HLS 12RS-1523 ORIGINAL
Page 1 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 1002
BY REPRESENTATIVE JONES
MOTOR VEHICLES: Abolishes the La. Used Motor Vehicles Commission and transfers
all its powers, duties, and regulatory provisions to the La. Dept. of Public Safety and
Corrections, office of motor vehicles
AN ACT1
To amend and reenact R.S. 23:921(I)(2)(b), the heading of Chapter 4-C of Title 32 of the2
Louisiana Revised Statutes of 1950, R.S. 32:781(2) and (8), 782, 783,3
784(A)(introductory paragraph), (B), (C), and (D), 785(A), (B)(1)(introductory4
paragraph) and (b) and (2), (C), and (E), 786(A), (B), (C), and (D)(1), (2), and (3),5
788(A), (B)(1), (C), and (D), 790(C), 791(B)(1), (2)(introductory paragraph), (3)(b),6
(4)(b), (d), (e), and (f), and (5), (C), (D)(introductory paragraph), (E),7
(G)(1)(introductory paragraph) and (c), (2), and (3) and (J), 792(A)(introductory8
paragraph), (1), and (4), (B)(introductory paragraph) and (6), (C)(introductory9
paragraph), (D), and (E), 794(A)(2) and (B), and 1252(31)(c), and R.S.10
47:305.36(C)(2), 520(A) and (C)(3), and 522(C) and to repeal R.S. 36:4.1(D)(1),11
relative to the Louisiana Used Motor Vehicles Commission; to transfer its powers12
and duties to the Louisiana Department of Public Safety and Corrections, office of13
motor vehicles; and to provide for related matters.14
Be it enacted by the Legislature of Louisiana:15
Section 1. R.S. 23:921(I)(2)(b) is hereby amended and reenacted to read as follows:16
§921. Restraint of business prohibited; restraint on forum prohibited; competing17
business; contracts against engaging in; provisions for18
* * *19 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 2 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
I.1
* * *2
(2)3
* * *4
(b) For the purposes of this Subsection, "salesman" means any person with5
a salesman's license issued by the Louisiana Motor Vehicle Commission or the Used6
Motor Vehicle and Parts Commission Louisiana Department of Public Safety and7
Corrections, office of motor vehicles, other than a person who owns a proprietary or8
equity interest in a new or used car dealership in Louisiana.9
* * *10
Section 2. The heading of Chapter 4-C of Title 32 of the Louisiana Revised Statutes11
of 1950, R.S. 32:781(2) and (8), 782, 783, 784(A)(introductory paragraph), (B), (C), and (D),12
785(A), (B)(1)(introductory paragraph) and (b) and (2), (C), and (E), 786(A), (B), (C), and13
(D)(1), (2), and (3), 788(A), (B)(1), (C), and (D), 790(C), 791(B)(1), (2)(introductory14
paragraph), (3)(b), (4)(b), (d), (e), and (f), and (5), (C), (D)(introductory paragraph), (E),15
(G)(1)(introductory paragraph) and (c), (2), and (3) and (J), 792(A)(introductory paragraph),16
(1), and (4), (B)(introductory paragraph) and (6), (C)(introductory paragraph), (D), and (E),17
794(A)(2) and (B), and 1252(31)(c) are hereby amended and reenacted to read as follows:18
CHAPTER 4-C. LOUISIANA19
USED MOTOR VEHICLE COMMISSION ACT20
PART I. DEFINITIONS AND GENERAL PROVISIONS21
§781. Definitions22
As used in this Chapter:23
* * *24
(2) "Commission" means the Louisiana Used Motor Vehicle Commission25
or its designee. "Office" means the Louisiana Department of Public Safety and26
Corrections, office of motor vehicles.27
* * *28 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 3 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(8) "Salvage pool or salvage disposal sale" means a scheduled sale at auction1
or by private bid of wrecked or repairable motor vehicles by insurance companies,2
or by used motor vehicle dealers, or automotive dismantlers and parts recyclers3
licensed by the commission office.4
* * *5
§782. Jurisdiction and authority of commission office6
The provisions of this Chapter shall not apply to any person, partnership,7
corporation, limited liability company, or other entity that is licensed or regulated by8
the Louisiana Motor Vehicle Commission office of motor vehicles. If any provision9
of this Chapter conflicts with any provision of Chapter 6 of this Title, the provisions10
of Chapter 6 of this Title shall prevail.11
§783. Used Motor Vehicle Commission; appointment and qualification; terms of12
office; powers and duties Powers and duties of the office13
A. There is hereby created the Louisiana Used Motor Vehicle Commission14
within the office of the governor to be composed of ten members all appointed by15
the governor with the confirmation of the Senate. Five members shall be licensed16
used motor vehicle dealers, one selected from each public service commission17
district. One member shall be a licensed automotive dismantler or parts recycler,18
three members shall be consumers selected from the state at large, and one member19
shall be a person licensed to conduct used motor vehicle auctions or salvage pool20
auctions. The chairman shall be designated by the governor.21
B.(1) The terms of the chairman and commissioners shall be coterminous22
with that of the governor making the appointment and until his successor is23
appointed and is qualified. The term of office of any member shall automatically24
expire if the member moves out of the public service commission district from which25
he was appointed. In the event of death, resignation, removal, or automatic26
expiration of term of any person serving on the commission, the vacancy shall be27
filled for the unexpired portion of the term in the manner of original appointment.28 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 4 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2) The commission shall meet at Baton Rouge and complete its organization1
immediately after the entire membership has been appointed and qualified.2
(3) The chairman and each member of the commission shall take and3
subscribe to the oath of office required of public officers.4
C.(1) The chairman and members of the commission shall receive seventy-5
five dollars for each and every day actually and necessarily spent in attending the6
meetings of the commission, including any commission committee meetings, and7
shall be reimbursed for subsistence and traveling expenses incurred in the8
performance of their duties hereunder as provided by the commissioner of the9
division of administration.10
(2) Such meeting payments shall not exceed the sum of eighteen hundred11
dollars per annum to any one person.12
D.(1) The commission shall appoint a qualified person to serve as executive13
director who shall have had sufficient management and organizational experience in14
the automotive industry to direct the functions of the commission. The commission15
shall fix his salary and shall define and prescribe his duties.16
(2) The executive director shall be in charge of the commission's office and17
shall devote such time as necessary to fulfill the duties thereof, and before entering18
upon his duties he shall take and subscribe to the oath of office.19
(3) The commission may employ such clerical, technical, legal, and other20
help and incur such expenses as may be necessary for the proper discharge of its21
duties under this Chapter.22
(4) The commission shall maintain its office and transact its business in23
Baton Rouge and is authorized to adopt and use a seal.24
E.(1) The commission A.(1) The office is hereby vested with the powers and25
duties necessary and proper to enable it to fully and effectively carry out and enforce26
the provisions and objectives of this Chapter and is hereby authorized and27
empowered to make and enforce all reasonable rules and regulations and to adopt28
and prescribe all forms necessary to accomplish said purpose. The enumeration of29 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 5 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
any power or authority herein shall not be construed to deny, impair, disparage, or1
limit any others necessary to the attainment thereof. All rules and regulations shall2
be adopted in accordance with the provisions of the Administrative Procedure Act.3
Oversight review shall be conducted by the House Committee on Commerce and the4
Senate Committee on Transportation, Highways and Public Works.5
(2) The commission office shall have the full power and authority to6
purchase, acquire, develop, expand, sell, lease, maintain, mortgage, borrow funds,7
or otherwise contract with respect to immovable property and improvements thereon8
as it may deem necessary or appropriate to accomplish the provisions of this Chapter.9
Additionally, the commission office shall have the authority to borrow funds with10
the approval of the State Bond Commission and to expend funds of the commission11
office for the acquisition of immovable property and improvements thereon. In the12
event that the commission office sells immovable property and improvements13
thereon, the revenue derived from the sale shall be retained by the commission office14
and shall not be subject to reversion to the state general fund.15
F. The commission's B. The office's powers and duties shall include but are16
not limited to the following:17
(1) Licensing used motor vehicle dealers and salespersons, motor vehicle18
crushers, dealers of used parts and accessories, and dismantlers and parts recyclers.19
(2) Inspecting used motor vehicle dealers, motor vehicle crushers, dealers20
of used parts and accessories locations, and dismantlers and parts recyclers locations21
to ensure that they are in an approved location, meet local zoning or other municipal22
requirements, and have sufficient facilities which shall include but not be limited to23
a business sign, a listed and usable telephone number, and a sales office.24
(3) Requiring all dealer sales to have a condition of sale, such as warranty25
disclaimer, implied or written warranty, or a service contract. If a sale of a used26
motor vehicle is "as-is" and with a waiver of all warranties, the bill of sale shall27
include a notice which clearly and unambiguously states that the terms of the sale are28
"as-is" and with a waiver of all warranties, including any claim for redhibition or29 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 6 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
reduction of or return of the purchase price. The customer shall acknowledge the1
terms of the sale. An acknowledgment of the terms of the sale via acceptance of an2
electronic notice at any time prior to or as part of the transaction shall constitute3
compliance with this Section. If a used motor vehicle dealer complies with the4
provisions of the Section, the purchaser shall not be entitled to a return of the5
purchase price, a reduction in the purchase price, or a repair of the vehicle without6
payment of the cost of the repair.7
(4) Working with consumers and dealers to hear complaints on used vehicles8
and parts and to establish a Used Car Consumer Action Panel to hear complaints on9
a condition of sale, implied and written warranties, and service complaints.10
(5) Requiring all dismantlers, motor vehicle crushers, dealers of used parts11
and accessories, recyclers, and dealers to maintain their records for a period of three12
years and to keep their records, vehicles, and places of business open to inspection13
by any peace officer or agent of the Department of Public Safety and Corrections or14
of the commission during reasonable hours. Such records shall include bills of sale,15
financing or mortgage records, and monthly sales reports.16
(6) Holding and conducting hearings on violations of this Chapter,17
mandatory repurchase disputes, imposing civil penalties, cease and desist orders, and18
revocation or suspension of licenses.19
(8) Serving in the capacity of a receivership to take possession of certificates20
of title from a used motor vehicle dealer who has failed or refused to provide a21
certificate of title to his customer and to further distribute those titles to the rightful22
owners pursuant to R.S. 32:705.23
(9) Issuing, serving, and enforcing a subpoena or subpoena duces tecum24
pursuant to any hearing or lawful investigation into the suspected misconduct of any25
licensee.26
G. C. All fees and charges under the provisions of this Chapter shall be27
collected and received by the executive director of the commission commissioner of28
the office of motor vehicles and deposited by him in a special fund to be known as29 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 7 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
the Louisiana Used Motor Vehicle Commission Fund. The proceeds of the fund1
shall be disbursed by him at the direction of the commission in administering and2
enforcing the provisions of this Chapter.3
H. D. All expenses incurred by the commission office in carrying out the4
provisions of this Chapter including but not limited to per diem, wages, salaries, rent,5
postage, supplies, bond premiums, travel, and subsistence for the commissioners and6
the executive director office, printing, and utilities shall be a proper charge against7
the fund.8
I. The commission shall, in addition to the powers herein conferred, be9
constituted a body politic or political corporation, invested with the powers inherent10
in corporations. It may sue and be sued under the style of the Louisiana Used Motor11
Vehicle Commission, and all process against the corporation shall be served on the12
chairman or executive director, and all suits on behalf of the commission shall be13
brought by the chairman or his designee. The domicile for the purpose of being sued14
shall be in East Baton Rouge Parish. Service of process shall be made upon the15
chairman or upon the executive director of the commission in person. No member16
of the board shall be held liable as an individual in any suit against the board.17
§784. Dealers, dismantlers, and auctions to be licensed; exception18
A. No person, firm, or corporation, unless licensed to do so by the19
commission office under the provisions of this Chapter, shall carry on or conduct the20
business of:21
* * *22
B. Any motor vehicle dealer, not licensed under the provisions of Chapter23
6 of this Title, who rents on a daily basis motor vehicles not of the current year or24
immediate prior year models, that have been titled previously to an ultimate25
purchaser, shall be subject to the regulation of the Louisiana Used Motor Vehicle26
Commission office.27
C. No person, partnership, corporation, limited liability company, or other28
entity, unless licensed by the commission office as a used car dealer, shall engage29 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 8 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
in the business as a "broker", "purchasing company", "sales agent", or similar title1
for the procurement of prospective purchasers for used motor vehicles.2
D. No person, partnership, corporation, limited liability company, or other3
entity licensed by the Louisiana Used Motor Vehicle Commission office shall4
display any used motor vehicle at any place other than at a facility licensed by the5
commission office, unless an off-premises permit authorizing the display of such6
used motor vehicle at the location has been issued by the commission. The7
commission office. The office may issue one off-premises permit to a dealer in any8
ninety-day period in accordance with rules and regulations authorizing the display9
of up to five vehicles at an event within thirty-five miles of the dealer's place of10
business for a period of up to three days.11
* * *12
§785. Procedures for denial, suspension, or revocation of license; notice; hearings;13
appeals; abandonment of business14
A.(1) The commission office, without prior notice, may deny any application15
for a license within sixty days after receipt thereof by written notice to the applicant16
stating the grounds for such denial. Upon request by the applicant whose application17
has been so denied, the commission office shall set the time and place of a hearing18
to review such denial, the same to be heard with reasonable promptness. The19
commission office may suspend or revoke a license only after a hearing of which the20
licensee affected shall be given at least fifteen days written notice specifying the21
grounds or reasons for revocation or suspension.22
(2) Notices may be served as provided by law for the service of notices or23
by mailing a copy by certified mail to the last known residence or business address24
of such applicant or licensee. A copy of such notice shall be mailed by certified mail25
to the surety on the licensee's bond at the address of the surety given in the bond.26
The hearing on charges shall be at such time and place as the commission office may27
prescribe, and the aforementioned notice shall further specify the time and place. If28
the applicant or licensee is a used motor vehicle salesperson, the commission office29 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 9 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
shall in like manner also notify the person, firm, association, corporation, limited1
liability company, or trust with whom the licensee is associated or in whose2
association he is about to enter.3
(3)(a) The commission office shall have the power to compel the production4
of records and papers bearing upon the issues to be presented for hearing.5
(b) The commission office shall have the power to subpoena and bring6
before it any person in this state, or take testimony of any such person by deposition,7
with the same fees and mileage and in the same manner as prescribed by law in8
judicial procedure before courts of the state in civil cases.9
(c) Any party to the hearing shall have the right to the attendance of10
witnesses on his behalf upon designating to the commission office the person or11
persons sought to be subpoenaed.12
(4) If the commission office determines that any applicant is not qualified13
to receive a license, a license shall not be granted to the applicant, and if the14
commission office determines that any licensee is guilty of violation of any of the15
provisions of this Chapter, his or its license shall be suspended or revoked.16
(5) Upon the determination by the commission office that either the applicant17
is not qualified to receive a license or that a licensee is guilty of violating any of the18
provisions of this Chapter, then all costs of the hearing procedure shall be charged19
to and borne by the applicant or licensee so affected. These costs shall include but20
not be limited to attorney fees and court reporter fees, and mileage and per diem of21
commissioners, as well as other applicable and reasonable costs.22
B.(1) The decision of the commission office imposing a civil penalty,23
granting or refusing to grant an application for a license, or suspending or revoking24
a license shall not become final for a period of thirty days from the date thereof,25
during which time said applicant or licensee may appeal from the decision of the26
commission office to the Nineteenth Judicial District Court by:27
* * *28 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 10 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(b) Mailing by certified mail a copy of the petition to the executive director1
of the commission commissioner of the office of motor vehicles or causing service2
of summons directed to the executive director of the commission commissioner of3
the office of motor vehicles to be issued, the petition to be mailed, or the summons4
to be issued within thirty days from the date of the decision of the commission office5
from which appeal is taken.6
(2) On appeal, the issue shall be heard in accordance with the Administrative7
Procedure Act. Nothing herein shall be construed to limit the authority of the court8
to grant relief as prescribed by R.S. 49:964. If the issues involved were first9
presented to the commission office by a complaint filed with the commission office,10
the complainant may appeal from the decision of the commission office in the same11
manner as herein above prescribed.12
C.(1) In holding and conducting hearings on complaints of violations of the13
provisions of this Chapter or hearings on the imposition of a civil penalty for any14
such violation, the commission office shall give the licensee or other person, firm,15
association, corporation, limited liability company, or trust alleged to have16
committed such violation at least fifteen days written notice specifying the violation17
charged.18
(2) Notices may be served as provided by law for the service of notices or19
by mailing a copy by certified mail to the last known residence or business address20
of the party charged with such violation. Hearings shall be at such time and place21
as the commission office may prescribe and the aforementioned notice shall specify22
the time and place thereof.23
(3)(a) The commission office shall have the power to compel the production24
of records and papers bearing upon the issues to be presented for hearing or any25
matter under investigation.26
(b) The commission office shall have the power to subpoena and bring27
before it any person in this state, or take testimony of any such person by deposition,28 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 11 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
with the same fees and mileage and in the same manner as prescribed by law in1
judicial procedure before courts of the state in civil cases.2
(c) Any party to the hearing shall have the right to the attendance of3
witnesses in his behalf upon designating to the commission office the person or4
persons sought to be subpoenaed.5
(4) Upon the determination by the commission office that the party charged6
is guilty of violating any of the provisions of this Chapter, then all costs of the7
hearing procedure shall be charged to and borne by the parties so affected. The costs8
shall include but not be limited to attorney fees and court reporter fees, and mileage9
and per diem of commissioners, as well as other applicable and reasonable costs.10
* * *11
E. When a licensee is found in violation of any provision of this Chapter,12
relative to the Louisiana Used Motor Vehicle Commission office, the licensee shall13
attend a four-hour educational seminar. The licensee who is found in violation of14
any provision of this Chapter shall complete the four-hour educational seminar15
within three months of the date the hearing decision becomes final.16
§786. Injunctions; cease and desist orders17
A. The commission office is hereby authorized without cost, bond, or deposit18
to institute injunctive actions in courts of competent jurisdiction in the name of the19
state on the relation of the commission office to enforce the provisions of this20
Chapter.21
B. Any licensee or other person who violates or threatens to violate any22
provision of this Chapter or rule or regulation promulgated thereunder may be23
enjoined from committing or continuing the violation or engaging in any business24
for which a license has been issued under this Chapter. In addition to any other25
proper venue, the parish of East Baton Rouge shall constitute a proper venue for the26
institution by the commission office of judicial actions authorized under this27
Chapter.28 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 12 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
C. All costs, including reasonable attorney fees set by the court incurred by1
the commission office, shall be borne by the person or licensee who has been so2
enjoined.3
D.(1) If it appears to the commission office at any time that a person is4
violating the provisions of this Chapter or any rule or order of the commission office5
issued pursuant to this Chapter, it shall notify the person engaged in such conduct to6
appear and show cause why a cease and desist order should not be issued prohibiting7
the proscribed conduct. An interlocutory cease and desist order may be granted with8
or without bond or other undertaking if one or all of the following conditions exist:9
(a) Such an order is necessary to the performance of the duties delegated to10
the commission office by this Chapter or is otherwise necessary or convenient to11
maintaining the status quo between two or more adverse parties before the12
commission office.13
(b) A party before the commission office is entitled to relief demanded of the14
commission office, and all or part of the relief requires the restraint of some act15
prejudicial to the party.16
(c) A person is performing or is about to perform or is procuring or allowing17
the performance of an act relating to the subject of a contested case pending before18
the commission office, and the act would tend to render the commission's office's19
order in that case ineffectual.20
(d) Substantial injury to the rights of a person subject to the commission's21
office's jurisdiction is threatened irrespective of any remedy at law.22
(2) Interlocutory cease and desist orders shall remain in effect until vacated23
or until incorporated into a final commission office order. Permanent cease and24
desist orders may be issued without regard to the enumerations in Paragraph (1) of25
this Subsection, but only in accordance with the provisions of this Chapter pertaining26
to the issuance of final commission office orders.27
(3) Appeal of any interlocutory cease and desist order shall be made to the28
commission office prior to seeking judicial review under the provisions of this29 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 13 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Chapter. Appeal of a permanent cease and desist order shall be conducted pursuant1
to the provisions of this Chapter pertaining to judicial review of final orders.2
* * *3
§788. Civil penalties4
A. If the commission office shall determine that any applicant is not5
qualified to receive a license, a license shall not be granted to said applicant, and if6
the commission office shall determine that any licensee is guilty of a violation of any7
of the provisions of this Chapter or the rules and regulations of the commission,8
office, his or its license may be suspended or revoked or a civil penalty may be9
imposed by the commission. The commission office. The office may also impose10
a civil penalty against any person, firm, association, corporation, limited liability11
company, or trust which is determined by the commission office to have violated any12
of the provisions of this Chapter or the rules and regulations of the commission13
office.14
B.(1) No civil penalty imposed for the violation of the provisions of this15
Chapter or the rules and regulations of the commission office shall exceed two16
thousand dollars for each day such violation continues. However, no penalty17
imposed for a violation of Part III of this Chapter shall exceed five hundred dollars18
for each day such violation continues.19
* * *20
C. Any civil penalty imposed by the commission office may, in the21
discretion of the commission office, be suspended in whole or in part.22
D. Upon the failure of any person, firm, association, corporation, limited23
liability company, or trust to timely pay any civil penalty imposed by the24
commission office when due, the commission office shall be entitled to recover by25
suit or otherwise, from such party all costs of collection, including court costs,26
deposition, and other discovery costs, and reasonable attorney fees incurred by the27
commission office in collecting such civil penalty.28
* * *29 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 14 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§790. Black market sales; prohibition1
* * *2
C. The Used Motor Vehicle Commission office shall have the responsibility3
to enforce the provisions of this Section.4
§791. Application for license; fee; educational seminar; bond requirements; liability5
insurance; salesperson's license; location of business6
* * *7
B.(1) Applications for licensure as a used motor vehicle dealer shall be8
signed by the applicant, shall be on forms prescribed by the commission office and9
furnished to such applicants, and shall contain such information as the commission10
office deems necessary to enable it to fully determine the qualifications and11
eligibility of the several applicants to receive the license or licenses.12
(2) The commission office shall require in such application, or otherwise,13
information relating to:14
* * *15
(3)16
* * *17
(b)(i) On and after January 1, 2002, every application for the issuance of a18
used motor vehicle dealer's license that is submitted by an applicant who has not19
been licensed prior to January 1, 2003, shall be accompanied by, or supported by,20
such evidence as the commission office shall prescribe, documenting that the21
dealership's general manager, office manager, title clerk, or other responsible22
representative of the dealership has attended a four-hour educational seminar or has23
registered to attend such seminar within sixty days after issuance of the license. The24
failure to attend the seminar shall be considered a violation of this Part. The25
educational seminar shall include but is not limited to the dealer requirements of this26
Part and the rules promulgated to implement, enforce, and administer this Part.27
Additionally, the seminar materials shall include a presentation of the requirements28
of the Louisiana Department of Public Safety and Corrections, office of motor29 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 15 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
vehicles office, the Louisiana Department of Revenue, and such other information1
that will promote good business practices. Such educational seminar requirement2
shall not include written or oral exams.3
(ii) The educational seminar shall be designed to develop and present4
educational programs that enhance the knowledge and competence of used motor5
vehicle dealers, their salespersons, and service personnel for the benefit of the public.6
The commission office may approve any nonprofit corporation organized for the7
purpose of representing licensees of this commission office to administer the8
educational seminar program and may approve any for-profit corporation,9
association, or other entity that is associated with the used car industry to conduct the10
seminar and certify completion of the required attendance. However, the11
commission office shall investigate the qualifications of and shall have the authority12
to approve or deny approval of all entities that desire to conduct an educational13
seminar for motor vehicle dealer applicants and motor vehicle dealers.14
(iii) The commission office shall approve a uniform document used to certify15
completion of the seminar and all materials used in conducting the seminar. The16
commission office shall approve all fees charged for materials and attendance to the17
seminar.18
(iv) The commission office shall promulgate rules to implement this19
educational seminar program.20
(4)21
* * *22
(b) Any dealer who submits a renewal application after the expiration date23
of an existing license shall be subject to a late penalty of one hundred dollars which24
shall be paid to the commission office.25
* * *26
(d) Any dealer changing the name of the dealership, the dealership's address,27
the ownership of the dealership, or opening any additional place of business shall28 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 16 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
notify the commission office within ten days of such change or be in violation of this1
Part.2
(e) Any dealership ceasing to maintain its business shall surrender the3
dealership license to the commission office within ten days and any failure to do so4
shall constitute a misdemeanor. Violations of this Subparagraph shall be punished5
as provided in Paragraph (A)(3) of this Section.6
(f) The commission office is authorized to adopt rules to implement the7
provisions of this Section.8
(5) The office of motor vehicles of the Department of Public Safety and9
Corrections shall be notified not to not accept dealers' titles until such time as10
licenses have been issued.11
C. A used motor vehicle salesperson's license shall permit the licensee to12
engage in the activities of a used motor vehicle salesperson. Salespersons shall not13
be allowed to sell vehicles unless applications and fees are on file with the14
commission office and the motor vehicle salesperson's or temporary salesperson's15
license has been issued. No person shall hold more than one salesperson's license16
at a time.17
D. The schedule of license fees to be charged and received by the18
commission office for the licenses issued hereunder shall be as follows:19
* * *20
E. The license issued to each used motor vehicle dealer shall specify the21
location of the place of business. If the business location is changed, the commission22
office shall be notified immediately of the change and the commission office may23
endorse the change of location on the license without charge. The license of each24
dealer shall be posted in a conspicuous place in the dealer's place or places of25
business.26
* * *27 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 17 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
G.(1) Every applicant for licensure or renewal of a license as a used motor1
vehicle dealer shall show proof of responsibility by depositing with the commission2
office a continuing bond in the amount required herein:3
* * *4
(c) All bonds shall be with a commercial surety authorized to do business in5
the state, which bond shall be approved by the commission office, payable to the6
state of Louisiana through the commission office, and shall be conditioned upon7
faithful observance of all laws regulated by the commission office, including but not8
limited to laws relating to penalties and hearing costs and to the proper disposition9
of licenses, tags, or titles, and shall also indemnify any person who suffers any loss10
by reason of a failure to observe the provisions of the law relating to sales tax,11
licenses, tags, or titles and shall also indemnify any person who suffers any loss,12
damages, and expenses by reason of a failure to deliver title and for the proper13
disposition of all taxes, licenses, and registration fees.14
(2) Such bond shall be for the license period and a new bond or a proper15
continuation certificate shall be delivered to the commission office at the beginning16
of each license period; however, the aggregate liability of the surety in any one year17
shall in no event exceed the sum of such bond.18
(3) Such bond shall be made payable to the state of Louisiana through the19
commission office for the use, benefit, and indemnity of any persons who shall suffer20
any loss as a result of any violation of the conditions herein above contained and for21
the proper disposition of all taxes and registration fees.22
* * *23
J. Applicants for licensure pursuant to this Part, other than a used motor24
vehicle dealer's license, shall submit such evidence as the commission office shall25
prescribe, documenting that either the applicant or his general manager, office26
manager, title clerk, or other responsible representative of the applicant has attended27
a four-hour educational seminar or has registered to attend such seminar within sixty28
days after issuance of the license.29 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 18 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§792. Denial, revocation, or suspension of license; grounds; unauthorized acts1
A. Except as otherwise provided in this Section, the commission office may2
deny an application for a license as a used motor vehicle dealer, dealer in used parts3
or used accessories of motor vehicles, used motor vehicle auctioneer, or salesperson4
for any of the following reasons:5
(1) On satisfactory proof of unfitness of the applicant under the standards6
established by this Part or in rules or regulations adopted and promulgated by the7
commission office.8
* * *9
(4) Where the applicant has, under a previous license, committed a violation10
of any law or rule or regulation adopted and promulgated by the commission office.11
B. The commission office may revoke or suspend a license, issue a fine or12
penalty, or enjoin a used motor vehicle dealer, dealer in used parts or used13
accessories of motor vehicles, used motor vehicle auctioneer, or salesperson for any14
of the following conduct:15
* * *16
(6) Not operating from the address shown on his license if this change has17
not been reported to the commission office in either an application for an additional18
location, or not restricting the location of the display of motor vehicles exclusively19
to the address shown on his license, except pursuant to a permit for an approved20
off-site display.21
* * *22
C. The commission office may revoke or suspend a license, issue a fine or23
penalty, or enjoin a used motor vehicle broker for any of the following conduct:24
* * *25
D. The commission office shall not deny an application for a used motor26
vehicle dealership based upon consideration of an existing or anticipated economic27
or competitive effect on other licenses in the surrounding community or territory.28 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 19 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
E. In the performance of its duties under this Section, the commission office1
shall have the authority to obtain from the Department of Public Safety and2
Corrections and other governmental agencies information relating to the criminal3
records of applicants for licenses under this Part.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
* * *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
office pursuant to the authority vested in it by this Chapter.14
* * *15
B. Any violation of this Section shall constitute grounds for suspension,16
revocation, or refusal to issue or renew any license or permit issued by the17
commission office.18
* * *19
§1252. Definitions20
The following words, terms, and phrases, when used in this Chapter, shall21
have the meanings respectively ascribed to them in this Section, except where the22
context clearly indicates a different meaning:23
* * *24
(31)25
* * *26
(c) Any motor vehicle lessor who rents on a daily basis motor vehicles,27
recreational products, or specialty vehicles not of the current year or immediate prior28
year models that have been titled previously to an ultimate purchaser, and who is29 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 20 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
otherwise not required to obtain a license under this Chapter, shall be subject to the1
regulation of the Louisiana Used Motor Vehicle Commission Louisiana Department2
of Public Safety and Corrections, office of motor vehicles.3
* * *4
Section 3. R.S. 47:305.36(C)(2), 520(A) and (C)(3), and 522(C) are hereby5
amended and reenacted to read as follows: 6
§305.36. Exclusions and exemptions; motor vehicles7
* * *8
C.9
* * *10
(2) The exemption provided by this Section shall be available only to dealers11
who have qualified with the Louisiana Motor Vehicle Commission and the Louisiana12
Used Motor Vehicle and Parts Commission Louisiana Department of Public Safety13
and Corrections, office of motor vehicles.14
* * *15
§520. Dealers temporary demonstration and transportation identification plate16
A. As used in this Section, the word "dealership" means any legal entity17
which is licensed to do business as a motor vehicle dealer by the Louisiana Motor18
Vehicle Commission, R.S. 32:1251 et seq., or by the Louisiana Used Motor Vehicle19
and Parts Commission Louisiana Department of Public Safety and Corrections,20
office of motor vehicles, R.S. 32:771 et seq.21
* * *22
C. Each identification plate shall be green and shall contain the following23
information:24
* * *25
(3) The number on the license issued by the Motor Vehicle Commission or26
by the Used Motor Vehicle and Parts Commission Louisiana Department of Public27 HLS 12RS-1523 ORIGINAL
HB NO. 1002
Page 21 of 21
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Safety and Corrections, office of motor vehicles, to the dealership which is using the1
identification plate.2
* * *3
§522. Authorization to enter dealer premises to recover state credentials4
* * *5
C. The Louisiana Motor Vehicle Commission and the Louisiana6
Recreational and Used Motor Vehicle Commission Louisiana Department of Public7
Safety and Corrections, office of motor vehicles, shall promptly notify the8
Department of Public Safety and Corrections whenever a dealer's license is9
suspended or revoked, or if either commission entity has information that a licensed10
dealer has ceased operations without any formal action against the dealer's license.11
Section 4. R.S. 36:4.1(D)(1) is hereby repealed in its entirety.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)]
Jones HB No. 1002
Abstract: Abolishes the Used Motor Vehicle Commission and transfers all its powers and
duties to the office of motor vehicles.
Present law creates the La. Used Motor Vehicle Commission and provides for its various
powers and duties relative to the regulation of used motor vehicles.
Proposed law abolishes the La. Used Motor Vehicle Commission and transfers all its present
law powers and duties to the La. Dept. of Public Safety and Corrections, office of motor
vehicles.
(Amends R.S. 23:921(I)(2)(b), the heading of Chapter 4-C of Title 32 of the La. Revised
Statutes of 1950, R.S. 32:781(2) and (8), 782, 783, 784(A)(intro. para.), (B), (C), and (D),
785(A), (B)(1)(intro. para.) and (b) and (2), (C), and (E), 786(A), (B), (C), and (D)(1), (2),
and (3), 788(A), (B)(1), (C), and (D), 790(C), 791(B)(1), (2)(intro. para.), (3)(b), (4)(b), (d),
(e), and (f), and (5), (C), (D)(intro. para.), (E), (G)(1)(intro. para.) and (c), (2), and (3) and
(J), 792(A)(intro. para.), (1), and (4), (B)(intro. para.) and (6), (C)(intro. para.), (D), and (E),
794(A)(2) and (B), and 1252(31)(c), and R.S. 47:305.36(C)(2), 520(A) and (C)(3), and
522(C); Repeals R.S. 36:4.1(D)(1))