Section 75IAC6-2-2. Dealer license requirements

   Under IC 9-32, dealers designated dealer-new, dealer-used, motorcycle dealer-new, and motorcycle dealer-used shall meet the following requirements:

(1) A dealer must have a license issued by the secretary of state in order to receive dealer plates.

(2) The fee from IC 9-29-17 [IC 9-29-17 was repealed by P.L.174-2016, SECTION 13, effective July 1, 2016.] is due with the application and is nonrefundable.

(3) Only one (1) dealer shall be licensed from the same address or established place of business.

(4) In addition to the requirements outlined in IC 9-32, a dealer must meet the following minimum requirements:

(A) The dealer must provide a:

(i) federal identification number; and

(ii) retail merchant's certificate number.

(B) The dealer must, for the entire licensing period, have an established place of business with an Indiana address that is not:

(i) an Indiana post office box address;

(ii) a location that functions like a mailbox box facility; or

(iii) a location that only provides ministerial services by a contract employee.

(C) Dealer licenses and dealer plates shall be mailed to the business address only.

(D) The established place of business may not house a secondary business unless that business is closely related to the sale of motor vehicles and this secondary business does not provide in excess of fifty percent (50%) of the dealer's gross income. Multiple business locations such as strip office malls, garages, or residential properties shall be accepted if:

(i) a separate exterior entrance is maintained;

(ii) a separate address is maintained, and the business location is not a part of or attached to a residential dwelling;

(iii) local zoning requirements are met;

(iv) a distinct impression of separate businesses is given to the general public, which may include distinguishable parking lot space properly marked for display of a minimum of ten (10) vehicles; and

(v) all other location and office requirements are met.

(E) The dealer's established place of business shall:

(i) be in Indiana;

(ii) be permanent, enclosed building or structure that is not a residence, tent, temporary stand, or mobile trailer not permanently affixed;

(iii) be accessible to the public;

(iv) have at least a space of one thousand three hundred (1,300) square feet and be able to accommodate the display of a minimum of ten (10) vehicles of the kind and type that the dealer is licensed to sell and space for customer parking;

(v) meet all local zoning requirements;

(vi) be well lit during hours of operation; and

(vii) have and display customer parking areas adequately surfaced with asphalt, concrete, rock, or substance that will not change with weather conditions.

(F) The dealer's office shall be:

(i) housed at the dealer's established place of business;

(ii) at least one hundred (100) square feet in size;

(iii) equipped with office furniture such as a desk, chairs, and filing cabinets;

(iv) served with utilities such as:

(AA) electricity;

(BB) lighting;

(CC) heat;

(DD) operational plumbing; and

(EE) a business telephone; and

(v) reflective of functional use and operation of the license.

(G) The dealer must provide garage liability insurance for the established place of business under IC 9-32-11-14.

(H) The dealer must provide photographs of the established place of business with the initial application for dealer license. These photographs must include, but are not limited to, the major:

(i) sales and storage lot;

(ii) exterior advertising sign;

(iii) display and office building; and

(iv) interior of office building.

The photographs must not be less than three (3) inches by five (5) inches in size. The photographs will be required to be updated if the dealership is moved or if its physical facilities are substantially altered or modified. Digital photographs must be unaltered and verifiable.

(I) The dealer must be in good standing with the:

(i) bureau of motor vehicles;

(ii) department of state revenue;

(iii) state police department; and

(iv) secretary of state.

(J) The dealer must provide, with the initial licensing application, evidence of a franchise or contract agreement, if applicable, showing a sales arrangement with a manufacturer, converter manufacturer, or distributor.

(K) The dealer must maintain, at the established place of business, a conspicuous, permanent sign identifying the dealer by the name in which the dealer is licensed and the dealership's hours of operation.

(L) The dealer's established place of business must be accessible to the public for a minimum of thirty (30) hours each week during normal business hours. An exemption for this requirement may be given at the secretary of state's discretion if the dealer is in compliance with other parts of this section. For the purpose of this section, "accessible" means the place of business must be manned:

(i) at least thirty (30) hours each week; or

(ii) at least twenty (20) hours each week and a telephone answering, paging, or mobile service offered during the remaining ten (10) hours each week, the number for which is identified on the business sign.

(Secretary of State; 75 IAC 6-2-2; filed Aug 15, 2014, 9:57 a.m.: 20140910-IR-075130566FRA)