In this subtitle the following words have the meanings indicated. “License” means a title service agent’s license issued by the Administration under this subtitle. “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. “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.

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.

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. The annual license fee shall be established by the Administration.

This section does not apply to: A licensed dealer who is in compliance with the surety bond requirement of Subtitle 3 of this title; or A motor club that is in compliance with the surety bond requirement of § 26–204 of the Insurance Article. 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. The amount of the surety bond shall be $50,000.

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.

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. A title service agent or an agent or employee of a title service agent may not misrepresent any material fact in obtaining a license. 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. 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. 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. 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. 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. 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.

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, 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 The title service agency transactions of the person with the Administration have been marked by fraud or bad faith. 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.

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. Each title service agent that collects any tax or fee required for titling a vehicle shall: Keep complete and accurate records of each taxable sale, together with a record of the tax collected on the sale; Keep copies of every invoice, bill of sale, and other pertinent documents and records, in the form that the Administration requires; and 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. 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. 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: 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 The determination and computation of the Administration are prima facie correct. 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: 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 Notify the title service agent of the tax due and the amount of the deficiency assessment. 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. 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. All amounts received from a title service agent under this section shall be credited: First, to any penalty and interest accrued under this section; and Then, to the tax due.