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)]
HB 533 Original 2015 Regular Session Price
Abstract: Provides for definitions and amends restrictions imposed on rental purchase agreements
and advertising relative to the regulation of used motor vehicles.
Present law defines the term "scrap metal processor". Proposed law modifies the definition by
adding that any person or entity engaged in the business of storing scrap metal will also be
considered a "scrap metal processor". Proposed law also adds a statutory reference to the definition
of "scrap metal" within this definition of "scrap metal processor".
Present law authorizes the Louisiana Used Motor Vehicle Commission ("commission") to revoke
or suspend a license, issue a fine or penalty, or enjoin a used motor vehicle dealer, dealer of used
parts or used accessories of motor vehicles, used motor vehicle auctioneer, or salesperson for the use
of false, misleading, or unsubstantiated advertising in connection with his business. Present law
includes a nonexclusive list enumerating examples of false, misleading, or unsubstantiated
advertising. Proposed law adds advertising that uses the words "certified" or "certification" or other
similar terms without having proof of a bona fide certification process to the enumerated list of false,
misleading, or unsubstantiated advertising.
Present law requires all rental purchase agreements to have a provision indicating the amount of the
security deposit required by the rental dealer and the conditions under which that security deposit
is either refundable or nonrefundable. Proposed law prohibits the security deposit from being
nonrefundable. Present law prohibits these security deposits from exceeding the rental dealer's
documented cost of the vehicle. Proposed law prohibits these security deposits from exceeding 30%
of the rental dealer's documented cost of the vehicle. Further, proposed law adds a provision to
specify that the purpose of the security deposit is to secure payment for any damage to the rental
vehicle that is beyond normal wear and tear and for any extraordinary repairs beyond normal
maintenance.
Present law prohibits rental purchase agreements from including any provision that authorizes a
rental dealer or an agent of the rental dealer to commit a breach of the peace in the repossession of
rental property or to take repossession of rental property in any manner other than what is permitted
in present law relative to criminal offenses. Proposed law prohibits rental purchase agreements from
including any provision that authorizes a rental dealer or an agent of the rental dealer to take
repossession unless the rental consumer fails to cure a default within five days of the mailing of
notice of default or actual notice of default, whichever is later.
Present law defines "broker". Present law provides for circumstances in which the commission may revoke or suspend a license, issue a fine or penalty, or enjoin a used motor vehicle broker. Proposed
law removes the definition of and all references to "broker".
(Amends R.S. 32:781(9) and 793(B)(4)(d) and (C)(2); Adds R.S. 32:792(B)(17)(j); Repeals R.S.
32:781(1) and 792(C))