<section article="gtr" article_name="Transportation" number="15-101" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Administration funds” means any payment or other money which is:</text> <level label="1"> <text>Paid to a person licensed under Subtitle 2, 3, 4, or 6 of this title; and</text> </level> <level label="2"> <text>Owed to the Administration for payment of taxes or fees.</text> </level> </level> <level label="c"> <level label="1"> <text>“Dealer” means, except as provided in paragraph (3) of this subsection, a dealer in vehicles of a type required to be registered under Title 13 of this article.</text> </level> <level label="2"> <level label="i"> <text>“Dealer” includes:</text> <level label="1"> <text>A person who is in the business of buying, selling, or exchanging vehicles, including a person who during any 12–month period offers to sell three or more of these vehicles, the ownership of which was acquired for resale purposes; and</text> </level> <level label="2"> <text>For the purposes of §§ 15–301 through 15–315, inclusive, of this title, any person who sells vehicles, whether or not that person acquired the vehicles for personal or business use, if the vehicles are displayed at a fixed location used principally for the purpose of selling vehicles on a regular basis.</text> </level> </level> <level label="ii"> <level label="1"> <text>For the purposes of subparagraph (i)1 of this paragraph, a person who offers to sell three or more vehicles during any 12–month period is presumed to have acquired the vehicles for resale purposes.</text> </level> <level label="2"> <text>The vehicle owner has the burden of rebutting the presumption established under subsubparagraph 1 of this subparagraph by a preponderance of the evidence.</text> </level> </level> </level> <level label="3"> <text>“Dealer” does not include:</text> <level label="i"> <text>A public official who sells or disposes of vehicles in the performance of his official duties;</text> </level> <level label="ii"> <text>An insurance company, finance company, bank, or other lending institution licensed or otherwise authorized to do business in this State that, to save it from loss, sells or disposes of vehicles under a contractual right and in the regular course of its business;</text> </level> <level label="iii"> <text>A licensed auctioneer acting on behalf of a seller, secured party or owner and where title does not pass to the auctioneer and the auction is not for the purpose of avoiding the provisions of this title;</text> </level> <level label="iv"> <text>A receiver, trustee, personal representative, or other person appointed by or acting under the authority of any court;</text> </level> <level label="v"> <text>Either a manufacturer or distributor who sells or distributes vehicles to licensed dealers or a person employed by a manufacturer or distributor to promote the sale of the vehicles of the manufacturer or distributor, if that manufacturer, distributor, or person does not sell vehicles to retail buyers;</text> </level> <level label="vi"> <text>A person who sells or disposes of vehicles acquired and used for personal or business use and not for the purpose of avoiding the provisions of this title, if that person is not engaged in buying, selling, or exchanging vehicles as a business;</text> </level> <level label="vii"> <text>An automotive dismantler and recycler who during the normal course of business acquires a salvage vehicle and transfers the vehicle on a salvage certificate. However, if the automotive dismantler and recycler rebuilds and sells more than 5 vehicles during a 12–month period to a person other than another automotive dismantler and recycler or licensed dealer, the automotive dismantler and recycler must be licensed as a dealer under § 15–302 of this title;</text> </level> <level label="viii"> <text>A person engaged in the leasing of motor vehicles under leases not intended as security;</text> </level> <level label="ix"> <text>A religious, charitable, or volunteer organization exempt from taxation under § 501(c) of the Internal Revenue Code, the Department of Human Services, or a local department of social services transferring a vehicle under § 13–810 of this article; or</text> </level> <level label="x"> <text>An autonomous vehicle converter as defined in § 15–901 of this title.</text> </level> </level> </level> <level label="d"> <text>“New Class A vehicle” and “new Class B vehicle” means a new vehicle that, if later sold and registered in this State, could be registered either as a Class A (passenger) vehicle or a Class B (for hire) vehicle, as the case may be.</text> </level> <level label="e"> <text>“Truck component part” means a truck’s engine, power train, or rear axle that is not warranted by the final manufacturer of the truck.</text> </level> <level label="f"> <text>“Two–stage vehicle” means a two–stage vehicle, as defined in § 13–113.2 of this article, that is of a type required to be registered under Title 13 of this article.</text> </level> <level label="g"> <level label="1"> <text>“Vehicle salesman” means, except as provided in paragraph (2) of this subsection, any individual who:</text> <level label="i"> <text>For a commission or other compensation, under any form of agreement or arrangement with a dealer, buys, sells, or exchanges or negotiates or attempts to negotiate a sale or exchange of an interest in a vehicle of a type required to be registered under Title 13 of this article;</text> </level> <level label="ii"> <text>Induces or attempts to induce any other person to buy or exchange an interest in a vehicle of a type required to be registered under Title 13 of this article and receives or expects to receive a commission or other compensation from either the seller or the buyer of the vehicle; or</text> </level> <level label="iii"> <text>For a commission or other compensation, negotiates with or induces any other person to enter into a financial security or warranty agreement on behalf of a dealer in connection with the sale of a vehicle.</text> </level> </level> <level label="2"> <text>“Vehicle salesman” does not include:</text> <level label="i"> <text>A person described in subsection (c)(3) of this section;</text> </level> <level label="ii"> <text>An individual acting as a representative of a person described in subsection (c)(3) of this section;</text> </level> <level label="iii"> <text>A person who:</text> <level label="1"> <text>Is compensated for arranging for the leasing of a vehicle for a period exceeding 180 days; and</text> </level> <level label="2"> <text>As an incidental step in the consummation of the lease, induces or arranges for the sale of a vehicle from a licensed dealer to another person, who in turn leases the vehicle to a lessee under a lease not intended as a security; or</text> </level> </level> <level label="iv"> <text>A person engaged in the leasing of vehicles under leases not intended as security.</text> </level> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-102" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>Each application for a license under this title shall be made on the form that the Administration requires.</text> </level> <level label="b"> <text>In addition to any other information required by this title, each application for a license under this title shall include:</text> <level label="1"> <text>The name and address of the applicant;</text> </level> <level label="2"> <text>The address of the fixed location from which the licensed activity of the applicant will be conducted;</text> </level> <level label="3"> <text>A statement of the maximum amount charged as a dealer processing charge under § 15-311.1 of this title; and</text> </level> <level label="4"> <text>Any other information that the Administration requires.</text> </level> </level> <level label="c"> <text>Each application for a license under this title shall:</text> <level label="1"> <text>Contain a certification by the applicant that the information given in it is true; and</text> </level> <level label="2"> <text>Be signed by:</text> <level label="i"> <text>The applicant, if the applicant is an individual;</text> </level> <level label="ii"> <text>A partner or other authorized representative, if the application is made for a partnership; or</text> </level> <level label="iii"> <text>An officer or other authorized representative, if the application is made for a corporation or any other business entity.</text> </level> </level> </level> <level label="d"> <text>Except for an application for a drivers’ school license, each application for a license under this title shall be accompanied by the annual fee required for that license.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-103" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a surety bond required of a licensee under this title shall be for the benefit of the Administration and any other person who suffers any loss because of a violation by the licensee, his agents, or employees of those provisions of the Maryland Vehicle Law that the Administration specifies.</text> </level> <level label="2"> <text>A manufacturer’s or distributor’s bond required under Subtitle 2 of this title shall be for the benefit of the Administration, any dealer, any buyer of a new or used Class A vehicle, and any member of the public who suffers any loss because of the breach of any express or implied warranty given by the manufacturer or distributor to a buyer of the vehicle from a dealer.</text> </level> </level> <level label="b"> <text>Any person who suffers a loss described in subsection (a) of this section has a right of action in his own name against the surety on the bond.</text> </level> <level label="c"> <text>If, before a surety bond required under this title expires or is terminated, the licensee does not file satisfactory evidence that the bond has been extended or replaced by a bond that the Administration approves, his license automatically is suspended. The Administration immediately shall notify the licensee of the suspension.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-104" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>The Administration shall issue a license under this title to an applicant if:</text> <level label="1"> <text>The applicant has complied with the provisions of this title that apply to that license; and</text> </level> <level label="2"> <text>The applicant otherwise is entitled to a license.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-105" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <level label="1"> <text>A person who is licensed under this title may conduct the licensed activity only from a fixed location, as specified in the application for the license, unless conducting wholesale transactions at auctions or at other licensed dealership locations.</text> </level> <level label="2"> <text>The books of account and records of, except as otherwise specified by law, the licensee shall be kept at that location.</text> </level> <level label="3"> <text>A person, who holds multiple licenses at more than one location and has established a computerized data processing record keeping system at one of his locations, may keep certain records, as designated by the Administrator, of all his licensed activities at the centralized location, provided prior approval of the Administrator has been granted.</text> </level> </level> <level label="b"> <text>A licensee may not remove or relocate the location specified for the licensed activity, unless the licensee has applied for and obtained a supplemental license from the Administration.</text> </level> <level label="c"> <text>A licensee may not open any additional location other than a location specified for the licensed activity, unless the licensee has applied for and obtained a supplemental license from the Administration.</text> </level> <level label="d"> <text>Each licensee under this title shall maintain and keep records required by this article.</text> </level> <level label="e"> <text>The records shall be kept for 3 years after the transaction to which it applies.</text> </level> <level label="f"> <text>During business hours, the records of the licensee shall be open to inspection by the Administration or any police officer while discharging his official duties.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-106" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>If, during any license year, there is any change in the information that a licensee gave the Administration in obtaining a license under this title, the licensee shall report the change to the Administration within 30 days after the change occurs.</text> </level> <level label="b"> <text>If, during any license year, there is any change in the information that a licensee gave the Administration in retaining a license under this title, the licensee shall report the change to the Administration within 30 days after the change occurs.</text> </level> <level label="c"> <text>The report under this section shall be made on the form that the Administration requires.</text> </level> <level label="d"> <text>The licensee shall sign the form and certify that the information given in it is true.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-107" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>If a license issued under this title is lost, stolen, mutilated, destroyed, or becomes illegible, the Administration may issue a duplicate license on application and payment of a fee established by the Administration. Before the Administration issues a duplicate, it may require the licensee to furnish satisfactory proof of the loss, theft, mutilation, destruction, or illegibility. When the Administration issues the duplicate, the license previously issued is void.</text> </section> <section article="gtr" article_name="Transportation" number="15-108" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>Each license issued under this title expires on a staggered basis as determined by the Administration.</text> </level> <level label="b"> <text>A license issued under this title may be renewed on application and payment of the fee required by this title for that license.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-109" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>Subject to subsection (b) of this section, in addition to any other grounds specified in this title for refusal, suspension, or revocation of a license, the Administration may refuse to grant a license under this title to any person and may suspend, revoke, or refuse to renew the license of any person if it finds that:</text> <level label="1"> <text>The person has violated or is attempting to violate any provision of this title or any rule or regulation adopted under this title;</text> </level> <level label="2"> <text>The person has violated or is attempting to violate any of the other provisions of the Maryland Vehicle Law that relate to the business or activity of that person; or</text> </level> <level label="3"> <text>Any officer, manager, agent, or employee of the person has violated or is attempting to violate any provision of this title, any rule or regulation adopted under this title, or any of the other provisions of the Maryland Vehicle Law that relate to the business or activity of the person, unless the Administration is satisfied that the individuals engaged in the management of the business or activity:</text> <level label="i"> <text>Had no knowledge of the wrongful conduct; or</text> </level> <level label="ii"> <text>Were unable to prevent the violation or attempted violation.</text> </level> </level> </level> <level label="b"> <text>The Administration shall suspend the license of a person if it finds that the person violated § 15–606(f) of this title.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-110" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>If the Administration refuses an application for a license or for the renewal of a license under this title, the applicant may request a hearing under Title 12, Subtitle 2 of this article.</text> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, the Administration may suspend or revoke a license issued under this title only after a hearing under Title 12, Subtitle 2 of this article.</text> </level> <level label="c"> <level label="1"> <text>If the Administration determines that a person licensed under this title is violating the used vehicle safety inspection requirements under § 23–106 of this article and that there is a danger of immediate, substantial, and continuing harm to the public if the license is continued pending a hearing, the Administration:</text> <level label="i"> <text>May immediately suspend the license;</text> </level> <level label="ii"> <text>Shall, within 7 days of a request for a hearing on the license suspension, grant the hearing in accordance with Title 12, Subtitle 2 of this article; and</text> </level> <level label="iii"> <text>After the hearing, render an immediate decision to:</text> <level label="1"> <text>Continue the license suspension;</text> </level> <level label="2"> <text>Revoke the license; or</text> </level> <level label="3"> <text>Reinstate the license.</text> </level> </level> </level> <level label="2"> <text>To the extent of a conflict between this subsection and Title 12, Subtitle 2 of this article, this subsection shall take precedence.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-110.1" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>If the Administration determines that there are reasonable grounds to suspend, revoke, or refuse to renew a license under this title, the Administration and the licensee may agree to conciliate the matter by conference.</text> </level> <level label="b"> <text>The Administration shall adopt regulations establishing criteria for the assessment of fines under this title.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-111" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>If the Administration suspends the license of any person licensed under this title, the licensee immediately shall return the license to the Administration.</text> </level> <level label="b"> <text>If the Administration revokes the license of any person licensed under this title, the licensee immediately shall return the license to the Administration.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-112" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>Any dealer or agent or employee of a dealer, any vehicle salesman, or any other person who sells a motorized minibike shall inform the buyer in writing that a motorized minibike may not be driven on a highway in the State.</text> </level> <level label="b"> <text>Any dealer or agent or employee of a dealer, any vehicle salesman, or any other person who sells a motorized minibike shall inform the buyer in writing that local law, ordinance, and regulation may limit the use of the motorized minibike.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-113" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>Each person who conducts auctions as a business in this State of motor vehicles of a type required to be registered under this article shall keep a record of:</text> <level label="1"> <text>The name and address of the consignor;</text> </level> <level label="2"> <text>The date on which it was consigned;</text> </level> <level label="3"> <text>The year, make, model, and serial number of each vehicle consigned;</text> </level> <level label="4"> <text>The title number and state where the vehicle was last registered;</text> </level> <level label="5"> <text>The odometer mileage reading at the time of consignment;</text> </level> <level label="6"> <text>The name and address of the person to whom the vehicle was sold;</text> </level> <level label="7"> <text>The selling price; and</text> </level> <level label="8"> <text>The date of sale.</text> </level> </level> <level label="b"> <text>During business hours, the records shall be open to inspection by the Administration, by the Department of State Police, or by a law enforcement officer with a county or municipal police department or sheriff’s office who is assigned to an antitheft unit.</text> </level> <level label="c"> <text>The records required by this section shall be kept for at least 3 years after the transaction to which it applies.</text> </level> <level label="d"> <text>A person who fails to comply with any requirement under subsections (a) through (c) of this section is subject to a civil penalty not exceeding:</text> <level label="1"> <text>For a first offense, $500; or</text> </level> <level label="2"> <text>For a second or subsequent offense, $1,000.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-113.1" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Automotive repair facility” means a facility where malfunctions of a motor vehicle are diagnosed or corrected for compensation.</text> </level> <level label="ii"> <text>“Automotive repair facility” includes a body shop.</text> </level> </level> <level label="3"> <text>“Major component part” means:</text> <level label="i"> <text>An air bag;</text> </level> <level label="ii"> <text>A bumper;</text> </level> <level label="iii"> <text>An engine;</text> </level> <level label="iv"> <text>A front fender;</text> </level> <level label="v"> <text>A front or rear side door;</text> </level> <level label="vi"> <text>A hood;</text> </level> <level label="vii"> <text>A pickup box or cargo box;</text> </level> <level label="viii"> <text>A rear quarter panel;</text> </level> <level label="ix"> <text>A rear door, deck lid, hatchback, or tailgate;</text> </level> <level label="x"> <text>A side assembly;</text> </level> <level label="xi"> <text>A sliding or cargo door; or</text> </level> <level label="xii"> <text>A transmission.</text> </level> </level> <level label="4"> <text>“Used major component part” does not include a:</text> <level label="i"> <text>Remanufactured part that has not been installed on a motor vehicle since remanufacture;</text> </level> <level label="ii"> <text>Core element that is held solely for the purpose of being returned for remanufacture; or</text> </level> <level label="iii"> <text>Part that is unsuitable for reuse in or on a motor vehicle.</text> </level> </level> <level label="5"> <text>“Vehicle storage facility” means a facility where disabled vehicles are stored at any time for compensation.</text> </level> </level> <level label="b"> <text>A person who operates an automotive repair facility shall keep accurate and complete records at the location where motor vehicle repairs are conducted of:</text> <level label="1"> <text>The name and address of the owner of each motor vehicle repaired or stored at the automotive repair facility or each customer who leaves a motor vehicle for repair or storage at the automotive repair facility;</text> </level> <level label="2"> <text>The date a motor vehicle was left at the automotive repair facility;</text> </level> <level label="3"> <text>The year, model, and, when repairs involve a used major component part, the vehicle identification number of the vehicle; and</text> </level> <level label="4"> <text>For a used major component part at the automotive repair facility, proof of ownership or proof of the right of possession, including, if available, the vehicle identification number on the component part.</text> </level> </level> <level label="c"> <text>A person who operates a vehicle storage facility shall keep accurate and complete records at the location where vehicles are stored of:</text> <level label="1"> <text>The name and address of the individual who requested storage of each vehicle;</text> </level> <level label="2"> <text>The date that each vehicle was brought into the vehicle storage facility;</text> </level> <level label="3"> <text>The year, model, and, if available, the vehicle identification number of each vehicle; and</text> </level> <level label="4"> <text>The date and manner of disposition of each vehicle.</text> </level> </level> <level label="d"> <level label="1"> <text>Records required under subsection (b) or (c) of this section shall be kept for at least 1 year after the date:</text> <level label="i"> <text>Of the transaction to which the record applies; or</text> </level> <level label="ii"> <text>On which a part or vehicle is at the automotive repair facility or vehicle storage facility.</text> </level> </level> <level label="2"> <text>A person who operates an automotive repair facility or vehicle storage facility may satisfy the record requirement if the required record is a computerized record that is accessible at the automotive repair facility or vehicle storage facility.</text> </level> </level> <level label="e"> <level label="1"> <text>During business hours or other hours of operation, an automotive repair facility or vehicle storage facility shall make available for inspection by the Administration, by the Department of State Police, or by a law enforcement officer with a county or municipal police department or sheriff’s office who is assigned to an antitheft unit:</text> <level label="i"> <text>Records required under this section; and</text> </level> <level label="ii"> <text>Used major component parts and vehicles for which records are required.</text> </level> </level> <level label="2"> <text>If an automotive repair facility or a vehicle storage facility is unable to produce a record required under this section, the automotive repair facility or vehicle storage facility may produce other evidence satisfactory to the Administration or law enforcement officer of proof of ownership or right of possession.</text> </level> </level> <level label="f"> <text>A person who fails to comply with any requirement under this section is subject to a civil penalty not exceeding:</text> <level label="1"> <text>For a first offense, $500; or</text> </level> <level label="2"> <text>For a second or subsequent offense, $1,000.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-115" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <level label="1"> <text>A person issued a citation under § 15-113 or § 15-113.1 of this subtitle shall comply with a notice to appear contained in a citation or a trial notice issued by the District Court.</text> </level> <level label="2"> <text>A person may comply with the notice to appear by:</text> <level label="i"> <text>Appearance in person or by counsel; or</text> </level> <level label="ii"> <text>Payment of the civil penalty as provided in the citation.</text> </level> </level> </level> <level label="b"> <text>A citation issued for a violation under § 15-113 or § 15-113.1 of this subtitle shall include:</text> <level label="1"> <text>Information advising the person receiving the citation of the manner in which liability may be contested; and</text> </level> <level label="2"> <text>A warning that failure to pay the civil penalty or to contest liability in a timely manner in accordance with the citation:</text> <level label="i"> <text>Is an admission of liability and waiver of defenses; and</text> </level> <level label="ii"> <text>Results in an entry of a default judgment that may include a fine, court costs, and administrative expenses in favor of the Administration against the person named in the citation.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the District Court:</text> <level label="i"> <text>May enter a default judgment in favor of the Administration if a person fails to pay a fine or comply with a notice to appear; and</text> </level> <level label="ii"> <text>Shall mail notice of any default judgment to the person named in the citation.</text> </level> </level> <level label="2"> <text>The default judgment shall take effect unless, by the end of the 15th day after the date that notice of the default judgment was mailed, the person named in the citation posts bond or a civil penalty deposit and requests a new date for a trial and the court has granted the motion.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-116" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>Any penalty under this subtitle is in addition to any other penalty provided by law.</text> </section> <section article="gtr" article_name="Transportation" number="15-201" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="a–1"> <text>“Dealer association” means a business entity that:</text> <level label="1"> <text>Is primarily owned by or composed of dealers that collectively represent a majority of the franchised dealers in the State; and</text> </level> <level label="2"> <text>Primarily represents the interests of dealers.</text> </level> </level> <level label="b"> <level label="1"> <text>“Distributor” means a distributor who is authorized by the manufacturer or the manufacturer’s authorized importer to enter into franchise agreements with dealers of:</text> <level label="i"> <text>New motor vehicles constructed or assembled outside of the United States; or</text> </level> <level label="ii"> <text>New two–stage vehicles completed outside of the United States by a second–stage manufacturer.</text> </level> </level> <level label="2"> <text>“Distributor” does not include an autonomous vehicle converter as defined in § 15–901 of this title.</text> </level> </level> <level label="c"> <level label="1"> <text>“Factory branch” means a branch office of a manufacturer from which the manufacturer:</text> <level label="i"> <text>Sells or promotes the sale to dealers in this State of a particular brand or make of new motor vehicles, or new completed two–stage vehicles;</text> </level> <level label="ii"> <text>Directs and supervises its representatives in this State; or</text> </level> <level label="iii"> <text>Supervises or contacts its dealers or prospective dealers in this State.</text> </level> </level> <level label="2"> <text>“Factory branch” does not include an autonomous vehicle converter as defined in § 15–901 of this title.</text> </level> </level> <level label="d"> <text>“License” means a manufacturer’s, distributor’s, or factory branch’s license issued by the Administration under this subtitle.</text> </level> <level label="e"> <level label="1"> <text>“Manufacturer” means:</text> <level label="i"> <text>A manufacturer of new motor vehicles constructed or assembled in the United States;</text> </level> <level label="ii"> <text>A second–stage manufacturer of new two–stage vehicles completed in the United States; and</text> </level> <level label="iii"> <text>In the case of trucks, a person engaged in the business of manufacturing truck component parts.</text> </level> </level> <level label="2"> <text>“Manufacturer” does not include an autonomous vehicle converter as defined in § 15–901 of this title.</text> </level> </level> <level label="f"> <text>“Manufacturer association” means a business entity that:</text> <level label="1"> <text>Is primarily owned by or composed of manufacturers that collectively represent a majority of the manufacturers in the State; and</text> </level> <level label="2"> <text>Primarily represents the interests of manufacturers.</text> </level> </level> <level label="g"> <text>“Second–stage manufacturer” has the meaning stated in § 13–113.2 of this article.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-201.1" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <text>This subtitle does not apply to manufacturers or distributors of, or factory branches for, recreational vehicles.</text> </section> <section article="gtr" article_name="Transportation" number="15-202" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>A manufacturer may not transfer any new motor vehicle, new two-stage vehicle, or truck component part to any dealer or distributor in this State unless the manufacturer is licensed by the Administration under this subtitle.</text> </level> <level label="b"> <text>A distributor may not transfer any new motor vehicle, or new two-stage vehicle to any dealer in this State unless the distributor is licensed by the Administration under this subtitle.</text> </level> <level label="c"> <text>A person may not conduct the business of a factory branch in new motor vehicles, or new two-stage vehicles unless the person is licensed by the Administration under this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-203" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>In addition to the information required under Subtitle 1 of this title, each application for a license shall include:</text> <level label="1"> <text>The address of the principal place of business of the applicant;</text> </level> <level label="2"> <text>The address of each place from which the applicant will make substantial contacts with dealers in this State; and</text> </level> <level label="3"> <text>The nature of the business to be conducted at each address.</text> </level> </level> <level label="b"> <text>Each applicant for a license shall submit as part of the application:</text> <level label="1"> <text>A copy of each form of any new vehicle warranty currently given or offered by the applicant;</text> </level> <level label="2"> <text>A copy of each form of franchise and any other contract with dealers used by the applicant, together with a list of dealers in this State who hold a franchise from the applicant;</text> </level> <level label="3"> <text>A copy of the vehicle preparation and delivery obligations of its dealers; and</text> </level> <level label="4"> <text>A statement of the compensation the applicant agrees to pay a dealer for parts supplied and work done by the dealer under:</text> <level label="i"> <text>The preparation and delivery obligations referred to in item (3) of this subsection; or</text> </level> <level label="ii"> <text>Any outstanding express or implied new vehicle warranty.</text> </level> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-204" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>Each licensee shall pay an annual fee to the Administration for each license year or part of a license year for which the license is issued.</text> </level> <level label="b"> <text>The annual license fee for a manufacturer or a distributor shall be established by the Administration based on the combined number of new motor vehicles, new two-stage vehicles, and truck component parts transferred by the manufacturer or distributor to dealers in this State during the preceding license year.</text> </level> <level label="c"> <text>The annual license fee for a factory branch shall be established by the Administration.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-205" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>After the Administration notifies a manufacturer or distributor of new motor vehicles of the approval of an application for a license and before the Administration issues a license, the manufacturer or distributor shall file with the Administration a surety bond in the form and with the surety that the Administration approves.</text> </level> <level label="b"> <level label="1"> <text>The amount of the surety bond shall be based on the number of new motor vehicles transferred by the manufacturer or distributor to dealers in this State during the preceding license year, according to the following schedule:</text> <level label="i"> <text>1 to 50 vehicles – $25,000 surety bond;</text> </level> <level label="ii"> <text>51 to 500 vehicles – $50,000 surety bond;</text> </level> <level label="iii"> <text>501 to 10,000 vehicles – $100,000 surety bond; and</text> </level> <level label="iv"> <text>Over 10,000 vehicles – $300,000 surety bond.</text> </level> </level> <level label="2"> <text>Each bond shall remain continuously in the amounts specified in this subsection.</text> </level> <level label="3"> <text>A manufacturer or distributor need file only one bond, regardless of the number of makes of motor vehicles manufactured or distributed.</text> </level> <level label="4"> <text>A manufacturer of truck component parts shall file a bond in the amount of $25,000.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-206" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <text>A license issued under this subtitle authorizes the licensee to conduct the business of a manufacturer, distributor, or factory branch, as the case may be, during the license year for which it is issued.</text> </section> <section article="gtr" article_name="Transportation" number="15-206.1" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>In this section, “good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.</text> </level> <level label="b"> <text>A manufacturer, distributor, or factory branch, whether directly or through an agent, employee, or representative, may not fail to act in good faith:</text> <level label="1"> <text>In acting or purporting to act under the terms, provisions, or conditions of any franchise agreement; or</text> </level> <level label="2"> <text>In any transaction or conduct governed by this subtitle.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-207" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Coerce” means to compel or attempt to compel by threat of harm, breach of contract, or other adverse action or consequences, including the loss of any incentive or other benefit made available to other dealers of the same line make in the State.</text> </level> <level label="ii"> <text>“Coerce” includes to act in a manner that violates § 15–206.1 of this subtitle.</text> </level> <level label="iii"> <text>“Coerce” does not include to argue, urge, recommend, or persuade.</text> </level> </level> <level label="3"> <text>“Require” means to impose upon a dealer a provision not required by law or previously agreed to by a dealer in a franchise agreement, excluding business decisions made to comply with the requirements of this title by a manufacturer, distributor, or factory branch which are uniformly applied to all Maryland dealers in new vehicles of the manufacturer, distributor, or factory branch.</text> </level> </level> <level label="b"> <text>A manufacturer, distributor, or factory branch, whether directly or through an agent, employee, affiliate, or representative, may not coerce any dealer to make any agreement with the manufacturer, distributor, or factory branch or their agent, employee, affiliate, or representative.</text> </level> <level label="c"> <text>A manufacturer, distributor, or factory branch, whether directly or through an agent, employee, affiliate, or representative, may not coerce any dealer to order or accept delivery of any vehicle, any equipment, parts, or accessories for a vehicle, or any other commodity that is not required by law or by the dealer’s franchise or that was not ordered voluntarily by the dealer.</text> </level> <level label="d"> <text>A manufacturer, distributor, or factory branch, whether directly or through an agent, employee, affiliate, or representative, may not require or coerce a dealer, by franchise agreement or otherwise, or as a condition to the renewal or continuation of a franchise agreement, to:</text> <level label="1"> <text>Exclude from the use of the dealer’s facilities a dealership for which the dealer has a franchise agreement to utilize the facilities; or</text> </level> <level label="2"> <text>Materially change the dealer’s facilities or method of conducting business if the change would impose substantial financial hardship on the business of the dealer.</text> </level> </level> <level label="e"> <level label="1"> <text>The provisions of this subsection apply notwithstanding the terms of any franchise agreement or agreement related to a franchise.</text> </level> <level label="2"> <text>A manufacturer, distributor, or factory branch, whether directly or through an agent, employee, affiliate, or representative, may not require or coerce a dealer to adhere to performance standards that are not applied uniformly to other similarly situated dealers.</text> </level> <level label="3"> <level label="i"> <text>Whether or not uniformly applied to other similarly situated dealers, an assigned market area or a performance standard, sales objective, or program for measuring dealership performance that may have a material effect on a dealer, including the dealer’s right to a benefit or payment under any incentive or reimbursement program, and the application of the standard, sales objective, or program by a manufacturer, distributor, or factory branch shall:</text> <level label="1"> <text>Be fair, reasonable, and equitable;</text> </level> <level label="2"> <text>Be based on accurate information; and</text> </level> <level label="3"> <text>Include considerations of the demographic characteristics and consumer preferences of the population in the dealer’s assigned market area, including:</text> </level> <level label="A"> <text>Car and truck preferences of consumers; and</text> </level> <level label="B"> <text>Geographic characteristics, such as natural boundaries, road conditions, and terrain, that affect car and truck shopping patterns.</text> </level> </level> <level label="ii"> <text>A dealer that claims that the assignment of a market area or application of a performance standard, sales objective, or program for measuring dealership performance is unfair or unreasonable due to the manufacturer, distributor, or factory branch failing to reasonably consider demographic characteristics of the population in the dealer’s assigned market area, including car and truck preferences of consumers, or due to the geographic characteristics, such as natural boundaries, road conditions, and terrain, that affect car and truck shopping patterns in the dealer’s assigned marketing area, may file a claim in a court of competent jurisdiction to determine whether the design of the assigned market area or the application of the performance standard, sales objective, or program is unfair or unreasonable under this paragraph.</text> </level> <level label="iii"> <text>A manufacturer, distributor, or factory branch has the burden of proving that the design of the assigned market area, or the performance standard, sales objective, or program for measuring dealership performance is fair and reasonable under this paragraph.</text> </level> </level> <level label="4"> <level label="i"> <text>If the performance standard is based on a survey, it must be shown that:</text> <level label="1"> <text>The survey was designed with experts;</text> </level> <level label="2"> <text>The proper universe was examined;</text> </level> <level label="3"> <text>A representative sample was chosen; and</text> </level> <level label="4"> <text>The data was accurately reported.</text> </level> </level> <level label="ii"> <text>The manufacturer, distributor, or factory branch shall establish the objectivity of the survey process and provide this information to any dealer of the same line make covered by the survey on request.</text> </level> </level> </level> <level label="f"> <text>A franchise agreement or other contract offered to a dealer by a manufacturer, distributor, or factory branch may not contain any provision requiring a dealer to pay the attorney’s fees of the manufacturer, distributor, or factory branch related to disputes involving the franchise.</text> </level> <level label="g"> <level label="1"> <level label="i"> <text>If the dealer is an entity other than an individual, the dealer shall designate an individual to represent the dealer to do business with the manufacturer, distributor, or factory branch.</text> </level> <level label="ii"> <text>Approval of the individual may not be withheld by the manufacturer, distributor, or factory branch unless the individual is unfit due to lack of good moral character or fails to meet reasonable general business experience requirements.</text> </level> </level> <level label="2"> <text>A dealer shall have a reasonable amount of time to:</text> <level label="i"> <text>Designate a representative or a successor if a change is required for any reason; and</text> </level> <level label="ii"> <text>Obtain approval of the representative or successor designated under item (i) of this paragraph, including time for a hearing, in the event of any objection by the manufacturer, distributor, or factory branch.</text> </level> </level> <level label="3"> <text>At a hearing resulting from an objection to the approval of the designated individual, the manufacturer, distributor, or factory branch has the burden of proving that the designated individual is not of good moral character or fails to meet reasonable general business experience requirements.</text> </level> </level> <level label="h"> <level label="1"> <level label="i"> <text>Any consumer rebates, dealer incentives, price or interest rate reductions, or finance terms that a manufacturer, distributor, or factory branch offers or advertises, or allows its dealers to offer or advertise, shall be offered to all dealers of the same line make.</text> </level> <level label="ii"> <text>Any manufacturer, distributor, or factory branch that denies the benefit of any consumer rebates, dealer incentives, price or interest rate reductions, or finance terms to a dealer on the basis that the dealer failed to comply with performance standards has the burden of proving that the performance standards comply with the provisions of this section.</text> </level> </level> <level label="2"> <text>Unless a dealer violates a State or local law intended to protect the public, a manufacturer, distributor, or factory branch may not:</text> <level label="i"> <text>Require a dealer to alter or replace an existing dealership facility; or</text> </level> <level label="ii"> <text>Deny, or threaten to deny, any benefit generally available to all dealers for a dealer’s failure to alter or replace an existing dealership facility.</text> </level> </level> <level label="3"> <text>Unless a dealer violates § 15–313(a) or (b) of this title or a State or local law intended to protect the public, a manufacturer, distributor, or factory branch may not take an adverse action against a dealer for disclosing on its website that the advertised price of a vehicle is the manufacturer’s minimum allowable advertised price and that the dealer may offer a lower price for the vehicle.</text> </level> <level label="4"> <text>A manufacturer, distributor, or factory branch may not reduce the price of a motor vehicle charged to a dealer or provide different financing terms to a dealer in exchange for the dealer’s agreement to:</text> <level label="i"> <text>Maintain an exclusive sales or service facility;</text> </level> <level label="ii"> <text>Build or alter a sales or service facility; or</text> </level> <level label="iii"> <text>Participate in a floor plan or other financing arrangement.</text> </level> </level> </level> <level label="i"> <text>A manufacturer, distributor, or factory branch may offer rebates, cash incentives, or other promotional items for the sale of a vehicle by its dealers if:</text> <level label="1"> <text>The same rebate, cash incentive, or promotion is offered to all of its dealers of the same line make; and</text> </level> <level label="2"> <text>Any rebate, cash incentive, or promotion that is based on the sale of an individual vehicle is not increased for meeting a performance standard unless the standard is reasonable considering all existing circumstances.</text> </level> </level> <level label="j"> <text>A manufacturer, distributor, or factory branch may not discriminate among its dealers in any program that provides assistance to its dealers, including Internet listings, sales leads, warranty policy adjustments, marketing programs, and dealer recognition programs.</text> </level> <level label="k"> <level label="1"> <text>This subsection does not apply to:</text> <level label="i"> <text>The purchase or procurement of:</text> <level label="1"> <text>Moveable displays;</text> </level> <level label="2"> <text>Brochures or other promotional materials;</text> </level> <level label="3"> <text>Special tools and training as required by the manufacturer;</text> </level> <level label="4"> <text>Parts for repairs made under warranty obligations of a manufacturer, distributor, or factory branch; or</text> </level> <level label="5"> <text>Any goods or services for which a manufacturer, a distributor, a factory branch, or an affiliate provides a credit, stipend, payment, or reimbursement to the dealer that covers all or a substantial portion of the dealer’s program costs;</text> </level> </level> <level label="ii"> <text>Optional programs;</text> </level> <level label="iii"> <text>A program, or the renewal or modification of a program, in existence on October 1, 2014; or</text> </level> <level label="iv"> <text>An agreement between the manufacturer, distributor, factory branch, or affiliate and the dealer that is directly related to the dealer’s completion of a program if separate and valuable consideration has been offered to the dealer and accepted.</text> </level> </level> <level label="2"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, a manufacturer, distributor, factory branch, or one of its affiliates may not, directly or through an agent, an employee, an affiliate, or a representative, require or coerce by agreement, program, or incentive provision, a dealer to purchase goods or services from a vendor that is selected, identified, or designated by the manufacturer, distributor, factory branch, or one of its affiliates.</text> </level> <level label="ii"> <text>A manufacturer, distributor, factory branch, or one of its affiliates may offer a dealer the option to obtain goods or services under this subsection of substantially similar quality and design from a vendor chosen by the dealer subject to the advanced approval of the manufacturer, distributor, factory branch, or one of its affiliates.</text> </level> </level> <level label="3"> <text>A manufacturer, distributor, factory branch, or one of its affiliates may not unreasonably withhold the approval required under paragraph (2) of this subsection.</text> </level> <level label="4"> <text>Nothing in this subsection may be construed to allow a dealer or vendor to:</text> <level label="i"> <text>Directly or indirectly eliminate or impair in any way a manufacturer’s intellectual property, trademark, or trade dress rights; or</text> </level> <level label="ii"> <text>Erect or maintain signs that do not conform to the intellectual property usage guidelines of the manufacturer, distributor, factory branch, or one of its affiliates.</text> </level> </level> <level label="5"> <level label="i"> <text>A manufacturer, distributor, factory branch, or one of its affiliates may not penalize a dealer for failure to participate in an optional program.</text> </level> <level label="ii"> <text>Withholding the benefits of an optional program in which the dealer failed to participate may not be construed to be a penalty imposed by the manufacturer, distributor, factory branch, or affiliate.</text> </level> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-207.1" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Consumer data” means nonpublic personal information, as defined in 15 U.S.C. § 6809(4), collected by a dealer and provided by the dealer directly to a manufacturer, distributor, or factory branch, or its agent.</text> </level> <level label="ii"> <text>“Consumer data” does not include the same or similar data that is obtained by a manufacturer from any other source.</text> </level> </level> <level label="3"> <text>“Data management system” means a computer hardware or software system that:</text> <level label="i"> <text>Is owned, leased, or licensed by a dealer, including a system of web–based applications;</text> </level> <level label="ii"> <text>Is located at the dealership or hosted remotely; and</text> </level> <level label="iii"> <text>Stores and provides access to consumer data collected and stored by the dealer.</text> </level> </level> </level> <level label="b"> <text>Notwithstanding the provisions of any franchise agreement, a manufacturer, distributor, or factory branch, or its agent:</text> <level label="1"> <text>Shall allow a dealer to furnish consumer data in a widely accepted file format, such as comma–separated values, and through a third–party vendor selected by the dealer;</text> </level> <level label="2"> <text>May access or obtain consumer data directly from a dealer’s data management system only with the express written consent of the dealer;</text> </level> <level label="3"> <text>May not take any adverse action against a dealer for refusing to grant access to the dealer’s data management system;</text> </level> <level label="4"> <text>May require that a franchised dealer of the manufacturer, distributor, or factory branch provide consumer data or transactional data that pertains to:</text> <level label="i"> <text>Claims for warranty parts or repairs;</text> </level> <level label="ii"> <text>Sales and deliveries of new or certified pre–owned vehicles of any line make of the manufacturer, distributor, or factory branch;</text> </level> <level label="iii"> <text>Safety or recall obligations; or</text> </level> <level label="iv"> <text>Validation and payment of customer or dealer incentives; and</text> </level> </level> <level label="5"> <text>Shall indemnify the dealer for any third–party claims asserted against or damages incurred by the dealer to the extent the claims of damages are caused by access to and unlawful disclosure of consumer data resulting from a breach caused by the manufacturer, distributor, or factory branch, or its agent, or a third party to which the manufacturer, distributor, or factory branch, or its agent, has provided the consumer data in violation of this section.</text> </level> </level> <level label="c"> <text>A manufacturer, distributor, or factory branch, or its agent, may not require that a dealer grant the manufacturer, distributor, or factory branch, or its agent, access to the dealer’s data management system through a franchise agreement or as a condition of renewal or continuation of the franchise agreement.</text> </level> <level label="d"> <text>Written consent under subsection (b)(2) of this section:</text> <level label="1"> <text>Shall be separate from the dealer franchise agreement;</text> </level> <level label="2"> <text>Shall be executed by the dealer; and</text> </level> <level label="3"> <text>May be withdrawn by the dealer on 30 days’ written notice to the manufacturer, distributor, or factory branch.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-208" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>A manufacturer may not refuse to deliver new motor vehicles, new two–stage vehicles, or truck component parts, as the case may be, to a licensed dealer or distributor, in reasonable quantities and within a reasonable time after receipt of a written or electronic order, if:</text> <level label="1"> <text>The manufacturer specifically advertises that these vehicles or truck component parts are available for immediate delivery; and</text> </level> <level label="2"> <text>The dealer or distributor has a franchise or other contract with the manufacturer for the sale of these vehicles or truck component parts to the public.</text> </level> </level> <level label="b"> <text>A distributor may not refuse to deliver new motor vehicles, or new two–stage vehicles, as the case may be, to a licensed dealer, in reasonable quantities and within a reasonable time after receipt of a written or electronic order, if:</text> <level label="1"> <text>The distributor specifically advertises that these vehicles are available for immediate delivery; and</text> </level> <level label="2"> <text>The dealer has a franchise or other contract with the distributor for the sale of these vehicles to the public.</text> </level> </level> <level label="c"> <text>A factory branch may not refuse to deliver new motor vehicles, or new two–stage vehicles, as the case may be, to a licensed dealer, in reasonable quantities and within a reasonable time after receipt of a written or electronic order, if:</text> <level label="1"> <text>The factory branch specifically advertises that these vehicles are available for immediate delivery; and</text> </level> <level label="2"> <text>The dealer has a franchise or other contract with the factory branch for the sale of these vehicles to the public.</text> </level> </level> <level label="d"> <text>A failure to deliver vehicles because of a labor strike, government regulation, or other cause not the fault of the manufacturer, distributor, or factory branch is not a violation of this section.</text> </level> <level label="e"> <text>If a dealer has a franchise or other contract with a manufacturer, distributor, or factory branch for the sale of vehicles or truck component parts of a specific line or make, the manufacturer, distributor, or factory branch shall allow the dealer to:</text> <level label="1"> <text>Purchase the vehicles or truck component parts at the same price and on the same terms as all other dealers with a franchise or other contract for the sale of vehicles or truck component parts of the same line or make; and</text> </level> <level label="2"> <text>Receive the same right to incentive payments that is given to all other dealers with a franchise or other contract for the sale of vehicles or truck component parts of the same line or make.</text> </level> </level> <level label="f"> <level label="1"> <text>Any system operated by a manufacturer, distributor, or factory branch or its affiliate for the allocation of new vehicles to dealers shall be reasonable and fair for all dealers.</text> </level> <level label="2"> <text>On the written request by any of its dealers, a manufacturer, distributor, or factory branch or its affiliate shall disclose to the dealer the method by which new vehicles are allocated to dealers of the same line make.</text> </level> <level label="3"> <text>In any dispute over compliance with this subsection, a manufacturer, distributor, or factory branch or its affiliate has the burden of proving its compliance.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-209" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>A manufacturer may not terminate, cancel, or fail to renew the franchise of a dealer, notwithstanding any term or provision of the franchise, unless:</text> <level label="1"> <text>The dealer has failed to comply substantially with the reasonable requirements of the franchise; and</text> </level> <level label="2"> <text>Except as otherwise provided by subsection (d) of this section, the manufacturer:</text> <level label="i"> <text>Gives the dealer at least 90 days’ prior written notice of the termination, cancellation, or nonrenewal and of the specific grounds for the action; and</text> </level> <level label="ii"> <text>Provides the Administration with a copy of that notice.</text> </level> </level> </level> <level label="b"> <text>A distributor may not terminate, cancel, or fail to renew the franchise of a dealer, notwithstanding any term or provision of the franchise, unless:</text> <level label="1"> <text>The dealer has failed to comply substantially with the reasonable requirements of the franchise; and</text> </level> <level label="2"> <text>Except as otherwise provided by subsection (d) of this section, the distributor:</text> <level label="i"> <text>Gives the dealer at least 90 days’ prior written notice of the termination, cancellation, or nonrenewal and of the specific grounds for the action; and</text> </level> <level label="ii"> <text>Provides the Administration with a copy of that notice.</text> </level> </level> </level> <level label="c"> <text>A factory branch may not terminate, cancel, or fail to renew the franchise of a dealer, notwithstanding any term or provision of the franchise, unless:</text> <level label="1"> <text>The dealer has failed to comply substantially with the reasonable requirements of the franchise; and</text> </level> <level label="2"> <text>Except as otherwise provided by subsection (d) of this section, the factory branch:</text> <level label="i"> <text>Gives the dealer at least 90 days’ prior written notice of the termination, cancellation, or nonrenewal and of the specific grounds for the action; and</text> </level> <level label="ii"> <text>Provides the Administration with a copy of that notice.</text> </level> </level> </level> <level label="d"> <text>The 90–day notice period required by subsection (a) of this section:</text> <level label="1"> <text>May be reduced to not less than 15 days, if the ground for the termination, cancellation, or nonrenewal is the dealer’s inability to reasonably serve the interests of the public; and</text> </level> <level label="2"> <text>Is not required, if the dealer waives it in writing.</text> </level> </level> <level label="e"> <level label="1"> <text>If a dealer receives written notice that his franchise is being terminated, canceled, or not renewed, the dealer may, within the notice period required by this section, request a hearing under Title 12, Subtitle 2 of this article in which the manufacturer, distributor, or factory branch must show that the dealer has failed to comply substantially with the reasonable requirements of the franchise.</text> </level> <level label="2"> <text>If the dealer requests a hearing under this subsection, the dealer’s franchise continues in effect, notwithstanding any term or provision of the franchise or any other provision of this subtitle, until the Administration, after the hearing, makes a final determination.</text> </level> <level label="3"> <text>A dealer, manufacturer, distributor, or factory branch may appeal the determination of the Administration to the circuit court for the county in which the dealer’s principal place of business is located.</text> </level> <level label="4"> <text>If the dealer, manufacturer, distributor, or factory branch appeals the determination of the Administration to a circuit court, the dealer’s franchise continues in effect, notwithstanding any term or provision of the franchise or any other provision of this subtitle, until the circuit court makes a final determination.</text> </level> <level label="5"> <text>A dealer, manufacturer, distributor, or factory branch may appeal from a final judgment entered by a circuit court to the Appellate Court of Maryland as provided in § 12–301 of the Courts and Judicial Proceedings Article.</text> </level> </level> <level label="f"> <level label="1"> <text>In addition to any administrative and criminal sanctions imposed under this subtitle, a manufacturer, distributor, or factory branch that terminates, cancels, or fails to renew the franchise of a dealer in violation of this section shall pay to the dealer the fair value of his business as a going concern.</text> </level> <level label="2"> <text>On payment, the dealer shall convey his business, free of liens and encumbrances, to the manufacturer, distributor, or factory branch.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-210" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>A manufacturer, whether directly or through an agent, employee, or representative, may not use any advertisement that is in any way false, deceptive, or misleading.</text> </level> <level label="b"> <text>A distributor, whether directly or through an agent, employee, or representative, may not use any advertisement that is in any way false, deceptive, or misleading.</text> </level> <level label="c"> <text>A factory branch, whether directly or through an agent, employee, or representative, may not use any advertisement that is in any way false, deceptive, or misleading.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-211" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>A manufacturer, whether directly or through an agent, employee, affiliate, or representative, may not prevent, by contract or otherwise, any owner, partner, or stockholder of any dealership from transferring any ownership interest in the dealership to any other person.</text> </level> <level label="b"> <text>A distributor, whether directly or through an agent, employee, affiliate, or representative, may not prevent, by contract or otherwise, any owner, partner, or stockholder of any dealership from transferring any ownership interest in the dealership to any other person.</text> </level> <level label="c"> <text>A factory branch, whether directly or through an agent, employee, affiliate, or representative, may not prevent, by contract or otherwise, any owner, partner, or stockholder of any dealership from transferring any ownership interest in the dealership to any other person.</text> </level> <level label="d"> <level label="1"> <text>A dealer or an owner, partner, or stockholder of a dealership may not sell, assign, or otherwise transfer a franchise or any right under a franchise without the consent of the manufacturer.</text> </level> <level label="2"> <text>Notwithstanding the terms of any franchise agreement or agreement related to a franchise, a manufacturer may not exercise a right of first refusal in the event of a sale or transfer or proposed sale or transfer of a dealer’s business or any equity interest in a dealer’s business to a person who meets the manufacturer’s reasonable qualifications for ownership and is:</text> <level label="i"> <text>A member of the dealer’s immediate family;</text> </level> <level label="ii"> <text>A qualified manager with at least 2 years management experience at the dealer’s business;</text> </level> <level label="iii"> <text>An existing dealer in good standing; or</text> </level> <level label="iv"> <text>A business entity controlled by a person described in item (i), (ii), or (iii) of this paragraph.</text> </level> </level> <level label="3"> <text>If a manufacturer exercises a right of first refusal in the event of a sale or transfer or proposed sale or transfer of the dealer’s business or an equity interest in the dealer’s business, the manufacturer shall pay the reasonable expenses, including customary attorney’s fees, incurred by the prospective purchaser in negotiating and implementing the contract for the proposed sale or transfer, provided that the dealer has given the manufacturer at least 45 days’ notice of an intent to sell or transfer.</text> </level> </level> <level label="e"> <level label="1"> <text>A manufacturer may not unreasonably withhold consent to the transfer of a franchise under subsection (d) of this section.</text> </level> <level label="2"> <text>If an owner, partner, or stockholder of a dealership seeks to sell, assign, or otherwise transfer a franchise or any right under a franchise, the owner, partner, or stockholder shall provide written notice to the manufacturer of the proposed transfer.</text> </level> <level label="3"> <text>Within 20 days after a manufacturer receives written notice of a proposed transfer from a transferor, the manufacturer shall provide the transferor with all forms and requests for information that the manufacturer considers necessary to evaluate the proposed transfer.</text> </level> <level label="4"> <text>Within 75 days after a manufacturer receives all completed forms and requested information from a transferor, the manufacturer shall:</text> <level label="i"> <text>Give consent to the transfer; or</text> </level> <level label="ii"> <text>Provide a written statement of the specific grounds for its refusal to consent to the transfer, consistent with the requirements under subsection (k) of this section.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>A dealer or an owner, partner, or stockholder of a dealership may not sell, assign, or otherwise transfer a franchise or any right under a franchise without the consent of the distributor.</text> </level> <level label="2"> <text>Notwithstanding the terms of any agreement related to the franchise, a distributor may not exercise a right of first refusal in the event of a sale or transfer or proposed sale or transfer of a dealer’s business or any equity interest in a dealer’s business to a person who meets the distributor’s reasonable qualifications for ownership and is:</text> <level label="i"> <text>A member of the dealer’s immediate family;</text> </level> <level label="ii"> <text>A qualified manager with at least 2 years management experience at the dealer’s business;</text> </level> <level label="iii"> <text>An existing dealer in good standing; or</text> </level> <level label="iv"> <text>A business entity controlled by a person described in item (i), (ii), or (iii) of this paragraph.</text> </level> </level> <level label="3"> <text>If a distributor exercises a right of first refusal in the event of a sale or transfer or proposed sale or transfer of the dealer’s business or an equity interest in the dealer’s business, the distributor shall pay the reasonable expenses, including customary attorney’s fees, incurred by the prospective purchaser in negotiating and implementing the contract for the proposed sale or transfer, provided that the dealer has given the distributor at least 45 days’ notice of an intent to sell or transfer.</text> </level> </level> <level label="g"> <text>However, the distributor may not unreasonably withhold consent to the transfer of a franchise under subsection (f) of this section.</text> </level> <level label="h"> <level label="1"> <text>A dealer or an owner, partner, or stockholder of a dealership may not sell, assign, or otherwise transfer a franchise or any right under a franchise without the consent of the factory branch.</text> </level> <level label="2"> <text>Notwithstanding the terms of any agreement related to the franchise, a factory branch may not exercise a right of first refusal in the event of a sale or transfer or proposed sale or transfer of a dealer’s business or any equity interest in a dealer’s business to a person who meets the factory branch’s reasonable qualifications for ownership and is:</text> <level label="i"> <text>A member of the dealer’s immediate family;</text> </level> <level label="ii"> <text>A qualified manager with at least 2 years management experience at the dealer’s business;</text> </level> <level label="iii"> <text>An existing dealer in good standing; or</text> </level> <level label="iv"> <text>A business entity controlled by a person described in item (i), (ii), or (iii) of this paragraph.</text> </level> </level> <level label="3"> <text>If a factory branch exercises a right of first refusal in the event of a sale or transfer or proposed sale or transfer of the dealer’s business or an equity interest in the dealer’s business, the factory branch shall pay the reasonable expenses, including customary attorney’s fees, incurred by the prospective purchaser in negotiating and implementing the contract for the proposed sale or transfer, provided that the dealer has given the factory branch at least 45 days’ notice of an intent to sell or transfer.</text> </level> </level> <level label="i"> <text>However, the factory branch may not unreasonably withhold consent to the transfer of a franchise under subsection (h) of this section.</text> </level> <level label="j"> <text>A manufacturer, distributor, or factory branch may not impose a condition on the approval of the sale or transfer of the ownership of a dealership, by the sale of the business, stock transfer, or otherwise, if the condition would violate the provisions of this title if imposed on an existing dealer.</text> </level> <level label="k"> <level label="1"> <text>A manufacturer, distributor, or factory branch violates this section if, without a statement of specific grounds consistent with this title for the action, the manufacturer, distributor, or factory branch takes action to prevent or refuse to approve:</text> <level label="i"> <text>The sale, assignment, or transfer of the ownership of a dealership by the sale of the business, stock transfer, or otherwise;</text> </level> <level label="ii"> <text>The sale, transfer, or assignment of a dealer franchise; or</text> </level> <level label="iii"> <text>A change in the executive management or principal operator of the dealership.</text> </level> </level> <level label="2"> <level label="i"> <text>An existing dealer denied the sale, assignment, transfer, or change under this section may request that the Administrator conduct a hearing to review the denial or the imposition of a condition in violation of this section.</text> </level> <level label="ii"> <text>If the Administrator finds that the action leading to the denial or the imposition of a condition was in violation of this section, the Administrator may order the sale, assignment, or transfer to be approved by the manufacturer, distributor, or factory branch without imposition of the condition.</text> </level> </level> <level label="3"> <level label="i"> <text>An applicant for approval of a sale, assignment, or transfer of ownership of a dealership or an existing dealer denied the sale, assignment, or transfer may institute an action for damages in the circuit court for the county in which the dealer’s principal place of business is located, if:</text> <level label="1"> <text>The existing dealer does not request a hearing by the Administrator; and</text> </level> <level label="2"> <text>The action taken in violation of this section to deny the sale, assignment, or transfer of ownership or the change in executive management or the condition imposed on the sale, assignment, or transfer is the proximate cause of the failure of the contract for the sale, assignment, or transfer of ownership of the dealership.</text> </level> </level> <level label="ii"> <text>An action for damages under this section must be instituted within 2 years of the violation of this section.</text> </level> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-211.1" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <level label="1"> <text>A designated family member of a deceased or incapacitated dealer may succeed the dealer in the ownership or operation of the dealership under the existing franchise agreement if the designated family member:</text> <level label="i"> <text>Gives the manufacturer, distributor, or factory branch written notice of the designated family member’s intention to succeed to the dealership within 120 days after the dealer’s death or incapacity;</text> </level> <level label="ii"> <text>Agrees to be bound by all of the terms and conditions of the franchise agreement; and</text> </level> <level label="iii"> <text>Meets the current criteria that the manufacturer, distributor, or factory branch generally applies in qualifying dealers.</text> </level> </level> <level label="2"> <text>A manufacturer, distributor, or factory branch may refuse to honor the existing franchise agreement with the designated family member only for good cause.</text> </level> </level> <level label="b"> <level label="1"> <text>The manufacturer, distributor, or factory branch may request from a designated family member personal and financial data reasonably necessary to determine whether the existing franchise agreement should be honored.</text> </level> <level label="2"> <text>The designated family member shall supply the personal and financial data promptly upon the request.</text> </level> </level> <level label="c"> <text>If a manufacturer, distributor, or factory branch believes that good cause exists for refusing to honor the succession, the manufacturer, distributor, or factory branch may, within 60 days after receipt of the notice of the designated family member’s intent to succeed the dealer or, if the manufacturer, distributor, or factory branch requested personal or financial data, within 60 days after the receipt of the requested data, provide written notice to the designated family member of the manufacturer, distributor, or factory branch’s refusal to approve the succession.</text> </level> <level label="d"> <text>The notice of the manufacturer, distributor, or factory branch provided in accordance with subsection (c) of this section shall state the specific grounds for the refusal to approve the succession and that discontinuance of the franchise agreement shall take effect not less than 90 days after the date the notice is provided.</text> </level> <level label="e"> <text>If written notice of refusal is not provided in accordance with subsection (c) of this section, the franchise agreement shall continue in effect and shall be subject to termination only as otherwise permitted by this title.</text> </level> <level label="f"> <text>This section does not preclude a dealer from designating any person as the dealer’s successor by written instrument filed with the manufacturer, distributor, or factory branch. If a written instrument is filed, the instrument alone shall determine the succession rights to the management and operation of the dealership.</text> </level> <level label="g"> <level label="1"> <text>This section applies only to a dealer who is an individual.</text> </level> <level label="2"> <text>In the event of the incapacity or death of an individual designated to act as a representative of a dealer that is an entity under § 15-207(g) of this subtitle, the procedure for replacement of the individual shall be as provided in § 15-207(g) of this subtitle.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-212" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>In this section, “motor home” means a motor vehicle that:</text> <level label="1"> <text>Is designed to provide temporary living quarters, built into as an integral part of, or permanently attached to, a self–propelled motor vehicle chassis or van; and</text> </level> <level label="2"> <text>Contains permanently installed independent life support systems which provide at least four of the following facilities:</text> <level label="i"> <text>Cooking;</text> </level> <level label="ii"> <text>Refrigeration or ice box;</text> </level> <level label="iii"> <text>Self–contained toilet;</text> </level> <level label="iv"> <text>Heating, air–conditioning, or both;</text> </level> <level label="v"> <text>A potable water supply system including a faucet and sink;</text> </level> <level label="vi"> <text>Separate 110–125 volt electrical power supply; or</text> </level> <level label="vii"> <text>An LP gas supply.</text> </level> </level> </level> <level label="b"> <text>In addition to the other grounds specified in Subtitle 1 of this title for refusal, suspension, or revocation of a license, the Administration may refuse to grant a license under this subtitle to any person and may suspend, revoke, or refuse to renew the license of any person if it finds that the person has:</text> <level label="1"> <text>Made any material misrepresentation in transferring a vehicle or truck component part to a dealer or distributor;</text> </level> <level label="2"> <text>Failed to comply with any written warranty agreement; or</text> </level> <level label="3"> <text>Failed to reasonably compensate any franchised dealer who does work under:</text> <level label="i"> <text>The vehicle preparation and delivery obligations of the dealer; or</text> </level> <level label="ii"> <text>Any outstanding express or implied new vehicle or truck component parts warranty.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A licensee shall specify in writing to each of its motor vehicle dealers licensed in the State:</text> <level label="i"> <text>The dealer’s obligation for vehicle preparation, delivery, warranties, and recalls on its products;</text> </level> <level label="ii"> <text>The schedule of compensation to be paid to the dealers for parts, including parts assemblies, and labor, including diagnostic labor and associated administrative requirements, in connection with the service obligations established under item (i) of this paragraph; and</text> </level> <level label="iii"> <text>A time allowance for the performance of labor described in this paragraph that is reasonable and adequate.</text> </level> </level> <level label="2"> <text>Reasonable compensation under this section may not be less than:</text> <level label="i"> <text>With respect to labor for warranty or recall repairs, the dealer’s current labor rate for nonwarranty repairs of a like kind for retail customers; and</text> </level> <level label="ii"> <text>With respect to any part, the dealer’s cost plus its current retail mark–up percentage charged to retail customers for nonwarranty repairs of a like kind.</text> </level> </level> <level label="3"> <level label="i"> <text>For purposes of paragraph (2) of this subsection, the dealer’s labor rate or parts mark–up percentage shall be established by a submission to the licensee of whichever of the following produces fewer repair orders closed, as of the date of submission, within the preceding 180 days:</text> <level label="1"> <text>100 qualifying sequential customer–paid repair orders; or</text> </level> <level label="2"> <text>90 days of qualifying customer–paid repair orders.</text> </level> </level> <level label="ii"> <text>With respect to parts, a schedule of compensation established under this subsection shall be equal to the parts mark–up percentage as reflected in qualifying repair orders, calculated by dividing the total charges for parts in the repair orders by the total dealer cost for the parts minus one.</text> </level> <level label="iii"> <level label="1"> <text>A dealer may not make a submission under this subsection more than once in 1 year.</text> </level> <level label="2"> <text>For purposes of subsubparagraph 1 of this subparagraph, a revision or supplement to a submission to correct or clarify the submission does not constitute a new submission.</text> </level> </level> </level> <level label="4"> <text>Repair orders for labor or parts in connection with any of the following may not constitute a qualifying repair order under paragraph (2) of this subsection:</text> <level label="i"> <text>Accessories;</text> </level> <level label="ii"> <text>Repairs for manufacturer, distributor, or factory branch special events, promotions, or service campaigns;</text> </level> <level label="iii"> <text>Repairs related to collision;</text> </level> <level label="iv"> <text>Vehicle emission or safety inspections required by law;</text> </level> <level label="v"> <text>Parts sold, or repairs performed, at wholesale or for insurance carriers, or other third–party payors;</text> </level> <level label="vi"> <text>Routine maintenance not covered under any warranty, including maintenance involving fluids, filters, and belts not provided in the course of repairs;</text> </level> <level label="vii"> <text>Nuts, bolts, fasteners, and similar items that do not have an individual parts number;</text> </level> <level label="viii"> <text>Tires;</text> </level> <level label="ix"> <text>Vehicle reconditioning;</text> </level> <level label="x"> <text>Goodwill or policy repairs or replacements; or</text> </level> <level label="xi"> <text>Repairs on vehicles from a different line–make.</text> </level> </level> <level label="5"> <text>If a licensee gives a dealer a part at no cost to use in performing a repair under a recall, campaign service action, or warranty repair, the licensee shall compensate the dealer for the part by paying the dealer the parts mark–up percentage established under this subsection on the cost for the part listed on the licensee’s price schedule.</text> </level> <level label="6"> <level label="i"> <text>The schedule of compensation submitted under paragraph (3) of this subsection shall be presumed to be accurate and reasonable.</text> </level> <level label="ii"> <text>The licensee shall approve or rebut the dealer’s submission within 30 days of receipt.</text> </level> <level label="iii"> <text>If the licensee approves a dealer’s submission, the licensee shall begin compensating the dealer under the schedule within 30 days after the date of approval.</text> </level> <level label="iv"> <text>In the absence of a timely rebuttal by the licensee, the schedule of compensation submitted by the dealer shall go into effect on the 31st day following the licensee’s receipt of the schedule.</text> </level> <level label="v"> <text>Any rebuttal of the schedule of compensation by the licensee shall:</text> <level label="1"> <text>Be delivered to the dealer within 30 days of the licensee’s receipt of the schedule; and</text> </level> <level label="2"> <text>Consist of reasonable substantiating evidence that the declared rate is materially inaccurate.</text> </level> </level> <level label="vi"> <text>In the event of a timely rebuttal, on resolution of the matter by agreement of the parties or by administrative, judicial, or other action, a licensee’s payment obligations under the resulting schedule of compensation shall begin on the 31st day following a final order unless otherwise provided for by the fact finder.</text> </level> <level label="vii"> <level label="1"> <text>To the extent that any action commenced under subsection (d) of this section or § 15–213 or § 15–214 of this subtitle involves the application of paragraph (3) of this subsection, the issues shall be limited to whether the labor rate or parts mark–up percentage stated in the dealer’s submission was materially inaccurate.</text> </level> <level label="2"> <text>A licensee shall have the burden of proving under this subparagraph that the dealer’s submission was materially inaccurate.</text> </level> </level> <level label="viii"> <level label="1"> <text>A licensee may verify a dealer’s effective rates once annually.</text> </level> <level label="2"> <text>If a licensee finds that a dealer’s effective rates have increased or decreased, the licensee may increase or decrease, respectively, the warranty reimbursement rate prospectively.</text> </level> </level> </level> <level label="7"> <text>A licensee may not directly or indirectly:</text> <level label="i"> <text>Calculate its own labor rate or parts mark–up percentage on a warranty reimbursement rate submission by the licensee’s dealer under this section, or require a dealer to calculate a labor rate or parts mark–up percentage, by any method not required under this section, including a method that is unduly burdensome or time–consuming or that requires information that is unduly burdensome or time–consuming to provide such as:</text> <level label="1"> <text>A part–by–part or transaction–by–transaction calculation; or</text> </level> <level label="2"> <text>Presentation of information as to, or calculations based on, the dealer’s or other dealers’ warranty compensation;</text> </level> </level> <level label="ii"> <text>Establish or implement a special part or component number for parts used in warranty fulfillment, if the special part or component number results in reduced compensation for the dealer unless the part is used for specific, limited repair situations;</text> </level> <level label="iii"> <text>Require or coerce a dealer to change the prices for which it sells parts or labor for retail customer repairs;</text> </level> <level label="iv"> <text>Take adverse action against a dealer because the dealer seeks compensation under this section, by:</text> <level label="1"> <text>Implementing a process that is inconsistent with the licensee’s obligations to the dealer under this subtitle; or</text> </level> <level label="2"> <text>Failing to act in good faith;</text> </level> </level> <level label="v"> <text>Conduct any warranty or retail customer repair audit, or other service–related audit, solely because the dealer makes a request for warranty reimbursement at retail rates in the ordinary course of business; or</text> </level> <level label="vi"> <text>Establish, implement, enforce, or apply any policy, standard, rule, program, or incentive regarding the compensation due under this section other than in a uniform manner among the licensee’s dealers in the State.</text> </level> </level> <level label="8"> <text>The provisions of paragraphs (1) through (7) of this subsection do not apply to travel trailers or parts of systems, fixtures, appliances, furnishings, accessories, and features of motor homes that are not manufactured by the manufacturer of the motor home as a part of the unit.</text> </level> <level label="9"> <level label="i"> <text>A claim filed under this section by a dealer with a manufacturer or distributor shall be:</text> <level label="1"> <text>In the manner and form reasonably prescribed by the manufacturer or distributor; and</text> </level> <level label="2"> <text>Approved or disapproved within 30 days of receipt.</text> </level> </level> <level label="ii"> <text>A claim not approved or disapproved within 30 days of receipt shall be deemed approved.</text> </level> <level label="iii"> <text>Payment of or credit issued on a claim filed under this section shall be made within 30 days of approval.</text> </level> </level> <level label="10"> <text>A dealer’s failure to comply with a specific requirement of the manufacturer or distributor may not constitute grounds for denial of the claim or reduction of the amount of compensation paid to the dealer if the dealer presents documentation or other reasonable evidence to substantiate that the repair and the claim were done according to manufacturer warranty guidelines.</text> </level> <level label="11"> <level label="i"> <text>If a claim filed under this section is shown by the manufacturer or distributor to be false or unsubstantiated, the manufacturer or distributor may charge back the claim within 9 months from the date the claim was paid or credit issued.</text> </level> <level label="ii"> <text>This paragraph does not limit the right of a manufacturer or distributor to:</text> <level label="1"> <text>Conduct an audit of any claim filed under this section; or</text> </level> <level label="2"> <text>Charge back for any claim that is proven to be fraudulent.</text> </level> </level> <level label="iii"> <text>An audit under this paragraph shall be conducted according to generally accepted accounting principles.</text> </level> </level> <level label="12"> <text>A licensee may not prohibit a dealer from, or take any adverse action against a dealer for, providing to a customer information given to the dealer by a manufacturer related to any condition that may substantially affect motor vehicle safety, durability, reliability, or performance.</text> </level> <level label="13"> <text>A dealer may provide the information specified in paragraph (12) of this subsection only to a customer that has:</text> <level label="i"> <text>Purchased the vehicle for which the information pertains from the dealer; or</text> </level> <level label="ii"> <text>Had the vehicle for which the information pertains serviced by the dealer.</text> </level> </level> <level label="14"> <text>A licensee may not deny a claim, reduce the amount of compensation to a dealer, or process a charge back to a dealer for performing covered warranty or required recall repairs on a vehicle:</text> <level label="i"> <text>For resolving a condition covered by the licensee’s original warranty;</text> </level> <level label="ii"> <text>For remedying a safety–related defect that is subject to an outstanding recall under federal law;</text> </level> <level label="iii"> <text>If the dealer properly performed the repairs and submitted the claims; or</text> </level> <level label="iv"> <text>If the dealer discovered the need for repairs:</text> <level label="1"> <text>During the course of a separate repair requested by the customer; or</text> </level> <level label="2"> <text>Through notice of an outstanding recall under federal law for a safety–related defect.</text> </level> </level> </level> </level> <level label="d"> <text>As to any person licensed under this subtitle, instead of or in addition to revocation, suspension, or nonrenewal of a license under this section, the Administrator:</text> <level label="1"> <text>May order the licensee to pay a fine not exceeding $50,000 for each violation of this subtitle; and</text> </level> <level label="2"> <text>May order the licensee to compensate any person for financial injury or other damage suffered as a result of the violation.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-212.1" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>Upon the filing of a claim, a manufacturer, factory branch, or distributor shall compensate a dealer for any incentive or reimbursement program sponsored by the manufacturer, factory branch, or distributor, under the terms of which the dealer is eligible for compensation.</text> </level> <level label="b"> <level label="1"> <text>A claim filed under this section shall be:</text> <level label="i"> <text>In the manner and form prescribed by the manufacturer, factory branch, or distributor; and</text> </level> <level label="ii"> <text>Approved or disapproved within 30 days of receipt.</text> </level> </level> <level label="2"> <text>A claim not approved or disapproved within 30 days of receipt shall be deemed approved.</text> </level> <level label="3"> <text>Payment of a claim filed under this section shall be made within 30 days of approval.</text> </level> </level> <level label="c"> <level label="1"> <text>If a claim filed under this section is shown by the manufacturer, factory branch, or distributor to be false or unsubstantiated, the manufacturer, factory branch, or distributor may charge back the claim within 6 months from the payment of the incentive or reimbursement.</text> </level> <level label="2"> <text>This paragraph does not limit the right of a manufacturer, factory branch, or distributor to:</text> <level label="i"> <text>Conduct an audit of any claim filed under this section; or</text> </level> <level label="ii"> <text>Charge back for any claim that is proven to be fraudulent.</text> </level> </level> <level label="3"> <text>An audit under this paragraph shall be conducted according to generally accepted accounting principles.</text> </level> </level> <level label="d"> <text>A manufacturer, distributor, or factory branch may not refuse to pay, or claim reimbursement from, a dealer for sales, incentives, or payments related to a motor vehicle sold by the dealer because the purchaser of the motor vehicle exported or resold the motor vehicle in violation of the policy of the manufacturer, distributor, or factory branch unless the manufacturer, distributor, or factory branch can show that, at the time of sale, the dealer knew or should have known of the purchaser’s intention to export or resell the motor vehicle.</text> </level> <level label="e"> <level label="1"> <text>This subsection applies only to an incentive payment, a reimbursement payment, cash, a gift, or a thing of value earned by an employee of a dealer on or after May 1, 2009.</text> </level> <level label="2"> <level label="i"> <text>An incentive payment, a reimbursement payment, cash, a gift, or a thing of value to be given by a manufacturer, distributor, or factory branch to an employee of a dealer may be given:</text> <level label="1"> <text>Directly to the employee; or</text> </level> <level label="2"> <text>To the dealer to be distributed to the employee.</text> </level> </level> <level label="ii"> <text>An incentive payment, a reimbursement payment, or cash given to a dealer for distribution to an employee under this paragraph shall be distributed to the employee as part of the payroll process after the appropriate payroll deductions have been made by the dealer.</text> </level> </level> <level label="3"> <text>A manufacturer, distributor, or factory branch shall make information available to a dealer about any incentive payment, reimbursement payment, cash, gift, or thing of value totaling more than $200 in a calendar year that is given directly to an employee of the dealer.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-212.2" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>If a manufacturer, distributor, or factory branch terminates, suspends, refuses to renew, or closes a dealer’s franchise or refuses to supply new vehicles to a dealer who holds a franchise, the manufacturer, distributor, or factory branch shall:</text> <level label="1"> <text>Reimburse the dealer for any costs the dealer incurred for facility upgrades or alterations required by the manufacturer, distributor, or factory branch within the previous 2 years;</text> </level> <level label="2"> <text>Pay the dealer at least the dealer cost, plus any charges by the franchisor, distributor, or factory branch, for distribution, delivery, and taxes paid by the dealer, less all allowances paid to the dealer by the franchisor for any new, undamaged motor vehicles purchased within 18 months of the date of the termination, suspension, refusal to renew, closure, or refusal to supply, whether acquired from the franchisor or from another dealer of the same line make in the ordinary course of business;</text> </level> <level label="3"> <text>Pay the dealer at least the dealer acquisition cost of each new, unused, undamaged, and unsold part or accessory if the part or accessory is in the current parts catalog and is:</text> <level label="i"> <text>Still in the original, resalable merchandising package and in unbroken lots; or</text> </level> <level label="ii"> <text>In the case of sheet metal, in the original packaging or a comparable substitute for the original packaging;</text> </level> </level> <level label="4"> <text>Pay the dealer at least the fair market value of each undamaged sign owned by the dealer that bears a trademark, trade name, or commercial symbol used or claimed by the franchisor if the sign was purchased from or at the request of the franchisor;</text> </level> <level label="5"> <text>Pay the dealer at least the fair market value of all special tools and automotive service equipment owned by the dealer that were recommended and designated as special tools or equipment by the franchisor, if the tools and equipment are in useable and good condition except for normal wear and tear; and</text> </level> <level label="6"> <text>Pay the dealer at least the reasonable cost of transporting, handling, packing, and loading motor vehicle parts, signs, tools, and special equipment subject to repurchase under this section.</text> </level> </level> <level label="b"> <level label="1"> <text>If a manufacturer of motor homes terminates or cancels a motor home dealer, the manufacturer shall reimburse the dealer, less any allowances, discounts, or rebates paid to the dealer by the manufacturer, for at least:</text> <level label="i"> <text>The total net inventory invoice costs;</text> </level> <level label="ii"> <text>Any charges by the manufacturer for distribution delivery; and</text> </level> <level label="iii"> <text>Any inventory related taxes paid by the dealer.</text> </level> </level> <level label="2"> <text>This subsection only applies to motor homes in inventory that:</text> <level label="i"> <text>Are new and untitled;</text> </level> <level label="ii"> <text>Were acquired from the manufacturer within 18 months before the effective date of the notice of termination or cancellation;</text> </level> <level label="iii"> <text>Have not been used, other than for demonstration purposes; and</text> </level> <level label="iv"> <text>Have not been altered or damaged.</text> </level> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-213" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <text>Notwithstanding any administrative or criminal sanctions imposed by this subtitle, if a person suffers financial injury or other damage as a result of a violation of this subtitle by any other person, whether or not that other person has been found guilty of a criminal violation, the injured person may recover damages and reasonable attorneys’ fees in any court of competent jurisdiction.</text> </section> <section article="gtr" article_name="Transportation" number="15-214" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="2" subtitle_name="Manufacturers, Distributors, and Factory Branches"> <level label="a"> <text>Subject to subsection (b) of this section and except as provided in subsection (c) of this section, in addition to any other right to request a hearing under this subtitle and notwithstanding any provisions of the franchise agreement to the contrary, a dealer, designated dealer successor as provided in § 15–211.1 of this subtitle, dealer association on behalf of itself, a dealer, or a group of dealers, manufacturer, manufacturer association on behalf of itself, a manufacturer, or a group of manufacturers, distributor, or factory branch may request a hearing under Title 12, Subtitle 2 of this article to:</text> <level label="1"> <text>Resolve a dispute under any provision of this title between a dealer, a designated dealer successor, or a dealer association and a manufacturer, manufacturer association, distributor, or factory branch; or</text> </level> <level label="2"> <text>Seek clarification or interpretation of any provision of this title.</text> </level> </level> <level label="b"> <text>A dealer association may request a hearing under subsection (a)(1) of this section only if:</text> <level label="1"> <text>At least one member of the dealer association has a dispute under any provision of this title with a manufacturer, distributor, or factory branch;</text> </level> <level label="2"> <text>The interests that the dealer association seeks to protect are germane to the purpose of the dealer association; and</text> </level> <level label="3"> <text>The claim asserted and the relief requested do not require the participation of each of the individual members.</text> </level> </level> <level label="c"> <text>Subsection (a)(1) of this section does not apply to a dispute involving a manufacturer, distributor, or factory branch that does not have at least one franchised dealer in this State.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-301" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <text>In this subtitle, “license” means a dealer’s license issued by the Administration under this subtitle.</text> </section> <section article="gtr" article_name="Transportation" number="15-302" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>A person may not conduct the business of a dealer unless the person is licensed by the Administration under this subtitle.</text> </level> <level label="b"> <text>Any person who has been refused a dealer’s license in this State or whose dealer’s license is revoked or suspended may not conduct the business of a dealer under any license, permit, or registration certificate issued by any other jurisdiction.</text> </level> <level label="c"> <text>A person convicted of a violation of this section is subject to imprisonment not exceeding 1 year or a fine not exceeding $5,000 or both.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-303" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>A license may not be issued to a partnership or corporation as such.</text> </level> <level label="b"> <level label="1"> <text>If an application for a license is made for a corporation, the license shall be applied for by and issued to three officers of the corporation who are authorized to act for it or, if it is a close corporation, at least one officer authorized to act for the close corporation.</text> </level> <level label="2"> <text>If an application is made for a partnership, the license shall be applied for and issued to all of the partners who are authorized to act for the partnership. However, as to any such partner that is a corporation, the application for the corporate partner shall be made by and issued to three officers of the corporate partner who are authorized to act for it or, if it is a close corporation, at least one officer authorized to act for the close corporation.</text> </level> </level> <level label="c"> <text>Each individual who applies for a license under this section assumes, as an individual, all responsibilities of the dealership and, as an individual, is subject to all conditions, restrictions, and penalties imposed on licensed dealers by the Maryland Vehicle Law.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-304" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>Except as provided in subsection (b) of this section, a person may not be licensed under this subtitle unless:</text> <level label="1"> <text>The business to be conducted under the license is the only or principal business conducted from the fixed location specified in the application;</text> </level> <level label="2"> <text>That business is conducted from a building that is adequate and appropriate for the sale of the vehicles that may be sold under the license; and</text> </level> <level label="3"> <text>That business either:</text> <level label="i"> <text>Maintains and operates an automotive repair facility equipped for reasonably adequate and proper servicing of the vehicles to be sold by it; or</text> </level> <level label="ii"> <text>Has an existing contract, approved by the Administration, that requires the contractor to service, at a reasonably convenient location, the vehicles to be sold by the business.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>As to trailers, semitrailers, motorcycles, Class C (funeral and ambulance) vehicles, or emergency vehicles as defined in § 11–118(2), (5), and (7) of this article, the sale of these vehicles need not be the only or principal business conducted from the fixed location, but shall be subject to any reasonable location requirements determined by the Administration by rule or regulation.</text> </level> <level label="2"> <text>A wholesale dealer may be licensed under this subtitle regardless of whether the wholesale dealer meets the requirements of subsection (a)(1) and (3) of this section, but a wholesale dealer shall be subject to any reasonable location requirements determined by the Administration by rule or regulation.</text> </level> </level> <level label="c"> <text>Notwithstanding the provisions of this section:</text> <level label="1"> <text>Except as provided in paragraph (3) of this subsection, a new vehicle dealer, or a licensed vehicle salesman who is employed by the dealer, may participate in 2 annual vehicle shows for each dealer location.</text> </level> <level label="2"> <text>A display or exhibit of vehicles provided by a vehicle manufacturer is not a vehicle show under this section if buyers’ orders are not executed and deposits are not accepted.</text> </level> <level label="3"> <level label="i"> <text>A new vehicle dealer franchised to sell Class M motor homes or Class G trailers, or a licensed salesman who is employed by the dealer, may participate in 3 annual vehicle shows.</text> </level> <level label="ii"> <text>A new vehicle dealer franchised to sell motorcycles, or a licensed salesman who is employed by the dealer, may participate in more than 2 annual vehicle shows.</text> </level> </level> </level> <level label="d"> <text>A vehicle dealer or licensed vehicle salesman listed in subsection (c) of this section may participate in a vehicle show if:</text> <level label="1"> <text>The dealer holds a valid license issued under this title; and</text> </level> <level label="2"> <text>At least 60 days before the vehicle show, an application is filed with the Administration, for approval by the Administration, that contains:</text> <level label="i"> <text>A list of the names and business addresses of participating dealers to the extent known;</text> </level> <level label="ii"> <text>The location of the vehicle show;</text> </level> <level label="iii"> <text>The specific dates on which the vehicle show will be held; and</text> </level> <level label="iv"> <text>Other reasonable information required by the Administration; and</text> </level> </level> <level label="3"> <text>The vehicle show does not exceed 10 consecutive days and, except for motorcycle shows, is restricted to new vehicles only.</text> </level> </level> <level label="e"> <level label="1"> <text>This subsection does not apply to a licensed motorcycle dealer or a licensed motorcycle salesman who is employed by the dealer.</text> </level> <level label="2"> <text>A licensed dealer, or a licensed vehicle salesman who is employed by the dealer, who participates in a vehicle show may execute a buyer’s order and accept a deposit as provided in paragraph (3) of this subsection.</text> </level> <level label="3"> <text>A licensed dealer may not accept a deposit that:</text> <level label="i"> <text>For an order for any vehicle, except a Class M motor home, exceeds 5 percent of the cost of the vehicle; or</text> </level> <level label="ii"> <text>For an order of a Class M motor home, exceeds 10 percent of the cost of the motor home.</text> </level> </level> <level label="4"> <text>Except as otherwise provided in paragraph (2) of this subsection, a licensed dealer, or a licensed vehicle salesman who is employed by the dealer, shall conduct activities involved in a vehicle sale, including the completion of the sales contract, the issuance of temporary registration plates and a temporary registration certificate, and delivery of the vehicle, at the dealer’s fixed location as shown in the dealer’s application for the license.</text> </level> </level> <level label="f"> <text>A licensed motorcycle dealer, or a licensed salesman who is employed at a vehicle show by the dealer, may conduct all activities involved in a motorcycle sale, including executing a buyer’s order, accepting a deposit of any amount, completing the sales contract, issuing temporary registration plates and a temporary registration certificate, and delivery of the motorcycle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-304.1" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>There is an out–of–state motor home and recreational trailer vehicle show permit.</text> </level> <level label="b"> <text>The Administration may issue a permit under this section to a dealer of motor homes or recreational trailers licensed in another state only if that state reciprocally authorizes Maryland dealers of motor homes and recreational trailers to display or exhibit motor homes or recreational trailers at vehicle shows in that state.</text> </level> <level label="c"> <text>A permit holder:</text> <level label="1"> <text>May display or exhibit motor homes or recreational trailers at a vehicle show for motor homes or recreational trailers in Worcester County; and</text> </level> <level label="2"> <text>May not execute a buyer’s order or accept a deposit.</text> </level> </level> <level label="d"> <text>An out–of–state dealer of motor homes or recreational trailers that is licensed by the licensing authority of another state may apply for a permit.</text> </level> <level label="e"> <text>The Administration shall determine the duration of a permit issued under this section.</text> </level> <level label="f"> <level label="1"> <text>After a permit has been approved by the Administration, the permit holder shall file a bond with the Administration.</text> </level> <level label="2"> <text>The bond shall be on a form prescribed and furnished by the Administration, payable to the State, and conditioned on compliance with the conditions and limitations of the permit.</text> </level> <level label="3"> <text>The amount of the bond shall be determined by the Administration.</text> </level> <level label="4"> <level label="i"> <text>Liability under the bond shall be for the duration of the permit.</text> </level> <level label="ii"> <text>A bond may not be fully released until all requirements of this section, regulations adopted in accordance with this section, and permit conditions have been met or complied with.</text> </level> </level> <level label="5"> <text>The bond shall be executed by the permit holder and by a corporate surety approved by the Administration.</text> </level> </level> <level label="g"> <text>The Administration may suspend or revoke a permit if the Administration determines that the permit holder is out of compliance with this section or any permit conditions.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-305" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>A license to deal in new vehicles may not be issued to any person unless the manufacturer or distributor of the vehicles is in compliance with the surety bond requirements of § 15–205 of this title.</text> </level> <level label="b"> <text>A license to deal in new vehicles may be issued only for a dealer in new vehicles who holds a franchise from:</text> <level label="1"> <text>The manufacturer of the vehicles; or</text> </level> <level label="2"> <text>A distributor who is authorized by the manufacturer or the manufacturer’s authorized importer of the vehicles.</text> </level> </level> <level label="c"> <text>If an applicant for a license to deal in new vehicles seeks to qualify under subsection (b) of this section, the applicant shall submit with the application an exact copy of the required franchise.</text> </level> <level label="d"> <level label="1"> <text>If a franchise required by this section is terminated in accordance with § 15–209 of this title, the license of the dealer shall be suspended automatically unless, before the effective date of termination, the licensed dealer files satisfactory evidence that the franchise has been extended. The Administration immediately shall notify the licensee of the suspension.</text> </level> <level label="2"> <level label="i"> <text>Notwithstanding paragraph (1) of this subsection, if a franchise issued to a licensee who deals in Class M motor homes or Class G travel trailers is terminated for any reason, the Administration may authorize the licensee to dispose of the Class M motor homes and Class G travel trailers that were in the dealer’s inventory prior to the franchise termination without applying for a certificate of title in the dealership’s name or paying the applicable excise tax.</text> </level> <level label="ii"> <text>The initial authorization period under subparagraph (i) of this paragraph may not exceed 12 months from the date of the franchise termination.</text> </level> <level label="iii"> <text>After the initial authorization period under subparagraph (i) of this paragraph, the Administration may review each situation on a case by case basis and determine whether a further extension of time to dispose of remaining inventory is warranted or whether the dealer shall be required to take title to any remaining Class M motor homes and Class G travel trailers in the dealer’s inventory.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>Notwithstanding subsections (a) and (f) of this section, a manufacturer or distributor may be licensed as a dealer if the manufacturer or distributor:</text> <level label="i"> <text>Operates temporarily a dealership that:</text> <level label="1"> <text>Was previously owned by a franchised dealer; and</text> </level> <level label="2"> <text>Is for sale to any qualified person at a reasonable price;</text> </level> </level> <level label="ii"> <text>Operates a dealership in a bona fide relationship in which an independent person:</text> <level label="1"> <text>Has made a significant investment, subject to loss, in the dealership; and</text> </level> <level label="2"> <text>Can reasonably expect to acquire full ownership of the dealership under reasonable terms and conditions; or</text> </level> </level> <level label="iii"> <level label="1"> <text>Is a second–stage manufacturer as defined in § 13–113.2(a)(7) of this article; and</text> </level> <level label="2"> <text>Deals only in Class E (truck) vehicles with a gross weight limit of 10,000 pounds or more, as defined in § 13–916 of this article.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>Notwithstanding subsections (b) and (f) of this section and subject to subparagraph (ii) of this paragraph, a manufacturer or distributor may be licensed as a dealer if:</text> <level label="1"> <text>The manufacturer or distributor deals only in electric or nonfossil–fuel burning vehicles;</text> </level> <level label="2"> <text>No dealer in the State holds a franchise from the manufacturer or distributor;</text> </level> <level label="3"> <text>The manufacturer or distributor, or a subsidiary, an affiliate, or a controlled entity of the manufacturer or distributor, does not hold a controlling interest in another manufacturer or distributor, or a subsidiary, an affiliate, or a controlled entity of the other manufacturer or distributor, that is licensed as a dealer under this paragraph; and</text> </level> <level label="4"> <text>No other manufacturer or distributor, or subsidiary, affiliate, or controlled entity of the other manufacturer or distributor, that is licensed as a dealer under this paragraph, holds a controlling interest in the manufacturer or distributor, or a subsidiary, an affiliate, or a controlled entity of the manufacturer or distributor.</text> </level> </level> <level label="ii"> <text>No more than four licenses may be issued under this paragraph.</text> </level> <level label="iii"> <text>The Administration shall adopt regulations to implement this paragraph.</text> </level> </level> </level> <level label="f"> <text>A manufacturer or distributor, or a person who is acting for a partnership or corporation that is owned or controlled by or under common control with a manufacturer or distributor, may not sell a new vehicle to a retail buyer.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-305.1" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>A wholesale dealer who is licensed by the Administration under this subtitle:</text> <level label="1"> <text>May buy a vehicle from another dealer, at an auto auction, or from a retail seller;</text> </level> <level label="2"> <text>May sell a vehicle to or exchange vehicles with another dealer;</text> </level> <level label="3"> <text>Except as provided in item (4) of this subsection, may sell a vehicle or exchange vehicles at an auto auction;</text> </level> <level label="4"> <text>May not sell a vehicle to or exchange vehicles with a retail buyer; and</text> </level> <level label="5"> <text>May not buy, sell, or exchange new vehicles.</text> </level> </level> <level label="b"> <text>A wholesale dealer shall keep a record of the following:</text> <level label="1"> <text>The year, make, model, and identification number of a vehicle that is bought, sold, or exchanged;</text> </level> <level label="2"> <text>The date that a vehicle is bought, sold, or exchanged;</text> </level> <level label="3"> <text>The amount for which a vehicle is bought or sold;</text> </level> <level label="4"> <text>The name, address, and license number of the other person with whom the wholesale dealer conducts a purchase, sale, or exchange;</text> </level> <level label="5"> <text>The odometer mileage statement for a vehicle that is required under the federal Motor Vehicle Information and Cost Act; and</text> </level> <level label="6"> <text>Each invoice, bill of sale, and other pertinent document and record in the form required by the Administration.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-306" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <text>In addition to the information required under Subtitle 1 of this title, each application for a license shall include:</text> <level label="1"> <text>The type of dealership applied for;</text> </level> <level label="2"> <text>If the application is made for a partnership, the name and address of each partner applying for the partnership;</text> </level> <level label="3"> <text>If the application is made for a corporation or for a partnership by a corporate partner, the name and address of each of the officers applying for the corporation or partnership;</text> </level> <level label="4"> <text>If the application is made for a corporation, the place of its incorporation; and</text> </level> <level label="5"> <text>The nature of the business to be conducted at each address.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-307" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>Each licensed dealer shall pay to the Administration an annual license fee established by the Administration for each license year or part of a license year for which the license is issued.</text> </level> <level label="b"> <text>A licensed dealer need not pay more than one annual fee, regardless of the number of its business locations.</text> </level> <level label="c"> <text>On payment of the fee required by this section and issuance of a dealer's license, the Administration also shall issue one vehicle salesman's license without further charge.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-308" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <level label="1"> <text>After the Administration notifies an applicant of the approval of an application and before the Administration issues a license, the applicant shall file with the Administration a surety bond in the form and with the surety that the Administration approves.</text> </level> <level label="2"> <text>The bond shall be for the applicant’s primary location and all supplemental locations if all of the locations are licensed under the same dealer business license number.</text> </level> </level> <level label="b"> <text>The amount of the surety bond shall be:</text> <level label="1"> <text>For a licensee who is licensed to deal only in trailers or semitrailers 15 feet or less in length, or only in boat trailers of any size $5,000;</text> </level> <level label="2"> <text>For a licensee who is licensed to deal in the sale of new motor vehicles, an amount based on the number of new motor vehicle sales during the preceding license year, according to the following schedule:</text> <level label="i"> <text>1 to 500 vehicles $50,000;</text> </level> <level label="ii"> <text>501 to 1,000 vehicles $75,000;</text> </level> <level label="iii"> <text>1,001 to 2,500 vehicles $100,000; and</text> </level> <level label="iv"> <text>Over 2,500 vehicles $300,000; and</text> </level> </level> <level label="3"> <text>For a licensee who is licensed to deal only in the sale of used motor vehicles, including wholesalers, or a licensee who is licensed to deal in the sale of trailers or semitrailers over 15 feet in length, an amount based on the number of used vehicle sales, or sales of trailers or semitrailers over 15 feet in length, during the preceding license year, according to the following schedule:</text> <level label="i"> <text>1 to 250 vehicles $15,000;</text> </level> <level label="ii"> <text>251 to 500 vehicles $25,000;</text> </level> <level label="iii"> <text>501 to 1,000 vehicles $35,000;</text> </level> <level label="iv"> <text>1,001 to 2,500 vehicles $50,000; and</text> </level> <level label="v"> <text>Over 2,500 vehicles $150,000.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>This subsection applies only to an applicant who:</text> <level label="i"> <text>Applies for a license to deal in the sale of new or used vehicles; and</text> </level> <level label="ii"> <text>Was not licensed to sell vehicles during the preceding license year.</text> </level> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection, the Administration shall base the amount of a surety bond for an applicant described in paragraph (1) of this subsection on the estimated volume of sales in the initial year in which the license is in effect.</text> </level> <level label="3"> <text>The amount of the surety bond under paragraph (2) of this subsection may not be less than:</text> <level label="i"> <text>For an applicant for a license to deal in the sale of new motor vehicles, $50,000; or</text> </level> <level label="ii"> <text>For an applicant for a license to deal in the sale of either used vehicles or trailers or semitrailers over 15 feet in length, $15,000.</text> </level> </level> </level> <level label="d"> <text>Notwithstanding subsection (c) of this section, if an applicant seeks a license for a location that is or that previously had been operated by a licensed dealer, the Administration may require a surety bond under subsection (b)(2) or (3) of this section based on the volume of sales at that location during a preceding license year.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-309" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <text>A license issued under this subtitle authorizes the licensed dealer to conduct the business of a dealer in the types of vehicles specified in it during the license year for which it is issued.</text> </section> <section article="gtr" article_name="Transportation" number="15-310" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <text>Each license shall state:</text> <level label="1"> <text>The type of vehicles in which the licensee may deal;</text> </level> <level label="2"> <text>The locations from which the licensee may deal in that type of vehicle;</text> </level> <level label="3"> <text>If it is a license to deal in new vehicles, the make of new vehicles in which the licensee may deal;</text> </level> <level label="4"> <text>As to a wholesale dealer, that the wholesale dealer may not sell a vehicle to or exchange vehicles with a retail buyer; and</text> </level> <level label="5"> <text>As to a wholesale dealer, that the wholesale dealer may not buy, sell, or exchange new vehicles.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-311" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>A contract for the sale of a vehicle by a dealer shall contain a clear statement of:</text> <level label="1"> <text>The principal amount charged for the vehicle;</text> </level> <level label="2"> <text>Any interest charged on the principal amount;</text> </level> <level label="3"> <text>Any fee charged under § 13–610 of this article;</text> </level> <level label="4"> <text>Any dealer processing charge, as defined in § 15–311.1 of this subtitle; and</text> </level> <level label="5"> <text>Any other charge made in connection with the sale of the vehicle.</text> </level> </level> <level label="b"> <text>In addition to the information required by subsection (a) of this section, a contract for the sale of a new vehicle shall include:</text> <level label="1"> <text>The base price of the vehicle;</text> </level> <level label="2"> <text>The manufacturer’s code or stock number for the vehicle; and</text> </level> <level label="3"> <text>A clear and specific description of each extra item and each extra charge not included in the base price of the vehicle ordered by the buyer.</text> </level> </level> <level label="c"> <text>If a licensee issues a stop sale directive applicable to a used vehicle manufactured by the licensee to a dealer that holds a franchise from the licensee and there are no remedies or parts available to fix the motor vehicle, the licensee shall compensate the dealer by:</text> <level label="1"> <text>Providing payment to the dealer at a rate of at least 1% per month or portion of a month of the value of the vehicle; or</text> </level> <level label="2"> <text>Compensating the dealer under a national program that is applicable to all dealers holding a franchise from the licensee for the dealer’s costs associated with the stop sale directive.</text> </level> </level> <level label="d"> <text>When a vehicle arrives for delivery, the dealer shall advise the buyer of any extra items ordered by the buyer that are not on the vehicle.</text> </level> <level label="e"> <text>When a vehicle arrives for delivery, the dealer shall advise the buyer of any extra items on the vehicle that the buyer did not order.</text> </level> <level label="f"> <text>When a vehicle arrives for delivery, the dealer shall advise the buyer of the cost of extra items described under subsections (d) and (e) of this section.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-311.1" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <level label="1"> <text>In this section, “dealer processing charge” includes an amount charged by a dealer for:</text> <level label="i"> <text>The preparation of written documentation of the transaction;</text> </level> <level label="ii"> <text>Obtaining the title and license plates for the vehicle;</text> </level> <level label="iii"> <text>Obtaining a release of lien;</text> </level> <level label="iv"> <text>Filing title documents with the Administration;</text> </level> <level label="v"> <text>Retaining documentation and records of the transaction;</text> </level> <level label="vi"> <text>Complying with federal or State privacy laws; or</text> </level> <level label="vii"> <text>Other administrative services concerning the sale of the vehicle.</text> </level> </level> <level label="2"> <text>“Dealer processing charge” does not include a charge to purchase or install tangible personal property on or in the vehicle, or to perform mechanical service on the vehicle.</text> </level> </level> <level label="b"> <level label="1"> <text>If a dealer charges a dealer processing charge, the charge:</text> <level label="i"> <text>Shall be reasonable;</text> </level> <level label="ii"> <text>May not exceed:</text> <level label="1"> <text>$200 for the period from July 1, 2011, through June 30, 2014;</text> </level> <level label="2"> <text>$300 for the period from July 1, 2014, through June 30, 2020;</text> </level> <level label="3"> <text>$500 for the period from July 1, 2020, through June 30, 2024; and</text> </level> <level label="4"> <text>$800 on and after July 1, 2024; and</text> </level> </level> <level label="iii"> <text>Shall reflect dealer expenses generally incurred for the services identified in subsection (a)(1) of this section.</text> </level> </level> <level label="2"> <text>A dealer shall provide a written disclosure of the services included in the dealer processing charge on request by the purchaser.</text> </level> </level> <level label="c"> <text>Any dealer processing charge or freight charge shall be disclosed to a purchaser as provided in this section.</text> </level> <level label="d"> <text>A contract for the sale of a vehicle shall contain a statement, in 12 point type or larger, on the contract form as follows:</text> <text>“Dealer processing charge (not required by law): $....”.</text> <text>“Freight charge: $ ....”.</text> </level> <level label="e"> <text>If a dealer advertises the price of a vehicle, the amount of any dealer processing charge and freight charge shall be included in the advertised price unless the dealer clearly and conspicuously discloses the amount of the dealer processing charge and freight charge in at least 10 point and bold font within reasonable proximity to the advertised price.</text> </level> <level label="f"> <text>The dealer shall attach its price statement to a window of the vehicle, next to any other price disclosure required by law. The dealer’s price statement shall state the total price for which the dealer is offering to sell the vehicle. The total price stated shall include any dealer processing charge, which shall be disclosed above the total price in at least 10 point type as “dealer processing charge (not required by law): $.....”. The total price may exclude only the taxes and title fees payable to the State.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-311.2" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Agent” means a business entity that is authorized by an obligor or a licensed vehicle dealer to sell a mechanical repair contract.</text> </level> <level label="3"> <level label="i"> <text>“Mechanical repair contract” means any agreement or contract sold by a licensed vehicle dealer, an obligor, or an agent under which the obligor agrees to perform over a fixed period of time, for a specific duration, and for a specific identifiable price, provided that the purchase of the contract is optional to the purchaser, any of the following services:</text> <level label="1"> <text>The repair, replacement, or maintenance of a motor vehicle, or the indemnification for the repair, replacement, or maintenance of a motor vehicle, for the operational or structural failure of the motor vehicle due to a defect in materials, workmanship, or normal wear and tear, with or without additional provisions for incidental payment of indemnity for services including towing, rental and emergency road service, and road hazard protection;</text> </level> <level label="2"> <text>The repair, replacement, or maintenance of a motor vehicle for the operational or structural failure of one or more parts or systems of the motor vehicle brought about by the failure of an additive product to perform as represented;</text> </level> <level label="3"> <text>The repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming into contact with road hazards, including potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps;</text> </level> <level label="4"> <text>The removal and repair of dents, dings, or creases on a motor vehicle using the process of paintless dent removal;</text> </level> <level label="5"> <text>The repair of chips or cracks in, or the replacement of, motor vehicle windshields as a result of damage caused by road hazards;</text> </level> <level label="6"> <text>The replacement of a motor vehicle key or key fob if the key or key fob becomes inoperable or is lost or stolen; or</text> </level> <level label="7"> <text>Other services or products that may be approved by the Insurance Commissioner if consistent with the provisions of this section.</text> </level> </level> <level label="ii"> <text>“Mechanical repair contract” includes extended warranties and extended service contracts.</text> </level> <level label="iii"> <text>“Mechanical repair contract” does not include:</text> <level label="1"> <text>Warranties under the Magnuson–Moss Warranty Act, 15 U.S.C. § 2301, et seq.;</text> </level> <level label="2"> <text>Contracts or agreements for regular maintenance only; or</text> </level> <level label="3"> <text>An agreement between a motor club, as defined in § 26–101 of the Insurance Article, and a member or subscriber of the motor club.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>“Obligor” means the person specified in a mechanical repair contract that is contractually obligated to perform the services set forth in the mechanical repair contract.</text> </level> <level label="ii"> <text>“Obligor” does not include an insurer that provides insurance coverage in accordance with subsection (b) of this section.</text> </level> </level> </level> <level label="b"> <level label="1"> <level label="i"> <text>An obligor under a mechanical repair contract shall maintain adequate insurance reserves, as defined by the Insurance Commissioner, for each such contract for the protection of the purchasing consumer.</text> </level> <level label="ii"> <text>A policy or policies of insurance providing coverage for all obligations and liabilities incurred by an obligor under the terms of a mechanical repair contract or, in the event of the obligor’s nonperformance, providing performance or payment on behalf of the obligor for all covered contractual obligations incurred by an obligor under a mechanical repair contract shall constitute adequate insurance reserves.</text> </level> </level> <level label="2"> <text>Each policy of insurance used to satisfy paragraph (1) of this subsection must be issued by:</text> <level label="i"> <text>An insurer authorized to do business in Maryland on an admitted or surplus lines basis; or</text> </level> <level label="ii"> <text>A risk retention group, as defined in § 25–101 of the Insurance Article, if that risk retention group is:</text> <level label="1"> <text>In full compliance with federal law;</text> </level> <level label="2"> <text>In good standing in its domiciliary jurisdiction; and</text> </level> <level label="3"> <text>Properly registered under State law.</text> </level> </level> </level> <level label="3"> <text>A purchaser of a mechanical repair contract shall be entitled to make a direct claim against the insurer or risk retention group issuing a policy or policies of insurance under this subsection upon failure of the obligor to pay any claim or make any refund or consideration due within 60 days after the proof is filed with the obligor.</text> </level> <level label="4"> <level label="i"> <text>At least 45 days before selling a mechanical repair contract, the obligor shall file the contract with the Insurance Commissioner along with evidence that the obligor maintains adequate insurance reserves as required under this section.</text> </level> <level label="ii"> <text>Except as provided in subparagraphs (iv) through (vii) of this paragraph, a filing required under this subsection is not subject to the approval of the Insurance Commissioner.</text> </level> <level label="iii"> <text>An obligor that is required to file a mechanical repair contract under this subsection shall pay a filing fee as provided in § 2–112(a)(10) of the Insurance Article.</text> </level> <level label="iv"> <text>The Commissioner may investigate and determine whether a mechanical repair contract filed under this paragraph is in compliance with this section.</text> </level> <level label="v"> <text>If, after a hearing, the Commissioner finds that a mechanical repair contract is not in compliance with this section, the Commissioner shall issue an order that requires that use of the mechanical repair contract be discontinued after a date specified in the order.</text> </level> <level label="vi"> <text>Pending a hearing, the Commissioner may issue an order that suspends use of a mechanical repair contract filed by an obligor if the Commissioner has reasonable cause to believe that:</text> <level label="1"> <text>The mechanical repair contract is in violation of this section;</text> </level> <level label="2"> <text>Unless the order of suspension is issued, purchasers of the mechanical repair contract will suffer irreparable harm;</text> </level> <level label="3"> <text>The harm that purchasers of the mechanical repair contract will suffer in the absence of the order of suspension outweighs the harm that the obligor would suffer if the order of suspension were issued; and</text> </level> <level label="4"> <text>The order of suspension will not cause substantial harm to the public.</text> </level> </level> <level label="vii"> <text>Unless the obligor waives a hearing, the Commissioner:</text> <level label="1"> <text>Shall hold a hearing within 15 business days after issuing the order of suspension; and</text> </level> <level label="2"> <text>Within 15 business days after the conclusion of the hearing, shall make a determination and issue an order as to whether the mechanical repair contract should be disapproved.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <text>An obligor shall register with the Insurance Commissioner each year.</text> </level> <level label="2"> <text>As part of registration, an obligor shall provide the following information for registration with the Commissioner:</text> <level label="i"> <text>The name, corporate address, and telephone number of the obligor;</text> </level> <level label="ii"> <text>The name, address, and telephone number of an individual designated to receive correspondence on behalf of the obligor; and</text> </level> <level label="iii"> <text>The name and address of a designated agent authorized to accept service on behalf of the obligor in the State.</text> </level> </level> <level label="3"> <text>An obligor shall notify the Commissioner within 30 days of any change to the registration information required under this subsection.</text> </level> <level label="4"> <text>An obligor that is required to register under this section shall pay an annual registration fee as provided in § 2–112(a)(12) of the Insurance Article.</text> </level> <level label="5"> <level label="i"> <text>Only a licensed vehicle dealer, an agent, or a registered obligor, or an employee of a licensed vehicle dealer, an agent, or a registered obligor may offer, sell, or negotiate a mechanical repair contract.</text> </level> <level label="ii"> <text>An obligor or a licensed vehicle dealer is liable for the actions of its agent when the agent is offering or selling a mechanical repair contract on behalf of the obligor or vehicle dealer.</text> </level> <level label="iii"> <text>The Commissioner may pursue an action against a person that violates this paragraph.</text> </level> </level> <level label="6"> <text>Subject to paragraph (7) of this subsection, the Commissioner shall register each obligor that meets the requirements of this section.</text> </level> <level label="7"> <text>The Commissioner may deny a registration to an applicant or refuse to renew, suspend, or revoke the registration of a registrant, after notice and an opportunity for a hearing under §§ 2–210 through 2–214 of the Insurance Article, if the applicant or registrant, or an officer, director, or employee of the applicant or registrant:</text> <level label="i"> <text>Makes a material misstatement or misrepresentation in an application for registration;</text> </level> <level label="ii"> <text>Fraudulently or deceptively obtains or attempts to obtain a registration for the applicant, the registrant, or another person;</text> </level> <level label="iii"> <text>Has been convicted of a felony or of a misdemeanor involving moral turpitude in connection with the sale, solicitation, negotiation, or administration of a mechanical repair contract;</text> </level> <level label="iv"> <text>Commits fraud or engages in illegal or dishonest activities in connection with the administration of a mechanical repair contract; or</text> </level> <level label="v"> <text>Has violated any provision of this section or a regulation adopted under this section.</text> </level> </level> <level label="8"> <text>Instead of, or in addition to, suspending or revoking a registration, the Commissioner may impose on the registrant a civil penalty of:</text> <level label="i"> <text>Not less than $100 but not exceeding $1,000 for each violation of this section; and</text> </level> <level label="ii"> <text>Not less than $100 but not exceeding $5,000 for each violation of this section committed by an agent or the agent’s employee while offering or selling a mechanical repair contract on behalf of the registrant.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>An obligor or a licensed vehicle dealer that uses an agent to sell a mechanical repair contract shall:</text> <level label="i"> <text>Maintain a list of its agents; and</text> </level> <level label="ii"> <text>Make the list available to the Insurance Commissioner on request.</text> </level> </level> <level label="2"> <text>An agent shall:</text> <level label="i"> <text>Maintain a list containing the names of each employee who is authorized to sell a mechanical repair contract; and</text> </level> <level label="ii"> <text>On request, provide the list to its obligor or licensed vehicle dealer within 10 business days from receipt of the request.</text> </level> </level> <level label="3"> <text>A list maintained under this subsection may be stored in an electronic format.</text> </level> </level> <level label="e"> <text>A mechanical repair contract shall be offered in addition to any express warranty originally included as part of the contract for sale of a new motor vehicle.</text> </level> <level label="f"> <text>A mechanical repair contract shall clearly and conspicuously set forth the date when the warranty begins.</text> </level> <level label="g"> <text>A mechanical repair contract shall clearly and conspicuously set forth the date or the odometer reading at which the warranty expires and the name and address of the insurer issuing the policy of insurance as described in subsection (b) of this section.</text> </level> <level label="h"> <text>The repair of a malfunction or defect covered under a mechanical repair contract shall include the cost of the teardown and diagnosing the malfunction or defect.</text> </level> <level label="i"> <text>The provisions of the Maryland Consumer Products Guaranty Act, Title 14, Subtitle 4 of the Commercial Law Article, apply to a mechanical repair contract sold in the State.</text> </level> <level label="j"> <text>The provisions of this section do not apply to mechanical repair contracts issued by the motor vehicle manufacturer or the distributor or a wholly owned subsidiary of the manufacturer or the distributor as defined in § 15–201 of this title.</text> </level> <level label="k"> <text>Notwithstanding subsection (j) of this section, licensed vehicle dealers and obligors who sell mechanical repair contracts shall have the same obligations as a seller under § 2–314 of the Commercial Law Article.</text> </level> <level label="l"> <text>A person that sells a mechanical repair contract may not, directly or indirectly, make a false, deceptive, or misleading statement with respect to:</text> <level label="1"> <text>The person’s affiliation with a motor vehicle manufacturer, manufacturer’s subsidiary, distributor, factory branch, or dealer;</text> </level> <level label="2"> <text>The person’s possession of information regarding the manufacturer’s original equipment warranty for a motor vehicle;</text> </level> <level label="3"> <text>The expiration of a manufacturer’s original equipment warranty for a motor vehicle; or</text> </level> <level label="4"> <text>A requirement that a motor vehicle owner register for a new mechanical repair contract with the person in order to maintain coverage under the owner’s current mechanical repair contract or the manufacturer’s original equipment warranty.</text> </level> </level> <level label="m"> <text>Except as expressly provided under this section, an obligor that complies with this section is not required to comply with any other provisions of the Insurance Article.</text> </level> <level label="n"> <text>Unless specifically described in subsection (a)(3) of this section, a mechanical repair contract may not provide indemnification for a loss caused by collision or by perils that are commonly covered by comprehensive or collision provisions of a motor vehicle insurance policy.</text> </level> <level label="o"> <text>In addition to any applicable disclosures required by the Maryland Consumer Products Guaranty Act, (Title 14, Subtitle 4 of the Commercial Law Article), a mechanical repair contract shall include the following disclosures:</text> <level label="1"> <text>The name, corporate address, and telephone number of the obligor and the mechanical repair contract seller; and</text> </level> <level label="2"> <text>The right of the purchaser of the mechanical repair contract to make a direct claim against the insurer or risk retention group issuing a policy or policies of insurance as provided in subsection (b)(3) of this section.</text> </level> </level> <level label="p"> <text>A person convicted of a violation of subsection (c)(5) of this section:</text> <level label="1"> <text>Is subject to imprisonment not exceeding 1 year or a fine not exceeding $5,000 or both; and</text> </level> <level label="2"> <text>May be required to pay restitution.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-311.3" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <level label="1"> <text>For a buyer purchasing a vehicle through dealer–arranged financing or leasing before approval of a third–party institution has been received, the following notice shall be provided to the buyer in a separate document and signed by the dealer and the buyer:</text> <text>“For finance or lease sales: The financing or lease agreement you entered into with the dealer is not final and must be approved by a third–party financial institution. If the terms are approved, the sale cannot be canceled. If the terms are not approved, the dealer must notify you in writing within 4 days of delivery of the vehicle to you, and you or the dealer may cancel this sale. If the sale is canceled, the vehicle delivered to you must be returned to the dealer in the same condition it was given to you, except for normal wear and tear, within 2 days of your receipt of a written notice of the third–party rejection. Unless you and the dealer agree on different terms, any down payment, titling fee, excise tax, dealer processing charge, or any other fee, tax, or charge associated with the transaction, and any trade–in vehicle, in the same condition in which the dealer received the vehicle, will be returned to you immediately and you may not be charged a fee for use of the vehicle that was the subject of the sale. You may not waive any of these rights. If you feel the dealer has failed to comply with the terms of this notice, you may contact the Motor Vehicle Administration or the Consumer Protection Division of the Office of the Attorney General.”.</text> </level> <level label="2"> <text>A copy of the signed notice shall be provided to the buyer before delivery of the vehicle to the buyer.</text> </level> </level> <level label="b"> <text>A dealer shall notify a buyer in writing if the terms of a financing or lease agreement between a dealer and a buyer are not approved by a third–party finance source within 4 days of delivery of a vehicle to the buyer.</text> </level> <level label="c"> <level label="1"> <text>If the terms of a financing or lease agreement between a dealer and a buyer are not approved by a third–party finance source, the buyer shall return the vehicle to the dealer in the same condition in which the buyer received the vehicle, except for normal wear and tear, within 2 days of receipt of the notice required under subsection (b) of this section.</text> </level> <level label="2"> <text>If a buyer does not return the vehicle to the dealer as required under paragraph (1) of this subsection, the dealer may repossess the vehicle in accordance with State law.</text> </level> </level> <level label="d"> <level label="1"> <text>A dealer and a buyer may agree on new financing or leasing terms on return of a vehicle under subsection (c)(1) of this section.</text> </level> <level label="2"> <level label="i"> <text>If a dealer and a buyer do not agree on new financing or leasing terms, the dealer or the buyer may cancel the sale.</text> </level> <level label="ii"> <text>If a sale is canceled under subparagraph (i) of this paragraph, the dealer:</text> <level label="1"> <text>Shall return to the buyer:</text> </level> <level label="A"> <text>Any trade–in vehicle in the same condition in which the dealer received the vehicle;</text> </level> <level label="B"> <text>Any down payment;</text> </level> <level label="C"> <text>The titling fee and excise tax paid under Title 13, Subtitle 8 of this article;</text> </level> <level label="D"> <text>Any dealer processing charge; and</text> </level> <level label="E"> <text>Any other fee, tax, or charge associated with the transaction; and</text> </level> <level label="2"> <text>May not charge the buyer a fee for the use of the vehicle.</text> </level> </level> </level> </level> <level label="e"> <text>A dealer shall maintain the required security for the vehicle under § 17–104(b) of this article until the terms of the financing or lease agreement between a buyer and a dealer are approved by a third–party finance source.</text> </level> <level label="f"> <text>A buyer may not waive the rights established under this section.</text> </level> <level label="g"> <text>A violation of this section by a dealer:</text> <level label="1"> <text>Is an unfair and deceptive trade practice under Title 13 of the Commercial Law Article; and</text> </level> <level label="2"> <text>Is subject to the enforcement and penalty provisions contained in Title 13 of the Commercial Law Article.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-312" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>A dealer or an agent or employee of a dealer may not permit any individual to road test a motor vehicle if he knows that the other individual does not have a license to drive of the appropriate class.</text> </level> <level label="b"> <text>A dealer or an agent or employee of a dealer may not make any material misrepresentation in obtaining a vehicle sales contract.</text> </level> <level label="c"> <text>A dealer or an agent or employee of a dealer may not commit any fraud in the execution of or any material alteration of a contract, power of attorney, or other document incident to a sales transaction.</text> </level> <level label="d"> <text>A dealer or an agent or employee of a dealer may not prepare or accept any promissory note or other evidence of indebtedness on a vehicle sales contract knowing that it requires the debtor to pay an amount greater than that agreed on in the written contract for the sale of the vehicle.</text> </level> <level label="e"> <text>A dealer or an agent or employee of a dealer may not willfully fail to perform, without justification, any vehicle sales contract.</text> </level> <level label="f"> <text>A dealer or an agent or employee of a dealer may not materially deviate from or disregard, without the consent of the buyer, any of the original terms of the contract.</text> </level> <level label="g"> <text>A dealer or an agent or employee of a dealer may not willfully fail to comply with the terms of a warranty or guarantee.</text> </level> <level label="h"> <text>A dealer or an agent or employee of a dealer may not rent a dealer registration plate issued by the Administration.</text> </level> <level label="i"> <text>A person convicted of a violation of this section is subject to imprisonment not exceeding 2 months or a fine not exceeding $500 or both.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-313" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>A dealer or an agent or employee of a dealer may not use any advertisement that is in any way false, deceptive, or misleading.</text> </level> <level label="b"> <text>A dealer or an agent or employee of a dealer may not by any means advertise or offer to the public any vehicle without intent to sell it as advertised or offered.</text> </level> <level label="c"> <level label="1"> <text>A dealer or an agent or employee of a dealer:</text> <level label="i"> <text>May not state the purchase price of a vehicle in an advertisement unless the price is the full delivered purchase price of the vehicle, excluding only taxes, title fees, and any freight or dealer processing charge disclosed in accordance with § 15–311.1 of this subtitle; and</text> </level> <level label="ii"> <text>Shall print the full delivered purchase price in a vehicle advertisement in the largest font used in the advertisement to provide any information related to the price of the vehicle.</text> </level> </level> <level label="2"> <text>The advertisement of a leased vehicle by a dealer is governed under Title 14, Subtitle 20 of the Commercial Law Article.</text> </level> </level> <level label="d"> <level label="1"> <text>A dealer or an agent or employee of a dealer may not place on a vehicle an insignia, logo, or other plate that advertises the name of the dealer, unless:</text> <level label="i"> <text>The contract of sale for the vehicle contains a notice of the rights of the buyer described in this subsection; and</text> </level> <level label="ii"> <text>The buyer of the vehicle consents to the placement of the insignia, logo, or other plate on the vehicle.</text> </level> </level> <level label="2"> <text>A dealer or an agent or employee of a dealer may enter into an agreement with a buyer of a vehicle to compensate the buyer in exchange for the buyer’s consent to the placement on the vehicle of an insignia, logo, or other plate that advertises the name of the dealer.</text> </level> <level label="3"> <text>If a dealer or an agent or employee of a dealer places an insignia, logo, or other plate that advertises the name of the dealer without obtaining a buyer’s consent, the dealer shall, at the request of the buyer, remove the advertising and make all repairs necessary to restore the vehicle to its original appearance at no charge to the buyer.</text> </level> </level> <level label="e"> <text>A dealer or an agent or employee of a dealer may not sell a Class A (passenger) or Class M (multipurpose) vehicle that has a maximum speed capability of more than 25 miles per hour but less than 55 miles per hour unless the dealer:</text> <level label="1"> <text>Permanently affixes an emblem to the vehicle in accordance with § 21–805.1 of this article; and</text> </level> <level label="2"> <text>Informs the buyer in writing that the vehicle may be driven lawfully only on highways on which the speed capability of the vehicle exceeds the posted maximum speed limit for the highway by at least 5 miles per hour.</text> </level> </level> <level label="f"> <text>A person convicted of a violation of this section is subject to imprisonment not exceeding 2 months or a fine not exceeding $500 or both.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-314" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>A dealer or an agent or employee of a dealer may not misrepresent any material fact in obtaining a license.</text> </level> <level label="b"> <text>A dealer or an agent or employee of a dealer may not conduct a dealership in any name other than the one in which the dealer is licensed.</text> </level> <level label="c"> <text>A dealer or an agent or employee of a dealer may not willfully fail to notify the Administration of any change of ownership, management, business name, or location or of the employment of vehicle salesmen, as required by this title.</text> </level> <level label="d"> <text>A dealer or an agent or employee of a dealer may not do any vehicle sales business with or through any person required to be licensed under this title if he knows that the person is not licensed.</text> </level> <level label="e"> <text>A dealer or an agent or employee of a dealer may not sell any new motor vehicle, or new two–stage motor vehicle unless the manufacturer or distributor of the vehicle is licensed as required by this title.</text> </level> <level label="f"> <text>A dealer or an agent or employee of a dealer may not willfully fail to comply with any rule, regulation, or lawful order adopted by the Administration under this title.</text> </level> <level label="g"> <text>A dealer or an agent or employee of a dealer may not willfully violate any of the dealer licensing laws of this State.</text> </level> <level label="h"> <text>A person convicted of a violation of this section is subject to imprisonment not exceeding 2 months or a fine not exceeding $500 or both.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-315" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="3" subtitle_name="Dealers"> <level label="a"> <text>In addition to the other grounds specified in Subtitle 1 of this title for refusal, suspension, or revocation of a license, the Administration may refuse to grant a license under this subtitle to any person and may suspend, revoke, or refuse to renew the license of any person if it finds that:</text> <level label="1"> <text>The person, his management personnel, or any other person who has a direct or indirect financial interest in the dealership is untrustworthy, lacks competence, or has been convicted by final judgment in any court of a crime of moral turpitude;</text> </level> <level label="2"> <text>The vehicle sales transactions of the person have been marked by a practice of failure to perform contracts or by fraud or bad faith;</text> </level> <level label="3"> <text>The person or the manufacturer or distributor of the vehicles in which the person deals is not in compliance with the surety bond requirements of § 15-205 of this title; or</text> </level> <level label="4"> <text>The person has failed to comply with any of the provisions of the Maryland Vehicle Law relating to the registration of vehicles, certificates of title, and the sale of vehicles.</text> </level> </level> <level label="b"> <text>As to any person licensed under this subtitle, instead of or in addition to revocation, suspension, or refusal to renew a license under this section, the Administrator may order the licensee to pay a fine not exceeding $1,000 for each violation of this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-401" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <text>In this subtitle, “license” means a vehicle salesman’s license issued by the Administration under this subtitle.</text> </section> <section article="gtr" article_name="Transportation" number="15-402" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <level label="a"> <text>Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not act as a vehicle salesman unless the person is licensed by the Administration under this subtitle.</text> </level> <level label="b"> <text>Any person who has been refused a vehicle salesman’s license in this State or whose vehicle salesman’s license is revoked or suspended may not conduct the business of a vehicle salesman under any license, permit, or registration certificate issued by any other jurisdiction.</text> </level> <level label="c"> <text>A person convicted of a violation of this section is subject to:</text> <level label="1"> <text>For a first offense, imprisonment not exceeding 6 months or a fine not exceeding $1,000 or both; and</text> </level> <level label="2"> <text>For a second or subsequent offense, imprisonment not exceeding 1 year or a fine not exceeding $2,000 or both.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-403" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <text>A license may not be issued under this subtitle to a partnership, corporation, or other entity. It only may be applied for by and issued to an individual.</text> </section> <section article="gtr" article_name="Transportation" number="15-404" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <level label="a"> <text>A person may not be licensed under this subtitle unless the person:</text> <level label="1"> <text>Is a licensed dealer; or</text> </level> <level label="2"> <text>Is employed as a vehicle salesman by a licensed dealer.</text> </level> </level> <level label="b"> <text>Unless the applicant is himself a licensed dealer, each application for a license shall contain or be accompanied by the written statement of the licensed dealer by whom the applicant is or will be employed, certifying that the applicant has been accepted by the licensed dealer for employment as a vehicle salesman. The written statement shall be signed on behalf of the licensed dealer by a person authorized under this title to sign an application for a dealer’s license.</text> </level> <level label="c"> <text>If a dealer makes a certified statement under this section, the dealer immediately shall notify the Administration of any termination of employment of the salesman.</text> </level> <level label="d"> <text>The notification required under subsection (c) of this section shall be made on the form that the Administration requires.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-405" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <text>In addition to the information required under Subtitle 1 of this title, each application for a license shall include:</text> <level label="1"> <text>The name and business address of the licensed dealer by whom the applicant is or will be employed; or</text> </level> <level label="2"> <text>A statement that the applicant is himself a licensed dealer.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-406" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <level label="a"> <text>Except as otherwise provided in this title, each licensee shall pay an annual fee to the Administration for each license year or part of a license year for which the license is issued.</text> </level> <level label="b"> <text>The annual license fee shall be established by the Administration.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-408" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <text>A license issued under this subtitle authorizes the licensee to be a vehicle salesman for a licensed dealer during the license year for which it is issued.</text> </section> <section article="gtr" article_name="Transportation" number="15-409" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <level label="a"> <text>Each license shall state the name of the licensed dealer by whom the licensee is employed, as specified in the application for the license.</text> </level> <level label="b"> <text>A licensed vehicle salesman may not act as a vehicle salesman for any person other than the licensed dealer named in the salesman’s license.</text> </level> <level label="c"> <text>A licensed vehicle salesman may act as a vehicle salesman for any dealership that is at least 60 percent owned by the licensed dealer named in the salesman’s license.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-410" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <text>A contract for the sale of a vehicle by a vehicle salesman shall comply with the requirements of § 15-311 of this title on contracts by a dealer.</text> </section> <section article="gtr" article_name="Transportation" number="15-411" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <level label="a"> <text>A vehicle salesman may not fail to account for and remit to his dealership any payment received by him in connection with a vehicle sales contract.</text> </level> <level label="b"> <text>A vehicle salesman may not do any act that a dealer is prohibited from doing under § 15–312 of this title as to vehicle sales transactions.</text> </level> <level label="c"> <text>A vehicle salesman may not do any act that a dealer is prohibited from doing under § 15–313 of this title on prohibited advertising practices.</text> </level> <level label="d"> <text>A vehicle salesman may not misrepresent any material fact in obtaining a license.</text> </level> <level label="e"> <text>A vehicle salesman may not do any vehicle sales business with or through any person required to be licensed under this title if he knows that the person is not licensed.</text> </level> <level label="f"> <text>A vehicle salesman may not willfully fail to comply with any rule, regulation, or lawful order adopted by the Administration under this title.</text> </level> <level label="g"> <text>A person convicted of a violation of this section is subject to imprisonment not exceeding 2 months or a fine not exceeding $500 or both.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-412" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="4" subtitle_name="Vehicle Salesmen"> <text>In addition to the other grounds specified in Subtitle 1 of this title for refusal, suspension, or revocation of a license, the Administration may refuse to grant a license under this subtitle to any person and may suspend, revoke, or refuse to renew the license of any person if it finds that:</text> <level label="1"> <text>The person has been convicted by final judgment in any court of a crime of moral turpitude; or</text> </level> <level label="2"> <text>The vehicle sales transactions of the person have been marked by a practice of failure to perform contracts or by fraud or bad faith.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-501" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Automotive dismantler and recycler” means a person in the business of:</text> <level label="i"> <text>Dismantling, destroying, or scrapping any vehicle for the purpose of reselling any of its usable parts; or</text> </level> <level label="ii"> <text>Otherwise acquiring vehicles for the benefit of their parts or the materials in them.</text> </level> </level> <level label="2"> <text>Notwithstanding any provision to the contrary, any reference to a wrecker in any statute, rule, or regulation shall apply to an automotive dismantler and recycler.</text> </level> </level> <level label="c"> <text>“License” means an automotive dismantler’s or recycler’s or scrap processor’s license issued by the Administration under this subtitle.</text> </level> <level label="d"> <text>“Scrap processor” means a person in a business:</text> <level label="1"> <text>That has facilities for processing iron, steel, and nonferrous scrap metal; and</text> </level> <level label="2"> <text>The principal product of which is scrap iron, scrap steel, and nonferrous scrap for sale only for resmelting purposes.</text> </level> </level> <level label="e"> <text>“Vehicle” means any vehicle, or the body or chassis of any vehicle, that is to be dismantled, destroyed, or scrapped.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-502" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <level label="a"> <text>Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not conduct the business of an automotive dismantler and recycler or a scrap processor, or engage in the business of acquiring or offering to purchase or remove vehicles which are to be dismantled in whole or in part by that person for the sale of usable parts, unless the person is licensed by the Administration under this subtitle.</text> </level> <level label="b"> <level label="1"> <text>Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not advertise for the purchase, towing, or removal of junk or abandoned vehicles unless the person is licensed by the Administration under this subtitle.</text> </level> <level label="2"> <text>Any advertisement for the purchase, towing, or removal of junk or abandoned vehicles by a licensee under this subtitle shall include the license number of the licensee.</text> </level> </level> <level label="c"> <text>Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not store on any private property for more than 30 days any vehicle that is to be dismantled, destroyed, or scrapped, unless the person is an automotive dismantler and recycler or a scrap processor licensed under this subtitle.</text> </level> <level label="d"> <text>This section does not prohibit an unlicensed person from purchasing, transporting, towing, or removing a vehicle to a licensed automotive dismantler and recycler or a licensed scrap processor for dismantling, destroying, or scrapping.</text> </level> <level label="e"> <text>A person convicted of a violation of subsection (a) of this section is subject to:</text> <level label="1"> <text>For a first offense, imprisonment not exceeding 6 months or a fine not exceeding $1,000 or both; and</text> </level> <level label="2"> <text>For a second or subsequent offense, imprisonment not exceeding 1 year or a fine not exceeding $2,000 or both.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-503" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <level label="a"> <text>A person may not be licensed under this subtitle unless:</text> <level label="1"> <text>The business to be conducted under the license is conducted from a building that is adequate and appropriate for the business;</text> </level> <level label="2"> <text>That business has a storage area large enough for at least 25 vehicles; and</text> </level> <level label="3"> <text>At the fixed location from which the business is conducted, as specified in the application, there is a substantial and legible sign:</text> <level label="i"> <text>That advertises the type of business conducted at the location; and</text> </level> <level label="ii"> <text>That is placed in a way so as to be seen readily by the public.</text> </level> </level> </level> <level label="b"> <text>A person may not be licensed as a scrap processor unless the person maintains the following equipment suitable for processing vehicle scrap:</text> <level label="1"> <text>A hydraulic baler and shears;</text> </level> <level label="2"> <text>A shredder; or</text> </level> <level label="3"> <text>Any other suitable equipment that the Administration requires by rule or regulation.</text> </level> </level> <level label="c"> <text>A person licensed under this subtitle at a fixed location, as specified in the application, on or before December 31, 1985, and the person’s successors or assigns, may not be refused permission to operate at the fixed location solely because any portion of the fixed location is within the 100-year floodplain of waters of the State as defined in § 8-101 of the Natural Resources Article.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-504" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <text>The Administration shall submit a copy of each application for a license under this subtitle to the Maryland Department of Health, for its comments on matters relating to air pollution and health.</text> </section> <section article="gtr" article_name="Transportation" number="15-505" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <level label="a"> <text>Each licensee shall pay an annual fee to the Administration for each license year or part of a license year for which the license is issued.</text> </level> <level label="b"> <text>The annual license fee shall be established by the Administration.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-506" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <text>A license issued under this subtitle authorizes the licensee to conduct the business of an automotive dismantler and recycler or scrap processor, as the case may be, during the license year for which it is issued.</text> </section> <section article="gtr" article_name="Transportation" number="15-507" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <level label="a"> <text>Except as provided in subsection (c) of this section, any person who transfers a vehicle to an automotive dismantler and recycler or scrap processor shall execute an assignment and warranty of title on:</text> <level label="1"> <text>The certificate of title issued for the vehicle by this State or any other state; or</text> </level> <level label="2"> <text>Any other documentary evidence of ownership acceptable to the Administration.</text> </level> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, any person who transfers a vehicle to an automotive dismantler and recycler or scrap processor shall deliver the certificate of title or other documentary evidence of ownership to the automotive dismantler and recycler or scrap processor at the time of the transfer.</text> </level> <level label="c"> <text>If a person holds an assigned certificate of title or any other documentary evidence of ownership acceptable to the Administration, the person:</text> <level label="1"> <text>May transfer the vehicle to an automotive dismantler and recycler or scrap processor by endorsing a reassignment and warranty of title on the forms that the Administration requires; and</text> </level> <level label="2"> <text>Need not obtain a certificate of title in the person’s own name.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-509" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <level label="a"> <level label="1"> <text>If an automotive dismantler and recycler or scrap processor takes possession of a vehicle from a person other than the owner of the vehicle and does not receive a certificate of title, a certificate of authority under § 25–209 of this article, or other documentary evidence of ownership acceptable to the Administration, the automotive dismantler and recycler or scrap processor shall comply with this section.</text> </level> <level label="2"> <text>This section does not apply to a vehicle towed from residential or commercial property under a continuing contract to tow unauthorized vehicles, for which a certificate of authority is required to be obtained under § 25–209 of this article.</text> </level> </level> <level label="b"> <level label="1"> <text>As soon as reasonably possible and within 7 days after it takes a vehicle into possession from a person other than the owner of the vehicle, an automotive dismantler and recycler or scrap processor shall send a notice, by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to:</text> <level label="i"> <text>The last known registered owner of the vehicle; and</text> </level> <level label="ii"> <text>Each secured party, as shown on the records of the Administration.</text> </level> </level> <level label="2"> <text>The notice shall:</text> <level label="i"> <text>State that the vehicle has been taken into custody;</text> </level> <level label="ii"> <text>Describe the year, make, model, and vehicle identification number of the vehicle;</text> </level> <level label="iii"> <text>Give the location of the facility where the vehicle is held;</text> </level> <level label="iv"> <text>Inform the owner and secured party of the owner’s and secured party’s right to reclaim the vehicle within 11 working days after the date of the notice, on payment of all towing, recovery, and storage charges owed to the automotive dismantler and recycler or scrap processor resulting from taking or holding the vehicle; and</text> </level> <level label="v"> <text>State that the failure of the owner or secured party to exercise this right in the time provided is:</text> <level label="1"> <text>A waiver by the owner or secured party of all of the owner’s or secured party’s right, title, and interest in the vehicle; and</text> </level> <level label="2"> <text>A consent to the dismantling, destroying, or scrapping of the vehicle.</text> </level> </level> </level> </level> <level label="c"> <text>If the automotive dismantler and recycler or scrap processor receives with the vehicle documentary proof that the notification procedures of subsection (b) of this section already have been completed by another person before taking possession of the vehicle or that the vehicle is being received from the owner of the vehicle or an agent of the owner, the automotive dismantler and recycler or scrap processor may accept documentation as to notice or ownership as proof of compliance and is not required to repeat provision of this notification.</text> </level> <level label="d"> <text>In addition to documentation of notice under subsections (b) and (c) of this section, an automotive dismantler and recycler or scrap processor shall obtain from a person who provides the vehicle:</text> <level label="1"> <text>An affidavit in a form approved by the Administration signed under penalty of perjury by the person providing the vehicle;</text> </level> <level label="2"> <text>A copy of the driver’s license of the person who provides the vehicle;</text> </level> <level label="3"> <text>Any proof of ownership documents acceptable to the Administration, if available; and</text> </level> <level label="4"> <text>If the vehicle is transported by a tow vehicle, a copy of the registration of the tow vehicle.</text> </level> </level> <level label="e"> <text>An affidavit under subsection (d) of this section shall include:</text> <level label="1"> <text>A statement that the person providing the vehicle has the lawful right to possess the vehicle and the basis of that right;</text> </level> <level label="2"> <text>A statement that, except as provided in § 25–209 of this article, the vehicle may not be retitled and may only be dismantled, destroyed, or scrapped;</text> </level> <level label="3"> <text>A description of the vehicle, including year, make, model, color, and vehicle identification number;</text> </level> <level label="4"> <text>The name, address, driver’s license number, and signature of the person providing the vehicle;</text> </level> <level label="5"> <text>An acknowledgement that:</text> <level label="i"> <text>The form is being signed under penalty of perjury; and</text> </level> <level label="ii"> <text>The penalties established under subsection (k) of this section apply;</text> </level> </level> <level label="6"> <text>The date the vehicle is provided to the automotive dismantler and recycler or scrap processor;</text> </level> <level label="7"> <text>The name, address, and State–issued license number of the automotive dismantler and recycler or scrap processor acquiring the vehicle; and</text> </level> <level label="8"> <text>The printed name, title, and signature of the person accepting the vehicle.</text> </level> </level> <level label="f"> <text>The automotive dismantler and recycler or scrap processor shall keep and make available for inspection by a law enforcement agency for 3 years under procedures adopted by the Administration by regulation:</text> <level label="1"> <text>All documentation of notice provided under subsection (b) or (c) of this section; and</text> </level> <level label="2"> <text>All additional documentation required to be obtained or kept on file under subsection (d) of this section.</text> </level> </level> <level label="g"> <text>An automotive dismantler and recycler or scrap processor may not accept a vehicle that is transported by a tow truck unless the tow truck is registered under § 13–920 of this article.</text> </level> <level label="h"> <text>On receipt of a vehicle, an automotive dismantler and recycler or scrap processor shall comply with procedures for notification, reporting, and document retention as established by the Administration by regulation.</text> </level> <level label="i"> <text>The automotive dismantler and recycler or scrap processor takes unencumbered title to the vehicle for the purpose of dismantling, recycling, or scrap processing, without having to obtain a certificate of title for it in his own name, if:</text> <level label="1"> <text>The automotive dismantler and recycler or scrap processor has complied with this section; and</text> </level> <level label="2"> <text>The vehicle has not been recovered or reclaimed, before the end of the 11–working day period specified in the notice, by the owner, secured party, or other person entitled to its possession.</text> </level> </level> <level label="j"> <text>A person may not knowingly make a false statement on an affidavit of lawful possession under this section.</text> </level> <level label="k"> <text>A person who violates subsection (j) of this section is guilty of a felony and on conviction is subject to imprisonment not exceeding 10 years or a fine not exceeding $1,000 or both.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-511" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <level label="a"> <text>Each automotive dismantler and recycler and each scrap processor shall keep an accurate and complete record of all vehicles acquired in the person’s business.</text> </level> <level label="b"> <text>The records shall contain, for each vehicle acquired:</text> <level label="1"> <text>The name and address of the person from whom the vehicle was acquired;</text> </level> <level label="2"> <text>The date on which it was acquired;</text> </level> <level label="3"> <text>Documentary evidence acceptable to the Administration of ownership of the vehicle;</text> </level> <level label="4"> <text>Any information required under § 17–1009(b) of the Business Regulation Article; and</text> </level> <level label="5"> <text>Any other information that the Administration requires.</text> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (3) of this subsection, within 30 days after an automotive dismantler and recycler or scrap processor acquires title to a vehicle, the automotive dismantler and recycler or scrap processor shall, electronically and in a form prescribed by the Administration, notify the Administration or the Administration’s designee of the acquisition.</text> </level> <level label="2"> <text>Immediately after giving the notice required under paragraph (1) of this subsection, the automotive dismantler and recycler or scrap processor may dispose of the vehicle for dismantling or scrapping.</text> </level> <level label="3"> <text>Paragraph (1) of this subsection does not apply to a vehicle acquired through a salvage certificate issued by the Administration or by the appropriate government agency of another state.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-513" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <level label="a"> <text>An automotive dismantler and recycler may not store vehicles at his place of business at a density of more than 250 vehicles for any 1 acre if the vehicles are not crushed.</text> </level> <level label="b"> <level label="1"> <text>An automotive dismantler and recycler may not store vehicles at the automotive dismantler and recycler’s place of business at a density of more than 500 vehicles per acre if the vehicles are crushed.</text> </level> <level label="2"> <text>Crushed vehicles may not be stored on more than 1 acre per place of business.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-514" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <level label="a"> <text>In addition to the other grounds specified in Subtitle 1 of this title for refusal, suspension, or revocation of a license, the Administration may refuse to grant a license under this subtitle to any person and may suspend, revoke, or refuse to renew the license of any person if it finds that the person has violated any applicable rule or regulation of the Maryland Department of Health.</text> </level> <level label="b"> <text>As to any person licensed under this subtitle, instead of or in addition to revocation, suspension, or refusal to renew a license under this section, the Administration may order the licensee to pay a fine not exceeding $1,000 for each violation of this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-515" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="5" subtitle_name="Automotive Dismantlers and Recyclers and Scrap Processors"> <text>Except as otherwise provided in this subtitle, a person convicted of a violation of this subtitle is subject to imprisonment not exceeding 6 months or a fine not exceeding $500 or both.</text> </section> <section article="gtr" article_name="Transportation" number="15-601" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="6" subtitle_name="Title Service Agents"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“License” means a title service agent’s license issued by the Administration under this subtitle.</text> </level> <level label="c"> <level label="1"> <text>“Title service agent” means any person in the business of physically or electronically transporting to and from the Administration certificates of title, registrations, drivers’ licenses, certified copies of records, and other related documents.</text> </level> <level label="2"> <text>“Title service agent” does not include a licensed dealer or employee of a licensed dealer who conducts the activities described in paragraph (1) of this subsection only on behalf of the business of that dealer.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-602" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="6" subtitle_name="Title Service Agents"> <text>Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not conduct the business of a title service agent unless the person is licensed by the Administration under this subtitle.</text> </section> <section article="gtr" article_name="Transportation" number="15-603" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="6" subtitle_name="Title Service Agents"> <level label="a"> <text>Each licensee shall pay an annual fee to the Administration for each license year or part of a license year for which the license is issued.</text> </level> <level label="b"> <text>The annual license fee shall be established by the Administration.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-604" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="6" subtitle_name="Title Service Agents"> <level label="a"> <text>This section does not apply to:</text> <level label="1"> <text>A licensed dealer who is in compliance with the surety bond requirement of Subtitle 3 of this title; or</text> </level> <level label="2"> <text>A motor club that is in compliance with the surety bond requirement of § 26–204 of the Insurance Article.</text> </level> </level> <level label="b"> <text>After the Administration notifies an applicant of the approval of an application and before the Administration issues a license, the applicant shall file with the Administration a surety bond in the form and with the surety that the Administration approves.</text> </level> <level label="c"> <text>The amount of the surety bond shall be $50,000.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-605" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="6" subtitle_name="Title Service Agents"> <text>A license issued under this subtitle authorizes the licensee to conduct the business of a title service agent during the license year for which it is issued.</text> </section> <section article="gtr" article_name="Transportation" number="15-606" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="6" subtitle_name="Title Service Agents"> <level label="a"> <text>A title service agent or an agent or employee of a title service agent may not make any material misrepresentation on any form of the Administration.</text> </level> <level label="b"> <text>A title service agent or an agent or employee of a title service agent may not misrepresent any material fact in obtaining a license.</text> </level> <level label="c"> <text>A title service agent or an agent or employee of a title service agent may not willfully fail to notify the Administration of any change in the ownership, management, name, or location of the business conducted under the license.</text> </level> <level label="d"> <text>A title service agent or an agent or employee of a title service agent may not fail to account for and remit to the Administration any fees received by him for any certificates of title, registrations, drivers’ licenses, certified copies of records, or other related documents.</text> </level> <level label="e"> <text>A title service agent or an agent or employee of a title service agent may not conduct any title service agency business with or through any person required to be licensed under this title if he knows that the person is not licensed.</text> </level> <level label="f"> <text>A title service agent or an agent or employee of a title service agent may not sell, offer for sale, advertise, or facilitate the sale of a motor vehicle registration issued by another jurisdiction to a resident of the State.</text> </level> <level label="g"> <text>A title service agent or an agent or employee of a title service agent may not willfully violate any provision of the Maryland Vehicle Law that relates to the business of a title service agent.</text> </level> <level label="h"> <text>A title service agent or an agent or employee of a title service agent may not willfully fail to comply with any rule, regulation, or lawful order adopted by the Administration under this title.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-607" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="6" subtitle_name="Title Service Agents"> <level label="a"> <text>In addition to the other grounds specified in Subtitle 1 of this title for refusal, suspension, or revocation of a license, the Administration may refuse to grant a license under this subtitle to any person and may suspend, revoke, or refuse to renew the license of any person if it finds that:</text> <level label="1"> <text>The person, his management personnel, or any other person who has a direct or indirect financial interest in the title service agency is untrustworthy, lacks competence, or has been convicted by final judgment in any court of a crime of moral turpitude; or</text> </level> <level label="2"> <text>The title service agency transactions of the person with the Administration have been marked by fraud or bad faith.</text> </level> </level> <level label="b"> <text>As to any person licensed under this subtitle, instead of or in addition to revocation, suspension, or refusal to renew a license under this section, the Administration may order the licensee to pay a fine not exceeding $1,000 for each violation of this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-608" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="6" subtitle_name="Title Service Agents"> <level label="a"> <text>A title service agent that, on behalf of the Administration, collects and remits the vehicle excise tax imposed under Title 13, Subtitle 8 of this article may keep the lesser of $12 per vehicle or 0.6% of the gross excise tax that the title service agent collects.</text> </level> <level label="b"> <text>Each title service agent that collects any tax or fee required for titling a vehicle shall:</text> <level label="1"> <text>Keep complete and accurate records of each taxable sale, together with a record of the tax collected on the sale;</text> </level> <level label="2"> <text>Keep copies of every invoice, bill of sale, and other pertinent documents and records, in the form that the Administration requires; and</text> </level> <level label="3"> <text>Preserve these records in original form for at least 3 years, unless the Administration consents in writing to their earlier destruction or, by order, requires that they be kept for a longer period.</text> </level> </level> <level label="c"> <text>Each title service agent that collects any tax or fee required for titling a vehicle shall, during business hours, allow any representative of the Administration and any police officer full access to the documents and records required to be kept under subsection (b) of this section.</text> </level> <level label="d"> <text>If the Administration finds that the records of a title service agent are inadequate or incorrect and that the amount of excise tax collected for the Administration on these sales cannot be determined accurately from the records:</text> <level label="1"> <text>The Administration shall determine the taxable sales facilitated by the title service agent for the period involved and compute the tax from the best information available; and</text> </level> <level label="2"> <text>The determination and computation of the Administration are prima facie correct.</text> </level> </level> <level label="e"> <level label="1"> <text>If, under subsection (d) of this section, the Administration determines the taxable sales of vehicles facilitated by the title service agent and computes the tax due, the Administration shall:</text> <level label="i"> <text>Levy an assessment against the title service agent for the deficiency, interest, and penalties in the manner authorized in §§ 13–401, 13–601, and 13–701 of the Tax – General Article; and</text> </level> <level label="ii"> <text>Notify the title service agent of the tax due and the amount of the deficiency assessment.</text> </level> </level> <level label="2"> <text>If the title service agent fails to pay the tax and assessment within 10 days after receiving the notice from the Administration, the Administration may levy, in addition to the tax and assessment, a penalty equal to 25% of the tax due.</text> </level> </level> <level label="f"> <text>If a title service agent fails to keep any records of sales of vehicles, the Administration may compute the tax due as provided in § 13–407 of the Tax – General Article.</text> </level> <level label="g"> <text>All amounts received from a title service agent under this section shall be credited:</text> <level label="1"> <text>First, to any penalty and interest accrued under this section; and</text> </level> <level label="2"> <text>Then, to the tax due.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-701" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="7" subtitle_name="Drivers' Schools"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Drivers’ school” means, except as provided in paragraph (2) of this subsection, any person in the business of giving instruction in the driving of motor vehicles.</text> </level> <level label="2"> <text>“Drivers’ school” does not include:</text> <level label="i"> <text>Any public school or other noncollegiate educational institution giving instruction in the driving of motor vehicles during its normal school hours and not charging a fee for this instruction; or</text> </level> <level label="ii"> <text>Any college, university, or other institution of postsecondary education approved by the Maryland Higher Education Commission.</text> </level> </level> </level> <level label="c"> <text>“License” means a drivers’ school license issued by the Administration under this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-702" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="7" subtitle_name="Drivers' Schools"> <text>Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not conduct a drivers’ school unless the person is licensed by the Administration under this subtitle.</text> </section> <section article="gtr" article_name="Transportation" number="15-703" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="7" subtitle_name="Drivers' Schools"> <text>Each application for a license shall be accompanied by a nonrefundable application fee established by the Administration.</text> </section> <section article="gtr" article_name="Transportation" number="15-704" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="7" subtitle_name="Drivers' Schools"> <level label="a"> <text>Each licensee shall pay an annual license fee to the Administration for each license year for which the license is issued.</text> </level> <level label="b"> <text>The annual license fee shall be established by the Administration.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-705" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="7" subtitle_name="Drivers' Schools"> <level label="a"> <text>After the Administration notifies an applicant of the approval of an application and before the Administration issues a license, the applicant shall file with the Administration a surety bond in the form and with the surety that the Administration approves.</text> </level> <level label="b"> <text>The amount of the surety bond shall be $40,000.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-706" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="7" subtitle_name="Drivers' Schools"> <text>Each applicant for a license shall furnish and maintain with the Administration, as to each of its vehicles used for instruction, proof of financial responsibility in the form and amount that the Administration requires.</text> </section> <section article="gtr" article_name="Transportation" number="15-707" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="7" subtitle_name="Drivers' Schools"> <level label="a"> <text>A license issued under this subtitle authorizes the licensee to conduct a drivers’ school during the license year for which the license is issued.</text> </level> <level label="b"> <text>The license shall be displayed conspicuously at the location from which the business of the licensee is conducted.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-708" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="7" subtitle_name="Drivers' Schools"> <text>Each licensee shall maintain all vehicles used for instruction in the condition that the Administration requires.</text> </section> <section article="gtr" article_name="Transportation" number="15-709" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="7" subtitle_name="Drivers' Schools"> <text>A drivers’ school may not:</text> <level label="1"> <text>Provide or offer to provide any instruction in driving unless the individual who gives the instruction is a driving instructor employed by it; or</text> </level> <level label="2"> <text>Employ any individual as a driving instructor unless that individual:</text> <level label="i"> <text>Is licensed to drive under Title 16 of this article;</text> </level> <level label="ii"> <text>Has completed the instructor certification program approved by the Administration; and</text> </level> <level label="iii"> <text>Is licensed as a driving instructor under Subtitle 8 of this title.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-710" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="7" subtitle_name="Drivers' Schools"> <level label="a"> <text>In addition to the other grounds specified in Subtitle 1 of this title for refusal, suspension, or revocation of a license, the Administration may refuse to grant a license under this subtitle to any person and may suspend, revoke, or refuse to renew the license of any person if it finds that:</text> <level label="1"> <text>The person has made a material misrepresentation or concealed a material fact in obtaining a license;</text> </level> <level label="2"> <text>The person is not the true owner of the drivers’ school;</text> </level> <level label="3"> <text>The person or any partner, officer, director, or stockholder of the person, or any other person who has a direct or indirect interest in the drivers’ school:</text> <level label="i"> <text>Was the holder of a drivers’ school license that was suspended or revoked by the Administration; or</text> </level> <level label="ii"> <text>Was an officer, director, stockholder, or partner in a drivers’ school the license of which was suspended or revoked by the Administration;</text> </level> </level> <level label="4"> <text>The person or any partner, officer, agent, or employee of the person has committed any fraud in connection with the business conducted under the license, including:</text> <level label="i"> <text>Inducing any individual to obtain a driver’s license by illegal or improper means;</text> </level> <level label="ii"> <text>Representing or implying to any individual by word or deed that a driver’s license or any other license, registration, or other document or service granted by the Administration may be obtained by any means other than those specified by law; or</text> </level> <level label="iii"> <text>Furnishing or obtaining by illegal or improper means any license, registration, or other document or service granted by the Administration, or requesting or accepting money for that purpose; or</text> </level> </level> <level label="5"> <text>As to any drivers’ school that is a participant in the Maryland driver education program, the person has failed to comply with any of the provisions of or any of the rules and regulations adopted under the Maryland Driver Education Program Act.</text> </level> </level> <level label="b"> <text>Notwithstanding the renewal of any license, the Administration may revoke or suspend that license for any violation or other cause, as permitted by this title, that occurred during the 2 license years immediately preceding the renewal.</text> </level> <level label="c"> <text>As to any person licensed under this subtitle, instead of or in addition to revocation, suspension, or refusal to renew a license under this section, the Administration may order the licensee to pay a fine not exceeding $1,000 for each violation of this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-801" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="8" subtitle_name="Driving Instructors"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Driving instructor” means any individual who:</text> <level label="1"> <text>For compensation, under any form of agreement or arrangement with a drivers’ school, gives or offers to give instruction in the driving of motor vehicles; or</text> </level> <level label="2"> <text>Otherwise gives or offers to give any other individual instruction in the driving of motor vehicles and receives or expects to receive compensation for that instruction.</text> </level> </level> <level label="c"> <text>“License” means a driving instructor’s license issued by the Administration under this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-802" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="8" subtitle_name="Driving Instructors"> <text>Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not act as a driving instructor unless the person is licensed by the Administration under this subtitle.</text> </section> <section article="gtr" article_name="Transportation" number="15-803" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="8" subtitle_name="Driving Instructors"> <level label="a"> <text>A person may not be licensed under this subtitle unless the person:</text> <level label="1"> <text>Is an individual of good reputation and moral character;</text> </level> <level label="2"> <text>Is licensed to drive under Title 16 of this article;</text> </level> <level label="3"> <text>Has completed the instructor certification program approved by the Administration; and</text> </level> <level label="4"> <text>Is either:</text> <level label="i"> <text>Licensed under Subtitle 7 of this title to conduct a drivers’ school; or</text> </level> <level label="ii"> <text>Employed as a driving instructor by a licensed drivers’ school.</text> </level> </level> </level> <level label="b"> <text>Unless the applicant himself is licensed to conduct a drivers’ school, each application for a license shall contain or be accompanied by the written statement of the licensed drivers’ school by whom the applicant is or will be employed, certifying that the applicant has been accepted as a driving instructor. The written statement shall be signed on behalf of the licensed drivers’ school by a person authorized under this title to sign an application for a drivers’ school license.</text> </level> <level label="c"> <text>If a drivers’ school makes a certified statement under this section, the drivers’ school immediately shall notify the Administration of any termination of employment of the driving instructor.</text> </level> <level label="d"> <text>The notification required under subsection (c) of this section shall be made on the form that the Administration requires.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-804" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="8" subtitle_name="Driving Instructors"> <level label="a"> <text>In addition to the information required under § 15–102 of this title, each application for a license shall include:</text> <level label="1"> <text>The name and business address of the drivers’ school by whom the applicant is or will be employed; or</text> </level> <level label="2"> <text>A statement that the applicant himself is licensed to conduct a drivers’ school.</text> </level> </level> <level label="b"> <level label="1"> <text>In this subsection, “Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services.</text> </level> <level label="2"> <text>The Administration shall apply to the Central Repository for a State and national criminal history records check for each applicant.</text> </level> <level label="3"> <text>As part of the application for a criminal history records check, the Administration shall submit to the Central Repository:</text> <level label="i"> <text>One complete set of the applicant’s legible fingerprints taken in a manner approved by the Director of the Central Repository and the Director of the Federal Bureau of Investigation;</text> </level> <level label="ii"> <text>The fee authorized under § 10–221(b)(7) of the Criminal Procedure Article for access to Maryland criminal history records; and</text> </level> <level label="iii"> <text>The mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check.</text> </level> </level> <level label="4"> <text>In accordance with §§ 10–201 through 10–229 of the Criminal Procedure Article, the Central Repository shall forward to the applicant and the Administration the applicant’s criminal history record information.</text> </level> <level label="5"> <text>If criminal history record information is reported to the Central Repository after the date of the criminal history records check, the Central Repository shall provide to the Administration a revised printed statement of the individual’s criminal history record information.</text> </level> <level label="6"> <text>Information obtained from the Central Repository under this subsection:</text> <level label="i"> <text>Is confidential and may not be redisseminated; and</text> </level> <level label="ii"> <text>Shall be used only for the licensing purpose authorized by this subsection.</text> </level> </level> <level label="7"> <text>The subject of a criminal history records check under this subsection may contest the contents of the printed statement issued by the Central Repository as provided in § 10–223 of the Criminal Procedure Article.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-805" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="8" subtitle_name="Driving Instructors"> <level label="a"> <text>Each licensee shall pay an annual fee to the Administration for each year for which the license is issued.</text> </level> <level label="b"> <text>The annual fee shall be established by the Administration.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-806" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="8" subtitle_name="Driving Instructors"> <text>The license authorizes the licensee to be a driving instructor for a licensed drivers’ school during the license year for which it is issued.</text> </section> <section article="gtr" article_name="Transportation" number="15-807" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="8" subtitle_name="Driving Instructors"> <level label="a"> <text>In addition to the other grounds specified in Subtitle 1 of this title for refusal, suspension, or revocation of a license, the Administration may refuse to grant a license under this subtitle to any person and may suspend, revoke, or refuse to renew the license of any person if it finds that the person:</text> <level label="1"> <text>Has been convicted of a crime of moral turpitude; or</text> </level> <level label="2"> <text>As to any driving instructor that is a participant in the Maryland driver education program, the person has failed to comply with any of the provisions of or any of the rules and regulations adopted under the Maryland Driver Education Program Act.</text> </level> </level> <level label="b"> <text>As to any person licensed under this subtitle, instead of or in addition to revocation, suspension, or refusal to renew a license under this section, the Administration may order the licensee to pay a fine not exceeding $1,000 for each violation of this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-901" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="9" subtitle_name="Autonomous Vehicle Converters"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Automated driving standards” means the six levels of driving automation established under the SAE International J3016 standard.</text> </level> <level label="c"> <text>“Automated driving system” means the hardware and software that are collectively capable of performing part or all of the dynamic driving task on a sustained basis, regardless of whether the driving task is limited to a specific operational design domain.</text> </level> <level label="d"> <text>“Autonomous vehicle converter” means a person that:</text> <level label="1"> <text>Alters or modifies a new or used motor vehicle by addition, substitution, or removal of components, other than readily attachable components, in compliance with all applicable motor vehicle safety requirements established under federal law; and</text> </level> <level label="2"> <text>Assembles, installs, and affixes an automated driving system to a new or used motor vehicle in such a manner that converts the vehicle into a converted autonomous vehicle.</text> </level> </level> <level label="e"> <text>“Converted autonomous vehicle” means a motor vehicle that:</text> <level label="1"> <text>Is equipped with an aftermarket automated driving system capable of operating in accordance with some or all of the automated driving standards;</text> </level> <level label="2"> <text>Meets or exceeds weight or capacity thresholds established under federal law; and</text> </level> <level label="3"> <text>Is capable of operating in accordance with applicable State and federal law.</text> </level> </level> <level label="f"> <text>“Operational design domain” means operating conditions under which a given automated driving system is specifically designed to function, including conditions subject to:</text> <level label="1"> <text>Environmental restrictions;</text> </level> <level label="2"> <text>Geographic restrictions;</text> </level> <level label="3"> <text>Time–of–day restrictions; or</text> </level> <level label="4"> <text>The required presence or absence of certain traffic or roadway characteristics.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-902" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="9" subtitle_name="Autonomous Vehicle Converters"> <text>This subtitle applies only to motor vehicles intended for commercial or industrial use.</text> </section> <section article="gtr" article_name="Transportation" number="15-903" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="9" subtitle_name="Autonomous Vehicle Converters"> <level label="a"> <text>Notwithstanding any other provision of this article, an autonomous vehicle converter may sell, transfer, lease, offer for sale, or resell:</text> <level label="1"> <text>A converted autonomous vehicle; or</text> </level> <level label="2"> <text>A motor vehicle purchased by an autonomous vehicle converter with the intent to convert the motor vehicle into a converted autonomous vehicle.</text> </level> </level> <level label="b"> <text>An autonomous vehicle converter may not be licensed under this title as a manufacturer, distributor, or factory branch or as a dealer.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-1001" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Area of sales” means the geographical area agreed to by the dealer and the manufacturer in an agreement that grants the dealer the exclusive right to display or sell the manufacturer’s new recreational vehicles of a particular line–make.</text> </level> <level label="c"> <level label="1"> <text>“Coerce” means to compel or attempt to compel an action or inaction by threat of harm, breach of contract, or other adverse action or consequences.</text> </level> <level label="2"> <text>“Coerce” includes threatening to terminate, cancel, or not renew a dealer agreement without good cause, or hold or delay product delivery as an inducement to amend the dealer agreement.</text> </level> </level> <level label="d"> <text>“Dealer” means any person licensed or required to be licensed to sell recreational vehicles.</text> </level> <level label="e"> <text>“Dealer agreement” means a written agreement or contract entered into between a dealer and a manufacturer or distributor:</text> <level label="1"> <text>That states the rights and responsibilities of the parties; and</text> </level> <level label="2"> <text>Under which the dealer may sell new recreational vehicles.</text> </level> </level> <level label="f"> <text>“Distributor” means any person that purchases new recreational vehicles for resale to dealers.</text> </level> <level label="g"> <text>“Factory branch” means a branch office of a manufacturer from which the manufacturer:</text> <level label="1"> <text>Sells or promotes sales of a particular brand or make of new recreational vehicles to dealers in the State;</text> </level> <level label="2"> <text>Directs and supervises the manufacturer’s representatives in the State; or</text> </level> <level label="3"> <text>Supervises or contacts dealers or prospective dealers in the State.</text> </level> </level> <level label="h"> <text>“Factory campaign” means an effort on the part of a warrantor to contact recreational vehicle owners or dealers to address a part or equipment issue.</text> </level> <level label="i"> <text>“Family member” means a spouse, child, grandchild, parent, sibling, niece, or nephew, or a spouse of a child, grandchild, parent, sibling, niece, or nephew.</text> </level> <level label="j"> <text>“License” means a manufacturer, distributor, or factory branch license issued by the Administration under this subtitle.</text> </level> <level label="k"> <text>“Line–make” means a specific series of recreational vehicles that:</text> <level label="1"> <text>Is targeted to a particular market segment, as determined by its decor, features, equipment, size, weight, and price range;</text> </level> <level label="2"> <text>Has lengths and interior floor plans that distinguish the recreational vehicles from other similar models; and</text> </level> <level label="3"> <text>Belongs to a single distinct classification of recreational vehicle product type that has a substantial degree of commonality in the construction, chassis, frame, and body style.</text> </level> </level> <level label="l"> <text>“Manufacturer” means any person engaged in the manufacturing of recreational vehicles.</text> </level> <level label="m"> <text>“Model” means a series of recreational vehicle products identified by a common series trade name or trademark.</text> </level> <level label="n"> <text>“Proprietary part” means any part manufactured by or for the manufacturer or sold exclusively by the manufacturer.</text> </level> <level label="o"> <level label="1"> <text>“Recreational vehicle” means a vehicle that is:</text> <level label="i"> <text>Either self–propelled or towed by a tow vehicle; and</text> </level> <level label="ii"> <text>Designed to provide temporary living quarters for recreational, camping, or travel use.</text> </level> </level> <level label="2"> <text>“Recreational vehicle” includes:</text> <level label="i"> <text>A motor home;</text> </level> <level label="ii"> <text>A travel trailer;</text> </level> <level label="iii"> <text>A fifth–wheel travel trailer;</text> </level> <level label="iv"> <text>A truck camper; and</text> </level> <level label="v"> <text>A folding camping trailer.</text> </level> </level> </level> <level label="p"> <text>“Transient customer” means a customer who is temporarily traveling through a dealer’s area of sales.</text> </level> <level label="q"> <level label="1"> <text>“Warrantor” means any person that gives a warranty in connection with new recreational vehicle parts, accessories, or components.</text> </level> <level label="2"> <text>“Warrantor” does not include service contracts, insurance, or extended warranties sold for separate consideration by a dealer or person not affiliated with a manufacturer or distributor.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-1002" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>A manufacturer may not transfer any new recreational vehicle to any dealer or distributor in the State unless the manufacturer is licensed by the Administration under this subtitle.</text> </level> <level label="b"> <text>A distributor may not transfer any new recreational vehicle to any dealer in the State unless the distributor is licensed by the Administration under this subtitle.</text> </level> <level label="c"> <text>A person may not conduct the business of a factory branch of a recreational vehicle manufacturer unless the person is licensed by the Administration under this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-1003" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>In addition to the information required under Subtitle 1 of this title, each application for a license under this subtitle shall include:</text> <level label="1"> <text>The address of the principal place of business of the applicant;</text> </level> <level label="2"> <text>The address of each place of business from which the applicant will make substantial contacts with dealers in the State; and</text> </level> <level label="3"> <text>The nature of the business to be conducted at each address.</text> </level> </level> <level label="b"> <text>Each applicant for a license shall submit as part of the application:</text> <level label="1"> <text>A copy of each form for any new vehicle warranty currently provided or offered by the applicant;</text> </level> <level label="2"> <text>A copy of each franchise contract and any other contract with dealers used by the applicant, together with a list of dealers in the State who hold a franchise from the applicant;</text> </level> <level label="3"> <text>A copy of the vehicle preparation and delivery obligations of the dealers described in item (2) of this subsection; and</text> </level> <level label="4"> <text>A statement of the compensation structure the applicant agrees to pay a dealer for parts supplied and work done by a dealer under:</text> <level label="i"> <text>The preparation and delivery obligations of the dealer; or</text> </level> <level label="ii"> <text>Any outstanding express or implied new recreational vehicle warranty.</text> </level> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-1004" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>Each licensee shall pay an annual fee to the Administration for each license year or part of a license year for which the license is issued.</text> </level> <level label="b"> <text>The annual license fee for a manufacturer or a distributor shall be established by the Administration based on the combined number of new recreational vehicles transferred by the manufacturer or distributor to dealers in the State during the preceding license year.</text> </level> <level label="c"> <text>The annual license fee for a factory branch shall be established by the Administration.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-1005" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>After the Administration notifies a manufacturer or distributor of new recreational vehicles of the approval of an application for a license and before the Administration issues a license, the manufacturer or distributor shall file with the Administration a surety bond in the form and with the surety that the Administration requires.</text> </level> <level label="b"> <level label="1"> <text>The amount of the surety bond shall be based on the number of new recreational vehicles transferred by the manufacturer or distributor to dealers in the State during the preceding license year, as follows:</text> <level label="i"> <text>If 1 to 50 vehicles were transferred, a $25,000 surety bond;</text> </level> <level label="ii"> <text>If 51 to 500 vehicles were transferred, a $50,000 surety bond;</text> </level> <level label="iii"> <text>If 501 to 10,000 vehicles were transferred, a $100,000 surety bond; and</text> </level> <level label="iv"> <text>If more than 10,000 vehicles were transferred, a $300,000 surety bond.</text> </level> </level> <level label="2"> <text>Each surety bond shall continuously maintain the amount specified in this subsection.</text> </level> <level label="3"> <text>A manufacturer or distributor need not file more than one bond regardless of the number of makes of recreational vehicles manufactured or distributed.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-1006" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <text>A license issued under this subtitle authorizes the licensee to conduct the business of a manufacturer, distributor, or factory branch during the license year for which it is issued.</text> </section> <section article="gtr" article_name="Transportation" number="15-1007" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>In this section, “good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.</text> </level> <level label="b"> <text>A manufacturer, distributor, or factory branch, whether directly or through an agent, an employee, or a representative, may not fail to act in good faith:</text> <level label="1"> <text>In acting or purporting to act under the terms, provisions, or conditions of any franchise agreement; or</text> </level> <level label="2"> <text>In any transaction or conduct governed by this subtitle.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-1008" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>A manufacturer or distributor may not sell a new recreational vehicle in the State to or through a dealer without having first entered into a written dealer agreement that has been signed by both parties.</text> </level> <level label="b"> <level label="1"> <text>Except as specified in paragraph (2) of this subsection, the manufacturer shall designate the duration of the dealer agreement and the area of sales exclusively assigned to a dealer in the dealer agreement and may not make changes to the terms specified in the agreement.</text> </level> <level label="2"> <text>The terms specified in the dealer agreement may be altered with written mutual consent of both parties.</text> </level> </level> <level label="c"> <text>A dealer may not sell a new recreational vehicle in the State unless:</text> <level label="1"> <text>The dealer is licensed by the Administration under Subtitle 3 of this title;</text> </level> <level label="2"> <text>The dealer has entered into a dealer agreement; and</text> </level> <level label="3"> <text>The dealer is selling within the area of sales designated in the dealer agreement.</text> </level> </level> <level label="d"> <level label="1"> <text>A manufacturer or distributor shall distribute recreational vehicles to its dealers in a fair and equitable manner.</text> </level> <level label="2"> <text>On request, a manufacturer or distributor shall provide information on its manner of distribution to dealers.</text> </level> </level> <level label="e"> <text>A manufacturer or distributor shall provide adequate repair instructions to its licensed dealers to facilitate the dealers performing proper service and repairs on recreational vehicles.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-1009" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <level label="1"> <text>A manufacturer or distributor may terminate, cancel, or fail to renew a model, line–make, or dealer agreement with a dealer only for good cause.</text> </level> <level label="2"> <level label="i"> <text>The manufacturer or distributor has the burden of showing good cause for the termination or cancellation of or failure to renew a model, line–make, or dealer agreement with a dealer.</text> </level> <level label="ii"> <text>The determination of good cause shall be based on:</text> <level label="1"> <text>The extent of the dealer’s penetration into the relevant market area for the relevant model or line–make;</text> </level> <level label="2"> <text>The nature and extent of the dealer’s investment in the dealer’s business;</text> </level> <level label="3"> <text>The adequacy of the dealer’s service facilities, equipment, parts, supplies, and personnel;</text> </level> <level label="4"> <text>The effect of the proposed action on the community;</text> </level> <level label="5"> <text>The extent and quality of the dealer’s service under recreational vehicle warranties;</text> </level> <level label="6"> <text>Any failure of the dealer to follow agreed–on procedures and standards related to the overall operation of the dealership consistent with the law and the dealer agreement; and</text> </level> <level label="7"> <text>The dealer’s performance under the terms of the dealer agreement.</text> </level> </level> </level> </level> <level label="b"> <text>On renewal of a dealer agreement, a manufacturer or distributor may not require additional inventory stocking requirements or increased sales targets in excess of the market growth in the dealer’s area of sales.</text> </level> <level label="c"> <level label="1"> <text>Except as otherwise provided in this subsection, a manufacturer or distributor shall provide a dealer with written notice at least 120 days before the termination, cancellation, or nonrenewal of a model, line–make, or dealer agreement.</text> </level> <level label="2"> <text>The notice shall state all reasons for the proposed termination, cancellation, or nonrenewal.</text> </level> <level label="3"> <level label="i"> <text>Within 30 days following receipt of the notice, a dealer may provide written notice of intent to rectify all claimed deficiencies.</text> </level> <level label="ii"> <text>If the deficiencies are rectified by the dealer within 120 days following the notice of intent to rectify, the manufacturer’s or distributor’s notice of termination is void.</text> </level> <level label="iii"> <text>Subject to paragraph (5) of this subsection, if a dealer fails to provide timely written notice of intent to rectify or fails to rectify within 120 days after notice of intent to rectify, the termination, cancellation, or nonrenewal of the dealer agreement shall take effect.</text> </level> </level> <level label="4"> <text>The 120–day notice period shall be reduced to 30 days if the termination, cancellation, or nonrenewal is due to:</text> <level label="i"> <text>A dealer or one of the dealer’s owners being convicted of, or entering a plea of nolo contendere to, a felony;</text> </level> <level label="ii"> <text>The abandonment or closing of the business operations of the dealer for 10 consecutive business days, unless the closing is due to a cause that is out of the dealer’s control;</text> </level> <level label="iii"> <text>A significant misrepresentation by a dealer materially affecting the business relationship; or</text> </level> <level label="iv"> <text>A suspension or revocation of a dealer’s license, or failure by a dealer to renew a dealer’s license.</text> </level> </level> <level label="5"> <text>The notice provisions of this section do not apply if the reason for termination, cancellation, or nonrenewal is insolvency, the occurrence of an assignment for the benefit of creditors, or bankruptcy.</text> </level> </level> <level label="d"> <level label="1"> <text>A dealer may terminate, cancel, or not renew a model, a line–make, or the dealer agreement with a manufacturer or distributor with or without good cause at any time by giving 30 days’ written notice to the manufacturer or distributor.</text> </level> <level label="2"> <level label="i"> <text>If the termination, cancellation, or nonrenewal of the model, line–make, or dealer agreement is for good cause, the dealer has the burden of showing good cause.</text> </level> <level label="ii"> <text>A determination of good cause may be based on:</text> <level label="1"> <text>A manufacturer or distributor being convicted of, or entering a plea of nolo contendere to, a felony;</text> </level> <level label="2"> <text>The business operations having been abandoned or closed for 10 consecutive days, unless the closing is due to a cause that is out of the control of the manufacturer or distributor;</text> </level> <level label="3"> <text>A significant misrepresentation by the manufacturer or distributor that materially affects the business relationship;</text> </level> <level label="4"> <text>A declaration by the manufacturer or distributor of insolvency, the occurrence of an assignment for the benefit of creditors, or bankruptcy;</text> </level> <level label="5"> <text>A manufacturer’s or distributor’s material violation of the dealer agreement that is not cured within 120 days after written notice by the dealer;</text> </level> <level label="6"> <text>A manufacturer or distributor coercing or attempting to coerce a dealer;</text> </level> <level label="7"> <text>A manufacturer or distributor violating an area of sales protection or allowing other dealers to violate an area of sales protection; or</text> </level> <level label="8"> <text>A material violation of this section that is not cured within 30 days after written notice of the violation by the dealer.</text> </level> </level> </level> </level> <level label="e"> <text>If the dealer agreement is terminated, canceled, or not renewed by the dealer for good cause, within 45 days after the termination, cancellation, or nonrenewal, the manufacturer or distributor shall, at request of the dealer, repurchase:</text> <level label="1"> <text>All new, unaltered, undamaged, and untitled recreational vehicles that were acquired from the manufacturer or distributor within 18 months before the termination, cancellation, or nonrenewal, at 100% of the invoice cost, including transportation costs, except that if any recreational vehicle is damaged, the amount due to the dealer shall be reduced by the cost to repair the damage;</text> </level> <level label="2"> <text>All new, undamaged accessories and proprietary parts with the original invoice sold to the dealer for resale within 12 months before the termination, cancellation, or nonrenewal of the dealer agreement, at 105% of the dealer’s original price paid; and</text> </level> <level label="3"> <text>Any properly functioning diagnostic equipment, specialty tools, current signage, or other equipment and machinery that was purchased within 5 years before the termination, cancellation, or nonrenewal and can no longer be used in the normal course of business, at 100% of the dealer’s original price paid, plus freight, destination, delivery, and any applicable tax.</text> </level> </level> <level label="f"> <text>If the dealer agreement is terminated, canceled, or not renewed by the manufacturer or distributor without good cause, the manufacturer or distributor shall repurchase dealer inventory as provided in subsection (e) of this section.</text> </level> <level label="g"> <text>A dealer is not prohibited from selling the remaining in–stock inventory of a particular model or line–make after a dealer agreement has been terminated, canceled, or not renewed by the manufacturer or distributor.</text> </level> <level label="h"> <text>When taking on an additional line–make of a recreational vehicle, a dealer shall notify in writing any manufacturer or distributor with whom the dealer has a dealer agreement of a similar line–make at least 30 days before entering into a dealer agreement for the additional line–make.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-1010" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <level label="1"> <text>If a dealer desires to make a transfer in ownership by sale of the business assets, stock transfer, or any other method, the dealer shall give a manufacturer or distributor that has entered into a dealer agreement with the dealer written notice at least 10 business days before the transfer, including all supporting documentation as may be reasonably required by the manufacturer or distributor to determine whether an objection to the transfer may be made.</text> </level> <level label="2"> <text>A manufacturer or distributor may not object to the proposed transfer of ownership unless the prospective transferee:</text> <level label="i"> <text>Has been terminated for cause by the manufacturer or distributor;</text> </level> <level label="ii"> <text>Has been convicted of a felony or any crime of moral turpitude;</text> </level> <level label="iii"> <text>Lacks any dealer license required by law;</text> </level> <level label="iv"> <text>Lacks an active line of credit sufficient to purchase the manufacturer’s or distributor’s product; or</text> </level> <level label="v"> <text>Has undergone bankruptcy, insolvency, a general assignment for the benefit of creditors, or the appointment of a receiver, trustee, or conservator to take possession of the transferee’s business property.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>If the manufacturer or distributor objects to a proposed change of ownership, the manufacturer or distributor shall give written notice to the dealer within 7 business days after receipt of the dealer’s notification and complete documentation.</text> </level> <level label="2"> <text>If the manufacturer or distributor does not give timely notice of the objection, the transfer shall be deemed approved.</text> </level> </level> <level label="c"> <level label="1"> <text>A dealer shall have an opportunity to designate, in writing, a family member as a successor to the dealer’s business in the event of death, incapacity, or retirement of the dealer.</text> </level> <level label="2"> <text>A manufacturer or distributor may object to the successor within 10 business days after receipt of the dealer’s succession plan only if the successor:</text> <level label="i"> <text>Was convicted of a felony or crime of moral turpitude;</text> </level> <level label="ii"> <text>Declared bankruptcy or insolvency within the previous 10 years;</text> </level> <level label="iii"> <text>Lacks an active line of credit sufficient to purchase the manufacturer’s or distributor’s product;</text> </level> <level label="iv"> <text>Lacks any dealer’s license required by law; or</text> </level> <level label="v"> <text>Would cause or has caused a breach of the dealer agreement.</text> </level> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-1011" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <level label="1"> <text>Each warrantor shall:</text> <level label="i"> <text>Specify in writing each dealer’s obligations for preparation, delivery, and warranty service for the warrantor’s products;</text> </level> <level label="ii"> <text>Compensate the dealer for warranty service performed by the dealer that is covered by the warranty; and</text> </level> <level label="iii"> <text>Provide the dealer a schedule of compensation to be paid and the reasonable time allowance for the performance of any service and repairs under a warranty.</text> </level> </level> <level label="2"> <text>If the schedule of compensation does not include a particular service or repair, a warrantor shall reimburse the dealer a reasonable amount for the service or repair.</text> </level> </level> <level label="b"> <level label="1"> <text>A warrantor shall reimburse the dealer for any warranty part at wholesale cost plus a 30% handling charge.</text> </level> <level label="2"> <text>The maximum handling charge under this subsection is $300.</text> </level> <level label="3"> <text>A warrantor shall reimburse a dealer the cost of freight to return a warranty part, an accessory, or a component to the warrantor, if the return is requested by the warrantor.</text> </level> </level> <level label="c"> <text>Warranty audits of dealer records may be conducted by the warrantor on a reasonable basis.</text> </level> <level label="d"> <level label="1"> <text>A dealer shall submit a warranty claim within 45 days after completing the work.</text> </level> <level label="2"> <text>A warrantor may disapprove warranty claims only in writing within 45 days after the date the warranty claim was submitted by the dealer in the manner prescribed by the warrantor.</text> </level> <level label="3"> <text>Claims not disapproved in writing within 45 days shall be deemed to be approved and shall be paid by the warrantor within 60 days.</text> </level> </level> <level label="e"> <text>A dealer shall give notice to a warrantor as soon as reasonably possible if the dealer is unable or unwilling to perform material or repetitive warranty repairs.</text> </level> <level label="f"> <text>It is a violation of this section for any warrantor to:</text> <level label="1"> <text>Fail to perform any of its warranty obligations with respect to its warranted products;</text> </level> <level label="2"> <text>Fail to include written notices of factory campaigns to recreational vehicle owners and dealers for the expected date by which parts and equipment will be available to dealers to perform the campaign work;</text> </level> <level label="3"> <text>If the carrier is designated by the manufacturer, distributor, or warrantor, fail to compensate a dealer for authorized repairs performed by a dealer for a product damaged in transit to the dealer;</text> </level> <level label="4"> <text>Fail to compensate any dealer for authorized warranty service in accordance with the time allowances set forth in the schedule of compensation, if performed in a timely manner;</text> </level> <level label="5"> <text>Intentionally misrepresent to purchasers of recreational vehicles that a dealer is a warrantor or co–warrantor; or</text> </level> <level label="6"> <text>Require a dealer to make warranties to customers in any manner related to the manufacturing of a recreational vehicle.</text> </level> </level> <level label="g"> <text>It is a violation of this section for a dealer to:</text> <level label="1"> <text>Fail to perform predelivery inspection functions as specified by the warrantor;</text> </level> <level label="2"> <text>Fail to perform warranty service work authorized by the warrantor in a reasonably timely manner on any transient customer’s recreational vehicle of the same line–make;</text> </level> <level label="3"> <text>Fail to track actual time expended to perform warranty work not governed by time allowance in the schedule of compensation;</text> </level> <level label="4"> <text>Claim an agency relationship with a warrantor; or</text> </level> <level label="5"> <text>Misrepresent the terms of a warranty.</text> </level> </level> <level label="h"> <text>Unless specified in the terms of a dealer agreement, it is a violation of this section for:</text> <level label="1"> <text>A warrantor to fail to indemnify, defend, and hold harmless a dealer against any losses or damages to the extent the losses or damages are caused by the negligence or misconduct of the warrantor; or</text> </level> <level label="2"> <text>A dealer to fail to indemnify, defend, and hold harmless a warrantor against any losses or damages to the extent the losses or damages are caused by the negligence or misconduct of the dealer.</text> </level> </level> <level label="i"> <text>Indemnification under this subsection shall include court costs, reasonable attorney’s fees, and expert witness fees incurred by the defending party.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-1012" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>When a new recreational vehicle is damaged before transit to the dealer, or is damaged in transit to the dealer and the manufacturer or distributor was responsible for transit, the dealer shall:</text> <level label="1"> <text>Notify the manufacturer or distributor of the damage within the time frame specified in the dealer agreement;</text> </level> <level label="2"> <text>Request authorization to replace the components, parts, or accessories damaged; and</text> </level> <level label="3"> <text>Reject the recreational vehicle within 2 days after physical delivery of the recreational vehicle.</text> </level> </level> <level label="b"> <level label="1"> <text>If a dealer determines that a recreational vehicle at the time of delivery has an unreasonable amount of miles on the odometer, the recreational vehicle may be subject to rejection by the dealer and reversion of the recreational vehicle to the manufacturer or distributor.</text> </level> <level label="2"> <text>A dealer may not deem less than the distance between the dealer and the manufacturer’s factory or a distributor’s point of distribution, as appropriate, plus 100 miles as an unreasonable amount of miles.</text> </level> </level> </section> <section article="gtr" article_name="Transportation" number="15-1013" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>A manufacturer, distributor, or factory branch, whether directly or through an agent, an employee, an affiliate, or a representative, may not coerce or attempt to coerce a dealer to:</text> <level label="1"> <text>Purchase a product the dealer did not order;</text> </level> <level label="2"> <text>Enter into an agreement with the manufacturer or distributor;</text> </level> <level label="3"> <text>Take action that is unfair or unreasonable to the dealer; or</text> </level> <level label="4"> <text>Forgo exercising a right authorized by a dealer agreement or any law governing the business relationship.</text> </level> </level> <level label="b"> <text>A dealer bears the burden of proof regarding the prohibited acts described in this section.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-1014" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>Notwithstanding any administrative or criminal sanctions imposed by this subtitle, if a person suffers financial injury or other damage as a result of a violation of this subtitle by any other person, whether or not that other person has been found guilty of a criminal violation, the injured person may recover damages and reasonable attorney’s fees in any court of competent jurisdiction.</text> </level> <level label="b"> <level label="1"> <text>Before bringing a civil action under this section, the party bringing the action shall serve a written demand for mediation on the offending party.</text> </level> <level label="2"> <text>The parties to mediation shall pay their own costs for attorney’s fees and divide the mediator cost equally.</text> </level> <level label="3"> <text>This subsection does not apply to an action for injunctive relief.</text> </level> </level> <level label="c"> <text>A dealer, manufacturer, distributor, factory branch, or warrantor may apply for a grant of injunctive relief from a violation of this subtitle or a refusal to comply with a requirement of this subtitle.</text> </level> </section> <section article="gtr" article_name="Transportation" number="15-1015" title_number="15" title_name="Vehicle Laws -- Licensing of Businesses and Occupations" subtitle_number="10" subtitle_name="Recreational Vehicle Dealer Agreements"> <level label="a"> <text>The Administration may suspend or revoke any dealer, manufacturer, distributor, or factory branch license on a finding that a party violated this subtitle.</text> </level> <level label="b"> <text>The Administration may impose a fine not exceeding $1,000 for each violation of this subtitle.</text> </level> <level label="c"> <text>A dealer, manufacturer, distributor, factory branch, or warrantor is entitled to a hearing under Title 12, Subtitle 2 of this article to contest an action or fine imposed under this section.</text> </level> </section>