Montana Code 61-4-101. Types of licenses and terms — common application — bonds — zoning
61-4-101. Types of licenses and terms — common application — bonds — zoning. (1) Except as provided in 61-4-120 and 61-4-125, a person may not engage in the business of buying, selling, exchanging, accepting on consignment, or acting as a broker of a motor vehicle, trailer, travel trailer, semitrailer, pole trailer, motorcycle, quadricycle, motorboat, personal watercraft, snowmobile, off-highway vehicle, or special mobile equipment that is not registered in the person’s name unless the person is the holder of a license issued by the department under this part.
Terms Used In Montana Code 61-4-101
- Broker: means a person:
(a)who engages in the business of offering to procure or procuring a motor vehicle, a trailer, a semitrailer, a pole trailer, a travel trailer, a motorboat, a personal watercraft, a snowmobile, or an off-highway vehicle on behalf of another; or
(b)who represents to the public through solicitation, advertisement, or otherwise that the person is one who offers to procure or procures a motor vehicle, a trailer, a semitrailer, a pole trailer, a travel trailer, a motorboat, a personal watercraft, a snowmobile, or an off-highway vehicle by negotiating purchases, contracts, sales, or exchanges on behalf of another and who does not store, display, or take ownership of a motor vehicle, a trailer, a semitrailer, a pole trailer, a travel trailer, a motorboat, a personal watercraft, a snowmobile, or an off-highway vehicle. See Montana Code 61-4-131
- Business entity: means a corporation, association, partnership, limited liability partnership, limited liability company, or other legal entity recognized under state law. See Montana Code 61-1-101
- Customer identification number: means :
(a)a driver's license or identification card number when the customer is an individual who has been issued a driver's license or identification card by a state driver licensing authority;
(b)a federal employer or tax identification number when the customer is a business entity that has been issued a federal employer or tax identification number;
(c)the identification number assigned by the secretary of state to a business entity authorized to do business in this state under Title 35 if the customer is a business entity that does not have a federal employer or tax identification number other than a social security number; or
(d)if the customer has not been issued one of the numbers described in subsections (14)(a) through (14)(c), a number assigned to the customer by the department when a transaction is initiated under this title. See Montana Code 61-1-101
- Dealer: means a person that, for commission or profit, engages in whole or in part in the business of buying, selling, exchanging, or accepting on consignment new or used motor vehicles, trailers, semitrailers, pole trailers, travel trailers, motorboats, sailboats, snowmobiles, off-highway vehicles, or special mobile equipment that is not registered in the name of the person. See Montana Code 61-1-101
- Department: means the department of justice acting directly or through its duly authorized officers or agents. See Montana Code 61-1-101
- Established place of business: means the geographic location upon which a permanent building is located that is actually occupied either continuously or at regular periods by a person licensed under this part. See Montana Code 61-4-131
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Manufacturer: includes any person engaged in the manufacture of motor vehicles, trailers, semitrailers, pole trailers, travel trailers, motorboats, sailboats, snowmobiles, or off-highway vehicles as a regular business. See Montana Code 61-1-101
- Motor vehicle: means :
(i)a vehicle propelled by its own power and designed or used to transport persons or property on the highways of the state;
(ii)a quadricycle if it is equipped for use on the highways as prescribed in chapter 9; or
(iii)a golf cart only if it is equipped for use on the highways as prescribed in chapter 9 and is operated pursuant to 61-8-391 or by a person with a low-speed restricted driver's license. See Montana Code 61-1-101
- Motorboat: means a vessel, including a personal watercraft or pontoon, propelled by any machinery, motor, or engine of any description, whether or not the machinery, motor, or engine is the principal source of propulsion. See Montana Code 61-1-101
- Motorcycle: means a motor vehicle that has a seat or saddle for the use of the operator and that is designated to travel on not more than three wheels in contact with the ground. See Montana Code 61-1-101
- New motor vehicle: means a motor vehicle, regardless of the mileage of the vehicle, the legal or equitable title to which has never been transferred by a manufacturer, distributor, or dealer to another person as the result of a retail sale. See Montana Code 61-1-101
- Off-highway vehicle: means a self-propelled vehicle designed for recreation or cross-country travel on public lands, trails, easements, lakes, rivers, or streams. See Montana Code 61-1-101
- person: means an individual, corporation, partnership, limited partnership, limited liability company, association, joint venture, state agency, local government unit, another state government, the United States, a political subdivision of this or another state, or any other legal or commercial entity. See Montana Code 61-1-101
- Personal watercraft: means a vessel that uses an outboard motor or an inboard engine powering a water jet pump as its primary source of propulsion and that is designed to be operated by a person sitting, standing, or kneeling on the vessel rather than by the conventional method of sitting or standing in the vessel. See Montana Code 61-1-101
- Pole trailer: means a vehicle without power designed to be drawn by another vehicle and attached to the towing vehicle by means of a reach or pole or by being boomed or otherwise secured to the towing vehicle and ordinarily used for transporting long or irregularly shaped loads such as poles, pipes, or structural members capable generally of sustaining themselves as beams between the supporting connections. See Montana Code 61-1-101
- Power sports vehicle: includes a motorboat, a personal watercraft, a snowmobile, or an off-highway vehicle. See Montana Code 61-4-131
- Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
- Quadricycle: means a four-wheeled motor vehicle, designed for on-road or off-road use, having a seat or saddle on which the operator sits. See Montana Code 61-1-101
- Sell: means to transfer ownership from one person to another person or from a dealer to another person for consideration. See Montana Code 61-1-101
- Semitrailer: means a vehicle, with or without motive power, other than a pole trailer, designed for carrying property and for being drawn by a motor vehicle and constructed so that some part of its weight and that of its load rests on or is carried by another vehicle. See Montana Code 61-1-101
- Snowmobile: means a self-propelled vehicle of an overall width of 48 inches or less, excluding accessories, that is designed primarily for travel on snow or ice, that may be steered by skis or runners, and that is not otherwise registered or licensed under the laws of the state of Montana. See Montana Code 61-1-101
- Special mobile equipment: means a vehicle not designed for the transportation of persons or property on the highways but incidentally operated or moved over the highways, including road construction or maintenance machinery, ditch-digging apparatus, and well-boring apparatus. See Montana Code 61-1-101
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Street: means the entire width between the boundary lines of every publicly maintained way when any part of the publicly maintained way is open to the use of the public for purposes of vehicular travel. See Montana Code 61-1-101
- Trailer: has the meaning provided in 61-1-101 but does not include a trailer that has an unloaded weight of less than 500 pounds. See Montana Code 61-4-131
- Travel trailer: means a vehicle:
(a)that is 46 feet or less in length;
(b)that is of a size or weight that does not require special permits when towed by a motor vehicle; and
(c)that is designed to provide temporary facilities for recreational, travel, or camping use and not used as a principal residence. See Montana Code 61-1-101
- Used motor vehicle: includes any motor vehicle that has been sold, bargained, exchanged, or given away or had its title transferred from the person who first took title to it from the manufacturer, importer, dealer, wholesaler, or agent of the manufacturer or importer and that has been used so as to have become what is commonly known as "secondhand" within the ordinary meaning of that term. See Montana Code 61-1-101
- Vehicle: means a device in, on, or by which any person or property may be transported or drawn on a public highway, except devices moved by animal power or used exclusively on stationary rails or tracks. See Montana Code 61-1-101
- Wholesaler: means a person that for a commission or with intent to make a profit or gain of money or other thing of value sells, exchanges, or attempts to negotiate a sale or exchange of an interest in a used motor vehicle, trailer, semitrailer, pole trailer, travel trailer, motorboat, snowmobile, off-highway vehicle, or special mobile equipment only to dealers and auto auctions licensed under chapter 4, part 1. See Montana Code 61-1-101
- Writing: includes printing. See Montana Code 1-1-203
(2)(a) The department may issue a new dealer‘s license, a used dealer’s license, a broker’s license, an auto auction license, or a wholesaler license to any person it determines is qualified to hold the license under the provisions of this section.
(b)A new dealer’s license authorizes the holder to sell:
(i)any new motor vehicle, new power sports vehicle, or new trailer that is covered under a franchise agreement between the holder and the manufacturer, importer, or distributor of the line of vehicle or trailer offered for sale; and
(ii)any used motor vehicle, used power sports vehicle, or used trailer.
(c)A used dealer license authorizes the holder to sell any used motor vehicle, used power sports vehicle, or used trailer.
(d)A broker’s license authorizes the holder to negotiate the purchase, sale, or exchange of a motor vehicle, power sports vehicle, or trailer from a dealer or another person upon behalf of a client when the broker does not store, display, or take ownership of the motor vehicle, power sports vehicle, or trailer being purchased, sold, or exchanged.
(e)Except as provided in 61-4-120, an auto auction license authorizes the holder to take possession of a used vehicle owned by another person through consignment, bailment, or any other arrangement and to sell to the highest bidder when all bidders are licensed vehicle dealers, wholesalers, or wrecking facilities.
(f)A wholesaler license authorizes the holder to sell used vehicles to a new or used vehicle dealer, an auto auction, or another wholesaler.
(3)Dealer license expiration dates must be staggered throughout the year.
(4)Subject to the provisions of 61-4-120, 61-4-124, and 61-4-125, a license issued by the department is valid until:
(a)voluntarily returned to the department for surrender and cancellation upon the cessation of the licensee’s business operations; or
(b)suspended or revoked for a violation of this chapter or any other laws relating to the sale of motor vehicles, power sports vehicles, or trailers.
(5)(a) An applicant for a new dealer’s license, a used dealer’s license, a broker’s license, an auto auction license, or a wholesaler license shall submit a written application to the department. The application must be signed by the applicant and contain a verification by the applicant, under penalty of law, that the information contained in the application is true and correct. Any information provided in the license application process is subject to independent verification by the department or an authorized representative of the department.
(b)After examining a license application and conducting an investigation necessary to verify the information contained in the application and if the department is satisfied that the applicant qualifies for the issuance of a license under the provisions of this chapter, the department may issue the license. The department may refuse, after examination and investigation, to issue a license to an applicant who is not qualified for licensure or whose prior financial or other activities or criminal record, as determined by the department:
(i)poses a threat to the effective regulation of dealers, wholesalers, or auto auctions;
(ii)poses a threat to the public interest of the state; or
(iii)creates a danger of illegal or deceptive practices being used in the conduct of the proposed dealership, wholesaler, or auto auction.
(6)To be qualified for licensure, an applicant shall provide to the department the following information:
(a)the name under which the applicant intends to conduct business and the applicant’s name, the street address and, if different, mailing address for the business, and customer identification number;
(b)the name, date of birth, and social security number of any person who:
(i)possesses or will possess an ownership interest in the business for which the license is sought;
(ii)is a corporate officer or the managing member of a business entity applying for the license; or
(iii)is or will be designated by the applicant to manage or oversee the applicant’s business;
(c)for each person subject to the provisions of subsection (6)(b), information concerning whether the person has:
(i)an ownership interest in a vehicle dealership, an auto auction, or a wholesaler business in Montana or any other state and, if so, the name and address of each dealership, auto auction, or wholesaler; and
(ii)been found guilty of, or pleaded guilty to, a felony in this or any other jurisdiction and, if so, shall provide a summary of the conduct resulting in the felony charge, including the dates of the conduct and any court proceedings pertaining to the conduct and the name and address of any court in which the matter was heard;
(d)the name, address, and telephone number of the insurance carrier from whom the applicant has acquired general liability insurance, naming the department as a certificate holder of the policy, and the name, address, and telephone number of the local insurance agent for the carrier and the applicant’s policy number. The insurance must cover any motor vehicle bearing dealer or demonstrator license plates and any motorboat, snowmobile, or off-highway vehicle displaying a dealer’s identification card that is offered for demonstration or loan to a customer or otherwise operated by a customer in the regular course of the applicant’s business and must be for a minimum of 1 year;
(e)the geographic location of the physical lot or lots upon which vehicles will be displayed for sale, if applicable, and of a permanent nonresidential building, with no more than three other wholesale, broker, auction, or retail vehicle dealers in the same building or at the same location, that will be maintained to store the actual physical or electronic records resulting from the purchase, sale, trade, or consignment of vehicles for which licensure is sought. An applicant may use more than one location to display vehicles for sale if the maximum distance between each display lot does not exceed 200 feet and if the distance between a display lot and the building in which vehicle sales records are stored does not exceed 1,000 feet.
(f)for each geographic location specified in the application, evidence of the applicant’s compliance with applicable local land use planning, zoning, and business permitting requirements, if any. Evidence of compliance may be documented by means of a written verification of compliance signed by the authorized representative of the local land use planning or zoning board or the local business-permitting agency.
(g)a diagram or plat showing the geographic location, lot dimensions, if applicable, and building and sign placement for the applicant’s proposed established place of business, along with two or more photographs of the geographic location, building premises, and sign, as prescribed by the department;
(h)if the applicant is seeking a new motor vehicle dealer’s license:
(i)the name and address of the manufacturer, importer, or distributor with whom the applicant has a written new motor vehicle, power sports vehicle, or trailer franchise or sales agreement, the term of the agreement, and the name and make of all motor vehicles, power sports vehicles, or trailers to be handled by the applicant;
(ii)the geographic location or locations, specified in writing, upon which the applicant will provide and maintain a permanent building to display and sell new motor vehicles, power sports vehicles, or trailers and offer and maintain a bona fide service department for the repair, service, and maintenance of the motor vehicles, power sports vehicles, or trailers; and
(iii)verification that the applicant otherwise meets the requirements of part 2 of this chapter.
(7)If an applicant wants to maintain more than one established place of business, the applicant shall file a separate license application for each proposed place of business and otherwise qualify for licensure at each place separately.
(8)Each application under this section must be accompanied by the following fees:
(a)for a new or used dealer’s license, a broker’s license, or a wholesaler’s license, $30; and
(b)for an auto auction license, the fee provided for in 61-4-120.
(9)(a) Except as provided in subsection (9)(b), an applicant for a dealer’s license, broker’s license, wholesaler’s license, or auto auction license shall also file with the application a bond of $50,000.
(b)An applicant whose business will be restricted to the sale of motorcycles or quadricycles shall file a bond of $15,000. An applicant whose business will be restricted to the sale of motorboats, personal watercraft, snowmobiles, or off-highway vehicles, other than motorcycles originally equipped for use on the highway, shall file a bond of $5,000.
(c)All bonds must be conditioned that the applicant shall conduct the business in accordance with the requirements of the law. All bonds must be approved by the department, must be filed in its office, and must be renewed annually.