An Act to Require Online Used Car Dealers to Be Licensed
Maine Legislature, Session 131, LD 1806
Committee: Innovation, Development, Economic Advancement and Business
Sponsors: LAWRENCE
Amends: 29-A MRSA §851, 29-A MRSA §901, 29-A MRSA §903, 29-A MRSA §951, 29-A MRSA §952, 29-A MRSA §955, 29-A MRSA §957, 29-A MRSA §1001, 29-A MRSA §1003

Legislative Document
No. 1806
S.P. 731
In Senate, April 25, 2023
An Act to Require Online Used Car Dealers to Be Licensed
Reference to the Committee on Innovation, Development, Economic Advancement and 
Business suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator LAWRENCE of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  29-A MRSA §851, sub-§9-A is enacted to read:
9-A.  Online used car dealer.  "Online used car dealer" means a used car dealer that 
does not have an established place of business in the State, that has a primary place of 
business in another jurisdiction and that sells used motor vehicles through the use of a 
publicly accessible website or other Internet platform to a person located in the State.
Sec. 2.  29-A MRSA §901, sub-§3, ¶A, as enacted by PL 1993, c. 683, Pt. A, §2 
and affected by Pt. B, §5, is amended to read:
A.  Whether the applicant intends to sell used motor vehicles and, if so, except for an 
online used car dealer, whether there is space for servicing and repairs;
Sec. 3.  29-A MRSA §901, sub-§3, ¶B, as enacted by PL 1993, c. 683, Pt. A, §2 
and affected by Pt. B, §5, is amended to read:
B.  A Except for an online used car dealer, a certificate by a state police officer or a 
representative of the Secretary of State that the applicant has an established place of 
business at each business location in the State;
Sec. 4.  29-A MRSA §903, sub-§1, ¶C, as enacted by PL 1993, c. 683, Pt. A, §2 
and affected by Pt. B, §5, is amended to read:
C.  For a dealer licensed under this chapter, except for an online used car dealer, failure 
to have an established place of business;
Sec. 5.  29-A MRSA §903, sub-§1, ¶D, as enacted by PL 1993, c. 683, Pt. A, §2 
and affected by Pt. B, §5, is amended to read:
D.  Failure  Except for an online used car dealer, failure to notify the Secretary of State 
in writing at least 30 days prior to moving the location of an established place of 
business;
Sec. 6.  29-A MRSA §951, sub-§1, ¶B, as enacted by PL 1993, c. 683, Pt. A, §2 
and affected by Pt. B, §5, is amended to read:
B.  Sells  Except for an online used car dealer, sells more than 5 vehicles in any 12-
month period; or
Sec. 7.  29-A MRSA §951, sub-§1, ¶B-1 is enacted to read:
B-1.  For an online used car dealer, sells more than 5 vehicles to one or more persons 
located in the State in any 12-month period; or
Sec. 8.  29-A MRSA §952, sub-§1, as amended by PL 2021, c. 216, §§24 to 26, is 
further amended to read:
1.  Facilities.  To  Except for an online used car dealer, to qualify for a dealer license, 
an applicant must maintain the following facilities and personnel:
A.  Facilities for the display of vehicles being handled;
B.  A repair department for repair of vehicles;
C.  Sufficient tools and equipment for servicing of the vehicles handled;
D.  A suitable office in which business is conducted and records of the business are 
kept; and
E.  At least one mechanic, who may be the owner, who has a thorough knowledge of 
the vehicles being handled.
Sec. 9.  29-A MRSA §955, sub-§2-A is enacted to read:
2-A.  Online used car dealers obtaining a place of business in the State.  An online 
used car dealer that obtains a place of business in the State is subject to the requirements 
of established places of business under this chapter and of facilities under section 952, 
subsection 1. This subsection does not apply to a facility owned by a 3rd party that inspects, 
services or repairs a motor vehicle pursuant to a contract with the online used car dealer.
Sec. 10.  29-A MRSA §957, sub-§1, as enacted by PL 1997, c. 437, §26, is amended 
to read:
1.  Annex license.  The  Except for an online used car dealer, the Secretary of State 
may issue to a dealer a license to operate an annex facility.  An annex facility must be an 
established place of business, except that books and records may be kept at the dealer's 
primary location.  An annex facility must meet the requirements of section 952, subsection 
1.  The annual fee for an annex license is $150.
Sec. 11.  29-A MRSA §957, sub-§2, as amended by PL 2013, c. 381, Pt. A, §3, is 
further amended to read:
2.  Secondary location license.  The Except for an online used car dealer, the Secretary 
of State may issue to a dealer a license to operate at a secondary location.  For the purposes 
of this subsection, "secondary location" means a display area that complies with applicable 
building codes and zoning and land use ordinances, is large enough to display at least 2 
vehicles and contains signs posting the business's name and operating hours.  The annual 
fee for a secondary location license is $100.
Sec. 12.  29-A MRSA §1001, sub-§3, as enacted by PL 1993, c. 683, Pt. A, §2 and 
affected by Pt. B, §5, is amended to read:
3.  Display.  A  Except for an online used car dealer, a license must be conspicuously 
displayed at each location. An online used car dealer shall conspicuously display a license 
on the online used car dealer's publicly accessible website used for the sale of a motor 
vehicle to a person in the State.
Sec. 13.  29-A MRSA §1003, sub-§1, as enacted by PL 1993, c. 683, Pt. A, §2 and 
affected by Pt. B, §5, is amended to read:
1.  Application for certificate and plates.  A dealer or an owner of a body shop, 
transmission shop or garage, except for an online used car dealer, may apply for a loaner 
license and plates.
SUMMARY
This bill requires online used car dealers to be licensed to sell motor vehicles to persons 
located in the State. The bill also sets out that an online used car dealer is a used car dealer 
that does not have an established place of business in the State, that has a primary place of 
business in another jurisdiction and that sells used motor vehicles through the use of a 
website or other Internet platform to a person located in the State. If an online used car 
dealer obtains a place of business in the State, the online used car dealer is a used car dealer 
subject to requirements regarding established places of business in the State and facilities, 
except for a facility owned by a 3rd party that inspects, repairs or services motor vehicles 
pursuant to a contract with the online used car dealer. An online used car dealer is required 
to conspicuously post its license on the website used for sales of motor vehicles to persons 
in the State.