HLS 16RS-3467 ORIGINAL
2016 Regular Session
HOUSE RESOLUTION NO. 153
BY REPRESENTATIVE CARMODY
MOTOR VEHICLES: Provides relative to transactions involving wrecked or repairable
motor vehicles
1 A RESOLUTION
2To urge and request the office of motor vehicles within the Department of Public Safety and
3 Corrections, the Louisiana Used Motor Vehicle Commission, and the Department of
4 Revenue to jointly conduct a study analyzing the feasibility of creating a statewide
5 database, to determine effectiveness of the database, and to make a report of the
6 findings of the study.
7 WHEREAS, the office of motor vehicles within the Department of Public Safety and
8Corrections has maintained the auto hulk database since July 1, 2010, pursuant to R.S.
932:718, wherein licensed automotive dismantlers and secondary metal processors are
10required to report their intent to dismantle a vehicle; and
11 WHEREAS, the office of motor vehicles within the Department of Public Safety and
12Corrections is responsible for titling vehicles and collecting and remitting state sales taxes
13for reconstructed vehicles to the Department of Revenue at the time of registration of the
14vehicle; and
15 WHEREAS, R.S. 32:784 requires used motor vehicle dealers, dismantlers, parts
16recyclers, motor vehicle auctions, and salvage pools to be licensed by the Louisiana Used
17Motor Vehicle Commission; and
18 WHEREAS, R.S. 32:781(13) states, in pertinent part, that a "used motor vehicle
19dealer" means "any person, partnership, corporation, limited liability company, or other
20entity who, for a commission or with intent to make a profit or gain of money or other thing
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HR NO. 153
1of value, buys, sells, brokers, exchanges, rents with option to purchase, auctions at retail or
2public, offers, or attempts to negotiate a sale or exchange of an interest in used motor
3vehicles and who is engaged wholly or in part in the business of buying and selling used
4motor vehicles" and that "a person shall be presumed to be engaged in the business of selling
5used motor vehicles if he sells five or more used motor vehicles in any twelve-month
6period"; and
7 WHEREAS, Louisiana currently allows the sale of wrecked or repairable motor
8vehicles to both licensed and unlicensed individuals or entities; and
9 WHEREAS, unlicensed purchasing of wrecked or repairable motor vehicles via the
10internet has created an unregulated and unlicensed market for used motor vehicles; and
11 WHEREAS, wrecked or repairable motor vehicles purchased in Louisiana can be
12used to repair vehicles in Louisiana that are subsequently sold to out-of-state individuals or
13entities registered in other states or foreign jurisdictions thereby depriving Louisiana of
14properly due taxes on wrecked or repairable motor vehicles that are dismantled for parts to
15reconstruct repairable vehicles; and
16 WHEREAS, unlicensed activity in the wrecked or repairable motor vehicles market
17will continue to increase without coordination of the state agencies that are responsible for
18regulating and titling wrecked or repairable motor vehicles and determining whether a
19transaction is taxable; and
20 WHEREAS, the purchase of wrecked or repairable motor vehicles by unlicensed
21individuals or entities often lacks accountability or traceability presenting various challenges
22for law enforcement; and
23 WHEREAS, current federal regulations do not provide adequate resources to state
24and local agencies for the purpose of overseeing and enforcing transactions involving the
25sale and purchase of a multitude of wrecked or repairable motor vehicles; and
26 WHEREAS, the Louisiana Used Motor Vehicle Commission has the authority to
27regulate used motor vehicle dealers, dealers of used parts or used accessories of motor
28vehicles, dismantlers, parts recyclers, and salvage pools.
29 THEREFORE, BE IT RESOLVED that the House of Representatives of the
30Legislature of Louisiana does hereby urge and request the office of motor vehicles within
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HR NO. 153
1the Department of Public Safety and Corrections, the Louisiana Used Motor Vehicle
2Commission, and the Department of Revenue to do the following:
3 (1) Jointly conduct a study analyzing the feasibility of creating a statewide database
4for the purpose of tracking transactions involving the sale of wrecked or repairable motor
5vehicles to unlicensed individuals or entities.
6 (2) Determine whether such a statewide database would assist in identifying
7unlicensed activity, lost tax revenue from transactions, violations of current statutes, or any
8other similar concerns related to sales of wrecked or repairable motor vehicles to unlicensed
9individuals or entities which could be resolved or improved.
10 (3) Make a written report of their findings and recommendations of the study and
11submit the report to the House Committee on Commerce no later than January 16, 2017.
12 BE IT FURTHER RESOLVED that a copy of this Resolution shall be transmitted
13to the commissioner of the office of motor vehicles within the Department of Public Safety
14and Corrections, the secretary of the Department of Revenue, and the chairman and
15executive director of the Louisiana Used Motor Vehicle Commission.
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)]
HR 153 Original 2016 Regular Session Carmody
Urges and requests the office of motor vehicles within the Dept. of Public Safety and
Corrections, the La. Used Motor Vehicle Commission, and the Dept. of Revenue to conduct
a study to analyze the feasibility of creating a database for the purpose of tracking
transactions involving the sale of wrecked or repairable motor vehicles to unlicensed
individuals or entities and to make a written report of their findings and recommendations
of the study and submit the report to the House Committee on Commerce no later than
January 16, 2017.
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