HLS 10RS-1096 ENGROSSED Page 1 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2010 HOUSE BILL NO. 472 BY REPRESENTATIVE MONTOUCET PUBLIC CONTRACT/BID S: Prohibits public entities from contracting with unlicensed motor vehicle dealers AN ACT1 To enact R.S. 38:2212.8 and Chapter 24 of Title 39 of the Louisiana Revised Statutes of2 1950, to be comprised of R.S. 39:2181 and 2182, relative to procurement; to prohibit3 public entities from contracting with motor vehicle dealers who do not possess a4 valid Louisiana motor vehicle dealer license; to require proof of certain motor5 vehicle dealers licenses; to provide for penalties; and to provide for related matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 38:2212.8 is hereby enacted to read as follows: 8 §2212.8. Prohibition of bids from or contracts with unlicensed motor vehicle9 dealers; penalties10 A public entity shall not accept any bid from or enter into any contract or11 cooperative endeavor agreement, or any other transaction for the procurement of12 motor vehicles, with a motor vehicle dealer who does not possess a valid motor13 vehicle dealer's license issued under the provisions of R.S. 32:1254.14 (1) A public entity shall require that any bid submitted by, or a contract or15 cooperative endeavor agreement with, a motor vehicle dealer for the purchase of16 motor vehicles shall include a copy of a valid motor vehicle dealer's license issued17 under the provisions of R.S. 32:1254.18 HLS 10RS-1096 ENGROSSED HB NO. 472 Page 2 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) A public entity shall reject any bid submitted by a motor vehicle dealer1 for the purchase of motor vehicles which does not include a copy of a valid motor2 vehicle dealer license.3 (3) A public entity shall not sign a contract or cooperative endeavor4 agreement with a motor vehicle dealer for the purchase of motor vehicles which does5 not include a copy of a valid motor vehicle dealer license.6 (4) If in the course of an audit or review by the legislative auditor, pursuant7 to the powers and duties in R.S. 24:513, a violation of this Section is found, the8 legislative auditor shall report such findings to the Louisiana Motor Vehicle9 Commission.10 (5) If the Louisiana Motor Vehicle Commission determines that any motor11 vehicle dealer has violated any provision of this Section, it shall impose a fine on the12 motor vehicle dealer in an amount not to exceed one thousand dollars for each13 violation. 14 Section 2. Chapter 24 of Title 39 of the Louisiana Revised Statutes of 1950,15 comprised of R.S. 39:2181 and 2182, is hereby enacted to read as follows:16 CHAPTER 24. PROHIBITIONS IN PUBLIC GOVERNMENTAL17 CONTRACTS AND PROCUREMENT18 §2181. Applicability; definitions19 A. This Chapter shall apply to any contract or cooperative endeavor20 agreement that results from any bid or other award governed under Chapter 16 and21 Chapter 17 of this Title.22 B. For the purpose of this Chapter, "public entity" shall mean any agency,23 board, commission, department, or public corporation of the state, created by the24 constitution or statute or pursuant thereto, or any political subdivision of the state,25 including but not limited to any political subdivision as defined by Article VI,26 Section 44 of the Constitution of Louisiana, and any public housing authority, public27 school board, or any public officer whether or not an officer of a public corporation28 or political subdivision.29 HLS 10RS-1096 ENGROSSED HB NO. 472 Page 3 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §2182. Prohibition of bids from or contracts with unlicensed motor vehicle dealers;1 penalties2 A public entity shall not accept any bid from or enter into any contract or3 cooperative endeavor agreement, or any other transaction for the procurement of4 motor vehicles, with a motor vehicle dealer who does not possess a valid motor5 vehicle dealer's license issued under the provisions of R.S. 32:1254.6 (1) A public entity shall require that any bid submitted by, or a contract or7 cooperative endeavor agreement with, a motor vehicle dealer for the purchase of8 motor vehicles shall include a copy of a valid motor vehicle dealer's license issued9 under the provisions of R.S. 32:1254.10 (2) A public entity shall reject any bid submitted by a motor vehicle dealer11 for the purchase of motor vehicles which does not include a copy of a valid motor12 vehicle dealer's license.13 (3) A public entity shall not sign a contract or cooperative endeavor14 agreement with a motor vehicle dealer for the purchase of motor vehicles which does15 not include a copy of a valid motor vehicle dealer's license.16 (4) If in the course of an audit or review by the legislative auditor, pursuant17 to the powers and duties in R.S. 24:513, a violation of this Section is found, the18 legislative auditor shall report such findings to the Louisiana Motor Vehicle19 Commission.20 (5) If the Louisiana Motor Vehicle Commission determines that any motor21 vehicle dealer has violated any provision of this Section, it shall impose a fine on the22 motor vehicle dealer in an amount not to exceed one thousand dollars for each23 violation.24 HLS 10RS-1096 ENGROSSED HB NO. 472 Page 4 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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)] Montoucet HB No. 472 Abstract: Prohibits unlicensed motor vehicle dealers from submitting a bid or contracting with pubic entities and provides for a $1,000 fine on the motor vehicle dealer if the provisions of the law are violated. Proposed law requires any bid submitted by, or a contract or cooperative endeavor agreement with, a motor vehicle dealer include a copy of a valid state motor vehicle dealer's license. A public entity shall not contract with the motor vehicle dealer that does not possess a valid state license. Proposed law provides that if, in the course of an audit or review by the legislative auditor, a violation of proposed law is found, the legislative auditor shall report such findings to the La. Motor Vehicle Commission. Proposed law requires the La. Motor Vehicle Commission to impose a fine on the motor vehicle dealer, not to exceed $1,000 per violation. Proposed law defines "public entity" as any agency, board, commission, department, or public corporation of the state, created by the constitution or statute or pursuant thereto, or any political subdivision of the state, including port commissions and districts, and any public housing authority, public school board, or any public officer. (Adds R.S. 38:2212.8 and R.S. 39:2181-2182) Summary of Amendments Adopted by House Committee Amendments Proposed by House Committee on Appropriations to the original bill. 1. Changed the entity which will be responsible for imposing fines from the Dept. of Public Safety and Corrections, office of motor vehicles, to the La. Motor Vehicle Commission. 2. Removed any penalty for the public entity.