RÉSUMÉ DIGEST
ACT 435 (HB 514) 2018 Regular Session Shadoin
Existing law (R.S. 32:781 et seq.) provides definitions and general provisions relative to the
La. Used Motor Vehicle Commission (hereinafter "commission").
Prior law (R.S. 32:781(5) and 801) defined "motor vehicle". New law maintains the
statutory references of prior law but amends the definition in both citations.
New 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.
New law adds to the commission's powers and duties. Provides for the commission's sole
and exclusive authority to administer claims made against bonds, including instituting or
intervening in legal actions to obtain payments, or to prevent payment of an unauthorized
claim. Entitles the commission to an award of reasonable attorney fees and court costs if the
commission institutes or intervenes, and prevails, in legal action for claims against bonds.
Existing law prohibits unlicensed persons from carrying on the business of a rent-to-own
dealer or daily renting used motor vehicles as authorized by a used motor vehicle dealer.
New law redesignates a portion of existing law to a new citation. Prohibits unlicensed
persons from carrying on the business of a motor vehicle crusher as defined in existing law.
Prior law (R.S. 32:791(B)(3)(b)(ii) through (iv)) required a dealership's general manager,
office manager, title clerk, or other responsible representative of the dealership to attend a
four-hour educational seminar or register to attend such seminar within 60 days after
issuance of the license. Required such persons to provide documentation pertaining to
education within the application for licensure. Provided other provisions relative to the
educational seminar and requirements of the commission.
New law deletes prior law.
Prior law required an applicant 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.
New law changes prior law by requiring an applicant to include a certificate, pursuant to the
provisions of new law, showing the applicant has completed an approved educational
seminar.
New law adds that provisions of law administered by the La. Motor Vehicle Commission are
not applicable relative to violations pertaining to the La. Used Motor Vehicle Commission.
Prior law authorized the commission to revoke or suspend a license and issue penalties to
licensees for violations 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".
New law deletes the quoted language of prior law and adds that fines or penalties may be
assessed for violations concerning a used motor vehicle transaction between a used motor
vehicle dealer and consumer.
New law adds the commission's authority to revoke or suspend a license and issue other
certain penalties for the sale of a used motor vehicle either with a waiver of warranties or "as
is" if the licensee does not complete and provide to the purchaser a buyers guide if required
by the Federal Trade Commission.
New 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 rules for establishing educational seminar curriculum, require the use of
certain materials, employ any person, or incur 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.
(4)Provide for an initial license application seminar no longer than six hours in length
and a renewal application seminar no longer than four hours in length.
(5)Approve and create a uniform certificate to be issued upon satisfactory completion
of an educational seminar.
New law requires each initial license application to be accompanied by a certificate issued
by the commission documenting that a minimum of one owner, partner, officer, or local
dealership manager of the dealer applicant has completed an educational seminar. Requires
each initial license application seminar to include materials from the 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.
New law requires each licensee seeking license renewal to certify that the owner, partner,
officer, or local dealership manager 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.
New 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 two 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.
New law provides that an attendee's failure to satisfactorily complete an educational seminar
as required is a violation of existing law and new law.
The educational requirements of new law are inapplicable to a licensee who does not sell or
rent used motor vehicles to consumers.
Prior law (R.S. 32:783(F)(3)) authorized the commission to require all dealer sales to have
a condition of sale, such as a warranty disclaimer, implied or written warranty, or a service
contract. Provided for used motor vehicle "as-is" sales and a waiver of all warranties.
Required certain notice to be provided for claims against such sales.
New law repeals prior law.
Prior law (R.S. 32:784(B)) provided that a motor vehicle dealer not licensed in accordance
with existing law (R.S. 32:1251 et seq.) was subject to regulation by the commission, if such
motor vehicle dealer daily rented motor vehicles that were not current year or immediate
prior year models.
New law repeals prior law.
Effective upon signature of governor (May 23, 2018).
(Amends R.S. 32:781(5), 782, 784(A)(intro. para.) and (5), 791(B)(3)(b), 792(B)(16), and
801; Adds R.S. 32:783(F)(10), 784(A)(7) and (8), 792(B)(19), and 795; Repeals R.S.
32:783(F)(3) and 784(B))