23-2-513. Dealer's or manufacturer's identifying number -- premises -- inspection -- bond -- judgment -- temporary registration permit. (1) A dealer or manufacturer may apply directly to the department of justice for one identifying number and one or more certificates of number. A dealer's or manufacturer's identifying number and the registration decal must be displayed on a dealer's or manufacturer's boat while the boat is operating for a purpose related to the buying, selling, exchanging, or performance testing of the boat by the dealer, manufacturer, or potential buyer.
     (2) The application for a dealer's or manufacturer's identifying number must include the dealer's or manufacturer's name and business address. Each dealer or manufacturer must have one identifying number assigned to the dealer's or manufacturer's business.
     (3) An application for a dealer's or manufacturer's identifying number and a certificate of number must be accompanied by the following fees:
     (a) for the identifying number, first certificate of number, and registration decal, $5;
     (b) for each additional certificate of number and registration decal applied for in any application, $2.
     (4) The department of justice shall issue certificates of number for the identifying number assigned to a dealer or manufacturer in the same manner as provided in 23-2-512, except that a boat may not be described in a certificate and each certificate must state that the identifying number has been assigned to a dealer or manufacturer. A dealer's or manufacturer's certificate of number expires on December 31 of the year for which it is issued.
     (5) A dealer's or manufacturer's identifying number and the registration decal must be displayed in the same manner as provided in 23-2-512, except that the number may be temporarily attached. The last three letters must be "DLR" for dealer and "MFR" for manufacturer. These letters must be included, respectively, in dealer or manufacturer identification numbers.
     (6) A dealer's or manufacturer's identifying number and the registration decal may be displayed only on motorboats or sailboats that are for sale, owned, or on consignment by the dealer or manufacturer. Consignment boats displaying a dealer's or a manufacturer's identifying number and a registration decal must have a signed and dated consignment contract available for verification that the boat is on consignment.
     (7) A dealer or manufacturer or an employee of a dealer or manufacturer may not use a dealer's or manufacturer's identifying number for any purpose other than the purpose described in subsection (1).
     (8) A dealer shall maintain a principal place of business, coinciding with the business address listed on the application, where all business records are maintained and where the dealer displays, sells, and services merchandise. The dealer shall display a sign at the place of business that clearly states the name of the business. The premises of the dealer's principal place of business must be inspected by an official of the department of justice to ensure compliance with this section.
     (9) To qualify for renewal of a boat dealer's license, the dealer shall certify to the department of justice, upon application for renewal, that the dealer sold five or more boats during the previous license year. If five or more boats were not sold, an additional fee of $50 is required for renewal of the dealer's license.
     (10) (a) The applicant for a boat dealer's license shall file with the application a bond of $5,000. The bond must be conditioned that the applicant will conduct the business in accordance with the requirements of the law. All bonds must run to the state of Montana, must be approved by the department of justice and filed in its office, and must be renewed annually.
     (b) A person who suffers loss or damage because of the unlawful conduct of a dealer licensed under this section shall obtain a judgment from a court of competent jurisdiction prior to collecting on the bond. The judgment must determine a specific loss or damage amount and conclude that the licensee's unlawful operation caused the loss or damage before payment on the bond is required.
     (11) Within 30 days following the delivery of a motorboat or a sailboat 12 feet in length or longer to a purchaser, the dealer shall forward an application for certificate of title executed by the purchaser and the assigned manufacturer's certificate of origin or certificate of title for the motorboat or sailboat to the office of the county treasurer in the county where the owner resides. If the dealer is an authorized agent, as defined in 61-1-101, a temporary registration permit may be issued upon delivery of the motorboat or sailboat to the purchaser in accordance with 61-3-224. The dealer shall remove any registration decal prior to selling any used boat.

     History: En. Sec. 4, Ch. 285, L. 1959; amd. Sec. 1, Ch. 219, L. 1961; amd. Sec. 1, Ch. 336, L. 1969; amd. Sec. 2, Ch. 348, L. 1969; amd. Sec. 45, Ch. 391, L. 1973; amd. Sec. 51, Ch. 511, L. 1973; amd. Sec. 3, Ch. 514, L. 1973; amd. Sec. 1, Ch. 52, L. 1974; amd. Sec. 7, Ch. 124, L. 1977; amd. Sec. 45, Ch. 566, L. 1977; R.C.M. 1947, 69-3504(4), (5); amd. Sec. 3, Ch. 136, L. 1979; amd. Sec. 2, Ch. 312, L. 1985; amd. Sec. 34, Ch. 83, L. 1989; amd. Sec. 3, Ch. 375, L. 1991; amd. Sec. 20, Ch. 477, L. 2003; amd. Sec. 8, Ch. 592, L. 2003; amd. Sec. 4, Ch. 237, L. 2005; amd. Sec. 22, Ch. 542, L. 2005; amd. Sec. 23, Ch. 596, L. 2005.