(Added 12-13-2021 by Ord. No. C0203-21)
The city council may, by petition, grant motor vehicle dealer licenses, as the public good requires and subject to standard terms and conditions, to such parties deemed appropriate, subject to the provisions of these Revised Ordinances and applicable state statutes.
(Added 12-13-2021 by Ord. No. C0203-21)
The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
MOTOR VEHICLE DEALER
A motor vehicle dealer - 1st class, a motor vehicle dealer - 2nd class or a motor vehicle dealer - 3rd class.
MOTOR VEHICLE DEALER – 1st CLASS
Any party whose principal business is the sale of new motor vehicles.
MOTOR VEHICLE DEALER – 2nd CLASS
Any party whose principal business is the buying and/or selling of used motor vehicles.
MOTOR VEHICLE DEALER – 3rd CLASS
Any party whose principal business is one of the following:
(a) 
Operation of a motor vehicle junkyard;
(b) 
Buying of used motor vehicles for the purpose of remodeling, taking apart or rebuilding and selling the same;
(c) 
Buying or selling of used parts of motor vehicles or tires; and/or
(d) 
Assembling of used motor vehicle parts.
SECOND-HAND MOTOR VEHICLE
Any motor vehicle that has been driven other than to move or road test prior to delivery to a consumer.
State law reference(s): Classes, MGL c. 140, § 58.
(Added 12-13-2021 by Ord. No. C0203-21)
(a) 
Any party whose principal business activity is that of a motor vehicle dealer — 1st class or a motor vehicle dealer - 3rd class shall be required to obtain and maintain the appropriate motor vehicle dealer license from the city council.
(b) 
Businesses that require a motor vehicle dealer - 2nd class license. Any party whose principal business activity is listed below shall be required to obtain and maintain a motor vehicle dealer — 2nd class license from the city council:
(1) 
The buying, selling, exchanging or assembling of second-hand motor vehicles, or parts thereof;
(2) 
The conducting of auctions for the sale of motor vehicles; and
(3) 
The leasing and/or renting of motor vehicles when, as an incident to such business activity, sells or offers to sell any such leased or rental vehicles to the general public.
State law reference(s): Sale of second-hand vehicles; necessity of license, exceptions, MGL c. 140, § 57.
(c) 
Businesses that do not require a motor vehicle dealer — 2nd class license. Any party whose principal business is listed below and incidentally acquires and sells second-hand vehicles shall not be required to obtain a motor vehicle dealer - 2nd class license:
(1) 
The manufacture of new motor vehicles;
(2) 
The sale of new motor vehicles provided that the only second-hand motor vehicles acquired and/or sold by the dealer were taken in trade or exchange for other motor vehicles purchased from said dealer;
(3) 
The financing of purchases of motor vehicles; and
(4) 
The insuring of motor vehicles.
State law reference(s): Sale of second- hand vehicles; necessity of license, exceptions MGL c. 140, § 57.
(d) 
No party requiring a motor vehicle dealer license shall operate as a motor vehicle dealer located in whole or in part within the limits of the city unless such party has obtained and holds the required license for said purpose from the city council.
(e) 
No owner of any property located in whole or in part within the limits of the city shall allow any party requiring a motor vehicle dealer license to operate as a motor vehicle dealer on said property unless such party has first obtained the required license for said purpose from the city council.
(f) 
Any party holding a motor vehicle dealer license shall only exercise such license at the property address at which such license was granted.
(g) 
Any violations of this section shall be reported to the city clerk. After conferring with the city solicitor and/or the president of the city council, if necessary, the city clerk may:
(1) 
For any party operating as a motor vehicle dealer — 2nd class, issue a fine of not less than $200 and not more than $1,000; and/or
State law reference(s): Unlicensed business, MGL c. 140, § 68.
(2) 
For any party operating as a motor vehicle dealer — 1st or 3rd class license, issue a fine in accordance with Section 1-8 of these Revised Ordinances to the party operating as an unlicensed motor vehicle dealer; and/or
(3) 
Issue fines in accordance with Section 1-8 of these Revised Ordinances to the owner of the property on which a party is operating an unlicensed motor vehicle dealer; and/or
(4) 
Issue a cease and desist order to the party operating as an unlicensed motor vehicle dealer.
(Added 12-13-2021 by Ord. No. C0203-21)
(a) 
The city council reserves the right to limit the number of motor vehicle dealers operating within the city limits.
(b) 
Currently, the number of motor vehicle dealer -2nd class licenses issued by the city council shall not exceed one (1) per one thousand three hundred (1,300) residents, as determined by the most recent federal census.
(Added 12-13-2021 by Ord. No. C0203-21)
(a) 
All applications for motor vehicle dealer licenses pursuant to this division shall be completed, reviewed and processed in accordance with the provisions of Section 12-303 of this chapter with the following additions/modifications:
(1) 
The applicant shall indicate on their motor vehicle dealer application form the type of motor vehicle dealer license (1st, 2nd or 3rd class) being requested.
(b) 
License conditions and restrictions.
(1) 
All motor vehicle dealer licenses shall be subject to the standard license and permit conditions and restrictions for licenses and permits issued under the authority of the city council as specified in Section 12-308(a) of this chapter.
(2) 
All motor vehicle dealer licenses shall also be subject to the following conditions and restrictions:
a. 
The allowed days and hours for the off-loading of new and used motor vehicles to be sold by motor vehicle dealers shall be as prescribed in Section 12-2002(c)(5) of these Revised Ordinances.
b. 
The usage of banners, flags, etc., as decorations at the business location shall be discouraged as to help to maintain a professional, business-like atmosphere.
(3) 
All motor vehicle dealer - 1st class licenses shall also be subject to the following conditions and restrictions:
a. 
The license holder shall be a recognized agent of a motor vehicle manufacturer under a written contract with such manufacturer to sell motor vehicles produced by such manufacturer.
b. 
The license holder's purchase and sale of used motor vehicles shall be incidental or secondary to the sale of new motor vehicles.
c. 
The license holder shall have facilities on their licensed premises to satisfy the warranty repair obligations for vehicles sold by the license holder.
(4) 
All motor vehicle dealer - 2nd class licenses shall also be subject to the following conditions and restrictions:
a. 
The license holder shall own all vehicles for sale on their licensed site.
b. 
All vehicles for sale on the licensed premises of the license holder shall be so identified in a manner approved by the city council.
c. 
Proper office facilities shall be maintained at the location where the license is granted for the conduct of business.
d. 
The license holder shall maintain access to repair facilities sufficient to enable them to satisfy the warranty repair obligations for vehicles sold by the license holder.
e. 
The license holder shall maintain a surety bond or other equivalent proof of financial responsibility satisfactory to the city council in the amount of $25,000.
(5) 
All motor vehicle dealer - 3rd class licenses shall also be subject to the following conditions and restrictions:
a. 
Any motor vehicle dealer - 3rd class license granted for a motor vehicle junkyard shall be in compliance with the requirements of MGL c. 140, § 59A.
(6) 
The city council may impose other reasonable restrictions and conditions on individual motor vehicle dealer licenses as they deem necessary to protect the public safety and welfare. Such restrictions and conditions may include, but are not limited to:
a. 
Further limitations on the days and hours of operation;
b. 
Further limitations on the usage of decorations;
c. 
Fencing and screening;
d. 
Parking;
e. 
Location of vehicle storage; and
f. 
Number of vehicles.
(c) 
Petitions for motor vehicle dealer licenses shall be considered by the city council in accordance with the provisions of Section 12-309 of this chapter.
(d) 
Petitions for approved motor vehicle dealer licenses shall be processed in accordance with the provisions of Section 12-310 of this chapter with the following additions/modifications.
(e) 
Petitions for denied motor vehicle dealer licenses shall be processed in accordance with the provisions of Section 12-311 of this chapter.
(f) 
Renewals of existing motor vehicle dealer licenses shall be processed in accordance with the provisions of Section 12-312 of this chapter.
(g) 
The process used to monitor and ensure compliance with the conditions and restrictions placed on motor vehicle dealer licenses, as well as the possible penalties for such non-compliance, are prescribed in Section 12-313 of this chapter.
(h) 
Reviews of existing motor vehicle dealer licenses shall proceed in accordance with the provisions of Section 12-314 of this chapter.
(i) 
The method used to file and process complaints regarding a motor vehicle dealer license is prescribed in Section 12-318 of this chapter.
(j) 
Suspensions of existing motor vehicle dealer licenses shall proceed in accordance with the provisions of Section 12-315 of this chapter.
(k) 
Revocations of existing motor vehicle dealer licenses shall proceed in accordance with the provisions of Section 12-316 of this chapter with the following additions/modifications:
(1) 
The city clerk shall forthwith notify the Massachusetts Registrar of Motor Vehicles of the revocation of such motor vehicle dealer license; and
(2) 
No new motor vehicle dealer license shall be granted to such party thereafter, nor to any other party for the same use on the same premises, without the approval of the Massachusetts Registrar of Motor Vehicles.
State law reference(s): Revocation; MGL c. 140, § 57.