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*hb1166*
HOUSE BILL 1166
R4 6lr2023
CF 6lr2021
By: Delegate Palakovich Carr
Introduced and read first time: February 11, 2026
Assigned to: Economic Matters and Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 10, 2026
CHAPTER ______
AN ACT concerning 1
Motor Vehicles – Dealers – Front Registration Plate Display 2
FOR the purpose of prohibiting a motor vehicle dealer from delivering certain motor 3
vehicles to a buyer or lessee unless the motor vehicles have a certain front 4
registration plate mounting hardware display mechanism or the buyer or lessee 5
signs a certain d isclosure statement acknowledging declined installation of the 6
mounting hardware display mechanism; requiring a motor vehicle dealer to report 7
submit certain information on declined installation of a certain front registration 8
plate mounting hardware display mechanism to the Motor Vehicle Administration 9
on in a certain periodic basis manner; requiring the Administration to develop a 10
certain disclosure statement ; and generally relating to the display of front 11
registration plates on motor vehicles delivered to buyers or lessees by motor vehicle 12
dealers. 13
BY repealing and reenacting, without amendments, 14
Article – Transportation 15
Section 15–101(a) and (c) and 15–305(e)(2) 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2025 Supplement) 18
BY adding to 19
Article – Transportation 20
Section 15–316 21
Annotated Code of Maryland 22
(2020 Replacement Volume and 2025 Supplement) 23
2 HOUSE BILL 1166
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Transportation 3
15–101. 4
(a) In this title the following words have the meanings indicated. 5
(c) (1) “Dealer” means, except as provided in paragraph (3) of this subsection, 6
a dealer in vehicles of a type required to be registered under Title 13 of this article. 7
(2) (i) “Dealer” includes: 8
1. A person who is in the business of buying, selling, or 9
exchanging vehicles, including a person who during any 12–month period offers to sell three 10
or more of these vehicles, the ownership of which was acquired for resale purposes; and 11
2. For the purposes of §§ 15 –301 through 15–315, inclusive, 12
of this title, any person who sells vehicles, whether or not that person acquired the vehicles 13
for personal or business use, if the vehicles are displayed at a fixed location used principally 14
for the purpose of selling vehicles on a regular basis. 15
(ii) 1. For the purposes of subparagraph (i)1 of this paragraph, a 16
person who offers to sell three or more vehicles during any 12 –month period is presumed 17
to have acquired the vehicles for resale purposes. 18
2. The vehicle owner has the burden of rebutting the 19
presumption established under subsubparagraph 1 of this subparagraph by a 20
preponderance of the evidence. 21
(3) “Dealer” does not include: 22
(i) A public official who sells or disposes of vehicles in the 23
performance of his official duties; 24
(ii) An insurance company, finance company, bank, or other lending 25
institution licensed or otherwise authorized to do business in this State that, to save it from 26
loss, sells or disposes of vehicles under a contractual right and in the regular course of its 27
business; 28
(iii) A licensed auctioneer acting on behalf of a seller, secured party 29
or owner and where title does not pass to the auctioneer and the auction is not for the 30
purpose of avoiding the provisions of this title; 31
HOUSE BILL 1166 3
(iv) A receiver, trustee, personal representative, or other person 1
appointed by or acting under the authority of any court; 2
(v) Either a manufacturer or distributor who sells or distributes 3
vehicles to license d dealers or a person employed by a manufacturer or distributor to 4
promote the sale of the vehicles of the manufacturer or distributor, if that manufacturer, 5
distributor, or person does not sell vehicles to retail buyers; 6
(vi) A person who sells or dis poses of vehicles acquired and used for 7
personal or business use and not for the purpose of avoiding the provisions of this title, if 8
that person is not engaged in buying, selling, or exchanging vehicles as a business; 9
(vii) An automotive dismantler an d recycler who during the normal 10
course of business acquires a salvage vehicle and transfers the vehicle on a salvage 11
certificate. However, if the automotive dismantler and recycler rebuilds and sells more than 12
5 vehicles during a 12–month period to a person other than another automotive dismantler 13
and recycler or licensed dealer, the automotive dismantler and recycler must be licensed as 14
a dealer under § 15–302 of this title; 15
(viii) A person engaged in the leasing of motor vehicles under leases 16
not intended as security; 17
(ix) A religious, charitable, or volunteer organization exempt from 18
taxation under § 501(c) of the Internal Revenue Code, the Department of Human Services, 19
or a local department of social services transferring a vehicle under § 13–810 of this article; 20
or 21
(x) An autonomous vehicle converter as defined in § 15 –901 of this 22
title. 23
15–305. 24
(e) (2) (i) Notwithstanding subsections (b) and (f) of this section and 25
subject to subparagraph (ii) of this paragraph, a manufacturer or distrib utor may be 26
licensed as a dealer if: 27
1. The manufacturer or distributor deals only in electric or 28
nonfossil–fuel burning vehicles; 29
2. No dealer in the State holds a franchise from the 30
manufacturer or distributor; 31
3. The manufacturer or distr ibutor, or a subsidiary, an 32
affiliate, or a controlled entity of the manufacturer or distributor, does not hold a controlling 33
interest in another manufacturer or distributor, or a subsidiary, an affiliate, or a controlled 34
entity of the other manufacturer o r distributor, that is licensed as a dealer under this 35
paragraph; and 36
4 HOUSE BILL 1166
4. No other manufacturer or distributor, or subsidiary, 1
affiliate, or controlled entity of the other manufacturer or distributor, that is licensed as a 2
dealer under this paragraph, holds a controlling interest in the manufacturer or distributor, 3
or a subsidiary, an affiliate, or a controlled entity of the manufacturer or distributor. 4
(ii) No more than four licenses may be issued under this paragraph. 5
(iii) The Administration shall adopt regulations to implement this 6
paragraph. 7
15–316. 8
(A) AFTER THE SALE, OR LEASE, OR EXCHANGE OF A NEW MOTOR VEHICLE 9
THAT WILL BE REGISTE RED IN THE STATE AND FOR WHICH TWO REGIST RATION 10
PLATES ARE REQUIRED UNDER § 13–411 OF THIS ARTICLE , A DEALER MAY NOT 11
DELIVER THE MOTOR VEHICLE TO THE BUYER OR LESSEE UNLESS: 12
(1) THE MOTOR VEHICLE IS EQUIPPED WITH REGIST RATION PLATE 13
MOUNTING HARDWARE OR ANOTHER MECHANISM CAPABLE OF SECURELY 14
DISPLAYING THE REGISTRATION PLATE ON THE FRONT OF THE MOTOR VEHICLE IN 15
ACCORDANCE WITH § 13–411 OF THIS ARTICLE; OR 16
(2) THE PURCHASER OR LESS EE SIGNS A WRITTEN S TATEMENT 17
ACKNOWLEDGING THAT: 18
(I) THE BUYER OR LESSEE D ECLINED INSTALLA TION OF 19
REGISTRATION PLATE M OUNTING HARDWARE OR ANOTHER PLATE DIS PLAY 20
MECHANISM ON THE FRONT OF THE MOTOR VEHICLE; 21
(II) THE BUYER OR LESSEE U NDERSTANDS THAT STATE LAW 22
REQUIRES THE DISPLAY OF A REGISTRATION PLATE ON THE FRONT OF THE MOTOR 23
VEHICLE; 24
(III) REGISTRATION PLATE MOUNTING HARDWARE OR ANOTHER 25
PLATE DISPLAY MECHANISM FOR THE FRONT OF THE MOTOR VEHICLE IS AVAILABLE 26
FROM THE DEALER; AND 27
(IV) FAILURE TO DISPLAY A REGISTRATION PLATE O N THE 28
FRONT OF THE VEHICLE IS A MISDEMEANOR AND MAY SUBJECT THE BUYER OR 29
LESSEE TO A FINE NOT EXCEEDING $500. 30
(B) ON A MONTHLY BASIS , A A DEALER SHALL REPORT SUBMIT EACH 31
WRITTEN STATEMENT SIGNED UNDER SUBSECTION (A)(2) OF THIS SECTION TO THE 32
HOUSE BILL 1166 5
ADMINISTRATION THE NAME OF EACH BUY ER OR LESSEE WHO SIG NED A WRITTEN 1
STATEMENT UNDER THIS SE CTION TOGETHER WITH THE DO CUMENTS REQUIRED 2
UNDER § 13–113 OF THIS ARTICLE FOR REGISTRATION OF THE VEHICLE THAT IS THE 3
SUBJECT OF THE STATEMENT. 4
(C) A DEALER WHO SUBMITS A SIGNED WRITTEN STATE MENT UNDER 5
SUBSECTION (B) OF THIS SECTION MAY NOT BE HELD LIAB LE UNDER § 26–101 OF 6
THIS ARTICLE WITH RE SPECT TO THE BUYER O R LESSEE WHO SIGNED THE 7
STATEMENT. 8
(D) THE ADMINISTRATION SHALL: 9
(1) DEVELOP A WRITTEN STA TEMENT FOR USE BY DE ALERS UNDER 10
SUBSECTION (A)(2) OF THIS SECTION; AND 11
(2) ADOPT REGULATIONS TO IMPLEMENT THIS SECTION, INCLUDING 12
PROCEDURES GOVERNING: 13
(I) THE SUBMISSION OF WRI TTEN STATEMENTS UNDE R 14
SUBSECTION (B) OF THIS SECTION; AND 15
(II) THE USE AND DISCLOSURE OF INFORMATION CONTAINED IN 16
A WRITTEN STATEMENT , INCLUDING DISCLOSURE TO LAW EN FORCEMENT FOR 17
ENFORCEMENT OF § 13–411 OF THIS ARTICLE. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2026. 20
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.