 71-163 (decided prior to 1983 amendment of § 43-47-2).

Each type of used car dealer should receive equal treatment and consideration from the board in all circumstances with the single exception of requiring an established place of business for retail dealers. 1971 Op. Att'y Gen. No. 71-163 (decided prior to 1983 amendment of § 43-47-2).

Board may invite representatives of other entities to participate in monthly seminar.

- State Board of Registration of Used Car Dealers may invite representatives of other entities, including trade associations, to participate in the board's monthly seminar so long as the ultimate responsibility for conducting (now "approving") the seminar remains with the board. 1983 Op. Att'y Gen. No. 83-69 (decided prior to 1987 amendment).

Surplus line insurance unacceptable for bond requirement.

- Board may not accept surplus line insurance in lieu of the surety bond required by O.C.G.A. § 43-47-8(h) for proper licensure. 1994 Op. Att'y Gen. No. 94-5.

Separate license not needed for each place of business.

- Under former law, persons licensed as used motor vehicle parts dealers did not have to apply for separate licenses for each place of business but were issued supplemental licenses for each location. 1989 Op. Att'y Gen. No. 89-58.

Dealer may auction wrecked or reparable motor vehicles without registering.

- Under former law, a licensed used motor vehicle parts dealer could auction wrecked or reparable motor vehicles without also being registered with the Georgia Auctioneers Commission as auctioning is incidental to the practice of a salvage pool dealer. However, a dealer could not auction items other than wrecked or reparable motor vehicles without an auction company license. 1989 Op. Att'y Gen. No. 89-58.

Entity possessing both licenses must maintain separate bonds under each.

- Under former law, a person or company possessing both a used motor vehicle parts dealer's license and an auction company's license was required to maintain separate bonds under each license. 1989 Op. Att'y Gen. No. 89-58.

RESEARCH REFERENCES

ALR.

- Validity of statute or ordinance which requires liability or indemnity insurance or bond as condition of license to conduct business or profession, 120 A.L.R. 950.

Right to enjoin business competitor from unlicensed or otherwise illegal acts or practices, 90 A.L.R.2d 7.


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