HLS 18RS-768 ORIGINAL
2018 Regular Session
HOUSE BILL NO. 514
BY REPRESENTATIVE SHADOIN
MOTOR VEHICLES: Provides relative to the La. Used Motor Vehicle Commission
1 AN ACT
2To amend and reenact R.S. 32:781(5), 782, 784(A)(introductory paragraph) and (5),
3 791(B)(3)(b), 792(B)(16), 793(E) and 801, to enact R.S. 32:783(F)(10), 784(A)(7)
4 through (9), 792(B)(19) and (20) and 795 and to repeal R.S. 32:783(F)(3) and 784(B)
5 relative to the regulation of used motor vehicles; to amend definitions; to provide for
6 the purpose of the Used Motor Vehicle Commission; to provide for the powers and
7 duties of the commission; to provide for certain prohibitions and unauthorized acts;
8 to provide relative to rental with option-to-purchase programs; to amend relative to
9 applications for licensure; to provide for educational requirements and procedure;
10 to repeal relative to dealer sales and certain educational seminars; to provide for
11 effectiveness; and to provide for related matters.
12Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 32:781(5), 782, 784(A)(introductory paragraph) and (5),
14791(B)(3)(b), 792(B)(16), 793(E) and 801 are hereby amended and reenacted and R.S.
1532:783(F)(10), 784(A)(7) through (9), 792(B)(19) and (20) and 795 are hereby enacted to
16read as follows:
17 §781. Definitions
18 As used in this Chapter:
19 * * *
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1 (5) "Motor vehicle" means any motor-driven car, van, or truck required to
2 be registered pursuant to the Vehicle Registration License Tax Law, R.S. 47:451 et
3 seq., or any vehicle manufactured for off-road use and issued a manufacturer's
4 statement or certificate of origin, as required by the Louisiana Motor Vehicle
5 Commission, that cannot be issued a registration certificate and license to operate on
6 the public roads of this state because, at the time of manufacture, the vehicle does not
7 meet the safety requirements prescribed by R.S. 32:1301 through 1310 which is used
8 or is designed to be used, for the transporting of passengers or goods for public,
9 private, commercial, or for-hire purposes including but not limited to motor homes,
10 motorcycles, all-terrain vehicles, recreational vehicles, travel trailers, boat trailers,
11 ambulances, buses, fire trucks, conversion vehicles, wreckers, semitrailers, hearses,
12 and marine products, as any of the terms are defined in R.S. 32:1252 vehicle required
13 to be registered that was used, is used, or is designed to be used for the transporting
14 of passengers or goods for public, private, commercial, or for-hire purposes.
15 * * *
16 §782. Jurisdiction and authority of commission; purpose
17 A. The Louisiana Used Motor Vehicle Commission is created for the
18 purpose of developing and advancing the independent used motor vehicle industry,
19 promoting and stimulating its businesses, and encouraging fair business practices to
20 strive for fair competition. Further, the commission understands its role in
21 representing the consumers of used motor vehicles and seeks to protect their interests
22 by strengthening the relationship between dealers and consumers, assisting in dispute
23 resolution, maintaining education programs to promote industry standards, and
24 assisting the office of motor vehicles in enforcement of its laws related to used motor
25 vehicle transactions.
26 B. The provisions of this Chapter shall not apply to any person, partnership,
27 corporation, limited liability company, or other entity that is licensed or regulated by
28 the Louisiana Motor Vehicle Commission. If any provision of this Chapter conflicts
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1 with any provision of Chapter 6 of this Title, the provisions of Chapter 6 of this Title
2 shall prevail.
3 §783. Used Motor Vehicle Commission; appointment and qualification; terms of
4 office; powers and duties
5 * * *
6 F. The commission's powers and duties shall include but are not limited to
7 the following:
8 * * *
9 (10) Having the sole and exclusive authority to administer all claims made
10 against the bond required by R.S. 32:791(G), including the denial or rejection of any
11 claim.
12 (a) The executive director of the commission is authorized to take any action
13 necessary to administer and obtain any payment related to the bond, including
14 instituting a legal action to obtain payment related to the bond or to prevent an
15 unauthorized payment related to the bond.
16 (b) If the commission institutes or participates in any legal action as
17 authorized by Subparagraph (a) of this Paragraph, then the commission is entitled to
18 an award of reasonable attorney fees and court costs to be paid by the entity
19 responsible for the nonpayment or unauthorized payment related to the bond.
20 * * *
21 §784. Dealers, dismantlers, and auctions to be licensed; exception
22 A. No person, firm, or corporation, unless licensed by the commission under
23 the provisions of this Chapter, shall carry on or conduct the business of any of the
24 following:
25 * * *
26 (5) A rent-to-own dealer as defined in R.S. 32:793(A)(6) or renting on a
27 daily basis used motor vehicles as authorized by R.S. 32:781(13)(a)(ii).
28 * * *
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1 (7) A used motor vehicle dealer who provides daily rentals of used motor
2 vehicles as defined in R.S. 32:781.
3 (8) A motor vehicle crusher as defined in R.S. 32:781.
4 (9) A used motor vehicle salesperson for any used motor vehicle dealer.
5 * * *
6 §791. Application for license; fee; educational seminar; bond requirements; liability
7 insurance; salesperson's license; location of business
8 * * *
9 B.
10 * * *
11 (3)
12 * * *
13 (b)(i) Every application for the issuance of a used motor vehicle dealer's
14 license shall be accompanied by, or supported by, such evidence as the commission
15 shall prescribe, documenting that the dealership's general manager, office manager,
16 title clerk, or other responsible representative of the dealership has attended a four-
17 hour educational seminar or has registered to attend such seminar within sixty days
18 after issuance of the license. The failure to attend the seminar shall be considered
19 a violation of this Part. The educational seminar shall include but is not limited to
20 the dealer requirements of this Part and the rules promulgated to implement, enforce,
21 and administer this Part. Additionally, the seminar materials shall include a
22 presentation of the requirements of the Department of Public Safety and
23 Corrections, office of motor vehicles, the Department of Revenue, and such other
24 information that will promote good business practices. Such educational seminar
25 requirement shall not include written or oral exams a certificate, as required by the
26 commission pursuant to the provisions of R.S. 32:795, showing that the applicant has
27 completed an approved educational seminar.
28 (ii) The educational seminar shall be designed to develop and present
29 educational programs that enhance the knowledge and competence of used motor
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1 vehicle dealers, their salespersons, and service personnel for the benefit of the public.
2 The commission may approve any nonprofit corporation organized for the purpose
3 of representing licensees of this commission to administer the educational seminar
4 program and may approve any for-profit corporation, association, or other entity that
5 is associated with the used car industry to conduct the seminar and certify
6 completion of the required attendance. However, the commission shall investigate
7 the qualifications of and shall have the authority to approve or deny approval of all
8 entities that desire to conduct an educational seminar for motor vehicle dealer
9 applicants and motor vehicle dealers.
10 (iii) The commission shall approve a uniform document used to certify
11 completion of the seminar and all materials used in conducting the seminar. The
12 commission shall approve all fees charged for materials and attendance to the
13 seminar.
14 (iv) The commission shall promulgate rules to implement this educational
15 seminar program.
16 * * *
17 §792. Denial, revocation, or suspension of license; grounds; unauthorized acts
18 * * *
19 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 of
21 motor vehicles, used motor vehicle auctioneer, or salesperson for any of the
22 following conduct:
23 * * *
24 (16) Violating any provision of this Chapter, any rule or regulation adopted
25 by the commission, or any provision of law relating to the proper disposition of
26 certificates of title or permits to dismantle in connection with the purchase or sale of
27 any used motor vehicle a used motor vehicle transaction between a used motor
28 vehicle dealer and a consumer.
29 * * *
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1 (19) Selling or offering to sell any used motor vehicle when the dealer or
2 salesperson fails to disclose in writing and fails to obtain written acknowledgment
3 from the purchaser that the vehicle has no airbag, has an airbag that is not
4 functioning, or has a counterfeit airbag device when the dealer either knows or
5 should have known of such a defect.
6 (20) Selling a used motor vehicle dealer "as is" or selling a used motor
7 vehicle with a waiver of warranties without completing a buyers guide as required
8 by the Federal Trade Commission.
9 * * *
10 §793. Rent with option-to-purchase program; prohibitions
11 * * *
12 E. A used motor vehicle dealer shall not rent with an option to purchase a
13 used motor vehicle that has a recorded lien on file. The lien shall be removed
14 through the office of motor vehicles prior to placing the used motor vehicle in the
15 rental program. A used motor vehicle dealer shall only rent with an option-to-
16 purchase vehicle which shall be properly titled in the name of the used motor vehicle
17 dealer. It is unlawful and constitutes a violation of this Chapter for a used motor
18 vehicle dealer to rent with an option-to-purchase any used motor vehicle in the
19 following circumstances:
20 (1) When the used motor vehicle is encumbered by a lien.
21 (2) When the used motor vehicle is not properly titled in the name of the
22 used motor vehicle dealer within forty-five days from the dealer's purchase of the
23 vehicle as described in R.S. 32:705.
24 * * *
25 §795. Educational seminars; authority; initial license application seminar; renewal
26 application seminar
27 A. The commission has authority to do all of the following:
28 (1) Require both initial applicants and licensees seeking a renewal of their
29 licenses, pursuant to R.S. 32:791, to attend educational seminars.
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1 (2) Promulgate and adopt any rule for establishing educational seminar
2 curriculum, requiring certain materials to be used, employing any person, and
3 incurring any expense necessary to administer the seminars.
4 (3) Require seminar attendees to complete a test comprised of ten questions
5 approved by the commission and to obtain a minimum score of seventy percent in
6 order to receive credit for satisfactory completion of the seminar.
7 (4) Require that an initial license application seminar shall not exceed six
8 hours in length and require that a renewal application seminar shall not exceed four
9 hours in length.
10 (5) Approve and create a uniform certificate to be issued upon satisfactory
11 completion of an educational seminar.
12 B. Each initial license application shall be accompanied by a certificate
13 issued by the commission, as described in Subsection D of this Section, documenting
14 that the owner, partner, or officer of the dealer applicant has completed an
15 educational seminar. For each initial license application seminar, the seminar shall
16 include materials from the Department of Public Safety and Corrections, office of
17 motor vehicles, the Department of Revenue, and any other information the
18 commission deems necessary to educate attendees and their employees regarding
19 compliance with the law.
20 C. Each licensee seeking to renew his license shall certify that the owner,
21 partner, or officer of the dealer has completed an educational seminar prior to filing
22 the renewal application with the commission. Any renewal application and seminar
23 certification shall be completed during the license period.
24 D.(1) The commission may approve any educational institution, private
25 vocational school, correspondence school, or trade association that meets its
26 requirements to conduct educational seminars as required by this Section.
27 (2) Any educational institution, private vocational school, correspondence
28 school, or trade association approved pursuant to Paragraph (1) of this Subsection
29 shall be reapproved by the commission every two years.
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1 (3) Any educational institution, private vocational school, correspondence
2 school, or trade association administering an educational seminar shall issue the
3 uniform certificate of completion approved by the commission as required by
4 Subsection A of this Section upon an attendee's satisfactory completion of the
5 seminar.
6 E. Failure to satisfactorily complete an educational seminar as required by
7 this Section is considered a violation of this Part.
8 * * *
9 §801. Definition
10 As used in this Part only:
11 "Motor vehicle" means every automobile, motor home, motorcycle,
12 all-terrain vehicle, recreational vehicle trailer, boat trailer, semitrailer, truck,
13 truck-tractor, and any other device which is self-propelled and drawn, in, upon, or
14 by which any person or property is or may be transported or drawn either upon or off
15 a public highway, except such as is moved by animal power, or is used exclusively
16 upon stationary rails or tracks, or is an implement of husbandry any motor-driven
17 vehicle required to be registered that was used, is used, or is designed to be used for
18 the transporting of passengers or goods for public, private, commercial, or for-hire
19 purposes.
20 Section 2. R.S. 32:783(F)(3) and 784(B) are hereby repealed in their entirety.
21 Section 3. This Act shall become effective upon signature by the governor or, if not
22signed by the governor, upon expiration of the time for bills to become law without signature
23by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
24vetoed by the governor and subsequently approved by the legislature, this Act shall become
25effective on the day following such approval.
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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 514 Original 2018 Regular Session Shadoin
Abstract: Provides with respect to various provisions relative to the La. Used Motor
Vehicle Commission.
Present law (R.S. 32:781 et seq.) provides definitions and general provisions relative to the
La. Used Motor Vehicle Commission (hereinafter "commission").
Proposed law retains present law.
Present law defines "motor vehicle" in both R.S. 32:781(5) and 801.
Proposed law amends the definition of "motor vehicle" in both places of present law.
Present law generally provides that present law does not apply to any person, partnership,
corporation, limited liability company, or other entity licensed or regulated by the La. Motor
Vehicle Commission.
Proposed law retains present law.
Proposed law adds a certain purpose of the commission. Provides its purpose is to develop
and advance the independent used motor vehicle industry, promote and stimulate its
businesses, and encourage fair business practices for fair competition. Further provides
ways in which the commission intends to strengthen relationships between dealers and
consumers.
Proposed law adds with respect to the commission's powers and duties. Provides for the
commission's sole and exclusive authority to administer claims made against certain required
bonds and legal actions to obtain payments. Provides the commission's entitlement to an
award of reasonable attorney fees and court costs if the commission institutes or participates
in certain legal action.
Present law prohibits unlicensed persons from carrying on the business of a rent-to-own
dealer as defined in present law or renting on a daily basis used motor vehicles as authorized
by a used motor vehicle dealer.
Proposed law modifies present law relative to the prohibition against unlicensed persons
operating as a used motor vehicle dealer and provides the same prohibition in a new citation
of proposed law (R.S. 32:783(A)(7)).
Proposed law prohibits unlicensed persons from carrying on the business of a motor vehicle
crusher as defined in present law. Further prohibits unlicensed persons from carrying on
the business of a used motor vehicle salesperson for any used motor vehicle dealer.
Present law requires an applicant applying for licensure as a used motor vehicle dealer to
provide certain information prescribed by the commission with respect to certain persons'
attendance at educational seminars. Proposed law modifies present law and adds language
to require an applicant for licensure to include a certificate, as required by the commission
pursuant to the provisions of proposed law (R.S. 32:795), showing the applicant has
completed an approved educational seminar.
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Present law (R.S. 32:791(B)(3)(b)(ii) through (iv)) requires documentation within its
application for licensure that a dealership general manager, office manager, title clerk, or
other responsible representative of the dealership attended a 4-hour educational seminar or
registered to attend such seminar within 60 days after issuance of the license. Provides other
provisions relative to the educational seminar and requirements of the commission.
Present law authorizes the commission to revoke or suspend a license and issue certain fines
or penalties to licensees for violations of present law or any rule or regulation adopted by
the commission, or any provision of law relating to the "proper disposition of certificates of
title or permits to dismantle in connection with the purchase or sale of any used motor
vehicle".
Proposed law deletes the quoted present law language and adds penalties may be assessed
for violations of law concerning a used motor vehicle transaction between a used motor
vehicle dealer and consumer.
Proposed law adds the commission's authority to revoke or suspend a license and issue other
certain penalties, provided in present law, for selling or offering to sell any used motor
vehicle when the dealer or salesperson fails to disclose in writing from the purchaser that the
vehicle has certain defective or missing airbag components.
Proposed law adds the commission's authority to revoke or suspend a license and issue other
certain penalties, provided in present law, for selling a used motor vehicle "as is" or selling
a used motor vehicle with a waiver of warranties without completing a buyers guide as
required by the Federal Trade Commission.
Present law prohibits a used motor vehicle dealer from renting a used motor vehicle with an
option to purchase when the vehicle has a recorded lien on file. Provides other provisions
with respect to clearing the lien to provide for an authorized sale.
Proposed law deletes present law.
Proposed law provides it is unlawful and constitutes a violation of present and proposed law
for a used motor vehicle dealer to rent with an option to purchase any used motor vehicle in
the following circumstances:
(1) When the used motor vehicle is encumbered by a lien.
(2) When the used motor vehicle is not properly titled in the name of the used motor vehicle
dealer within 45 days from the dealer's purchase of the vehicle as described in present law
(R.S. 32:705).
Educational Seminars
Proposed law provides for education seminars and seminar applications. Authorizes the
commission to do all of the following:
(1) Require both initial applicants and licensees seeking license renewal to attend
educational seminars.
(2) Adopt any rule for establishing educational seminar curriculum, requiring certain
materials to be used, employing any person, or incurring any expense necessary to
administer the seminars.
(3) Require seminar attendees' completion of a test comprised of 10 questions approved by
the commission and attainment of a minimum score of 75% to receive credit for satisfactory
completion of the seminar.
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(4) Provide for an initial license application seminar no longer than 6 hours in length and
a renewal application seminar no longer than 4 hours in length.
(5) Approve and create a uniform certificate to be issued upon satisfactory completion of
an educational seminar.
Proposed law requires each initial license application to be accompanied by a certificate
issued by the commission documenting that the owner, partner, or officer of the dealer
applicant has completed an educational seminar. Requires each initial license application
seminar to include materials from the Dept. of Public Safety and Corrections, office of motor
vehicles, the Dept. of Revenue, and any other information the commission deems necessary
to educate attendees and their employees regarding compliance with the law.
Proposed law requires each licensee seeking to renew his license to certify that the owner,
partner, or officer of the dealer has completed an educational seminar prior to filing the
renewal application with the commission. Requires any renewal application and seminar
certification to be completed during the license period.
Proposed law authorizes the commission to approve any educational institution, private
vocational school, correspondence school, or trade association that meets the commission's
requirements to conduct educational seminars. Provides any such school to be reapproved
by the commission every 2 years. Further requires any such school administering an
educational seminar to issue the uniform certificate of completion approved by the
commission upon an attendee's satisfactory completion of the seminar.
Proposed law provides that an attendee's failure to satisfactorily complete an educational
seminar as required is a violation of present and proposed law.
Present law (R.S. 32:783(F)(3)) authorizes the commission's authority to require all dealer
sales to have a condition of sale, such as a warranty disclaimer, implied or written warranty,
or a service contract. Provides for used motor vehicle "as-is" sales and a waiver of all
warranties. Requires certain notice to be provided for claims against such sales.
Proposed law repeals present law.
Present law (R.S. 32:784(B)) provides that a motor vehicle dealer not licensed in accordance
with present law (R.S. 32:1251 et seq.) is subject to regulation of the commission., if such
motor vehicle dealer daily rents motor vehicles that are not current year or immediate prior
year models.
Proposed law repeals present law.
Proposed law repeals present law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 32:781(5), 782, 784(A)(intro. para.) and (5), 791(B)(3)(b), 792(B)(16), 793(E)
and 801; Adds R.S. 32:783(F)(10), 784(A)(7)-(9), 792(B)(19) and (20) and 795; Repeals
R.S. 32:783(F)(3) and 784(B))
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