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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(5), (12), and (13)(a), 788(B), 793(A)(introductory2
paragraph), (2), and (5) and to enact R.S. 32:792(B)(16) and 795, relative to used3
motor vehicles; to provide for definitions; to provide relative to civil penalties; to4
provide for definitions in rent with option-to-purchase program; to provide relative5
to 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(5), (12), and (13)(a), 788(B), 793(A)(introductory8
paragraph), (2), and (5) are hereby amended and reenacted and R.S. 32:792(B)(16) and 7959
are hereby enacted to read as follows: 10
§781. Definitions11
As used in this Chapter:12
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(5) "Motor vehicle" means any motor-driven car, van, or truck required to14
be registered pursuant to the Vehicle Registration License Tax Law, R.S. 47:451 et15
seq., which is used or is designed to be used, for the transporting of passengers or16
goods for public, private, commercial, or for-hire purposes and includes used,17
including motor homes, used motorcycles, used all-terrain vehicles, used recreational18
vehicles, travel trailers, used boat trailers, used ambulances, used buses, used fire19
trucks, used conversion vehicles, used wreckers, and used semitrailers, hearses, and20
marine products, as any of the terms are defined in R.S. 32:1252.21
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(12) "Used motor vehicle" means a motor vehicle, the legal title of which1
has been transferred by a manufacturer, distributor, or dealer to an ultimate2
purchaser. For purposes of this Chapter a "used motor vehicle" includes used motor3
homes, used motorcycles, used all-terrain vehicles, used recreational trailers, used4
boat trailers, used ambulances, used buses, used fire trucks, used conversion5
vehicles, used wreckers, and used semitrailers been previously titled to an ultimate6
purchaser as defined in R.S. 32:1252.7
(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 employe d 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
(ii) The term shall also include anyone not licensed under Chapter 6 of Title24
32 of the Louisiana Revised Statutes of 1950 who sells used cars and trucks, used25
motorcycles, used trailers, used semitrailers, used travel trailers, used buses, used fire26
trucks, used wreckers, used conversion vehicles, used recreational vehicles, used27
motor homes, used hearses, or used ambulances used motor vehicles and who rents28 HLS 12RS-1396 REENGROSSED
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on a daily basis used motor vehicles , not of the current year or immediate prior year1
models, that have been titled previously to an ultimate purchaser.2
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§788. Civil penalties4
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B.(1) No civil penalty imposed for the violation of the provisions of this6
Chapter or the rules and regulations of the commission shall exceed two thousand7
dollars for each day such violation continues. However, no penalty imposed for a8
violation of Part III of this Chapter shall exceed five hundred dollars for each day9
such violation continues.10
(2) On a second or subsequent violation, no civil penalty imposed shall11
exceed three thousand dollars for each day such second or subsequent violation12
continues. However, no penalty imposed for a violation of Part III of this Chapter13
shall exceed one thousand dollars for each day such second or subsequent violation14
continues. In order to constitute a second or subsequent violation there must occur15
a lapse of at least one day following the first or previous violation.16
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§792. Denial, revocation, or suspension of license; grounds; unauthorized acts18
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B. The commission may revoke or suspend a license, issue a fine or penalty,20
or enjoin a used motor vehicle dealer, dealer in used parts or used accessories of21
motor vehicles, used motor vehicle auctioneer, or salesperson for any of the22
following conduct:23
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(16) Violating any provision of this Chapter, any rule or regulation adopted25
by the commission, or any provision of law relating to the proper disposition of26
certificates of title or permits to dismantle in connection with the purchase or sale of27
any used motor vehicle.28
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§793. Rent with option-to-purchase program1
A. Definitions As used in this Section:2
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(2) "Default" means the failure of a rental consumer to bring the rental4
account current within five days after the rent-to-own rental payment is due or the5
failure of the rental consumer to maintain minimum insurance required pursuant to6
a rental purchase agreement.7
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(5) "Rental dealer" means a person who regularly provides used motor9
vehicles under a vehicle rent with option-to-purchase agreement. "Rent-to-own10
dealer" means a used motor vehicle dealer who rents used motor vehicles under a11
rental purchase agreement.12
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§795. Deposits and down payments; disclosure; return14
A. Every used motor vehicle dealer who accepts a deposit or a down15
payment from a consumer shall provide the consumer with a purchase agreement16
statement containing the following:17
(1) A complete description of the motor vehicle subject to the purchase18
agreement, including the make, model, year, and vehicle identification number.19
(2) The purchase price of the vehicle.20
(3) The amount of the deposit or down payment.21
(4) A statement identifying whether the funds received by the dealer are for22
deposit or down payment.23
(5) Any conditions necessary to complete the sale.24
B. Every used motor vehicle dealer who accepts a deposit or down payment25
for a purchase agreement conditioned upon the consumer's ability to obtain financing26
of the remainder of the purchase price shall return the deposit or down payment upon27
a determination that the consumer does not qualify for financing. If no28
determination is made regarding financing within twenty days of the receipt of the29 HLS 12RS-1396 REENGROSSED
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deposit or down payment, the deposit or down payment shall be returned to the1
consumer at the end of the twenty-day period.2
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 "motor vehicle" as any motor driven car, van, or truck required to be registered
which is used for transporting passengers or goods, including motor homes, used
motorcycles, used all-terrain vehicles, used recreational trailers, used boat trailers, used
ambulances, used buses, used fire trucks, used conversion vehicles, used wreckers, and used
semitrailers. 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.
Proposed law clarifies the definition of "motor vehicle" by referring to those motor-driven
cars, vans, or trucks required to be registered pursuant to the Vehicle Registration License
Tax Law, takes out references to "used" and includes recreational vehicles, travel trailers,
hearses and marine products. Clarifies the definition of "used motor vehicle" as meaning
any motor vehicle which has been previously titled to an ultimate purchaser. 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 on a daily basis used motor vehicles.
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. HLS 12RS-1396 REENGROSSED
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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 defines "rent-to-own dealer" as any used motor vehicle dealer who rents used
motor vehicles under a 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.
(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(5), (12), and (13)(a), 788(B), 793(A)(intro. para.), (2), and (5); Adds
R.S. 32:792(B)(16) and 795)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Commerce to the original
bill.
1. Clarified the definition of "motor vehicle" by referring to those motor-driven
cars, vans, or trucks required to be registered pursuant to the Vehicle Registration
License Tax Law, takes out references to "used" and includes recreational
vehicles, travel trailers, hearses, and marine products.
2. Clarified the definition of "used motor vehicle" as meaning any motor vehicle
which has been previously titled to an ultimate purchaser. HLS 12RS-1396 REENGROSSED
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3. Clarified that the term "used motor vehicle dealer" does not include anyone
licensed by the La. Motor Vehicle Commission who sells used motor vehicles
and who rents on a daily basis used motor vehicles.
4. Defined "rent-to-own dealer" as any used motor vehicle dealer who rents used
motor vehicles under a rental purchase agreement.