Florida Senate - 2010                                    SB 1182
       
       
       
       By Senator Crist
       
       
       
       
       12-00865A-10                                          20101182__
    1                        A bill to be entitled                      
    2         An act relating to motor vehicle transactions;
    3         amending s. 316.1951, F.S.; directing the Department
    4         of Highway Safety and Motor Vehicles to adopt a
    5         uniform traffic citation to be used to enforce
    6         provisions that prohibit parking a motor vehicle on
    7         certain property for the purpose of displaying the
    8         motor vehicle as being for sale, hire, or rental;
    9         removing a requirement that each law enforcement
   10         agency provide its own notice for such enforcement;
   11         authorizing a code enforcement officer from any local
   12         government agency to enforce such provisions;
   13         providing that the owner of a vehicle parked in
   14         violation of such provisions is subject to a fine in
   15         addition to towing and storage fees; amending s.
   16         318.18, F.S.; specifying a fine for a vehicle that is
   17         displayed for sale, hire, or rental in violation of
   18         such provisions; amending s. 319.225, F.S.;
   19         prohibiting the department from requiring the
   20         signature of the transferor to be notarized on certain
   21         motor vehicle title transfer forms relating to mileage
   22         of the vehicle; requiring the forms to include an
   23         affidavit declaring facts in the document to be true;
   24         amending s. 319.23, F.S.; providing that, under
   25         certain circumstances, a motor vehicle dealer is not
   26         required to apply for a certificate of title for a
   27         motor vehicle sold to a general purchaser who resides
   28         outside the state; amending s. 320.02, F.S.; directing
   29         the department to place the name of the owner of a
   30         motor vehicle on the list of persons who may not be
   31         issued a license plate or revalidation sticker if that
   32         person is on a list submitted to the department by a
   33         licensed dealer; amending s. 320.27, F.S.; clarifying
   34         an exemption from certain dealer prelicensing
   35         requirements; removing a requirement for evaluation of
   36         privatized applicant training methods; limiting the
   37         issuance to a licensed dealer of supplemental off
   38         premises sale licenses; authorizing dealer records to
   39         be kept in either paper or electronic form; providing
   40         procedures for transfer of documents to electronic
   41         form; authorizing the department to deny, suspend, or
   42         revoke a dealer’s license for certain actions relating
   43         to payments made to the department; authorizing a
   44         dealer training school to cancel the training
   45         certificate issued to a student for certain actions
   46         relating to payments made to the school; providing an
   47         effective date.
   48  
   49  Be It Enacted by the Legislature of the State of Florida:
   50  
   51         Section 1. Section 316.1951, Florida Statutes, is amended
   52  to read:
   53         316.1951 Parking for certain purposes prohibited; sale of
   54  motor vehicles; prohibited acts.—
   55         (1) It is unlawful for any person to park a motor vehicle,
   56  as defined in s. 320.01, upon a public street or highway, upon a
   57  public parking lot, or other public property, or upon private
   58  property where the public has the right to travel by motor
   59  vehicle, for the principal purpose and intent of displaying the
   60  motor vehicle thereon for sale, hire, or rental unless the sale,
   61  hire, or rental of the motor vehicle is specifically authorized
   62  on such property by municipal or county regulation and the
   63  person is in compliance with all municipal or county licensing
   64  regulations.
   65         (2) The provisions of subsection (1) do not prohibit a
   66  person from parking his or her own motor vehicle or his or her
   67  other personal property on any private real property which the
   68  person owns or leases or on private real property which the
   69  person does not own or lease, but for which he or she obtains
   70  the permission of the owner, or on the public street immediately
   71  adjacent thereto, for the principal purpose and intent of sale,
   72  hire, or rental.
   73         (3) Subsection (1) does not prohibit a licensed motor
   74  vehicle dealer from displaying for sale or offering for sale
   75  motor vehicles at locations other than the dealer’s licensed
   76  location if the dealer has been issued a supplemental license
   77  for off-premises sales, as provided in s. 320.27(5), and has
   78  complied with the requirements in subsection (1). A vehicle
   79  displayed for sale by a licensed dealer at any location other
   80  than the dealer’s licensed location is subject to immediate
   81  removal without warning.
   82         (4) The Department of Highway Safety and Motor Vehicles
   83  shall adopt by rule a uniform written traffic citation notice to
   84  be used to enforce this section. Each law enforcement agency in
   85  this state shall provide, at each agency’s expense, the notice
   86  forms necessary to enforce this section.
   87         (5) A law enforcement officer, compliance officer, code
   88  enforcement officer from any local government agency, or
   89  supervisor of the department may cause to be removed at the
   90  owner’s expense any motor vehicle found in violation of
   91  subsection (1), which has been parked in one location for more
   92  than 24 hours after a written traffic citation notice has been
   93  issued. Every written traffic citation notice issued pursuant to
   94  this section shall be affixed in a conspicuous place upon a
   95  vehicle by a law enforcement officer, compliance officer, code
   96  enforcement officer, or supervisor of the department. Any
   97  vehicle found in violation of subsection (1) within 30 days
   98  after a previous violation and written traffic citation notice
   99  is subject to immediate removal without an additional waiting
  100  period.
  101         (6) It is unlawful to offer a vehicle for sale if the
  102  vehicle identification number has been destroyed, removed,
  103  covered, altered, or defaced, as described in s. 319.33(1)(d). A
  104  vehicle found in violation of this subsection is subject to
  105  immediate removal without warning.
  106         (7) It is unlawful to knowingly attach to any motor vehicle
  107  a registration that was not assigned or lawfully transferred to
  108  the vehicle pursuant to s. 320.261. A vehicle found in violation
  109  of this subsection is subject to immediate removal without
  110  warning.
  111         (8) It is unlawful to display or offer for sale a vehicle
  112  that does not have a valid registration as provided in s.
  113  320.02. A vehicle found in violation of this subsection is
  114  subject to immediate removal without warning. This subsection
  115  does not apply to vehicles and recreational vehicles being
  116  offered for sale through motor vehicle auctions as defined in s.
  117  320.27(1)(c)4.
  118         (9) A vehicle is subject to immediate removal without
  119  warning if it bears a telephone number that has been displayed
  120  on three or more vehicles offered for sale within a 12-month
  121  period.
  122         (10) Any other provision of law to the contrary
  123  notwithstanding, a violation of subsection (1) shall subject the
  124  owner of such motor vehicle to towing fees reasonably
  125  necessitated by removal and storage of the motor vehicle and a
  126  fine as required by s. 318.18.
  127         (11) This section does not prohibit the governing body of a
  128  municipality or county, with respect to streets, highways, or
  129  other property under its jurisdiction, from regulating the
  130  parking of motor vehicles for any purpose.
  131         (12) A violation of this section is a noncriminal traffic
  132  infraction, punishable as a nonmoving violation as provided in
  133  chapter 318, unless otherwise mandated by general law.
  134         Section 2. Subsection (21) is added to section 318.18,
  135  Florida Statutes, to read:
  136         318.18 Amount of penalties.—The penalties required for a
  137  noncriminal disposition pursuant to s. 318.14 or a criminal
  138  offense listed in s. 318.17 are as follows:
  139         (21) One hundred dollars for a violation of s. 316.1951 for
  140  a vehicle that is unlawfully displayed for sale, hire, or
  141  rental.
  142         Section 3. Paragraphs (a) and (b) of subsection (6) of
  143  section 319.225, Florida Statutes, are amended to read:
  144         319.225 Transfer and reassignment forms; odometer
  145  disclosure statements.—
  146         (6)(a) If the certificate of title is physically held by a
  147  lienholder, the transferor may give a power of attorney to his
  148  or her transferee for the purpose of odometer disclosure. The
  149  power of attorney must be on a form issued or authorized by the
  150  department, which form must be in compliance with 49 C.F.R. ss.
  151  580.4 and 580.13. The department shall not require the signature
  152  of the transferor to be notarized on the form; however, in lieu
  153  of notarization, the form shall include an affidavit with the
  154  following wording: UNDER PENALTY OF PERJURY, I DECLARE THAT I
  155  HAVE READ THE FOREGOING DOCUMENT AND THAT THE FACTS STATED IN IT
  156  ARE TRUE. The transferee shall sign the power of attorney form,
  157  print his or her name, and return a copy of the power of
  158  attorney form to the transferor. Upon receipt of a title
  159  certificate, the transferee shall complete the space for mileage
  160  disclosure on the title certificate exactly as the mileage was
  161  disclosed by the transferor on the power of attorney form. If
  162  the transferee is a licensed motor vehicle dealer who is
  163  transferring the vehicle to a retail purchaser, the dealer shall
  164  make application on behalf of the retail purchaser as provided
  165  in s. 319.23(6) and shall submit the original power of attorney
  166  form to the department with the application for title and the
  167  transferor’s title certificate; otherwise, a dealer may reassign
  168  the title certificate by using the dealer reassignment form in
  169  the manner prescribed in subsection (3), and, at the time of
  170  physical transfer of the vehicle, the original power of attorney
  171  shall be delivered to the person designated as the transferee of
  172  the dealer on the dealer reassignment form. A copy of the
  173  executed power of attorney shall be submitted to the department
  174  with a copy of the executed dealer reassignment form within 5
  175  business days after the certificate of title and dealer
  176  reassignment form are delivered by the dealer to its transferee.
  177         (b) If the certificate of title is lost or otherwise
  178  unavailable, the transferor may give a power of attorney to his
  179  or her transferee for the purpose of odometer disclosure. The
  180  power of attorney must be on a form issued or authorized by the
  181  department, which form must be in compliance with 49 C.F.R. ss.
  182  580.4 and 580.13. The department shall not require the signature
  183  of the transferor to be notarized on the form; however, in lieu
  184  of notarization, the form shall include an affidavit with the
  185  following wording: UNDER PENALTY OF PERJURY, I DECLARE THAT I
  186  HAVE READ THE FOREGOING DOCUMENT AND THAT THE FACTS STATED IN IT
  187  ARE TRUE. The transferee shall sign the power of attorney form,
  188  print his or her name, and return a copy of the power of
  189  attorney form to the transferor. Upon receipt of the title
  190  certificate or a duplicate title certificate, the transferee
  191  shall complete the space for mileage disclosure on the title
  192  certificate exactly as the mileage was disclosed by the
  193  transferor on the power of attorney form. If the transferee is a
  194  licensed motor vehicle dealer who is transferring the vehicle to
  195  a retail purchaser, the dealer shall make application on behalf
  196  of the retail purchaser as provided in s. 319.23(6) and shall
  197  submit the original power of attorney form to the department
  198  with the application for title and the transferor’s title
  199  certificate or duplicate title certificate; otherwise, a dealer
  200  may reassign the title certificate by using the dealer
  201  reassignment form in the manner prescribed in subsection (3),
  202  and, at the time of physical transfer of the vehicle, the
  203  original power of attorney shall be delivered to the person
  204  designated as the transferee of the dealer on the dealer
  205  reassignment form. A copy of the executed power of attorney
  206  shall be submitted to the department with a copy of the executed
  207  dealer reassignment form within 5 business days after the
  208  duplicate certificate of title and dealer reassignment form are
  209  delivered by the dealer to its transferee.
  210         Section 4. Subsection (6) of section 319.23, Florida
  211  Statutes, is amended to read:
  212         319.23 Application for, and issuance of, certificate of
  213  title.—
  214         (6)(a) In the case of the sale of a motor vehicle or mobile
  215  home by a licensed dealer to a general purchaser, the
  216  certificate of title must be obtained in the name of the
  217  purchaser by the dealer upon application signed by the
  218  purchaser, and in each other case such certificate must be
  219  obtained by the purchaser. In each case of transfer of a motor
  220  vehicle or mobile home, the application for a certificate of
  221  title, a or corrected certificate, or an assignment or
  222  reassignment, must be filed within 30 days after from the
  223  delivery of the motor vehicle or mobile home to the purchaser.
  224  An applicant must pay a fee of $20, in addition to all other
  225  fees and penalties required by law, for failing to file such
  226  application within the specified time. In the case of the sale
  227  of a motor vehicle by a licensed motor vehicle dealer to a
  228  general purchaser who resides in another state or country, the
  229  dealer is not required to apply for a certificate of title for
  230  the motor vehicle; however, the dealer must transfer ownership
  231  and reassign the certificate of title or manufacturer’s
  232  certificate of origin to the purchaser, and the purchaser must
  233  sign an affidavit, as approved by the department, that the
  234  purchaser will title and register the motor vehicle in another
  235  state or country.
  236         (b) If a licensed dealer acquires a motor vehicle or mobile
  237  home as a trade-in, the dealer must file with the department,
  238  within 30 days, a notice of sale signed by the seller. The
  239  department shall update its database for that title record to
  240  indicate “sold.” A licensed dealer need not apply for a
  241  certificate of title for any motor vehicle or mobile home in
  242  stock acquired for stock purposes except as provided in s.
  243  319.225.
  244         Section 5. Subsection (16) of section 320.02, Florida
  245  Statutes, is amended to read:
  246         320.02 Registration required; application for registration;
  247  forms.—
  248         (16) The department is authorized to withhold registration
  249  or re-registration of a motor vehicle if the name of the owner
  250  or of a coowner appears on a list submitted to the department by
  251  a licensed motor vehicle dealer for a previous registration of
  252  that vehicle. The department shall place the name of the
  253  registered owner of that vehicle on the list of those persons
  254  who may not be issued a license plate, revalidation sticker, or
  255  replacement plate for the vehicle purchased from the licensed
  256  motor vehicle dealer. The motor vehicle dealer must maintain
  257  signed evidence that the owner or coowner acknowledged the
  258  dealer’s authority to submit the list to the department if he or
  259  she failed to pay and must note the amount for which the owner
  260  or coowner would be responsible for the vehicle registration.
  261  The dealer must maintain the necessary documentation required in
  262  this subsection or face penalties as provided in s. 320.27. This
  263  subsection does not affect the issuance of a title to a motor
  264  vehicle.
  265         (a) The motor vehicle owner or coowner may dispute the
  266  claim that money is owed to a dealer for registration fees by
  267  submitting a form to the department if the motor vehicle owner
  268  or coowner has documentary proof that the registration fees have
  269  been paid to the dealer for the disputed amount. Without clear
  270  evidence of the amounts owed for the vehicle registration and
  271  repayment, the department will assume initial payments are
  272  applied to government-assessed fees first.
  273         (b) If the registered owner’s dispute complies with
  274  paragraph (a), the department shall immediately remove the motor
  275  vehicle owner or coowner’s name from the list, thereby allowing
  276  the issuance of a license plate or revalidation sticker.
  277         Section 6. Subsections (4), (5), and (6) and paragraph (a)
  278  of subsection (9) of section 320.27, Florida Statutes, are
  279  amended to read:
  280         320.27 Motor vehicle dealers.—
  281         (4) LICENSE CERTIFICATE.—
  282         (a) A license certificate shall be issued by the department
  283  in accordance with such application when the application is
  284  regular in form and in compliance with the provisions of this
  285  section. The license certificate may be in the form of a
  286  document or a computerized card as determined by the department.
  287  The actual cost of each original, additional, or replacement
  288  computerized card shall be borne by the licensee and is in
  289  addition to the fee for licensure. Such license, when so issued,
  290  entitles the licensee to carry on and conduct the business of a
  291  motor vehicle dealer. Each license issued to a franchise motor
  292  vehicle dealer expires annually on December 31 unless revoked or
  293  suspended prior to that date. Each license issued to an
  294  independent or wholesale dealer or auction expires annually on
  295  April 30 unless revoked or suspended prior to that date. Not
  296  less than 60 days prior to the license expiration date, the
  297  department shall deliver or mail to each licensee the necessary
  298  renewal forms. Each independent dealer shall certify that the
  299  dealer (owner, partner, officer, or director of the licensee, or
  300  a full-time employee of the licensee that holds a responsible
  301  management-level position) has completed 8 hours of continuing
  302  education prior to filing the renewal forms with the department.
  303  Such certification shall be filed once every 2 years commencing
  304  with the 2006 renewal period. The continuing education shall
  305  include at least 2 hours of legal or legislative issues, 1 hour
  306  of department issues, and 5 hours of relevant motor vehicle
  307  industry topics. Continuing education shall be provided by
  308  dealer schools licensed under paragraph (b) either in a
  309  classroom setting or by correspondence. Such schools shall
  310  provide certificates of completion to the department and the
  311  customer which shall be filed with the license renewal form, and
  312  such schools may charge a fee for providing continuing
  313  education. Any licensee who does not file his or her application
  314  and fees and any other requisite documents, as required by law,
  315  with the department at least 30 days prior to the license
  316  expiration date shall cease to engage in business as a motor
  317  vehicle dealer on the license expiration date. A renewal filed
  318  with the department within 45 days after the expiration date
  319  shall be accompanied by a delinquent fee of $100. Thereafter, a
  320  new application is required, accompanied by the initial license
  321  fee. A license certificate duly issued by the department may be
  322  modified by endorsement to show a change in the name of the
  323  licensee, provided, as shown by affidavit of the licensee, the
  324  majority ownership interest of the licensee has not changed or
  325  the name of the person appearing as franchisee on the sales and
  326  service agreement has not changed. Modification of a license
  327  certificate to show any name change as herein provided shall not
  328  require initial licensure or reissuance of dealer tags; however,
  329  any dealer obtaining a name change shall transact all business
  330  in and be properly identified by that name. All documents
  331  relative to licensure shall reflect the new name. In the case of
  332  a franchise dealer, the name change shall be approved by the
  333  manufacturer, distributor, or importer. A licensee applying for
  334  a name change endorsement shall pay a fee of $25 which fee shall
  335  apply to the change in the name of a main location and all
  336  additional locations licensed under the provisions of subsection
  337  (5). Each initial license application received by the department
  338  shall be accompanied by verification that, within the preceding
  339  6 months, the applicant, or one or more of his or her designated
  340  employees, has attended a training and information seminar
  341  conducted by a licensed motor vehicle dealer training school.
  342  Any applicant for a new franchised motor vehicle dealer license
  343  who has held a valid franchised motor vehicle dealer license
  344  continuously for the past 2 years and who remains in good
  345  standing with the department is exempt from the prelicensing
  346  training requirement. Such seminar shall include, but is not
  347  limited to, statutory dealer requirements, which requirements
  348  include required bookkeeping and recordkeeping procedures,
  349  requirements for the collection of sales and use taxes, and such
  350  other information that in the opinion of the department will
  351  promote good business practices. No seminar may exceed 8 hours
  352  in length.
  353         (b) Each initial license application received by the
  354  department for licensure under subparagraph (1)(c)2. shall must
  355  be accompanied by verification that, within the preceding 6
  356  months, the applicant (owner, partner, officer, or director of
  357  the applicant, or a full-time employee of the applicant that
  358  holds a responsible management-level position) has successfully
  359  completed training conducted by a licensed motor vehicle dealer
  360  training school. Such training must include training in titling
  361  and registration of motor vehicles, laws relating to unfair and
  362  deceptive trade practices, laws relating to financing with
  363  regard to buy-here, pay-here operations, and such other
  364  information that in the opinion of the department will promote
  365  good business practices. Successful completion of this training
  366  shall be determined by examination administered at the end of
  367  the course and attendance of no less than 90 percent of the
  368  total hours required by such school. Any applicant who had held
  369  a valid motor vehicle dealer’s license continuously within the
  370  past 2 years and who remains in good standing with the
  371  department is exempt from the prelicensing requirements of this
  372  section paragraph. The department shall have the authority to
  373  adopt any rule necessary for establishing the training
  374  curriculum; length of training, which shall not exceed 8 hours
  375  for required department topics and shall not exceed an
  376  additional 24 hours for topics related to other regulatory
  377  agencies’ instructor qualifications; and any other requirements
  378  under this section. The curriculum for other subjects shall be
  379  approved by any and all other regulatory agencies having
  380  jurisdiction over specific subject matters; however, the overall
  381  administration of the licensing of these dealer schools and
  382  their instructors shall remain with the department. Such schools
  383  are authorized to charge a fee. This privatized method for
  384  training applicants for dealer licensing pursuant to
  385  subparagraph (1)(c)2. is a pilot program that shall be evaluated
  386  by the department after it has been in operation for a period of
  387  2 years.
  388         (5) SUPPLEMENTAL LICENSE.—Any person licensed hereunder
  389  shall obtain a supplemental license for each permanent
  390  additional place or places of business not contiguous to the
  391  premises for which the original license is issued, on a form to
  392  be furnished by the department, and upon payment of a fee of $50
  393  for each such additional location. Upon making renewal
  394  applications for such supplemental licenses, such applicant
  395  shall pay $50 for each additional location. A supplemental
  396  license authorizing off-premises sales shall be issued, at no
  397  charge to the dealer, for a period not to exceed 10 consecutive
  398  calendar days at the authorized location; however, an off
  399  premises sale supplemental license under this subsection shall
  400  not be issued more often than once in any calendar month. To
  401  obtain such a temporary supplemental license for off-premises
  402  sales, the applicant must be a licensed dealer; must notify the
  403  applicable local department office of the specific dates and
  404  location for which such license is requested, display a sign at
  405  the licensed location clearly identifying the dealer, and
  406  provide staff to work at the temporary location for the duration
  407  of the off-premises sale; must meet any local government
  408  permitting requirements; and must have permission of the
  409  property owner to sell at that location. In the case of an off
  410  premises sale by a motor vehicle dealer licensed under
  411  subparagraph (1)(c)1. for the sale of new motor vehicles, the
  412  applicant must also include documentation notifying the
  413  applicable licensee licensed under s. 320.61 of the intent to
  414  engage in an off-premises sale 5 working days prior to the date
  415  of the off-premises sale. The licensee shall either approve or
  416  disapprove of the off-premises sale within 2 working days after
  417  receiving notice; otherwise, it will be deemed approved. This
  418  section does not apply to a nonselling motor vehicle show or
  419  public display of new motor vehicles.
  420         (6) RECORDS TO BE KEPT BY LICENSEE.—Every licensee shall
  421  keep a book or record in either paper or electronic such form as
  422  shall be prescribed or approved by the department for a period
  423  of 5 years, in which the licensee shall keep a record of the
  424  purchase, sale, or exchange, or receipt for the purpose of sale,
  425  of any motor vehicle, the date upon which any temporary tag was
  426  issued, the date of title transfer, and a description of such
  427  motor vehicle together with the name and address of the seller,
  428  the purchaser, and the alleged owner or other person from whom
  429  such motor vehicle was purchased or received or to whom it was
  430  sold or delivered, as the case may be. Such description shall
  431  include the identification or engine number, maker’s number, if
  432  any, chassis number, if any, and such other numbers or
  433  identification marks as may be thereon and shall also include a
  434  statement that a number has been obliterated, defaced, or
  435  changed, if such is the fact. When a licensee chooses to
  436  maintain electronic records, the original paper documents may be
  437  destroyed after the licensee successfully transfers title and
  438  registration to the purchaser as required by chapter 319 for any
  439  purchaser who titles and registers the motor vehicle in this
  440  state. In the case of a sale to a purchaser who will title and
  441  register the motor vehicle in another state or country, the
  442  licensee may destroy the original paper documents after
  443  successfully delivering a lawfully reassigned title or
  444  manufacturer’s certificate or statement of origin to the
  445  purchaser and after producing electronic images of all documents
  446  related to the sale.
  447         (9) DENIAL, SUSPENSION, OR REVOCATION.—
  448         (a) The department may deny, suspend, or revoke any license
  449  issued hereunder or under the provisions of s. 320.77 or s.
  450  320.771, upon proof that an applicant or a licensee has
  451  committed any of the following activities:
  452         1. Committed Commission of fraud or willful
  453  misrepresentation in application for or in obtaining a license.
  454         2. Been convicted Conviction of a felony.
  455         3. Failed Failure to honor a bank draft or check given to a
  456  motor vehicle dealer for the purchase of a motor vehicle by
  457  another motor vehicle dealer within 10 days after notification
  458  that the bank draft or check has been dishonored. If the
  459  transaction is disputed, the maker of the bank draft or check
  460  shall post a bond in accordance with the provisions of s.
  461  559.917, and no proceeding for revocation or suspension shall be
  462  commenced until the dispute is resolved.
  463         4.a. Failed to provide payment within 10 business days to
  464  the department for a check payable to the department that was
  465  dishonored due to insufficient funds in the amount due plus any
  466  statutorily authorized fee for uttering a worthless check. The
  467  department shall notify an applicant or licensee when the
  468  applicant or licensee makes payment to the department by a check
  469  that is subsequently dishonored by the bank due to insufficient
  470  funds. The applicant or licensee shall, within 10 business days
  471  after receiving the notice, provide payment to the department in
  472  the form of cash in the amount due plus any statutorily
  473  authorized fee. If the applicant or licensee fails to make such
  474  payment within 10 business days, the department may deny,
  475  suspend, or revoke the applicant’s or licensee’s motor vehicle
  476  dealer license.
  477         b. Stopped payment on a check payable to the department,
  478  issued a check payable to the department from an account that
  479  has been closed, or charged back a credit card transaction to
  480  the department. If an applicant or licensee commits any such
  481  act, the department may deny, suspend, or revoke the applicant’s
  482  or licensee’s motor vehicle dealer license.
  483         5.a. Failed to provide payment in the amount of tuition due
  484  plus any statutorily authorized fee within 10 business days to a
  485  licensed motor vehicle dealer training school for a check
  486  payable to the school that was dishonored due to insufficient
  487  funds in the amount of tuition due plus any statutorily
  488  authorized fee for uttering a worthless check. A licensed motor
  489  vehicle dealer training school shall notify a student when the
  490  student makes payment to the school by a check that is
  491  subsequently dishonored by the bank due to insufficient funds.
  492  The student shall, within 10 business days after receiving the
  493  notice, provide payment to the school in a manner designated by
  494  the school in the amount of tuition due plus any statutorily
  495  authorized fee. If the student fails to make such payment within
  496  10 business days, the motor vehicle dealer training school may
  497  cancel the training certificate issued to the student and notify
  498  the department of the cancellation of the training certificate.
  499         b. Stopped payment on a check payable to a licensed motor
  500  vehicle dealer training school, issued a check payable to a
  501  licensed motor vehicle dealer training school from an account
  502  that has been closed, or charged back a credit card transaction
  503  to a licensed motor vehicle dealer training school. If a student
  504  commits any such act, the motor vehicle dealer training school
  505  may cancel the training certificate issued to the student and
  506  notify the department of the cancellation of the training
  507  certificate.
  508         Section 7. This act shall take effect July 1, 2010.