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