In this chapter, the following terms have the meanings indicated. Terms Defined. “Administration” means the Motor Vehicle Administration. “Advertising” means any oral, written, or graphic statement which offers vehicles for sale or which indicates the availability of vehicles, including any statements or representations made in any newspaper, pamphlet, circular, other publication, including but not limited to electronic media, radio or television, and in or on any notice, sign, billboard, poster, bill catalog, letter, or business card. “Business license” means a license issued by the Administration under Transportation Article, Title 15, Subtitles 2—3, 5, and 6, Annotated Code of Maryland. “Clear and conspicuous” means a statement, representation, or term differing from other statements, representations, or terms being made so as to be readily noticeable to the person to whom it is being disclosed either by its size, sound, length of time, color, placement in the advertisement, or the like. “Consumer goods” means, as referred to in these regulations, a vehicle offered for retail sale for use by individuals primarily for personal, family, or household purposes. “Dealer” has the meaning stated in Transportation Article, §15-101, Annotated Code of Maryland. “Dealer cost” means the total amount the dealer is invoiced by the manufacturer for a vehicle. “Demonstrator” means a vehicle: Of the current or preceding model year for which a title has not been issued; Which has been: Used solely by the employees, officers, or principals of the dealer, manufacturer, or distributor; or Driven for purposes of customer road testing; Which has been driven more than 500 miles, excluding dealer exchange mileage; and Which has never been sold to a retail customer, subject to §K of regulation .14 of this chapter. “Licensee” means an individual or business entity licensed by the Administration under Transportation Article, Title 15, Subtitles 2—6, Annotated Code of Maryland. “Location” means the fixed location from which business activities are conducted and that is specified in the application for the business license. “Occupational license” means a vehicle salesman’s license issued by the Administration under Transportation Article, Title 15, Subtitle 4, Annotated Code of Maryland. “Rebate, cash rebate, or other similar phrases” means a deduction granted by a dealer or manufacturer from an amount a purchaser pays to a dealer, or a return by a dealer or manufacturer of part of an amount given in payment by a purchaser to a dealer after a sale of a vehicle has been consummated. “Representative” means an employee of the business who acts on behalf of the licensee. “Service provider” has the meaning stated in Transportation Article, §13-610, Annotated Code of Maryland. “Vehicle salesman” has the meaning stated in Transportation Article, §15-101, Annotated Code of Maryland. The Administration may refuse to grant a license to any person as a dealer or may suspend, revoke, or refuse to continue the license of a dealer already issued, unless the dealer is meeting the requirements set forth in this chapter. A person applying for a dealer license shall submit the application in a format prescribed by the Administration, along with the fee as set forth in COMAR 11.11.05. The business application for license shall state the full business name and all “trading as” or “doing business as” names. Example: ABC Pontiac—GMC—Nissan—Volvo, Inc.; T/A ABC Volvo, T/A ABC Nissan, T/A ABC Pontiac—GMC. A licensee may not do business in a name or under any title or designation other than as registered with the Department of Assessment and Taxation (SDAT) and stated on the license application. A dealer may hold multiple licenses, for example, new or used vehicle, motorcycle, and trailer dealers’ licenses, provided that the licenses are issued in the same dealership name. A dealer license shall be issued for a 3-year period. The Administration reserves the right to inspect each location before approval of application for dealer registration and at any time during licensure period. Following approval of the application, the location shall be maintained in accordance with the applicable provisions of Transportation Article, Annotated Code of Maryland, and the regulations promulgated by the Administration. Only one license for the type of vehicle being offered for sale will be permitted at any one location, and once the location has been licensed, it may not be subdivided for the purpose of establishing other businesses, under separate licenses for the same type of vehicle being offered for sale, without the prior approval of the Administration. This prohibition also applies to a licensee doing business under more than one corporate structure. The dealership shall face, adjoin, and be fully visible from an improved street or highway that is accessible to the public and that is identifiable by name or postal number. The street or highway shall be used by the public for vehicular travel. The location shall be of a size to adequately and safely permit the display of a minimum of ten vehicles and space for customer parking. The location shall meet local zoning regulations. The location shall be fully lighted. The display and customer parking areas shall be adequately surfaced with an appropriate covering, subject to approval by the Administration. The additional locations shall be inspected and approved by the Administration. Additional locations shall meet the minimum standards set forth in applicable provisions of the Transportation Article, Annotated Code of Maryland, and the regulations promulgated by the Administration. Additional locations may use registration plates issued to the primary location provided the trade name and ownership are identical to that of the primary location. Locations shall have posted business hours. Signs. Appropriate dealership signs shall be permanently affixed. The signs shall be of a size as to make them reasonably legible from the street or highway. The signs shall clearly identify the business conducted at the dealership and shall adequately direct the customers to the dealership office. As to wholesale dealers, a sign is not required. However, if a sign is displayed, it: Shall be permanently displayed at the dealership entrance; May not use any state emblem; and May not contain any language which implies the dealership will sell to or exchange vehicles with a retail buyer. Wholesale dealers shall operate in a fixed location and the space used shall be: Owned or leased by the wholesale dealer; and Regularly occupied and exclusively used by the wholesale dealer for dealership purposes. The dealership office shall be housed at the dealer’s fixed location and in a substantial building adequate and appropriate for the business so conducted. The dealership office shall be of sufficient size to accommodate customers and, in order to reasonably conduct the dealership’s business, shall be equipped with: Office furniture, such as desk and chairs; A secure area for storage of State property; and Electricity, lighting, heat, and telephone service in the name of the dealership. A dealer licensee approved or renewed after September 30, 2017, shall have a continuing contract with a firm that provides electronic registering and titling services to the dealership. Be open for business to the public and open for inspection by the Administration during posted business hours. A current trader’s license shall be issued by the political subdivision of each location. This license shall be displayed as required under Regulation .07 of this chapter. If a location is otherwise adequate and appropriate, the location requirements outlined in Regulation .03D, E, G, and H of this chapter may be waived for wholesale dealers, for new trailer, boat trailer, motorcycle dealers, and for any person licensed as a dealer to sell only fire, rescue, and emergency medical motor vehicles, who shall have the privilege of assigning manufacturer’s certificates of origin and to issue temporary tags upon filing with the Administration a written franchise agreement from the manufacturer of the vehicles for which the dealer claims a franchise. Once licensed as a dealer to sell fire, rescue, and emergency medical motor vehicles, the dealer shall be prohibited from selling any types of vehicles other than fire, rescue, and emergency medical motor vehicles until the location requirements in Regulations .03 and .04 of this chapter have been met. Manufacturers and distributors are exempt from location requirements for the purpose of securing Class 1A registration plates. The registration of a dealer in the names of two or more persons as partners, or otherwise, may not require a reinspection on a change in ownership as long as one person named as a partner or co-owner remains as the owner, part-owner, or, in a corporation, as one of its legal officers. The dealer’s bond shall be secured from a bonding company licensed to do business in Maryland. Each applicant shall file with the Administration, in such form as the Administration shall approve, acceptable evidence of a surety bond in the amount required under Transportation Article, §15-308, Annotated Code of Maryland, which is for the use and benefit of the Administration and the public who may suffer or sustain any loss by reason of any violation of Transportation Article, Titles 12—15, 17, and 23, Annotated Code of Maryland, by a dealer. The bonding company shall give the Administration at least 45 days’ notice by registered or certified mail of the cancellation of the dealer’s bond. Otherwise, the bond is to be considered as being in full force and effect until the notice is received by the Administration. The bond shall run concurrently with the license period and continue, until cancelled, regardless of the number of license renewal periods. The dealer shall notify the Administration and the dealer’s bonding company of any change in the factual or material matters represented or set forth in the application for bond. The dealer’s license shall be displayed conspicuously in the dealer’s place of business. This particular license is issued in addition to regular registration cards which shall accompany dealer registration plates. Additional licenses may be issued at no cost for each additional approved location, and each license shall be conspicuously displayed in the respective office for which it is issued. Upon voluntary cancellation or termination of franchise on the part of the dealer, licenses and registration plates shall be immediately returned to the Administration. However, the Administration may grant an extension, upon presentation of documentation acceptable to the Administration, for the purpose of concluding any business of the dealership regarding the disposition of the existing inventory. The dealer shall continue to comply with the surety bond requirements of Transportation Article, §15-205, Annotated Code of Maryland, for any approved extension period. If a dealer’s license becomes lost, mutilated, or illegible, the dealer shall make prompt application to the Administration for the issuance of a duplicate license. Application shall be made in a format prescribed by the Administration, accompanied by required fees as set forth in COMAR 11.11.05. Records of the dealer business activities shall be preserved in their original form or a format approved by the Administration for a period of time as required by Transportation Article, §15-105, Annotated Code of Maryland. The records shall be accessible at the location approved by the Administration. If location is other than the licensed location, an electronic or other copy must be maintained at the licensed location and consist of but not be limited to: Transactions regarding purchases, sales, and transfers of ownership, including those conducted with other licensed dealers and salesmen; Collection of excise tax, titling, and registration fees; Perpetual inventory of temporary registration plates, certificates, and registration permits assigned to and issued by the dealer. These records shall document the following: Accounting of temporary registration plates, certificates and permits issued; and An accounting of temporary registration plates, certificates and permits voided including an explanation of the reason for void; An assigned title for each untitled vehicle in the dealer’s inventory; and While the vehicle is in the possession of prospective retail customers, records documenting the: Name of each prospective retail customer of the vehicle; Beginning and ending odometer reading of the vehicle for the period each prospective retail customer had possession of the vehicle; and Dealer tag number of interchangeable plate displayed on the vehicle. Each dealer shall electronically make application to the Administration for the temporary 60-day registration permits. Dealers may issue, on the date of delivery, one temporary 60-day registration permit to purchasers of vehicles, who possesses current registration plates issued to another vehicle under the laws of this State provided the registration plates are transferable pursuant to the provisions of the Transportation Article, Annotated Code of Maryland. A dealer shall ensure that motor vehicle liability insurance is in effect before issuing a temporary 60-day registration permit. If the Administrator finds that the dealer is not complying with the provisions of these regulations or the directives of the Administration, the Administrator may disable the rights of a dealership to issue temporary 60-day registration permits. A person to whom a temporary 60-day registration permit has been issued shall permanently destroy the temporary 60-day registration permit immediately upon receiving the transfer registration card covering the annual registration plates, or on the 60th day from the date of issue of the temporary 60-day registration permit, whichever comes first. The Administration may authorize 60-day temporary registration plates to a dealer after proper electronic application in a format prescribed by the Administration and payment of the required fees as set forth in COMAR 11.11.05. Dealers may issue one 60-day temporary registration plate to a purchaser of a vehicle. Temporary registration plates may be issued on the date of delivery in those instances when delivery occurs on a date after the date of sale. The date of delivery as well as the date of sale shall be clearly reflected on the contract. The 60-day temporary registration certificate shall be signed by the person entitled to receive the plate and by the dealer or the dealer’s authorized agent. A dealer shall ensure that motor vehicle liability insurance is in effect before issuing a 60-day temporary registration plate. If a temporary registration plate is issued to commercial vehicles, the gross weight of the vehicles operating upon the temporary registration plate shall be: The allowable gross weight designated on the application for permanent plates; or If an application for permanent plates has not been submitted to the Administration, the maximum gross weight allowable for that vehicle. If the Administrator finds that the dealer is not complying with the provisions of these regulations or the directives of the Administration, the Administrator may disable the rights of a dealership to issue temporary 60-day registration plates. Applications for a salesman’s license shall be furnished to the Administration by a licensed dealer. A vehicle salesman may not obtain or the Administration may not issue a license under the provisions of the Transportation Article, Annotated Code of Maryland, unless the salesman complies with the requirements set forth in Transportation Article, Title 13 and Title 15, Annotated Code of Maryland and the requirements contained in these regulations, and pays the required fee as set forth in COMAR 11.11.05. A salesman shall buy and sell motor vehicles only for the dealer indicated upon the salesman’s license and may not be licensed by more than one licensed dealer at a given time except that a salesman licensed to act at a: New or used car dealership may act as a vehicle salesman at any new or used dealership that is at least 60 percent owned by the licensed dealer indicated on the salesman’s license; or Wholesale vehicle dealership may act as a vehicle salesman at any wholesale dealership that is at least 60 percent owned by the licensed wholesale dealer indicated on the salesman’s license. The salesman’s license shall be in the possession of the salesman when the salesman is buying or selling motor vehicles and shall be displayed upon request. A salesman shall immediately contact the Administration if there is any factual or material change in the information stated in the salesman’s license. If a license becomes lost, mutilated, illegible, the salesman shall promptly make application to the Administration for the issuance of a duplicate or corrected license, as the case may be. Application shall be made on forms to be supplied by the Administration accompanied by required fees, as set forth in COMAR 11.11.05. A dealer shall notify the Administration of a salesmen’s termination of employment as a salesmen, as set forth in Subtitle 15, Transportation Article, Annotated Code of Maryland. Upon termination of employment the salesman shall return any applicable license to the Administration immediately. If a salesman transfers employment to another dealership, a corrected license shall be issued upon receipt of a properly completed application, the fee as set forth in COMAR 11.11.05, and the invalid license. Criminal Background Check. Upon application for issuance and renewal of a Salesman license an applicant shall furnish the Administration with an official copy of their criminal history record from the Criminal Justice Information System (CJIS) Central Repository of the Department of Public Safety and Correctional Services. The criminal history record shall be dated within 30 days of the submission date. In addition to the other grounds specified in Transportation Article, Title 15 Subtitle 1, Annotated Code of Maryland, for refusal, suspension, or revocation of a license, the Administration may refuse to grant a salesman’s license to any person and may suspend, revoke, or refuse to renew the license of any person if it finds that: The person has been convicted by final judgment in any court of a crime of moral turpitude; or The vehicle sales transactions of the person have been marked by a practice of failure to perform contracts or by fraud or bad faith. An applicant or salesman who requests an administrative hearing for a violation under paragraph (2)(a) above may: Contest whether the applicant or salesman has been convicted by final judgment in any court of a crime of moral turpitude; and Produce evidence to establish convincing proof of the applicant or salesman’s full and complete rehabilitation, and appropriateness for licensure. Suspension of Salesman’s License. A salesman’s license shall be suspended by the Administration upon notification by the Department of Human Services, Child Support Enforcement Administration, that the salesman license holder’s failure to pay child support meets the criteria for suspension of a professional license pursuant to Family Law Article, §10-119.3, Annotated Code of Maryland. The Administration shall immediately reinstate any salesman’s license suspended for failure to pay child support if notified by the Department of Human Services, Child Support Enforcement Administration, that the suspension should be withdrawn. Presentation Requirements. A dealer may not advertise in any manner that is false, deceptive, or misleading or that misrepresents any vehicle offered for sale. Advertisements for the sale of new and used vehicles shall clearly and conspicuously identify the dealership by the corporate name or trade name as it appears on the application for dealer’s license. Advertising statements shall clearly identify the vehicle by manufacturer-designated year, make and model, type, equipment, price, trade-in allowance, terms or other claims. Terms or claims shall be factual and presented clearly and conspicuously. The use of layout, headlines, illustrations, style, sound, length of time, lighting, color, or type of size of an advertisement, or all of the above, may not obscure or make misleading any material fact in advertisement or sales presentation. Price and Vehicle Identification. When the price of a vehicle is quoted, the advertisement shall clearly identify the vehicle as to, including but not limited to, make, year, model and special equipment. A price may not be quoted unless the vehicle or vehicles identified in the advertisement are currently available for sale to the public at the quoted price. The advertised price shall: Be the full delivered cash price, which the customer shall pay, except for taxes and title fees; and In the case of new vehicles, include any dealer processing charge and freight charge, unless the dealer clearly and conspicuously discloses the amount of these charges in the advertisement as required by Transportation Article, §15-311.1, Annotated Code of Maryland. Freight and dealer preparation charges may be excluded from manufacturer’s national advertising campaigns. However, the advertisement shall clearly and conspicuously disclose this fact. Comparative Price and Savings Claims. Retail advertising may not imply that the dealer has a special relationship or connection to the manufacturer that other dealers do not have. Terms such as “wholesale”, “factory sale”, “factory discount”, “factory outlet”, “factory branch”, and similar terms used in connection with the manufacturer’s name (such as “manufacturer’s outlet”) are examples of terms that imply that a dealer has a special relationship or connection to a manufacturer that other dealers do not have. Statements such as “as low as”, “from”, or “priced from” may not be used in connection with the purchase price unless at least one vehicle is specifically identified and the requirements of §B of this regulation are complied with. Advertising, Shipping, and Selling Practices. A vehicle offered for sale as consumer goods at a specific price by a dealer shall be in the possession of the dealer advertiser or be available for shipment to the dealer from the manufacturer or distributor. The vehicle shall be shown, demonstrated, and sold, or if a new vehicle, orders shall be taken for future delivery of the identical model at the advertised price and terms. If the advertised vehicle is a used vehicle, and it has been sold as consumer goods, the dealer advertiser shall substantiate, upon request, sales records of the previously advertised vehicle. A dealer offering a vehicle for sale as consumer goods may not charge the customer a fee for shipment of a used vehicle that is not available on the premises unless the shipping fee is clearly and conspicuously disclosed on a separate form entitled ‘Payment of a Non-Refundable Shipping Fee’, before the customer becomes obligated to pay the fee, on a form with signature of the customer using the language, “I UNDERSTAND THAT THE VEHICLE IS NOT PHYSICALLY PRESENT ON THE PREMISES AT THIS DEALER LOCATION AND WILL HAVE TO BE SHIPPED FROM ANOTHER LOCATION. EXCEPT AS PROVIDED BELOW IN ITEMS (A) THROUGH (D), I AGREE TO PAY THE SPECIFIED AMOUNT (INSERT SPECIFIED FEE), NOT TO EXCEED THE ACTUAL AMOUNT INCURRED BY THE DEALERSHIP AS A SHIPPING FEE, WHETHER OR NOT I AGREE TO PURCHASE THE VEHICLE. I UNDERSTAND THAT THIS FEE IN NO WAY OBLIGATES ME TO PURCHASE THE VEHICLE UPON DELIVERY. I UNDERSTAND THAT THIS FEE IS REFUNDABLE UNDER CERTAIN CIRCUMSTANCES LISTED BELOW: The Vehicle is materially different than advertised; The vehicle contains undisclosed cosmetic damage or mechanical deficiency that the seller will not repair at the seller’s expense; The vehicle contains undisclosed cosmetic damage or mechanical deficiency to the extent that it impacts the retail value classification of the vehicle prior to repairs being made as determined by referencing a nationally recognized vehicle value guide irrespective of the seller making repairs at the seller’s expense; or The vehicle or delivery violates any other provision of federal or state law. Nothing in this section precludes the fee being financed with the sale of the vehicle if the customer elects to purchase the vehicle. Payment of the shipping fee does not obligate the customer to accept and purchase the vehicle in any way. The shipping fee must be refunded if the vehicle: Is materially different than advertised; Contains undisclosed cosmetic damage or a mechanical deficiency that the seller will not repair at the seller’s expense; Contains undisclosed cosmetic damage or a mechanical deficiency to the extent that it impacts the retail value classification of the vehicle prior to repairs being made as determined by referencing a nationally recognized vehicle value guide irrespective of the seller making repairs at the seller’s expense; or The vehicle or delivery violates any other provision of federal or State law. The dealer shall inform the customer of the right to make a complaint with the Administration through use of the Investigative Decision Complaint Form if the customer elects not to purchase the vehicle or returns the vehicle and disagrees with a decision to not issue a refund for shipping charges. The practice of increasing the selling price of a vehicle above that originally quoted to a purchaser, after the purchaser has made an initial deposit or payment, either with money or with a trade-in, or signed contract is prohibited, unless the price is increased by the manufacturer. In this case, the dealer shall substantiate, upon request, evidence of the increase, and the customer shall have the right to cancel the contract. Advertising a vehicle at a price which does not include equipment with which it is fitted or is ordinarily fitted or eliminating any equipment for the purpose of advertising a low price and baiting the customer into charges above the advertised price is prohibited. Advertising the immediate availability of a new vehicle with the intent not to supply reasonable expectable public demand is prohibited unless the advertisement discloses a specific limitation of quantity. Advertising a sale or promotion in connection with the sale of a vehicle shall clearly and conspicuously disclose the expiration date, if any, and any other conditions of the sale or promotion, including but not limited to whether the supply is limited and, if so, in what manner. The advertising of a specific vehicle offered for sale when the advertised vehicle is not in stock on the date of the advertisement is prohibited unless the advertisement states “Not in Stock” or “Order Yours Now” or other phrases of similar import which clearly indicate that the vehicle is not available for immediate delivery and a reasonable estimate of the period of time in which delivery will be made. A dealer is not obligated to refund the shipping fee if the vehicle has been accepted by the customer and the customer has not revoked acceptance within a reasonable period of time. Down Payments, Credit Terms. The amount of the down payment, or the balance after the down payment, may not be stated in such a manner as to permit the impression that it is the selling price of the vehicle. The statement “no money down”, or other similar phrases, means that the advertiser will deliver the vehicle, so described, to the purchaser without any initial payment or other initial obligation in any manner other than negotiating a lien contract for the advertised purchase price. The phrases “no finance charge”, “no carrying charge”, or expressions of similar phrases, may not be used when there is any type of a charge for financed transactions. Advertising shall comply with Regulation Z of the Federal Truth in Lending Act and Federal Trade Commission Act. Advertisements which offer special annual percentage rate financing shall disclose any special conditions or terms which shall be met before the annual percentage rate applies. Discounts, Savings, Rebates, Trade-In Allowances. Advertisement statements which offer discounts, savings, rebates, and guaranteed trades shall: Include the original price as well as the full delivered cash price, which the customer shall pay, except for taxes and title fees; and In the case of new vehicles, the full delivered cash price shall include any dealer processing charge and freight charge, unless the dealer clearly and conspicuously discloses the amount of these charges in the advertisement as required by Transportation Article, §15-311.1, Annotated Code of Maryland. A specific price may not be stated in an advertisement as an offer for a trade-in, if the price so stated is contingent upon the condition, model, or age of the prospective buyer vehicles, without so stating in the advertisement. The use of phrases such as “up to” and “as much as” may not be considered as adequate explanation. Repossessions. The term “repossessed” shall be used only to describe those vehicles legally repossessed as a result of failure of an owner to fulfill the conditions of a lien contract. Advertisers offering repossessed vehicles for sale, upon request, shall offer proof of the repossessions. The amount quoted as an unpaid balance shall be the full selling price unless otherwise stated. Demonstrator Vehicle. Demonstrator vehicles are considered used vehicles if they have been driven for more than 7,500 miles. The term “new” may not be used as an adjective in the direct description of a demonstrator or used vehicle. Except as otherwise provided in §H(5) of this regulation, a dealer shall use the term “demonstrator” when advertising vehicles which meet the definition of that term as found in Regulation .01B(8) of this chapter. Before the sale of a demonstrator vehicle, the dealer shall provide to the retail customer a written disclosure in 10-point type, and separate from the purchase contract document, which states: “THIS VEHICLE IS A DEMONSTRATOR VEHICLE. IT IS A VEHICLE WHICH HAS BEEN USED BY THE EMPLOYEES, OFFICERS OR PRINCIPALS OF THE DEALER, MANUFACTURER OR DISTRIBUTOR, OR FOR CUSTOMER ROAD TESTING. FEDERAL LAW REQUIRES A BUYER’S GUIDE TO BE ATTACHED TO THE SIDE WINDOW OF THIS VEHICLE. YOU ARE WELCOME TO INQUIRE AS TO THE SPECIFIC USAGE OF THE VEHICLE FROM THE DATE OF ITS DELIVERY TO THE DEALER. YOU ARE ALSO WELCOME TO CONDUCT WHATEVER INSPECTION YOU DEEM APPROPRIATE PRIOR TO ENTERING INTO AN AGREEMENT TO PURCHASE THE VEHICLE.” A vehicle which has been a demonstrator shall be advertised as a used vehicle once it has accumulated mileage in excess of 7,500 miles, and the term “demonstrator” may not be used as an adjective in the direct description of the vehicle. However, these vehicles are not required to be registered or titled before transfer to a retail customer. Disclosure of Vehicle Condition. A dealer shall notify the manufacturer of the existence of a nonconformity, defect, or condition as required by Commercial Law Article, §14-1502(f)(1)(i), Annotated Code of Maryland, and shall send a copy of the notification to the Administration as required by Commercial Law Article, §14-1502(f)(1)(i), Annotated Code of Maryland. If a motor vehicle is returned to a manufacturer or factory branch under Commercial Law Article, Title 14, Subtitle 15, Automotive Warranty Enforcement Act, the manufacturer or factory branch shall, upon transfer to a dealer, disclose this information to the dealer. The disclosure shall: Be in writing on a separate piece of paper in 10-point, all capital type; and State in a clear and conspicuous manner: That the vehicle was returned to the manufacturer or factory branch; The nature of the defect, if any; and The condition of the vehicle at the time it was transferred to the dealer. If a vehicle which has been returned to a manufacturer or factory branch is made available for resale by a dealer, the dealer shall provide a copy of the disclosure described in §I(2) of this regulation to the potential purchaser before the sale. After the vehicle is sold, the dealer shall send a copy of the disclosure described in §I(2) of this regulation, signed by the vehicle’s purchaser, to the Administration with the application of title. Vehicle Damage Disclosure. If, before consummating the sale of a vehicle which has never been titled, the vehicle has sustained either body damage or mechanical damage resulting in repairs which exceed 3 percent of the Manufacturer Suggested Retail Price, the dealer shall fully disclose this information in writing to the prospective purchaser. The following apply: The disclosure shall specify who is providing warranty coverage on the replacement parts; and The dealer shall disclose any damage which may affect the: Manufacturer’s warranty; Life expectancy of the vehicle; or Safety of the vehicle. Upon request of the prospective purchaser or purchasers, the dealer shall provide a copy of the repair order illustrating the extent of repairs conducted to repair the damage. If a manufacturer or distributor transfers a vehicle which has never been titled to a dealership, the manufacturer or distributor shall disclose the information contained in §I(2) of this regulation to the dealership, if applicable. A vehicle which has never been titled, but which has been previously delivered to a customer, may be subsequently sold as a new vehicle if the: Vehicle has not been used in a manner so as to destroy its newness; and Buyer is advised, in writing, of: The number of persons to whom the vehicle was previously delivered; The mileage accumulated on the vehicle while it was in the possession of each prior customer; The reason the prior customers returned the vehicle to the dealer; Any other information required by this regulation or any other State or federal law; and A written disclosure in 10-point type and separate from the purchase contract document which states: “PART OR ALL OF THE MILEAGE ON THE ODOMETER OF THIS VEHICLE RESULTED FROM PREVIOUS DELIVERY TO A RETAIL PURCHASER WHO NEVER TOOK TITLE TO THE VEHICLE. FEDERAL LAW REQUIRES A BUYER’S GUIDE TO BE ATTACHED TO THE SIDE WINDOW OF THIS VEHICLE. YOU ARE WELCOME TO INQUIRE AS TO THE SPECIFIC USAGE OF THE VEHICLE FROM THE DATE OF ITS DELIVERY TO THE DEALER. YOU ARE ALSO WELCOME TO CONDUCT WHATEVER INSPECTION YOU DEEM APPROPRIATE PRIOR TO ENTERING INTO AN AGREEMENT TO PURCHASE THE VEHICLE.” Disclosure of Former Vehicle Use. Vehicles formerly used for a purpose other than a consumer good shall be clearly and conspicuously identified as to their former use. This includes, but is not limited to, vehicles formerly used: For public or governmental purposes and normally driven by multiple drivers; As executive driven vehicles; As demonstrators; For driver training; As taxicabs; or As short-term rental vehicles. The word “commercial”, or similar ambiguous terms, may not be used to describe these vehicles. Contracts. A vehicle sales contract or agreement shall be evidenced by an instrument in writing containing all of the agreements of the parties. It shall be signed by all parties before the seller delivers to the buyer the vehicle covered by the agreement. Copy of Instrument. At the time the buyer signs the instrument, the seller shall deliver to him an exact copy of it. Until the buyer signs the instrument and receives a copy of it signed by the seller, the buyer or prospective buyer has an unconditional right to cancel the instrument or order and to receive immediate refund of all down payments or deposits made on account of, or in contemplation of, the agreement or order. Terms of Down Payment. If, under any vehicle sales contract or agreement, the buyer is required to make one or more payments to the seller in addition to any down payments made at the time of the execution of the instrument before the seller is obligated to deliver the goods sold, then the buyer at any time before delivery or tender of the goods by the seller, may cancel the instrument. Thereupon, notwithstanding any provisions of the instrument, the seller shall be obligated to refund to the buyer, within 10 days after notice of the cancellation, an amount equal to at least 90 percent of all payments made by the buyer under the instrument, including any down payment. If the seller has placed an order for special optional equipment, paint, or similar items, or if, at the request of the buyer, the dealer has modified a vehicle which he has in stock, and the vehicle sales contract has been properly signed by all parties attesting to this fact, if the buyer subsequently cancels the contract before delivery or tender of the vehicle, the seller shall refund the down payment within 10 days after notice of the cancellation, less reasonable expenses incurred in the ordering of or the modification of the vehicle. The contract shall clearly disclose that the dealer may retain a portion of the deposit or down payment to cover any reasonable expenses incurred as a result of the cancellation of the contract. When a portion of the down payment or deposit is retained by the seller, the seller shall furnish the buyer with an itemized list reflecting all expenses incurred as a result of the cancellation of the contract. In disputed cases, the Administration shall decide whether the expenses claimed by the seller are reasonable. If, under a vehicle sales contract or agreement, a down payment is made at the time of its execution and the buyer thereby becomes entitled to delivery of the goods before making further payments, then, if the buyer refuses to accept delivery of the goods in accordance with the instrument, all or part of the down payment may be forfeited to the extent provided in the instrument. Cost of Vehicle to be Set Forth. A contract for the sale of any vehicle by a dealer or salesman shall set forth clearly the principal amount of the cost of the vehicle and all interest or other charges made in connection with the sale of the vehicle. Brakes. Dealers shall inform the buyer of a trailer in writing that the trailer brakes shall conform to the requirements of Transportation Article, §22-301, Annotated Code of Maryland. When a purchase order or agreement includes the amount of trade-in allowance, subject to official acceptance and appraisal, that condition shall be clearly and conspicuously stated on the order or agreement. If the order, including the trade-in allowance, has been officially accepted, the trade-in allowance may not be decreased upon re-appraisal unless the condition of the vehicle has been changed due to accident, failure of or damage to major components, or removal or substitution of equipment or accessories. Used vehicle dealers who purchase new vehicles for the purpose of resale shall first have those vehicles titled in this State, paying applicable excise tax based on the purchase price. Before resale, those vehicles shall be inspected at an authorized inspection facility. A dealer who sells a new motor vehicle in this State shall provide to the purchaser a notice that describes the rights and remedies available to consumers under the Maryland Automotive Warranty Enforcement Act, Commercial Law Article, Title 14, subtitle 15, Annotated Code of Maryland. The notice in §A of this regulation shall be: Made available by the Motor Vehicle Administration in a format prescribed by the Administration; Reproduced by the dealer at the dealer’s cost for reproduction; and Given to the purchaser at the time of the sale or delivery of the motor vehicle. Except as provided in Commercial Law Article, §2-316.1(4), a warranty may not contain language which specifically disclaims any implied warranty of merchantability or fitness. Examples of prohibited disclaimers are as follows: “This warranty is expressly in lieu of any other warranty, express or implied, including any implied warranty of merchantability or fitness for a particular purpose, and any other obligations or liabilities on the seller’s part”, or similar language that could be construed by a consumer to limit his recourse to the terms of express warranties. “This vehicle is being sold as is, without any implied or express warranty of merchantability”, or similar language. “Sold used with 50-50 warranty. The dealer hereby guarantees this vehicle for _____ days after ____________, 20____ with the understanding that necessary repairs made within this period of time will be charged half to the buyer and half to the dealer, of total retail cost of parts and labor used,” or similar language. If a vehicle is sold for the purpose of dismantling or rebuilding, the term “rebuilding” means the restoring of a salvage vehicle, as set forth in Transportation Article, §13-506(b), Annotated Code of Maryland, or any vehicle which is inoperable due to the need for major or extensive repairs to the body, frame, suspension, engine, or drive train. If a vehicle is sold for the purpose of dismantling or rebuilding, the dealer may not issue any form of temporary registration permit or temporary plate. A dealer may not transfer a vehicle which contains an odometer reading which does not reflect the actual mileage of the vehicle unless the dealer truthfully informs the transferee in writing: That the odometer reading is not the actual mileage of the vehicle and should not be relied upon; That the odometer reading reflects the amount of mileage in excess of the designed mechanical odometer limit of 99,999 miles/kilometers of the vehicle; That the odometer was repaired or replaced while in the dealer’s possession; That the repaired or replacement odometer was incapable of registering the same mileage as the odometer before repair or replacement; That the odometer was reset to zero; or Of the last known accurate odometer reading. A dealer shall inform the transferee in writing if the dealer knows that the odometer in the vehicle has been altered, set back, disconnected, repaired, or replaced. If the information concerning the odometer for a motor vehicle sold by a dealer is in error under §§A and B of this regulation, the dealer may not be subject to administrative disciplinary action if the dealer did not know, or could not have discovered with reasonable diligence, that the odometer reading or the information provided was incorrect. In determining the degree of administrative disciplinary action for violating §A or B, the Administration shall consider whether the dealer accepts return of the vehicle from the transferee and refunds to the transferee the full purchase price including all excise tax, license fees, registration fees, and any similar governmental charges and any costs incurred by the transferee for repairs resulting from the excess mileage, less: An allowance per mile, as determined by the Internal Revenue Service, for the consumer’s use of the vehicle but not to exceed 15 percent of the purchase price; and A reasonable allowance for damages not attributable to normal wear. When transferring a motor vehicle, a dealer shall comply with Federal Odometer Requirements, 49 CFR Part 580, as amended. In this regulation, “dealer registration plate” means an interchangeable metal license plate used by licensed vehicle dealers, manufacturers, distributors, and factory branches. Display of Dealer Registration Plates by Licensed Dealers. A dealer registration plate may be displayed on a vehicle owned by a licensed dealer and used mainly for the dealer’s business purposes. A dealer registration plate may be displayed on a vehicle not owned by a licensed dealer, but in the possession of the dealer, if the dealer has the consent of the owner of the vehicle to this use. An owner, partner, or officer of the corporation who is listed on the application for a vehicle dealer’s license or any employee of the dealership may operate a vehicle displaying a dealer registration plate, subject to the other conditions of this regulation. A dealer registration plate may be displayed on a vehicle owned by the dealership and operated by a prospective buyer for demonstration purposes for a period of not more than 10 days, provided the prospective buyer has written authorization from the dealership for any use of the vehicle exceeding 1 day. A dealer registration plate may be displayed on a vehicle owned by the dealership and loaned to an educational institution as set forth in Transportation Article, §13-621, Annotated Code of Maryland. Issuance of Dealer Registration Plates by the Administration. Dealers may apply to the Administration for the issuance of dealer registration plates. The Administration may issue up to five dealer registration plates to each licensed dealer in addition to two additional registration plates for each licensed salesman, upon payment of the required fee as set forth in COMAR 11.11.05. For good cause shown, the Administration may issue additional dealer registration plates upon application of the dealer. Each month during the calendar year, a proportionately uniform number of business licenses and salesmen licenses shall be renewed. The Administration shall evaluate from time to time the monthly volume of renewals for the purpose of maintaining relatively uniform workloads. The monthly volume of renewals may be rescheduled by applying different expiration months. Renewals shall be due on or before the last day of the month stated on the license. The license shall be considered suspended if the applicant has not met the requirements, or if the Administration is not in receipt of a properly completed renewal application at the close of business on the last day of the stated renewal month. Service providers electronically transmitting titling and registration information to the Administration as set forth by Transportation Article, §13-610, Annotated Code of Maryland, may charge the transferee of the vehicle a service fee in addition to any fees specified in Transportation Article, §15.311.1, Annotated Code of Maryland, and COMAR 11.11.05. This service fee may not exceed $20 per electronic transmission. Service fees charged under §A of this regulation are retained by the service provider and are not forwarded to the Administration. If a dealer license issued under Regulation .01 of this chapter is voluntarily canceled before the: Beginning of the second full year, the Administration shall refund the fee paid for the second and third license years; or Beginning of the third full year, the Administration shall refund the fee paid for the third license year. Requests for refunds shall be submitted in writing, on forms provided by the Administration, after the cancellation of the registration and before the first day of the second registration year. Commercial Law Article, §14-1502; Transportation Article, §§12-104(b), 13-503, 13-610, 13-621, 15-102,15-103, 15-105, 15-107, 15-108, 15-305.1, 15-307—15-309, 15-311.1, 15-312, 15-313, 15-406, 15-408, 15-409, and 15-411; Annotated Code of Maryland Effective date: February 15, 1973 Regulation .02 amended effective December 1, 1978 (5:24 Md. R. 1798) Regulations .03 and .09 amended effective May 5, 1978 (5:9 Md. R. 685) Regulations .11 and .12C—F amended effective June 15, 1979 (6:12 Md. R. 1051) Regulation .12 amended effective April 6, 1979 (6:7 Md. R. 577) Regulation .12D amended effective December 28, 1979 (6:26 Md. R. 2075) Regulations .13P—S, .14D, .15, and .16 adopted effective February 4, 1976 (3:3 Md. R. 151) Regulation .15A, C amended effective August 25, 1978 (5:17 Md. R. 1331) Regulations .17 and .18 adopted effective May 12, 1976 (3:10 Md. R. 530) Regulation .18 amended effective January 27, 1978 (5:2 Md. R. 64) Regulations .01—.08, .10, .12—.14, .16, and .18 amended effective February 6, 1981 (8:3 Md. R. 227) Regulation .01 amended effective January 1, 1992 (18:25 Md. R. 2752); May 6, 1996 (23:9 Md. R. 670) Regulation .02D amended effective July 28, 1986 (13:15 Md. R. 1734) Regulation .02F amended effective January 21, 1991 (18:1 Md. R. 30) Regulation .02N amended effective June 19, 1995 (22:12 Md. R. 902) Regulation .02O adopted and .04A amended as an emergency provision effective July 18, 1985 (12:16 Md. R. 1602) Regulation .02O adopted and Regulations .02N and .04A amended as an emergency provision effective September 4, 1985 (12:19 Md. R. 1845); adopted permanently effective December 30, 1985 (12:26 Md. R. 2545) Regulation .04 amended as an emergency provision effective September 1, 1988 (15:20 Md. R. 2331); adopted permanently effective December 26, 1988 (15:26 Md. R. 2985) Regulation .05B, E amended effective November 10, 2003 (30:22 Md. R. 1583) Regulation .05D amended effective July 8, 1991 (18:13 Md. R. 1483) Regulation .07-1 adopted effective February 14, 1994 (21:3 Md. R. 194) Regulation .08 amended effective January 1, 1992 (18:25 Md. R. 2752) Regulation .09 amended effective May 28, 1990 (17:10 Md. R. 1220); November 8, 1993 (20:22 Md. R. 1708) Regulation .09A amended effective January 5, 2004 (30:26 Md. R. 1915) Regulation .09C adopted effective August 1, 1994 (21:15 Md. R. 1307) Regulation .11 amended effective May 28, 1990 (17:10 Md. R. 1220); January 5, 2004 (30:26 Md. R. 1915) Regulation .11E amended effective May 18, 1998 (25:10 Md. R. 748) Regulation .12 amended effective May 28, 1990 (17:10 Md. R. 1220); October 29, 2001 (28:21 Md. R. 1857) Regulation .12A amended effective January 1, 1992 (18:25 Md. R. 2752) Regulation .12C amended effective May 18, 1998 (25:10 Md. R. 748) Regulation .13 amended effective June 19, 1995 (22:12 Md. R. 902); January 29, 1996 (23:2 Md. R. 95) Regulation .13A amended effective January 1, 1992 (18:25 Md. R. 2752) Regulation .13E amended effective July 8, 1991 (18:13 Md. R. 1483) Regulation .13J amended effective June 20, 1983 (10:12 Md. R. 1073); January 1, 1992 (18:25 Md. R. 2752) Regulation .13N amended effective June 20, 1983 (10:12 Md. R. 1073); October 17, 1988 (15:21 Md. R. 2468); January 1, 1992 (18:25 Md. R. 2752) Regulation .13P amended effective January 1, 1992 (18:25 Md. R. 2752) Regulation .14 amended effective August 15, 1983 (10:16 Md. R. 1454); May 19, 1986 (13:10 Md. R. 1157); November 8, 1993 (20:22 Md. R. 1708) Regulation .14A, I, K, L amended effective January 2, 1995 (21:26 Md. R. 2189) Regulation .14B, C, D amended effective July 28, 1986 (13:15 Md. R. 1734) Regulation .14C, G amended effective November 22, 2004 (31:23 Md. R. 1654) Regulation .14J amended effective June 19, 1995 (22:12 Md. R. 902) Regulation .14K adopted effective May 2, 1988 (15:9 Md. R. 1109) Regulation .14M adopted effective June 19, 1995 (22:12 Md. R. 902) Regulation .15E adopted effective November 30, 1987 (14:24 Md. R. 2555) Regulation .17 amended effective October 26, 1981 (8:21 Md. R. 1709); February 22, 1999 (26:4 Md. R. 273) Regulation .19 adopted effective September 12, 1983 (10:18 Md. R. 1609) Regulation .19 repealed effective October 15, 2012 (39:20 Md. R. 1307) Regulation .20 adopted effective May 2, 1988 (15:9 Md. R. 1109) Regulation .21 adopted effective August 6, 1990 (17:15 Md. R. 1861) Regulation .21B amended effective October 23, 2006 (33:21 Md. R. 1677) Regulation .21C amended effective January 1, 1992 (18:25 Md. R. 2752) Regulation .22 adopted effective July 8, 1991 (18:13 Md. R. 1483) Regulation .23 adopted effective January 2, 1995 (21:26 Md. R. 2189) Regulation .23A amended effective February 22, 1999 (26:4 Md. R. 274) Regulation .24 adopted effective June 19, 1995 (22:12 Md. R. 902) Regulation .24 repealed effective October 15, 2012 (39:20 Md. R. 1307) Regulation .25 adopted effective May 6, 1996 (23:9 Md. R. 670) Regulations .01—.25 repealed and new Regulations .01—.23 adopted effective March 13, 2017 (44:5 Md. R. 294) Regulation .01B amended effective March 11, 2019 (46:5 Md. R. 306) Regulation .14D amended effective April 14, 2025 (52:7 Md. R. 323) Regulation .22 amended effective March 11, 2019 (46:5 Md. R. 306) In this chapter, the following terms have the meanings indicated. Terms Defined. “Administration” means the Motor Vehicle Administration. “License” means a title service agent's license issued by the Administration under Transportation Article, Title 15, Subtitle 6, Annotated Code of Maryland. “Location” means the fixed location from which the title service agent conducts the activity of a title service agent and which is specified in the application for the license. “Representative” means an employee of the business who acts on behalf of the licensee. “Title service agent” has the meaning stated in Transportation Article, §15-601(c), Annotated Code of Maryland. An individual may not conduct the business of a title service agent unless the individual meets the requirements set forth in this chapter and is licensed. A license may be obtained by submitting to the Administration in the form required by the Administration: An application; Zoning approval, as set forth in Regulation .03B of this chapter; A surety bond as set forth in Regulation .07 of this chapter; and The fee as set forth in COMAR 11.11.05. The Administration may renew licenses every 2 years. A licensed title service agent shall notify the Administration immediately of any change in the information submitted in the original application or a renewal application. Before issuing a license, the Administration shall inspect and approve a title service agent's office. Zoning of a Title Service Agent's Office. The office shall be located in an appropriately zoned location. An applicant for a license shall provide verification of zoning approval, if required by the local jurisdiction, in the form of a zoning certification. A title service agent who does not conduct business with the public at the licensed location may be exempt from local zoning requirements. A title service agent's office shall be equipped with: A secure area for storage of State property; and Telephone service in the name of the title service business. Signs. A title service agent's office shall have, unless prohibited by local ordinances, a sign which shall clearly indicate the type of business conducted at the office. The license shall be displayed in the office. Records Retention. A title service agent shall retain those records relating to the business for a minimum of 3 years. These records shall include, but are not limited to, transaction transmittal forms specified in Regulation .05 of this chapter and those records relating to the collection of: Excise tax; Titling and registration fees; and Other fees collected for the Administration. These records shall identify the: Customer's file number; Customer's name and address; Vehicle's: Make, Year, Vehicle identification number; Type of transaction; and Fees collected for the Administration. The records shall be readily available for inspection by the Administrator or the Administrator's designated representative. A title service agent shall send transactions to the Administration only on a transmittal form furnished by the Administration and in the manner required by the Administration. The Administration shall return a receipted copy of the transmittal form to the title service agent. An applicant for a license shall file with the Administration, per business entity registered with the State Department of Assessments and Taxation, acceptable evidence of a surety bond in such form as the Administration shall approve and with a surety approved by the Administration in the sum set forth in Transportation Article, §15-604, Annotated Code of Maryland. A bonding company shall give the Administration at least 45 days notice by registered or certified mail of the cancellation of a title service agent's bond, and the bond shall be considered to be in full force and effect for a period of at least 45 days after notice is given. When applying for an original or renewal license, a title service agent shall provide the Administration, on a form furnished by the Administration, the names of employees and agents employed by the agent. The Administration shall issue each employee or agent an identification card which authorizes the employee or agent to act on behalf of the title service agent. The title service agent shall immediately surrender to the Administration the identification card of an employee or agent whose employment with the title service agent is terminated. After a hearing held in accordance with the provisions of the Administrative Procedure Act, the Administration may indefinitely suspend or revoke a license granted under the provisions of this chapter if a title service agent: Has perpetrated a fraud against the Administration or the public; Is advertising in such a manner as to imply that the agent is associated with or a part of the Administration or another State agency; or Is conducting the business of a title service agent in a manner which is detrimental to the interests of the Administration or the public. Transportation Article, §§12-104(b), 15-102, 15-103, 15-105, 15-106, 15-108, and 15-604—15-606, Annotated Code of Maryland Effective date: February 15, 1973 Regulation .01C amended effective May 12, 1976 (3:10 Md. R. 529) Regulations .03, .04, and .05 amended effective February 4, 1976 (3:3 Md. R. 152) Chapter revised effective January 23, 1981 (8:2 Md. R. 113) Regulation .02C amended effective July 8, 1991 (18:13 Md. R. 1483) Regulations .01—.05 repealed and new Regulations .01—.08 adopted effective January 29, 1996 (23:2 Md. R. 96) Regulation .03C, D amended effective March 11, 2019 (46:5 Md. R. 306) Regulation .06 amended effective March 11, 2019 (46:5 Md. R. 306) Regulation .06A amended effective October 8, 2018 (45:20 Md. R. 918) A person may not obtain an automotive dismantler and recycler's or scrap processor's license under the applicable provisions of the Transportation Article unless the applicant for the license meets the requirements set forth in this chapter and pays the required fee as set forth in COMAR 11.11.05. Every automotive dismantler and recycler or scrap processor location shall be subject to inspection by an authorized representative of the Administration before the approval of the application. One automotive dismantler and recycler's or scrap processor's license shall be permitted for any one location. Once the location has been licensed, it may not be subdivided for the purpose of establishing other businesses without the prior approval of the Administration. An automotive dismantler and recycler, and scrap processor license shall be issued for a 2-year period. An automotive dismantler and recycler or scrap processor shall use the Administration’s designee’s electronic system for all reporting required under this subtitle or Transportation Article, §15-511, Annotated Code of Maryland. The applicant or licensee, or both, shall have a valid trader’s license. The trader’s license shall be displayed in the office of the licensed business in a conspicuous place. The automotive dismantler and recycler or scrap processor location shall comply with all local ordinances, zoning regulations, and applicable State and federal laws. The office shall be housed at the automotive dismantler and recycler's or scrap processor's fixed location and shall be adequate and appropriate for the business so conducted. The office shall contain at least one desk, chair, and file cabinet and a telephone specifically used for business. The Administration, in the exercise of its administrative discretion, may license scrap processors not geographically located within the boundaries of the State provided that the scrap processor maintains an office in the State that meets the approval of the Administration. The automotive dismantler and recycler or scrap processor license issued by the Administration shall be displayed in a conspicuous place in the office of the automotive dismantler and recycler or scrap processor where the business is conducted. Every licensed automotive dismantler and recycler or scrap processor shall use its business license number on all Administration forms, in the area provided for the number. Scrap processors shall have a scale capable of handling vehicular traffic in addition to the equipment in Transportation Article, § 15-503(b). The Administration may approve other equipment capable of rendering the scrap acceptable to any smelting operation without further processing by the scrap processor. Every licensed automotive dismantler and recycler or scrap processor shall use its business license number when entering information into the Administration’s designee’s electronic system, on all forms, and in all advertisements, including any statements or representations made in any newspaper, pamphlet, circular, other publication, including but not limited to electronic media, radio or television, and in or on any notice, handbill, sign, billboard, poster, bill catalog, letter, or business card. Every vehicle, body, or chassis reported in the Administration’s designee’s electronic system, and which is held for longer than the end of the first business day following the date of the transaction, shall be tagged with a numbered identification device which shall: Be furnished by the Administration; Be fastened securely to the vehicle in such a position as prescribed by the Administration; and Agree with the identification number listed for the vehicle on all forms required by the Administration and in the Administration’s designee’s electronic system. Except as provided in §E(2) of this regulation, a licensed automotive dismantler and recycler or scrap processor shall: Transmit, electronically, to the Administration’s designee, by the end of the first business day following the date of the transaction, information on every vehicle acquired by the licensed automotive dismantler and recycler or scrap processor at the location for which the license was issued; and If not currently conducting business, submit a report of no business by the end of the month, even if there are no vehicles acquired or disposed of during the month. Acquisition of Vehicles By a Scrap Processor From Other Than a Licensed Automotive Dismantler and Recycler. A printout of the notification made in accordance with §C(1) of this regulation, along with the certificate of title of the vehicle, or other documentary evidence of ownership acceptable to the Administration, shall be retained by the scrap processor for a period of 3 years. The Administration shall consider the date of acquisition as the date of destruction of the vehicle. Transfer of a Vehicle From an Automotive Dismantler and Recycler To a Scrap Processor. Upon transfer of a vehicle from an automotive dismantler and recycler to a scrap processor, the automotive dismantler and recycler shall electronically notify the Administration’s designee of the conveyance of ownership. For vehicles that have been flattened or cubed, the scrap processor shall maintain a record of the business license of the automotive dismantler and recycler and the details of the transaction. Vehicles acquired by automotive dismantlers and recyclers that have not been flattened or cubed may not be stored more than two high and shall be stored in a safe and secure manner readily accessible to inspection. Except as provided in Regulation .05E(2) of this chapter, upon taking possession of a vehicle, or before dismantling, destroying, or scrapping the vehicle, an automotive dismantler and recycler or scrap processor must obtain one of the following forms of documentary evidence of ownership: Certificate of Title; Salvage Certificate; For individuals not listed in the records of the Administration as the sole owner of the vehicle, Affidavit of Lawful Possession, accompanied by proof of notification pursuant to Transportation Article, §15-509, Annotated Code of Maryland; For individuals listed in the records of the Administration as the sole owner of the vehicle, or an agent of the owner, Affidavit of Ownership, accompanied by documentation acceptable to the Administration to verify ownership of the vehicle; If the vehicle was acquired from a law enforcement agency at an auction, an auctioneer’s receipt (VR-112) under Transportation Article, §§15-511 and 25-207(f), Annotated Code of Maryland; Certificate of Authority to Dispose of an Abandoned Motor Vehicle to an Automotive Dismantler and Recycler or Scrap Processor (CS-78), authorized by a law enforcement agency under Transportation Article §25-209, Annotated Code of Maryland; or Insurance Affidavit in Lieu of a Title, pursuant to Transportation Article, §13-506, Annotated Code of Maryland. If a license issued under Regulation .01 of this chapter is voluntarily canceled before the beginning of the second full year, the Administration shall refund the fee paid for the second license year. Requests for refunds shall be submitted in writing, on forms provided by the Administration, after the cancellation of the registration and before the first day of the second registration year. Transportation Article, §§12-104(b) and 15-511, Annotated Code of Maryland Effective date: November 19, 1973 Regulation .06A amended effective October 13, 1976 (3:21 Md. R. 1207) Regulation .10 amended effective November 26, 1975 (2:27 Md. R. 1628) Chapter revised effective October 31, 1980 (7:22 Md. R. 2074) Regulation .01A amended effective January 1, 1992 (18:25 Md. R. 2752) Regulation .01E adopted effective May 6, 1996 (23:9 Md. R. 670) Regulation .02 amended effective May 2, 1988 (15:9 Md. R. 1109) Regulation .05B amended effective October 20, 2008 (35:21 Md. R. 1825) Regulation .05C amended effective October 11, 1993 (20:20 Md. R. 1573); October 20, 2008 (35:21 Md. R. 1825) Regulation .08 amended effective April 25, 1994 (21:8 Md. R. 674) Regulation .08A amended effective October 11, 1993 (20:20 Md. R. 1573) Regulation .08B amended effective October 14, 1991 (18:20 Md. R. 2199) Regulation .09 repealed effective October 14, 1991 (18:20 Md. R. 2199) Regulation .09 adopted effective April 25, 1994 (21:8 Md. R. 674) Regulation .10 adopted effective May 6, 1996 (23:9 Md. R. 670) Chapter revised as an emergency provision effective October 1, 2012 (39:21 Md. R. 1376); amended permanently effective February 4, 2013 (40:2 Md. R. 72) Effective date: July 1, 1974 (1:2 Md. R. 114) Regulation .04 amended effective July 6, 1977 (4:14 Md. R. 1082) Regulation .04C amended effective December 10, 1975 (2:28 Md. R. 1680) Regulation .04D amended effective January 1, 1992 (18:25 Md. R. 2752) Regulations .05A—D and .06B, D, H amended effective November 17, 1978 (5:23 Md. R. 1740) Regulation .05B and D amended effective January 1, 1992 (18:25 Md. R. 2752) Regulation .05E amended effective December 10, 1975 (2:28 Md. R. 1680); January 1, 1992 (18:25 Md. R. 2752) Regulation .06D—F amended effective January 1, 1992 (18:25 Md. R. 2752) Regulation .08A amended effective January 1, 1992 (18:25 Md. R. 2752) Regulations .09C and .10 amended effective October 15, 1975 (2:23 Md. R. 1415) Regulation .11C amended effective September 5, 1980 (7:18 Md. R. 1741) Regulation .12A amended effective September 5, 1980 (7:18 Md. R. 1741); January 1, 1992 (18:25 Md. R. 2752) Regulation .13 amended effective July 7, 1976 (3:14 Md. R. 751); July 6, 1977 (4:14 Md. R. 1082) Regulation .13F amended effective July 20, 1981 (8:14 Md. R. 1228) Regulation .17 amended effective June 20, 1983 (10:12 Md. R. 1073) Regulation .18 amended effective October 15, 1975 (2:23 Md. R. 1415) Regulation .18A amended effective January 1, 1992 (18:25 Md. R. 2752) Regulation .18C amended effective May 12, 1976 (3:10 Md. R. 529); September 13, 1982 (9:18 Md. R. 1800) Regulation .19A, B, D amended effective November 17, 1978 (5:23 Md. R. 1740) Regulation .19B—D amended effective January 1, 1992 (18:25 Md. R. 2752) Regulation .19E amended effective November 4, 1977 (4:23 Md. R. 1735); November 23, 1981 (8:23 Md. R. 1857); January 1, 1992 (18:25 Md. R. 2752) Regulation .20 amended effective September 22, 1978 (5:19 Md. R. 1446)Regulation .20B amended effective October 15, 1975 (2:23 Md. R. 1415) Regulation .21 amended effective May 30, 1980 (7:11 Md. R. 1039) Regulation .21B amended effective November 17, 1978 (5:23 Md. R. 1740); October 17, 1980 (7:21 Md. R. 1995); January 1, 1992 (18:25 Md. R. 2752) Regulation .21E amended effective October 17, 1980 (7:21 Md. R. 1995); November 23, 1981 (8:23 Md. R. 1857); January 1, 1992 (18:25 Md. R. 2752) Regulation .21F adopted effective January 1, 1992 (18:25 Md. R. 2752) Regulation .22 amended effective June 20, 1983 (10:12 Md. R. 1073) Regulation .23 amended effective June 30, 1978 (5:13 Md. R. 1064) Regulation .31A amended effective December 23, 1991 (18:25 Md. R. 2752) Regulation .31B amended effective July 29, 1985 (12:15 Md. R. 1521) Regulation .33 amended effective May 12, 1976 (3:10 Md. R. 529); January 1, 1992 (18:25 Md. R. 2752) Regulation .34A—D, F amended effective September 5, 1980 (7:18 Md. R. 1741) Regulation .34D amended effective July 29, 1985 (12:15 Md. R. 1521); July 23, 1990 (17:14 Md. R. 1758) Regulation .34E, F repealed effective July 23, 1990 (17:14 Md. R. 1758) Regulation .35B, C amended effective July 23, 1990 (17:14 Md. R. 1758) Regulation .36 amended effective July 23, 1990 (17:14 Md. R. 1758) Regulation .39 adopted effective January 13, 1978 (5:1 Md. R. 19) Regulation .39E amended effective November 23, 1981 (8:23 Md. R. 1857); January 1, 1992 (18:25 Md. R. 2752) Chapter revised effective July 4, 1994 (21:13 Md. R. 1158) Regulation .06C amended effective April 22, 1996 (23:8 Md. R. 606) Regulation .08A amended effective December 2, 1996 (23:24 Md. R. 1683) Chapter repealed effective July 1, 2001 (28:9 Md. R. 885) In this chapter, the following terms have the meanings indicated. Terms Defined. “Administration” means the Motor Vehicle Administration. “Applicant” means the person requesting inspection of public records. “Custodian” means an authorized person employed by the Division, having personal custody and control of records of an individual in an occupation or profession licensed by the Administration. “Division” means the Administration’s Division of Business Licensing and Consumer Services. “Occupation or profession” means a business, an occupation, or a profession for which an individual would be required to be licensed by the Administration under Transportation Article, Title 15, Annotated Code of Maryland. “Person in interest” means the person that is the subject of the public record. Without a compelling public purpose, the custodian shall deny inspection of that part of a record that contains information about the licensing of an occupation or profession except as provided by General Provisions Article, §4-333(b), Annotated Code of Maryland. The custodian may permit inspection of records other than those allowed under General Provisions Article, §4-333(b), Annotated Code of Maryland, if a compelling public purpose can be demonstrated. A compelling public purpose can be demonstrated under General Provisions Article, §4-333(b), Annotated Code of Maryland, if the applicant: Has entered into, or contemplates entering into, a contract with the person in interest; Is a federal, state, or local governmental agency; Has filed a complaint with the Administration against the person in interest; Has filed a surety bond claim against the surety of the person in interest; or Is investigating a claim against the surety for a bond provided by the person in interest. If the custodian finds that a compelling purpose has been demonstrated and allows inspection of records other than those permitted by General Provisions Article, §4-333(b), Annotated Code of Maryland, the custodian may only permit inspection of the following: If the applicant demonstrates a compelling public purpose under Regulation .04A, D, or E, the custodian may disclose records of: The number, nature, and administrative status of complaints filed with the Administration against the person in interest; The number, nature, and status of claims filed with the surety against the person in interest; and Reports of investigations and the results of those investigations pertaining to the complaints or claims disclosed under §A(1) or (2), of this regulation; If the applicant demonstrates a compelling public purpose under Regulation .04C, the custodian may disclose only those records regarding information which pertains to the complaint filed by the applicant; If the applicant demonstrates a compelling public purpose under Regulation .04B, the custodian shall permit inspection pursuant to Transportation Article, §12-111(b)(3), Annotated Code of Maryland. Disclosure of a record allowed for under this chapter is subject to the provisions of General Provisions Article, Title 4, Annotated Code of Maryland. General Provisions Article, Title 4; Transportation Article, §§12-104(b) and 12-111; Annotated Code of Maryland Effective date: August 20, 1990 (17:16 Md. R. 1991) Regulation .01B amended effective February 24, 2020 (47:4 Md. R. 261) Regulation .02 amended effective February 24, 2020 (47:4 Md. R. 261) Regulation .03 amended effective February 24, 2020 (47:4 Md. R. 261) Regulation .04 amended effective February 24, 2020 (47:4 Md. R. 261) Regulation .05 amended effective February 24, 2020 (47:4 Md. R. 261) Regulation .06 amended effective February 24, 2020 (47:4 Md. R. 261) The purpose of this chapter is to establish: Qualifications for employees designated under Transportation Article, §12-104.1, Annotated Code of Maryland, including prerequisites of character, training, experience, and education; and Standards for the performance of the duties assigned to employees designated under Transportation Article, §12-104.1, Annotated Code of Maryland. In this chapter, the following terms have the meanings indicated. Terms Defined. “Administrator” means the Administrator of the Maryland Motor Vehicle Administration or the Administrator's designated representative. “Citation” means a document issued under the authority of Transportation Article, §26-201, Annotated Code of Maryland, for violations of the following provisions: Transportation Article, Title 13, Annotated Code of Maryland, relating to: The vehicle excise tax, Vehicle titling and registration, Special registration plates for individuals with disabilities, and Parking permits for individuals with disabilities; Transportation Article, Title 14, Annotated Code of Maryland, relating to falsified, altered, or forged documents and plates; Transportation Article, Title 15, Annotated Code of Maryland, relating to unlicensed business activity, and §§15-113 and 15-113.1, relating to maintenance of and access to required business records; Transportation Article, Title 16, Annotated Code of Maryland, relating to: Unlawful application for a driver's license, and Vehicle operation during periods of cancellation, revocation, or suspension of a driver's license; Transportation Article, Title 17, Annotated Code of Maryland, relating to required security; and Transportation Article, Title 21, Annotated Code of Maryland, relating to special residential parking permits issued by the Administration. “Enforcement agent” means any person authorized to issue a citation under these regulations or Transportation Article, §12-104.1, Annotated Code of Maryland. The Administrator may: Designate employees of the Investigative Division of the Motor Vehicle Administration as enforcement agents who shall be empowered to issue citations under the authority of Transportation Article, § 12-104.1, Annotated Code of Maryland; and For good cause, remove the authority to issue citations granted to a person authorized as an enforcement agent. Character. A person designated as an enforcement agent shall successfully pass a preemployment background investigation and may not have been convicted of a felony. A person designated as an enforcement agent who fails to maintain a good character shall be immediately relieved of the authority to issue citations under Transportation Article, § 12-104.1, Annotated Code of Maryland, and may not be reinstated as an enforcement agent without the express authority of the Administrator. Training. A person designated as an enforcement agent shall be trained: In all provisions of the Transportation Article, Annotated Code of Maryland, with particular emphasis on Titles 11, 13, 17, and 26; In the preparation of citations, by an instructor who has been certified by the Maryland Police Training Commission; and In courtroom procedures. Experience and Education. A person to be designated as an enforcement agent shall have a minimum of 3 years experience in an investigative or law enforcement capacity, or shall have satisfactorily completed a minimum of 3 years at an accredited college or university. Employees designated as enforcement agents under Transportation Article, § 12-104.1, Annotated Code of Maryland, and these regulations shall: Conduct themselves in such a manner as to bring credit both to themselves and to the Motor Vehicle Administration; Conduct themselves in a reasonable manner so as to avoid confrontations which may lead to personal injury or embarrassment to the Motor Vehicle Administration; and Continually keep abreast of changes to all aspects of the law, regulations, and policies which may impact on their duties. Transportation Article, §§12-104(b), 12-104.1 and 26-201, Annotated Code of Maryland Effective date: December 9, 1991 (18:24 Md. R. 2644) Regulation .02B amended effective November 17, 1997 (24:23 Md. R. 1611); October 16, 2000 (27:20 Md. R. 1841) In determining whether to impose an administrative fine on a licensee for any violation under Transportation Article, Title 15, Annotated Code of Maryland, the Administration shall consider: The seriousness of the violation; The deleterious effect of the violation on others; Any acts of good faith on the part of the licensee; The licensee's history of previous violations; and Previous counseling or reprimands on the issues under consideration; Failure to submit title and registration data, fees, and taxes may result in a standard fine which is assessed at a rate of: For a tag and title service that submits transaction information later than required by the contract between the tag and title service and the Administration, the standard fine shall be: For the first late day after the requirement to submit by contract, $30; and Increased by $1 per day thereafter. For a dealership that submits transaction information later than 30 days after the transaction date, the standard fine shall be: For the first day after 30 days, $30; and Increased by $1 per day thereafter. Fines levied in §B of this regulation are the standard fines and can be adjusted as determined by the Administration based on circumstance. Nothing in this section limits additional administrative action as determined by the Administration including license suspension and revocation. Transportation Article, §§12-104(b), 15-110.1, 15-212, 15-315, 15-514, 15-607, 15-710, and 15-807, Annotated Code of Maryland Effective date: March 20, 2000 (27:5 Md. R. 585) Regulation .01B amended effective March 30, 2026 (53:6 Md. R. 291) Regulation .01C adopted effective March 30, 2026 (53:6 Md. R. 291) Effective date: July 1, 2001 (28:9 Md. R. 885) Regulation .03B amended effective December 18, 2006 (33:25 Md. R. 1952) Regulation .11A amended effective December 18, 2006 (33:25 Md. R. 1952) Regulation .12A amended effective December 18, 2006 (33:25 Md. R. 1952) Regulation .13K, L adopted effective December 18, 2006 (33:25 Md. R. 1952) Regulation .29A amended effective December 18, 2006 (33:25 Md. R. 1952) Regulation .33E amended effective December 18, 2006 (33:25 Md. R. 1952) Regulation .34D amended effective December 18, 2006 (33:25 Md. R. 1952) Regulation .40D amended effective December 18, 2006 (33:25 Md. R. 1952) Chapter, Driver Education Program, repealed effective November 21, 2008 (35:23 Md. R. 2013) Driver rehabilitation and educational programs authorized under Transportation Article, §§16-212 and 16-212.1, Annotated Code of Maryland, are conducted by the Administration or through a private provider approved by the Administration. The programs include driver improvement programs (DIP) and 3-hour alcohol and drug education programs (3-Hour ADEP). In this chapter, the following terms have the meanings indicated. Terms Defined. “Administration” means the Motor Vehicle Administration. “Alcohol and Drug Abuse Administration” means the agency within the Maryland Department of Health that approves and certifies programs for the prevention and treatment of alcohol and drug abuse. “Alternate format” means a program approved by the Administration, which is taught with web-based or other electronic learning tools. “Alternate format provider” means a provider approved by the Administration to provide a program under Regulation .01 of this chapter in both classroom and alternate formats. “Attend” means to complete all: The classroom units of instruction in the approved curriculum and pass the end of program test; or Instructional units of the approved curriculum presented in an alternate format and pass the end of program test. “Classroom format” means a program conducted with the participant and an approved instructor in a classroom setting approved by the Administration. “DIP” means a driver improvement program approved by the Administration to provide driver rehabilitation and education. “Program” means a driver rehabilitation and education program authorized under Transportation Article, §§16-212 and 16-212.1, Annotated Code of Maryland, and this chapter. “Provider” means a business entity, organization, or individual approved by the Administration to conduct driver rehabilitation and educational programs. "3-Hour ADEP" means a 3-hour alcohol and drug education program approved by the Administration and the Alcohol and Drug Abuse Administration to provide alcohol and drug education. A business entity, organization, or individual requesting approval to provide driver rehabilitation and education programs under this chapter shall submit to the Administration an application for approval. An application shall be submitted for each rehabilitation and education program to be provided and a separate application is required for each program being presented in an alternate format. The Administration shall require a business entity, organization, or individual requesting approval to provide any of the programs under Regulation .01 of this chapter to sign an agreement stating that they will comply with this chapter and indicating the term of the approval period. A provider shall: Comply with all State and local requirements to be licensed and authorized to do business in Maryland; Submit documentation acceptable to the Administration that the business office used to conduct business and the classrooms used to conduct courses or to administer tests meet all State and local building, zoning, fire, and safety regulations, codes, and standards for use as an office or classroom; Have no past due tax or other financial obligations due to Maryland; Maintain at least one business office, approved by the Administration, which: Is located within the borders of Maryland; Has posted business hours; and The Administration and customers may access during the posted business hours without prior notice; Have at least one classroom located within the borders of Maryland that has been inspected and certified to meet all required State and local building, zoning, fire, and safety regulations, codes, and standards including an up-to-date posted certificate identifying the maximum occupant capacity; Pay all application fees set forth in Regulation .05 of this chapter at the time the application is submitted to the Administration; and Designate the individuals authorized to transmit DIP and 3-Hour ADEP completion information to the Administration, and shall ensure that these individuals complete the Administration's authorization forms. Operating Requirements. The provider shall: Use only instructors approved by the Administration for the specific program to be presented; Use only the curriculums, instructional materials, quizzes, tests, and forms approved by the Administration; Make operation and participant completion records available for inspection by the Administration's representatives without notice during the provider's posted business hours; Comply with the requirements of all applicable local, State, and federal anti-discrimination laws and regulations, including but not limited to, the Americans with Disabilities Act (ADA); Enroll provisional driver's license holders younger than 18 years old in only the classroom format for DIP; and Transmit DIP participant completion information to the Administration within 24 hours of completing the programs. Information Requirements. Before enrollment, the provider shall make available the following information in writing, or in electronic format for alternate format programs, to program participants: Classroom and testing locations, dates, and times; The provider's established policy regarding program: Cancellations and postponements; and Course fees, payment methods, refunds, and any retest fees; and Notice that the: Updating of the participant's driving record is dependent on the provider transmitting the DIP completion information to the Administration within 24 hours of completing the program; and Administration may not remove a suspension or reinstate the participant's driving privilege until the provider submits the program completion information updates to the participant's driving record in those cases where a letter of assignment to the DIP was issued by the Administration. Information Security and Documentation Retention Requirements. A provider shall: Identify, to the Administration, the individuals that will be authorized to transmit DIP and 3-Hour ADEP completion information to the Administration and ensure that the individuals are approved before conducting a DIP or 3-Hour ADEP; Notify the Administration within 24 hours if the individual authorized to transmit data to the Administration is no longer employed by the provider or no longer authorized to transmit completion information to the Administration; Accept full responsibility and indemnify the Administration for all claims by program participants when the provider fails to: Notify the Administration within 24 hours of the successful completion of the program by the participant; or Correct errors in transmitted participant completion information within 24 hours of notification by the Administration; Retain electronically or in paper format all participant enrollment, participation, and completion records for at least 3 years from the participant's completion date; and Secure all program records, including testing materials and answer templates in a manner acceptable to the Administration that protects the participant's privacy and ensures the integrity of the testing materials. Additional Requirements for DIP Providers. A provider of DIP shall: Require each participant in a DIP to present a government issued driver's license or photo identification card; Require all participants enrolling in a DIP to present the Administration's letter of assignment to the program, if applicable, at the time of: Enrollment if the participant is completing a classroom format program; or Final testing if using an alternate program format; Issue a certification of program completion to participants who successfully complete the program in a format required by the Administration that includes the: Provider's name, address, and phone number, and the Administration's provider identification number; Participant's full name as it appears on the assignment letter, driver's license, or photo identification card; Participant's driver's license number; Date the program was completed; and Location where the program was completed; Submit electronically to the Administration the participant's completion reports within 24 hours after completion of the program; Correct all electronically submitted participant completion reports and re-submit to the Administration within 24-hours of discovery; Schedule a retest date with the participant at the time the individual fails the end of program test; Verify course completion before administering the final test; Notify the Administration 48 hours in advance of any non-emergency change in operational hours; and Notify the Administration before making any changes in a program. The final test in §F(1)(g) of this regulation shall contain at least 20 questions from the pool of 100 questions provided by the Administration. The pool of questions shall be used to create multiple and distinctly different tests to ensure that a test is not repeated until after a fourth retest. A provider of DIP may not: Issue a certification of completion to a participant who has not scored at least an 80 percent on the end of program test; or Allow a participant who fails the end of program test to retake the test on the same day the test is failed. Additional Requirements for DIP and Alternate Format Providers. Alternate format providers shall meet the additional requirements of this section. The provider shall first be approved by the Administration as a classroom format provider for DIP in Maryland for 2 years before applying to the Administration to provide an alternate format DIP. All alternate format programs shall be offered through a secure website with an active security certificate acceptable to the Administration. The provider shall allow the Administration to access and monitor, at no cost, their alternate format programs. Alternate format programs shall require participants: To achieve a minimum score of 80 percent on the end of unit quizzes before moving to the next unit of instruction; and That do not achieve the 80 percent score on the unit quiz to repeat the unit before retaking the quiz. The end of program test alternate format programs shall occur only in a classroom setting approved by the Administration. The alternate provider may not allow a participant to retake the end of program test on the same day the test is failed. A provider may not permit a provisional driver's license holder younger than 18 years old to participate in an alternate format program. The alternate format provider shall have a help desk that participants can contact by phone, email, or facsimile if they are having a problem with the provider's electronic site or have questions regarding the programs. An Administration approved instructor shall respond to the participant for curriculum related issues by phone, email, or facsimile within 24 hours of being contacted by the participant. The provider's help desk service shall be available between the hours of noon and midnight, 7 days a week, 365 days a year, excluding Maryland State holidays as defined in State Personnel and Pensions Article, §9-201, Annotated Code of Maryland. If the 24-hour deadline occurs on a State holiday, the provider's deadline for response is extended another 24 hours. This information shall be provided to individuals before enrollment. The provider's program site shall be visually stimulating and interactive with enhancements such as simulations, sample assessment questions, and multimedia experiences. The provider's program site may not contain scanned snapshots of the Administration's approved curriculum. The provider's program site shall have clear images and a user-friendly layout. Additional Documentation Requirements for 3-Hour ADEP Providers. A 3-Hour ADEP provider shall: Issue a certification of program completion to participants who successfully complete the program, in the manner and format required by the Administration that includes the: Provider's name, address, and phone number, and the Administration's provider identification number; Participant's full name and date of birth; Participant’s signature; Date of completion; and Location where the program was completed; Provide information regarding the program, instructors, and participants at the Administration's request and in the format established by the Administration; Use only instructors approved by the Administration and the Alcohol and Drug Abuse Administration; and Acknowledge that 3-Hour ADEP providers and instructors are also subject to regulations by the Alcohol and Drug Abuse Administration. Additional Requirements for 3-Hour ADEP Alternate Format Provider. Alternate format providers shall meet the additional requirements of this section. The provider shall first be approved by the Administration as a classroom format provider for 3-Hour ADEP in Maryland for 2 years before applying to the Administration to provide an alternate format 3-Hour ADEP. All alternate format programs shall be offered through a secure website with an active security certificate acceptable to the Administration. The provider shall allow the Administration to access and monitor, at no cost, their alternate format programs. The provider shall construct an end of unit quiz for each section of the 3-Hour ADEP that: Consists of a minimum of five questions for each quiz; Does not duplicate questions from other quizzes; and Does not duplicate questions from the final program exam. Alternate format programs shall require participants: To achieve a minimum score of 80 percent on the end of unit quizzes before moving to the next unit of instruction; and That do not achieve the 80 percent score on the unit quiz to repeat the unit before retaking the quiz. The end of program test for 3-Hour ADEP alternate format programs shall occur only in a classroom setting approved by the Administration. The alternate 3-Hour ADEP provider may not allow a participant to retake the end of program test on the same day the test is failed. The alternate format provider for 3-Hour ADEP shall have a help desk that participants can contact by phone, email, or facsimile if they are having a problem with the provider's electronic site or have questions regarding the programs. An Administration approved instructor shall respond to the participant for curriculum related issues by phone, email, or facsimile within 24 hours of being contacted by the participant. The provider's help desk service shall be available between the hours of noon and midnight, 7 days a week, 365 days a year, excluding Maryland State holidays as defined in State Personnel and Pensions Article, §9-201, Annotated Code of Maryland. If the 24-hour deadline occurs on a State holiday, the provider's deadline for response is extended another 24 hours. This information shall be provided to individuals before enrollment. The provider's program site shall be visually stimulating and interactive with enhancements such as simulations, sample assessment questions, and multimedia experiences. The provider's program site may not contain scanned snapshots of the Administration's approved curriculum. The provider's program site shall have clear images and a user-friendly layout. Application Fee. An application fee under this chapter shall be established by the Administration. The application fee shall be submitted with each DIP and 3-Hour ADEP application. Application fees submitted to the Administration under this regulation are nonrefundable and are only applicable to DIP and 3-Hour ADEP. Fees Charged by Providers. Program providers may establish and collect a reasonable fee for providing DIP and 3-Hour ADEP. Fees shall be collected for alternate format programs after the completion of the alternate format curriculum and before the end of program test. Fees for classroom format programs shall be collected at the time of enrollment. A provider shall issue a refund within 48 hours to a participant when the Administration determines a participant is entitled to a full or partial refund. An individual applying for approval to be a DIP instructor shall: Be 21 years old or older; Be a graduate from a standard high school or possess a state high school equivalence certificate; Have a valid driver's license, issued by Maryland or another state, without any alcohol, ignition interlock, or work-only or education-only restrictions; Have less than five active points on their driving record; Successfully complete, as of March 2008, an Administration approved DIP instructor certification course for DIP instructors or the required instructor training set forth in §B of this regulation for 3-Hours ADEP; Have no outstanding charges or convictions of any crime of moral turpitude, unless acceptable evidence is presented to the Administration that satisfactory rehabilitation has taken place for the charge or conviction; and Have no sex offense convictions or charges. 3-Hour Alcohol and Drug Education Program Instructors. In addition to the requirements set forth in §A of this regulation, a 3-Hour ADEP instructor shall: Complete a course on the effects of alcohol and drugs, or an equivalent course as specified by the Office of Education and Training for Addictions Services, Maryland Department of Health; Be approved by the Alcohol and Drug Abuse Administration to instruct an alcohol and drug education program; or Complete the 3-Hour Alcohol and Drug Education instructor program approved by both the Administration and the Alcohol and Drug Abuse Administration. The Administration may waive all or part of the required instructor training for persons certified by the Maryland State Board of Education as teachers. An individual approved by the Administration to teach DIP before March 2008 is not required to complete the DIP instructor certification course if the individual: Is currently approved by the Administration as a DIP instructor; and Has taught at least one DIP course each year for the last 3 consecutive years. Instructor's Driver Records. An instructor of a program under this chapter shall maintain a satisfactory driving record while approved to teach the DIP and 3-Hour ADEP. An Administration approved provider for the DIP and 3-Hour ADEP is responsible for: Monitoring the instructor's driver record; Immediately notifying the instructor if the instructor's driving record is unsatisfactory; Not scheduling an instructor with an unsatisfactory driving record to teach DIP or 3-Hour ADEP; and Notifying the Administration by letter, email, or facsimile of the action taken by the provider against the instructor. The instructor's driving record is unsatisfactory when the instructor has: Been convicted of driving offenses, in this or any other state, that if such a conviction occurred in Maryland would result in an accumulation of five or more points on the instructor's driving record; Been charged or convicted of an offense involving alcohol, drugs, or controlled dangerous substances while operating a motor vehicle; Been charged or convicted of any felony involving the use of a motor vehicle; or Had their driving privileges canceled, suspended, revoked, or subject to alcohol, ignition interlock, work-only, or education-only restrictions. The approval period for a provider to offer a program under Regulation .01 of this chapter shall be identified in the agreement established in Regulation .04 of this chapter and may not exceed 2 years from the date of approval by the Administration, unless otherwise extended by the Administration through an addendum to the agreement. Approval to offer any program under Regulation .01 of this chapter automatically expires at the end of the approval period as identified in the agreement, unless renewed by the Administration in accordance with the requirements of this chapter. The Administration may terminate its approval and agreement for a provider to offer any program at any time if the provider fails to comply with any of the requirements set forth in this chapter or in the agreement. The Administration may terminate its approval of an instructor at any time if the instructor fails to meet, or fails to continue to meet, the requirements of Regulation .06 of this chapter. To maintain approval as a DIP or 3-Hour ADEP instructor, an individual shall teach at least two DIP programs each year. A provider who requests to renew its approval to offer any of the programs under Regulation .01 of this chapter shall submit a renewal application with the fee, sign the Administrator's agreement, and provide documentation required by the Administration regarding the business office, classroom, Internet format, and approved instructors, not less than 30 days before the end of the approval period. A separate renewal application shall be submitted for each program or format the provider requests to continue to offer. The Administration may combine all or part of the renewal applications on the same form. Transportation Article, §§12-104(b), 16-103.1, 16-206, 16-212, 16-212.1, 16-404, Annotated Code of Maryland Effective date: March 1, 2008 (35:2 Md. R. 127) Regulation .01 amended effective April 30, 2012 (39:8 Md. R. 536) Regulation .02B amended effective April 30, 2012 (39:8 Md. R. 536) Regulation .04 amended effective April 30, 2012 (39:8 Md. R. 536) Regulation .05 amended effective April 30, 2012 (39:8 Md. R. 536) Regulation .06 amended effective April 30, 2012 (39:8 Md. R. 536) Regulation .07E amended effective April 30, 2012 (39:8 Md. R. 536)