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-30-20-1.11 - Administrative Policies - Auction Dealers

1. Every Auction dealer must fill out an application for an auction dealer's license on form(s) prescribed by the Department. Every applicant must furnish three to four ( 3-4) photographs showing front view, right and left side views, and the rear view of the premises, a plan or blueprint of the establishment or location where he intends to do business along with the application, except in case of renewal.

1. The Department must be notified within ten (10) days, in writing, on whatever forms the Department may require if there is a change in members in a partnership or officers of a corporation or association licensed by the Department. The license is not subject to transfer at any future date without application to, and approval from the Department. The Department may revoke the license of a corporation or partnership when the officers or partners are changed and the new officers are unfit to do business as a dealer under R.I. Gen. Laws § 31-5-11.

1. When a licensee retires from or closes his business, he must return his auction dealer's license to the Department on the date of such retirement or closing.

1. Auction dealers are required to maintain a book or other system in which shall be recorded a complete description of all vehicles sold through the auction, including the name and address of the previous owner and new owner, date of transaction, make of vehicle, year, type, model, motor (VIN) number, and mileage. This book or other system shall be open for inspection by employees of this Department, division of motor vehicles inspectors, police, employees of the Department of Attorney General, or any other proper officers at all times during hours of business.

1. Every auction dealer must give a bill of sale with each vehicle sold, and must maintain a copy of these bills of sale as part of the records required above in § 1.11(D)(1) of this Part. The bill of sale must be numbered and contain the auction dealer license number, odometer reading, and the buyer and sellers name and address.

1. Such vehicles shall be so identified in writing on the bill of sale when sold dealer-to dealer up to and including the first retail buyer.

1. Allocation of dealer plates shall be at the discretion of the Department.

1. Prior to the hiring of any employee or agent for the purpose of working at or for the motor vehicle auction, it shall be the responsibility of the licensee to report to the Department a listing of all proposed personnel along with an authorized Bureau of Criminal Identification form signed by each proposed employee for approval by the Department. Such information shall be reported with every application filed by the licensee and at each time during the course of the year when another employee is hired. Auction dealers must provide the names of employees to the Department immediately upon starting employment, even if the employee has been hired on a probationary/trial basis. If a licensee is a firm or corporation, it shall be sufficient cause for the denial, suspension or revocation of a license that any officers, director or trustee of the firm or corporation, or any member in case of a partnership, has been guilty of any act or omission which would be cause for refusing, suspending or revoking a license to such party as an individual. Each licensee shall be responsible for the acts of any agent for such license.

1. Whenever a licensee wishes to change the name of their licensed auction dealership, they may apply to do so on whatever form(s) the Department requires, providing the owner, partner, or corporate officers on record, remain on record under the new dealership name. A new license certificate shall be issued upon approval of such change in auction dealership name, pursuant to R.I. Gen. Laws § 31-5-8, as amended. It shall be clearly understood that whether or not the new dealership name is that of a corporation, the licensee shall remain responsible for any prior happenings under that auction dealer's license number.