Delaware § 6314A - Effect of suspension, revocation, or renewal refusal on licensee.

§ 6314A. Effect of suspension, revocation, or renewal refusal on licensee.

(a) Dealers who have their dealer license suspended, revoked, or renewal refused pursuant to this title are prohibited from being employed at any dealership licensed pursuant to this title in any of the following positions:

(1) Manager.

(2) Sales person in any capacity.

(3) Authorized signer.

(4) Any other position in which the individual would interact with customers, handle financial transactions, or complete any paperwork required to be submitted to the Division.

(b) Dealers who have their dealer license suspended, revoked, or renewal refused pursuant to this title are prohibited from being employed in any of the capacities listed in this section for the following time periods:

(1) If a license is revoked, for 5 years from the effective date of the revocation.

(2) If a license is suspended, for the length of the suspension from the effective date of the suspension.

(3) If renewal is refused, for 12 months from the date that the dealer received the certified letter sent pursuant to § 6314(a) of this title or any time period set forth in a decision issued by the Division on appeal. If the certified letter is unable to be delivered, the 12-month period will start 30 days after the Division mails the certified letter required by § 6314(a) of this title.

(4) If the dealer receives a notice pursuant to § 6314 of this title that its license will be suspended, or renewal refused, and the dealer chooses not to request a hearing pursuant to § 6314(a) of this title, for 12 months from the date that the dealer received the certified letter sent pursuant to § 6314(a) of this title. If the certified letter is unable to be delivered, the 12-month period will start 30 days after the Division mails the certified letter required by § 6314(a)(4) of this title.

(5) If the dealer receives a notice pursuant to § 6314 of this title that its license will be revoked and the dealer chooses not to request a hearing pursuant to § 6314(a) of this title, for 5 years from the date that the dealer received the certified letter sent pursuant to § 6314(a) of this title. If the certified letter is unable to be delivered, the 5-year period will start 30 days after the Division mails the certified letter required by § 6314(a)(4) of this title.

(c) The Division shall notify any dealer subject to the restrictions set forth in this section by certified mail, return receipt requested, addressed to the last known address as shown on the license or dealership application or other record of information in possession of the Division, to turn in all documentation required by § 6316 of this title. If the dealer does not return the documentation required by § 6316 of this title within 10 days from the date that the dealer receives the certified letter, the time periods set forth above will be extended out by 1 day for every day past day 10 the § 6316 of this title documentation is outstanding. If the certified letter is unable to be delivered, the counting for the purposes of the extension period will start 30 days after the Division mails the certified letter. The Division shall notify the dealer in writing on a monthly basis of any extensions for failure to turn in documentation required by § 6316 of this title. If the documentation required by § 6316 of this title is not turned in within 6 months from the date required in this section, the time periods set forth above will be extended indefinitely. A dealer may turn in documentation at any time after the 6-month period and the prohibited employment time period will end 12 months after the date the documentation is turned in, or when the extended time period was set to end, whichever is longer.

(d) The prohibitions set forth in this section apply to any individual licensee, or if the licensee is a partnership, each individual partner listed on the application submitted pursuant to § 6302 of this title, or if the licensee is a corporation, the individual or individuals who signed the application submitted pursuant to § 6302 of this title on behalf of the corporation.

(e) Should the Division learn that a dealer has been employed in violation of the section, the period of time set forth in this section shall be extended by 6 months for every month the dealer is employed in violation of this section. The Division shall notify the dealer of any violation in writing by certified mail, return receipt requested, addressed to the last known address as shown on the license or dealership application or other record of information in possession of the Division. The written notice shall inform the dealer of the following:

(1) This Division’s intention to extend the suspension, revocation, or other time period set forth in this section.

(2) The nature of the violations by the dealer.

(3) The notice shall inform the dealer of its right to request a hearing to dispute the violation. The hearing must be requested within 10 days from earlier of the dates that the dealer received the certified letter or the Division received the return receipt on the certified letter.

(4) The notice shall inform the dealer of its right to present evidence, to be represented by counsel and to appear personally or by other representative at the hearing.

(f) Any hearings requested by a dealer under this section shall follow the procedures set forth in §§ 6314(b) and 6315 of this title.

83 Del. Laws, c. 163, § 1;