# COMAR Title 11 — Department of Transportation

## Subtitle 12 — Motor Vehicle Administration — Licensing of Businesses and Occupations

### Chapter 03 — Automotive Dismantlers and Recyclers, and Scrap Processors

**Authority:** Transportation Article, §§12-104(b) and 15-511, Annotated Code of Maryland

**Administrative History:** Effective date: November 19, 1973

**Administrative History:** Regulation .06A amended effective October 13, 1976 (3:21 Md. R. 1207)

**Administrative History:** Regulation .10 amended effective November 26, 1975 (2:27 Md. R. 1628)

**Administrative History:** Chapter revised effective October 31, 1980 (7:22 Md. R. 2074)

**Administrative History:** Regulation .01A amended effective January 1, 1992 (18:25 Md. R. 2752)

**Administrative History:** Regulation .01E adopted effective May 6, 1996 (23:9 Md. R. 670)

**Administrative History:** Regulation .02 amended effective May 2, 1988 (15:9 Md. R. 1109)

**Administrative History:** Regulation .05B amended effective October 20, 2008 (35:21 Md. R. 1825)

**Administrative History:** Regulation .05C amended effective October 11, 1993 (20:20 Md. R. 1573); October 20, 2008 (35:21 Md. R. 1825)

**Administrative History:** Regulation .08 amended effective April 25, 1994 (21:8 Md. R. 674)

**Administrative History:** Regulation .08A amended effective October 11, 1993 (20:20 Md. R. 1573)

**Administrative History:** Regulation .08B amended effective October 14, 1991 (18:20 Md. R. 2199)

**Administrative History:** Regulation .09 repealed effective October 14, 1991 (18:20 Md. R. 2199)

**Administrative History:** Regulation .09 adopted effective April 25, 1994 (21:8 Md. R. 674)

**Administrative History:** Regulation .10 adopted effective May 6, 1996 (23:9 Md. R. 670)

**Administrative History:** 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)

#### Regulation .01 Licensing of Automotive Dismantlers and Recyclers, and Scrap Processors.

*COMAR 11.12.03.01*

A. 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.

B. 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.

C. One automotive dismantler and recycler's or scrap processor's license shall be permitted for any one location.

D. 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.

E. An automotive dismantler and recycler, and scrap processor license shall be issued for a 2-year period.

F. 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.

#### Regulation .02 Trader’s License, Zoning, and Locations Adjoining Water or in a Flood Plain.

*COMAR 11.12.03.02*

A. 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.

B. The automotive dismantler and recycler or scrap processor location shall comply with all local ordinances, zoning regulations, and applicable State and federal laws.

#### Regulation .03 Office Requirements.

*COMAR 11.12.03.03*

A. 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.

B. The office shall contain at least one desk, chair, and file cabinet and a telephone specifically used for business.

C. 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.

D. 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.

E. 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.

#### Regulation .04 Necessary Equipment for Scrap Processor.

*COMAR 11.12.03.04*

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.

#### Regulation .05 Inventory Reporting and Vehicle Identification Device.

*COMAR 11.12.03.05*

A. 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.

B. 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:

  (1) Be furnished by the Administration;

  (2) Be fastened securely to the vehicle in such a position as prescribed by the Administration; and

  (3) 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.

C. Except as provided in §E(2) of this regulation, a licensed automotive dismantler and recycler or scrap processor shall:

  (1) 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

  (2) 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.

D. Acquisition of Vehicles By a Scrap Processor From Other Than a Licensed Automotive Dismantler and Recycler.

  (1) 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.

  (2) The Administration shall consider the date of acquisition as the date of destruction of the vehicle.

E. Transfer of a Vehicle From an Automotive Dismantler and Recycler To a Scrap Processor.

  (1) 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.

  (2) 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.

#### Regulation .06 Storage.

*COMAR 11.12.03.06*

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.

#### Regulation .07 Acceptable Forms of Documentary Evidence of Ownership.

*COMAR 11.12.03.07*

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:

A. Certificate of Title;

B. Salvage Certificate;

C. 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;

D. 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;

E. 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;

F. 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

G. Insurance Affidavit in Lieu of a Title, pursuant to Transportation Article, §13-506, Annotated Code of Maryland.

#### Regulation .08 Refund of Licensing Fees.

*COMAR 11.12.03.08*

A. 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.

B. 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.