N.D. Cent. Code § 2-08-03

2-08-03. Aircraft dealer's license - Fees - Dealer's place of business

No person, partnership, association, corporation, or limited liability company may engage in

the business of buying, selling, leasing, or exchanging aircraft, or advertise or hold out to the

public as being in the business of buying, selling, leasing, or exchanging of aircraft without first

being licensed as provided in this chapter.

The aeronautics commission shall prescribe and furnish license and renewal license

application forms. A nonrefundable fee of one hundred fifty dollars must accompany each

application for each dealer location. A dealer's license expires on December thirty-first of each

year, and application for renewal must be made before the expiration of the current dealer's

license. For each annual one hundred fifty dollar license fee or renewal, the dealer must be

issued one dealer's registration for one demonstrator aircraft. Additional dealer's demonstrator

aircraft registrations must be issued to a licensed dealer upon the payment of ten dollars for

each additional demonstrator aircraft, provided such demonstrator aircraft are not used for

commercial purposes to produce rental or air taxi revenue, or used for aerial spraying while

awaiting sale or trade. All new or used demonstrator aircraft which are for resale but are used by

a dealer to produce commercial revenue, or air taxi or rental revenue or for aerial spraying must

be registered with the commission and the annual registration fees paid in accordance with the

laws of this state. Fees from license applications of aircraft dealers must be deposited with the

state treasurer and credited to the aeronautics commission special fund. Fees received for

additional aircraft registrations for demonstrator aircraft must be deposited with the state

treasurer, who shall deposit such funds in the aeronautics commission special fund.

An applicant for a license or renewal of a license shall submit to the aeronautics

commission an inventory of aircraft held by the applicant along with a separate demonstration

flight log of time accumulated for those demonstration flights and aircraft tachometer readings

for each aircraft on the date of initial application and on November thirtieth before the yearly

renewal time. Information on inventory must be provided to the commission on an approved

report form. If an aircraft is held in inventory for more than twelve months and is flown more than

fifty hours of flight time in any given twelve-month period of time, the commission shall

determine if the aircraft is a demonstration aircraft. When the hours flown exceed fifty hours in

the twelve-month period, the aircraft is presumed not to be a demonstration aircraft and the

aircraft excise tax must be remitted to the aeronautics commission under chapter 57-40.5

unless upon satisfactory proof the aeronautics commission determines the aircraft is used

exclusively for demonstration purposes.

The aeronautics commission shall issue dealer's licenses only to dealers who maintain a

permanent place of business on an airport open for public use, whether publicly or privately

owned in the state of North Dakota, with runway length, aprons, and safe aircraft approaches

adequate for fixed wing aircraft or helicopters of the type sold by such a dealer. An established

central place on an airport means that such dealer has an enclosed office, building, or structure

owned or leased with adequate facilities and equipment for the maintenance, service, and repair

of aircraft. The dealer shall maintain business records in the dealer's place of business. The

dealer's place of business must be adequate to conduct an aircraft dealer's business where

selling, trading, and bartering of aircraft may be conducted and may not be a residence or

temporary quarters or so-called permanent quarters occupied pursuant to temporary
the maintenance, service, and repair

of aircraft. The dealer shall maintain business records in the dealer's place of business. The

dealer's place of business must be adequate to conduct an aircraft dealer's business where

selling, trading, and bartering of aircraft may be conducted and may not be a residence or

temporary quarters or so-called permanent quarters occupied pursuant to temporary

arrangements. An applicant for an aircraft dealer's license cannot qualify with only a privately

owned aircraft hangar as a place of business, which is usually used for storage of aircraft on an

airport open for public use. An aircraft dealer to qualify for a dealer's license must maintain an

aircraft or helicopter service and repair shop on an airport open for public use with a minimum of

five thousand dollars in tools, equipment, aircraft parts, and supplies, as determined by a

representative of the director of the aeronautics commission.

The aeronautics commission shall issue a license only after inspection and approval of the

aircraft dealer's facilities.