MINIMUM REQUIREMENTS FOR TENNESSEE MOTOR VEHICLE DEALER LICENSE

Transcription

1 STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE DIVISION OF REGULATORY BOARDS MOTOR VEHICLE COMMISSION 500 JAMES ROBERTSON PARKWAY, 5th FLOOR NASHVILLE, TENNESSEE FAX (615) MINIMUM REQUIREMENTS FOR TENNESSEE MOTOR VEHICLE DEALER LICENSE The following requirements must be met (or exceeded) to complete the Application Form for submission to the Commission office for review and final approval. 1. Established Place of Business- Applicants must have a permanent facility used exclusively for the motor vehicle dealership. The facility must be physically separate and apart from other business operations and shall not include a private residence of any sort. The facility may be connected to another business provided there solid wall with no interior doors between the two businesses and the motor vehicle facility has a separate, outside entrance and exit. Any doors between the businesses shall be permanently sealed. Temporary facilities are prohibited. Please send pictures that include the entire display lot, sign, hours & days of operation, posted landline phone, office, and restroom accommodations. Pictures to be taken from the street showing all entrances and exits. The office must be 288 square feet and that does not include the restroom. The facility must provide for functioning restroom accommodations. Must have a land line phone number must be posted on window or sign and listed in the directory. All motor vehicle dealers shall be open at their established place of business a minimum of three days a week that total 12 hours with 8 hours being Monday-Friday. These hours shall be posted either on the door to the dealership or on the dealership sign. The facility shall have capable of accommodating fifteen (15) motor vehicles of the dealership s product line and three (3) for customer parking. The lot shall consist of compacted gravel, chert, stone or similar materials and shall not include grass. See Rule Motor Vehicle Dealer Facilities. 2. Sign Requirements- Minimum of eight (8) inch letters of the entire dealership name including LLC or INC if applicable. The sign must be permanently installed and clearly visible from the road. Banners are not acceptable. 3. Insurance- Insurance Only a Certificate of Liability with a minimum of $300, per occurrence indicating Garage Liability or equivalent must be submitted with each application. The Certificate must indicate the complete name of the dealership that matches exactly the name on the application and physical business address. It must include a policy period. Coverage must be continued in force for the life of the license. The

2 certificate holder must be the Tennessee Motor Vehicle Commission at the above address. Applicable worker s compensation insurance may be shown on the same certificate. 4. Business Tax- A current business tax license issued by the County clerk and if applicable a city license must be obtained in the name of License that exactly matches the application of the entity to be licensed. If a dba is being used this must be reflected on the license. These licensed should be a Class Sales Tax- A copy of the current Certificate of Registration/Sales & Use tax certificate with the ID number and name that exactly matches the application. If a dba is being used it must appear on the certificate. 6. Financial Background Disclosure- The principal owner or if a partnership each partner must complete the financial background disclosure form. If an LLC the principal owner must sign the form and provide to the Commission. Form provided. 7. Financial Statement- A compiled financial statement indicating a minimum net worth of $10, accompanied by a compilation letter on the CPA s letterhead & include the CPA s license #. The compiled financial statement must be prepared in accordance with generally accepted accounting principles dated not earlier than twelve (12) months prior to the date of the application. If the CPA is not in the State of Tennessee a copy of the CPA s license must be furnished. 8. Corporation/LLC/LLP- If applicable, a copy of the charter or articles or organization of the entity as filed with the Tennessee Secretary of State must be provided, or if out-of state corporation or LLC provide a copy of Certificate of Authority to do business in Tennessee. Also, even if you own 100% interest in the Corporation, or are the only member of the LLC you will need a separate Salesperson license if your intention is to sell on behalf of the dealership. A stockholders form is required even if the entity is an LLC. This is to be completed and include the name of any officer or member that owns more than 5% of the entity. Please provide the home address and cell phone # for each listed stockholder. Form provided. 9. Zoning Compliance- Written approval from the local zoning/land-use Authority must be provided. In localities without zoning requirements, a written statement to this effect must be obtained from the authorized county or municipal official. Typically, these statements are prepared by the Office of the County Executive, or Office of the Municipality Mayor. The address must be stated on the letter and state that automobile sales is a permitted use. 10. Surety Bond - The surety bond minimum is $ 50, The duration of two (2) years beginning in the month of the expected license issuance and expiring on the last day of the same month two (2) years later. Only the original surety bond is acceptable and is to be signed by the principal owner of the dealership or if a partnership any partner must sign and must be submitted to the Commission with the license application. If a partnership, all partner s names must be listed. If a dba name is being used the bond has to reflect this. The name on the bond MUST be the same as the entity to be licensed and the dealer address MUST be the physical address of the dealership.

3 11. Conviction Record- If any owner or member of a corporation has been convicted of a felony, the applicant must furnish a copy of the final disposition papers. They must show how the felony was disposed and when, and contain the signature of the judge. 12. Service Agreement- If no mechanical repair facility is on-site, a Service Agreement with an operational repair garage within a reasonable distance from the licensee location must be provided and maintained during the licensing period. Any change in the designation facility must be reported to the Commission within 30 days of the change. 13. New Vehicle Dealer- A letter of acknowledgement sent from the motor vehicle manufacturer(s) of the awarding of the Franchise agreement(s) must be provided. Dealership name must be the same as the entity/ name to whom the Franchise was granted. A sworn statement containing the labor rate to be charged retail customers and the labor rate to be charged to the manufacturer(s) for warranty repairs must be provided. Thereafter, any change in the labor rated must be reported in writing to the Commission within 10 days after the change. Labor rate form provided. 14. Re-inspection Fees- A four hundred dollar ($400.00) fee will be assessed per reinspection of a applicant when re-inspection is necessitated by an action or inaction of the applicant. The fee must be paid before the re-inspection is ordered. 15. Dealer License Fees- Franchise vehicle dealer license fees $ per line make Used vehicle dealer license fees $ Franchise motorcycle dealer license fees $ per line make Name change fees $ Salesperson license fees $35.00 Applicable licensing fees are payable by cash, check, money order, or certified check. Checks are to be payable to Tennessee Motor Vehicle Commission. NOTE: Cash must be paid by the applicant to the Cashier s Office of the Department of Commerce and Insurance at the Davy Crockett Tower, First Floor, 500 James Robertson Pkwy, Nashville, TN DO NOT MAIL CASH. Field Investigators will NOT accept any payments. After all proper documentation of the above requirements has been submitted,there will be an on-site inspection of the facility. After inspection of facility, a final review of application documents and facility findings will be conducted. If approved a dealer license wil be issued. The expected delivery time is 14 days. Please provide an address where indicated on page 4 of the application. Reference information regarding laws and rules at the following website: Also under Quick Links at the above address all forms and FAQ s and etc. may be found.

4 Approving Process Timeline for Dealer Applications After having satisfied and completed all of the requirements on page four of the dealer application, you must submit your completed application along with your application fee to this office either by mail or in person to (Davy Crockett Tower 500 James Robertson Parkway 11th floor cashiers office). Application review only occurs after submission to cashiers office. After MVC receipt of the application you will be notified within two weeks by mail. You will receive a correction letter if there s something wrong or missing. Make sure you fix everything listed in the letter and mail requested information back to the State. After all the dealer application requirements are met you will receive a cell phone call from an Investigator to schedule an appointment for inspection of your facility, normally within five days. Once the State investigator completes their inspection of your facility they send the completed inspection form to this office for review. Final review of your dealer application will occur within three working days. Upon approval you will receive your license in the mail within ten working days. The License is printed at a remote site and mailed from a state mailing facility. Our staff never sees the license and cannot effect the license arrival date. Five Major Reasons Applications Are Held Up 1.Dealer must sign the bond and it must be the original bond. 2.The expiry date on the dealer bond must be two years from the last day of the month the application is submitted. If you submit your application on June 18, 2014, the expiry date on the bond should read June 30, Financial statement to include a compilation letter must be done by a CPA and if the CPA if not licensed in Tennessee they must send a copy of their license. 4.Application, you must answer every question on all five pages. 5.Pictures, you must send pictures of dealer facilities including outside of entire building, the lot, sign, posted hours, posted phone #, office and bathroom. Motor Vehicle Commission Rules may be found at: Please review contents, for compliance.

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6 Page 1 of 3 STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE REGULATORY BOARDS DIVISION TENNESSEE MOTOR VEHICLE COMMISSION 500 JAMES ROBERTSON PARKWAY DAVY CROCKETT TOWER NASHVILLE, TENNESSEE Eligibility Verification for Entitlements Act Attestation Instructions INSTRUCTIONS: If you are a natural person applying for a license, registration, certification or other benefit you must: 1. Attest, under penalty of perjury, to your status as either a United States citizen, a qualified alien as defined in Tennessee s Eligibility Verification for Entitlements Act, or a foreign national not physically present in the United States, by selecting your status in Part A below signing on the line labeled Applicant s Signature, printing your name on the line labeled Printed Name and putting the current date on the line labeled Date. AND Do one (1) of the following: 2. If you are claiming United States citizenship, present one (1) of the forms of identification provided for in Part B below. If you provided your Social Security Number as part of your application for licensure, registration, certificate or other benefit, no additional documentation is required; however, please be aware that efforts may be made to verify any such number. 3. If you are claiming qualified alien status, present two (2) forms of documentation of identity and immigration status, as determined by the United States Department of Homeland Security to be acceptable for verification through the SAVE program, as provided in Part C below. 4. If you are claiming qualified alien status but you are unable to present two (2) forms of documentation provided for in Part C of this form, then you shall present at least one (1) such document that shall then be verified through the SAVE program. or 5. If you are claiming you are foreign national not physically present in the United States, contact the program issuing the license, registration, certification or other benefit for which you are applying to provide such documentation as may be required to verify such status. IN-1806 (Rev. 07/14) RDA 10222

7 Page 2 of 3 Eligibility Verification for Entitlements Act Attestation TENNESSEE MOTOR VEHICLE COMMISSION Part A. Eligibility Verification for Entitlements Act Attestation I hereby attest under penalty of perjury that I am (select one): A United States citizen; A qualified alien as defined in Tenn. Code Ann ; 1 A foreign national not physically present in the United States. Further, I understand that should I ever become physically present in the United States while I hold this license, registration, certification or other benefit I agree to immediately contact the issuing agency and provide documentation to confirm my status as a qualified alien. Applicant s Signature Printed Name Date Submitting false information or omitting pertinent or material information in connection with this application or any violation of the Eligibility Verification for Entitlements Act may result in the revocation of any license, registration, certification or other benefit issued to the applicant. A person who willfully makes a false, fictitious or fraudulent statement or representation of United States citizenship may be prosecuted under 18 U.S.C. 911 and/or the False Claims Act, T.C.A , et seq. 1 Qualified alien means A qualified alien as defined by 8 U.S.C. 1641(b) or An alien or nonimmigrant eligible to receive state or local public benefits under 8 U.S.C. 1621(a). Pursuant to those statutes, this includes, but is not necessarily limited to: An alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act [8 U.S.C et seq.]; An alien who is granted asylum under section 208 of the Immigration and Nationality Act [8 U.S.C. 1158]; A refugee who is admitted to the United States under section 207 of the Immigration and Nationality Act [8 U.S.C.A. 1157]; An alien who is paroled into the United States under section 212(d)(5) of the Immigration and Nationality Act [8 U.S.C. 1182(d)(5)] for a period of at least 1 year; An alien whose deportation is being withheld under section 243(h) of the Immigration and Nationality Act [8 U.S.C. 1253] (as in effect immediately before the effective date of section 307 of division C of Public Law ) or section 241(b)(3) of the Immigration and Nationality Act [8 U.S.C. 1231(b)(3)] (as amended by section 305(a) of division C of Public Law ); An alien who is granted conditional entry pursuant to section 203(a)(7) of the Immigration and Nationality Act [8 U.S.C. 1153(a)(7)] as in effect prior to April 1, 1980; An alien who is a Cuban and Haitian entrant (as defined in section 501(e) of the Refugee Education Assistance Act of 1980); A nonimmigrant under the Immigration and Nationality Act [8 U.S.C. 1101, et seq.]; An alien who is paroled into the United States under section 212(d)(5) of the Immigration and Nationality Act [8 U.S.C (d)(5)] for less than one year. IN-1806 (Rev. 07/14) RDA 10222

8 Page 3 of 3 Eligibility Verification for Entitlements Act Additional Required Documentation Part B. If you are claiming United States citizenship, you must present one (1) of the following: A valid Tennessee driver license or photo identification license issued by the Department of Safety; A valid driver license or photo identification license from another state where the issuance requirements are at least as strict as those in Tennessee, as determined by the Department of Safety; An official birth certificate issued by a state, jurisdiction or territory of the United States, including Puerto Rico, United States Virgin Islands, Northern Mariana Islands, American Samoa, Swains Island, or Guam; provided that Puerto Rican birth certificates issued before July 1, 2010, shall not be recognized; A United States government-issued certified birth certificate; A valid, unexpired United States passport; A United States certificate of birth abroad (DS-1350 or FS-545); A report of birth abroad of a citizen of the United States (FS-240); A certificate of citizenship (N560 or N561); A certificate of naturalization (N550, N570 or N578); A United States citizen identification card (I-197, I-179); Any successor document of those listed at Tenn. Code Ann (c)(4)-(9); or A social security number that may be verified with the Social Security Administration in accordance with federal law (if you provided your social security number as part of your application for licensure, no additional documentation is required; however, please be aware that efforts may be made to verify any such number). Part C. If you are claiming qualified alien status, you must present two (2) forms of documentation of identity and immigration status, as determined by the United States Department of Homeland Security to be acceptable for verification through the SAVE program. Such forms of identification may include: I-327 (Reentry Permit); I-551 (Permanent Resident Card); I-571 (Refugee Travel Document); I-766 (Employment Authorization Card); Certificate of Citizenship; Naturalization Certificate; Machine Readable Immigrant Visa (with Temporary I-551 Language); Temporary I-551 Stamp (on passport or I-94); Unexpired Foreign Passport; WT/WB Admission Stamp in Unexpired Foreign Passport I-20 (Certificate of Eligibility for Nonimmigrant (F-1) Student Status); DS-2019 (Certificate of Eligibility for Exchange Visitor (J-1) Status); Any other document determined by the U.S. Department of Homeland Security to be acceptable through the Systematic Alien Verification for Entitlements (SAVE) program created pursuant to the federal Immigration Reform and Control Act of Part D. If you are claiming qualified alien status, but you are unable to present two (2) forms of documentation as described in Part C, then you shall present at least one (1) such document as described in Part C, which shall then be verified through the SAVE program. Part E. If you are claiming that you are a foreign national not physically present in the United States, please contact the program issuing the license, registration, certification or other benefit for which you are applying to provide such documentation as may be required to verify such status. IN-1806 (Rev. 07/14) RDA 10222

9 STATE OF TENNESSEE TENNESSEE MOTOR VEHICLE COMMISSION 500 JAMES ROBERTSON PARKWAY 5TH FLOOR NASHVILLE, TENNESSEE PHONE FAX NO File No. Xact No. Action: For Office Use Only Check type(s) of Application: NEW RECREATIONAL VEHICLES (Includes right to sell used R.V. s at same location) FRANCHISE MOTOR VEHICLE DEALER (Includes right to sell used cars and trucks at same location) FRANCHISE MOTORCYCLE DEALER (Includes right to sell used motorcycles at same location) ADDITIONAL LINE-MAKE RELOCATION APPLICATION USED MOTOR VEHICLE DEALER Application is hereby made for motor vehicle dealer license to engage in the business of selling motor vehicles in the state of Tennessee in compliance with the provisions of Tennessee Code Annotated 55-17, et seq. Print in black ink or type requested information. 1. Firm Name ( ) (Full name of Entity to be licensed)(use line below, if necessary) (Area Code & Phone No.) ( ) (Fax No. w/area Code) 2. (a) Location Address (Street) (City) (County) (Zip) (b) Mailing Address (if different, the mailing address must be in the same county) (P. O. Box or Street) (City) (County) (Zip) 3. If a Franchise Dealer or New Recreational Vehicle Dealer, each line-make is required to be licensed. List each line-make and names of manufacturers/distributors with whom you have a bona fide contract, sales and service agreement, or franchise for the retail sale of each of the makes of vehicles. Attach a copy of the manufacturer s franchise letter awarding each line-make. Line-make Name of Manufacturer/Distributor 1. 2.

10 (Line-make continued) Physical description of facility must exceed minimum requirements as per attached instruction sheet. Type of Building: (ex. wood, brick, block, etc.); Gross Building Area: (Square Feet); Land Size (Square Feet or Acreage) 5. Is the sale of motor vehicles or recreational vehicles the principal business at the location named in this application? (Yes or No) 6. Are you engaged in any other business which is conducted from this establishment? (Yes or No) If yes, describe: 7. Have any of the individuals, partners, or corporate officers named ever been convicted of a felony? (Yes or No) 8. Type of business (circle one); Proprietorship Partnership Corporation LLC LLP (a) If proprietorship give name, residential address and telephone number of owner: (b) If partnership, give name and residential address and telephone of each partner and designate managing partner or partners: (c) If corporation: (1) Domestic (Tennessee) - provide copy of Charter and any amendments: (2) Foreign (out-of-state) corporations - provide copy of a Certificate of Authority stating agent for service of process. (3) List name, address, and title of officers, directors, and any/all persons or entities owning more than five percent (5%) of outstanding shares of stock issued by the corporation on the Stockholders Information Update form. Form supplied with this application packet.

11 9. Have you ever filed for bankruptcy? If so, when and under what name: 10. All facilities must be manned and open during reasonable business hours. State what days per week and hours per day this business will be open. 11. Upon facility licensure, it is required that all dealers must license salespersons through this Commission before they can engage in the business of selling motor vehicles or recreational vehicles. You are required to return all salespersons license and identification cards once the salespersons employment is terminated. Salespersons license is non-transferable. Number of salespersons expected to be employed at start-up. 12. Do you have on-site facilities to repair and replace functional and non-functional parts of a motor vehicle or recreational vehicles? (Yes or No) 13. If no, attach a copy of your executed Service Agreement. Form IN-1448 is included with this application packet. 14. Has any application for a motor vehicle dealers or recreational vehicles license ever been denied, revoked or suspended in this or any other state? (Yes or No) If yes, explain below what precipitated the decision and attach any/all relevant documents. 15. Proof of liability insurance with a minimum coverage of $300,000 must be provided by a Certificate or Affidavit of Insurance. This insurance must remain in force for as long as the licensee is licensed. The Tennessee Motor Vehicle Commission must be listed as the certificate holder. 16. The prospective licensee must furnish a current financial statement with this application. See

12 memorandum in packet for instruction. I hereby certify that the statements in, or attached to this application are true and correct to the best of my knowledge and belief; that the members of this organization are familiar with the provisions of the law under which this application is made, and that I, as proprietor, partner, or officer of the corporation, have authority to make the statements contained here. I further attest that I will comply with each of the following requirements pursuant to Tenn. Code Ann (h): A) I shall maintain the surety bond required by subsections (d) and (g), as applicable, in force and effect during all times that the license is active; and B) I shall notify the commission upon a change in ownership or location of the dealership as required by FAILURE TO MAINTAIN A SURETY BOND AS REQUIRED BY T.C.A , OR NOTIFY THE MOTOR VEHICLE COMMISSION OF A CHANGE IN THE OWNERSHIP OR LOCATION OF THE DEALERSHIP AS REQUIRED BY T.C.A , MAY RESULT IN THE ASSESSMENT OF A CIVIL PENALTY AND/OR SUSPENSION OR REVOCATION OF THE MOTOR VEHICLE DEALER LICENSE. Date: Title: (Print or Type) Signed: (Authorized Signature) (Print Authorized Signature) Applicant s Address STATE OF COUNTY OF Subscribed and sworn to before me this day of,20. (SEAL) (Notary Public) My commission expires:

13 Mail application, attachments, and fee to the TENNESSEE MOTOR VEHICLE COMMISSION, 500 JAMES ROBERTSON PARKWAY, FIFTH FLOOR, NASHVILLE, TENNESSEE CHECK LIST OF ATTACHMENTS TO APPLICATION: 2 Year Surety Bond (Original) Copy of Zoning Letter Certificate of Liability Insurance Copy of Stockholders Update, if applicable Copy of State Sales Tax Certificate of Registration Copy of County Business Tax License Copy of City Tax license, if applicable Copy of signed Service Agreement, if applicable Copy of corporate charter, if applicable Copy (ies) of Financial Disclosure Copy of Franchise Letter(s) or Agreement Copy of Warranty Rate Form, if applicable Financial statement prepared by CPA As per Instruction included with packet IF CORP, LLC,LLP NEXT 2 ITEMS APPLY: IF FRANCHISE DEALER NEXT 2 ITEMS APPLY: Copy of Corporate Charter, if applicable Copy of Franchise letter(s) or Agreements Copy of Stockholders Update Copy of Labor Rate Form (Franchise dealer) IN-0592 (Rev.2/14) RDA 2225