WILLIAM DONALD SCHAEFER, Governor                     H.B. 1280

certificate on the buyer instead of the seller when a vehicle is sold at public auction. In
effect, House Bill 1280 statutorily condones the sale of unsafe vehicles by unlicensed
individuals.

Approximately 250,000 vehicles are sold privately or by auction each year. This number
represents one third of all vehicles sold annually in Maryland. House Bill 1280 would
affect a huge segment of the motor vehicle market, both in terms of consumer protection
and in terms of market inequities.

Current law requires the seller of any vehicle to have the vehicle safety inspected prior to
its sale. This law applies to sales by private individuals as well as by licensed dealers,
auctioneers, and other outlets. Although it is difficult to regulate sales not perfected by
licensed dealers, the law is set up to provide uniform protection for the consumer. House
Bill 1280 would relax the standards of consumer protection for vehicles sold privately
thereby providing less protection than already exists in the unregulated private market.

Furthermore, granting public auctions the authority to sell uninspected vehicles distorts
the relationship between regulated dealer sales and unregulated auction sales. Having a
statutory monopoly on a less restricted product (i.e., an uninspected vehicle which
licensed dealers may not sell) favors the auction industry at the expense of the consumer.

For these reasons, I have vetoed House Bill 1280.

Sincerely,

William Donald Schaefer

Governor

House Bill No. 1280

AN ACT concerning

Vehicle Laws - Offering for Sale of Used Vehicles - Inspections

FOR the purpose of exempting the transfer of certain used vehicles from certain
inspection requirements; requiring the transferee of a certain type types of vehicles
to obtain a required inspection certificate; altering certain inspection requirements
imposed on certain persons who offer for sale used vehicles; permitting certain
persons to obtain a certain proof of inspection certificate before offering for sale a
used vehicle; requiring a person to provide certain proof of ownership of a used
vehicle under certain circumstances; imposing a certain penalty for certain
violations of this Act; requiring the Automotive Safety Enforcement Division of the
Maryland State Police to prepare and distribute proof of inspection certificate
forms; prohibiting an inspection station from issuing a proof of inspection certificate
for a vehicle under certain circumstances; defining a certain term; making stylistic
changes; and generally relating to inspections in the offering for sale of used
vehicles.

BY repealing and reenacting, with amendments,
Article - Transportation
Section 23-106, 23-108, and 23-109(a)

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