TITLE 31

Motor and Other vehicles

CHAPTER 31-3

Registration of Vehicles

SECTION 31-3-20.1



   § 31-3-20.1  Operation with auto body

repair shop plates. –

(a)(1) An auto body repair shop, officially licensed by the department of

business regulations, may loan a motor vehicle to a client/customer whose

registered motor vehicle is undergoing auto body repair on the premises of the

respective auto body repair shop, and may affix to the loaned motor vehicle

number plates registered to the motor vehicle undergoing auto body repair when

the number plates are of the same classification. The licensed auto body repair

shop may issue a temporary certificate of registration to the loaned motor

vehicle under which the loaned vehicle may be operated upon the public highways

for a period of twenty (20) days from the date of issuance. The certificate

shall be issued on a form obtained from the division of motor vehicles and

shall be titled "agreement – temporary loan of motor vehicle".



   (2) The certificate shall be issued under any conditions that

the division of motor vehicles may impose. The certificate shall be carried in

the loaned vehicle for which it is issued and the operator or person in control

of the loaned vehicle shall display the certificate for examination upon demand

of any proper officer. The client/customer shall furnish proof to the auto body

repair shop that he or she has liability and property damage insurance which

will cover any damage to any person or property caused by the operation of the

loaned vehicle for which the client/customer would have been liable if he or

she had been the owner.



   (3) This proof of insurance shall be set forth on the

certificate issued by the division of motor vehicles and shall be subject to

any conditions that the division of motor vehicles may impose. In the event the

client/customer to whom the vehicle is loaned shall not have proper insurance

in effect, then any liability or property damage shall be covered by the auto

body repair shop's insurance policy. Section 31-47-12(d) shall apply to loaned

motor vehicles, and the acceptable evidence of financial responsibility as

filed in the rules and regulations relative to compulsory insurance or

financial responsibility shall apply.



   (b) An auto body repair shop may not extend the use of

"agreement – temporary loan of motor vehicle" certificates to anyone who

is not a client/customer whose registered motor vehicle is undergoing auto body

repair on the premises of the respective auto body repair shop. This

legislation does not apply to any motor vehicle owned by a dealer,

manufacturer, or operator of an auto body repair shop which is rented or leased

for compensation to any person for any purpose.



   (c) Every auto body repair shop shall keep a record of each

loaned vehicle showing the date loaned, date returned, name, address, and

operator's license number of the client/customer, the number plate transferred

to the loaned vehicle, and the number of the certificate issued. This record

shall be available during business hours for examination by any police officer

or inspector designated by the administrator of the division of motor vehicles.

This legislation does not apply to any motor vehicle owned by a dealer,

manufacturer, or operator of an auto body repair shop which is rented or leased

for compensation to any person for any purpose.



   (d) Penalties. Any owner and/or employee of any auto

body repair shop or customer who violates the provisions of this section shall

be guilty of a violation and subject to a fine of two hundred dollars ($200)

and have the authority to issue "agreement – temporary loan of motor

vehicle" certificates revoked.



History of Section.

(P.L. 1997, ch. 373, § 1.)