Chapter 4501:1-4 Motor Vehicle Salvage Dealers

4501:1-4-01 Definitions.

(A) A "retail sale" means the act or attempted act of selling, bartering, exchanging, or otherwise disposing of a salvage motor vehicle to an ultimate purchaser for use as a consumer.

The motor vehicle salvage dealer shall be responsible to collect the applicable tax associated with a "retail sale". The amount of such tax to be collected, will be the tax applicable in the county where the salvage motor vehicle title will be obtained by the purchaser.

(B) A "motor vehicle salvage dealer" means a person who operates a motor vehicle salvage facility or any establishment or place of business which is maintained, used, or operated for the purpose of buying or selling salvage motor vehicles.

(C) A "salvage motor vehicle pool" means any person who is engaged in the business of storing, displaying, and offering for sale salvage motor vehicles as an agent for a third party.

(D) A "salvage motor vehicle auctioneer" means any person who is engaged in the business of auctioning salvage motor vehicles for himself or as an agent for a third party.

(E) A "salvage motor vehicle" means any motor vehicle which is in a wrecked, dismantled, or worn out condition, or unfit for operation as a motor vehicle.

(F) A "motor vehicle salvage facility" means any establishment or place of business which is maintained, used, or operated for buying or selling wrecked, scrapped, ruined, or dismantled motor vehicles or motor vehicle parts.

(G) An "established place of business" means any site where commercial transactions take place and where merchandise and inventory are stored. Such establishment shall be in accordance with rule 4501:1-4-04 of the Administrative Code.

(H) "Insufficient responsibility" means a business net worth of less than twenty thousand dollars.

(I) A "suitable photograph" means a photograph of the facility, showing the sign on or in front of the established place of business.

R.C. 119.032 review dates: 10/05/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.01
Rule Amplifies: R.C. 4738.01(A)to(E)
Prior Effective Dates: 12/1/80

4501:1-4-02 Information to accompany application for motor vehicle salvage dealer's license, salvage motor vehicle pool license, salvage motor vehicle auction license, or buyer's identification card.

(A) The application and necessary forms for a license may be obtained from the registrar of motor vehicles. No application shall be accepted for a motor vehicle salvage dealer's license, salvage motor vehicle pool license or salvage motor vehicle auction license unless the application for such license is accompanied by the following information:

(1) A suitable photograph of the premises for which the license is sought showing a suitable sign identifying the ownership of said premises in the same name in which the application is filed.

(2) A report from the local law enforcement agencies checked on a state-wide basis through the bureau of criminal identification and investigation. The report shall indicate all of the offenses of which the applicant has been convicted.

(B) The principal officer of a corporation and the manager or operator of the corporation, all trustees of a business trust, each partner of a partnership, each member of a limited liability company, and each designated employee to act as a buyer for the licensee shall furnish a complete report from the local law enforcement agencies checked on a state-wide basis through the bureau of criminal identification and investigation, as listed in paragraph (A)(2) of this rule, to the registrar of motor vehicles with each application applied for.

Replaces: 4501:1-4-02

Effective: 12/19/2010
R.C. 119.032 review dates: 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11 , 4738.12 , 4738.15 , 4738.18
Rule Amplifies: R.C. 4738.02 , 4738.04 , 4738.18
Prior Effective Dates: 12/1/80, 1/1/99

4501:1-4-03 [Rescinded]Contents of application for a motor vehicle salvage dealer's license, salvage motor vehicle pool license, salvage motor vehicle auction license and renewal procedures.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11 , 4738.12 , 4738.15
Rule Amplifies: R.C. 4738.02 , 4738.03 , 4738.04
Prior Effective Dates: 12/1/80, 1/1/99

4501:1-4-04 Place of business required for motor vehicle salvage dealers, salvage motor vehicle pools and salvage motor vehicle auctions.

(A) The characteristics of the facilities used by motor vehicle salvage dealers, salvage motor vehicle pools and salvage motor vehicle auctions, shall consist of the following:

(1) A minimum area of fifty thousand square feet. For those motor vehicle salvage dealers who certify on the application that the dealer's business is exclusive to motorcycles, motor scooters, and all purpose vehicles as defined in division (B) of section 4519.01 of the Revised Code, a minimum area of five thousand square feet is required. As used in this paragraph, "exclusive" means one hundred per cent of the dealer's business;

(2) Such area to be shielded by a fence meeting the following requirements, except where relieved by zoning rules:

(a) Having a minimum height of six feet with a maximum of ten feet in height.

(b) Such fencing shall shield the premises from ordinary view.

(c) Exceptions to this paragraph must be granted in writing, by the registrar of motor vehicles, provided, however, that no exception shall be granted in contravention of the relevant provisions of sections 4737.07 and 4737.09 of the Revised Code.

(3) A living hedge of equal height and sufficient density to prevent view of the premises may be substituted for the fence. A living hedge may exceed the ten-foot height limitation.

(4) Reasonable consideration shall be given to the topography of the land by enforcement personnel when inspecting premises for such fence or enclosure, provided, however, that this provision shall not be construed to permit violation of the relevant provisions of sections 4737.07 and 4737.09 of the Revised Code.

(5) All inventory of the business will be stored behind the fence or enclosure to promote and preserve a positive visual impact of the salvage yard's business on the surrounding neighborhood. All activities of the salvage yard will be conducted in a manner that will sustain a good visual image.

(6) All non-owned vehicles in storage for the general public shall be held in an area segregated and easily identifiable from the inventory of the licensee. The licensee shall maintain a separate record of all transactions concerning these vehicles.

(B) The office in which such business will be transacted will be in a building of sufficient size to conduct said business with a minimum of two hundred twenty-five square feet. This area shall consist of the following:

(1) An area devoted to sales transactions.

(2) An office to maintain records required to operate business by the licensee.

(C) The regular business hours shall be posted in plain view, and the facility shall be open and attended by someone who may reasonably assist a retail customer during the posted hours.

(D) Records of the business shall be available for inspection during reasonable business hours by board investigators.

(E) Each motor vehicle salvage dealer, salvage motor vehicle pool dealer or salvage motor vehicle auctioneer shall keep his license, or a certified copy thereof, posted in a conspicuous place in each business establishment.

(F) Each motor vehicle salvage dealer, salvage motor vehicle pool dealer, or salvage motor vehicle auction facility shall be equipped with a suitable sign, properly maintained, prominently displayed, and permanent, at or near the entrance to the facility identifying the ownership of the business in the same name in which the application is filed. Sign letters identifying the business shall be no less than six inches high unless otherwise approved by the registrar of motor vehicles.

(G) No two dealers may operate from the same location unless they agree to be jointly, severally and personally liable for all liabilities arising from their operation at the same location. Such agreement shall be filed with the bureau of motor vehicles and made a part of the articles of incorporation of each such dealer filed with the secretary of the state of Ohio. The board may revoke the license of any class of dealers referred to in this rule who operate from the same location without the agreement specified in this paragraph.

Effective: 02/01/2013
R.C. 119.032 review dates: 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4501.02 , R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80, 8/10/81, 12/8/88, 1/1/99, 12/19/10

4501:1-4-05 Method of instituting complaints.

The board may, upon its own motion, investigate any license holder for alleged violations of law or of the rules of this board. If such investigation discloses any such violations, such license holder shall be informed that reasonable grounds for suspension or revocation of the license exist.

The board shall, upon verified written complaint of any person filed with the secretary or acting secretary of the board, investigate as to the matters complained of, and if such investigation develops any apparent violation of the laws or of the rules of this board, such license holder shall be informed that reasonable grounds for suspension or revocation of the license exist.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80

4501:1-4-06 Notice of hearing.

When in the opinion of the board, reasonable grounds for issuance of a citation exist, i.e., violation of the rules governing the salvage motor vehicle dealer, salvage motor vehicle pool, or salvage motor vehicle auction dealer or has been convicted of committing a felony or violating any law which in any way relates to the theft of motor vehicles, the secretary or acting secretary of the board shall send a notice of opportunity for hearing by certified mail, return receipt requested, to the license holder cited at the address specified in the application for license. Such notice shall specify the alleged violation of the Revised Code or the rules of the board, and shall apprise the licensee of his/her right to request an adjudicatory hearing on the matter.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80

4501:1-4-07 Date, time and place of hearing.

If requested by the license holder in writing, within thirty days after mailing of the notice of opportunity for hearing, the board must set the date, time and place of hearing, and immediately notify the license holder. The date for such hearing shall be within seven to fifteen days after the party has requested a hearing. If the license holder fails to respond to notice of opportunity for hearing within thirty days, the board may consider the charges as proven and may, in its discretion and without a hearing, suspend or revoke the license.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80

4501:1-4-08 Continuances.

(A) Any hearing may be postponed or continued by the board on its own motion, or within the discretion of the board at the request of the license holder for such period of time and upon such terms as the board may prescribe.

(B) The license holder requesting continuances shall submit to the board, at least five days prior to the date set for the hearing, a written request, stating the reasons for the desired continuance. Verified statements setting out the grounds for the continuance shall be filed with the request.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80

4501:1-4-09 Stenographer's record.

At any hearing before the board, the record of which may be the basis of an appeal to a court, a stenographic record of the testimony and other evidence submitted shall be taken at the expense of the board.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80

4501:1-4-10 Hearing procedure.

In all hearings before the board, the procedure shall be as follows:

(A) The attorney general concisely may state his case, and briefly may state his evidence to sustain it.

(B) The license holder, or his attorney, may then briefly state his case, and briefly may state his evidence in support of it.

(C) The attorney general first must produce his evidence, and the license holder or his attorney must then produce his evidence.

(D) The attorney general may offer evidence in rebuttal.

(E) The board may in its discretion hear arguments.

(F) The board may in its discretion request or permit the filing of briefs.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80

4501:1-4-11 Evidence.

(A) In all hearings before the board, the introduction of evidence shall be governed in general by the rules of evidence.

(B) The board may call the license holder to testify under oath as upon cross-examination. The license holder may call the acting secretary of the board to testify under oath as upon cross-examination.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80

4501:1-4-12 Briefs.

Briefs shall be clearly typewritten or photocopied. The party filing the brief shall furnish the opposite party or his attorney with one copy and file with the secretary or acting secretary of the board four copies of such.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80, 1/1/99

4501:1-4-13 Decision of the board.

(A) After submission of the case to the board, the board may retire and deliberate immediately or take the case under advisement.

(B) The decision of the board shall be written and a copy of such decision shall be mailed to the license holder by certified mail, return receipt requested, and a copy mailed to the attorney for the license holder, if any. A copy shall be forwarded to the attorney general.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80

4501:1-4-14 Rehearings.

(A) Should the license holder desire a rehearing before the board, such license holder shall file his application for rehearing in writing with the secretary or acting secretary of the board, within fifteen days after receipt of the decision of the board and shall accompany the application with a verified statement setting out the grounds on which such rehearing is sought.

(B) Grounds for rehearing shall be for the following causes only:

(1) For mistake, neglect or omission on the part of the board, or irregularity in obtaining a favorable decision or order on the part of the successful party.

(2) For fraud practiced by the successful party in obtaining a favorable order or decision.

(3) For unavoidable casualty or misfortune, preventing the license holder from prosecuting his case before the board.

(4) When a decision or order was obtained, in whole or a material part by false testimony on the part of the successful party, or any witness in his behalf, which ordinary prudence could not have anticipated or guarded against.

(5) Newly discovered evidence, material for the license holder applying for rehearing, which with reasonable diligence could not have been discovered and produced at the hearing and which is not merely corroborative of evidence produced or offered at the hearing, and the license holder in his application for rehearing shall state the nature of such evidence.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80

4501:1-4-15 Appeals from registrar's order.

(A) When the registrar refuses to issue, renew, or transfer any license, he shall by certified mail, return receipt requested, send to the applicant so refused, notice of such order at the address stated in the application and certify his findings and final order to the board. The notice to the applicant shall set forth the reasons for the registrar's action, refer to the statute or rule directly involved, and state that the applicant has a period of thirty days from the time of mailing of the notice, to file his appeal with the board.

(B) Such appeal must be by petition in writing and verified under oath by the applicant.The petition in appeal must set forth the reasons for such appeal and the reason why the order of the registrar is in error. The original and at least one copy shall be filed with the secretary or acting secretary of the board.

(C) After receipt of such petition in appeal, the secretary or acting secretary of the board shall by certified mail, return receipt requested, at least fifteen days prior to the date of such hearing, send a notice of hearing to the appellant. Such notice shall contain the date, time and place of hearing of the appeal.

(D) All the rules of practice and procedure as prescribed in Chapter 119. of the Revised Code pertaining to date, time and place of hearing continuances, stenographic record, hearing procedure, evidence, briefs and decision of the board shall apply to hearing on appeal from the registrar's order in the same manner as other hearings before the board.

Replaces: 4501:1-4-15

Effective: 12/19/2010
R.C. 119.032 review dates: 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.05 , R.C. 4738.11
Rule Amplifies: R.C. 4738.05 , R.C. 4738.11 , R.C. 4738.12
Prior Effective Dates: 12/1/80

4501:1-4-16 Docket.

The secretary or acting secretary of the board shall keep a docket and enter into such docket all cases before the board. Said docket shall be open to public inspection.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80

4501:1-4-17 Notice of public hearing regarding adoption, amendment, or rescission of a rule.

(A) A public notice issued by the motor vehicle salvage dealer's licensing board of a hearing to consider adopting, amending or rescinding a rule which the board is authorized by law to do, shall be published at least once in the register of Ohio, at least thirty days prior to the date set for a public hearing.

(B) The motor vehicle salvage dealer's licensing board shall be authorized to give additional notice of such public hearing as it deems necessary; however, the giving of such additional notice shall not be mandatory, and failure to give notice by any means other than as specified in paragraph (A) of this rule shall not in any way invalidate any action which may be taken by the motor vehicle salvage dealer's licensing board.

(C) The public notice shall specify the date, time and place of any hearing relative to the proposed rule change and shall include:

(1) A statement of the board's intention to consider adopting, amending or rescinding a rule and the purpose or reason therefore;

(2) A summary of the proposed rule, amendment or rescission or a general statement as to the subject to which it relates.

(D) Pursuant to section 119.03 of the Revised Code, a copy of the public notice shall be provided by the board to any person who requests a copy and pays the cost of copying and mailing.

Replaces: 4501:1-4-17

R.C. 119.032 review dates: 10/05/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11
Rule Amplifies: R.C. 4738.11
Prior Effective Dates: 12/1/80, 9/26/08

4501:1-4-18 Notice of meetings.

(A) Any person may obtain information regarding the time and location of all regularly scheduled meetings and information regarding the time, location, and purpose of any special meetings of the board, its subcommittees, and special committees.

Requests for notice of meetings may be submitted to the secretary of the motor vehicle dealers board in written form or may be made in person during regular business hours.

(B) Written requests for notice of meetings may be general in nature or may be specific to meetings where a particular type of business will be considered. Such requests shall include the name of the person submitting the request, and whether notice is sought for all or specified types of meetings. Notice requests submitted pursuant to this paragraph shall include either:

(1) Fifteen self-addressed envelopes with appropriate postage affixed;

(2) A reasonable postage fee as determined annually by the board.

(C) The board shall provide twenty-four hour advance notice of special meetings of the board, subcommittees, and special committees to representatives of news organizations who have submitted written requests for such notice to the secretary of the motor vehicle dealers board. In the event that an emergency meeting is scheduled and twenty-four hour notice is not possible, the board shall notify those representatives of news organizations who have requested notice in accordance with this paragraph, as soon as is reasonably possible after such meeting is scheduled. The notice requested by representatives of new organizations pursuant to this paragraph may be general or specific in nature.

Replaces: 4501:1-4-18; 4501:1-4-19 in part; 4501:1-4-20 in part

Effective: 12/19/2010
R.C. 119.032 review dates: 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11 , 4738.12
Rule Amplifies: R.C. 4738.12
Prior Effective Dates: 12/1/80, 1/1/99

4501:1-4-19 [Rescinded]Special meetings - notices to news media.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11 , 4738.12
Rule Amplifies: R.C. 4738.09 , 4738.12
Prior Effective Dates: 12/1/80, 1/1/99

4501:1-4-20 [Rescinded]Meeting notification on yearly basis.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.07
Rule Amplifies: R.C. 4738.07
Prior Effective Dates: 12/1/80

4501:1-4-21 Minutes of meetings.

The unapproved minutes of a regularly scheduled or special meeting shall be recorded and open to public inspection within ten days after their recordation. Within ten days after their approval by the board, the approved minutes of a regularly scheduled or special meeting shall be substituted for the unapproved minutes, and the former shall be open for public inspection during regular working hours.

All records of meetings will be open to the public for inspection during regular business hours which are eight a.m. to four-thirty p.m. at the "Bureau of Motor Vehicles, 1970 West Broad Street, Columbus, Ohio 43223."

R.C. 119.032 review dates: 10/05/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.11 , 4738.12
Rule Amplifies: R.C. 4738.09 , 4738.11 , 4738.12
Prior Effective Dates: 12/1/80, 1/1/99

4501:1-4-22 Nature of and length of time records will be maintained.

Persons licensed under Chapter 4738. of the Revised Code shall maintain a record of the following:

(A) All salvage motor vehicles purchased. This record shall include, but not be limited to:

(1) Name of the previous owner.

(2) Serial number (vehicle identification number).

(3) Title number.

(4) Year and make of said vehicle.

(5) Date and county where title was surrendered.

(B) All salvage motor vehicles and salvage motor vehicle parts sold. Sales invoice shall describe:

(1) Item(s) sold.

(2) Name and address of purchaser, except on retail parts only sales.

(3) Sales price.

(C) In addition, each retail sale of a salvage motor vehicle shall:

(1) Be preceded by a written instrument or contract that shall contain all the agreements of the parties and shall be signed by the buyer.

(2) The dealer shall, upon execution of the agreement or contract and before the delivery of the motor vehicle, deliver to the buyer a copy of the agreement or contract that shall clearly describe the motor vehicle sold to the buyer and give the following information:

(a) The amount paid down by the buyer;

(b) The amount credited to the buyer for any trade-in and a description thereof;

(c) The amount of any other charge and a specification of its purpose;

(d) The net balance due from the buyer;

(e) The terms of the payment of the net balance.

(D) Records must be maintained for a period of three years by those holding a license granted under Chapter 4738. of the Revised Code.

(E) Notwithstanding paragraph (A)(5) of this rule, all persons licensed under Chapter 4738. of the Revised Code, shall retain on their premises, the title to all vehicles offered for sale in the conduct of their business.

Effective: 12/19/2010
R.C. 119.032 review dates: 10/04/2010 and 10/05/2015
Promulgated Under: 119.03
Statutory Authority: R.C. 4738.13
Rule Amplifies: R.C. 4738.13
Prior Effective Dates: 12/1/80