HLS 12RS-1396 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 804
BY REPRESENTATIVE JAMES
MOTOR VEHICLES: Makes changes in the provisions regulating used motor vehicles
AN ACT1
To amend and reenact R.S. 32:781(12), (13)(a), 788(B), 792(B)(16), 793(A)(introductory2
paragraph) and (2) and to enact R.S. 32:781(18) and 795, relative to used motor3
vehicles; to provide for definitions; to provide relative to civil penalties; to provide4
for definitions in rent with option-to-purchase program; to provide relative to5
deposits and down payments; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 32:781(12), (13)(a), 788(B), 792(B)(16), 793(A)(introductory8
paragraph) and (2) are hereby amended and reenacted and R.S. 32:781(18) and 795 are9
hereby enacted to read as follows: 10
§781. Definitions11
As used in this Chapter:12
* * *13
(12) "Used motor vehicle" means a motor vehicle, the legal title of which has14
been transferred by a manufacturer, distributor, or dealer to an ultimate purchaser.15
For purposes of this Chapter a "used motor vehicle" includes used cars and trucks,16
used motor homes, used motorcycles, used all-terrain vehicles, used powered carts,17
used recreational trailers, used recreational vehicles, used motor boats, used boat18
trailers, used travel trailers, used ambulances, used buses, used fire trucks, used19
conversion vehicles, used wreckers, used hearses and used semitrailers used20
personal watercraft.21
(13)(a)(i) "Used motor vehicle dealer" means any person, partnership,22
corporation, limited liability company, or other entity who, for a commission or with23 HLS 12RS-1396 ORIGINAL
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intent to make a profit or gain of money or other thing of value, buys, sells, brokers,1
exchanges, rents with option to purchase, auctions, offers, or attempts to negotiate2
a sale or exchange of an interest in used motor vehicles and who is engaged wholly3
or in part in the business of buying and selling used motor vehicles, whether such4
motor vehicles are owned by such person and whether the motor vehicles are sold5
from a dealership location or via any form of advertising, including but not limited6
to the Internet. A person shall be presumed to be engaged in the business of selling7
used motor vehicles if he sells five or more used motor vehicles in any twelve-month8
period which vehicles are not registered to and insured by members of the9
individual's household, immediate family members, or legal entities which the10
individual has an ownership interest in or is employed by. An entity shall be11
presumed to be engaged in the business of selling used motor vehicles if the entity12
sells five or more used motor vehicles which are not registered to and insured by the13
entity or by an entity affiliated with the entity receiving anything of value.14
(ii) The term shall also include anyone not licensed under Chapter 6 of Title15
32 of the Louisiana Revised Statutes of 1950 who sells used cars and trucks, used16
motorcycles, used trailers, used semitrailers, used travel trailers, used buses, used fire17
trucks, used wreckers, used conversion vehicles, used recreational vehicles, used18
motor homes, used hearses, or used ambulances used motor vehicles and who rents19
or leases on a daily basis used motor vehicles, not of the current year or immediate20
prior year models, that have been titled previously to an ultimate purchaser.21
* * *22
(18) "Rent to own dealer" means any dealer who rents any used motor23
vehicle to a consumer pursuant to an agreement providing for rent with option- to-24
purchase program as provided in R.S. 32:793.25
* * *26
§788. Civil penalties27
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B.(1) No civil penalty imposed for the violation of the provisions of this1
Chapter or the rules and regulations of the commission shall exceed two thousand2
dollars for each day such violation continues. However, no penalty imposed for a3
violation of Part III of this Chapter shall exceed five hundred dollars for each day4
such violation continues.5
(2) On a second or subsequent violation, no civil penalty imposed shall6
exceed three thousand dollars for each day such second or subsequent violation7
continues. However, no penalty imposed for a violation of Part III of this Chapter8
shall exceed one thousand dollars for each day such second or subsequent violation9
continues. In order to constitute a second or subsequent violation there must occur10
a lapse of at least one day following the first or previous violation.11
* * *12
§792. Denial, revocation, or suspension of license; grounds; unauthorized acts13
* * *14
B. The commission may revoke or suspend a license, issue a fine or penalty,15
or enjoin a used motor vehicle dealer, dealer in used parts or used accessories of16
motor vehicles, used motor vehicle auctioneer, or salesperson for any of the17
following conduct:18
* * *19
(16) Violating any provision of this Chapter, any rule or regulation adopted20
by the commission, or any provision of law relating to the proper disposition of21
certificates of title or permits to dismantle in connection with the purchase or sale of22
any used motor vehicle.23
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§793. Rent with option-to-purchase program25
A. Definitions As used in this Section:26
* * *27
(2) "Default" means the failure of a rental consumer to bring the rental28
account current within five days after the rent-to-own rental payment is due or the29 HLS 12RS-1396 ORIGINAL
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failure of the rental consumer to maintain minimum insurance required pursuant to1
a rental purchase agreement.2
* * *3
§795. Deposits and down payments; disclosure; return4
A. Every used motor vehicle dealer who accepts a deposit or a down5
payment from a consumer shall provide the consumer with a purchase agreement6
statement containing the following:7
(1) A complete description of the motor vehicle subject to the purchase8
agreement, including the make, model, year, and vehicle identification number.9
(2) The purchase price of the vehicle.10
(3) The amount of the deposit or down payment.11
(4) A statement identifying whether the funds received by the dealer are for12
deposit or down payment.13
(5) Any conditions necessary to complete the sale.14
B. Every used motor vehicle dealer who accepts a deposit or down payment15
for a purchase agreement conditioned upon the consumer's ability to obtain financing16
of the remainder of the purchase price shall return the deposit or down payment upon17
a determination that the consumer does not qualify for financing. If no18
determination is made regarding financing within twenty days of the receipt of the19
deposit or down payment, the deposit or down payment shall be returned to the20
consumer at the end of the twenty-day period.21
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)]
James HB No. 804
Abstract: Changes definitions and penalty provisions and establishes requirements for
deposits and down payments relative to the regulation of used motor vehicles.
Present law, for the purposes of regulation by the La. Used Motor Vehicle Commission,
defines "used motor vehicle" as including used motor homes, used motorcycles, used all-
terrain vehicles, used recreational vehicles, used trailers, used boat trailers, used ambulances,
used buses, used fire trucks, used conversion vehicles, used wreckers, and used semitrailers. HLS 12RS-1396 ORIGINAL
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are additions.
Proposed law clarifies the definition of "used motor vehicle" by including used cars and
trucks, used powered carts, used motor boats, used travel trailers, used hearses, and used
personal watercraft. The definition no longer includes used recreational trailers, used boat
trailers, and used semitrailers. Definition changes are made to clean up present law
inconsistencies created when certain regulatory provisions were moved from the La. Used
Motor Vehicle Commission to the La. Motor Vehicle Commission.
Proposed law clarifies that the term "used motor vehicle dealer" in the regulation of used
motor vehicles does not include anyone licensed by the La. Motor Vehicle Commission who
sells used motor vehicles and who rents or leases used motor vehicles on a daily basis.
Proposed law defines "rent to own dealer" as any dealer who rents any used motor vehicle
to a consumer pursuant to any agreement providing for a rent with an option-to-purchase
program.
Present law provides civil penalties for violations of the regulatory provisions, but provides
that no civil penalty shall exceed $2,000 for each day the violation continues and provides
that on a second or subsequent violation, the penalty shall not exceed $3,000 for each day
the second or subsequent violation continues. Present law further provides that penalties
imposed for violations of the provisions regulating dismantlers, parts recyclers, motor
vehicle crushers, and scrapped motor vehicle dealers shall not exceed $500 for each day the
violation continues and provides that on a second or subsequent violation, the penalty shall
not exceed $1,000 for each day the second or subsequent violation continues.
Proposed law deletes present law penalties specified for violations of the provisions
regulating dismantlers, parts recyclers, motor vehicle crushers, and scrapped motor vehicle
dealers, subjecting those violations to the same penalties as all other violations under the
used motor vehicle regulatory provisions.
Present law allows the commission to revoke or suspend a license, issue a fine or penalty,
or enjoin a used motor vehicle dealer, used parts or accessories dealer, used motor vehicle
auctioneer or salesperson for certain violations of the regulatory provisions.
Proposed law retains present law and includes the violating of provisions relating to the
proper disposition of certificates of title or permits to dismantle in connection with the
purchase or sale of any used motor vehicle in the list of violations subject to penalty by the
commission.
Present law provides for regulation of a rent with option-to-purchase program and defines
"default" as the failure of a rental consumer to bring the account current within five days
after the rent to own payment is due.
Proposed law retains present law and provides that "default" also means the failure of the
rental consumer to maintain the minimum insurance required pursuant to the rental purchase
agreement.
Proposed law requires every used motor vehicle dealer who accepts a deposit or down
payment from a consumer to provide the consumer with a purchase agreement statement
containing:
(1)A complete description of the motor vehicle subject to the purchase agreement,
including the make, model, year, and vehicle identification number.
(2)The purchase price of the vehicle.
(3)The amount of the deposit or down payment.
(4)A statement identifying whether the funds received by the dealer are for deposit or
down payment. HLS 12RS-1396 ORIGINAL
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(5)Any conditions necessary to complete the sale.
Proposed law further requires every used motor vehicle dealer who accepts a deposit or
down payment from a consumer conditioned upon the consumer's ability to obtain financing
of the remainder of the purchase price to return the deposit or down payment once it is
determined that the consumer does not qualify for financing. Requires that if no
determination regarding financing is made within 20 days, the deposit or down payment
must be returned to the consumer.
(Amends R.S. 32:781(12), (13)(a), 788(B), 792(B)(16), 793(A)(intro. para.) and (2); Adds
R.S. 32:781(18) and 795)