DAR File No. 28543

Commerce, Administration

R151-35

Powersport Vehicle Franchise Act Rule

NOTICE OF PROPOSED RULE

DAR File No.: 28543
Filed: 03/08/2006, 11:34
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this filing is to bring the rule into agreement with amendments to authorizing statutes.

Summary of the rule or change:

In accordance with the amendments to the authorizing statutes, this rule filing corrects statutory references and clarifies that the Executive Director of the Department is a presiding officer, that the Department staff handles the registration paperwork rather than the Utah Powersport Vehicle Franchise Advisory Board, and that notices of agency action shall comply with the Utah Administrative Procedures Act.

State statutory or constitutional authorization for this rule:

Sections 63-46b-1 et seq. and 13-35-101 et seq.

Anticipated cost or savings to:

the state budget:

This rule filing does not add any costs to the State Budget because the amendments are merely clarifying provisions. Any costs were previously addressed in passage of amendments to the authorizing statutes.

local governments:

This rule does not affect local government, because local government is not the regulated industry or the regulating body.

other persons:

This rule filing does not create any costs to the regulated individual or regulated industry because it merely clarifies existing provisions.

Compliance costs for affected persons:

This rule filing does not create any costs to the regulated individual or regulated industry because it merely clarifies existing provisions.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule filing contains technical and clarifying amendments that are not anticipated to create any fiscal impact to businesses beyond those previously addressed upon passage of amendments to the authorizing statutes. Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Masuda Medcalf at the above address, by phone at 801-530-7663, by FAX at 801-530-6446, or by Internet E-mail at mmedcalf@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/01/2006

This rule may become effective on:

05/02/2006

Authorized by:

Francine Giani, Executive Director

RULE TEXT

R151. Commerce, Administration.

R151-35. Powersport Vehicle Franchise Act Rule.

R151-35-1. Title.

This rule shall be known as the "Powersport Vehicle Franchise Act Rule".

R151-35-2. Authority - Purpose.

In accordance with the Powersport Vehicle Franchise Act, Title 13, Chapter 35, this rule governs [administrative]adjudicative proceedings before the Utah Powersport Vehicle Franchise Advisory Board and the Executive Director of the Department of Commerce, and is adopted under the authority of Subsection 13-35-104([1]2).

R151-35-3. Adjudicative Proceedings.

(1) Informal Proceeding. [Pursuant to Section 13-35-104, administrative and a]Adjudicative proceedings [conducted ]before the Board and the Executive Director [shall be conducted informally]are designated as informal adjudicative proceedings.

(2) Applicable Rules. In addition to Title 63, Chapter 46b, Utah Administrative Procedures Act, any adjudicative proceedings [required by]under the Powersport Vehicle Franchise Act shall be conducted in accordance with this rule and with the Department of Commerce Administrative Procedures Act Rule, R151-46b.

(3) Procedure for Substitution of Presiding Officer. In accordance with Section[s] 63-46b-2(1)(h)[ and 13-35-107(2)], the Executive Director of the Department may upon his/her own motion substitute an administrative law judge as the presiding officer to conduct certain aspects of the adjudicative proceedings before the Board if he/she determines that fairness to the parties would not be compromised by such substitution. The substitution order shall give any party who feels that such substitution would compromise fairness an opportunity to request the Executive Director to reconsider the substitution by submitting written objections and supporting arguments to the Executive Director. Upon reconsideration, the Executive Director may leave the order intact or make such other orders as he/she deems appropriate.

(4) Submissions. Except as otherwise expressly required or permitted in this Rule or in the Powersport Vehicle Franchise Act, all correspondence or other submissions shall be directed to the Chair of the Utah Powersport Vehicle Franchise Advisory Board at the Utah Department of Commerce.

(5) Form of Pleadings. A notice of agency action by the agency shall comply with the requirements of the Utah Administrative Procedures Act, Section 63-46b-3(2). A request to commence an adjudicative proceeding pursuant to Section 13-35-107(1),[for approval of an act regulated by the Powersport Vehicle Franchise Act] shall be [commenced by the filing of ]a pleading headed "BEFORE THE DEPARTMENT OF COMMERCE, UTAH POWERSPORT VEHICLE FRANCHISE ADVISORY BOARD" and captioned "Request for Agency Action." The pleading shall [be ]substantially [in ]compl[iance]y with the Utah Administrative Procedures Act, Section 63-46b-3(3), and the Department of Commerce Administrative Procedures Act Rule, R151-46b-7.

(6) Answer. If the presiding officer determines that an answer to any notice of agency action or request for agency action would be helpful to the proceedings, the presiding officer may order a party to the proceedings to file an answer.

(7) Memoranda. If the presiding officer determines that prehearing briefs would be helpful to the proceedings, the presiding officer may order the parties to submit memoranda in accordance with any scheduling order entered by the presiding officer.

(8) GRAMA. Any request[s] for records of the proceedings before the Board and the Executive Director will be governed by GRAMA (Government Records Access and Management Act), Utah Code Ann. Section 63-2-101 et seq. Any schedule of records classifications maintained by the Department shall be made available to the parties upon request.

R151-35-4. Registration.

(1) [Initial Registration. Each franchisor and franchisee doing business in this state]Each newly formed or otherwise not previously registered franchisor or franchisee shall request an initial registration form from the [Board]Department.[ The Board will provide an initial registration form to each known franchisor and franchisee.]

(2) Annual Renewals. The [Board]Department [wi]shall provide a renewal form to each registered franchisor and franchisee at least 30 and not more than 60 days prior to the expiration of the current registration.

(3) A registrant may use the form provided by the [Board]Department as its initial or renewal registration or may submit a registration or renewal request in another format so long as that request contains the following information:

(a) Name of dealership/manufacturer;

(b) Address of dealership/manufacturer;

(c) Owners or stockholders and percentage of holding (5% or above only);

(d) Line-makes manufactured, distributed, or sold;

(e) If applicable, dealer number; and

(f) Name and address of person designated for the purpose of receiving notices or process pursuant to the provisions of the Powersport Vehicle Franchise Act.

(4) [At the option of the Board chair, t]The processing of an application for registration by the Department [staff ]may be delayed for a reasonable time to give the registrant an opportunity to cure technical defects in an application for registration.

KEY: motorcycles, [dirt bikes]powersport vehicles, off road vehicles, franchises

Date of Enactment or Last Substantive Amendment: [June 17, 2003]2006

Authorizing, and Implemented or Interpreted Law: 13-35-101 et seq.

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Masuda Medcalf at the above address, by phone at 801-530-7663, by FAX at 801-530-6446, or by Internet E-mail at mmedcalf@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.