39-22.3 Motor-Powered Recreational Vehicle Dealers

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CHAPTER 39-22.3MOTOR-POWERED RECREATIONAL VEHICLE DEALERS39-22.3-01. Motor-powered recreational vehicle dealer's license - Fees - Additionalnumber plates. A person may not engage in the business of buying, selling, or exchanging of<br>motor-powered recreational vehicles without possessing a current motor-powered recreational<br>vehicle dealer's license. A person may not advertise or hold out to the public as engaging in the<br>buying, selling, or exchanging of motor-powered recreational vehicles for resale without<br>possession of a current motor-powered recreational vehicle dealer's license. The motor-powered<br>recreational vehicle dealer's license fee is twenty-five dollars per year and with which must be<br>issued one dealer's plate. Additional dealer's plates are ten dollars each. A dealer plate may be<br>displayed on any motor-powered recreational vehicle owned by the dealer.39-22.3-02. Application required. A license may not be granted unless a completedapplication has been made in the form prescribed by the director.39-22.3-03. Issuance of license - Conditions - Penalty. A license may not be issueduntil the applicant furnishes proof satisfactory to the director that the applicant has and will<br>continue to maintain an established place of business. An established central place of business<br>means a permanent enclosed building or structure either owned or leased with a stated periodic<br>rental, at which a permanent business of bartering, trading, and selling of motor-powered<br>recreational vehicles, the repair, maintenance, and servicing of motor-powered recreational<br>vehicles and the storage of parts and accessories of motor-powered recreational vehicles will be<br>carried out in good faith and not for the purpose of evading this section, and where the business<br>books, records, and files must be maintained, and does not mean a residence, tents, temporary<br>stands, or other temporary quarters, nor permanent quarters occupied pursuant to any temporary<br>arrangement. The central place of business may consist of several buildings or structures, but a<br>building or structure may not be located beyond one thousand feet [304.8 meters] from any other<br>buildings or structures of the central place of business. The central place of business must be<br>located within this state. The licensee must be permitted to use unimproved lots and premises<br>for sales, storage, or display of motor-powered recreational vehicles. A nonrefundable fee of fifty<br>dollars will be charged for each inspection and must accompany each initial application for a<br>motor-powered recreational vehicle dealer's license. Any dealer violating this chapter must be<br>assessed a one hundred dollar fee by the department for a first violation and a two hundred<br>dollar fee by the department for a second violation within two years of the first violation. The<br>department shall suspend the license of a motor-powered recreational vehicle dealer licensed<br>under this chapter if a third or subsequent violation of this chapter occurs within five years of the<br>first violation.39-22.3-04. Grounds for denial, suspension, cancellation, or revocation of dealer'slicense. The director may deny an application for a dealer's license or suspend, revoke, or<br>cancel the license after it has been granted for the following reasons:1.For any material misstatement by an applicant in the application for the license.2.For any willful failure to comply with this chapter or with any rule adopted by the<br>director.3.For knowingly permitting any salesperson to sell or exchange, or offer or attempt to<br>sell or exchange, any motor-powered recreational vehicle except for the licensed<br>motor-powered recreational vehicle dealer by whom the salesperson is employed, or<br>to offer, transfer, or assign any sale or exchange that they may have negotiated to<br>any other dealer.4.For having violated any law relating to the sale, distribution, or financing of<br>motorcycles.5.For having ceased to have an established place of business.Page No. 16.For failure to collect and timely transmit the snowmobile safety and off-highway<br>safety fees.39-22.3-05.Bond required.The license applicant shall furnish a continuous suretybond executed by a surety company, licensed and qualified to do business within this state and<br>the bond must run to the state of North Dakota in the amount of ten thousand dollars and be<br>conditioned upon the faithful compliance by the applicant with all the statutes of this state,<br>regulating or being applicable to a dealer in motor-powered recreational vehicles, and<br>indemnifying any person having a motor-powered recreational vehicle transaction with the dealer<br>from any loss of damage occasioned by the failure of the dealer to comply with any statutory<br>requirement of the transaction. The bond must be filed with the director before the issuance of a<br>license. The aggregate liability of the surety of all persons may not exceed the amount of the<br>bond. Any third party sustaining injury within the terms of the bond may proceed against the<br>principal and surety without making the state a party of any proceedings. The bond may be<br>canceled by the surety, as to future liability, by giving written notice by certified mail, addressed<br>to the principal at the address stated in the bond, and to the department. Thirty days after the<br>mailing of the notice, the bond is null and void as to any subsequent liability. The surety remains<br>liable, subject to the terms, conditions, and provisions of the bond, until the effective date of the<br>cancellation.39-22.3-06. Disposition of fees. Fees from registration of dealers must be depositedwith the state treasurer and credited to the dealer enforcement fund to be used exclusively for<br>enforcement of this chapter.39-22.3-07.Dealer permitting license to be used by another dealer - Licenserevoked - Penalty. A dealer who permits any other dealer to use that first dealer's license, or<br>permits the use of the license for the benefit of any other dealer, is guilty of an infraction. The<br>director shall revoke the license of any dealer who violates this section.39-22.3-08. Dealers to furnish information to director. All dealers engaged in the saleof motor-powered recreational vehicles in this state shall furnish the director with information as<br>to models, specifications, selling prices, and other data requested by the director as may be<br>necessary in carrying out this chapter.39-22.3-09. Powers of the director. In addition to other powers provided by law, thedirector in conformity with this chapter:1.May cancel, revoke, or suspend a dealer's license as provided for in this chapter;2.May prescribe rules not inconsistent with this chapter governing the application for<br>dealer's licenses and the cancellation or suspension or revocation of a dealer's<br>license; and3.May employ and pay persons necessary to inspect dealers in this state, investigate<br>dealers for the information of the director, and procure evidence in connection with<br>any prosecution or other action to suspend, revoke, or cancel a dealer's license in<br>relation to any matter in which the director has any duty to perform.39-22.3-10. Examination of books and records. The director or the director's dulyauthorized representative may inspect the books, letters, records, and contracts of any licensed<br>motor-powered recreational vehicle dealer relating to any specific complaint made against the<br>dealer and held to be in violation of any provision of this title.39-22.3-11. Officers to administer the provisions of chapter. The director and thedirector's appointees are responsible for the administration of the provisions of this chapter.39-22.3-12. Penalty for violation of provisions of chapter. Any person violating any ofthe provisions of this chapter for which another penalty is not specifically provided is guilty of a<br>class B misdemeanor.Page No. 2Document Outlinechapter 39-22.3 motor-powered recreational vehicle dealers