39-22.3 Motor-Powered Recreational Vehicle Dealers - North Dakota Statutes

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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
motor-powered recreational vehicles without possessing a current motor-powered recreational
vehicle dealer's license. A person may not advertise or hold out to the public as engaging in the
buying, selling, or exchanging of motor-powered recreational vehicles for resale without
possession of a current motor-powered recreational vehicle dealer's license. The motor-powered
recreational vehicle dealer's license fee is twenty-five dollars per year and with which must be
issued one dealer's plate. Additional dealer's plates are ten dollars each. A dealer plate may be
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
continue to maintain an established place of business. An established central place of business
means a permanent enclosed building or structure either owned or leased with a stated periodic
rental, at which a permanent business of bartering, trading, and selling of motor-powered
recreational vehicles, the repair, maintenance, and servicing of motor-powered recreational
vehicles and the storage of parts and accessories of motor-powered recreational vehicles will be
carried out in good faith and not for the purpose of evading this section, and where the business
books, records, and files must be maintained, and does not mean a residence, tents, temporary
stands, or other temporary quarters, nor permanent quarters occupied pursuant to any temporary
arrangement. The central place of business may consist of several buildings or structures, but a
building or structure may not be located beyond one thousand feet [304.8 meters] from any other
buildings or structures of the central place of business. The central place of business must be
located within this state. The licensee must be permitted to use unimproved lots and premises
for sales, storage, or display of motor-powered recreational vehicles. A nonrefundable fee of fifty
dollars will be charged for each inspection and must accompany each initial application for a
motor-powered recreational vehicle dealer's license. Any dealer violating this chapter must be
assessed a one hundred dollar fee by the department for a first violation and a two hundred
dollar fee by the department for a second violation within two years of the first violation. The
department shall suspend the license of a motor-powered recreational vehicle dealer licensed
under this chapter if a third or subsequent violation of this chapter occurs within five years of the
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
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
director.3.For knowingly permitting any salesperson to sell or exchange, or offer or attempt to
sell or exchange, any motor-powered recreational vehicle except for the licensed
motor-powered recreational vehicle dealer by whom the salesperson is employed, or
to offer, transfer, or assign any sale or exchange that they may have negotiated to
any other dealer.4.For having violated any law relating to the sale, distribution, or financing of
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
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
the bond must run to the state of North Dakota in the amount of ten thousand dollars and be
conditioned upon the faithful compliance by the applicant with all the statutes of this state,
regulating or being applicable to a dealer in motor-powered recreational vehicles, and
indemnifying any person having a motor-powered recreational vehicle transaction with the dealer
from any loss of damage occasioned by the failure of the dealer to comply with any statutory
requirement of the transaction. The bond must be filed with the director before the issuance of a
license. The aggregate liability of the surety of all persons may not exceed the amount of the
bond. Any third party sustaining injury within the terms of the bond may proceed against the
principal and surety without making the state a party of any proceedings. The bond may be
canceled by the surety, as to future liability, by giving written notice by certified mail, addressed
to the principal at the address stated in the bond, and to the department. Thirty days after the
mailing of the notice, the bond is null and void as to any subsequent liability. The surety remains
liable, subject to the terms, conditions, and provisions of the bond, until the effective date of the
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
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
permits the use of the license for the benefit of any other dealer, is guilty of an infraction. The
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
to models, specifications, selling prices, and other data requested by the director as may be
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
dealer's licenses and the cancellation or suspension or revocation of a dealer's
license; and3.May employ and pay persons necessary to inspect dealers in this state, investigate
dealers for the information of the director, and procure evidence in connection with
any prosecution or other action to suspend, revoke, or cancel a dealer's license in
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
motor-powered recreational vehicle dealer relating to any specific complaint made against the
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
class B misdemeanor.Page No. 2Document Outlinechapter 39-22.3 motor-powered recreational vehicle dealers