2013 Maryland Code
NATURAL RESOURCES
§ 8-710 - Manufacturer's or dealer's license

§8-710.

(a) A manufacturer or dealer may not conduct his business in the State unless licensed as a manufacturer or dealer pursuant to regulations the Department adopts.

(b) An out-of-state or foreign manufacturer or dealer shall be exempted from licensing solely for purposes of displaying and selling vessels at a boat show, boat exposition, or outdoor recreation show if the show or exposition is 14 consecutive days or less duration, admission taxes are paid on charges for admission to the show or exposition, and the manufacturer or dealer does not principally own, control, or manage the show or exposition.

(c) Application for a manufacturer’s or dealer’s license is made on the form the Department prescribes and contains the name and address of the applicant. If the applicant is a partnership, the application shall include the name and address of each partner. If the applicant is a corporation, the application shall contain the names of the principal officers of the corporation, the state of incorporation, the addresses of every place where the business is conducted, the nature of the business, and any other information the Department requires. Every application shall be verified by oath or affirmation of the applicant if an individual, or by the partner or officer if the applicant is a partnership or corporation. A license fee fixed by the Department not to exceed $25 shall accompany every application.

(d) After receiving the required application and fee, the Department issues a license certificate to the applicant which entitles him to conduct business as a manufacturer or dealer during the calendar year in which the license is issued. Every license expires on December 31 of each year in which issued. The license may be renewed upon annual application and payment of the required fee.

(e) (1) The Department may refuse to issue a license or, after written notice to the licensee and a hearing, may cancel a license when the Department determines that the applicant or licensee has failed to comply with the provisions of this subtitle.

(2) On petition of the Consumer Protection Division of the Office of the Attorney General, and after written notice to a licensee and a hearing, the Department may revoke or suspend the license of a dealer if the Department determines that the licensee has violated § 13-301 or § 13-303 of the Commercial Law Article.

(f) If, during the period for which a dealer’s or manufacturer’s license is issued, there is any change in the factual information furnished to the Department by the licensee in connection with obtaining or retaining the license or a renewal of the license, the change shall be truly, fully, and promptly communicated to the Department in writing on forms provided by the Department. The applicant shall sign the form and certify that the information given is true and correct.

§ 8-710 - 1. Bonds of manufacturers or dealers

(a) Filing. -- Prior to the issuance of a boat dealer's or manufacturer's license, each applicant shall file with the Department acceptable evidence of a bond or other security deemed sufficient and adequate by the Department for the payment of fees and taxes the applicant receives based upon the applicant's volume of sales and the class of boat dealer's or manufacturer's license which the applicant has requested. The bond shall be for the use and benefit of the Department and any member of the public who suffers or sustains any loss by reason of any violation of this subtitle by the licensee, the licensee's agent, or the licensee's employee. The Department may also use the bond to recover any penalty and interest charged to the licensee based on a failure to pay the fees or taxes received by the applicant.

(b) Suspension of license for failure to file. -- If any licensee fails to file acceptable evidence that the bond required by this section has been extended prior to the expiration of the bond, the licensee's dealer's or manufacturer's license automatically is suspended upon expiration of the bond. The suspension shall terminate when the licensee files with the Department acceptable evidence of a bond or other security deemed sufficient and adequate by the Department for the payment of fees and taxes the licensee receives based upon the licensee's volume of sales and the class of boat dealer's and manufacturer's license which the licensee has been issued.

(c) Applicant also applying for title service agent's license or trailer dealer's license. -- An applicant for a boat dealer's or manufacturer's license who also is applying for a title service agent's license or a trailer dealer's license with the Motor Vehicle Administration may file evidence of a bond or other security deemed adequate and sufficient by both the Motor Vehicle Administration and the Department with respect to the applicant's obligations and liabilities under this section and § 15-308 or § 15-604 of the Transportation Article.

§ 8-710 - 2. Temporary certificates of boat number [Effective until October 1, 2013].

(a) Furnished to dealers. -- The Department may design temporary certificates of boat number and furnish them to any licensed boat dealer.

(b) Issuance to purchaser of vessel. --

(1) For any vessel that is to be used principally in Maryland, a licensed dealer may issue 1 temporary certificate of boat number to the person who buys the vessel from the dealer.

(2) A dealer may not issue a temporary certificate of boat number unless:

(i) The taxes and other fees as required by this subtitle are paid to the dealer; and

(ii) An application for Maryland certificate of boat title and number or a purchaser's application for transfer of a Maryland certificate of boat title is completed and signed by the purchaser of the vessel.

(3) (i) Before issuing a temporary certificate of boat number, the dealer shall complete the certificate by writing in the information required by the Department.

(ii) A temporary certificate of boat number is not valid unless the dealer completes the certificate as required by this subsection.

(4) The dealer may not issue more than 1 temporary certificate for any vessel. If the temporary certificate is lost, stolen, or destroyed, the owner must apply to the Department for a certificate of boat number.

(5) Within 30 days after a dealer issues a temporary certificate of boat number, the dealer shall mail a copy of the temporary certificate to the Department.

(c) Expiration of certificate. -- A temporary certificate of boat number expires when the first of either of the following occurs:

(1) A certificate of boat number for the vessel is issued by the Department; or

(2) 90 days expire from the date the temporary certificate was issued by the dealer.

(d) Failure of dealer to forward taxes and fees to Department. -- In addition to any other sanction under this subtitle, on failure of a dealer to forward to the Department taxes and fees within 30 days of collection, the Department may declare forfeited the bond or other security filed by the dealer under this subtitle.

(e) Return of certificates by noncomplying dealer. -- The Department may require the return of all temporary certificates from any dealer who has not complied with any provision of this subtitle.

§ 8-710 - 2. Temporary certificates of boat number [Effective October 1, 2013].

(a) Furnished to dealers. -- The Department may design temporary certificates of boat number and furnish them to any licensed boat dealer.

(b) Issuance to purchaser of vessel. --

(1) For any vessel that is to be used principally in Maryland, a licensed dealer may issue 1 temporary certificate of boat number to the person who buys the vessel from the dealer.

(2) A dealer may not issue a temporary certificate of boat number unless:

(i) The taxes and other fees as required by this subtitle are paid to the dealer; and

(ii) An application for Maryland certificate of boat title and number or a purchaser's application for transfer of a Maryland certificate of boat title is completed and signed by the purchaser of the vessel.

(3) (i) Before issuing a temporary certificate of boat number, the dealer shall complete the certificate by writing in the information required by the Department.

(ii) A temporary certificate of boat number is not valid unless the dealer completes the certificate as required by this subsection.

(4) The dealer may not issue more than 1 temporary certificate for any vessel. If the temporary certificate is lost, stolen, or destroyed, the owner must apply to the Department for a certificate of boat number.

(5) Within 30 days after a dealer issues a temporary certificate of boat number, the dealer shall mail a copy of the temporary certificate to the Department.

(c) Expiration of certificate. -- A temporary certificate of boat number expires when the first of either of the following occurs:

(1) A certificate of boat number for the vessel is issued by the Department; or

(2) 60 days expire from the date the temporary certificate was issued by the dealer.

(d) Failure of dealer to forward taxes and fees to Department. -- In addition to any other sanction under this subtitle, on failure of a dealer to forward to the Department taxes and fees within 30 days of collection, the Department may declare forfeited the bond or other security filed by the dealer under this subtitle.

(e) Return of certificates by noncomplying dealer. -- The Department may require the return of all temporary certificates from any dealer who has not complied with any provision of this subtitle.

§ 8-710 - 3. Excise tax on sales of vessels

(a) Collection of tax. -- A licensed boat dealer shall collect the excise tax on all sales of vessels to be titled and numbered and on all sales of vessels to be federally documented to be used in the State as required under §§ 8-712 and 8-716 of this subtitle.

(b) Compliance with numbering requirements. -- A licensed boat dealer who operates a bare-boat charter shall insure that any owner of a vessel in the fleet of the dealer to be used in the State has:

(1) Complied with §§ 8-712 and 8-716 of this subtitle; and

(2) Numbered the vessel to be chartered in the State as the state of principal use.