29- 250 C.M.R. ch. 103, § V

Current through 2024-50, December 11, 2024

Section 250-103-V - REQUIREMENTS FOR VEHICLE AUCTIONS

A.Established Place of Business or Annex. The established place of business or annex of persons in the business of conducting vehicle auctions shall:

1. Be located in a permanent, enclosed building(s) which:

a. Is in good repair;

b. Is free of obstructions or material not related to a vehicle auction;

c. Has a heat source;

d. Is owned or leased by the vehicle auction;

e. Is used exclusively for the purpose of vehicle auctions and preparing vehicles for auction;

f. Contains a solid wall separating the established place of business or annex from any other unrelated business in the building; and

g. Has an entrance used exclusively to gain access to the established place of business or annex.

2. Persons in the business of conducting vehicle auctions by sealed bids or outside live auctions shall have a display area which meets the following requirements:

a. The display area shall be located at the established place of business or annex;

b. Any outside surface of the display area shall be paved, graded gravel, crushed rock or a mowed surface and shall be kept plowed in winter to allow an all weather and all season display of vehicles being offered for bid;

c. The display area shall be free from debris, hazards and unrelated materials;

d. The location, degree of slope and the grade of the display area shall be such that the display of vehicles does not constitute a hazard; and

e. Additional or separate lots are allowed, but their locations shall be reported to the Secretary of State.

3. Persons in the business of conducting live indoor vehicle auctions shall have a viewing and bidding facility which:

a. Is located within the building(s) identified as the established place of business or annex;

b. Is heated during normal business hours;

c. Is reasonably free of debris, hazards and unrelated materials; and

d. Contains viewing and bidding lanes sufficient to allow a view of the vehicles being auctioned from all directions and to allow the safe entry and exit of vehicles into and out of the lane.

4. Have an office which:

a. Is located at the established place of business or annex;

b. Is not less than 64 square feet in size, is used exclusively for auction or related business and is free of unrelated materials;

c. Is heated during business hours;

d. Is entered through a door which is properly labelled and readily accessible to the public;

e. Contains at least one desk, two chairs and a metal or wooden filing cabinet manufactured for that purpose. The filing cabinet is not required if the desk is equipped with drawers suitable in size and design for storing and filing business records. Books and records may be kept at the primary location when applying for an annex;

f. Is completely enclosed by floor to ceiling construction. (Tar paper, sheathing paper or cardboard are not allowed as construction material.);

g. Is separated from any living quarters.

5. Have reasonable business hours which:

a. Shall be posted and clearly visible on the exterior or through a window of the building identified as the established place of business or annex.

6. Display the license and supplement license(s) issued;

7. Have a sign which meets the following requirements (unless a municipality has established ordinances regulating signs contrary to these rules, whereupon the Secretary of State, upon notification by the applicant of such ordinances, may grant an exception to these rules to the person affected):

a. The sign shall be permanently mounted, displayed at the established place of business or annex and shall not be less than 12 square feet in surface size;

b. The sign shall be visible from the entrance to the lot and the letters of the sign shall be readable from a distance of 200 feet; and

c. The sign shall contain the trade or business name of the auction and related businesses only.

8. Contain records as follows:

a. Records shall be maintained at the office of the established place of business and shall be available for inspection during posted business hours by agents of the Secretary of State or the Office of the Attorney General or duly authorized members of law enforcement agencies. If an auction does not have business hours between 8:00 a.m. and 5:00 p.m., the auction shall make records available upon reasonable demand and advance notice by the Secretary of State, the Office of the Attorney General and law enforcement agencies;

b. The auction licensee shall fully complete and maintain a record of the purchase or sale of a vehicle so as to comply with 29-A M.R.S. §956(1)(A).The record of the purchase or sale of the vehicle shall contain a description of the vehicle, including make, model, model year, body type, vehicle identification number, color, and whether the vehicle is new or used. The dealer shall also maintain a record of the seller's information, purchaser's information, legal owner, odometer information, and date of sale;

c. All records shall be kept for a minimum of 5 years in accordance with the federal Truth in Mileage Act of 1986 and rules promulgated thereunder.

B.Application. In addition to filling out the basic application, an applicant for a vehicle auction license shall:

1. Answer, on a form prescribed by the Secretary of State, basic questions relative to the ownership and facilities of the established place of business or annex and shall swear before a notary as to the truthfulness of the answers;

2. Submit to an investigation as follows:

a. Upon receipt of an application for a vehicle auction license, the Secretary of State shall conduct an investigation into the ownership and facilities of the established place of business or annex of the auction; and

b. Prior to approval of an application for a vehicle auction license, an inspection report shall be submitted to the Secretary of State affirming that the business conforms to all applicable laws, rules and regulations.

c. Applicants shall submit to State Bureau of Identification background check upon initial and renewal application. The Bureau of Motor Vehicles will request and receive the background check from the State Bureau of Identification. A fee for the background check will be assessed at time of initial and renewal application pursuant to Title 25 MRSA Sec. 1541(1).

d. State criminal history record information shall be used for the purpose of screening dealer applicants in order to determine whether issuance of a dealer license is granted or maintained.

3. Auction License holders shall provide current contact information to include primary or secondary telephone and mailing address, and an e-mail address if available as frequent statutory updates are disseminated via e-mail;

4. Auction License holders shall make notification of changes to any of the contact information within 30 days, in writing or other means approved by the Secretary of State, of the old and new contact information.

5. Pay the appropriate filing fees at the time of application;

6. File proof of surety bond as required by 29-A M.R.S. §901(4).

a. The surety bond shall be for the use and benefit of the Secretary of State, and for any person who may suffer a financial loss because the licensee failed to comply with the requirements of 29-A M.R.S. chapter 7 or chapter 9 related to the buying and selling of vehicles, or any provisions of this rule or of Chapter 104, Rules of the Department of Secretary of State.

The surety bond shall be for at least the minimum amount prescribed in §901(4) and shall be applied against the total amount of claims during the license period.

The surety bond shall become payable upon order of a court of competent jurisdiction; or an administrative ruling by the Bureau of Consumer Credit Protection or the Secretary of State.

The form of the surety bond is prescribed in Appendix B.

7. Notify the Secretary of State of the sales tax number as issued by the Maine Revenue Services by submitting a reseller's certificate at initial application and upon each renewal;

8. Furnish copies of properly recorded partnership papers, authority to operate under an assumed name, if applicable, proof of incorporation in the State of Maine or proof of authority for a foreign corporation to conduct business in the State of Maine;

9. Furnish copies of a lease if the facilities are leased;

10. Furnish proof of compliance with applicable building codes, zoning codes and other land use regulatory ordinances in the Maine municipality where the established place of business or annex is operated;

11. Furnish a copy of a plot plan for the premises;

12. Obtain a temporary permit for all off-premise auctions;

13. File a new application and fees whenever the ownership structure changes; and

14. New applicants must attend and complete the Dealer/Title Workshop conducted by the Bureau of Motor Vehicles within 4 months of licensure.

C.Exemption. This rule does not apply to vehicle auctioneers who are licensed and bonded pursuant to 32 M.R.S. Chapter 5-A, and who are conducting a vehicle auction incidental to the liquidation of a business or an estate.

D.Transit Plates. An auction licensee may purchase unassigned transit plates from the Bureau of Motor Vehicles. Transit plates may be issued to licensed dealers for the purpose of removing a vehicle from the auction location. The auction licensee shall maintain records of all transit plates issued for a period of six months.

29- 250 C.M.R. ch. 103, § V