An Act to Amend Certain Motor Vehicle Laws
Maine Legislature, Session 132, LD 2179
Committee: Transportation
Sponsors: NANGLE
Amends: 29-A MRSA §451, 29-A MRSA §951, 29-A MRSA §954-A, 29-A MRSA §958

Legislative Document
No. 2179
S.P. 884
In Senate, January 27, 2026
An Act to Amend Certain Motor Vehicle Laws
Submitted by the Secretary of State pursuant to Joint Rule 203.
Reference to the Committee on Transportation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator NANGLE of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  29-A MRSA §451, sub-§6, as amended by PL 2023, c. 421, §4, is repealed.
Sec. 2.  29-A MRSA §951, sub-§1, as amended by PL 1997, c. 776, §29, is further 
amended to read:
1.  Definition.  A person is "engaged in the business of buying, selling, exchanging, 
offering to negotiate, negotiating or advertising a sale of vehicles or equipment" if that 
person:
A.  Buys or acquires vehicles or equipment for the purpose of resale;
B.  Sells more than 5 vehicles or pieces of equipment in any 12-month period; or
C.  Advertises in any form 3 or more vehicles or pieces of equipment for sale or displays 
or more vehicles or pieces of equipment for sale within a 30-day period, in any 
location, including on premises controlled by that person.;
D.  Acts in any capacity as an agent, representative or intermediary for the owner of a 
vehicle or piece of equipment for the purpose of selling, leasing, consigning, brokering 
or otherwise transferring the vehicle or piece of equipment; or
E.  Acts in any capacity as an agent, representative or intermediary for a purchaser, 
lessee or other person seeking to buy, lease or acquire a vehicle or piece of equipment.
Vehicles owned and registered by that person for at least 6 months are not included for 
purposes of this definition.
Sec. 3.  29-A MRSA §951, sub-§2, as amended by PL 2005, c. 433, §13 and 
affected by §28, is further amended to read:
2.  Dealers must be licensed.  A person may not engage in the business of buying, 
selling, exchanging, offering to negotiate, negotiating or advertising a sale of vehicles or 
equipment unless that person has been issued a license under this subchapter.  A dealer 
licensed by any other jurisdiction who that sells vehicles or equipment only to licensed 
dealers in this State is exempt from this subsection.  Violation of this subsection is a Class 
E crime.
Sec. 4.  29-A MRSA §951, sub-§4, as amended by PL 2005, c. 71, §1, is further 
amended to read:
4.  Exemptions.  Financial institutions, as defined in Title 9‑B, section 131, subsections 
and 17‑A, are exempt from the requirements of this section when selling vehicles or 
equipment repossessed and sold by full-time employees of the institution.  Financial 
institutions that do not use full-time employees to repossess and sell vehicles or equipment 
must use dealers licensed pursuant to this chapter.
Any public or nonprofit organization that, for the purpose of making vehicles available to 
low-income persons, accepts donated vehicles and provides them to low-income persons 
at a cost that is no more than the cost of ensuring that the vehicle is in good operating 
condition is exempt from the requirements of this section.  A public or nonprofit 
organization that transfers a vehicle under this subsection is subject to the provisions of 
Title 10, chapter 217 and shall register with the Secretary of State and maintain a certificate 
of training as required by the Secretary of State.
Any public or nonprofit organization whose sole or primary purpose is to provide 
transportation for persons 65 years of age or older that accepts donated vehicles for the 
purpose of providing that transportation or accepts in trade for transportation services the 
vehicles belonging to persons 65 years of age or older who use those transportation services 
is exempt from the requirements of this section.  A public or nonprofit organization that 
transfers a vehicle under this subsection is subject to the provisions of Title 10, chapter 217 
and shall register with the Secretary of State and maintain a certificate of training as 
required by the Secretary of State.
Sec. 5.  29-A MRSA §954-A, sub-§3, as enacted by PL 1993, c. 683, Pt. A, §2 and 
affected by Pt. B, §5 and reallocated by PL 2023, c. 257, §7, is amended to read:
3.  Trucks.  A temporary registration plate may not be used on a loaded truck without 
a written permit from the Secretary of State.
Sec. 6.  29-A MRSA §958 is enacted to read:
§958.  Online used car dealer licensure and regulation
1.  Online used car dealer; definition.  As used in this section, unless the context 
otherwise indicates, "online used car dealer" means a licensed used motor vehicle dealer 
that conducts sales exclusively through electronic or digital platforms and does not operate 
a physical retail display location in this State.  An online used car dealer may partner with 
a service center or inspection station licensed in this State as required by law but may not 
maintain an in-person sales lot. 
2.  Licensure and regulation.  The bureau shall conduct a 2-year pilot program to 
license and regulate online used car dealers operating under this section.  The bureau may 
license and regulate online used car dealers operating under this section. 
3.  Eligibility.  To qualify for licensure as an online used car dealer, an applicant must: 
A.  Hold valid authority as a corporation or limited liability entity in good standing 
with the Secretary of State; 
B.  Demonstrate motor vehicle sales in multiple jurisdictions within the United States; 
C.  Provide proof of a minimum of 100 annual motor vehicle sales; and 
D.  Meet all background check requirements established by the Secretary of State. 
4.  Application for license.  The following provisions govern the application for a 
license for an online used car dealer. 
A.  An online used car dealer shall apply for a license in accordance with the 
requirements under section 901. 
B.  An online used car dealer is exempt from the established place of business 
requirements set forth in sections 851 to 952 but may maintain a physical location in 
this State.  If an online used car dealer elects to establish or operate a physical office, 
inspection station or repair facility in this State, that location must fully comply with 
all applicable dealer licensing standards and regulatory requirements in effect for used 
car dealer licensees. 
C.  An online used car dealer shall file with the Secretary of State and maintain a surety 
bond of $350,000. 
D.  The annual fee for an online used car dealer license is $500. 
5.  License requirements.  Unless expressly modified by this section, an online used 
car dealer is subject to and shall comply with all applicable laws, rules and regulations 
governing the licensing and sale of new and used motor vehicles in this State. 
6.  Disclosure requirements.  The following provisions govern online used car dealer 
disclosures. 
A.  An online used car dealer is exempt from the physical display requirements set 
forth in Title 10, sections 1474 and 1475.  At the time of an electronic or digital display 
on an electronic or digital platform, an online used car dealer shall provide a consumer 
with a disclosure consistent with the requirements of Title 10, chapter 217 and the 
Federal Trade Commission's Used Motor Vehicle Trade Regulation Rule in 16 Code 
of Federal Regulations, Part 455. 
B.  A disclosure form authorized by this State must be provided to the purchaser at the 
time of delivery to the purchaser, signed by the purchaser and retained by the online 
used car dealer in compliance with the record-keeping requirements of Title 10, chapter 
217. 
7.  Inspection requirements.  The following provisions govern inspections of motor 
vehicles under this section. 
A.  A motor vehicle sold by an online used car dealer must pass an inspection in this 
State prior to sale.  A reconstructable motor vehicle as defined in Title 10, section 1471, 
subsection 6-A or an unsafe motor vehicle may not be sold by an online used car dealer. 
B.  A motor vehicle sold to a purchaser in this State must be inspected by an inspection 
station licensed in this State prior to delivery to the purchaser and must display a valid 
inspection sticker issued within 60 days of sale. 
8.  Inspection stations; repair facilities.  The following provisions govern inspection 
stations and repair facilities in relation to online used car dealers. 
A.  An online used car dealer may obtain a license for an inspection station in this State.  
All standards governing inspection stations apply to such an inspection station. 
B.  An online used car dealer may partner with an inspection station in this State.  The 
partner inspection station must be included in the application for licensure and renewal.  
The partnership must be set out in writing.  Any changes to the partnership must be 
immediately disclosed to the bureau. 
C.  The failure of an online used car dealer to obtain a license for an inspection station 
in this State or to have a partner inspection station in this State is grounds for 
suspension of a license issued pursuant to subsection 4. 
D.  An online used car dealer that does not maintain a repair facility in this State shall, 
in writing, disclose to a vehicle purchaser the name, address and contact information 
of a designated repair facility or a partner location authorized to perform required 
warranty service.  The disclosure must be provided at or before the time of the vehicle 
sale and included in the online used car dealer's warranty documentation. 
9.  Records.  All sales and transaction records must be maintained in accordance with 
section 956, may be kept electronically and must be produced within one business day upon 
request of the Secretary of State, the Attorney General or a law enforcement officer.
10.  Plates.  An online used car dealer is not eligible for dealer plates.  Temporary 
plates issued by this State may be issued only for sales to purchasers in this State. 
11.  Contact information.  An online used car dealer shall: 
A.  Provide a direct-access telephone number to a designated corporate representative 
of the online used car dealer who is authorized to assist the bureau and the Office of 
the Attorney General in resolving consumer complaints and inquiries and in obtaining 
required records; 
B.  Provide written customer support contact information, including a toll-free 
telephone number and electronic communication address, to each purchaser at the time 
of sale; and 
C.  Maintain business hours at reasonable times during which a customer can contact 
the online used car dealer. 
12.  Enforcement.  The following provisions govern enforcement of this section. 
A.  An online used car dealer's failure to comply with the provisions of this section, 
including inspection, disclosure, warranty obligations or record retention, constitutes 
grounds for license suspension or revocation under section 903. 
B.  Breach of a consumer sales contract by an online used car dealer is expressly 
grounds for administrative action, including license suspension or revocation under 
section 903. 
C.  An online used car dealer shall designate an agent registered in this State to accept 
service of process.  The name and contact information of the registered agent must be 
provided to the bureau. 
13.  Rulemaking.  The Secretary of State may adopt rules to implement this section, 
including licensing procedures, disclosure formats, inspection coordination and reporting 
requirements.  Rules adopted under this subsection are routine technical rules as defined in 
Title 5, chapter 375, subchapter 2-A. 
14.  Repeal.  This section is repealed December 31, 2028. 
Sec. 7.  Report.  The Secretary of State shall submit a report to the joint standing 
committee of the Legislature having jurisdiction over transportation matters no later than 
January 15, 2028 evaluating the effectiveness, risks and consumer protection outcomes of 
online used car dealer licensure and regulation established in the Maine Revised Statutes, 
Title 29-A, section 958.  The joint standing committee of the Legislature having jurisdiction 
over transportation matters may report out legislation regarding the Secretary of State's 
report to the Second Regular Session of the 133rd Legislature.
SUMMARY
This bill makes the following changes to the laws governing motor vehicles.
1.  It eliminates the requirement to produce license plates at the Bolduc Correctional 
Facility.
2.  It amends the definition of "engaged in the business of buying, selling, exchanging, 
offering to negotiate, negotiating or advertising a sale of vehicles" to add equipment. 
3.  It provides that a loaded truck cannot be operated on a temporary registration plate. 
4.  It authorizes the Department of the Secretary of State, Bureau of Motor Vehicles, 
until December 31, 2028, to license and regulate used car dealers that sell vehicles 
exclusively online.  The Secretary of State must submit a report to the joint standing 
committee of the Legislature having jurisdiction over transportation matters no later than 
January 15, 2028 evaluating the effectiveness, risks and consumer protection outcomes of 
online used car dealer licensure and regulation.  The joint standing committee of the 
Legislature having jurisdiction over transportation matters may report out legislation 
regarding the Secretary of State's report to the Second Regular Session of the 133rd 
Legislature.