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2023 Regular Session
HOUSE BILL NO. 539
BY REPRESENTATIVE MACK
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
MOTOR VEHICLES: Provide relative to the authorization of the office of motor vehicles
to impose fines on contracts
1 AN ACT
2To amend and reenact R.S. 32:702(4) and R.S. 47:532.1(A)(3)(a), 532.2(A)(introductory
3 paragraph) and (B) and to enact R.S. 47.532.1(A)(3)(c), relative to public tag agents;
4 to authorize the office of motor vehicles to impose fines, in addition to other
5 restrictions, on any contracts; to provide for definitions; to provide exceptions to
6 public license tag agent surety bond requirements; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 32:702(4) is hereby amended and reenacted to read as follows:
9 §702. Definitions
10 * * *
11 (4) "Auto title company" means any person, firm, association, or corporation
12 which is engaged primarily in the transfer and recordation of sales, leases, or
13 mortgages of vehicles including but not limited to mobile homes, trailers, and motor
14 vehicles. The term "auto title company" also means any person, firm, association,
15 or corporation, local governmental subdivision, political subdivision, or state agency
16 which has been licensed entered into a contract in accordance with the provisions of
17 R.S. 32:735 et seq. An auto title company shall not mean an insurance company
18 transferring titles to wrecked vehicles, or a licensed motor vehicle dealer, lending
19 institution, financial institution regulated by state or federal authorities, notary,
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HB NO. 539
1 attorney, or individual applicant unless it or he is doing business as an auto title
2 company.
3 Section 2. R.S. 47:532.1(A)(3)(a) and 532.2(A)(introductory paragraph) and (B) are
4hereby amended and reenacted and R.S. 47:532.1(A)(3)(c) is hereby enacted to read as
5follows:
6 §532.1. Public license tag agents; auto title companies; rules and regulations; surety
7 bonds; fees
8 A.
9 * * *
10 (3) The commissioner shall promulgate rules and regulations to require all
11 public license tag agents other than municipal and parish governing authorities to
12 furnish security for the faithful performance of their duties as follows:
13 (a) Each public license tag agent other than a local governmental
14 subdivision, including a municipal governing authority, a political subdivision, or a
15 state agency, shall execute a good and sufficient surety bond with a surety company
16 qualified to do business in Louisiana as surety, in a sum of one hundred thousand
17 dollars should the public tag agent have only one office in this state and in a sum of
18 one hundred twenty-five thousand dollars should the public tag agent have more than
19 one office in this state, if surety bond is available for purchase, which bond shall
20 name the Department of Public Safety and Corrections, office of motor vehicles as
21 obligee and shall be subject to the condition that, if such public license tag agent
22 shall, throughout the entire term of the bond, timely file with the office of motor
23 vehicles all applications delivered to such public tag agent for filing, and all fees and
24 taxes collected by such public license tag agent, the obligation shall be void. If the
25 company does not do so, the obligation of the surety shall remain in full force and
26 effect.
27 * * *
28 (c) The commissioner shall promulgate rules and regulations to adopt and
29 levy fines for violations of R.S. 47:532.1 and R.S. 47:532.2, any rule or regulation
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1 adopted pursuant to R.S. 47:532.1 and R.S. 47:532.2, or of any violation of a contract
2 between the department and the public license tag agent. The administrative fine for
3 each violation of R.S. 47:532.1 and R.S. 47:532.2, any rule or regulation adopted
4 pursuant to R.S. 47:532.1 and R.S. 47:532.2, or of any violation of a contract
5 between the department and the public license tag agent shall not exceed the sum of
6 five hundred dollars.
7 * * *
8 §532.2. Public tag agents; causes for suspension, revocation, cancellation, fines or
9 restrictions; reinstatement
10 A. The office of motor vehicles may suspend, revoke, cancel, impose a fine,
11 or impose other restrictions on any contract confected pursuant to R.S. 47:532.1 for
12 the following causes:
13 * * *
14 B. Any person whose contract has been suspended, canceled, or revoked
15 during the effective term of the contract or who has been assessed a fine pursuant to
16 rules promulgated by the department may request an administrative hearing to
17 review the office of motor vehicles' action. A request for administrative review shall
18 stay the action of the office of motor vehicles.
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 539 Engrossed 2023 Regular Session Mack
Abstract: Authorizes the office of motor vehicles to impose fines in addition to suspension,
revocations, cancellations, or other restrictions on any contract.
Present law defines "auto title company" as any person, firm, association, or corporation
which is engaged in the transfer and recordation of sales, leases, or mortgages of vehicles.
Specifies that the term "auto title company" also means any person, or entity licensed
pursuant to present law. Further specifies that an auto title company does not mean an
insurance company transferring titles to wrecked vehicles or other enumerated parties unless
it or he is doing business as an auto title company.
Proposed law modifies present law by indicating that an "auto title company" also means a
local governmental subdivision, a political subdivision, or a state agency. Changes present
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law from applying to persons or entities who have been licensed to those who entered into
a contract.
Present law requires each public license tag agent, other than a municipal governing
authority, execute a surety bond with a qualified La. surety company in a sum of $100,000
if the public tag agent has only one office in this state and in a sum of $125,000 if the public
tag agent has more than one office in this state.
Present law clarifies that the exception in present law is also applicable to a local
governmental subdivision, a political subdivision, or a state agency.
Present law requires that the commissioner promulgate rules and regulations to adopt and
levy fines for failure to remit taxes and fees collected from applicants for title transfers,
operating as a public tag agent without a contract for each location, with an expired contract,
or without a surety bond on file with the office of motor vehicles (OMV). Further specifies
the OMV is empowered to issue an order to any person engaged in any activity, conduct, or
practice constituting a violation public tag agents; causes for suspension or cease and desist
order; injunctive relief or any rules or regulations adopted pursuant to either.
Proposed law modifies present law by specifying that any violation of a contract between
the department and the public license agent, cannot exceed the sum of $500.
Present law provides requirements for suspension, revocation, cancellation, or restrictions,
and reinstatement of public tag agents.
Proposed law adds fines to present law.
Present law establishes that any person whose contract has been suspended, canceled, or
revoked during the effective term of the contract may request an administrative hearing to
review the actions of the OMV. Specifies that a request for administrative review will stay
the action of the OMV.
Proposed law authorizes an administrative appeal for any public tag agent that has been
assessed a fine pursuant to rules promulgated by the department.
(Amends R.S. 32:702(4) and R.S. 47:532.1(A)(3)(a) and 532.2(A)(intro. para.) and (B);
Adds R.S. 47:532.1(A)(3)(c))
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