# Title 39 — Motor Vehicles

## Chapter 39-22.3 — Motor-Powered Recreational Vehicle Dealers

### § 39-22.3-01. Motor-powered recreational vehicle dealer's license - Fees - Additional

number 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 completed application has been made in the form
prescribed by the director.
### § 39-22.3-03. Issuance of license - Conditions - Penalty.

A license may not be issued until 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's

license.
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
motor-powered recreational vehicles.

5. For having ceased to have an established place of business.
6. 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 surety bond 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 deposited with 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 - License revoked -

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 sale of 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, the director 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; and
3. 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 duly authorized 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 the director'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 of the provisions of this chapter for which another penalty is not
specifically provided is guilty of a class B misdemeanor.
