Code of Maine Rules
29 - DEPARTMENT OF THE SECRETARY OF STATE
250 - BUREAU OF MOTOR VEHICLES
Bureau of Motor Vehicles
Chapter 103 - RULES FOR VEHICLE DEALERS, AUCTIONS, TRANSPORTERS, RECYCLERS, MOBILE CRUSHERS, AND LOANERS
Section 250-103-I - REQUIREMENTS FOR NEW CAR DEALERS AND USED CAR DEALERS

Universal Citation: 29 ME Code Rules ยง 250-103-I

Current through 2024-38, September 18, 2024

A. Established place of business or annex. The established place of business and any annex locations of a new car dealer or used car dealer shall:

1. Be located in a permanent, enclosed building(s) which:
a. Is in good repair;

b. Is free of obstruction;

c. Has a source of heat:

d. Is owned or leased by the dealer;

e. Is used exclusively by the dealer for the purpose of displaying, repairing, buying, and selling vehicles and other vehicle related items.

2. Have a display area that meets the following requirements:
a. The display area shall be located at the established place of business and annex location;

b. The display area shall contain not less than 5,000 square feet used exclusively for the display of vehicles offered for sale;

c. Any outside surface of the display area shall be paved, graded gravel, crushed rock, or a mowed grassy surface and shall be kept plowed in winter to allow an all weather and all season display of vehicles offered for sale;

d. Ground space occupied by gas pumps or junk vehicles, and the normal drive approach to the repair area and customer parking shall not be included when determining the 5,000 square feet of display area;

e. The display area shall be free of debris, hazards and unrelated materials;

f. The location, degree of slope and grade of the display area shall be such that the display of vehicles does not constitute a hazard; and

g. Additional or separate lots are allowed, but their location must be reported to the Secretary of State and cannot be used in part or whole to obtain the required 5,000 square feet. See regulations on secondary locations.

3. Have an office which:
a. Is located at the established place of business or annex location;

b. Is not less than 64 square feet in size, is used exclusively for dealership and related business, and is free of unrelated materials and debris;

c. Is heated during business hours;

d. Is entered through a door which is properly labelled and readily accessible to the public;

e. Contains at least one desk, 2 chairs, and a metal or wooden filing cabinet manufactured for that purpose. The filing cabinet is not required if the desk is equipped with drawers suitable in size and design for storing and filing business records. Books and records may be kept at the primary location when applying for an annex;

f. Is completely enclosed by floor to ceiling construction. (Tar paper, sheathing paper, or cardboard are not allowed as construction material.); and

g. Is separate from any living quarters.

4. Have reasonable business hours which:
a. Are a minimum of 30 hours per week consisting of at least five 6 hour days;

b. Shall be posted and clearly visible on the exterior or through a window of the building identified as the established place of business or annex; and

c. Shall be between 6:00 a.m. and 9:00 p.m.

d. A dealer may be exempted from maintaining regular business hours for up to two weeks with written notification to Dealer Licensing.
1. A sign shall be conspicuously posted that informs consumers of the date the dealer will return to posted business hours.

5. Have a repair facility:
a. Which is located within the building or buildings identified as the established place of business or annex, and is used exclusively by the dealership;

b. Which contains not less than 400 square feet of workable floor space which is free of benches and permanently mounted equipment;

c. Which is heated and reasonably free of debris, hazards and unrelated materials; and

d. Which has a hard surface, non-dirt floor.

e. Notwithstanding section 1(A)(1)(e), a dealer may lease their repair facility to a licensed inspection mechanic. The dealer shall file a copy of the lease with the Bureau. The dealer must display a sign of at least 2 ft. by 3 ft. stating that any repair work done on site for the dealership will be performed by the technician leasing space. The sign shall include the technician's address and telephone number.

6. Be equipped during posted business hours with the following tools and equipment:
a. One vehicle jack or car lift in working order;

b. An air compressor in working order; and

c. At least one set of general mechanic's tools sufficient to make warranty repairs and any specialty tools necessary to perform repairs.

7. Display the license and supplement license(s) issued in a public space visible to the general public.

8. Have a sign which meets the following requirements (unless a municipality has established ordinances regulating signs contrary to these rules, whereupon the Secretary of State, upon notification by the dealer of such ordinances, may grant an exception to these rules to the dealer affected):
a. The sign shall be permanently mounted, displayed at the established place of business or annex, and shall not be less than 12 square feet in surface size;

b. The sign shall be visible from the entrance to the lot and the letters of the sign shall be readable from a distance of 200 feet; and

c. The sign shall contain the trade or business name of the dealer and related business only.

9. Contain records as follows:
a. Records shall be maintained at the office of the established place of business and shall be available during posted business hours for inspection by agents of the Secretary of State or of the Office of the Attorney General or duly authorized members of law enforcement agencies during those business hours. If a dealer has no business hours between 8:00 a.m. and 5:00 p.m., the dealer shall make the records available for inspection during these hours upon reasonable demand and advance notice of the Secretary of State, the Office of the Attorney General or law enforcement agencies;

b. The Dealer shall fully complete and maintain a record of the purchase or sale of a vehicle so as to comply with 29-A M.R.S. §956(1)(A).The record of the purchase or sale of the vehicle shall contain a description of the vehicle, including make, model, model year, body type, vehicle identification number, color, and whether the vehicle is new or used. The dealer shall also maintain a record of the seller's information, purchaser's information, legal owner, odometer information, and date of sale;

c. Records shall be kept for a minimum of five years in accordance with the federal Truth in Mileage Act of 1986 and rules promulgated thereunder.

B. Application. In addition to filling out the basic application, an applicant for dealer registration and plates shall:

1. Answer, on a form prescribed by the Secretary of State, basic questions relative to the ownership and facilities of the established place of business or annex and shall swear before a notary as to the truthfulness of the answers;

2. Submit to an investigation as follows:
a. Upon receipt of an application for dealer registration, the Secretary of State shall conduct an investigation into the ownership and facilities established place of business or annex location of new car dealers and used car dealers; and

b. Prior to approval of an application for dealer registration and plates, an inspection report shall be submitted to the Secretary of State affirming that the dealership conforms to all applicable laws, rules and regulations. Periodic inspections of the premises and facilities will be conducted thereafter to ensure continued compliance with applicable laws, rules and regulations.

c. Applicants shall submit to State Bureau of Identification background check upon initial and renewal application. The Bureau of Motor Vehicles will request and receive the background check from the State Bureau of Identification. A fee for the background check will be assessed at time of initial and renewal application pursuant to Title 25 MRSA Sec. 1541(1).

d. State criminal history record information shall be used for the purpose of screening dealer applicants in order to determine whether issuance of a dealer license is granted or maintained.

3. Dealers shall provide current contact information to include primary or secondary telephone and mailing address, and an e-mail address if available as frequent statutory updates are disseminated via e-mail;

4. Dealers shall make notification of changes to any of the contact information within 30 days, in writing or other means approved by the Secretary of State, of the old and new contact information.

5. Pay the appropriate filing fees at the time of application;

6. File proof of automobile liability insurance as prescribed in 29-A M.R.S. §1612, and surety bond as required by 29-A M.R.S. §901(4).
a. The surety bond shall be for the use and benefit of the Secretary of State, and for any person who may suffer a financial loss because the licensee failed to comply with the requirements of 29-A M.R.S. chapter 7 or chapter 9 related to the buying and selling of vehicles, or any provisions of this rule or of Chapter 104, Rules of the Department of Secretary of State.

The surety bond shall be for at least the minimum amount prescribed in §901(4) and shall be applied against the total amount of claims during the license period.

The surety bond shall become payable upon order of a court of competent jurisdiction; or an administrative ruling by the Bureau of Consumer Credit Protection or the Secretary of State.

The form of the surety bond is prescribed in Appendix B.

7. Notify the Secretary of State of the sales tax number issued by the Maine Revenue Services by submitting a reseller's certificate at initial application and upon each renewal;

8. Furnish copies of properly recorded partnership papers, authority to operate under an assumed name, if applicable, proof of incorporation in the State of Maine, or proof of authority for a foreign corporation to conduct business in the State of Maine;

9. Furnish copies of a lease, if the facilities are leased;

10. Furnish copies of compliance with applicable building codes, zoning codes and other land use regulatory ordinances in the Maine municipality where the established place of business or annex is operated;

11. Furnish a copy of a plot plan for the premises;

12. File a new application and fees whenever the ownership structure changes; and

13. New applicants must attend and complete the Dealer/Title Workshop conducted by the Bureau of Motor Vehicles prior to licensure.

C. Arbitration/mediation Fees. No dealer may receive renewal of the dealer's license and dealer plates until the dealer has submitted arbitration or mediation fees imposed by 10 M.R.S. §1169(11) as follows:

1. Arbitration/mediation fees must be collected from the date of issuance of the current license through to the first day of the expiration month of the current license for any motor vehicle retail sale except commercial vehicles with a gross vehicle weight of 8,500 pounds or more;

2. Arbitration/mediation fees must be submitted in one annual payment at the time of renewal to the Secretary of State, Bureau of Motor Vehicles, Dealer Licensing;

3. Dealerships which change ownership must transfer arbitration/mediation fees collected to their successors for submission by the new owners as part of the new owner's annual payment; or alternatively the prior owner must pay all arbitration/mediation fees due prior to the transfer. If there are no successors, the dealer must submit fees collected through the final day of business to the Secretary of State within 10 days of the final day of business.

D. Temporary Plates May Be Issued to a Dealer

1. To be placed on a vehicle purchased by a customer for a period of 14 days. If the customer is a non-resident member of the Armed Services a temporary plate may be issued for a period of 20 days;

2. The 14 or 20 day temporary plate expiration date calculation begins on the date of sale;

3. No temporary plate shall be renewed or extended except by authority of the Secretary of State, Bureau of Motor Vehicles, Dealer Licensing Section;

4. The dealer license type and number shall be identified on the lower right hand corner of each temporary plate issued;

5. The temporary plate must be attached to the rear plate bracket.

E. Dealer Plate Use/Requirements

Dealer business plates are assigned to a vehicle dealer for the conduct of the dealer's business including vehicles assigned to the owner or staff in accordance with 29-A M.R.S. §1002. Dealer family plates are assigned to a dealer's immediate family for personal use only.

1. To obtain or retain business plate(s) a dealer must:
a. Maintain a log that indicates the staff or area (e.g. shop) that has been assigned plates giving the employees' names and the plate number(s) and suffix(es) for the plates. The log will be in a manner prescribed by the Secretary of State.

b. Sell 25 vehicles (excluding sales to dealerships under the same ownership), for each additional business plate in excess of the plates permitted under 29-A M.R.S. §903(3). (See Appendix A.)

c. Newly licensed dealers may obtain plates, under the same formula, except that the number of plates to which a dealer is entitled will be based on estimates for the first year.

2. To obtain or retain a dealer family plate a dealer must:
a. Have been in business for at least one year.

b. Have at least 20% ownership in the business; or the minimum ownership required by the franchise agreement, whichever is less. No more than five family plates may be issued per dealer license.

c. No more than five family plates may be issued per dealer license.

d. Submit an application providing the name(s), date(s) of birth and relationship(s) to the owner of the primary driver(s).A primary driver may only be a spouse or child under the age of nineteen living with the dealer.

e. Have no more than one family plate per owner regardless of the number of dealerships owned or licenses held.

f. Use the plate on a vehicle that is in the dealer's active inventory and that is available for resale.

F. 10,000 lb. Laden Permit Issued to Dealers

The 10,000 lb. laden permit allows a dealer to carry a load on a vehicle or combination of vehicles while using their dealer plates, if the load is in conjunction with the sale or purchase of a motor vehicle, trailer or equipment by the dealership. This permit shall only be used to haul items for which the dealership is licensed to sell. The hauling unit must have a new car dealer plate or used car dealer plate attached to it.

1. The permit can not be photocopied.

2. The original permit must be carried in the hauling unit during transport.

3. The operation of the vehicle or combination of vehicles and load must be in conjunction with the sale or purchase of a motor vehicle, vehicle or equipment. The bill of sale, invoice or other proof of purchase must be carried in the hauling unit with the permit.

4. The load may consist of one automobile, truck or truck-tractor or; it may consist of multiple trailers or equipment that the dealer is licensed to sell.

5. The annual fee is $200.00 per permit. A dealer may purchase more than 1 permit.

6. The permit expires 90 days from the date of issuance and may be renewed.

7. If traveling out of state:
a. If the hauling unit and load weighs 10,000 pounds or more and if traveling out of state the dealer must have a USDOT number.

b. The dealer should obtain a USDOT number by contacting Motor Carrier Services, Fuel Decal Section at 624-9000 Extension 52137 or online at:

http://www.fmcsa.dot.gov/

There is no fee for the DOT number.

c. Check with the states that will be traveled through to be certain that those states do not require the truck to be registered in the International Registration Plan (IRP).

d. If the hauling unit and load weighs over 26,001 pounds the truck may need a fuel decal. Contact Motor Carrier Services, Fuel Decal Section to obtain the information regarding the International Fuel Tax Agreement (IFTA).

This permit does not exempt the permitee from any other requirements, i.e. CDL License, commercial inspection, fuel decals, Uniform Carrier Registry, DOT number, etc.

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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