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Regular Session, 2010
HOUSE BILL NO. 1189
BY REPRESENTATIVE WADDELL
MOTOR VEHICLES: Provides relative to the La. Used Motor Vehicle Commission
AN ACT1
To amend and reenact R.S. 32:781(13)(a)(i), 783(F)(3) and (6) and (G), 784(A)(4),2
791(A)(1), (B)(1) and (4)(a), (G)(1), and (J), 792(A)(introductory paragraph) and3
(B)(introductory paragraph), and 802(D), (F), and (G) and to enact R.S. 32:781(17)4
and (18), 784(A)(5) and (D), and 794, relative to the Louisiana Used Motor Vehicle5
Commission; to define "used motor vehicle dealer"; to define "public or retail motor6
vehicle auction"; to define "wholesale motor vehicle auction"; to provide for the sale7
of a used motor vehicle "as is"; to provide for the commission's power to hold8
hearings; to establish a license for rental motor vehicle dealers; to authorize off-9
premises permits; to provide for the Louisiana Used Motor Vehicle Commission10
Fund; to provide for application procedures; to provide for expiration of licenses; to11
provide for a bond requirement; to provide for education requirements; to repeal12
expired provisions; to provide for denial of a license; to authorize revocation or13
suspension of a license, issuance of a civil fine or penalty, or injunction for certain14
acts; to provide for wholesale motor vehicle auction violations; to provide for15
suspension, revocation, or refusal of a license or permit for committing an unlawful16
action during a wholesale motor vehicle auction; to authorize an injunction or civil17
fines and penalties for committing an unlawful action during a wholesale motor18
vehicle auction; and to provide for related matters.19
Be it enacted by the Legislature of Louisiana:20 HLS 10RS-1503 REENGROSSED
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Section 1. R.S. 32:781(13)(a)(i), 783(F)(3) and (6) and (G), 784(A)(4), 791(A)(1),1
(B)(1) and (4)(a), (G)(1), and (J), 792(A)(introductory paragraph) and (B)(introductory2
paragraph), and 802(D), (F), and (G) are hereby amended and reenacted and R.S. 32:781(17)3
and (18), 784(A)(5) and (D), and 794 are hereby enacted to read as follows: 4
§781. Definitions5
As used in this Chapter:6
* * *7
(13)(a)(i) "Used motor vehicle dealer" means any person , partnership,8
corporation, limited liability company, or other entity who, for a commission or with9
intent to make a profit or gain of money or other thing of value, buys, sells, brokers,10
exchanges, rents with option to purchase, auctions, offers, or attempts to negotiate11
a sale or exchange of an interest in used motor vehicles and who is engaged wholly12
or in part in the business of buying and selling used motor vehicles, whether such13
motor vehicles are owned by such person and whether the motor vehicles are sold14
from a dealership location or via any form of advertising, including but not limited15
to the Internet. A person shall be presumed to be engaged in the business of selling16
used motor vehicles if he sells five or more used motor vehicles in any twelve-month17
period which vehicles are not registered to and insured by members of the18
individual's household, immediate family members, or legal entities which the19
individual has an ownership interest in or is employed by. An entity shall be20
presumed to be engaged in the business of selling used motor vehicles if the entity21
sells five or more used motor vehicles which are not registered to and insured by the22
entity or by an entity affiliated with the entity receiving anything of value.23
* * *24
(17) "Public or retail motor vehicle auction" means the act of any person,25
partnership, corporation, limited liability company, or other entity engaging in, for26
a commission, compensation, or other consideration, the business of providing27
vehicle auction services at an established place of business which is not open28
exclusively to motor vehicle dealers, dismantlers, and parts recyclers.29 HLS 10RS-1503 REENGROSSED
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(18) "Wholesale motor vehicle auction" means the act of any person,1
partnership, corporation, limited liability company, or other entity engaging in, for2
a commission, compensation, or other consideration, the business of providing3
wholesale vehicle auction services at an established place of business which is open4
exclusively to licensed motor vehicle dealers, dismantlers, and parts recyclers.5
* * *6
§783. Used Motor Vehicle Commission; appointment and qualification; terms of7
office; powers and duties8
* * *9
F. The commission's powers and duties shall include but are not limited to10
the following:11
* * *12
(3) Requiring all dealer sales to have a condition of sale, such as warranty13
disclaimer, implied or written warranty, or a service contract approved by the14
commission. If a sale of a used motor vehicle is "as-is" and with a waiver of all15
warranties, the bill of sale shall include a notice which clearly and unambiguously16
states that the terms of the sale are "as-is" and with a waiver of all warranties,17
including any claim for redhibition or reduction of or return of the purchase price.18
The customer shall acknowledge the terms of the sale. An acknowledgment of the19
terms of the sale via acceptance of an electronic notice at any time prior to or as part20
of the transaction shall constitute compliance with this Section. If a used motor21
vehicle dealer complies with the provisions of the Section, the purchaser shall not22
be entitled to a return of the purchase price, a reduction in the purchase price, or a23
repair of the vehicle without payment of the cost of the repair.24
* * *25
(6) Holding and conducting hearings on violations of this Chapter, areas of26
responsibility disputes, mandatory repurchase disputes, imposing civil penalties,27
cease and desist orders, and revocation or suspension of licenses.28
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G. All fees and charges under the provisions of this Chapter shall be1
collected and received by the executive director of the commission and deposited by2
him in a special fund with the state treasury to be known as the Louisiana Used3
Motor Vehicle and Parts Commission Fund. The proceeds of the fund shall be4
disbursed by him at the direction of the commission in administering and enforcing5
the provisions of this Chapter.6
* * *7
§784. Dealers, manufacturers, dismantlers, and distributors auctions to be licensed;8
exception9
A. No person, firm, or corporation, unless licensed to do so by the10
commission under the provisions of this Chapter, shall carry on or conduct the11
business of:12
* * *13
(4) Used Public or retail motor vehicle auctions, wholesale motor vehicle14
auctions, or and salvage pools that deal in used motor vehicles.15
(5) Rental dealer as defined in R.S. 32:793(A)(5).16
* * *17
D. No person, partnership, corporation, limited liability company, or other18
entity licensed by the Louisiana Used Motor Vehicle Commission shall display any19
used motor vehicle at any place other than at a facility licensed by the commission,20
unless an off-premises permit authorizing the display of such used motor vehicle at21
the location has been issued by the commission. The commission may issue one off-22
premises permit to a dealer in any ninety-day period in accordance with rules and23
regulations authorizing the display of up to five vehicles at an event within thirty-24
five miles of the dealer's place of business for a period of up to three days.25
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§791. Application for license; fee; educational seminar; bond requirements; liability1
insurance; salesperson's license; location of business2
A.(1) It shall be unlawful and shall constitute a misdemeanor for any person,3
firm, association, corporation, limited liability company, or trust to engage in4
business as, or serve in the capacity of, or act as a used motor vehicle dealer, rental5
dealer, or used motor vehicle salesperson in this state without first obtaining a6
license therefor as provided in this Section.7
* * *8
B.(1) Applications for licenses required under the provisions of this Section9
licensure as a used motor vehicle dealer shall be verified signed by the oath or10
affirmation of the applicant, shall be on forms prescribed by the commission and11
furnished to such applicants, and shall contain such information as the commission12
deems necessary to enable it to fully determine the qualifications and eligibility of13
the several applicants to receive the license or licenses.14
* * *15
(4)(a) All bonds and licenses issued under the provisions of this Part shall16
expire on December thirty-first following the date of issue be for the license period17
and shall be nontransferable.18
* * *19
G.(1) Every person, firm, or corporation before being licensed hereunder20
applicant for licensure or renewal of a license as a used motor vehicle dealer shall21
show proof of responsibility by depositing with the commission a continuing bond22
in the amount required herein: 23
(a) of twenty Twenty thousand dollars if the applicant sold less than one24
hundred and twenty vehicles during the twelve month period preceding the licensure25
period.26
(b) Thirty-five thousand dollars if the applicant sold one hundred and twenty27
or more vehicles during the twelve month period preceding the licensure period.28 HLS 10RS-1503 REENGROSSED
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(c) All bonds shall be with a commercial surety thereon of a company1
authorized to do business in the state, which bond shall be approved by the2
commission, payable to the state of Louisiana through the commission, and shall be3
conditioned upon faithful observance of all laws regulated by the commission,4
including but not limited to laws relating to penalties and hearing costs and to the5
proper disposition of licenses, tags, or titles, and shall also indemnify any person6
who suffers any loss by reason of a failure to observe the provisions of the law7
relating to sales tax, licenses, tags, or titles and shall also indemnify any person who8
suffers any loss, damages, and expenses by reason of a failure to deliver title and for9
the proper disposition of all taxes, licenses, and registration fees.10
* * *11
J.(1) Any new applicants Applicants for a license issued licensure pursuant12
to this Part, other than a used motor vehicle dealer's license, who have not been13
previously licensed prior to January 1, 2004, shall submit such evidence as the14
commission shall prescribe, documenting that either the applicant or his general15
manager, office manager, title clerk, or other responsible representative of the16
applicant has attended a four-hour educational seminar or has registered to attend17
such seminar within sixty days after issuance of the license.18
(2) Every person licensed pursuant to this Part prior to January 1, 2004, shall19
submit such evidence as the commission shall prescribe, documenting that either the20
person licensed or his general manager, office manager, title clerk, or other21
responsible representative of the person licensed has attended a four-hour22
educational seminar prior to August 15, 2004.23
§792. Denial, revocation, or suspension of license; grounds; unauthorized acts24
A. Except as otherwise provided in this Section, the commission may deny25
an application for a license as a used motor vehicle dealer, dealer in used parts or26
used accessories of motor vehicles, used motor vehicle auctioneer, or salesperson for27
any of the following reasons:28
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B. The commission may revoke or suspend a license, issue a fine or penalty,1
or enjoin a used motor vehicle dealer, dealer in used parts or used accessories of2
motor vehicles, used motor vehicle auctioneer, or salesperson for any of the3
following conduct:4
* * *5
§794. Wholesale motor vehicle auctions; unlawful acts6
A. It shall be unlawful and constitute a violation of this Chapter for any7
wholesale motor vehicle auction to:8
(1) Fail to comply with the licensing requirements of this Chapter.9
(2) Fail to comply with any provision of this Chapter, any provision relating10
to the proper disposition of license tags or registrations, transfers of title, or payment11
of sales taxes in connection with the purchase or sale of any new or used motor12
vehicle, or with any rule or regulation adopted and promulgated by the commission13
pursuant to the authority vested in it by this Chapter.14
(3) Permit any person other than a licensed dealer or a salesperson who holds15
a current authorization to bid for a licensed dealer, to bid, offer to bid, participate in16
the bid process, purchase, or offer to purchase a used motor vehicle placed up for bid17
at the auction.18
(4) Accept cash for a sale from anyone other than a licensed dealer or his19
agent.20
(5) Permit any person other than a mechanic or technical expert to21
accompany a licensed dealer to inspect used motor vehicles prior to the vehicle being22
placed up for bid at the auction.23
(6) Fail to disclose that a sale took place off the block or out of the auction24
ring by providing red-stamped verification on the auction bill of sale or invoice, with25
the lettering on the stamp to be no less than half-inch print size.26
(7) Fail to implement, within six months, following the effective date of this27
Section, an audio video recording system which will properly verify sales occurring28 HLS 10RS-1503 REENGROSSED
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in the lanes at the auction and fail to maintain those video recordings for at least1
thirty days following the sale.2
(8) Fail to use an industry-recognized damage classification system for all3
vehicles sold at auction.4
(9) Engage in fraudulent activity in the auction process.5
B. Any violation of this Section shall constitute grounds for suspension,6
revocation, or refusal to issue or renew any license or permit issued by the7
commission.8
C. Any licensee who violates any of the provisions of this Section may be9
subject to an injunction under R.S. 32:786 and fines and penalties provided in R.S.10
32:788.11
* * *12
§802. License required; application; fee; duration13
* * *14
D.(1) In addition to the items required to be submitted by applicants for15
licensure pursuant to Subsection C of this Section, such applicants who have not16
been licensed prior to January 1, 2004, shall also submit such evidence as the17
commission shall prescribe, documenting that either the applicant or his general18
manager, office manager, title clerk, or other responsible representative of the19
applicant has attended a four-hour educational seminar or has registered to attend20
such seminar within sixty days after issuance of the license.21
(2) Every person licensed pursuant to Subsection C of this Section prior to22
January 1, 2004, shall submit such evidence as the commission shall prescribe,23
documenting that either the person licensed or his general manager, office manager,24
title clerk, or other responsible representative of the person licensed has attended a25
four-hour educational seminar prior to August 15, 2004.26
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F. All bonds and licenses issued under the provisions of this Part shall expire1
on December thirty-first of each year the date indicated on the license and shall be2
nontransferable.3
G. All applications for renewal of licenses hereunder shall be submitted on4
or before sixty days prior to December thirty-first of each year the expiration date5
indicated on the license. If application has not been made for renewal of licenses,6
such licenses shall expire on December thirty-first of the following year the7
expiration date indicated on the license, and it shall be a violation of this Part for any8
person to represent himself and act thereafter in the capacity and business for which9
he was formerly licensed hereunder.10
* * *11
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Waddell HB No. 1189
Abstract: Authorizes the sale of a used motor vehicle "as is". Amends the procedure and
requirements for licensure by the La. Used Motor Vehicle Commission. Provides
for a rental dealer license. Provides for unlawful actions during a wholesale motor
vehicle auction.
Present law defines "used motor vehicle dealer" as any person who, for a commission or
with intent to make a profit or gain of money or other thing of value, buys, sells, brokers,
exchanges, rents with option to purchase, auctions, offers, or attempts to negotiate a sale or
exchange of an interest in used motor vehicles and who is engaged wholly or in part in the
business of buying and selling used motor vehicles, whether such motor vehicles are owned
by such person and whether the motor vehicles are sold from a dealership location or via any
form of advertising, including but not limited to the Internet.
Proposed law defines "used motor vehicle dealer" as any person, partnership, corporation,
limited liability company, or other entity who, for a commission or with intent to make a
profit or gain of money or other thing of value, buys, sells, brokers, exchanges, rents with
option to purchase, auctions, offers, or attempts to negotiate a sale or exchange of an interest
in used motor vehicles and who is engaged wholly or in part in the business of buying and
selling used motor vehicles, whether such motor vehicles are owned by such person and
whether the motor vehicles are sold from a dealership location or via any form of
advertising, including but not limited to the Internet.
Present law provides that a person shall be presumed to be engaged in the business of selling
used motor vehicles if he sells five or more used motor vehicles in any 12-month period .
Proposed law provides that a person shall be presumed to be engaged in the business of
selling used motor vehicles if he sells five or more used motor vehicles in any 12-month HLS 10RS-1503 REENGROSSED
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period which vehicles are not registered to and insured by members of the individual's
household, immediate family members, or legal entities which the individual has an
ownership interest in or is employed by. An entity shall be presumed to be engaged in the
business of selling used motor vehicles if the entity sells five or more used motor vehicles
which are not registered to and insured by the entity or by an entity affiliated with the entity
receiving anything of value.
Proposed law defines "public or retail motor vehicle auction" as the act of any person,
partnership, corporation, limited liability company, or other entity engaging in, for a
commission, compensation, or other consideration, the business of providing vehicle auction
services at an established place of business which is not open exclusively to motor vehicle
dealers, dismantlers, and parts recyclers.
Proposed law defines "wholesale motor vehicle auction" as the act of any person,
partnership, corporation, limited liability company, or other entity engaging in, for a
commission, compensation, or other consideration, the business of providing wholesale
vehicle auction services at an established place of business which is open exclusively to
licensed motor vehicle dealers, dismantlers, and parts recyclers.
Present law provides that the La. Used Motor Vehicle Commission's duties include requiring
all dealer sales to have a condition of sale, such as warranty disclaimer, implied or written
warranty, or a service contract approved by the commission.
Proposed law removes the requirement that the condition of sale be approved by the
commission.
Proposed law provides that, if a sale of a used motor vehicle is "as-is" and with a waiver of
all warranties, the bill of sale shall include a notice which clearly and unambiguously states
that the terms of the sale are "as-is" and with a waiver of all warranties, including any claim
for redhibition or reduction of or return of the purchase price.
Proposed law requires the customer to acknowledge the terms of the sale. Proposed law
further provides that an acknowledgment of the terms of the sale via acceptance of an
electronic notice at any time prior to or as part of the transaction shall constitute compliance
with proposed law.
Proposed law provides that, if a used motor vehicle dealer complies with the provisions of
proposed law, the purchaser shall not be entitled to a return of the purchase price, a reduction
in the purchase price or a repair of the vehicle without payment of the cost of the repair.
Present law provides that the commission's powers include holding and conducting hearings
on violations of present law, areas of responsibility disputes, mandatory repurchase disputes,
imposing civil penalties, cease and desist orders, and revocation or suspension of licenses.
Proposed law removes the commission's power to hold and conduct hearings on areas of
responsibility disputes.
Present law requires all fees and charges under the provisions of present law shall be
collected and received by the executive director of the commission and deposited by him in
a special fund with the state treasury to be known as the La. Used Motor Vehicle and Parts
Commission Fund.
Proposed law removes the requirement that the special fund be with the state treasury and
changes the name of the special fund to the La. Used Motor Vehicle Commission Fund.
Proposed law provides that no person, partnership, corporation, limited liability company,
or other entity licensed by the La. Used Motor Vehicle Commission shall display any used
motor vehicle at any place other than at a facility licensed by the commission, unless an off- HLS 10RS-1503 REENGROSSED
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premises permit authorizing the display of such used motor vehicle at the location has been
issued by the commission. The commission may issue one off-premises permit to a dealer
in any 90-day period authorizing the display of up to five vehicles at an event within 35
miles of the dealer's place of business for a period of up to three days.
Present law provides that it shall be unlawful and shall constitute a misdemeanor for any
person, firm, association, corporation, limited liability company, or trust to engage in
business as, or serve in the capacity of, or act as a used motor vehicle dealer or used motor
vehicle salesperson in this state without first obtaining a license.
Proposed law retains present law but changes used motor vehicle auctions to public or retail
motor vehicle auctions and adds whole sale motor vehicle auctions and rental dealer to the
list of licensees.
Present law provides that applications for licenses shall be verified by the oath or affirmation
of the applicant, shall be on forms prescribed by the commission and furnished to such
applicants, and shall contain such information as the commission deems necessary to enable
it to fully determine the qualifications and eligibility of the several applicants to receive the
license or licenses.
Proposed law provides that applications for licensure as a used motor vehicle dealer shall
be signed by the applicant, shall be on forms prescribed by the commission and furnished
to such applicants, and shall contain such information as the commission deems necessary
to enable it to fully determine the qualifications and eligibility of the several applicants to
receive the license or licenses.
Present law provides that all bonds and licenses for used motor vehicle dealers issued under
present law shall expire on Dec. 31 following the date of issue and shall be nontransferable.
Proposed law provides that all bonds shall be for the license period and shall be
nontransferable.
Present law provides that every person, firm, or corporation before being licensed as a used
motor vehicle dealer shall show proof of responsibility by depositing with the commission
a continuing bond in the amount of $20,000 with a surety authorized to do business in the
state, which bond shall be approved by the commission, payable to the state of La. through
the commission, and shall be conditioned upon faithful observance of all laws regulated by
the commission, including but not limited to laws relating to penalties and hearing costs and
to the proper disposition of licenses, tags, or titles, and shall also indemnify any person who
suffers any loss by reason of a failure to observe the provisions of the law relating to sales
tax, licenses, tags, or titles and shall also indemnify any person who suffers any loss,
damages, and expenses by reason of a failure to deliver title and for the proper disposition
of all taxes, licenses, and registration fees.
Proposed law provides that every applicant for licensure or renewal of a license as a used
motor vehicle dealer shall show proof of responsibility by depositing with the commission
a continuing bond in the amount required as follows:
(1)$20,000 if the applicant sold less than 120 vehicles during the 12-month period
preceding the licensure period.
(2)$35,000 if the applicant sold 120 or more vehicles during the 12-month period
preceding the licensure period.
(3)All bonds shall be with a commercial surety authorized to do business in the state,
which bond shall be approved by the commission, payable to the state of La. through
the commission, and shall be conditioned upon faithful observance of all laws
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and hearing costs and to the proper disposition of licenses, tags, or titles, and shall
also indemnify any person who suffers any loss by reason of a failure to observe the
provisions of the law relating to sales tax, licenses, tags, or titles and shall also
indemnify any person who suffers any loss, damages, and expenses by reason of a
failure to deliver title and for the proper disposition of all taxes, licenses, and
registration fees.
Present law requires that any new applicants for a license, other than a used motor vehicle
dealer's license, who have not been previously licensed prior to Jan. 1, 2004, to submit such
evidence as the commission shall prescribe, documenting that either the applicant or his
general manager, office manager, title clerk, or other responsible representative of the
applicant has attended a four-hour educational seminar or has registered to attend such
seminar within 60 days after issuance of the license.
Proposed law removes the required condition that applicants have not been previously
licensed prior to Jan. 1, 2004.
Present law requires that every person licensed prior to Jan. 1, 2004, to submit such evidence
as the commission shall prescribe, documenting that either the person licensed or his general
manager, office manager, title clerk, or other responsible representative of the person
licensed has attended a four-hour educational seminar prior to Aug. 15, 2004.
Proposed law repeals present law.
Present law authorizes the commission to deny an application for a license as a used motor
vehicle dealer or salesperson for any of the following reasons:
(1)On satisfactory proof of unfitness of the applicant under the standards established
present law or in rules or regulations adopted and promulgated by the commission.
(2)Being convicted of a felony crime.
(3)Any material false statement made by the applicant on any application for licensure.
(4)Where the applicant has, under a previous license, committed a violation of any law
or rule or regulation adopted and promulgated by the commission.
Proposed law adds dealer in used parts or used accessories of motor vehicles, used motor
vehicle auctioneer, or salesperson to the licenses that may be denied by the commission for
any of the enumerated reasons.
Present law authorizes the commission to revoke or suspend a license, issue a fine or
penalty, or enjoin a used motor vehicle dealer or salesperson for any of the following
conduct:
(1)A change of condition after the license has been granted resulting in failure to
maintain the qualifications for licensure, including but not limited to:
(a)Failure to keep an established place of business.
(b)Failure to furnish or keep in force garage liability insurance on any vehicle,
except for trailers, offered for sale and otherwise required under the financial
responsibility laws of this state.
(c)Failure to furnish or keep in force any bond required under present law.
(d)Use of false, misleading, or unsubstantiated advertising in connection with
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(2)Committing a fraudulent act in selling, purchasing, or dealing in used motor vehicles
or misrepresenting the terms and conditions of a sale, purchase, or contract for sale
or purchase of a used motor vehicle or any interest including an option to purchase.
(3)Engaging in his business in such a manner as to cause injury to the public or those
with whom he is dealing.
(4)Knowingly engaging in tampering with, adjusting, altering, changing, setting back,
disconnecting, or failing to connect the odometer of any motor vehicle, or causing
any of the foregoing to occur to an odometer of a used motor vehicle, so as to reflect
a lower mileage than the true mileage driven by the used motor vehicle.
(5)Employing unlicensed salespersons or other unlicensed persons in connection with
the sale of used motor vehicles.
(6)Not operating from the address shown on his license if this change has not been
reported to the commission in either an application for an additional location, or not
restricting the location of the display of motor vehicles exclusively to the address
shown on his license, except pursuant to a permit for an approved off-site display.
(7)Parking vehicles on any public roadway or right-of-way for the purpose of displaying
vehicles for sale.
(8)Engaging in a practice of failing to deliver certificates of title to a consumer within
the time limitations prescribed in present law.
(9)Engaging in a practice of failing to submit monthly sales reports to Motor Vehicle
Audit by the 20th day of the following month.
(10)Engaging in a practice of failing to remit sales tax where the tax has been collected
by the dealer.
(11)Engaging in a practice of leaving the certificate of title open or unassigned to the
dealer.
(12)Engaging in a practice of issuing temporary license plates or temporary dealer's
plates in violation of the law.
(13)Failing to maintain records for a period of up to three years.
(14)Repossessing a vehicle in any manner other than what is allowed by law.
(15)Requiring consumers to sign and execute a voluntary surrender or other similar
document at the time of the sale of a used motor vehicle.
Proposed law adds dealer in used parts or used accessories of motor vehicles, used motor
vehicle auctioneer, or salesperson to the licenses that may be revoked or suspended, issued
a fine or penalty, or enjoined by the commission for any of the enumerated reasons.
Proposed law provides that it shall be unlawful and constitute a violation for any wholesale
motor vehicle auction to:
(1)Fail to comply with the licensing requirements.
(2)Fail to comply with any provision relating to the proper disposition of license tags
or registrations, transfers of title, or payment of sales taxes connection with the
purchase or sale of any new or used motor vehicle, or with any rule or regulation
adopted and promulgated by the commission. HLS 10RS-1503 REENGROSSED
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(3)Permit any person other than a licensed dealer or a salesperson who holds a current
authorization to bid for a licensed dealer, to bid, offer to bid, participate in the bid
process, purchase or offer to purchase a used motor vehicle placed up for bid at the
auction.
(4)Accept cash for a sale from anyone other than a licensed dealer or his agent.
(5)Permit any person other than a mechanic or technical expert to accompany a licensed
dealer to inspect used motor vehicles prior to the vehicle being placed up for bid at
the auction.
(6)Fail to disclose that a sale took place off the block or out of the auction ring by
providing red-stamped verification on the auction bill of sale or invoice, with the
lettering on the stamp to be no less than half-inch print size.
(7)Fail to implement, within six months, following the effective date of proposed law,
an audio video recording system which will properly verify sales occurring in the
lanes at the auction and fail to maintain those video recordings for at least 30 days
following the sale.
(8)Fail to use an industry-recognized damage classification system for all vehicles sold
at auction.
(9)Engage in fraudulent activity in the auction process.
Proposed law provides that any violation of proposed law shall constitute grounds for
suspension, revocation, or refusal to issue or renew any license or permit issued by the
commission.
Proposed law provides that any licensee who violates any of the provisions proposed law
may be subject to an injunction and civil penalties.
Present law provides that applicants who have not been licensed as an automotive dismantler
and parts recycler, automotive dismantler and parts recycler salesperson, or motor vehicle
crusher prior to Jan. 1, 2004, shall also submit such evidence as the commission shall
prescribe, documenting that either the applicant or his general manager, office manager, title
clerk, or other responsible representative of the applicant has attended a four-hour
educational seminar or has registered to attend such seminar within 60 days after issuance
of the license.
Proposed law removes the required condition that applicants have not been previously
licensed prior to Jan. 1, 2004.
Present law requires every person licensed as an automotive dismantler and parts recycler,
automotive dismantler and parts recycler salesperson, or motor vehicle crusher prior to Jan.
1, 2004, shall submit such evidence as the commission shall prescribe, documenting that
either the person licensed or his general manager, office manager, title clerk, or other
responsible representative of the person licensed has attended a four-hour educational
seminar prior to Aug. 15, 2004.
Proposed law repeals present law.
Present law provides that all bonds and licenses issued under the provisions of present law
shall expire on Dec. 31 of each year and shall be nontransferable.
Proposed law provides that all licenses issued under the provisions of proposed law shall
expire on the date indicated on the license and shall be nontransferable. HLS 10RS-1503 REENGROSSED
HB NO. 1189
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Present law provides that all applications for renewal of licenses for dismantlers and parts
recyclers shall be submitted on or before 60 days prior to Dec. 31 of each year . If
application has not been made for renewal of licenses, such licenses shall expire on Dec. 31
of the following year and it shall be a violation of present law for any person to represent
himself and act thereafter in the capacity and business for which he was formerly licensed.
Proposed law provides that all applications for renewal of licenses shall be submitted on or
before 60 days prior to the expiration date indicated on the license. If application has not
been made for renewal of licenses, such licenses shall expire on the expiration date indicated
on the license, and it shall be a violation of proposed law for any person to represent himself
and act thereafter in the capacity and business for which he was formerly licensed.
(Amends R.S. 32:781(13)(a)(i), 783(F)(3) and (6) and (G), 791(A)(1), (B)(1) and (4)(a),
(G)(1), and (J), 792(A)(intro. para.) and (B)(intro. para.), and 802(D), (F), and (G); Adds
R.S. 32:781(17) and (18), 784(A)(5) and (D), and 794)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Commerce to the original
bill.
1. Changed "used motor vehicle auction" to "wholesale motor vehicle auction".
2. Added a definition for "public or retail motor vehicle auction".
3. Added a definition for "wholesale motor vehicle auction".
4. Changed the requirement that the salesperson explain the terms of the sale and
obtain the customer's written acknowledgment to a requirement that the customer
acknowledge the terms of the sale.
5. Added a provision allowing acknowledgment of the terms of the sale via
acceptance of an electronic notice at any time prior to or as part of the
transaction.
6. Added rental dealer as a category of licensure.
7. Added a provision to allow the La. Used Motor Vehicle Commission to issue off-
premises permits for up to five vehicles at an event within 35 miles of the
dealer's place of business for a period of up to three days.
8. Added a provision to change the expiration date of licenses for dismantlers and
parts recyclers from Dec. 31 to the expiration date indicated on the license.
House Floor Amendments to the engrossed bill.
1. Made technical corrections.
2. Clarified that "public or retail motor vehicle auction" is the act of engaging in the
business of providing vehicle auction services.
3. Clarified that "wholesale motor vehicle auction" is the act of engaging in the
business of providing vehicle auction services.
4. Clarified that dealers, dismantlers, and auctions are to be licensed.
5. Added a provision that no person shall engage in public or retail motor vehicle
auctions, wholesale motor vehicle auctions, or salvage pools that deal in used HLS 10RS-1503 REENGROSSED
HB NO. 1189
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
motor vehicles without a license issued by the La. Used Motor Vehicle
Commission.
6. Limited the number of off-premises permits that may be authorized by the La.
Used Motor Vehicle Commission to one permit per dealer in any 90-day period.