Registration by Motor Vehicle Manufacturers or Dealers

Section 261:103-a

    261:103-a Dealer License Required. –
I. Each dealer, as defined in RSA 259:18, shall apply for and obtain from the department a dealer license before engaging in any motor vehicle business activity in the state. The department shall prescribe and provide forms to be used for applications for licenses and for the renewals thereof to be issued under the terms and provisions of this chapter and require all new applicants, as a condition precedent to the issuance of a license, to submit the following:
(a) The name and residence address of the applicant and the trade name, if applicable, under which the applicant intends to conduct business, and:
(1) If the applicant is a partnership, the name and residence address of each member thereof, whether a limited or general partner, and the name under which the partnership business is to be conducted.
(2) If the applicant is a corporation, the name of the corporation and the name and address of each of its principal officers and directors and all persons owning more than 5 percent of the outstanding shares of stock issued by the corporation.
(b) A complete description, including the city or town and the street and number of the permanent, established place of business and such other and additional place or places of business as shall be operated and maintained by the applicant in conjunction with the permanent, established place of business.
(c) The trade name or line make of the new vehicles that the applicant is or has been franchised to sell or exchange and the name and address of any manufacturer or distributor who has enfranchised the applicant.
(d) Whether the applicant proposes to sell new or used vehicles or both.
(e) A duly executed service agreement on forms provided by the department with a service or repair garage which is a licensed inspection facility within a reasonable distance from the applicant's established place of business, if applicant does not have facilities at the applicant's established place of business to service or repair motor vehicles.
(f) A statement that the applicant is or intends to be engaged in the motor vehicle business and that this activity constitutes or will constitute the principal business of the applicants.
(g) Certification from the appropriate officials of the municipality which contains the dealer's established place of business that the dealer's establishment is in compliance with all applicable local zoning ordinances.
(h) A statement that the dealer will comply with all state and federal requirements regarding the selling, titling, and financing of vehicles.
(i) Proof of a surety bond obtained through a company approved by the insurance department, or pursuant to RSA 261:101, which conforms to the criteria in RSA 261:98, or proper alternative proof of financial assurance pursuant to RSA 261:98, VI.
(j) A statement that the dealer shall notify the department upon cancellation of the surety bond.
(k) A criminal history records check for the applicant and its members, partners, officers, and directors and a statement whether the applicant has ever been subject to a civil judgment connected with a motor vehicle business.
II. All applications shall be accompanied by the payment of a license fee of $250. If any application is denied or the license applied for is not issued, 75 percent of the license fee shall be refunded to the applicant. There shall be no proration of fees for issuance of license for a partial term, however, applications submitted during the second year of the license cycle shall be accompanied by a fee of only $125.
III. All dealer licenses shall be granted or denied after receipt of a complete application by the department. If the application is incomplete, the department shall notify the applicant in writing indicating the reasons for incompleteness.
IV. All licenses issued pursuant to the provisions of this section shall expire biennially in even-numbered years in the month designated by the director.
V. Any change of address, ownership, employment, trade name, or line make of motor vehicle a dealer is franchised to handle shall be reported to the department within 30 days from the date of the change.
VI. No dealer license shall be transferable, and a separate license shall be required for each separate place of business in a separate town or city, and shall be prominently displayed in the place of business operated by the person to whom such license is issued.
VII. A retail vehicle dealer may include with its application for a dealer license or renewal a request, upon blanks furnished by the department for that purpose, for a general distinguishing number for vehicles owned by such dealer.
VIII. The director may require that an applicant for a dealer license attend an instructional class as a requirement for issuance of a license. The class requirement shall be satisfied if the applicant has previously attended the class or the dealership employs a person who attends or has previously attended the class. A licensed franchised dealer, or a nonfranchised dealer who is in good standing as determined by the director, shall not be required to attend a class as a condition of being issued a separate license for a separate place of business.
IX. A licensed franchised dealer that has manufacturer approval to operate an existing dealership location that has applied for a dealer license and inspection privileges and is waiting for state approval shall be permitted to operate as a dealership and inspection station. This permission to operate shall be allowed if the dealer submits with the application a sworn statement that the dealer meets or will meet all licensing requirements at the time of license approval. If the application is finally denied, the dealer shall cease operation.

Source. 1997, 179:9. 2008, 282:8. 2010, 290:3, eff. Sept. 11, 2010. 2014, 234:1, 2, eff. Jan. 1, 2016; 245:1, eff. Sept. 19, 2014.