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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 dealers who do not possess a valid dealer4
license issued by the Louisiana Motor Vehicle Commission; to require proof of5
certain dealers licenses; 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 dealers9
A. A public entity shall not accept any bid from or enter into any contract or10
cooperative endeavor agreement, or any other transaction for the procurement of11
vehicles, with a dealer who does not possess a valid dealer's license issued under the12
provisions of R.S. 32:1254.13
B. A public entity shall require that any bid submitted by, or a contract or14
cooperative endeavor agreement with, a dealer for the purchase of vehicles shall15
include a copy of a valid dealer's license issued under the provisions of R.S. 32:1254.16
C. A public entity shall reject any bid submitted by a dealer for the purchase17
of vehicles which does not include a copy of a valid dealer license.18 HLS 10RS-1096 REENGROSSED
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D. A public entity shall not sign a contract or cooperative endeavor1
agreement with a dealer for the purchase of vehicles which does not include a copy2
of a valid dealer license.3
E. If in the course of an audit or review by the legislative auditor, pursuant4
to the powers and duties in R.S. 24:513, a violation of this Section is found, the5
legislative auditor shall report such findings to the Louisiana Motor Vehicle6
Commission.7
Section 2. Chapter 24 of Title 39 of the Louisiana Revised Statutes of 1950,8
comprised of R.S. 39:2181 and 2182, is hereby enacted to read as follows:9
CHAPTER 24. PROHIBITIONS IN PUBLIC GOVERNMENTAL10
CONTRACTS AND PROCUREMENT11
§2181. Applicability; definitions12
A. This Chapter shall apply to any contract or cooperative endeavor13
agreement that results from any bid or other award governed under Chapter 16 and14
Chapter 17 of this Title.15
B. For the purpose of this Chapter, "public entity" shall mean any agency,16
board, commission, department, or public corporation of the state, created by the17
constitution or statute or pursuant thereto, or any political subdivision of the state,18
including but not limited to any political subdivision as defined by Article VI,19
Section 44 of the Constitution of Louisiana, and any public housing authority, public20
school board, or any public officer whether or not an officer of a public corporation21
or political subdivision.22
§2182. Prohibition of bids from or contracts with unlicensed dealers23
A. A public entity shall not accept any bid from or enter into any contract or24
cooperative endeavor agreement, or any other transaction for the procurement of25
vehicles, with a dealer who does not possess a valid dealer's license issued under the26
provisions of R.S. 32:1254.27 HLS 10RS-1096 REENGROSSED
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B. A public entity shall require that any bid submitted by, or a contract or1
cooperative endeavor agreement with, a dealer for the purchase of vehicles shall2
include a copy of a valid dealer's license issued under the provisions of R.S. 32:1254.3
C. A public entity shall reject any bid submitted by a dealer for the purchase4
of vehicles which does not include a copy of a valid dealer's license.5
D. A public entity shall not sign a contract or cooperative endeavor6
agreement with a dealer for the purchase of vehicles which does not include a copy7
of a valid dealer's license.8
E. If in the course of an audit or review by the legislative auditor, pursuant9
to the powers and duties in R.S. 24:513, a violation of this Section is found, the10
legislative auditor shall report such findings to the Louisiana Motor Vehicle11
Commission.12
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 dealers from submitting a bid or contracting with public
entities.
Proposed law requires any bid submitted by, or a contract or cooperative endeavor
agreement with, a dealer include a copy of a valid state dealer's license issued by the La.
Motor Vehicle Commission. A public entity shall not contract with the 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 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) HLS 10RS-1096 REENGROSSED
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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.
House Floor Amendments to the engrossed bill.
1. Deleted references to "motor vehicle" to refer more broadly to dealers.
2. Removed any penalty for dealers.