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ACT No. 136
Regular Session, 2012
HOUSE BILL NO. 804
BY REPRESENTATIVE JAMES
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 employed 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 ENROLLEDHB NO. 804
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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 ENROLLEDHB NO. 804
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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
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: