Regulation .01 Boat Dealer License.
Regulation .01 Boat Dealer License.LinkCopy Citation
A.
License Application.
(1)
A manufacturer or dealer may not conduct business in the State unless licensed as a Maryland boat dealer.
(2)
A dealer with multiple locations in the State must secure a separate license for each location where sales activities take place.
(3)
The annual license fee is $50.
(4)
Applicant shall provide the information required by Natural Resources Article, §8-710(c), Annotated Code of Maryland.
B.
Cancellation or Denial of License.
(1)
The Department may cancel or refuse to issue a license for any violation of the State Boat Act including any of the following:
(a)
License application contains false or fraudulent information;
(b)
Applicant does not meet or licensee no longer meets the requirements for designation as a Maryland boat dealer;
(c)
Licensee has collected monies on behalf of the State and has failed to forward the monies to the Department within 30 days of sale;
(2)
Before cancelling, revoking, or refusing to renew a license, the Department shall provide a contested case hearing conducted in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 08.01.04.
C.
A surety bond or other security approved by the Department shall accompany each application for a boat dealer license or license renewal. The amount of the surety bond or other security shall be as follows:
(1)
$20,000 surety for a newly designated Maryland boat dealer;
(2)
$5,000 surety for gross annual sales of $500,000 or less;
(3)
$10,000 surety for gross annual sales greater than $500,000 but less than $1,000,000;
(4)
$20,000 surety for gross annual sales of $1,000,000 but less than $3,000,000;
(5)
$50,000 surety for gross annual sales of $3,000,000 but less than $5,000,000;
(6)
$100,000 surety for gross annual sales of $5,000,000 but less than $10,000,000;
(7)
$150,000 surety for gross annual sales of $10,000,000 but less than $15,000,000;
(8)
$200,000 surety for gross annual sales of $15,000,000 and greater.
D.
Gross annual sales shall be determined by a review of sales for the twelve months prior to issuance of license renewal application.
E.
Failure to comply with surety requirements can result in disciplinary action, which may include a verbal warning, a warning letter, increased bond requirement, suspension of temporary registration privileges, suspension of dealer license, and criminal charges.