Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not provide motor club service or engage in the business of a motor club in the State unless the person meets the requirements of this title and has a license issued by the Commissioner.

To qualify for a license to engage in the business of a motor club, a motor club with capital stock must have and maintain: paid-in capital stock with a fixed nominal or par value in an amount not less than $5,000; and surplus in an amount not less than $10,000. A motor club formed under the laws of the State without paid-in capital stock shall have and maintain unencumbered assets, in addition to required reserves and other liabilities, in an amount equal to that required under subsection (a) of this section.

An applicant for an initial license shall: file with the Commissioner an application on the form that the Commissioner provides; and pay to the Commissioner an application fee of $200. An applicant for a license shall submit to the Commissioner the information that the Commissioner considers reasonably necessary to determine, in accordance with this title, whether to issue a license to the applicant. The application shall be executed under oath by the applicant or, if the applicant is not an individual, by an authorized officer of the applicant. The application shall include: if the applicant is a corporation: a certificate of good standing from the Department of Assessments and Taxation; the names and addresses of the officers and directors of the corporation; and the names and addresses of each owner of more than 10% of the capital stock of the corporation issued and outstanding; if the applicant is not a corporation: a list of all the owners of interests in the applicant; a list of the officers of the applicant; and a list of the parties to any operating or management agreement that affects the applicant, together with a copy of the agreement; a financial statement certified by a certified public accountant within the previous 6 months, that presents fairly, in accordance with generally accepted accounting principles, the financial position of the applicant and contains the information that the Commissioner requires; a copy of the applicant’s service contract and the fees to be charged to members, as described in § 26–402 of this title; and evidence of security in accordance with § 26–204 of this subtitle.

An applicant for a license shall deposit with the Treasurer, who shall maintain in trust: registered United States government bonds with a market value at all times not less than $100,000 or, in the discretion of the Commissioner, a lower amount not less than $15,000; a corporate surety bond in the form that the Commissioner requires in a penal sum not less than $100,000 or, in the discretion of the Commissioner, a lower amount not less than $15,000; or a letter of credit in the form that the Commissioner requires in an amount not less than $100,000 or, in the discretion of the Commissioner, a lower amount not less than $15,000. The bond or letter of credit described under subsection (a)(2) or (3) of this section shall be: in favor of the State for the members of the applicant that reside in the State; issued by a surety insurer or bank authorized to do business in the State; and conditioned on the faithful performance by the applicant of its obligations under this title, including payment of any fines, fees, or penalties imposed on it or restitution ordered under this title. The total liability of the surety insurer under the bond may not exceed the penal sum of the bond. The total liability of the bank under the letter of credit may not exceed the amount of the letter of credit. The surety insurer or bank may cancel the bond or letter of credit after notifying the Commissioner at least 30 days before the effective date of the cancellation. Neither the surety insurer nor the bank is liable for any breach of condition that occurs after the effective date of the cancellation. The Commissioner may adopt regulations that specify conditions for surety bonds and letters of credit required by this section and provide methods for their termination. The security required by subsection (a) of this section shall be maintained as long as the licensee has any outstanding liability or obligation in the State. Subject to approval by the Commissioner, the licensee may substitute any type of security required by subsection (a) of this section for any other type of security required by subsection (a) of this section. On proof satisfactory to the Commissioner that the licensee has stopped doing business and that all of the licensee’s liabilities and obligations have been satisfied, the Commissioner shall authorize the Treasurer to return the security to the licensee.

Within a reasonable time after an application for a license is filed, the Commissioner shall issue a license to the applicant unless: the applicant has not met all of the requirements of this title; in the judgment of the Commissioner, the applicant does not have sufficient financial responsibility to engage in the business of a motor club; or the applicant has failed to make a reasonable showing that all of its owners, managers, officers, directors, or representatives are persons of reliability and integrity. If the Commissioner disapproves the application for a license, the Commissioner shall notify the applicant as soon as practicable of the reason for the disapproval and inform the applicant of its right to a hearing on the matter as provided in § 26-209 of this subtitle. If an application for a license filed under this subtitle is disapproved, the Commissioner shall: retain $50 of the application fee paid by the applicant; and return the balance of the application fee to the applicant.

A license expires on the first December 31 after its effective date unless it is renewed as provided in this section. At least 1 month before a license expires, the Commissioner shall send to the licensee, at the last known address of the licensee or electronic mail address of the holder on record a notice that states: the process for renewing the license; the date by which the Commissioner must receive the renewal application; and the amount of the renewal fee. Before a license expires, the licensee may renew it for an additional 1–year term if the holder: otherwise is entitled to a license; files with the Commissioner a renewal application: on the form that the Commissioner provides; or in an electronic format that the Commissioner approves; files with the Commissioner the fees to be charged to members; provides a financial statement as required under § 26–203(c)(3) of this subtitle; and pays to the Commissioner a renewal fee of $100. The Commissioner shall renew the license of each licensee that meets the requirements of this section.

Each licensee must appoint the Commissioner as attorney for service of process issued against the licensee under this title. The appointment of the Commissioner must: be in writing; and state that the licensee agrees that: lawful process against the licensee that is served on the Commissioner, or in the Commissioner’s absence, on an employee in charge of the office of the Commissioner, has the same effect as if served on the licensee; and the authority of the Commissioner to act as attorney for service of process continues in force as long as any liability remains outstanding against the licensee under this title in the State. A certified certificate of the appointment shall be filed with the Commissioner. When lawful process against a licensee under this title is served on the Commissioner, three copies of the process shall be furnished to the Commissioner. The Commissioner immediately shall forward: one copy of the process to the licensee by certified mail, return receipt requested; and one copy of the process to the resident agent or other similar official, if any, of the licensee in the State. At the time of the service, the plaintiff shall pay to the Commissioner a fee of $2 for each service of process. If the plaintiff prevails in the suit, the plaintiff may recover, as part of the taxable costs, any fee paid under this subsection.

After notice and opportunity for a hearing, the Commissioner may suspend or revoke a license if the Commissioner finds that the licensee: has violated any provision of this title; has failed to maintain the standards required under this title for the issuance of an initial license; is insolvent; has liabilities that exceed its assets; has engaged in a fraudulent or deceptive act; or has entered into a service contract the form of which has not been approved by the Commissioner.

An applicant for a license or a licensee is entitled to a hearing before the Commissioner if the application is denied or not acted on within a reasonable time or if the license is suspended or revoked. An applicant or licensee that is adversely affected by an order of the Commissioner may seek judicial review of the order in accordance with § 2-215 of this article.