Sec. 08.04.09.01. Boat Dealer License

A. License Application.

(1) A manufacturer or dealer may not conduct business in the State unless licensed as a Maryland boat dealer.

(2) A dealer with multiple locations in the State must secure a separate license for each location where sales activities take place.

(3) The annual license fee is $25.

(4) Applicant shall provide the information required by Natural Resources Article, §8-710(c), Annotated Code of Maryland.

B. Cancellation or Denial of License.

(1) The Department may cancel or refuse to issue a license for any violation of the State Boat Act including any of the following:

(a) License application contains false or fraudulent information;

(b) Applicant does not meet or licensee no longer meets the requirements for designation as a Maryland boat dealer;

(c) Licensee has collected monies on behalf of the State and has failed to forward the monies to the Department within 30 days of sale;

(2) Before cancelling, revoking, or refusing to renew a license, the Department shall provide a contested case hearing conducted in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 08.01.04.

C. A surety bond or other security approved by the Department shall accompany each application for a boat dealer license or license renewal. The amount of the surety bond or other security shall be as follows:

(1) $20,000 surety for a newly designated Maryland boat dealer;

(2) $5,000 surety for gross annual sales of $500,000 or less;

(3) $10,000 surety for gross annual sales greater than $500,000 but less than $1,000,000;

(4) $20,000 surety for gross annual sales of $1,000,000 but less than $3,000,000;

(5) $50,000 surety for gross annual sales of $3,000,000 but less than $5,000,000;

(6) $100,000 surety for gross annual sales of $5,000,000 but less than $10,000,000;

(7) $150,000 surety for gross annual sales of $10,000,000 but less than $15,000,000;

(8) $200,000 surety for gross annual sales of $15,000,000 and greater.

D. Gross annual sales shall be determined by a review of sales for the twelve months prior to issuance of license renewal application.

E. Failure to comply with surety requirements can result in disciplinary action, which may include a verbal warning, a warning letter, increased bond requirement, suspension of temporary registration privileges, suspension of dealer license, and criminal charges.