Mack HB No. 445
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
MOTOR VEHICLES. Provides relative to entities authorized to provide services
related to motor vehicles.
DIGEST
HB 445 Reengrossed 2015 Regular Session Mack
Present law authorizes the commissioner to establish a system of public license tag agents
to collect the registration license taxes. Specifies that the system is to consist of municipal
and parish governing authorities or new motor vehicle dealers or their agents as well as
authorized auto title companies.
Proposed law prohibits persons, natural or juridical, from collecting registration license taxes
except public license tag agents, auto title companies, financial institutions, licensed new or
used car dealers, state departments, offices or entities, and those included in the system
established pursuant to present law.
Present law requires each public license tag agent other than a municipal governing authority
to execute a good and sufficient surety bond with a surety company qualified to do business
in La. as surety, in a sum of not less than $10,000 nor more than $100,000. Specifies that
a public license tag agent with multiple locations only has to furnish a single $10,000 surety
bond in addition to any other bonds required by law.
Proposed law removes present law surety requirements and instead requires each public
license tag agent other than a municipal governing authority to execute a good and sufficient
surety bond with a surety company qualified to do business in La. as surety, in a sum of
$100,000 should the public tag agent have only one office in this state and in a sum of
$125,000 should the public tag agent have more than one office in this state.
Proposed law provides that the office of motor vehicles (OMV) may deny a contract to any
person, natural or juridical, seeking to be a public tag agent if that person has been found to
be in violation of any rule or regulation promulgated by the office of motor vehicles
pertaining to the issuance of a motor vehicle title, registration, or driver's license within the
two-year period prior to the date of application.
Proposed law authorizes OMV to suspend, revoke, cancel, or impose other restrictions on
any public tag agent contract confected pursuant to present law for the following causes:
(1)Failure to remit taxes and fees collected from applicants for title transfers.
(2)Operating as a public tag agent without a contract for each location, with an expired
contract, or without a valid surety bond on file with OMV.
(3)Issuance of more than one temporary registration (T-Marker) to a title applicant, or
issuing a T-Marker without first collecting all taxes and fees.
(4)Operating from an unapproved location.
(5)Changing the ownership of the public tag agent and not reporting in writing to OMV
within 30 days from the date of such change.
(6)Changing the officers or directors of the public tag agent and not reporting in writing
to OMV within 30 days from the date of such change.
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Prepared by Riley Boudreaux. (7)Being a principal or accessory to the alteration of documents relevant to a registration
or titling transaction that results in a material injury to the public records or a
shortfall in the collection of taxes owed.
(8)The forwarding to OMV by a public tag agent of a document relevant to a registration
or titling transaction that results in a material injury to the public records, or a
shortfall in the collection of taxes owed when the public tag agent had knowledge of
facts causing such injury or shortfall, and failed to disclose same to OMV.
(9)Conviction of, or entry of a plea of guilty or nolo contendere to, any felony or
conviction of, or entry of a plea of guilty or nolo contendere to, any criminal charge
an element of which is fraud.
(10)Fraud, deceit, or perjury in obtaining any contract perfected pursuant to R.S.
47:532.1.
(11)Failure to maintain at all times during the term of the contract all qualifications
required by R.S. 47:532.1 or by rule adopted by OMV.
(12)Any other cause OMV may establish through the adoption of a rule.
Proposed law provides that any person whose public tag agent contract has been suspended,
canceled, or revoked during the effective term of the contract may request an administrative
hearing to review OMV' s action. A request for administrative review shall stay the action
of OMV.
Proposed law provides that OMV may issue an order to any person engaged in any activity,
conduct, or practice constituting a violation of present law or proposed law relating to public
tag agent contracts or any rules or regulations adopted pursuant to present law or proposed
law, directing such person to cease and desist from such activity, conduct, or practice.
Proposed law provides that if the person to whom OMV directs a cease and desist order does
not cease and desist the proscribed activity, conduct, or practice within 10 days from service
of such cease and desist order by certified mail, OMV may cause to issue a writ of injunction
enjoining such person from engaging in any activity, conduct, or practice proscribed by
present law or proposed law relating to public tag agents, or any rules or regulations adopted
pursuant to either.
Proposed law provides for that such proceeding shall be brought in the district court having
civil jurisdiction in any parish in which such person resides, or is domiciled or has his
principal place of business. If the person whose contract is to be suspended, revoked,
canceled, or otherwise restricted is a nonresident and is not domiciled within the state, such
proceeding may be brought in the 19th Judicial District Court for the parish of East Baton
Rouge.
Proposed law provides that upon a proper showing by OMV that such person has engaged
or is engaged in any activity, conduct, or practice proscribed present or proposed law relating
to public tag agent contracts or any rules or regulations adopted pursuant to either, the court
shall issue a temporary restraining order restraining the person from engaging in unlawful
activity, conduct, or practices pending the hearing on a preliminary injunction, and in due
course a permanent injunction shall issue after hearing, commanding the cessation of the
unlawful activity, conduct, or practice complained of, all without the necessity of OMV
having to give bond as usually required in such cases.
Proposed law provides that the trial of the proceeding by injunction shall be a summary
proceeding, and shall be by the judge alone without a jury.
Proposed law provides that a public tag agent with an existing contract with the Department
of Public Safety and Corrections, OMV, as of August 1, 2015, shall not be required to obtain
a surety bond in the amounts required by proposed law until the renewal date of the contract.
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Prepared by Riley Boudreaux. Thereafter, all public tag agents shall be required to obtain surety bonds in the amounts
required by the provisions of proposed law.
Proposed law increases the fees which may be charged by the Department of Public Safety
and Corrections, the commissioner of OMV, for each certificate of title from $18.50 to
$68.50; for each permit to sell or duplicate permit to sell a motor vehicle, from $15 to $65;
and for each salvage title, from $18.50 to $68.50.
Effective July 1, 2015.
(Amends R.S. 32:728(1), (7), and (8) and R.S. 47:532.1(A)(1), (3)(a), and (6); Adds R.S.
47:532.2 and 532.3)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Transportation,
Highways and Public Works to the original bill:
1. Clarify that financial institutions, licensed new or used car dealers, state
departments, offices, or entities and entities included in the public tag agent
system established by the commissioner can collect motor vehicle registration
license taxes.
2. Modify a provision in proposed law to specify that the surety bond requirement
of a public tag agent with one office in the state is $100,000 and $125,000 for a
public tag agent with more than one office in the state.
3. Modify a penalty provision in proposed law to specify that the office of motor
vehicles (OMV) may deny a contract to any person, natural or juridical, seeking
to be a public tag agent if that person has been found to be in violation of any rule
or regulation promulgated by OMV pertaining to the issuance of a motor vehicle
title, registration, or driver's license within the two-year period prior to the date
of application.
4. Add a provision authorizing OMV to suspend, revoke, cancel, or impose other
restrictions on a public tag agent contract for certain causes.
5. Add a provision authorizing OMV to issue a cease and desist order to a person
with a public tag agent contract if the public tag agent is engaged in certain
prohibited activity. Also authorizes OMV to cause to issue a writ of injunction
enjoining such activity if such person does not cease and desist such activity.
6. Remove a provision permitting OMV to designate any public tag agent as an
official OMV field office if certain requirements are met.
7. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Provide that a public tag agent with an existing contract with the Department of
Public Safety and Corrections, office of motor vehicles, as of August 1, 2015,
shall not be required to obtain a surety bond in the amounts required by proposed
law until the renewal date of the contract. Thereafter, all public tag agents shall
be required to obtain surety bonds in the amounts required by the provisions of
proposed law.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Transportation, Highways,
and Public Works to the reengrossed bill
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Prepared by Riley Boudreaux. 1. Authorizes public license tag agents and auto title companies to collect
registration license taxes.
2. Increases certain fees of the commissioner of OMV.
3. Makes the proposed law effective July 1, 2015.
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Prepared by Riley Boudreaux.