Chapter 24. Proportional Registration of Rental Vehicles
Regulation .01 Purpose.LinkCopy Citation
It is the purpose of these regulations to promote and encourage the fullest possible use of the highway system, and recognize the benefits which accrue to the economy of this State from the uninterrupted flow of commerce by authorizing the proportional registration of fleets of rental vehicles and extending reciprocity to properly registered fleets.
Regulation .02 Scope.LinkCopy Citation
The provisions of these regulations extend to fleets of rental vehicles that are rented or offered for rental without drivers.
Regulation .03 Definitions.LinkCopy Citation
A.
In these regulations, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Administration” means the Motor Vehicle Administration.
(2)
“Owner” means a person in whose name or names a vehicle is properly registered.
(3)
“Person” means an individual, receiver, trustee, guardian, executor, administrator, fiduciary, or representative of any kind and any partnership, firm, association, public or private corporation, or other entity.
(4)
“Preceding year” means the period of 12 consecutive months immediately before September 1st of the year immediately preceding the beginning of the registration year for which proportional registration is sought.
(5)
“Rental fleet” means five or more rental vehicles which are rented or offered for rent without drivers and are designated by a rental owner as a rental fleet.
(6)
“Rental owner” means an owner principally engaged, with respect to one or more rental fleets, in renting or offering for re-rental to others the vehicles of these fleets without drivers.
(7)
“Rental vehicle” means any vehicle that is part of a rental fleet.
(8)
“Renting” means the giving or possession and control of a rental vehicle for valuable consideration for a specified period of time not to exceed 180 days.
(9)
“State” means a state of the United States, the District of Columbia, or a province or territory of Canada.
Regulation .04 Reciprocity Extended to Rental Vehicles.LinkCopy Citation
A rental vehicle owned by any person, and which travels in interstate service, shall be extended full privileges to operate on highways in this State if the:
A.
Vehicles of the rental fleet are titled and registered in Maryland;
B.
Rental fleet is titled and registered in accordance with the provisions of Regulation .05; or
C.
Rental fleet is fully registered under the International Registration Plan.
Regulation .05 Proportional Registration of Rental Motor Vehicles.LinkCopy Citation
A.
A rental fleet may be proportionally registered if the rental:
(1)
Vehicles are identifiable as part of the designated rental fleet; and
(2)
Fleet is maintained by the rental owner in two or more states from which vehicles of the rental fleet are rented or offered for rent.
B.
An applicant for proportional registration of a rental fleet shall file an application with the Administration on the form required by the Administration.
C.
The application shall contain information disclosed under oath, and as required by the Administration, to determine the eligibility of the applicant for proportional registration. The application shall contain such other information as may be required by the Administration for the proper registration of the rental fleet.
D.
Applications shall be filed on the date specified by the Administration, and fees shall be paid on the vehicles to be registered in this State as determined by §§E and F.
E.
The percentage of the total number of rental vehicles in a rental fleet, as determined in §F, shall be fully registered and titled in this State.
F.
The percentage to be fully registered and titled shall be determined by dividing the gross revenue received in the preceding year for the use of the rental vehicles arising from all motor vehicle rental transactions occurring in this State by the total gross revenue received in the preceding year for the use of the rental vehicles arising from all rental transactions occurring in all jurisdictions in which the rental fleet is operated. That percentage of the total number of rental vehicles in the rental fleet, rounded off to the nearest whole number, shall be fully registered and titled in Maryland.
G.
When vehicles are added to the fleet after the first day of the licensing year, the same percentage factor used at the beginning of that licensing year shall be used in determining the number of additional vehicles required to be registered in Maryland.
H.
After an application has been approved, and upon payment of the appropriate fees, the Administration shall issue:
(1)
The registration plates or validation stickers; and
(2)
A registration card which identifies the vehicle as part of a rental fleet.
I.
The registration card shall be carried at all times in or upon the vehicle for which it has been issued.
Regulation .06 Insurance.LinkCopy Citation
Vehicles rented or leased in Maryland, regardless of the state of registration, shall have and maintain automobile liability insurance in compliance with Transportation Article, Titles 17 and 18, Annotated Code of Maryland.
Regulation .07 New Operations.LinkCopy Citation
A.
The initial application for proportional registration shall state the revenue data for the preceding year with respect to the rental fleet.
B.
If no operations were conducted with the rental fleet during the preceding year, the application shall contain a full statement of the proposed method of operation and an estimate of the revenue of each state.
C.
The Administration may adjust the estimate in the application if the estimated numbers are incorrect or unreasonably forecast.
Regulation .08 Preservation of Records and Audit.LinkCopy Citation
A.
Records.
(1)
An owner whose application for proportional registration has been accepted shall preserve the records on which the application is based for a period of 3 years after the close of the registration year.
(2)
The records shall be made available upon request and during normal business hours to representatives of the Administration, for audit as to the records' accuracy.
(3)
If the records are not available to substantiate the information shown on the owner's application, the Administration shall give the owner 30 days written notice to provide the records.
(4)
Monthly and yearly records shall be maintained to accurately reflect the inventory count and Maryland registrations. Inventory records shall include a:
(a)
Count of the vehicles not rented, located in each jurisdiction, at the time of the inventory count;
(b)
Count of the entire fleet owned or operated, whether rented or not rented, at the time of the inventory count; and
(c)
Listing of registration plate numbers and dates purchased each year.
(5)
Registration records and cancelled checks representing payment for license plates purchased or renewed shall be available for auditor review.
B.
Audit.
(1)
After reviewing the records in §A of this regulation, the Administration shall determine if any deficiencies exist, and shall advise the owner of any necessary corrective measures.
(2)
Failure to correct any deficiencies may result in the suspension of all registrations issued to an owner.
C.
Hearing. Before a suspension of a registration issued under these regulations, an owner may request a hearing under the provisions of State Government Article, §§10-201—10-217, Annotated Code of Maryland.
Chapter annotations
Authority: Transportation Article, §§11-148.1, 12-104(b), 12-405—12-407, 12-409, and 13-402, Annotated Code of Maryland
History: Effective date: July 23, 1990 (17:14 Md. R. 1759)
History: Regulation .05 amended effective February 4, 2013 (40:2 Md. R. 73)
History: Regulation .08 amended effective December 21, 1992 (19:25 Md. R. 2207)
History: Regulation .08A amended effective February 4, 2013 (40:2 Md. R. 73)