Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 30 - Division of Motor Vehicles
Subchapter 20 - Dealer Licensing and Registration
Part 1 - Dealers, Manufacturers, and Rental Licenses
Section 280-RICR-30-20-1.10 - Requirements for Auction Dealers

1. Every auction must establish a suitable place in which to conduct the business of dealing in motor vehicles. The business must be housed in a building, on the premises, which contains at least 7,000 square feet of enclosed and heated floor space to provide a suitable office and space where motor vehicles may properly enter and exit. Minimum floor space in all instances shall be interpreted as a ground level space and in no instance shall basements or second floors or any upper or lower areas be considered in computing the required minimum amount of space. A minimum requirement for lot display must be five (5) acres (218,000 square feet). Such auction dealer's license must be stamped "auction dealer only".

1. Every auction dealer must provide the Department at the time of application, for a dealer's license, with proof of ownership (copy of deed) of the place of business, or with a copy of a formal lease for the place of business that is at least one (1) year in duration.

1. When a change in location is contemplated, notification shall be made to the Department on whatever forms the Department requires and must be approved by this Department prior to the relocation. If the new location has not been previously approved by the Department, the same procedure shall be followed as if it were a new application.

1. Every applicant for an auction's license who desires to operate in any city or town which has a zoning law or zoning regulations must submit proof, in writing, that the property on which he intends to conduct his motor vehicles auction is properly zoned for the business of dealing in motor vehicles. If a city or town requires a license to deal in motor vehicles, this office must receive a copy of that license in lieu of the zoning approval notice.

1. Every auction dealer must conspicuously display the dealer's license at the location for which it was issued.

1. Every auction dealer must display a sign or window lettering on the front of the premises where the building is located showing the actual name under which the business is licensed. The words and lettering of the sign must be of a size sufficiently large enough to be readily discerned. The total size of the sign must be a minimum of twenty-four (24) square feet, or the maximum size under local zoning ordinances if such ordinances restrict signs to less than twenty-four (24) square feet.

1. Prior to the issuance of an auction dealer's license, all applicants must have a telephone installed at the licensed address.

1. Any holder of an auction license who desires to engage in the business of retailing motor vehicles (to the general public) must, in addition to meeting the auction requirements, establish a facility separate and apart from the auction location and must meet all minimum requirements in accordance with § 1.6(B)(1) of this Part.

1. No application for an auction dealer's license will be considered unless the notarized financial statement shows a minimum of fifty thousand dollars ($50,000) in assets over and above all liabilities, and must be submitted annually. The Department has the authority to request for inspection any and all documents pertaining to the business. A bond in the amount of fifty thousand dollars ($50,000) for all motor vehicle auction dealers, payable to the Department, issued by a surety company authorized to do business in Rhode Island, must be filed, for the purpose of indemnifying a good faith purchaser who suffers any loss occasioned by a violation of the General Laws or the Rules and Regulations of the Department. Said bond shall be renewed annually. This bond requirement will become effective March 31, 2009 for all existing auction dealers and applicants for auction dealers' licenses.

1. The business of dealing in motor vehicles must be a full-time operation and such establishment must be kept open for business during normal business hours unless a sudden emergency makes it necessary to close, at which time the Department must be notified within two (2) business days.