HLS 25RS-747 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 623
BY REPRESENTATIVE CARVER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
MOTOR VEHICLES: Provides relative to the Louisiana Motor Vehicle Commission
1 AN ACT
2To amend and reenact R.S. 32:1251, 1252(5)(a), (7)(a) and (b), (8), (12) through (17), (20),
3 (25)(b), (31), (36), (40) through (43), (46), (48), (53), (60), (62), (64), (67), (69),
4 (70), and (73), 1253(A)(introductory paragraph), (3), and (4), (C) through (F), and
5 (H), 1254(A)(introductory paragraph), (12), and (19), (B)(1)(a) and (2), (E)(9)(d) and
6 (10)(a), (F)(7)(introductory paragraph) and (a), (G)(7)(introductory paragraph) and
7 (a), (H)(6)(introductory paragraph) and (a), (L)(8)(introductory paragraph) and (a),
8 and (M), 1255(A)(1), (2), and (5) and (B), 1256.1(A)(1), (C)(2), and (D),
9 1257(A)(2), (B), (C), and (D)(1)(a) through (c), 1258(A)(10) and (E), 1260(F),
10 1261(A)(1)(a)(v), (viii), and (ix), (b) through (e), (h), (i), (k)(i)(cc), (l), (m), (p), (q),
11 (t)(ii) and (iii), (u), (v), (w)(i)(introductory paragraph), and (y), (2)(introductory
12 paragraph), (b), (f)(ii), (iv), and (v), (i), and (k)(i), (3)(e) and (g), (4)(c), and (5)(c),
13 (f)(ii), (h)(introductory paragraph), (i), and (iii), and (B), 1261.1(A), 1261.2,
14 1262(A)(2), (3), (4)(a)(introductory paragraph) and (b), (5), (6)(introductory
15 paragraph), (7), (8)(c), (9)(b) and (c)(iv), and (10) through (14), (B)(1),
16 (2)(introductory paragraph) and (d), (3), (4)(a), (6), and (8), and (C), 1264.1,
17 1264.2(B)(1)(b)(introductory paragraph) and (i)(aa), (bb)(introductory paragraph)
18 and (ii), and (cc), and (C) through (G), 1267(C), 1268(A)(1)(introductory paragraph),
19 (a)(introductory paragraph) and (ii), and (b) through (d), and (2)(a)(introductory
20 paragraph), (b) and (c), (B), and (C)(1) and (4), 1270(A) through (C), (D)(3), and
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1 (E), 1270.1(introductory paragraph)(1)(a)(iv) and (vii), (d), (g), (l), and (n),
2 (2)(introductory paragraph), (b), (f)(iv) and (v), and (i), and (3)(a), 1270.2(A)(1),
3 1270.5(D)(5), and (J), 1270.10(A),(B), and (D)(3), 1270.11(introductory
4 paragraph)(1)(a)(v), (c), (h)(i)(bb) and (cc), (k), and (n) and (2)(introductory
5 paragraph), (b), (f)(iv) and (v), (h), and (i), 1270.16(A), (B)(introductory paragraph),
6 and (H)(1), 1270.17(A)(1)(introductory paragraph) and (c) and (3) and (B),
7 1270.20(introductory paragraph)(1)(k)(i), (o), (p), (u)(i)(aa) through (cc) and (2)(b),
8 (f)(iv) and (v), and (i), 1270.23(A)(1), 1270.28(A)(1), (2)(introductory paragraph),
9 (4), and (8)(a) and (B)(4), (5)(a), and (6), 1270.29(B) and (C)(1) and (4), 1270.34,
10 1270.35(A)(1)(introductory paragraph) and (2)(a)(ii) and (C), 1270.36(B), 1270.40,
11 1270.41, 1274(B)(introductory paragraph) and (C) through (E), R.S. 36:4.1(C)(13)
12 through (15), and R.S. 37:1892(3), 1893(C)(4)(a) and (d) and (D), and 1894, to enact
13 R.S. 32:1253(A)(5) and (I), 1254(A)(20) through (31), 1254(B)(3), 1255(A)(6)
14 through (9), 1260(G) and (H), and Chapter 6-A of Title 32 of the Louisiana Revised
15 Statutes of 1950, to be comprised of R.S. 32:1270.51 through 1270.72, and to repeal
16 R.S. 32:781 through 808 and 1252(9), (61), (63), (65), (66), (68), (71), and (72),
17 relative to the Louisiana Motor Vehicle Commission; to provide for consolidation
18 of laws governing the sale of used motor vehicles into the laws governing the sale
19 of new motor vehicles; to provide for definitions; to provide for language
20 clarification, to repeal the Louisiana Used Motor Vehicle Commission; to provide
21 for transfer of duties and functions; to provide for transfer of property; to provide for
22 transfer of employees; to provide for an effective date; and to provide for related
23 matters.
24Be it enacted by the Legislature of Louisiana:
25 Section 1. R.S. 32:1251, 1252(5)(a), (7)(a) and (b), (8), (12) through (17), (20),
26(25)(b), (31), (36), (40) through (43), (46), (48), (53), (60), (62), (64), (67), (69), (70), and
27(73), 1253(A)(introductory paragraph), (3), and (4), (C) through (F), and (H),
281254(A)(introductory paragraph), (12), and (19), (B)(1)(a) and (2), (E)(9)(d) and (10)(a),
29(F)(7)(introductory paragraph) and (a), (G)(7)(introductory paragraph) and (a),
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1(H)(6)(introductory paragraph) and (a), (L)(8)(introductory paragraph) and (a), and (M),
21255(A)(1), (2), and (5) and (B), 1256.1(A)(1), (C)(2), and (D), 1257(A)(2), (B), (C), and
3(D)(1)(a) through (c), 1258(A)(10) and (E), 1260(F), 1261(A)(1)(a)(v), (viii), and (ix), (b)
4through (e), (h), (i), (k)(i)(cc), (l), (m), (p), (q), (t)(ii) and (iii), (u), (v), (w)(i)(introductory
5paragraph), and (y), (2)(introductory paragraph), (b), (f)(ii), (iv), and (v), (i), and (k)(i),
6(3)(e) and (g), (4)(c), and (5)(c), (f)(ii), (h)(introductory paragraph), (i), and (iii), and (B),
71261.1(A), 1261.2, 1262(A)(2), (3), (4)(a)(introductory paragraph) and (b), (5),
8(6)(introductory paragraph), (7), (8)(c), (9)(b) and (c)(iv), and (10) through (14), (B)(1),
9(2)(introductory paragraph) and (d), (3), (4)(a), (6), and (8), and (C), 1264.1,
101264.2(B)(1)(b)(introductory paragraph) and (i)(aa), (bb)(introductory paragraph) and (ii),
11and (cc), and (C) through (G), 1267(C), 1268(A)(1)(introductory paragraph),
12(a)(introductory paragraph) and (ii), and (b) through (d), and (2)(a)(introductory paragraph),
13(b) and (c), (B), and (C)(1) and (4), 1270(A) through (C), (D)(3), and (E),
141270.1(introductory paragraph)(1)(a)(iv) and (vii), (d), (g), (l), and (n), (2)(introductory
15paragraph), (b), (f)(iv) and (v), and (i), and (3)(a), 1270.2(A)(1), 1270.5(D)(5), and (J),
161270.10(A),(B), and (D)(3), 1270.11(introductory paragraph)(1)(a)(v), (c), (h)(i)(bb) and
17(cc), (k), and (n) and (2)(introductory paragraph), (b), (f)(iv) and (v), (h), and (i),
181270.16(A), (B)(introductory paragraph), and (H)(1), 1270.17(A)(1)(introductory paragraph)
19and (c) and (3) and (B), 1270.20(introductory paragraph)(1)(k)(i), (o), (p), (u)(i)(aa) through
20(cc) and (2)(b), (f)(iv) and (v), and (i), 1270.23(A)(1), 1270.28(A)(1), (2)(introductory
21paragraph), (4), and (8)(a) and (B)(4), (5)(a), and (6), 1270.29(B) and (C)(1) and (4),
221270.34, 1270.35(A)(1)(introductory paragraph) and (2)(a)(ii) and (C), 1270.36(B), 1270.40,
231270.41, 1274(B)(introductory paragraph) and (C) through (E) are hereby amended and
24reenacted and R.S. 32:1253(A)(5) and (I), 1254(A)(20) through (31), 1254(B)(3),
251255(A)(6) through (9), 1260(G) and (H), Chapter 6-A of Title 32 of the Louisiana Revised
26Statutes of 1950, comprised of R.S. 32:1270.51 through 1270.72, are hereby enacted to read
27as follows
28 §1251. D eclaration of public policy
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1 The legislature finds and declares that the distribution and sale of motor
2 vehicles and recreational products in the state of Louisiana vitally affects the general
3 economy of the state, the public interest, and the public welfare, and that in order to
4 promote the public interest, and the public welfare, and in the exercise of its police
5 power, it is necessary to regulate and to license those persons enumerated in R.S.
6 32:1254 and doing business in Louisiana, in order to prevent frauds, impositions, and
7 other abuses upon its citizens, and avoid undue control of the independent motor
8 vehicle dealer and recreational products dealers by their motor vehicle
9 manufacturing and distributive organizations and foster and keep alive vigorous and
10 healthy competition, by prohibiting unfair practices by which fair and honest
11 competition is destroyed or prevented, and to protect the public against the creation
12 or perpetuation of monopolies and practices detrimental to the public welfare, to
13 prevent the practice of requiring the buying, leasing, or renting of special features,
14 appliances, and equipment not desired or requested by the purchaser, lessee, or
15 renter, to prevent false and misleading advertising, to prevent unfair practices by said
16 the licensees, to promote the public safety and prevent disruption of the system of
17 distribution of motor vehicles and recreational products to the public and prevent
18 deterioration of facilities for servicing motor vehicles and keeping same safe and
19 properly functioning, and prevent bankrupting of motor vehicle and recreational
20 products dealers and lessors, who might otherwise be caused to fail because of such
21 unfair practices and competition, thereby resulting in unemployment, disruption of
22 leases, and nonpayment of taxes and loans, and contribute to an inevitable train of
23 undesirable consequences, including economic depression.
24 §1252. Definitions
25 The following words, terms, and phrases, when used in this Chapter, shall
26 have the meanings respectively ascribed to them in this Section, except where the
27 context clearly indicates a different meaning:
28 * * *
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1 (5) "Broker" means a person who, for a fee or commission, arranges or offers
2 to arrange a transaction involving the sale, for purposes other than resale, of a new
3 motor vehicle or recreational product, and who is not:
4 (a) A motor vehicle dealer or recreational products dealer, or bona fide
5 employee of a motor vehicle or recreational products dealer, when acting on behalf
6 of a motor vehicle or recreational products dealer.
7 * * *
8 (7)(a) "Community or territory" or "area of responsibility" shall mean the
9 licensee's area of principal sales and service responsibility as specified by the
10 franchise in effect with any licensee of the commission.
11 (b) The area of responsibility of a licensee shall not be comprised of an area
12 less than the applicable area provided for in Subparagraph (b) of this Paragraph,
13 unless approved by the commission pursuant to the provisions of this Chapter, or if,
14 on August 15, 2001, such the motor vehicle dealer had an effective contractual
15 agreement for a smaller area of responsibility.
16 * * *
17 (8) "Converter" or "secondary manufacturer" means a person who prior to
18 the retail sale of motor vehicles, or trailers, recreational products, or specialty
19 vehicles assembles, installs, or affixes a body, cab, or special equipment to a chassis,
20 or who substantially adds, subtracts from, or modifies a previously assembled or
21 manufactured motor vehicle, or trailer, recreational product, or specialty vehicle, but
22 does not include towable equipment as defined in this Chapter.
23 * * *
24 (12) "Distributor" or "wholesaler" means any person, resident or nonresident,
25 who in whole or in part sells or distributes new motor vehicles, recreational products,
26 or specialty vehicles, or new, remanufactured, reconditioned, or rebuilt motor vehicle
27 motors to motor vehicle, recreational product, or specialty vehicle dealers, or who
28 maintains distributor representatives.
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1 (13) "Distributor branch" means a branch office or facility maintained by a
2 person, resident or nonresident, who in whole or in part sells or distributes new
3 motor vehicles, or recreational products, or specialty vehicles to motor vehicle, or
4 recreational products, specialty vehicle dealers, or for directing or supervising, in
5 whole or in part, its representatives.
6 (14) "Distributor representative" means any officer, agent, or employee
7 employed by a distributor, distributor branch, or wholesaler, for the purpose of
8 making or promoting the sale of his, its, or their motor vehicles, recreational
9 products, or specialty vehicles, or for supervision or contacting his, its, or their motor
10 vehicle, recreational products, or specialty vehicle dealers or prospective motor
11 vehicle, recreational products, or specialty vehicle dealers.
12 (15) "Established place" or "established place of business" shall mean means
13 a permanently enclosed building or structure either owned, leased, or rented, which
14 meets local zoning or municipal requirements, and regularly occupied by a person,
15 easily accessible to the public at which the regular business of a licensee will be
16 carried on in good faith, and, at which place of business shall be kept and maintained
17 the books, records, and files necessary to conduct the business; and shall not mean
18 residences, tents, temporary stands, lots, or any temporary quarters.
19 (16) "Factory branch" means a branch office or facility maintained by a
20 person who fabricates, manufactures, or assembles motor vehicles or recreational
21 products, for the sale of motor vehicles or recreational products to distributors, or for
22 the sale of motor vehicles or recreational products to motor vehicle or recreational
23 products dealers, or for directing or supervising, in whole or in part, its
24 representatives.
25 (17) "Factory representative" means any officer, agent, or employee
26 employed by a person who fabricates, manufactures, or assembles motor vehicles or
27 recreational products, or by a factory branch, for the purpose of making or promoting
28 the sale of his, its, or their motor vehicles or recreational products, or for supervising
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1 or contacting his, its, or their motor vehicle or recreational dealers or prospective
2 motor vehicle or recreational dealers.
3 * * *
4 (20) "Franchise" means any written contract or selling agreement between
5 a motor vehicle or recreational products dealer, a motor vehicle lessor, or a specialty
6 vehicle dealer and a manufacturer, motor vehicle lessor franchisor, or converter of
7 a new motor vehicle, a new recreational product, or specialty vehicle or its
8 distributor or factory branch by which the motor vehicle or recreational products
9 dealer, motor vehicle lessor, or specialty vehicle dealer is authorized to engage in the
10 business of selling or leasing the specific makes, models, or classifications of new
11 motor vehicles, recreational products, or specialty vehicles marketed or leased by the
12 manufacturer or its distributor or factory branch, motor vehicle lessor franchisor, or
13 converter and designated in the franchise agreement or any addendum thereto. For
14 purposes of this Chapter, any written modification, amendment, or addendum to the
15 original franchise agreement, which changes the rights and obligations of the parties
16 to the original franchise agreement, shall constitute a new franchise agreement,
17 effective as of the date of the modification, amendment, or addendum. The term of
18 the franchise shall be no less than one year.
19 * * *
20 (25) "Marine dealer" means any person who holds a bona fide contract or
21 franchise with a manufacturer or distributor of marine products, except for either of
22 the following:
23 * * *
24 (b) A person engaged in the business of renting or selling new or used
25 trolling motors who otherwise would not be required to be licensed as any
26 classification of recreational products dealer in accordance with the provisions of this
27 Chapter.
28 * * *
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1 (31)(a) "Motorcycle or all-terrain vehicle dealer" means any person who, for
2 a commission or with intent to make a profit or gain of money or other thing of
3 value, buys, sells, brokers, exchanges, auctions, offers, or attempts to negotiate a sale
4 or exchange of an interest in motorcycles or all-terrain vehicles and who is engaged
5 wholly or in part in the business of buying and selling motorcycles or all-terrain
6 vehicles in the this state of Louisiana and who holds a license as a recreational
7 products dealer under the provisions of this Chapter.
8 (b) The term shall also include anyone not licensed under this Chapter, who
9 sells motorcycles or all-terrain vehicles and who rents on a daily basis motorcycles
10 or all-terrain vehicles, not of the current year or immediate prior year models, that
11 have been titled previously to an ultimate purchaser.
12 (c) (b) "Motorcycle or all-terrain vehicle dealer" shall does not include any
13 of the following:
14 (i) Receivers, trustees, administrators, executors, guardians, or other persons
15 appointed by or acting under the judgment or order of any court.
16 (ii) Public officers while performing their official duties.
17 (iii) Employees of motorcycle or all-terrain vehicle dealers when engaged
18 in the specific performance of their duties as such employees.
19 (iv) Mortgagees or secured parties as to sales of motorcycles or all-terrain
20 vehicles constituting collateral on a mortgage or security agreement.
21 (v) Insurance companies.
22 (vi)(v) Auctioneers or auction houses who are not engaged in the auction of
23 motorcycles or all-terrain vehicles as the principal part of their business, including
24 but not limited to the following auctions: estate auctions, bankruptcy auctions, farm
25 equipment auctions, or government auctions.
26 * * *
27 (36)(a) "Motor vehicle lessor" shall mean means any person, not excluded
28 by Subparagraph (b) of this Paragraph, engaged in the motor vehicle, recreational
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1 products, or specialty vehicle leasing or rental business. It shall also include a
2 subsidiary of any such entity.
3 (b) The term "motor vehicle lessor" does not include any of the following:
4 (i) Receivers, trustees, administrators, executors, guardians, or other persons
5 appointed by or acting under judgment or order of any court.
6 (ii) Public officers while performing or in the operation of their duties.
7 (iii) Employees of persons, corporations, or associations enumerated in Item
8 (i) of this Subparagraph when engaged in the specific performance of their duties as
9 such employees.
10 (iv) Financial institutions engaged in the leasing of motor vehicles,
11 recreational products, or specialty vehicles.
12 (c) Any motor vehicle lessor who rents on a daily basis motor vehicles,
13 recreational products, or specialty vehicles not of the current year or immediate prior
14 year models that have been titled previously to an ultimate purchaser, and who is
15 otherwise not required to obtain a license under this Chapter, shall be subject to the
16 regulation of the Louisiana Used Motor Vehicle Commission.
17 * * *
18 (40) "New marine product" means a marine product, the legal title to which
19 has never been transferred by a manufacturer, distributor, or recreational products
20 dealer to an ultimate purchaser.
21 (41) "New motorcycle or all-terrain vehicle" means a motorcycle or all-
22 terrain vehicle, the legal title to which has never been transferred by a manufacturer,
23 distributor, or recreational products dealer to an ultimate purchaser.
24 (42) "New motor vehicle", "new recreational product", or "new specialty
25 vehicle" means a motor vehicle, recreational product, or specialty vehicle, the legal
26 title to which has never been transferred by a manufacturer, distributor, or motor
27 vehicle, recreational products, or specialty vehicle dealer to an ultimate purchaser.
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1 (43) "New recreational vehicle" means a recreational vehicle, the legal title
2 to which has never been transferred by a manufacturer, distributor, or recreational
3 products dealer to an ultimate purchaser.
4 * * *
5 (46)(a) "Recreational products dealer" means any person who, for a
6 commission or with intent to make a profit or gain of money or other thing of value,
7 buys, sells, brokers, exchanges, auctions, offers, or attempts to negotiate a sale or
8 exchange of an interest in recreational products and who is engaged wholly or in part
9 in the business of buying and selling recreational products in the this state of
10 Louisiana. Duly franchised and licensed recreational products dealers shall be the
11 only persons entitled to sell, publicly solicit, and advertise the sale of new
12 recreational products.
13 (b) The term shall also include anyone not licensed under this Chapter, who
14 sells recreational products and who rents on a daily basis recreational products, not
15 of the current year or immediate prior year models, that have been titled previously
16 to an ultimate purchaser.
17 (c)(b) "Recreational products dealer" shall does not include any of the
18 following:
19 (i) Receivers, trustees, administrators, executors, guardians, or other persons
20 appointed by or acting under the judgment or order of any court.
21 (ii) Public officers while performing their official duties.
22 (iii) Employees of recreational products dealers when engaged in the specific
23 performance of their duties as such employees.
24 (iv) Mortgagees or secured parties as to sales of recreational products
25 constituting collateral on a mortgage or security agreement.
26 (v) Insurance companies.
27 (vi)(v) Auctioneers or auction houses who are not engaged in the auction of
28 recreational products as the principal part of their business, including but not limited
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1 to the following auctions: estate auctions, bankruptcy auctions, farm equipment
2 auctions, or government auctions.
3 (vii)(vi) Any person engaged in the business of renting or selling new or
4 used trolling motors who otherwise would not be required to be licensed as any
5 classification of dealer pursuant to the provisions of this Title Chapter.
6 * * *
7 (48)(a) "Recreational vehicle dealer" means any person who, for a
8 commission or with intent to make a profit or gain of money or other thing of value,
9 buys, sells, brokers, exchanges, auctions, offers, or attempts to negotiate a sale or
10 exchange of an interest in recreational vehicles and who is engaged wholly or in part
11 in the business of buying and selling recreational vehicles in the this state of
12 Louisiana and who holds a license as a recreational products dealer under the
13 provisions of this Chapter.
14 (b) The term shall also include anyone not licensed under this Chapter, who
15 sells recreational vehicles and who rents on a daily basis recreational vehicles, not
16 of the current year or immediate prior year models, that have been titled previously
17 to an ultimate purchaser.
18 (c)(b) "Recreational vehicle dealer" shall not include any of the following:
19 (i) Receivers, trustees, administrators, executors, guardians, or other persons
20 appointed by or acting under the judgment or order of any court.
21 (ii) Public officers while performing their official duties.
22 (iii) Employees of recreational vehicle dealers when engaged in the specific
23 performance of their duties as such employees.
24 (iv) Mortgagees or secured parties as to sales of recreational vehicles
25 constituting collateral on a mortgage or security agreement.
26 (v) Insurance companies.
27 (vi)(v) Auctioneers or auction houses who are not engaged in the auction of
28 recreational vehicles as the principal part of their business, including but not limited
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1 to the following auctions: estate auctions, bankruptcy auctions, farm equipment
2 auctions, or government auctions.
3 * * *
4 (53) "Specialty vehicle" means a motor vehicle manufactured or converted
5 by a converter or second stage manufacturer by purchasing motor vehicle
6 components, including frames and drive trains, and completing the manufacture or
7 conversion of finished motor vehicles for the purpose of resale, with the primary
8 manufacturer warranty unimpaired, to a limited commercial market rather than the
9 consuming public. Specialty vehicle includes ambulances, fire trucks, garbage
10 trucks, hearses, limousines, school buses, street sweepers, vacuum trucks, wreckers,
11 and other similar limited purpose vehicles. Specialty vehicle does not include motor
12 homes as defined in this Section.
13 * * *
14 (60) "Ultimate purchaser" means, with respect to any new motor vehicle,
15 recreational product, or specialty vehicle, the first person, other than a motor vehicle,
16 recreational products, or specialty vehicle dealer purchasing in his capacity as a
17 dealer, who in good faith purchases such new motor vehicles, recreational products,
18 or specialty vehicles for purposes other than resale. "Ultimate purchaser" shall not
19 include a person who purchases a motor vehicle or recreational product for purposes
20 of altering or remanufacturing the motor vehicle or recreational product for future
21 resale.
22 * * *
23 (62) "Used marine product" means a marine product, the legal title of which
24 has been transferred by a manufacturer, distributor, or recreational products dealer
25 to an ultimate purchaser.
26 * * *
27 (64) "Used motorcycle or all-terrain vehicle" means a motorcycle or all-
28 terrain vehicle, the legal title of which has been transferred by a manufacturer,
29 distributor, or recreational products dealer to an ultimate purchaser.
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1 * * *
2 (67) "Used motor vehicle" means a motor vehicle, recreational product, or
3 specialty vehicle, the legal title of which has been transferred by a manufacturer,
4 distributor, or motor vehicle, recreational products, or specialty vehicle dealer to an
5 ultimate purchaser.
6 * * *
7 (69) "Used motor vehicle facility" means any facility which is owned and
8 operated by a licensee of the commission and offers for sale used motor vehicles,
9 recreational products, or specialty vehicles. licensed motor vehicle dealer,
10 recreational products dealer, motor vehicle lessor, or specialty vehicle dealer at a
11 location other than their licensed motor vehicle dealer, recreational products dealer,
12 motor vehicle lessor, or specialty vehicle dealer location and whose business is to
13 sell, or offer for sale, display, or advertise used motor vehicles, recreational products,
14 or specialty vehicles, or any person who holds a license from the commission and is
15 not excluded by Subparagraph (b) of this Paragraph.
16 (b) "Used motor vehicle facility" does not include any of the following:
17 (i) Receivers, trustees, administrators, executors, guardians, or other persons
18 appointed by or acting under the judgment or order of any court.
19 (ii) Public officers while performing their official duties.
20 (iii) Employees of persons, corporations, or associations enumerated in the
21 definition of "used motor vehicle facility" when engaged in the specific performance
22 of their duties as such employees.
23 (iv) Mortgagees or secured parties as to sales of motor vehicles constituting
24 collateral on a mortgage or security agreement and who do not maintain a used car
25 lot or building with one or more employed motor vehicle salesman.
26 (v) Insurance companies who sell motor vehicles to which they have taken
27 title as an incident of payments made under policies of insurance and who do not
28 maintain a used car lot or building with one or more employed motor vehicle
29 salesman.
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1 (vi) Independent used motor vehicle dealers licensed pursuant to Chapter
2 6-A of this Title.
3 (70) "Used recreational vehicle" means a recreational vehicle, the legal title
4 of which has been transferred by a manufacturer, distributor, or recreational vehicle
5 dealer to an ultimate purchaser.
6 * * *
7 (73) "Vehicle" means any new or used motor vehicle, specialty vehicle, or
8 recreational product subject to regulation by this Chapter.
9 * * *
10 §1253. Motor Vehicle Commission; appointment and qualifications of members;
11 terms of office; organization; oath; official bond; compensation; powers and
12 duties
13 A. The Louisiana Motor Vehicle Commission is hereby created within the
14 office of the governor and shall be composed of eighteen thirty members appointed
15 by the governor, as follows:
16 * * *
17 (3)(a) Each of the three remaining Five appointive members shall be a
18 public member who is not a licensee under this Chapter and shall be appointed from
19 the state at large. These three five commissioners shall have the sole function of
20 hearing and deciding matters concerning brokers and disputes between
21 manufacturers, distributors, converters, motor vehicle lessor franchisors, or
22 representatives and motor vehicle dealers, recreational products dealers, specialty
23 vehicle dealers, motor vehicle lessors, and hearings pursuant to R.S. 32:1270.31 et
24 seq. the following:
25 (i) Brokers.
26 (ii) Manufacturers that do not have motor vehicle or recreational products
27 dealers in this state.
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1 (iii) Disputes between manufacturers, distributors, converters, motor vehicle
2 lessor franchisors, or representatives and motor vehicle dealers, recreational products
3 dealers, specialty vehicle dealers, motor vehicle lessors.
4 (iv) Hearings pursuant to R.S. 32:1270.31 et seq.
5 (b) This function The function of conducting hearings and deciding matters
6 pursuant to Item (i) and (iii) of Subparagraph (a) of this Paragraph shall be
7 performed only when so requested in writing at the time of the filing of the initial
8 protest or initial answer to the protest. If no party requests a hearing before these
9 commissioners, the commissioners appointed pursuant to Paragraph (1) of this
10 Subsection shall retain jurisdiction over the dispute. Should a consumer, broker,
11 manufacturer, distributor, converter, motor vehicle lessor franchisor, representative,
12 motor vehicle lessor, specialty vehicle dealer, recreational product dealer, or motor
13 vehicle dealer make the request as set forth above, the commissioners appointed
14 pursuant to Paragraph (1) of this Subsection shall not participate, deliberate, or in
15 any way take part in the hearing.
16 (c) The three five commissioners shall elect among themselves a chairman
17 to serve as presiding officer of the hearing.
18 (4) Ten appointive members shall meet to implement the provisions of
19 Chapter 6-A of this Title and R.S. 37:1891-1895 and shall be made up of the
20 following:
21 (a) Five members shall be licensed independent used motor vehicle dealers,
22 one selected from each public service commission district.
23 (b) One member shall be a licensed automotive dismantler or parts recycler.
24 (c) Three members shall be consumers selected from the state at large.
25 (d) One member shall be a person licensed to conduct used motor vehicle
26 auctions or salvage pool auctions.
27 (4)(5) Each appointment to the commission by the governor shall be
28 submitted to the Senate for confirmation. Each commissioner shall at the time of
29 appointment be a resident of this state and shall be of good moral character.
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1 * * *
2 C. The chairman and members of said the commission shall receive fifty
3 seventy-five dollars per diem for each and every day necessarily spent in conducting
4 the business of the commission, and shall be reimbursed for actual expenses incurred
5 in the performance of their duties under this Chapter Chapter 6, Chapter 6-A, and
6 Chapter 6-B of this Title, Chapter 10-B of Title 6, and Part II-B of Chapter 21 of
7 Title 37.
8 D. The commission shall appoint a qualified person to serve as executive
9 director thereof, to serve at the pleasure of the commission and shall fix his a salary
10 and shall define and prescribe his the executive director's duties. The executive
11 director shall be in charge of the commission's office and shall devote such time to
12 the duties thereof, as may be necessary. Said The commission may employ such
13 clerical and professional help and incur such expenses as may be necessary for the
14 proper discharge of its duties under this Chapter Chapter 6, Chapter 6-A, and
15 Chapter 6-B of this Title, Chapter 10-B of Title 6, and Part II-B of Chapter 21 of
16 Title 37. The commission shall maintain its primary office and transact its business
17 in Jefferson Parish, and it is authorized to adopt and use a seal. The commission may
18 utilize an additional office in East Baton Rouge Parish.
19 E. The commission is hereby vested with the powers and duties necessary
20 and proper to enable it to fully and effectively carry out the provisions and objects
21 of this Chapter Chapter 6, 6-A, and 6-B of this Title, Chapter 10-B of Title 6, and
22 Part II-B of Chapter 21 of Title 37, and is hereby authorized and empowered to make
23 and enforce all reasonable rules and regulations and to adopt and prescribe all forms
24 necessary to accomplish said the purpose, and the enumeration of any power or
25 authority herein shall not be construed to deny, impair, disparage, or limit any others
26 necessary to the attainment thereof, provided no rule or regulation of the
27 commission, including but not limited to Chapter 7 (Advertising) of Subpart 1 of Part
28 V of Title 46, comprised of LAC 46:V:701 through 741, of the Louisiana
29 Administrative Code, shall prohibit a dealer licensee from making a monetary
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1 donation or contribution that does not directly involve the sale or lease of a motor
2 vehicle in connection with an advertising campaign. A copy of all rules and
3 regulations adopted by the commission shall be published in the Louisiana
4 Administrative Code, as they may be amended, modified, or repealed from time to
5 time.
6 F. All fees and charges under the provisions of this Chapter shall be
7 collected and received by the executive director of the commission and shall be
8 disbursed by him the executive director at the direction of the commission in
9 administering and enforcing the provisions of this Chapter.
10 * * *
11 H. The commission shall, in addition to the powers herein conferred, be
12 constituted a body politic or political corporation, invested with the powers inherent
13 in corporations, including but not limited to the power and authority to own
14 immovable property. It may sue and be sued under the style of the commission, and
15 all process against the commission shall be served on the chairman or executive
16 director in person, and all suits on behalf of the commission shall be brought by the
17 chairman. The domicile for the purpose of being sued under the provisions of
18 Chapter 6 and Chapter 6-B of this Title and Chapter 10-B of Title 6 shall be
19 Jefferson Parish. The domicile for the purpose of being sued under the provisions of
20 Chapter 6-A of this Title and Part II-B of Chapter 21 of Title 37 shall be East Baton
21 Rouge Parish. No member of the commission, or the executive director, shall be
22 subject to suit or be held liable as an individual in any suit against the commission.
23 I. The Commission is vested with the power to issue, serve, and enforce
24 subpoena or subpoena duces tecum pursuant to any hearing or lawful investigation
25 into the suspected misconduct of any licensee or persons suspected of violation of
26 this Chapter.
27 * * *
28 §1254. Application for license; requirements for licensure; contents; licenses;
29 franchise filings; exceptions
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1 A. The following persons shall be licensed by the commission in order to
2 engage in business in the this state of Louisiana, regardless of whether or not said the
3 person maintains or has a place or places of business in this state, and it is a violation
4 of this Chapter to operate without first obtaining a license:
5 * * *
6 (12) Converters or secondary manufacturers or converter or secondary
7 manufacturer branches.
8 * * *
9 (19) Converter or secondary manufacturers or converter or secondary
10 manufacturer representatives.
11 (20) Auto shows, trade shows, and exhibitions, including promoters.
12 (21) Independent used motor vehicle dealer.
13 (22) Dealer of used motor vehicle parts or accessories.
14 (23) Rent-to-own dealer.
15 (24) Dismantler and parts recycler.
16 (25) Public or retail motor vehicle auctions, wholesale motor vehicle
17 auctions, or salvage pools that deal in used motor vehicles.
18 (26) Used motor vehicle salesperson for any dealer licensed pursuant to
19 Chapter 6-A of this Title.
20 (27) Motor vehicle crusher.
21 (28) Scrapped metal processor.
22 (29) Daily rental dealer.
23 (30) Catalytic converter dealer.
24 (31) Vehicle protection product warrantor or warrantor.
25 B. (1)(a) All applications for license or licenses shall be accompanied by the
26 appropriate fee or fees in accordance with the schedule set out in R.S. 32:1255. All
27 such fees shall be nonrefundable. Except as provided in Subparagraph (b) of this
28 Paragraph and Paragraph Paragraphs (2) and (3) of this Subsection, all licenses
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1 issued under the provisions of this Chapter in accordance with the geographical
2 location of the licensee will be for the year beginning and ending as follows:
3 * * *
4 (2) The license of any recreational products dealer shall expire December 31,
5 2010, and the license of any licensee who does not maintain a place of business in
6 this state, vehicle protection warrantor, and used motor vehicle salesperson for any
7 dealer licensed pursuant to Chapter 6-A of this Title shall expire on December thirty-
8 first of each year.
9 (3) The license issued to any independent used motor vehicle dealer, dealer
10 in used parts or used accessories motor vehicles, dismantler and parts recycler,
11 public or retail motor vehicle auctions, wholesale motor vehicle auctions, or salvage
12 pools that deal in used motor vehicles, rent-to-own dealer, used motor vehicle
13 salesperson for any dealer licensed pursuant to Chapter 6-A of this Title, motor
14 vehicle crusher, scrapped metal processor, or daily rental dealer will shall be issued
15 for a term of two years, expiring on December thirty-first and staggering the two
16 year license as follows:
17 (a) District 1 consisting of Bienville, Bossier, Caddo, Claiborne, DeSoto,
18 Jackson, Lincoln, Ouachita, Red River, Union, Webster, and Winn parishes expire
19 December thirty-first, even numbered years.
20 (b) District 2 consisting of Avoyelles, Caldwell, Catahoula, Concordia, East
21 Carroll, East Feliciana, Franklin, Grant, LaSalle, Madison, Morehouse, Natchitoches,
22 Rapides, Richland, Sabine, Tensas, Vernon, West Carroll parishes expire December
23 thirty-first, even numbered years.
24 (c) District 3 consisting of Acadia, Allen, Beauregard, Calcasieu, Cameron,
25 Evangeline, Iberia, Jefferson Davis, Lafayette, St. Landry, St. Martin, St. Mary,
26 Vermillion parishes expire December thirty-first, even numbered years.
27 (d) District 4 consisting of Ascension, East Baton Rouge, Iberville,
28 Livingston, Pointe Coupee, St. Helena, St. Tammany, Tangipahoa, Washington,
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1 West Baton Rouge, West Feliciana parishes expire December thirty-first, odd
2 numbered years.
3 (e) District 5 consisting of Assumption, Jefferson, Lafourche, Orleans,
4 Plaquemines, St. Bernard, St. Charles, St. James, St. John, Terrebonne parishes,
5 expire December thirty-first, odd numbered years.
6 * * *
7 E.
8 * * *
9 (9)
10 * * *
11 (d) Notwithstanding any other provisions of law to the contrary, any motor
12 vehicle or recreational products dealer holding a license hereunder shall not be
13 required to obtain a license as a motor vehicle lessor, used motor vehicle dealer
14 facility, or specialty vehicle dealer or converter, when modifying or selling those
15 vehicles or products he is duly franchised and licensed to sell, provided such
16 operations are conducted from the location from which such motor vehicle or
17 recreational products dealer is licensed to do business.
18 (10)(a) Before any motor vehicle or recreational products dealer license is
19 issued to an applicant under the provisions of this Chapter, a good and sufficient
20 surety bond, executed by the applicant as principal and by a surety company
21 qualified to do business in Louisiana as surety, in the sum of twenty fifty thousand
22 dollars, shall be delivered to the commission.
23 * * *
24 F. Additional licensing and compliance requirements for used motor vehicle
25 facilities operated by new motor vehicle dealers, motor vehicle lessors and specialty
26 vehicle dealers:
27 * * *
28 (7) Applicants for and holders of used motor vehicle dealer facility licenses
29 shall obtain and maintain bonds in accordance with the following provisions:
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1 (a) Before any used motor vehicle dealer facility license is issued to an
2 applicant under in accordance with the provisions of this Chapter, a good and
3 sufficient surety bond, executed by the applicant as principal and by a surety
4 company qualified to do business in Louisiana this state as surety, in the sum of ten
5 thousand dollars, shall be delivered to the commission. If a used motor vehicle dealer
6 operates from more than one location, a bond in the amount of ten fifty thousand
7 dollars shall be required for each location.
8 * * *
9 G.
10 * * *
11 (7) Applicants for and holders of satellite warranty and repair center licenses
12 shall obtain and maintain bonds in accordance with the following provisions:
13 (a) Before any satellite warranty and repair center license is issued to an
14 applicant under in accordance with the provisions of this Chapter, a good and
15 sufficient surety bond, executed by the applicant as principal and by a surety
16 company qualified to do business in Louisiana this state as surety, in the sum of
17 twenty fifty thousand dollars, shall be delivered to the commission.
18 * * *
19 H.
20 * * *
21 (6) Applicants for and holders of broker licenses shall obtain and maintain
22 bonds in accordance with the following provisions:
23 (a) Before any broker license is issued to an applicant under in accordance
24 with the provisions of this Chapter, a good and sufficient surety bond, executed by
25 the applicant as principal and by a surety company qualified to do business in
26 Louisiana this state as surety, in the sum of twenty fifty thousand dollars, shall be
27 delivered to the commission.
28 * * *
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1 L. Additional licensing and compliance requirements for specialty vehicle
2 dealers:
3 * * *
4 (8) Applicants for and holders of specialty vehicle dealer licenses shall
5 obtain and maintain bonds in accordance with the following provisions:
6 (a) Before any specialty vehicle dealer license is issued to an applicant under
7 in accordance with the provisions of this Chapter, a good and sufficient surety bond,
8 executed by the applicant as principal and by a surety company qualified to do
9 business in Louisiana this state as surety, in the sum of twenty fifty thousand dollars,
10 shall be delivered to the commission.
11 * * *
12 M. Additional licensing and compliance requirements for motor vehicle
13 salesmen, motor vehicle lessor agents, converter representatives, factory
14 representatives, and distributor representatives.
15 * * *
16 §1255. Fees; penalties
17 A. To defray the cost of issuing licenses and administering this Chapter, the
18 commission shall fix reasonable fees to be assessed under this Chapter as follows:
19 (1) The license fee for each manufacturer, distributor, converter, motor
20 vehicle lessor franchisor, or wholesaler, and factory branch, or distributor branch, or
21 converter or secondary manufacturer branch shall not exceed one thousand dollars
22 for each year covered by the license.
23 (2) The license fee for each motor vehicle dealer, specialty vehicle dealer,
24 recreational products dealer, motor vehicle lessor, used motor vehicle dealer facility,
25 factory representative, broker, distributor representative, converter or secondary
26 manufacturer representative or lease facilitator shall not exceed three hundred dollars
27 for each year covered by the license.
28 * * *
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1 (5) The license fee for satellite warranty and repair centers shall not exceed
2 three hundred dollars for each year covered by the license.
3 (6) The license fee for each independent used motor vehicle dealer, dealer
4 of used motor vehicle parts or accessories, dismantler and parts recycler, public or
5 retail motor vehicle auctions, wholesale motor vehicle auctions, or salvage pools that
6 deal in used motor vehicles, rent-to-own dealer, motor vehicle crusher, scrap metal
7 processor or daily rental dealer licensed pursuant to Chapter 6-A of this Title, and
8 catalytic converter dealer licensed pursuant to Part II-B of Chapter 21 of Title 37
9 shall not exceed two hundred dollars for each year covered by the license.
10 (7) The license fee for each used motor vehicle salesperson for any dealer
11 licensed pursuant to Chapter 6-A of this Title shall not exceed twenty-five dollars for
12 the year covered by the license.
13 (8) The license fee for each catalytic converter dealer licensed pursuant Part
14 II-B of Chapter 21 of Title 37 shall not exceed two hundred dollars for each year
15 covered by the license.
16 (9) The license fee for each vehicle protection product warrantor or
17 warrantor for each calendar year or part thereof shall not exceed five hundred dollars.
18 B. Any person, firm, or corporation required to be licensed hereunder, who
19 fails to make application for such the license at the time required herein, or as
20 required by the rules and regulations of the commission shall, in addition to the
21 aforesaid fees, pay a penalty of fifty percent of the amount of the license fee in
22 addition to any penalty, fine, or cost assessed for operating without a license which
23 shall be paid to the commission. The penalty, however, may be waived in whole or
24 in part within the discretion of the commission.
25 * * *
26 §1256.1. Regional recreational products or specialty vehicle shows
27 A.(1) Shows where recreational products or specialty vehicles are displayed
28 and promoted for sale are hereby authorized as provided for in this Section, except
29 that no final sale and delivery of a recreational product or specialty vehicle shall
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1 occur at these shows except by recreational or specialty dealers licensed pursuant to
2 this Chapter.
3 * * *
4 C. Nonresident recreational products dealers, specialty vehicle dealers,
5 distributors, manufacturers, or converters who hold a current equivalent license in
6 another state may participate in a regional recreational products or specialty vehicle
7 show in Louisiana this state, if all of the following criteria are satisfied:
8 * * *
9 (2) Louisiana recreational products or specialty vehicle dealers, whose area
10 of responsibility does not include the location of the show, have been given second
11 option on space at the show, provided that the recreational products or specialty
12 vehicle dealers shall not show the same brand of recreational product or specialty
13 vehicle as shown by a participating Louisiana recreational products or specialty
14 vehicle dealer whose area of responsibility includes the location of the show.
15 * * *
16 D. Notwithstanding any provision of law to the contrary, no recreational
17 vehicle dealer, specialty vehicle dealer, distributor, manufacturer, or converter shall
18 participate in any regional recreational product or specialty vehicle show where its
19 product line of recreational vehicles or specialty vehicles is represented by a
20 recreational products or specialty vehicle dealer whose area of responsibility
21 includes the location of the show, whether or not that recreational products or
22 specialty vehicle dealer participates in the show.
23 * * *
24 §1257. Establishment of new motor vehicle dealerships or relocations; protests;
25 procedure
26 A. * * *
27 (2) The reopening or replacement of a motor vehicle dealership in a location
28 where the same line makes, models, or classifications has been sold by a licensed
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1 motor vehicle dealer within the previous two years shall not be considered an
2 additional motor vehicle dealer under Paragraph (1) of this Subsection.
3 B.(1) Whenever the commission receives an application for a motor vehicle
4 dealer's license which would relocate an existing motor vehicle dealership, including
5 the transfer of a franchise and relocation to an existing motor vehicle dealership, it
6 shall first notify the existing licensed motor vehicle dealership or dealerships selling
7 the same line makes, models, or classifications within the community or territory in
8 which the applicant proposes to conduct business. The existing same line makes,
9 models, or classifications motor vehicle dealership or dealerships shall have the right
10 to object to the granting of the license only if the proposed relocation is within a
11 radius of five miles of its facility. However, without regard to distance, whenever the
12 commission receives an application for the relocation of a motor vehicle dealership
13 which would add an additional franchise to an existing same line makes, models, or
14 classifications in motor vehicle dealership's community or territory, the affected
15 motor vehicle dealership shall have the right to object.
16 (2) Whenever the commission receives a protest pursuant to the provisions
17 of Paragraph (1) of this Subsection, the applicant and the manufacturer or distributor
18 shall show, by a preponderance of the evidence, that the existing same line makes,
19 models, or classifications motor vehicle dealership or dealerships will not be
20 substantially harmed by locating the motor vehicle dealership within the five-mile
21 area. Notwithstanding the provisions of R.S. 32:1251 to the contrary, the commission
22 shall consider the financial impact on both the applicant and the existing motor
23 vehicle dealership or dealerships.
24 C. The objection shall be in writing, and shall be received by the commission
25 within a fifteen-day period after receipt of the notice. The fifteen-day objection
26 period shall be waived upon written notification to the commission from all
27 licensees, who are entitled to object, that the licensees have no objections to the
28 proposed change or addition for which the notice of intent was issued. If timely
29 objection is lodged, and prior to the issuance of the license, the commission shall
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1 hold a hearing within thirty days after receipt of the objection, or forty-five days after
2 the request is made for the three-member panel, and issue its decision within ninety
3 days after date of the hearing. Notice of hearing, and an opportunity to participate
4 therein, shall be given to the manufacturer or distributor, to the applicant for the
5 license as a motor vehicle dealer, and to the protesting motor vehicle dealership or
6 dealerships. The absence of a timely protest shall not prevent the commission from
7 considering the effect of the issuance of a license on other motor vehicle dealerships,
8 located either within or outside the community or territory as part of its
9 determination of whether or not the license sought should be issued.
10 D.(1) Whenever the commission receives a protest pursuant to the provisions
11 of this Section, the commission shall consider the following in determining whether
12 there is good cause to issue a license:
13 (a) Whether the community or territory can support an additional motor
14 vehicle dealership.
15 (b) Notwithstanding the provisions of R.S. 32:1251 to the contrary, the
16 financial impact on both the applicant and the existing motor vehicle dealership or
17 dealerships.
18 (c) Whether the existing motor vehicle dealerships of the same line makes,
19 models, or classifications in the motor vehicle dealership's community or territory
20 are providing adequate representation and convenient consumer care for the motor
21 vehicles of the same line makes, models, or classifications located within that area.
22 * * *
23 §1258. Denial, revocation, grounds, imposition of a civil penalty, or suspension of
24 license; grounds; expiration
25 A. The commission may, in addition to imposing a civil penalty pursuant to
26 the provisions of this Chapter, deny an application for a license or revoke or suspend
27 a license after it has been granted for any of the following reasons:
28 * * *
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1 (10) Whenever a marine dealer intentionally removes marine engines from
2 a boat package for the purpose of selling those engines separately in violation of a
3 full-line marine engine dealer's area of responsibility, except that which may be done
4 by a full-line marine dealer of that particular engine as it may be permitted under his
5 full-line franchise agreement.
6 * * *
7 E. All licenses shall be granted or refused within thirty days after application
8 therefor, and shall expire as provided in this Chapter, unless sooner revoked or
9 suspended, except that where a complaint of unfair cancellation of a motor vehicle,
10 specialty vehicle, or recreational products dealer franchise is in process of being
11 heard, no replacement application for such franchise shall be considered until a
12 decision is rendered by the commission.
13 * * *
14 §1260. Penalties; other relief
15 * * *
16 F. In addition to the penalties provided for pursuant to this Chapter, the
17 commission shall have the authority, after compliance with the procedures set forth
18 in this Chapter, to order restitution.
19 G. Upon the failure of any person to comply with any order of the
20 commission issued as a result of a violation of this Chapter Chapter 6 and Chapter
21 6-B of this Title and Chapter 10-B of Title 6, or a rule or regulation adopted by the
22 commission, the commission is authorized to file civil proceedings to enforce its
23 order in the Twenty-Fourth Judicial District Court for the parish of Jefferson by rule
24 to show cause conducted pursuant to the relevant provisions of the Louisiana Code
25 of Civil Procedure. The commission shall be entitled to recover from such party all
26 costs of the proceeding, including but not limited to court costs, discovery costs, and
27 reasonable attorney fees incurred by the commission in enforcing its order.
28 H. Upon the failure of any person to comply with any order of the
29 commission issued as a result of a violation of Chapter 6-A or Part II-B of Chapter
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1 21 of Title 37, the commission is authorized to file civil proceedings to enforce its
2 order in the Nineteenth Judicial District Court for the parish of East Baton Rouge by
3 rule to show cause conducted pursuant to the relevant provisions of the Louisiana
4 Code of Civil Procedure. The commission shall be entitled to recover from the party
5 all costs of the proceeding, including but not limited to court costs, discovery costs,
6 and reasonable attorney fees incurred by the commission in enforcing its order.
7 §1261. Unauthorized acts
8 A. It shall be a violation of this Chapter:
9 (1) For a manufacturer, a distributor, a wholesaler, distributor branch, factory
10 branch, converter or officer, agent, or other representative thereof:
11 (a) To induce or coerce, or attempt to induce or coerce, any licensee:
12 * * *
13 (v) To enter into a franchise with a licensee or during the franchise term, use
14 any written instrument, agreement, release, assignment, novation, estoppel, or
15 waiver, to attempt to nullify or modify any provision of this Chapter, or to require
16 any controversy between a vehicle dealer and a manufacturer to be referred to any
17 person or entity other than the commission, or duly constituted courts of this state or
18 the United States, if such referral would be binding upon the vehicle dealer. Such
19 instruments are null and void, unless done in connection with a settlement agreement
20 to resolve a matter pending a commission hearing or pending litigation.
21 * * *
22 (viii) To adhere to performance standards that are not applied uniformly to
23 other similarly situated motor vehicle dealers or specialty dealers. Any such
24 performance standards shall be fair, reasonable, equitable, and based on accurate
25 information. If motor vehicle or specialty vehicle dealership performance standards
26 are based on a survey, the manufacturer, converter, distributor, wholesaler,
27 distributor branch, or factory branch shall establish the objectivity of the survey
28 process and provide this information to any motor vehicle dealer or specialty vehicle
29 dealer of the same line make covered by the survey request. Each response to a
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1 survey used by a manufacturer in preparing an evaluation or performance-rating of
2 a motor vehicle or specialty vehicle dealer shall be made available to that motor
3 vehicle or specialty vehicle dealer, or it cannot be used by the manufacturer.
4 However, if a customer requests that the manufacturer or distributor not disclose the
5 consumer's identity to the motor vehicle or specialty vehicle dealer, the manufacturer
6 may withhold the consumer's identity in providing the survey response to the motor
7 vehicle or specialty vehicle dealer, and the manufacturer may use the response. Any
8 survey used must have the following characteristics:
9 * * *
10 (ix) To release, convey, or otherwise provide customer information, if to do
11 so is unlawful or if the customer objects in writing. This does not include
12 information that is necessary for the manufacturer to meet its obligations to the
13 vehicle dealer or consumers in regard to contractual responsibilities, vehicle recalls,
14 or other requirements imposed by state or federal law. The manufacturer is further
15 prohibited from providing any consumer information received from the vehicle
16 dealer to any unaffiliated third party.
17 * * *
18 (b) To refuse to deliver to any licensee having a franchise or contractual
19 arrangement for the retail sale of vehicles sold or distributed by such the
20 manufacturer, distributor, wholesaler, distributor branch or factory branch, any motor
21 vehicle, publicly advertised for immediate delivery, within sixty days after such the
22 vehicle dealer's order shall have been received.
23 (c) To threaten to cancel any franchise or any contractual agreement existing
24 between such the manufacturer, distributor, wholesaler, distributor branch or factory
25 branch and said the vehicle dealer for any reason including but not limited to failure
26 to meet performance standards.
27 (d) To unfairly, without just cause and due regard to the equities of such the
28 vehicle dealer, cancel the franchise of any licensee. Failure to meet performance
29 standards based on a survey of sales penetration in a regional, national, territorial,
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1 or other geographic area shall not be the sole cause for cancellation of a franchise.
2 The nonrenewal of a franchise or selling agreement with such the vehicle dealer or
3 his successor without just provocation or cause, or the refusal to approve a qualified
4 transferee or qualified successor to the dealer-operator as provided for in the
5 franchise or selling agreement, or solely for failure to meet performance standards
6 based on a survey of sales penetration in a regional, national, territorial, or other
7 geographic area, shall be deemed an evasion of this Paragraph and shall constitute
8 an unfair cancellation, regardless of the terms or provisions of such the franchise or
9 selling agreement. However, at least ninety-days notice shall be given to the vehicle
10 dealer of any cancellation or nonrenewal of a franchise except for a cancellation
11 arising out of the financial default of the motor vehicle dealer or fraudulent activity
12 of the vehicle dealer principal which results in the conviction of a crime punishable
13 by imprisonment. The provisions of this Subsection relating to performance
14 standards shall not apply to recreational products dealers.
15 (e) To refuse to extend to a licensee the privilege of determining the mode
16 or manner of available transportation facility that such the vehicle dealer desires to
17 be used or employed in making deliveries of vehicles to him or it.
18 * * *
19 (h) To ship or sell motor vehicles, specialty vehicles, or recreational products
20 to a licensee prior to the licensee having been granted a license by the commission
21 to sell such the vehicles.
22 (i) To unreasonably withhold consent to the sale, transfer, or exchange of the
23 franchise to a qualified transferee capable of being licensed as a vehicle dealer in this
24 state, provided the transferee meets the criteria generally applied by the manufacturer
25 in approving new vehicle dealers and agrees to be bound by all the terms and
26 conditions of the standard franchises.
27 * * *
28 (k)(i) To sell or offer to sell a new or unused motor vehicle directly to a
29 consumer except when any one of the following conditions is met:
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1 * * *
2 (cc) Operating in a bona fide relationship in which a person independent of
3 a manufacturer has made a significant investment subject to loss in the vehicle
4 dealership, and can reasonably expect to acquire full ownership of such the motor
5 vehicle dealership on reasonable terms and conditions.
6 * * *
7 (l)(i) To condition the renewal or extension of a franchise on a vehicle
8 dealer's substantial renovation of a facility or premises, if the renovation would be
9 unreasonable under the circumstances.
10 (ii) To require, coerce, or attempt to coerce a vehicle dealer or successor
11 vehicle dealer to construct or substantially alter a facility or premises, if the
12 construction or alteration would be unreasonable under the circumstances.
13 (iii) To require, coerce, or attempt to coerce a vehicle dealer or successor
14 vehicle dealer to construct or substantially alter a facility or premises, if the same
15 area of the facility or premises has been constructed or substantially altered within
16 the last ten years and the construction or alteration was required and approved by the
17 manufacturer as a part of a facility upgrade program, standard, or policy. The
18 provisions of this Subparagraph shall not apply to any construction, alteration, or
19 improvement made to comply with any state or federal health or safety law, a
20 manufacturer's or distributor's health or safety requirement, or to accommodate the
21 technology requirements necessary to sell or to service a motor vehicle. For the
22 purposes of this Subparagraph, "substantially alter" means to perform an alteration
23 that substantially impacts the architectural features, characteristics, or integrity of a
24 structure or lot. The term shall not include routine maintenance reasonably necessary
25 to maintain a dealership in attractive condition or any item directly protected by
26 federal intellectual property rights of the manufacturer.
27 (aa) If a facility upgrade program, standard, or policy under which the
28 vehicle dealer completed a facility construction or substantial alteration does not
29 contain a specific time period during which the manufacturer or distributor shall
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1 provide payments or benefits to a participating vehicle dealer, the manufacturer or
2 distributor shall not deny the participating vehicle dealer any payment or benefit
3 under the terms of the program, standard, or policy as it existed when the vehicle
4 dealer began to perform under the program, standard, or policy for the balance of the
5 ten-year period, regardless of whether the manufacturer's or distributor's program,
6 standard, or policy has been changed or canceled, unless the manufacturer and
7 vehicle dealer agree, in writing, to the change in payment or benefit.
8 (bb) As part of any facility upgrade program, standard, or policy, the
9 manufacturer or distributor shall agree, in writing, to supply the vehicle dealer with
10 an adequate supply and marketable model mix of motor vehicles to meet the sales
11 levels necessary to support the increased overhead incurred by the vehicle dealer by
12 reason of the facility construction or substantial alteration.
13 (iv) To require, coerce, or attempt to coerce a vehicle dealer to purchase
14 facility construction or maintenance goods or services for items not trademarked or
15 otherwise directly protected by federal intellectual property rights of the
16 manufacturer from a vendor that is selected, identified, or designated by a
17 manufacturer, distributor, affiliate, or captive finance source when the vehicle dealer
18 may obtain facility construction or maintenance goods or services for items not
19 trademarked or otherwise directly protected by federal intellectual property rights of
20 the manufacturer of the same quality, material, and design from a vendor selected by
21 the vehicle dealer, provided the vehicle dealer obtains prior approval from the
22 manufacturer, distributor, or affiliate, for the use of the vehicle dealer's selected
23 vendor. The approval by the manufacturer, distributor, or affiliate shall not be
24 unreasonably withheld.
25 (aa) If the manufacturer, distributor, or affiliate does not approve the vendor
26 chosen by the vehicle dealer and claims the vendor cannot supply facility
27 construction or maintenance goods or services for items not trademarked or
28 otherwise directly protected by federal intellectual property rights of the
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1 manufacturer that are the same quality, material, and design, the vehicle dealer may
2 file a protest with the commission.
3 (bb) If a protest is filed, the commission shall promptly inform the
4 manufacturer, distributor, affiliate, or captive finance source that a protest has been
5 filed. The commission shall conduct a hearing on the merits of the protest within
6 ninety days following the filing of a response to the protest. The manufacturer,
7 distributor, or affiliate shall bear the burden of proving that the facility construction
8 or maintenance goods or services for items not trademarked or otherwise directly
9 protected by federal intellectual property rights of the manufacturer chosen by the
10 vehicle dealer are not of the same quality, material, or design to those required by the
11 manufacturer, distributor, or affiliate.
12 (cc) For the purposes of this Subparagraph, "goods" shall include signs or
13 sign components to be purchased or leased by the vehicle dealer that are not
14 trademarked or otherwise directly protected by the federal intellectual property rights
15 of the manufacturer or distributor. The term shall not include moveable displays,
16 brochures, and promotional materials containing material subject to the intellectual
17 property rights of a manufacturer or distributor, special tools as reasonably required
18 by the manufacturer, or parts to be used in repairs under warranty or recall
19 obligations of a manufacturer or distributor.
20 (m) To fail to compensate its vehicle dealers for the work and services they
21 are required to perform in connection with the vehicle dealer's delivery and
22 preparation obligations according to the terms of compensation. The commission
23 shall find the compensation to be reasonable or the manufacturer shall remedy any
24 deficiencies.
25 * * *
26 (p) To unreasonably discriminate among competing, similarly situated,
27 same-line make vehicle dealers in the sales of vehicles, in the availability of such
28 vehicles, in the terms of incentive programs or sales promotion plans, or in other
29 similar programs.
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1 (q) To terminate, cancel, or refuse to continue any franchise agreement based
2 upon the fact that the motor vehicle dealer owns, has an investment in, participates
3 in the management, or holds a franchise agreement for the sale or service of another
4 make or line of new motor vehicles at a different vehicle dealership location, or
5 intends to or has established another make or line of new motor vehicles in the same
6 vehicle dealership facilities of the manufacturer or distributor.
7 * * *
8 (t)
9 * * *
10 (ii) The manufacturer may authorize a fleet owner to perform warranty
11 repairs if the manufacturer determines that the fleet owner has the same basic level
12 of requirements for special tools, technician certification, and training that are
13 required of a franchise vehicle dealer but only those as determined by the
14 manufacturer, in its sole discretion, that are necessary to perform the specified
15 limited type of warranty repairs on the makes and models of motor vehicles for
16 which the fleet owner is authorized to perform warranty repairs.
17 (iii) A manufacturer who authorizes a fleet owner to perform warranty
18 repairs shall give notification of the authorization to the vehicle dealer located in the
19 same area of responsibility where the fleet owner intends to perform the authorized
20 warranty repairs.
21 * * *
22 (u) To make a change in the area of responsibility described in the franchise
23 agreement or sales and service agreement of a vehicle dealer, without the franchisor,
24 converter, or manufacturer giving said the vehicle dealer and the commission no less
25 than sixty days prior written notice by certified or registered mail.
26 (v) To attempt to induce or coerce, or to induce or coerce, any motor vehicle
27 dealer to enter into any agreement with such manufacturer, distributor, wholesaler,
28 distributor branch or factory branch or representative thereof, or to do any other act
29 unfair to said the dealer.
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1 (w)(i) To coerce or attempt to coerce any retail motor vehicle dealer or
2 prospective retail motor vehicle dealer to offer to sell or sell any extended service
3 contract or extended maintenance plan or gap product offered, sold, backed by, or
4 sponsored by the manufacturer or distributor or affiliate or sell, assign, or transfer
5 any retail installment sales contract or lease obtained by the motor vehicle dealer in
6 connection with the sale or lease by him of motor vehicles manufactured or sold by
7 the manufacturer or distributor, to a specified finance company or class of finance
8 companies, leasing company or class of leasing companies, or to any other specified
9 persons by any of the following:
10 * * *
11 (y) To disqualify a manufacturer's sales or service satisfaction survey that
12 pertains to a vehicle dealership employee's personal motor vehicle or specialty
13 vehicle solely because it was mailed or communicated electronically from a
14 dealership.
15 (2) For a motor vehicle dealer, specialty vehicle dealer, recreational product
16 dealer, used motor vehicle dealer facility, or a motor vehicle salesman:
17 * * *
18 (b) To represent and sell as a new vehicle any vehicle, the legal title of which
19 has been transferred by a manufacturer, distributor, or vehicle dealer to an ultimate
20 purchaser.
21 * * *
22 (f) To deliver to a prospective purchaser a new or a used vehicle on a sale
23 conditioned on financing, i.e., a spot delivery, except on the following terms and
24 conditions which shall be in writing and shall be a part of the conditional sales
25 contract or other written notification signed by the purchaser:
26 * * *
27 (ii) That the vehicle being offered for trade-in by the purchaser shall not be
28 sold by the vehicle dealer until the conditional sale is complete.
29 * * *
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1 (iv) That if the conditional sale is not completed, the vehicle dealer shall
2 immediately refund to the purchaser upon return of the vehicle all sums placed with
3 the vehicle dealership as a deposit or any other purpose associated with the attempted
4 sale of the vehicle.
5 (v) That the prospective purchaser shall return the vehicle to the vehicle
6 dealership within forty-eight hours of notification by the vehicle dealer that the
7 conditional sale will not be completed. If the prospective purchaser does not return
8 the vehicle to the vehicle dealership within forty-eight hours of notification by the
9 vehicle dealer, an authorized agent of the vehicle dealer shall have the right to
10 recover the vehicle without the necessity of judicial process, provided that such
11 recovery can be accomplished without unauthorized entry into a closed dwelling,
12 whether locked or unlocked and without a breach of peace.
13 * * *
14 (i) When selling a vehicle to a consumer, to assess any consumer services
15 fees, which shall include fees for treating the interior upholstery of the vehicle, oil
16 changes, roadside assistance, vehicle dealer inspections, or any other service offered
17 by the vehicle dealer, without allowing the buyer to refuse such services and be
18 exempt from payment for such services. The provisions of this Subparagraph shall
19 not apply to vehicle dealer-added options or accessories which are permanently
20 affixed to the vehicle.
21 * * *
22 (k)(i) To fail to disclose to a purchaser in writing on the sales contract,
23 buyer's order, or any other document that the vehicle dealer may be participating in
24 finance charges associated with the sale.
25 * * *
26 (3) For a motor vehicle or recreational product lessor or motor vehicle lessor
27 agent:
28 * * *
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1 (e) To pay a fee to any person in return for the solicitation, procurement, or
2 production by that person of prospective lessees of vehicles, unless the person
3 receiving the fee is a lease facilitator who holds a valid license as provided by this
4 Chapter and a valid appointment from the motor vehicle lessor as provided by R.S.
5 32:1266(B)(1). The fees prohibited by this Subparagraph shall not include amounts
6 paid to a vehicle dealer as part of the consideration for the sale or assignment of a
7 lease or leased vehicle or other amounts paid to the vehicle dealer who transfers the
8 title on the vehicle or assigns the lease contract to the motor vehicle lessor.
9 * * *
10 (g) When leasing a vehicle to a consumer, to assess any consumer services
11 fees, which shall include fees for treating the interior upholstery of the vehicle, oil
12 changes, roadside assistance, vehicle dealer inspections, or any other service offered
13 by the motor vehicle lessor, without allowing the consumer to refuse such services
14 and be exempt from payment for such services. The provisions of this Subparagraph
15 shall not apply to motor vehicle lessor-added options or accessories which are
16 permanently affixed to the vehicle.
17 (4) For a lease facilitator:
18 * * *
19 (c) To accept a fee from a vehicle dealer or consumer.
20 * * *
21 (5) For a broker:
22 * * *
23 (c) To be paid a fee by a vehicle dealer.
24 * * *
25 (f) To fail to execute a written brokering agreement and provide a completed
26 copy to both of the following:
27 * * *
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1 (ii) The selling vehicle dealer. The completed copy shall be provided prior
2 to the selling vehicle dealer's entering into a purchase agreement with the consumer
3 at the time of delivery.
4 * * *
5 (h) To fail to refund any purchase money, including purchase deposits, upon
6 demand by a consumer at any time prior to the consumer's signing a vehicle purchase
7 agreement with a selling vehicle dealer of the vehicle described in the brokering
8 agreement.
9 (i) To fail to cancel a brokering agreement and refund, upon demand, any
10 money paid by a consumer, including any brokerage fee, under any of the following
11 circumstances:
12 * * *
13 (iii) When the brokering agreement expires prior to the customer's being
14 presented with a purchase agreement from a selling vehicle dealer arranged through
15 the brokering vehicle dealer that contains a purchase price at or below the price listed
16 in the brokering agreement.
17 * * *
18 B. The provisions of this Section shall not apply to a marine dealer,
19 manufacturer, distributor, wholesaler, distributor branch, factory branch, or convertor
20 of marine products, motorcycles or all-terrain vehicles, or recreational vehicles, or
21 any officer, agent, or other representative thereof.
22 §1261.1. Indemnification of franchised dealers
23 A. Notwithstanding the terms of any franchise agreement, each manufacturer
24 or converter shall indemnify and hold harmless its franchised motor vehicle dealers
25 against any judgment for damages, including but not limited to court costs and
26 reasonable attorney fees of the motor vehicle dealer, arising out of complaints,
27 claims, or lawsuits including but not limited to strict liability, negligence,
28 misrepresentation, express or implied warranty, or rescission of sale to the extent that
29 the judgment arises out of alleged defective or negligent manufacture, assembly, or
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1 design of motor vehicles, speciality vehicle, recreational product, parts, or
2 accessories, or other functions by the manufacturer of converter, which are beyond
3 the control of the motor vehicle dealer.
4 * * *
5 §1261.2. Payment to motor vehicle dealers; penalties
6 It shall be a violation of this Chapter for a motor vehicle manufacturer,
7 distributor, wholesaler, distributor branch, factory branch, officer, agent or other
8 representative thereof, to fail to pay a motor vehicle dealer all monies due the motor
9 vehicle dealer, except manufacturer hold-back amounts, within thirty days of the date
10 of completion of the transactions or submissions of the claims giving rise to the
11 payments to the motor vehicle dealers. Failure to make payments shall subject the
12 manufacturer, distributor, wholesaler, distribution branch, factory branch, officer,
13 agent, or other representative thereof, to a penalty of the one and one-half percent
14 interest per month, or fraction thereof, until sums due the motor vehicle dealer are
15 fully paid.
16 §1262. Warranty; compensation; audits of dealer records
17 A.
18 * * *
19 (2) It shall be a violation of this Chapter for a manufacturer, a distributor, a
20 wholesaler, distributor branch, or factory branch to fail to adequately and fairly
21 compensate its motor vehicle dealers for labor, parts, and other expenses incurred by
22 such the motor vehicle dealer to perform warranty work and the delivery and
23 preparation obligations imposed on the motor vehicle dealer by a manufacturer,
24 distributor, wholesaler, factory branch, or distributor branch.
25 (3) In no event shall any manufacturer, distributor, wholesaler, factory
26 branch, or distributor branch pay a motor vehicle dealer for warranty work less than
27 the rates charged by the motor vehicle dealer to the retail customer of the motor
28 vehicle dealer for non-warranty qualifying repairs. Time allowances for the
29 performance of warranty work shall be reasonable and adequate in relation to the
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1 nature and scope of the work for a qualified technician of ordinary skill to perform
2 the work.
3 (4)(a) Subject to the provisions of Subparagraph (b) of this Paragraph, the
4 parts mark-up or labor rate customarily charged by the motor vehicle dealer may be
5 established or modified at the election of the motor vehicle dealer by formally
6 submitting in writing, to the representative or pre-designated representative of the
7 manufacturer, distributor, wholesaler, factory branch, or distributor branch, by
8 electronic transmission or tangible delivery, either of the following:
9 * * *
10 (b) A motor vehicle dealer submitting repair orders pursuant to
11 Subparagraph (a) of this Paragraph shall submit the option that produces the fewer
12 number of repair orders, which includes repairs made no more than one hundred
13 eighty days before the submission.
14 (5) The motor vehicle dealer shall calculate the labor rate by determining the
15 total charges for labor from the qualifying repairs submitted and dividing that
16 amount by the total number of hours that produced the total charges. The motor
17 vehicle dealer shall calculate the parts mark-up by determining the total charges for
18 parts from the qualifying repairs submitted, dividing that amount by the total cost of
19 the purchase of such parts, subtracting one from that amount, and multiplying by one
20 hundred to produce a percentage.
21 (6) A motor vehicle dealer seeking to establish or modify the warranty labor
22 rate or parts mark-up shall submit to the manufacturer, distributor, wholesaler,
23 factory branch, or distributor branch either of the following:
24 * * *
25 (7) A motor vehicle dealer may not submit to establish or modify its parts
26 mark-up, labor rate, or both, more than once in a twelve-month period.
27 (8) In calculating the labor rate or parts mark-up, the following shall not be
28 included:
29 * * *
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1 (c) Repairs of vehicles owned by the motor vehicle dealer or an employee.
2 * * *
3 (9)
4 * * *
5 (b) If the manufacturer, distributor, wholesaler, factory branch, or distributor
6 branch determines from any set of qualifying repair orders submitted by the motor
7 vehicle dealer that the parts mark-up, labor rate, or both, calculated in accordance
8 with the provisions of this Subsection, is substantially higher or lower than the rate
9 currently on record with the manufacturer, distributor, wholesaler, factory branch,
10 or distributor branch for labor, parts, or if applicable, both, the manufacturer,
11 distributor, wholesaler, factory branch, or distributor branch may request in writing,
12 within forty-five days of receipt of the submitted parts mark-up or labor rate,
13 additional repair orders for a period of either thirty days prior to or thirty days
14 subsequent to the time for which the repair orders were submitted for purposes of
15 establishing or modifying a rate. The manufacturer, distributor, wholesaler, factory
16 branch, or distributor branch shall have forty-five days from receiving the additional
17 repair orders to rebut the presumption in accordance with the provisions of this
18 Paragraph, provided that any rebuttal utilizing the additional repair orders shall
19 conform to the requirements of Paragraphs (4), (5), and (8) of this Subsection.
20 (c) The manufacturer, distributor, wholesaler, factory branch, or distributor
21 branch may rebut the presumption by doing all of the following:
22 * * *
23 (iv) Producing a proposed adjusted parts mark-up, labor rate, or if applicable,
24 both, based upon the qualified repair orders submitted by the motor vehicle dealer.
25 (10) Subject to the provisions of Paragraph (9) of this Subsection, the
26 manufacturer, distributor, wholesaler, factory branch, or distributor branch shall not
27 submit more than one rebuttal to the motor vehicle dealer and shall not add to,
28 expand, supplement, or otherwise modify any element, including but not limited to
29 any grounds for contesting the parts mark-up or labor rate, except upon the discovery
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1 of relevant information that was not known or could not have been known at the time
2 of issuing the rebuttal.
3 (11) If the motor vehicle dealer and the manufacturer, distributor,
4 wholesaler, factory branch, or distributor branch do not agree on the parts mark-up
5 or labor rate, the motor vehicle dealer may file a protest with the Louisiana Motor
6 Vehicle Commission within sixty days of receiving the manufacturer's rejection and
7 proposal. The commission shall notify the manufacturer, distributor, wholesaler,
8 factory branch, or distributor branch and schedule a hearing. The manufacturer,
9 distributor, wholesaler, factory branch, or distributor branch shall have the burden
10 of proving by a preponderance of the evidence that the motor vehicle dealer's
11 submitted parts mark-up or labor rate was materially inaccurate as described in
12 Paragraph (9) of this Subsection. If the Louisiana Motor Vehicle Commission
13 decides in favor of the motor vehicle dealer, any increase in the motor vehicle
14 dealer's parts mark-up or labor rate shall be effective, retroactively, forty-five days
15 following the manufacturer, distributor, wholesaler, factory branch, or distributor
16 branch's receipt of the original submission.
17 (12) If a manufacturer, distributor, wholesaler, factory branch, or distributor
18 branch furnishes a part to a motor vehicle dealer, at either no cost or a reduced cost,
19 to use in performing warranty work, the manufacturer, distributor, wholesaler,
20 factory branch, or distributor branch shall compensate the motor vehicle dealer for
21 the part in the same manner as warranty parts compensation under this Section by
22 compensating the motor vehicle dealer on the basis of the motor vehicle dealer's
23 mark-up on the cost for the part as listed in the manufacturer, distributor, wholesaler,
24 factory branch, or distributor branch's price schedule, minus the cost for the part.
25 (13) A manufacturer, distributor, wholesaler, factory branch, or distributor
26 branch may not require a motor vehicle dealer to establish the parts mark-up or labor
27 rate customarily charged by the motor vehicle dealer for parts or labor by an unduly
28 burdensome or time-consuming method or by requiring information that is unduly
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1 burdensome or time-consuming to provide, including but not limited to part-by-part
2 or transaction-by-transaction calculations.
3 (14) All claims made by the motor vehicle dealer for compensation under
4 this Subsection shall be paid within thirty days after approval and shall be approved
5 or disapproved within thirty days after receipt. When any claim is disapproved, the
6 motor vehicle dealer shall be notified in writing of the grounds for disapproval.
7 * * *
8 B.(1) Notwithstanding the terms of any franchise agreement, warranty, and
9 sales incentive, audits of motor vehicle dealer records may be conducted by the
10 manufacturer, distributor, distributor branch, or factory branch. Any audit for
11 warranty parts or service compensation shall be for the twelve-month period
12 immediately following the date of the payment of the claim by the manufacturer or
13 distributor. However, a motor vehicle dealer shall not be held liable by virtue of an
14 audit for failure to retain parts for a period in excess of six months. Any audit for
15 sales incentives, service incentives, rebates, or other forms of incentive
16 compensation shall only be for the twelve-month period immediately following the
17 date of the final payment to the motor vehicle dealer under a promotion, event,
18 program, or activity. In no event shall the manufacturer, distributor, distributor
19 branch, or factory branch fail to allow the motor vehicle dealer to make corrections
20 to the sales data in less than one hundred twenty days from the program period.
21 Additionally, no penalty other than amounts advanced on a vehicle reported
22 incorrectly shall be due in connection with the audit. With respect to vehicles sold
23 during the time period subject to the audit, but submitted incorrectly to the
24 manufacturer, distributor, or wholesale distributor branch or factory branch, the
25 motor vehicle dealer shall be charged back for the amount reported incorrectly and
26 credited with the amount due, if anything, on the actual sale date.
27 (2) No claim which has been approved and paid may be charged back to the
28 motor vehicle dealer unless it can be shown that one or all of the following applies:
29 * * *
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1 (d) The motor vehicle dealer failed to reasonably substantiate the repair in
2 accordance with reasonable written requirements of the manufacturer or distributor,
3 if the motor vehicle dealer was notified of the requirements prior to the time the
4 claim arose and if the requirements were in effect at the time the claim arose.
5 (3) A manufacturer or distributor shall not deny a claim solely based on a
6 motor vehicle dealer's incidental failure to comply with a specific claim processing
7 requirement, or a clerical error, or other administrative technicality.
8 (4)(a) A motor vehicle dealer shall not be charged back on a claim when a
9 motor vehicle dealer performs a repair covered by the manufacturer's or distributor's
10 warranty, and the motor vehicle dealer reasonably demonstrates that the repair
11 resolved the condition which the customer presented for resolution, and the motor
12 vehicle dealer documents what has been repaired and the process utilized to
13 accomplish the repair.
14 * * *
15 (6) It shall be deemed an unfair act pursuant to this Chapter to audit a motor
16 vehicle dealer more frequently than two sales-related and two service-related audits
17 in a twelve-month period. Nothing in this Subsection shall limit a manufacturer's or
18 distributor's ability to perform routine claim reviews in the normal course of
19 business.
20 * * *
21 (8) The motor vehicle dealer shall not be charged back for any rebate paid
22 to a consumer pursuant to a manufacturer's rebate program, provided the motor
23 vehicle dealer acted in good faith when relying on the consumer's qualifying
24 information and otherwise complied with the program guidelines and documentation
25 requirements. A manufacturer's rebate program shall include but not be limited to a
26 rebate program that targets college graduates, military personnel, first-time buyers,
27 owner loyalty, family relationships, and any other similar program.
28 C. The provisions of this Section shall not apply to a motor vehicle dealer,
29 manufacturer, distributor, wholesaler, distributor branch, or factory branch of marine
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1 products, motorcycles or all-terrain vehicles, or recreational vehicles, or any officer,
2 agent, or other representative thereof.
3 * * *
4 §1264.1. Notice regarding recalls
5 It shall be a violation of this Chapter for a motor vehicle dealer to sell a new
6 motor vehicle without first supplying a prospective buyer with the following notice:
7 "A new motor vehicle may have been subject to a National Highway Traffic Safety
8 Administration required recall which would be repaired in accordance with
9 manufacturer standards approved by the National Highway Traffic Safety
10 Administration. If such a repair is a concern before you purchase, please ask for a
11 copy of the recall notice, if applicable, to the vehicle being sold." This notice shall
12 be included on the buyer's order in a box and in bold print which is signed by the
13 buyer and the seller or his representative next to the box. If the buyer requests the
14 recall notice, the recall notice shall be included in the sales transaction. If the selling
15 motor vehicle dealer performed the repair, the documents supporting the repair shall
16 also be included in the sales transaction.
17 §1264.2. Recall repairs; compensation
18 * * *
19 B.(1)
20 * * *
21 (b) If parts or a remedy are not reasonably available to perform a recall
22 service or repair on an affected used vehicle held for sale by a motor vehicle dealer
23 authorized to sell and service new motor vehicles of the same line-make or
24 authorized to perform recall work on an affected vehicle within forty-five days of the
25 manufacturer issuing the initial notice of recall, and the manufacturer has issued a
26 stop sale order or do not drive order on the vehicle, the manufacturer shall
27 compensate the motor vehicle dealer at a prorated rate of at least one and one-quarter
28 percent of the value of the vehicle per month.
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1 (i) When a stop sale order or do not drive order has been issued and repair
2 parts or remedy remain unavailable on an affected used vehicle, compensation shall
3 begin forty-five days after either of the following occurrences:
4 (aa) The date on which the stop sale order or do not drive order was provided
5 to the motor vehicle dealer, if the affected used vehicle is in the motor vehicle
6 dealer's inventory at the time the stop sale or do not drive order was issued to the
7 motor vehicle dealer.
8 (bb) The date on which the motor vehicle dealer takes the affected used
9 vehicle into the motor vehicle dealer's inventory as a trade-in incident to the
10 customer's purchase of a new motor vehicle.
11 (ii) Compensation shall cease when one of the following events occurs:
12 * * *
13 (cc) The date the motor vehicle dealer disposes of the affected used vehicle.
14 * * *
15 C.(1) Subject to the audit provisions of R.S. 32:1262, it shall be a violation
16 of this Section for a manufacturer to reduce the amount of compensation otherwise
17 owed to an individual new motor vehicle dealer solely because the new motor
18 vehicle dealer has submitted a claim for reimbursement under this Section. This
19 prohibition shall include reduction through a chargeback, surcharge, removal of the
20 individual motor vehicle dealer from an incentive program, or reduction in amount
21 owed under an incentive program.
22 (2) This Subsection shall not apply to an action by a manufacturer to any
23 prospective change, modification, cancellation, or elimination of any incentive
24 program that is applied uniformly among all motor vehicle dealers of the same
25 line-make in the state.
26 D. Pursuant to the provisions of this Section, all reimbursement claims made
27 by new motor vehicle dealers for recall remedies or repairs, or for compensation
28 where no part or repair is reasonably available and the vehicle is subject to a stop
29 sale order or do not drive order shall be subject to the same limitations and
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1 requirements as a warranty reimbursement claim made under R.S. 32:1262.
2 However, a manufacturer may compensate its franchised motor vehicle dealers under
3 a national recall compensation program provided the compensation under the
4 program is equal to or greater than the compensation provided in Paragraph (B)(1)
5 of this Section or as the manufacturer and motor vehicle dealer otherwise agree.
6 E. A manufacturer may direct the manner and method in which a motor
7 vehicle dealer shall demonstrate the inventory status of an affected used motor
8 vehicle to determine eligibility under this Section, provided such manner and method
9 may not be unduly burdensome and may not require information that is unduly
10 burdensome to provide.
11 F. Nothing in this Section shall require a manufacturer to provide total
12 compensation to a motor vehicle dealer that would exceed the total average trade-in
13 value of an affected used motor vehicle as originally determined in Paragraph (B)(2)
14 of this Section.
15 G. Any remedy provided to a motor vehicle dealer under this Section is
16 exclusive and shall not be combined with any other state or federal recall
17 compensation remedy or other federal law.
18 * * *
19 §1267. Succession; right of first refusal
20 * * *
21 C. The provisions of this Section shall not apply to the succession of any
22 marine dealer, motorcycle or all-terrain vehicle, or recreational vehicle dealer.
23 §1268. Requirements upon termination; penalty; indemnity
24 A.(1) In the event the licensee ceases to engage in the business of being a
25 motor vehicle, recreational products trailer, or specialty vehicle dealer, or ceases to
26 sell a particular make of motor vehicle, recreational product trailer, or specialty
27 vehicle and after notice to the manufacturer, converter, distributor, or representative
28 by certified mail or commercial delivery service with verification of receipt, within
29 thirty days of the receipt of the notice by the manufacturer, converter, distributor, or
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1 representative, the manufacturer, converter, distributor, or representative shall
2 repurchase:
3 (a) All new motor vehicles, recreational products trailers, and or specialty
4 vehicles of the current and last prior model year delivered to the licensee and parts
5 on hand purchased in the ordinary course of business that have not been damaged or
6 substantially altered to the prejudice of the manufacturer while in the possession of
7 the licensee. As to recreational products trailer dealers, the repurchase of parts shall
8 be limited to those listed in the manufacturer's price book. The motor vehicles,
9 recreational products trailers, and specialty vehicles and parts shall be repurchased
10 at the cost to the licensee which shall include without limitation freight and
11 advertising costs, less all allowances paid to the motor vehicle, trailer, or specialty
12 vehicle dealer, except that new automobiles shall be purchased on the schedule as
13 follows:
14 * * *
15 (ii) Vehicles with 1,001 - 6,000 miles at the cost to the licensee reduced by
16 the net discount value of each mile in excess of 1,000 miles, where "net discount
17 value" is determined according to the following formula: cost to the licensee
18 multiplied by total mileage in excess of 1,000 miles divided by 100,000, and where
19 "net cost" equals the motor vehicle dealer cost plus any charges by the manufacturer,
20 distributor, or representative for distribution, delivery, advertising, and taxes, less all
21 allowances paid to the motor vehicle dealer by the manufacturer, distributor, or
22 representative for new, unsold, undamaged, and complete motor vehicles.
23 * * *
24 (b) At fair market value, each undamaged sign owned by the motor vehicle,
25 trailer, or specialty vehicle dealer which bears a trademark or trade name used or
26 claimed by the manufacturer, converter, distributor, or representative if the sign was
27 purchased from or purchased at the request of the manufacturer, distributor, or
28 representative. Fair market value shall be no less than cost of acquisition of the sign
29 by the motor vehicle, trailer, or specialty vehicle dealer.
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1 (c) At fair market value, all special tools and automotive service equipment
2 owned by the motor vehicle, trailer, or specialty vehicle dealer which were
3 recommended in writing and designated as special tools and equipment and
4 purchased in the ordinary course of business from or at the request of the
5 manufacturer, converter, distributor, or representative, if the tools and equipment are
6 in usable and good condition except for reasonable wear and tear. Fair market value
7 shall be no less than cost of acquisition of special tools and automotive service
8 equipment by the motor vehicle, trailer, or specialty vehicle dealer.
9 (d) The manufacturer, converter, distributor, or representative shall pay to
10 the motor vehicle, trailer, or specialty vehicle dealer the costs of transporting,
11 handling, packing, and loading of recreational product trailers, motor and speciality
12 vehicles, or parts, signs, tools, and equipment subject to repurchase.
13 (2)(a) After a motor vehicle dealer terminates his franchise, the manufacturer
14 or converter shall make required repurchases within thirty days after such the motor
15 vehicle dealer has satisfied all of the following conditions:
16 * * *
17 (b) After a specialty vehicle dealer terminates his franchise, the manufacturer
18 or converter shall make required repurchases within thirty days after such the
19 specialty vehicle dealer has submitted to the manufacturer by certified mail, return
20 receipt requested, or commercial delivery service with verification of receipt, a final
21 inventory of vehicles and parts on hand.
22 (c) After a recreational products trailer dealer terminates his franchise, the
23 manufacturer or converter shall make required repurchases within sixty days after
24 such dealer has submitted to the manufacturer by certified mail, return receipt
25 requested, or commercial delivery service with verification of receipt, a final
26 inventory of vehicles and parts on hand. This Subparagraph shall not apply to the
27 repurchase of marine products and related items.
28 B. Failure to make such repurchase without just cause shall subject the
29 manufacturer or converter to a penalty of one and one-half percent per month, or
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1 fraction thereof, of the inventory value or returnable recreational product, specialty
2 and motor vehicles, and parts, signs, special tools, and automotive service
3 equipment, payable to the motor vehicle, trailer, or specialty dealer, as long as the
4 repurchase is not made.
5 C.(1) Upon the involuntary termination, nonrenewal, or cancellation of any
6 franchise by the manufacturer or converter, except for termination, nonrenewal, or
7 cancellation resulting from a felony conviction, notwithstanding the terms of any
8 franchise, whether entered into before or after the enactment of this Chapter or any
9 of its provisions, the new motor vehicle or specialty vehicle dealer shall be allowed
10 fair and reasonable compensation by the manufacturer or converter as agreed by the
11 parties, or lacking agreement, as determined by the commission, for the motor
12 vehicle, trailer, or specialty vehicle dealership facilities if the facilities were required
13 to be purchased or constructed as a precondition to obtaining the franchise or to its
14 renewal; provided that if such facilities were leased and the lease were required as
15 a precondition to obtaining the franchise or to its renewal, then the manufacturer or
16 converter shall be liable for one year's payment of the rent or the remainder of the
17 term of the lease, whichever is less.
18 * * *
19 (4) The obligation of the manufacturer or converter to purchase a motor
20 vehicle, trailer, or specialty vehicle dealership facility, pursuant to this Section, is
21 equally applicable if an entity or person affiliated with the motor vehicle, trailer, or
22 specialty vehicle dealer is the owner or lessor of the facility.
23 * * *
24 §1270. Establishment of new marine dealerships or relocations; protests; procedure
25 A. Whenever the commission receives an application for a recreational
26 products dealer's license that would add a new marine dealership, it shall first notify
27 the existing licensed marine dealership or dealerships selling the same-line makes,
28 models, or classifications if the new marine dealership's proposed location is within
29 the existing marine dealer's area of responsibility. Any same-line makes, models, or
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1 classifications marine dealership whose area of responsibility includes the location
2 of the proposed new marine dealership may object to the granting of the license.
3 B. Whenever the commission receives an application for a recreational
4 products dealer's license which would relocate an existing marine dealership, it shall
5 first notify the existing licensed marine dealership or dealerships selling the same-
6 line makes, models, or classifications if the marine dealership's proposed new
7 location is within the existing marine dealer's area of responsibility. The existing
8 same-line makes, models, or classifications marine dealership or dealerships shall
9 have the right to object to the granting of the license only if the proposed relocation
10 is within a radius of seven miles of its facility. However, without regard to distance,
11 whenever the commission receives an application for the relocation of a marine
12 dealership which would add an additional marine dealership to an existing same-line
13 makes, models, or classifications marine dealership's area of responsibility, the
14 marine affected dealership shall have the right to object.
15 C. The objection shall be in writing and shall be received by the commission
16 within a fifteen-day period after receipt of the notice. The fifteen-day objection
17 period shall be waived upon written notification to the commission from all licensees
18 entitled to object that the licensees have no objections to the proposed change or
19 addition for which the notice of intent was issued. If a timely objection is lodged, and
20 prior to the issuance of the license, the commission shall hold a hearing within thirty
21 days after receipt of the objection and issue its decision within ninety days after date
22 of the hearing. Notice of hearing and an opportunity to participate therein shall be
23 given to the manufacturer or distributor, the applicant for the license as a marine
24 dealer, and to the protesting marine dealership or dealerships.
25 D. Whenever the commission receives an objection pursuant to the
26 provisions of Subsection A of this Section, or whenever the commission receives an
27 objection pursuant to the assignment of the marine dealer's area of principal sales and
28 service responsibility, the commission shall consider the following and may consider
29 any other relevant factors in determining whether there is good cause to approve or
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1 reject the assignment of the marine dealer's area of principal sales and service
2 responsibility, or to issue a license:
3 * * *
4 (3) Whether the existing marine dealerships of the same-line makes, models,
5 or classifications in the marine dealership's area of responsibility are providing
6 adequate representation, competition, and convenient consumer care for the marine
7 products of the same-line makes, models, or classifications located within that area.
8 * * *
9 E. In disputes between the marine dealers and manufacturers and distributors
10 regarding the execution of an agreement that would add a new same-line make
11 marine dealership or would add the same product line regardless of brand name
12 within the area of responsibility of an existing marine dealer, the name brand of the
13 boat determines whether a marine dealer may enter into a franchise for a particular
14 boat package or boat package line. The marine motor, marine engine, boat trailer, or
15 any accessory made a part of a boat package shall not be the subject of, or a
16 consideration in, an area of responsibility dispute for violation involving the boat
17 package.
18 * * *
19 §1270.1. Unauthorized acts; marine products
20 It shall be a violation of this Part:
21 (1) For a manufacturer, a distributor, a wholesaler, distributor branch, or
22 factory branch of marine products or any officer, agent, or other representative
23 thereof:
24 (a) To induce or coerce, or attempt to induce or coerce, any licensee:
25 * * *
26 (iv) To enter into a franchise with a licensee or during the franchise term, use
27 any written instrument, agreement, release, assignment, novation, estoppel, or
28 waiver, to attempt to nullify or modify any provision of this Chapter, or to require
29 any controversy between a marine dealer and a manufacturer to be referred to any
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1 person or entity other than the commission, or duly constituted courts of this state or
2 the United States, if such referral would be binding upon the marine dealer. Such
3 instruments are null and void, unless done in connection with a settlement agreement
4 to resolve a matter pending a commission hearing or pending litigation.
5 * * *
6 (vii) To adhere to performance standards that are not applied uniformly to
7 other similarly situated marine dealers. Any such performance standards shall be fair,
8 reasonable, equitable, and based on accurate information. If marine dealership
9 performance standards are based on a survey, the manufacturer, distributor,
10 wholesaler, distributor branch, or factory branch shall establish the objectivity of the
11 survey process and provide this information to any marine dealer of the same-line
12 make covered by the survey request. Each response to a survey used by a
13 manufacturer in preparing an evaluation or performance-rating of a marine dealer
14 shall be made available to that marine dealer, or it cannot be used by the
15 manufacturer. However, if a customer requests that the manufacturer or distributor
16 not disclose the consumer's identity to the marine dealer, the manufacturer may
17 withhold the consumer's identity in providing the survey response to the marine
18 dealer, and the manufacturer may use the response. Any survey used must have the
19 following characteristics:
20 * * *
21 (d) To unfairly, without just cause and due regard to the equities of the
22 marine dealer, cancel the franchise of the licensee. The nonrenewal of a franchise
23 with a marine dealer or his successor without just provocation or cause, or the refusal
24 to approve a qualified transferee or qualified successor to the dealer-operator as
25 provided for in the selling agreement, shall be deemed a violation of this
26 Subparagraph and shall constitute an unfair cancellation, regardless of the terms or
27 provisions of such franchise. However, at least ninety days notice shall be given to
28 the marine dealer of a cancellation or nonrenewal of a franchise except for a
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1 cancellation arising out of fraudulent activity of the dealer principal which results in
2 the conviction of a crime punishable by imprisonment.
3 * * *
4 (g) To unreasonably withhold consent to the sale, transfer, or exchange of
5 the marine dealership to a qualified transferee capable of being licensed as a marine
6 dealer in this state, provided the transferee meets the criteria generally applied by the
7 manufacturer in approving new marine dealers and agrees to be bound by all the
8 terms and conditions of the standard franchises.
9 * * *
10 (l) To unreasonably discriminate among competing, similarly situated, same-
11 line make marine dealers in the sales of the marine products, in the availability of
12 such marine products, in the terms of incentive programs or sales promotion plans,
13 or in other similar programs.
14 * * *
15 (n) To make a change in the area of responsibility described in the franchise
16 or sales and service agreement of a marine dealer, without the manufacturer or
17 distributor giving the marine dealer and the commission no less than sixty days prior
18 written notice by certified or registered mail.
19 (2) For a marine dealer, used marine product dealer used facility of a marine
20 dealer, marine product salesman:
21 * * *
22 (b) To represent and sell as a new marine product any marine product, the
23 legal title of which has been transferred by a manufacturer, distributor, or marine
24 dealer to an ultimate purchaser.
25 * * *
26 (f) To deliver to a prospective purchaser a new or a used marine product on
27 a sale conditioned on financing, i.e., a spot delivery, except on the following terms
28 and conditions which shall be in writing and shall be a part of the conditional sales
29 contract or other written notification signed by the purchaser:
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1 * * *
2 (iv) That if the conditional sale is not completed, the marine dealer shall
3 immediately refund to the purchaser upon return of the marine product all sums
4 placed with the marine dealership as a deposit or any other purpose associated with
5 the attempted sale of the marine product.
6 (v) That the prospective purchaser shall return the marine product to the
7 marine dealership within forty-eight hours of notification by the marine dealer that
8 the conditional sale will not be completed. If the prospective purchaser does not
9 return the marine product to the marine dealership within forty-eight hours of
10 notification by the marine dealer, an authorized agent of the marine dealer shall have
11 the right to recover the marine product without the necessity of judicial process,
12 provided that such recovery can be accomplished without unauthorized entry into a
13 closed dwelling, whether locked or unlocked and without a breach of peace.
14 * * *
15 (i) When selling a marine product to a consumer, to assess any consumer
16 services fees, which shall include fees for treating the interior upholstery of the
17 marine product, oil changes, roadside assistance, marine dealer inspections, or any
18 other service offered by the marine dealer, without allowing the buyer to refuse such
19 services and be exempt from payment for such services. The provisions of this
20 Subparagraph shall not apply to marine dealer-added options or accessories which
21 are permanently affixed to the marine product.
22 (3)(a) For any person or other licensee to modify a franchise during the term
23 of the agreement or upon its renewal if the modification substantially and adversely
24 affects the marine dealer's rights, obligations, investment, or return on investment
25 without giving a sixty-day written notice of the proposed modification to the licensee
26 and the commission unless the modifications are required by law, court order, or the
27 commission. Within the sixty-day notice period, the licensee may file with the
28 commission a complaint for a determination whether there is good cause for
29 permitting the proposed modification. The party seeking to modify or replace an
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1 agreement shall demonstrate by a preponderance of the evidence that there is good
2 cause for the modification or replacement. The commission shall schedule a hearing
3 within sixty days to decide the matter. Multiple complaints pertaining to the same
4 proposed modifications shall be consolidated for hearing. The proposed modification
5 may not take effect pending the determination of the matter.
6 * * *
7 §1270.2. Warranty; compensation; audits of marine dealer records
8 A.(1) It shall be a violation of this Chapter for a manufacturer, distributor,
9 wholesaler, distributor branch, or factory branch of marine products or any officer,
10 agent or other representative thereof to fail to adequately and fairly compensate its
11 marine dealer for labor, parts, and other expenses incurred by such the marine dealer
12 to perform under and comply with a manufacturer's or a distributor's warranty
13 agreement.
14 * * *
15 §1270.5. Manufacturer, distributor, or wholesaler repurchase; marine dealer;
16 products
17 * * *
18 D. It shall not be unlawful for the marine dealer with due cause and pursuant
19 to the marine dealer's own initiating action to terminate or fail to renew a franchise
20 with a manufacturer, wholesaler, or distributor, and the manufacturer, wholesaler,
21 or distributor shall repurchase inventory as provided pursuant to this Section. To
22 determine what constitutes due cause for a marine dealer to terminate or fail to renew
23 a franchise, the following factors regarding the manufacturer, wholesaler, distributor
24 or representative of one of the so named shall include whether the manufacturer,
25 wholesaler, distributor, or representative of one of the so named:
26 * * *
27 (5) Has been convicted of a crime, the effect of which would be detrimental
28 to the marine dealership or marine dealer.
29 * * *
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1 J. If a marine dealer completes a bona fide, orderly, and permanent closure
2 of the marine dealership, which does not involve a sale of the marine dealership, and
3 provides at least ninety days notice to the manufacturer, wholesaler, distributor, and
4 the commission, the marine products and parts inventory shall be repurchased by the
5 manufacturer, wholesaler, or distributor in the manner provided pursuant to this
6 Section.
7 * * *
8 §1270.10. Establishment of new motorcycle or all-terrain vehicle dealerships or
9 relocations; protests; procedure
10 A. Whenever the commission receives an application for a recreational
11 products dealer's license which would add a new motorcycle or all-terrain vehicle
12 dealership, it shall first notify the existing licensed motorcycle or all-terrain vehicle
13 dealership or dealerships selling the same-line makes, models, or classifications
14 within a thirty-mile radius of the proposed motorcycle or all-terrain vehicle
15 dealership, and such the motorcycle or all-terrain vehicle dealer or dealers may
16 object to the granting of the license.
17 B. Whenever the commission receives an application for a recreation
18 products dealer's license which would relocate an existing motorcycle or all-terrain
19 vehicle dealership, it shall first notify any existing licensed motorcycle or all-terrain
20 vehicle dealership selling the same-line makes, models, or classifications within a
21 thirty-mile radius of the proposed relocation address of a motorcycle or all-terrain
22 vehicle dealership. Any existing same-line makes, models, or classifications
23 motorcycle or all-terrain vehicle dealership shall have the right to object to the
24 granting of the license only if the proposed relocation is within a radius of seven
25 miles of its facility. However, without regard to distance, whenever the commission
26 receives an application for the relocation of a motorcycle or all-terrain vehicle
27 dealership which would add an additional franchise to an existing same-line makes,
28 models, or classifications motorcycle or all-terrain vehicle dealership's area of
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1 responsibility, the affected motorcycle or all-terrain vehicle dealership shall have the
2 right to object.
3 * * *
4 D. Whenever the commission receives an objection pursuant to the
5 provisions of Subsection A of this Section, the commission shall consider the
6 following and may consider any other relevant factors in determining whether there
7 is good cause to issue a license:
8 * * *
9 (3) Whether the existing motorcycle or all-terrain vehicle dealerships of the
10 same-line makes, models, or classifications in the motorcycle or all-terrain vehicle
11 dealership's area of responsibility are providing adequate representation,
12 competition, and convenient consumer care for the motorcycle or all-terrain vehicles
13 of the same-line makes, models, or classifications located within that area.
14 * * *
15 §1270.11. Unauthorized acts
16 It shall be a violation of this Part:
17 (1) For a manufacturer, distributor, wholesaler, distributor branch, factory
18 branch, converter or officer, agent, or other representative thereof:
19 (a) To induce or coerce, or attempt to induce or coerce, any licensee:
20 * * *
21 (v) To enter into a franchise with a licensee or during the franchise term, use
22 any written instrument, agreement, release, assignment, novation, estoppel, or
23 waiver, to attempt to nullify or modify any provision of this Chapter, or to require
24 any controversy between a motorcycle or all-terrain vehicle dealer and a
25 manufacturer to be referred to any person or entity other than the commission, or
26 duly constituted courts of this state or the United States, if such referral would be
27 binding upon the motorcycle or all-terrain vehicle dealer. Such instruments are null
28 and void, unless done in connection with a settlement agreement to resolve a matter
29 pending a commission hearing or pending litigation.
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1 * * *
2 (c) To unfairly, without just cause and due regard to the equities of the
3 motorcycle or all-terrain vehicle dealer, cancel the franchise of the licensee. The
4 nonrenewal of a franchise with such the motorcycle or all-terrain vehicle dealer or
5 his successor without just provocation or cause, or the refusal to approve a qualified
6 transferee or qualified successor to the dealer-operator as provided for in the
7 franchise shall be deemed a violation of this Subparagraph and shall constitute an
8 unfair cancellation, regardless of the terms or provisions of such franchise. However,
9 at least ninety days notice shall be given to the motorcycle or all-terrain vehicle
10 dealer of a cancellation or nonrenewal of franchise except for a cancellation arising
11 out of fraudulent activity of the dealer principal which results in the conviction of a
12 crime punishable by imprisonment.
13 * * *
14 (h)(i) To sell or offer to sell a new or unused motorcycle or all-terrain
15 vehicle directly to a consumer except as provided in this Chapter, or to compete with
16 a licensee in the same-line makes, models, or classifications operating under an
17 agreement or franchise from the aforementioned manufacturer. A manufacturer shall
18 not, however, be deemed to be competing when any one of the following conditions
19 are met:
20 * * *
21 (bb) Operating a bona fide retail motorcycle or all-terrain vehicle dealership
22 which is for sale to any qualified independent person at a fair and reasonable price,
23 not to exceed two years.
24 (cc) Operating in a bona fide relationship in which a person independent of
25 a manufacturer has made a significant investment subject to loss in the motorcycle
26 or all-terrain vehicle dealership, and can reasonably expect to acquire full ownership
27 of such the motorcycle or all-terrain vehicle dealership on reasonable terms and
28 conditions.
29 * * *
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1 (k) To unreasonably discriminate among competing, similarly situated,
2 same-line make motorcycle or all-terrain vehicle dealers in the sales of motorcycles
3 or all-terrain vehicles, in the availability of motorcycles or all-terrain vehicles, in the
4 terms of incentive programs or sales promotion plans, or in other similar programs.
5 * * *
6 (n) To refuse to deliver to any licensee having a franchise or contractual
7 arrangement for the retail sale of motorcycles or all-terrain vehicles sold or
8 distributed by such manufacturer, distributor, wholesaler, distributor branch or
9 factory branch, any motorcycle or all-terrain vehicle, publicly advertised for
10 immediate delivery, within sixty days after such the motorcycle or all-terrain vehicle
11 dealer's order shall have been received.
12 (2) For a motorcycle or all-terrain vehicle dealer, used motorcycle or all-
13 terrain vehicle dealer, used motor vehicle facility of a motorcycle or all-terrain
14 vehicle dealer, or a motorcycle or all-terrain vehicle salesman:
15 * * *
16 (b) To represent and sell as a new motorcycle or all-terrain vehicle any
17 motorcycle or all-terrain vehicle, the legal title of which has been transferred by a
18 manufacturer, distributor, or motorcycle or all-terrain vehicle dealer to an ultimate
19 purchaser.
20 * * *
21 (f) To deliver to a prospective purchaser a new or a used motorcycle or all-
22 terrain vehicle on a sale conditioned on financing, i.e., a spot delivery, except on the
23 following terms and conditions which shall be in writing and shall be a part of the
24 conditional sales contract or other written notification signed by the purchaser:
25 * * *
26 (iv) That if the conditional sale is not completed, the motorcycle or all-
27 terrain vehicle dealer shall immediately refund to the purchaser upon return of the
28 motorcycle or all-terrain vehicle all sums placed with the motorcycle or all-terrain
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1 vehicle dealership as a deposit or any other purpose associated with the attempted
2 sale of the motorcycle or all-terrain vehicle.
3 (v) That the prospective purchaser shall return the motorcycle or all-terrain
4 vehicle to the motorcycle or all-terrain vehicle dealership within forty-eight hours
5 of notification by the motorcycle or all-terrain vehicle dealer that the conditional sale
6 will not be completed. If the prospective purchaser does not return the motorcycle
7 or all-terrain vehicle to the motorcycle or all-terrain vehicle dealership within forty-
8 eight hours of notification by the motorcycle or all-terrain vehicle dealer, an
9 authorized agent of the motorcycle or all-terrain vehicle dealer shall have the right
10 to recover the motorcycle or all-terrain vehicle without the necessity of judicial
11 process, provided that such recovery can be accomplished without unauthorized
12 entry into a closed dwelling, whether locked or unlocked and without a breach of
13 peace.
14 * * *
15 (h) To fail to fully and completely explain each charge listed on a retail
16 buyer's order or motorcycle or all-terrain vehicle invoice prior to the purchase of a
17 motorcycle or all-terrain vehicle.
18 (i) When selling a motorcycle or all-terrain vehicle to a consumer, to assess
19 any consumer services fees, which shall include fees for treating the interior
20 upholstery of the vehicle, oil changes, roadside assistance, motorcycle or all-terrain
21 vehicle dealer inspections, or any other service offered by the motorcycle or all-
22 terrain vehicle dealer, without allowing the buyer to refuse such services and be
23 exempt from payment for such services. The provisions of this Subparagraph shall
24 not apply to motorcycle or all-terrain vehicle dealer-added options or accessories
25 which are permanently affixed to the motorcycle or all-terrain vehicle.
26 * * *
27 §1270.16. Succession; right of first refusal
28 A. The terms of the franchise notwithstanding, any motorcycle or all-terrain
29 vehicle dealer may appoint by will, or other written instrument, a designated
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1 successor to succeed in the ownership interest of the motorcycle or all-terrain vehicle
2 dealer in the motorcycle or all-terrain vehicle dealership upon the death or incapacity
3 of the motorcycle or all-terrain vehicle dealer.
4 B. Unless good cause exists for refusal to honor the succession on the part
5 of the manufacturer or distributor, any designated successor of a deceased or
6 incapacitated motorcycle or all-terrain vehicle dealer of a motorcycle or all-terrain
7 vehicle dealership may succeed to the ownership of the motorcycle or all-terrain
8 vehicle dealership under the existing franchise if:
9 * * *
10 H. If a manufacturer or distributor refuses to honor the succession to the
11 ownership interest of a deceased or incapacitated owner for good cause, then and in
12 such event:
13 (1) The manufacturer or distributor shall allow the designated successor a
14 reasonable period of time which shall not be less than six months in which to
15 consummate a sale of the motorcycle or all-terrain vehicle dealership. Any such sale
16 shall be subject to R.S. 32:1270.11(1)(c).
17 * * *
18 §1270.17. Requirements upon termination; penalty; indemnity; motorcycle or all-
19 terrain vehicle dealers
20 A.(1) In the event the licensee ceases to engage in the business of being a
21 motorcycle dealer or all-terrain vehicle dealer, or ceases to sell a particular make of
22 motorcycle or all-terrain vehicle and after notice to the manufacturer, converter,
23 distributor, or representative by certified mail or commercial delivery service with
24 verification of receipt, within thirty days of the receipt of the notice by the
25 manufacturer, converter, distributor, or representative, the manufacturer, converter,
26 distributor, or representative shall repurchase:
27 * * *
28 (c) At fair market value, all special tools and service equipment owned by
29 the motorcycle dealer or all-terrain vehicle dealer which were recommended in
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1 writing and designated as special tools and equipment and purchased from or
2 purchased at the request of the manufacturer, converter, distributor, or representative,
3 if the tools and equipment are in usable and good condition except for reasonable
4 wear and tear. Fair market value shall be no less than cost of acquisition of special
5 tools and service equipment by the motorcycle dealer or all-terrain vehicle dealer.
6 * * *
7 (3) The manufacturer or converter shall make the required repurchase after
8 the motorcycle or all-terrain vehicle dealer terminates his franchise and within sixty
9 days of the submission to it, by certified mail, return receipt requested, or
10 commercial delivery service with verification of receipt, of a final inventory of
11 motorcycles, all-terrain vehicles, and parts on hand.
12 B. Failure to make the repurchase without just cause shall subject the
13 manufacturer or converter to a penalty of one and one-half percent per month, or
14 fraction thereof, of the inventory value or returnable motorcycles or all-terrain
15 vehicles, and parts, signs, special tools, and service equipment, payable to the
16 motorcycle or all-terrain vehicle dealer, as long as the repurchase is not made.
17 * * *
18 §1270.20. Unauthorized acts; recreational vehicles
19 It shall be a violation of this Chapter:
20 (1) For a manufacturer, a distributor, a wholesaler, factory branch, or officer,
21 agent, or other representative thereof:
22 * * *
23 (k)(i) To sell or offer to sell a new or unused recreational vehicle directly to
24 a consumer except as provided in this Chapter, or to compete with a licensee in the
25 same-line makes, models, or classifications operating under an agreement or
26 franchise from the aforementioned manufacturer. A manufacturer shall not, however,
27 be deemed to be competing when any one of the following conditions are met:
28 (aa) Operating a recreational vehicle dealership temporarily for a reasonable
29 period, not to exceed two years.
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1 (bb) Operating a bona fide retail recreational vehicle dealership which is for
2 sale to any qualified independent person at a fair and reasonable price, not to exceed
3 two years.
4 (cc) Operating in a bona fide relationship in which a person independent of
5 a manufacturer has made a significant investment subject to loss in the recreational
6 vehicle dealership, and can reasonably expect to acquire full ownership of such
7 dealership on reasonable terms and conditions.
8 * * *
9 (o) To unreasonably discriminate among competing, similarly situated,
10 same-line make recreational vehicle dealers in the sales of recreational vehicles, in
11 the availability of such recreational vehicles, in the terms of incentive programs or
12 sales promotion plans, or in other similar programs.
13 (p) To terminate, cancel, or refuse to continue any franchise agreement based
14 upon the fact that the recreational vehicle dealer owns, has an investment in,
15 participates in the management of, or holds a franchise agreement for the sale or
16 service of another make or line of new recreational vehicles at a different
17 recreational vehicle dealership location, or intends to or has established another
18 make or line of new recreational vehicles in the same recreational vehicle dealership
19 facilities of the manufacturer or distributor.
20 * * *
21 (u)(i) To coerce or attempt to coerce any retail recreational vehicle dealer or
22 prospective retail recreational vehicle dealer to offer to sell or sell any extended
23 service contract or extended maintenance plan or gap product offered, sold, backed
24 by, or sponsored by the manufacturer or distributor or affiliate or sell, assign, or
25 transfer any retail installment sales contract or lease obtained by the recreational
26 vehicle dealer in connection with the sale or lease by him of recreational vehicles
27 manufactured or sold by the manufacturer or distributor, to a specified finance
28 company or class of finance companies, leasing company or class of leasing
29 companies, or to any other specified persons by any of the following:
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1 (aa) By any statement, promise, or threat that the manufacturer or distributor
2 will in any manner benefit or injure the recreational vehicle dealer, whether the
3 statement, suggestion, threat, or promise is express or implied or made directly or
4 indirectly.
5 (bb) By any act that will benefit or injure the recreational vehicle dealer.
6 (cc) By any contract, or any express or implied offer of contract, made
7 directly or indirectly to the recreational vehicle dealer, for handling the recreational
8 vehicle on the condition that the recreational vehicle dealer shall offer to sell or sell
9 any extended service contract or extended maintenance plan offered, sold, backed
10 by, or sponsored by the manufacturer or distributor or that the recreational vehicle
11 dealer sell, assign, or transfer his retail installment sales contract on or lease of the
12 recreational vehicle, to a specified finance company or class of finance companies,
13 leasing company or class of leasing companies, or to any other specified person.
14 * * *
15 (2) For a recreational vehicle dealer or a recreational vehicle salesman:
16 * * *
17 (b) To represent and sell as a new recreational vehicle any vehicle, the legal
18 title of which has been transferred by a manufacturer, distributor, or recreational
19 vehicle dealer to an ultimate purchaser.
20 * * *
21 (f) To deliver to a prospective purchaser a new recreational vehicle on a sale
22 conditioned on financing, i.e., a spot delivery, except on the following terms and
23 conditions which shall be in writing and shall be a part of the conditional sales
24 contract or other written notification signed by the purchaser:
25 * * *
26 (iv) That if the conditional sale is not completed, the recreational vehicle
27 dealer shall immediately refund to the purchaser upon return of the recreational
28 vehicle all sums placed with the recreational vehicle dealership as a deposit or any
29 other purpose associated with the attempted sale of the vehicle.
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1 (v) That the prospective purchaser shall return the recreational vehicle to the
2 recreational vehicle dealership within forty-eight hours of notification by the
3 recreational vehicle dealer that the conditional sale will not be completed. If the
4 prospective purchaser does not return the recreational vehicle to the recreational
5 vehicle dealership within forty-eight hours of notification by the recreational vehicle
6 dealer, an authorized agent of the recreational vehicle dealer shall have the right to
7 recover the recreational vehicle without the necessity of judicial process, provided
8 that such recovery can be accomplished without unauthorized entry into a closed
9 dwelling, whether locked or unlocked, and without a breach of peace.
10 * * *
11 (i) When selling a recreational vehicle to a consumer, to assess any consumer
12 services fees, which shall include fees for treating the interior upholstery of the
13 recreational vehicle, oil changes, roadside assistance, recreational vehicle dealer
14 inspections, or any other service offered by the recreational vehicle dealer, without
15 allowing the buyer to refuse such services and be exempt from payment for such
16 services. The provisions of this Subparagraph shall not apply to recreational vehicle
17 dealer-added options or accessories which are permanently affixed to the recreational
18 vehicle.
19 * * *
20 §1270.23. Warranty; compensation; audits of recreational vehicle dealer records
21 A.(1) It shall be a violation of this Chapter for a manufacturer, a distributor,
22 a wholesaler, or factory branch, or officer, agent or other representative thereof, to
23 fail to adequately and fairly compensate its recreational vehicle dealers for labor,
24 parts, and other expenses incurred by such the recreational vehicle dealer to perform
25 under and comply with a manufacturer's or a distributor's warranty agreement.
26 * * *
27 §1270.28. Succession; right of first refusal; recreational vehicle dealer
28 A.(1) The terms of the franchise notwithstanding, any recreational vehicle
29 dealer may appoint by will, or other written instrument, a designated successor to
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1 succeed in the ownership interest of the recreational vehicle dealer in the recreational
2 vehicle dealership upon the death or incapacity of the recreational vehicle dealer.
3 (2) Unless good cause exists for refusal to honor the succession on the part
4 of the manufacturer or distributor, any designated successor of a deceased or
5 incapacitated recreational vehicle dealer of a recreational vehicle dealership may
6 succeed to the ownership of the recreational vehicle dealership under the existing
7 franchise if:
8 * * *
9 (4) If a manufacturer or distributor believes that good cause exists for
10 refusing to honor the succession of a deceased or incapacitated recreational vehicle
11 dealer, the manufacturer or distributor may, not more than sixty days following
12 receipt of notice of the designated successor's intent to succeed and receipt of such
13 personal or financial data, serve upon the designated successor notice of its refusal
14 to honor the succession and of its intent to discontinue the existing franchise with the
15 recreational vehicle dealer not earlier than six months from the date such notice is
16 served.
17 * * *
18 (8) If a manufacturer or distributor refuses to honor the succession to the
19 ownership interest of a deceased or incapacitated owner for good cause, then and in
20 such event:
21 (a) The manufacturer or distributor shall allow the designated successor a
22 reasonable period of time which shall not be less than six months in which to
23 consummate a sale of the recreational vehicle dealership. Any such sale shall be
24 subject to R.S. 32:1270.20(1)(d).
25 * * *
26 B. In the event of a proposed sale or transfer of a recreational vehicle
27 dealership and if the franchise agreement has a right of first refusal in favor of the
28 manufacturer or distributor, then, notwithstanding the terms of the franchise
29 agreement, the manufacturer or distributor shall be permitted to exercise a right of
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1 first refusal to acquire the recreational vehicle dealer's assets or ownership if all of
2 the following requirements are met:
3 * * *
4 (4) The proposed sale or transfer of the recreational vehicle dealership's
5 assets does not involve the transfer or sale to a member or members of the family of
6 one or more recreational vehicle dealers, or to a qualified manager with at least two
7 years management experience at the recreational vehicle dealership of one or more
8 of these recreational vehicle dealers, or to a partnership or corporation controlled by
9 such persons.
10 (5)(a) The manufacturer or distributor agrees to pay the reasonable expenses,
11 including attorney fees which do not exceed the usual, customary, and reasonable
12 fees charged for similar work done for other clients, incurred by the proposed owner
13 or transferee prior to the manufacturer's or distributor's exercise of its right of first
14 refusal in negotiating and implementing the contract for the proposed sale or transfer
15 of the recreational vehicle dealership or dealership assets. Such expenses and
16 attorney fees shall be paid to the proposed new owner or transferee at the time of
17 closing of the sale or transfer for which the manufacturer or distributor exercised its
18 right of first refusal.
19 * * *
20 (6) The recreational vehicle dealer shall not have any liability to any person
21 as a result of a manufacturer's exercising its right of first refusal and the
22 manufacturer or distributor shall assume the defense of the selling recreational
23 vehicle dealer for any claim by the proposed owner or transferee arising from the
24 exercise of the right of first refusal.
25 §1270.29. Requirements upon termination; penalty; indemnity; recreational vehicles
26 * * *
27 B. Failure to make the repurchase without just cause shall subject the
28 manufacturer or converter to a penalty of one and one-half percent per month, or
29 fraction thereof, of the inventory value or returnable recreational vehicles, and parts,
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1 signs, special tools, and service equipment, payable to the recreational vehicle dealer,
2 as long as the repurchase is not made.
3 C.(1) Upon the involuntary termination, nonrenewal, or cancellation of any
4 franchise by the manufacturer or converter, except for termination, nonrenewal, or
5 cancellation resulting from a felony conviction, notwithstanding the terms of any
6 franchise, whether entered into before or after the enactment of this Chapter or any
7 of its provisions, the new recreational vehicle dealer shall be allowed fair and
8 reasonable compensation by the manufacturer or converter as agreed by the parties,
9 or lacking agreement, as determined by the commission, for the recreational vehicle
10 dealership facilities if the facilities were required to be purchased or constructed as
11 a precondition to obtaining the franchise or to its renewal; provided that if such
12 facilities were leased and the lease was required as a precondition to obtaining the
13 franchise or to its renewal, then the manufacturer shall be liable for one year's
14 payment of the rent or the remainder of the term of the lease, whichever is less.
15 * * *
16 (4) The obligation of the manufacturer or converter to purchase a
17 recreational vehicle dealership facility, pursuant to this Section, is equally applicable
18 if an entity or person affiliated with the recreational vehicle dealer is the owner or
19 lessor of the facility.
20 * * *
21 §1270.34. Manufacturer's duty to repair; nonconformity
22 If a new recreational vehicle does not conform to the manufacturer's express
23 warranty, and the consumer reports the nonconformity to the manufacturer, or any
24 of its authorized recreational vehicle dealers, and makes the recreational vehicle
25 available for repair before the expiration of the warranty, or not later than one year
26 after the date of original delivery of the recreational vehicle to the consumer, the
27 manufacturer, its agent, or its authorized recreational vehicle dealer shall make
28 repairs that are necessary to conform the vehicle to the manufacturer's express
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1 warranty, notwithstanding the fact that the repairs are made after the expiration of
2 the warranty term or the one-year period.
3 §1270.35. Express warranties; time limit to conform
4 A.(1) It shall be presumed that a reasonable number of attempts have been
5 undertaken to conform a recreational vehicle to the applicable express warranty if
6 the vehicle is out of service by reason of repair for a cumulative total of ninety or
7 more calendar days, or the same nonconformity has been subject to repair four or
8 more times by the manufacturer, its agent, or its authorized recreational vehicle
9 dealer, within the warranty term, or not later than one year from the date of original
10 delivery of the new recreational vehicle to the consumer.
11 (2)(a) Notwithstanding the provisions of Paragraph (1) of this Subsection,
12 the consumer shall provide written notification of the need to repair the
13 nonconformity to the manufacturer and the commission, and either of the following:
14 * * *
15 (ii) Evidence that the same nonconformity has been subject to repair four or
16 more times by the manufacturer, its agent, or its authorized recreational vehicle
17 dealer, within the warranty term, or not later than a period of one year from the date
18 of original delivery of the new recreational vehicle to the consumer.
19 * * *
20 C. The provisions of Subsection A of this Section shall be suspended for any
21 period of time during which repair services cannot be performed by the
22 manufacturer, its agents, or authorized recreational vehicle dealer, because of war,
23 pandemic, invasion, strike, fire, flood, or natural disaster.
24 §1270.36. Recreational vehicle replacement or refund
25 * * *
26 B. A reasonable allowance for use by the consumer shall be determined by
27 the commission and shall be that amount directly attributable to use by the consumer
28 prior to his first written notice of a nonconformity to the manufacturer, agent, or
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1 recreational vehicle dealer, and during any subsequent period when the vehicle was
2 not out of service by reason of repair.
3 * * *
4 §1270.40. Notification of nonconformity remedy; recreational vehicle dealer
5 responsibility
6 Prior to or during the delivery of the recreational vehicle to the consumer, the
7 recreational vehicle dealer shall inform the consumer in writing of the remedy for a
8 nonconformity defect as provided in this Part.
9 §1270.41. Exclusiveness
10 This Part provides exclusive remedies, warranties, and peremptive periods
11 as between the manufacturer, recreational vehicle dealer, and consumer, relative to
12 nonconformity defects as defined in this Part, and no other provisions of law relative
13 to recreational vehicle warranties and redhibitory vices and defects shall apply.
14 Nothing herein shall be construed to affect or limit any warranty of title.
15 * * *
16 CHAPTER 6-A. USED MOTOR VEHICLES, PARTS, AND ACCESSORIES
17PART I. GENERAL PROVISIONS
18 §1270.51. Short title
19 This Chapter shall be known and cited as the "Louisiana Used Motor
20 Vehicles, Parts, and Accessories Act".
21 §1270.52. Definitions
22 As used in this Chapter:
23 (1) "Commission" means the Louisiana Motor Vehicle Commission created
24 by Chapter 6 of this Title or its designee.
25 (2) "Dismantler and parts recycler" means a person, firm, or corporation
26 engaged in whole or in part in the business of acquiring and dismantling,
27 disassembling, or repairing wrecked, abandoned, or repairable motor vehicles or
28 selling the usable parts thereof, or selling such wrecked, abandoned, or repairable
29 motor vehicles as a unit of wholesale, or selling such repaired motor vehicles as a
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1 unit at wholesale. For purposes of this Chapter, a person, firm, or corporation shall
2 be presumed to be engaging in the business of a dismantler and parts recycler if such
3 person, firm, or corporation possesses ten or more inoperable motor vehicles for
4 more than thirty days, except when such inoperable motor vehicles are being held:
5 (a) By a licensed tow truck owner or operator.
6 (b) By a scrap metal processor to recycle the scrap metal.
7 (c) By a bona fide repair business awaiting repairs.
8 (3) "Dismantler and parts recycler sales representative" shall include anyone
9 who, for compensation of any kind, sells or brokers any used motor vehicle or any
10 usable part of a used motor vehicle.
11 (4) "Motor vehicle" means any motor-driven vehicle required to be
12 registered that was used, is used, or is designed to be used for the transporting of
13 passengers or goods for public, private, commercial, or for-hire purposes.
14 (5) "Motor vehicle crusher" means any person, firm, limited liability
15 corporation, or corporation engaged in whole or in part in the business of purchasing
16 and crushing or compacting motor vehicles and selling the crushed or compacted
17 vehicle for scrap.
18 (6) "Place of business" means the place owned or leased and regularly
19 occupied by a person, partnership, corporation, limited liability company, or other
20 entity licensed under the provisions of this Chapter for the principal purpose of
21 auctioning, renting, or selling used motor vehicles, crushing or compacting used
22 motor vehicles and selling the crushed or compacted vehicle for scrap, or engaging
23 in the business of a dismantler and parts recycler, where the products for sale are
24 displayed and offered for sale, and where the books and records required for the
25 conduct of the business are maintained and kept.
26 (7) "Public or retail motor vehicle auction" means the act of any person,
27 partnership, corporation, limited liability company, or other entity engaging in, for
28 a commission, compensation, or other consideration, the business of providing
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1 vehicle auction services at an established place of business which is not open
2 exclusively to motor vehicle dealers, dismantlers, and parts recyclers.
3 (8) "Salvage pool" or "salvage disposal sale" means a scheduled sale at
4 auction or by private bid of wrecked or repairable motor vehicles by insurance
5 companies, by used motor vehicle dealers, or automotive dismantlers and parts
6 recyclers licensed by the commission.
7 (9) "Scrap metal processor" means any person or entity engaged in the
8 business of obtaining and storing scrap metal, as defined by R.S. 37:1962, whose
9 origin included abandoned, wrecked, or junked motor vehicles for recycling.
10 (10) "Ultimate purchaser" means the first person or corporate entity, other
11 than a dealer purchasing in his capacity as a dealer, who in good faith purchases a
12 new motor vehicle for purposes other than resale. "Ultimate purchaser" shall not
13 include a person who purchases a vehicle for purposes of altering or remanufacturing
14 the motor vehicle for future resale.
15 (11) "Used fire truck" means any motorized vehicle, the legal title of which
16 has been transferred by a manufacturer, distributor, or dealer to an ultimate
17 purchaser, utilized by a fire department in transporting firefighters or equipment to
18 fires and emergency calls and supports extinguishing operations such as water,
19 pumps, ladders, special service apparatus, hoses, foam, air, lights, rescue equipment,
20 and utility equipment.
21 (12) "Used motor vehicle" means a motor vehicle, which has been previously
22 titled to an ultimate purchaser as defined in R.S. 32:1252.
23 (13)(a)(i) "Used motor vehicle dealer" means any person, partnership,
24 corporation, limited liability company, or other entity who, for a commission or with
25 intent to make a profit or gain of money or other thing of value, buys, sells, brokers,
26 exchanges, rents with option to purchase, auctions at retail or public, offers, or
27 attempts to negotiate a sale or exchange of an interest in used motor vehicles and
28 who is engaged wholly or in part in the business of buying and selling used motor
29 vehicles, whether such motor vehicles are owned by such person and whether the
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1 motor vehicles are sold from a dealership location or via any form of advertising,
2 including but not limited to the Internet. A person shall be presumed to be engaged
3 in the business of selling used motor vehicles if he sells five or more used motor
4 vehicles in any twelve-month period which vehicles are not registered to and insured
5 by members of the individual's household, immediate family members, or legal
6 entities in which the individual has an ownership interest or which employ the
7 individual. An entity shall be presumed to be engaged in the business of selling used
8 motor vehicles if the entity sells five or more used motor vehicles which are not
9 registered to and insured by the entity or by an entity affiliated with the entity
10 receiving anything of value.
11 (ii) The term shall also include anyone not licensed pursuant to Chapter 6 of
12 Title 32 who sells used motor vehicles and who rents on a daily basis used motor
13 vehicles.
14 (b) "Used motor vehicle dealer" shall not include any of the following:
15 (i) Receivers, trustees, administrators, executors, guardians, or other persons
16 appointed by or acting under the judgment or order of any court.
17 (ii) Public officers while performing their official duties.
18 (iii) Employees of persons enumerated in the definition of "used motor
19 vehicle dealer" when engaged in the specific performance of their duties as such
20 employees.
21 (iv) Mortgagees or secured parties as to sales of motor vehicles constituting
22 collateral on a mortgage or security agreement.
23 (v) Insurance companies.
24 (vi) Auctioneers or auction houses who are not engaged in the auction of
25 used motor vehicles as the principal part of their business, including but not limited
26 to estate auctions, bankruptcy auctions, farm equipment auctions, or government
27 auctions.
28 (14) "Used motor vehicle salesperson" shall include anyone who is actively
29 engaged in the sale, offering for sale, or negotiations to sell a used motor vehicle,
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1 including those engaged in management or finance and insurance, and who for
2 compensation of any kind operates as a broker or is compensated for any referral of
3 a prospective buyer to a used motor vehicle dealer. "Compensation" for purposes of
4 this Chapter means any thing of value including money, merchandise, rebates on
5 purchases, trading stamps, or any other thing of value.
6 (15) "Used wrecker" means a truck, the legal title of which has been
7 transferred, by a manufacturer, distributor, or dealer to an ultimate purchaser, with
8 a hoist and towing apparatus used in towing wrecked or disabled vehicles.
9 (16) "Water-damaged vehicle" means any motor vehicle whose power train,
10 computer, or electrical system has been damaged by flooding.
11 (17) "Wholesale motor vehicle auction" means the act of any person,
12 partnership, corporation, limited liability company, or other entity engaging in, for
13 a commission, compensation, or other consideration, the business of providing
14 wholesale vehicle auction services at an established place of business which is open
15 exclusively to licensed motor vehicle dealers, dismantlers, and parts recyclers.
16 §1270.53. Duties of the commission
17 A. The commission's powers and duties shall include but are not limited to
18 the following:
19 (1) Licensing independent used motor vehicle dealers and salespersons,
20 motor vehicle crushers, dealers of used motor vehicle parts and accessories,
21 rent-to-own dealers, scrap metal processors, wholesale motor vehicle auctions, public
22 or retail motor vehicle auctions, salvage pools that deal in used motor vehicles,
23 dismantlers and parts recyclers, and catalytic converter dealer pursuant to Part II-B
24 of Chapter 21 of Title 37.
25 (2) Inspecting license applicants and licensee locations to ensure that they
26 are in an approved location, meet local zoning or other municipal requirements, and
27 have sufficient facilities which shall include but not be limited to a business sign, a
28 listed and usable telephone number, and a sales office.
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1 (3) Requiring all licensees to maintain their records for a period of three
2 years and to keep their records, vehicles, and places of business open to inspection
3 by any peace officer or agent of the Department of Public Safety and Corrections or
4 of the commission during reasonable hours. The records shall include bills of sale,
5 financing or mortgage records, and monthly sales reports.
6 (4) Holding and conducting hearings on appeals of license, denials,
7 violations, revoking or suspending licenses, imposing civil penalties, assessing
8 restitution, issuing cease and desist orders, and seeking injuctions pursuant to this
9 Chapter.
10 (5)(a) Taking possession of certificates of title and further distributing those
11 titles to the rightful owners pursuant to R.S. 32:705 from:
12 (i) An independent used motor vehicle dealer who failed or refused to
13 provide a certificate of title to his customer or to the rightful owners in accordance
14 with R.S. 32:705.
15 (ii) An independent used motor vehicle dealer who has ceased doing
16 business and who has failed to provide a certificate of title to his customer or to the
17 rightful owners in accordance with R.S. 32:705.
18 (iii) A floor plan financier or other similar holder of a security interest
19 relative to a used motor vehicle who has failed or refused to provide a certificate of
20 title to a bona fide retail purchaser in actual good faith in accordance with R.S.
21 32:710(D).
22 (b)(i) The executive director of the commission is empowered to take any
23 and all actions necessary to obtain and deliver a certificate of title to a retail
24 purchaser in actual good faith including instituting or participating in any legal
25 action to obtain a certificate of title and endorsing a certificate of title on behalf of
26 any independent used motor vehicle dealer who either refuses or is unavailable to
27 sign or endorse the certificate of title.
28 (ii) If the commission institutes or participates in legal action to obtain a
29 certificate of title for delivery to a retail purchaser in actual good faith, the
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1 commission is entitled to an award of reasonable attorney fees and court costs to be
2 paid by the individual or entity responsible for delivery of the certificate of title.
3 (6) Issuing, serving, and enforcing a subpoena or subpoena duces tecum
4 pursuant to any hearing or lawful investigation into the suspected misconduct of any
5 licensee or persons suspected of violation of this Chapter.
6 (7) Having the sole and exclusive authority to administer all claims made
7 against the bond required by R.S. 32:1270.57(F), including the denial or rejection of
8 any claim.
9 (a) The executive director of the commission is authorized to take any action
10 necessary to administer claims against any bond, including instituting or intervening
11 in a legal action to obtain payment of a claim or to prevent payment of an
12 unauthorized claim.
13 (b) If the commission institutes or intervenes in any legal action as
14 authorized by Subparagraph (a) of this Paragraph and prevails, the court shall award
15 the commission reasonable attorney fees and court costs to be paid by the licensee,
16 surety, or both.
17 (8) The commission is authorized to adopt rules to implement the provisions
18 of this Chapter.
19 §1270.54. Independent used motor vehicle dealers; dealers of used motor vehicle
20 parts and accessories; dismantler and parts recyclers; rent-to-own
21 dealers; motor vehicle crushers; public or retail motors vehicle
22 auctions, wholesale motor vehicle auctions, or salvage pool that deal
23 in used motor vehicles; scrapped metal processors and daily rental
24 dealers to be licensed; exception
25 A. No person unless licensed by the commission pursuant the provisions of
26 this Chapter, shall carry on or conduct the business of any of the following:
27 (1) An independent used motor vehicle dealer.
28 (2) A dealer in used parts or used accessories of motor vehicles.
29 (3) A dismantler and parts recycler.
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1 (4) Public or retail motor vehicle auctions, wholesale motor vehicle auctions,
2 or salvage pools that deal in used motor vehicles.
3 (5) A rent-to-own dealer.
4 (6) A used motor vehicle salesperson for any dealer licensed pursuant to this
5 Chapter.
6 (7) A motor vehicle crusher.
7 (8) A daily rental dealer.
8 B. No person licensed by the commission shall display any used motor
9 vehicle at any place other than the location licensed by the commission, unless an
10 off-premises permit authorizing the display of such used motor vehicle at the
11 location has been issued by the commission. The commission may issue one
12 off-premises permit to an independent used motor vehicle dealer in any ninety-day
13 period in accordance with rules and regulations authorizing the display of up to five
14 vehicles at an event within thirty-five miles of the dealer's place of business for a
15 period of up to three days.
16 C. A public or retail motor vehicle auction shall not be required to obtain an
17 off-premises permit to auction, via an internet site, a used motor vehicle for a third
18 party which is in the possession of the third party.
19 §1270.55. Abandonment of business
20 A. (1) When the licensed premise of an independent used motor vehicle
21 dealer is abandoned, the license of the independent used motor vehicle dealer and
22 any salespersons shall be revoked without a hearing if a request or application for a
23 hearing on the revocation is not made within five business days following the posting
24 of a notice on the front door of the business that the license will be revoked for
25 abandonment.
26 (2) Licensed premises shall be considered abandoned if any one of the
27 following exists:
28 (a) There are no salespersons or dealer on the premises during the posted
29 business hours for a period of more than one week without notice to the commission.
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1 (b) The business telephone, as provided on the independent used motor
2 vehicle dealer's license application, is disconnected or no longer in service.
3 (c) The business sign has been removed.
4 §1270.56. Black market sales; prohibition
5 A. No person shall sell used motor vehicles by using fraudulent practices,
6 such as forgery or providing a false or fraudulent name on a certificate of title, to
7 escape the licensing requirements and the payment of license fees provided for in
8 Chapter 6-A and to escape the payment of state and local sales and use tax.
9 PART II. INDEPENDENT USED MOTOR VEHI CLE DEALERS
10 §1270.57. Application for license; renewal; fees; educational seminar; bond
11 requirements; liability insurance; salesperson's license; location of
12 business
13 A.(1) It shall be a violation of this Chapter for any person to engage in
14 business as, or serve in the capacity of, or act as an independent used motor vehicle
15 dealer or used motor vehicle salesperson in this state without first obtaining a license
16 required by this Chapter.
17 (2) Any person serving in more than one capacity or having more than one
18 place where such business is carried on or conducted shall be required to obtain and
19 hold a current license for each capacity and place of business.
20 B.(1) Applications for licensure as an independent used motor vehicle dealer
21 shall be signed by the applicant, shall be on forms prescribed by the commission and
22 furnished to such applicants, and shall contain such information as the commission
23 deems necessary to enable it to fully determine the qualifications and eligibility of
24 the several applicants to receive the license or licenses.
25 (2) The commission shall require in the application, or otherwise,
26 information relating to:
27 (a) The applicant's financial standing.
28 (b) The applicant's business integrity.
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1 (c) Whether the applicant has a place of business and is engaged in the
2 pursuit, avocation, or business for which each license is applied for.
3 (d) Whether the applicant is able to properly conduct the business for which
4 each license is applied for.
5 (e) Such other pertinent information consistent with the safeguarding of the
6 public interest and the public welfare.
7 (f) The name of the applicant.
8 (g) The street address of applicant's principal place of business and each
9 additional place of business.
10 (h) The type of business organization of applicant.
11 (3)(a) All applications for license or licenses shall be accompanied by the
12 appropriate fee or fees in accordance with the schedule pursuant to R.S. 32:1255.
13 All fees shall be nonrefundable.
14 (b) Any independent used motor vehicle dealer who submits a renewal
15 application after the expiration date of an existing license shall be subject to a late
16 penalty pursuant to R.S. 32:1255(B), in addition to any penalty, fine, or cost assessed
17 for operating without a license which shall be paid to the commission.
18 (c) Any independent used motor vehicle dealer having a previous annual
19 license shall be presumed to be a renewal applicant.
20 (d) A change of location, or a change in corporate ownership or majority
21 ownership, or a change in the name of an independent used motor vehicle dealer
22 licensed by the commission shall require a new license and application therefor.
23 (e) Every application for the issuance of an independent used motor vehicle
24 dealer's license shall be accompanied by a certificate, as required by the commission
25 pursuant to the provisions of R.S. 32:1270.65, showing that the applicant has
26 completed an approved educational seminar.
27 (f) Any dealership ceasing to maintain its business shall surrender the
28 dealership license to the commission within ten days and any failure to do so shall
29 constitute a violation of this Chapter.
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1 (g) All bonds shall be for the license period and shall be nontransferable.
2 (5) The office of motor vehicles of the Department of Public Safety and
3 Corrections shall be notified not to accept independent used motor vehicle dealers'
4 titles until such time as licenses have been issued.
5 C. A used motor vehicle salesperson's license shall permit the licensee to
6 engage in the activities of a used motor vehicle salesperson. Salespersons shall not
7 be allowed to sell vehicles unless the motor vehicle salesperson's license has been
8 issued.
9 D. The license issued to each independent used motor vehicle dealer shall
10 specify the location of the place of business. The change of location shall require a
11 new license and application. The license of each independent used motor vehicle
12 dealer shall be posted in a conspicuous place in the licensed dealer location.
13 E. Every used motor vehicle salesperson shall have his license upon his
14 person when engaged in his business and shall display same upon request. The name
15 of the employer of the salesperson shall be stated on the license.
16 F.(1) Every applicant for licensure or renewal of a license as an independent
17 used motor vehicle dealer shall show proof of responsibility by depositing with the
18 commission a continuing bond in the amount of fifty thousand dollars. All bonds
19 shall be with a commercial surety authorized to do business in the state and approved
20 by the commission.
21 (2) The bond shall be for the license period and a new bond or a proper
22 continuation certificate shall be delivered to the commission at the beginning of each
23 license period; however, the aggregate liability of the surety in any calendar year
24 shall in no event exceed fifty thousand dollars.
25 (3) The bond shall be made payable to the state of Louisiana through the
26 commission for the following purposes:
27 (a) The proper disposition of taxes, license fees, tags, or certificates of title.
28 (b) Indemnification to any purchaser of an independent used motor vehicle
29 who suffers any loss, damage, or expense due to the failure of the independent used
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1 motor dealer to comply with any law relating to the registration of a used motor
2 vehicle, the payment of sales tax, and obtaining a license tag or certificate of
3 registration, including but not limited to the failure of the licensee to deliver a
4 certificate of title or remit any tax, license, or registration fee.
5 (c) Restitution imposed by the commission pursuant to this Chapter.
6 (d) Unpaid penalties, fines, and hearing costs imposed by the commission
7 not to exceed twenty-five thousand dollars.
8 (e) Attorney fees or court costs assessed pursuant to this Chapter.
9 H. The bond required by this Section shall be maintained throughout the
10 period of licensure. Should the bond be canceled for any reason, the independent
11 used motor vehicle dealer's license shall be revoked as of the date of cancellation
12 unless a new bond is furnished prior to such date.
13 I. All independent used motor vehicle dealers are required to furnish and
14 keep in force a garage liability policy which would provide coverage for all vehicles
15 offered for sale or used in any other capacity in demonstrating or utilizing the streets
16 and roadways in accordance with the financial responsibility laws of this state.
17 Should the independent used motor vehicle dealers' garage liability insurance
18 coverage be allowed to lapse or be canceled for any reason, the independent used
19 motor vehicle dealer license shall be revoked as of the date of cancellation unless
20 proof of a new policy of insurance is furnished prior to such date.
21 J. Applicants for licensure pursuant to this Part, other than an independent
22 used motor vehicle dealer's license shall submit evidence that the commission shall
23 prescribe, documenting that either the applicant or his general manager, office
24 manager, title clerk, or other responsible representative of the applicant has attended
25 a four-hour educational seminar or has registered to attend such seminar within sixty
26 days after issuance of the license.
27 §1270.58. Denial, revocation, or suspension of license; grounds; unauthorized acts
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1 A. Except as otherwise provided in this Section, the commission may deny
2 an application for a license issued pursuant to the provisions of this Chapter for any
3 of the following reasons:
4 (1) On satisfactory proof of unfitness of the applicant under the standards
5 established by this Part or in rules or regulations adopted and promulgated by the
6 commission.
7 (2) Being convicted of a felony crime.
8 (3) Any material false statement made by the applicant on any application
9 for licensure pursuant to the provisions of this Part.
10 (4) Where the applicant has, under a previous license, committed a violation
11 of any law or rule or regulation adopted and promulgated by the commission.
12 (5) Where the applicant is an immediate family member of, the former
13 employee of, or a former business associate of an independent used motor vehicle
14 dealer whose license was previously revoked or suspended by the commission, and
15 the applicant intends to operate the same or substantially the same business as
16 operated by the revoked licensee, or the revoked licensee will be participating in the
17 business with the applicant. As used in this Paragraph, "immediate family" shall
18 have the meaning ascribed in R.S. 42:1102.
19 B. The commission may revoke or suspend a license, issue a fine or penalty,
20 or enjoin an independent used motor vehicle dealer, dealer in used parts or used
21 accessories of motor vehicles, used motor vehicle auctioneer, or salesperson for any
22 of the following conduct:
23 (1) A change of condition after the license has been granted resulting in
24 failure to maintain the qualifications for licensure, including but not limited to:
25 (a) Failure to keep an established place of business.
26 (b) Failure to furnish or keep in force garage liability insurance on any
27 vehicle, except for trailers, offered for sale and otherwise required under the
28 financial responsibility laws of this state.
29 (c) Failure to furnish or keep in force any bond required under this Part.
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1 (2) Committing a fraudulent act in selling, purchasing, or dealing in used
2 motor vehicles or misrepresenting the terms and conditions of a sale, purchase, or
3 contract for sale or purchase of a used motor vehicle or any interest including an
4 option to purchase.
5 (3) Engaging in his business in such a manner as to cause injury to the public
6 or those with whom he is dealing.
7 (4) Knowingly engaging in tampering with, adjusting, altering, changing,
8 setting back, disconnecting, or failing to connect the odometer of any motor vehicle,
9 or causing any of the foregoing to occur to an odometer of a used motor vehicle, so
10 as to reflect a lower mileage than the true mileage driven by the used motor vehicle.
11 The foregoing shall be applicable to any motor vehicle whether sold wholesale or
12 retail or whether or not the foregoing occurred within or outside of this state.
13 (5) Employing unlicensed salespersons or other unlicensed persons in
14 connection with the sale of used motor vehicles.
15 (6) Operating from an unlicensed location.
16 (7) Parking vehicles on any public roadway or right-of-way for the purpose
17 of displaying vehicles for sale.
18 (8) Failing to deliver any certificate of title to a consumer within the time
19 limitations prescribed in R.S. 32:705.
20 (9) Failing to submit any monthly sales report to Motor Vehicle Audit by the
21 twentieth day of the following month.
22 (10) Failing to remit sales tax where the tax has been collected by the
23 independent used motor vehicle dealer.
24 (11) Leaving the certificate of title open or unassigned to the independent
25 used motor vehicle dealer.
26 (12) Issuing temporary license plates or temporary dealer's plates in violation
27 of the law, or failing to properly register the temporary license place.
28 (13) Failing to maintain records for a period of up to three years.
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1 (14) Repossessing a vehicle in any manner other than what is allowed by
2 law.
3 (15) Requiring a consumer to sign and execute a voluntary surrender or other
4 similar document at the time of the sale of a used motor vehicle.
5 (16) Violating any provision of this Chapter, any rule or regulation adopted
6 by the commission, or any provision of law relating to a used motor vehicle
7 transaction between an independent used motor vehicle dealer and a consumer.
8 (17) To resort to or use any false or misleading advertisement in connection
9 with his business as such independent used motor vehicle dealer or used motor
10 vehicle salesman and failure to comply with Chapter 7 (Advertising) of Subpart 1 of
11 Part V of Title 46, comprised of LAC 46:V:701 through 741, of the Louisiana
12 Administrative Code.
13 (18) Failing to comply with R.S. 32:705.
14 (19) Selling a used motor vehicle either with a waiver of warranties or "as
15 is" without completing and providing to the purchaser a buyers guide if required by
16 the Federal Trade Commission.
17 C. The commission shall not deny an application for an independent used
18 motor vehicle dealership based upon consideration of an existing or anticipated
19 economic or competitive effect on other licenses in the surrounding community or
20 territory.
21 D. In the performance of its duties in accordance with this Section, the
22 commission shall have the authority to obtain from the Department of Public Safety
23 and Corrections and other governmental agencies information relating to the criminal
24 records of applicants for licenses pursuant to this Part.
25 §1270.59. Procedures for denial, suspension, or revocation of license; notice;
26 hearings
27 A.(1) The executive director shall notify in writing each applicant for
28 licensure of the action taken by the commission on the application.
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1 (2) Any applicant who has been denied a license shall be notified of the
2 grounds for denial as set forth in R.S. 32:1270.58.
3 (3) Within thirty days from receipt of the denial, an applicant whose
4 application has been denied may request in writing a review of the denial by the
5 commission.
6 (4) The commission shall hear all denials with reasonable promptness upon
7 reasonable notice to the applicant.
8 (5) Any applicant who requests a review of the denial of his application shall
9 provide either written or oral support for his application. Without such support, the
10 request for review shall be denied.
11 (6) Following the review, the commission shall either affirm or reverse the
12 denial.
13 (7) The commission's decision to affirm the denial shall be final when
14 rendered. The applicant may appeal the decision as provided in Subsection C of this
15 Section.
16 B.(1) Any licensee charged with violating the provisions of this Chapter
17 shall be entitled to a hearing on the alleged violation.
18 (2)(a) The commission shall serve the licensee with written notice of the
19 hearing at least twenty calendar days prior to conducting the hearing on the alleged
20 violation.
21 (b) The commission shall serve the notice of the hearing on the licensee by
22 certified or registered mail to the address for the licensee as provided on the
23 licensee's application, by personal physical service on the licensee, or if a dealer, by
24 service on any one of its employees or by posting notice at the entrance of the
25 licensed premises where the alleged violation occurred.
26 (c) The notice shall contain the time and place of the hearing, the alleged
27 violations, the facts in support of the alleged violations, the possible penalty, and the
28 licensee's rights at the hearing
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1 (d) A copy of the notice shall be mailed by certified or registered mail to the
2 surety on the licensee's bond at the address of the surety as written on the bond.
3 (e) If the licensee is a salesperson, a copy of the notice shall be mailed by
4 certified or registered mail to the licensed dealer.
5 (f) If the issues alleging a possible violation were first presented to the
6 commission by a complaint filed with the commission, a copy of the notice shall be
7 mailed to the complainant by United States mail.
8 (3) Any party to a hearing shall have the right to compel the attendance of
9 witnesses by requesting the issuance of subpoenas. The commission shall issue any
10 subpoena requested in writing no later than ten days prior to the hearing. The party
11 requesting a subpoena be issued shall pay all witness fees in accordance with R.S.
12 13:3661, as well as the estimated cost to be incurred in the delivery of the subpoenas.
13 The commission may compel the attendance of its own witnesses by the issuance of
14 subpoenas.
15 (4) The commission shall consider any pleading filed by the licensee no later
16 than five days prior to the hearing.
17 (5) The commission shall determine whether the licensee has violated any
18 of the provisions of this Chapter, any statutes related to the registration of motor
19 vehicles, including the use of temporary license plates and the collection of sales and
20 use tax, and any rules and regulations promulgated by the commission.
21 (6)(a) The commission may impose sanctions including the imposition of
22 restrictions on any license, the revocation or suspension of any license, the
23 imposition of civil fines, the imposition of restitution or injunction, the assessment
24 of all costs of the hearing including commission attorney fees, witness fees and
25 travel expenses and per diem of commissioners, and the requirement that the licensee
26 attend a four-hour educational seminar within three months of the hearing decision.
27 The commission may also enter into stipulations.
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1 (b) The commission findings and orders shall be reduced to writing and
2 served on the licensee in any manner consistent with the service provided for in
3 Subparagraph (B)(2)(b) of this Section.
4 (c) The commission decisions revoking or suspending a license or enjoining
5 a licensee shall be final and enforceable when rendered.
6 (d) The commission decisions imposing a civil penalty shall become payable
7 thirty days from the date the order is served on the licensee.
8 C.(1) Appeals of any decision denying a license or revoking or suspending
9 a license shall not constitute a stay of the decision of the commission.
10 (2) Appeals of any decision of the commission shall be heard in accordance
11 with the Administrative Procedure Act.
12 §1270.60. Injunctions; cease and desist orders
13 A. The commission is hereby authorized without cost, bond, or deposit to
14 institute injunctive actions in courts of competent jurisdiction in the name of the state
15 on the relation of the commission to enforce the provisions of this Chapter.
16 B. Any licensee or other person who violates or threatens to violate any
17 provision of this Chapter or rule or regulation promulgated thereunder may be
18 enjoined from committing or continuing the violation or engaging in any business
19 for which a license has been issued in accordance with this Chapter. In addition to
20 any other proper venue, the parish of East Baton Rouge shall constitute a proper
21 venue for the institution by the commission of judicial actions authorized under this
22 Chapter.
23 C. All costs, including reasonable attorney fees set by the court incurred by
24 the commission, shall be borne by the person or licensee who has been so enjoined.
25 D.(1) If it appears to the commission at any time that a person is violating
26 the provisions of this Chapter or any rule or order of the commission issued pursuant
27 to this Chapter, it shall notify the person engaged in such conduct to appear and show
28 cause why a cease and desist order should not be issued prohibiting the proscribed
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1 conduct. An interlocutory cease and desist order may be granted with or without
2 bond or other undertaking if one or all of the following conditions exist:
3 (a) Such an order is necessary to the performance of the duties delegated to
4 the commission by this Chapter or is otherwise necessary or convenient to
5 maintaining the status quo between two or more adverse parties before the
6 commission.
7 (b) A party before the commission is entitled to relief demanded of the
8 commission, and all or part of the relief requires the restraint of some act prejudicial
9 to the party.
10 (c) A person is performing or is about to perform or is procuring or allowing
11 the performance of an act relating to the subject of a contested case pending before
12 the commission, and the act would tend to render the commission's order in that case
13 ineffectual.
14 (d) Substantial injury to the rights of a person subject to the commission's
15 jurisdiction is threatened irrespective of any remedy at law.
16 (2) Interlocutory cease and desist orders shall remain in effect until vacated
17 or until incorporated into a final commission order. Permanent cease and desist
18 orders may be issued without regard to the enumerations in Paragraph (1) of this
19 Subsection, but only in accordance with the provisions of his Chapter pertaining to
20 the issuance of final commission orders.
21 (3) Appeal of any interlocutory cease and desist order shall be made to the
22 commission prior to seeking judicial review under the provisions of this Chapter.
23 Appeal of a permanent cease and desist order shall be conducted pursuant to the
24 provisions of this Chapter pertaining to judicial review of final orders.
25 §1270.61. Criminal penalties
26 Any person required to be licensed pursuant to the provisions of this Chapter
27 who commits a violation of this Chapter shall, upon conviction, be fined not less than
28 five hundred dollars nor more than one thousand dollars. Each day that a person
29 violates a provision of this Chapter shall constitute a separate offense.
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1 §1270.62. Civil penalties
2 A. If the commission determines that any person licensed pursuant to this
3 Chapter is guilty of a violation of any of the provisions of this Chapter or the rules
4 and regulations of the commission, the person's license may be suspended or revoked
5 or a civil penalty may be imposed by the commission.
6 B. The commission may also impose a civil penalty against any person who
7 is determined by the commission to have violated any of the provisions of this
8 Chapter or the rules and regulations of the commission in the following manner:
9 (1) No civil penalty imposed for the violation of the provisions of this
10 Chapter or the rules and regulations of the commission shall exceed two thousand
11 dollars for each day the violation continues.
12 (2) On a second or subsequent violation, no civil penalty imposed shall
13 exceed three thousand dollars for each day the second or subsequent violation
14 continues. In order to constitute a second or subsequent violation there must occur
15 a lapse of at least one day following the first or previous violation.
16 C. The commission may assess restitution against the dealer in favor of the
17 consumer in the following manner:
18 (1) Restitution may only be assessed if the dealer agrees by stipulation to the
19 violation or violations and the amount of restitution, or if, after a hearing on the
20 violations, the commission finds that the dealer has committed violations of this
21 Chapter.
22 (2) Restitution may only be assessed for the actual loss suffered by the
23 consumer based on reliable proof provided by the consumer of that loss.
24 §1270.63. Rent with option-to-purchase program
25 A. All rental purchase agreements shall:
26 (1) Be made in clear and conspicuous language.
27 (2) Be in writing, a copy of which shall be delivered to the rental consumer.
28 (3) Have a condition report which sets forth in detail the physical condition
29 and appearance of the vehicle prior to rental which shall be completed and signed by
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1 both the rental consumer and an authorized representative of the rental-to-own dealer
2 and promptly delivered to the rental consumer.
3 (4) Have provisions substantially equivalent to the following:
4 (a) Description of the vehicle rented, including the year, make, model,
5 vehicle identification number, color, and odometer reading.
6 (b) Itemization of all costs relative to detail, delivery, or destination of the
7 vehicle, which shall not exceed the sum of one hundred fifty dollars.
8 (c) Itemization of the processing fee charged by the rental-to-own dealer, if
9 any, which shall not exceed the sum of one hundred fifty dollars.
10 (d) The amount of the security deposit required by the rental-to-own dealer
11 and the conditions under which the security deposit shall be refundable or
12 nonrefundable; however, no security deposit shall exceed the rental-to-own dealer's
13 documented cost of the vehicle.
14 (e) Statement that the rental-to-own dealer cannot add repair costs to the
15 rental purchase agreement. Further, that the rental-to-own dealer shall warrant the
16 power train of the motor vehicle for any defects which existed at the time of sale for
17 a period of thirty days or one thousand miles, whichever is the lesser.
18 (f) Offer to the rental consumer the right to secure a warranty, if one is
19 available, for the used motor vehicle and the price of the warranty, and the cost of
20 any deductible under the warranty.
21 (g) The total amount of payments due, the number of total periodic
22 payments, and the amount of each periodic payment.
23 (h) Whether the title transfer and licensing fees are included in the payments
24 charged at consummation by the rental-to-own dealer or are to be considered
25 additional charges.
26 (i) Whether a late payment is due from the rental consumer after a certain
27 date selected for periodic payment, the amount of which payment shall not exceed
28 the sum of fifty dollars or ten percent of the monthly payment price, whichever is
29 less.
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1 (j) Whether a reinstatement fee shall be required in the event that the rental
2 consumer fails to make timely rental payments and desires to reinstate the rental
3 purchase agreement, which reinstatement fee shall not exceed the sum of fifty dollars
4 plus any legitimate recovery fees or expenses.
5 (k) Whether the rental consumer is liable for loss or damage to the rental
6 property and, if so, the maximum amount for which the rental consumer may be
7 liable.
8 (l) The rights of the rental consumer to terminate the rental purchase
9 agreement and the consequences of the termination, if any.
10 (m) The maintenance and repair of the rental during the rental term and
11 whether the rental consumer is responsible for the repairs absent the purchase of a
12 warranty.
13 (n) Whether the rental consumer is required to secure automobile liability
14 insurance from a licensed insurance agent in this state, and the minimum limits
15 required by the rental-to-own dealer for both bodily injury and property damage,
16 which in any event shall not be less than minimum limits required by state law.
17 (o) When a rental-to-own consumer is in default on his rental purchase
18 agreement, the rental-to-own dealer will mail a notice of default to the rental
19 consumer, provided there is proof of mailing giving the consumer five days to bring
20 the account current.
21 (p) When the rental-to-own consumer returns the vehicle that the rent-to-own
22 dealer shall do a condition report at the time of the vehicle's return which sets forth
23 the physical condition and appearance of the vehicle and which shall be completed
24 and signed by an authorized representative of the rental-to-own dealer and the rental
25 consumer and promptly delivered to the rental consumer.
26 B. A rental purchase agreement shall not contain any of the following:
27 (1) Requiring a confession of judgment.
28 (2) Authorizing a rental-to-own dealer or an agent of the rental-to-own dealer
29 to commit a breach of the peace in the repossession of rental property or to take
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1 repossession of the rental property in any manner other than what is permitted in R.S.
2 14:220.
3 C. Each rental-to-own dealer shall maintain a contingent automobile liability
4 policy of insurance with minimum limits of one hundred thousand dollars per
5 occurrence, three hundred thousand dollars aggregate, and fifty thousand dollars in
6 property damage. It shall not be sufficient for any rental-to-own dealer to share in
7 a policy of insurance, which could, under any circumstance, create a limit of less
8 than that set forth herein. The policy may be surplus lines insurance as defined in
9 R.S. 22:46.
10 D. An independent used motor vehicle dealer shall not rent with an option
11 to purchase a used motor vehicle that has a recorded lien on file. The lien shall be
12 removed through the office of motor vehicles prior to placing the used motor vehicle
13 in the rental program. An independent used motor vehicle dealer shall only rent with
14 an option-to-purchase vehicle which shall be properly titled in the name of the
15 independent used motor vehicle dealer.
16 §1270.64. Wholesale motor vehicle auctions; unlawful acts
17 A. It shall be unlawful and constitute a violation of this Chapter for any
18 wholesale motor vehicle auction to:
19 (1) Fail to comply with the licensing requirements of this Chapter.
20 (2) Fail to comply with any provision of this Chapter, any provision relating
21 to the proper disposition of license tags or registrations, transfers of title, or payment
22 of sales taxes in connection with the purchase or sale of any new or used motor
23 vehicle, or with any rule or regulation adopted and promulgated by the commission
24 pursuant to the authority vested in it by this Chapter.
25 (3) Permit any person other than a licensed dealer or a person who holds a
26 current authorization to bid for a licensed dealer, to bid, offer to bid, participate in
27 the bid process, purchase, or offer to purchase a used motor vehicle placed up for bid
28 at the auction.
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1 (4) Accept cash for a sale from anyone other than a licensed dealer or his
2 agent.
3 (5) Permit any person other than a mechanic or technical expert to
4 accompany a licensed dealer to inspect used motor vehicles prior to the vehicle being
5 placed up for bid at the auction.
6 (6) Fail to disclose that a sale took place off the block or out of the auction
7 ring by providing red-stamped verification on the auction bill of sale or invoice, with
8 the lettering on the stamp to be no less than half-inch print size.
9 (7) Fail to implement, within six months, following the effective date of this
10 Section, an audio video recording system which will properly verify sales occurring
11 in the lanes at the auction and fail to maintain those video recordings for at least
12 thirty days following the sale.
13 (8) Fail to use an industry-recognized damage classification system for all
14 vehicles sold at auction.
15 (9) Engage in fraudulent activity in the auction process.
16 B. Any violation of this Section shall constitute grounds for suspension,
17 revocation, or refusal to issue or renew any license or permit issued by the
18 commission.
19 C. Any licensee who violates any of the provisions of this Section may be
20 subject to an injunction and fines and penalties provided in this Chapter.
21 §1270.65. Educational seminars; authority; initial license application seminar;
22 renewal application seminar; exceptions
23 A. The commission may to do all of the following:
24 (1) Require both initial applicants and licensees seeking a renewal of their
25 licenses, pursuant to this Chapter, to attend educational seminars.
26 (2) Promulgate and adopt any rule for establishing educational seminar
27 curriculum, requiring certain materials to be used, employing any person, and
28 incurring any expense necessary to administer the seminars.
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1 (3) Require seminar attendees to complete a test comprised of ten questions
2 approved by the commission and to obtain a minimum score of seventy percent in
3 order to receive credit for satisfactory completion of the seminar.
4 (4) Require that an initial license application seminar shall not exceed six
5 hours in length and require that a renewal application seminar shall not exceed four
6 hours in length.
7 (5) Approve and create a uniform certificate to be issued upon satisfactory
8 completion of an educational seminar.
9 B. Each initial license application shall be accompanied by a certificate
10 issued by the commission, as described in Subsection D of this Section, documenting
11 that a minimum of one owner, partner, officer, or local dealership manager of the
12 independent used motor vehicle dealer applicant has completed an educational
13 seminar. For each initial license application seminar, the seminar shall include
14 materials from the Department of Public Safety and Corrections, office of motor
15 vehicles, the Department of Revenue, and any other information the commission
16 deems necessary to educate attendees and their employees regarding compliance
17 with the law.
18 C. Each licensee seeking to renew his license shall certify that the owner,
19 partner, officer, or local dealership manager of the independent used motor vehicle
20 dealer has completed an educational seminar prior to filing the renewal application
21 with the commission. Any renewal application and seminar certification shall be
22 completed during the license period.
23 D.(1) The commission may approve any educational institution, private
24 vocational school, correspondence school, or trade association that meets its
25 requirements to conduct educational seminars as required by this Section.
26 (2) Any educational institution, private vocational school, correspondence
27 school, or trade association approved pursuant to Paragraph (1) of this Subsection
28 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 Chapter.
8 F. Notwithstanding any other provision of this Section, this Section shall not
9 apply to any licensee who does not sell or rent used motor vehicles to consumers.
10 §1270.66. Deposit and down payment disclosure and delivery of vehicle pending
11 the sale
12 A. In every transaction between an independent used motor vehicle dealer
13 and a customer in which the customer provides a deposit on a used motor vehicle,
14 the independent used motor vehicle dealer is required to provide a statement that the
15 deposit given is on an agreement to purchase, and not an actual sale. The agreement
16 shall clearly state that no transaction has actually occurred, that no sales documents
17 have been completed, and that the deposit is merely intended as a hold on a vehicle.
18 B. In every transaction between an independent used motor vehicle dealer
19 and a customer in which the customer provides a down payment for the purchase of
20 a used motor vehicle, the independent used motor vehicle dealer is required to
21 provide, either on the bill of sale, or by separate agreement, a statement that the sale
22 is conditioned upon certain identifiable events, such as financing or obtaining
23 state-mandated compulsory automobile insurance.
24 C. In every transaction between an independent used motor vehicle dealer
25 and a customer in which the customer provides either a down payment or a deposit
26 for the purchase of a used motor vehicle, the independent used motor vehicle dealer
27 shall complete a disclosure statement containing the terms and conditions of the
28 transaction, including but not limited to the following:
29 (1) The amount of the deposit or down payment.
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1 (2) Whether the money given is either a deposit or down payment.
2 (3) Terms and conditions for return or forfeiture of the customer's deposit or
3 down payment.
4 (4) A time limit in which to complete the transaction not to exceed twenty
5 days.
6 (5) A complete description of the motor vehicle to be sold including the
7 make, model, year, and any identification and serial numbers.
8 (6) The price of the vehicle and a description of the vehicle including the
9 make, model, year, identification, and serial number and its condition.
10 (7) The amount of the trade-in allowance and a description of the trade-in
11 vehicle including the make, model, year, identification, and serial number and its
12 condition.
13 D. If the independent used motor vehicle dealer allows the customer to take
14 delivery on a vehicle which is the subject of either a deposit or a down payment, a
15 pre-delivery sale disclosure statement from the independent used motor vehicle
16 dealer and the customer shall include the following:
17 (1) A condition report which clearly identifies any noticeable damage to the
18 vehicle before it is released to the customer.
19 (2) A statement that if the independent used motor vehicle dealer withdraws
20 from the agreement to purchase, the customer will be responsible only for damages
21 beyond normal wear and tear occurring during the customer's use of the vehicle, the
22 amount of which may be deducted from the deposit or down payment.
23 (3) A statement that if the customer withdraws from the agreement to
24 purchase, the customer shall be responsible not only for damages occurring during
25 the customer's use of the vehicle but also for usage of the vehicle at a day rate not to
26 exceed twenty-five dollars per day and thirty-five cents per mile, which may be
27 deducted from the deposit or down payment. A customer shall be considered as
28 having withdrawn from the agreement if the customer intentionally provided false
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1 or fraudulent information to the independent used motor vehicle dealer in connection
2 with the transaction.
3 (4) A statement that if the customer either withdraws from the agreement to
4 purchase or fails to return the vehicle at the expiration of the term of the agreement,
5 the independent used motor vehicle dealer may seek repossession of the vehicle by
6 any lawful means.
7 (5) A statement that if the independent used motor vehicle dealer withdraws
8 from the agreement to purchase that the independent used motor vehicle dealer must
9 give written notice, by certified or registered mail, to the customer at least five days
10 prior to taking repossession of the vehicle which may be done by any lawful means,
11 and only upon return of the deposit in accordance with this Section.
12 E. It shall be unlawful and constitute a violation of this Chapter for any
13 independent used motor vehicle dealer to fail to follow any of the provisions of this
14 Section.
15 PART III. DISMANTLERS AND PARTS RECYCLERS; MOTOR VEHICLE
16 CRUSHERS; SCRAPPED MOTOR VEHI CLE DEALERS
17 §1270.67. License required; application; fee; duration
18 A. It shall be unlawful and shall constitute a violation for any person to
19 engage in business in whole or in part as, or serve in the capacity of, or act as an
20 automotive dismantler and parts recycler, automotive dismantler and parts recycler
21 salesperson, or motor vehicle crusher in this state without first obtaining a license
22 therefor from the commission.
23 B. Any person engaging, acting, or serving in more than one of the capacities
24 or having more than one place where the business is carried on or conducted shall
25 be required to obtain and hold a current license for each thereof in which he, it, or
26 they shall engage.
27 C. Each person desiring to engage in the business of a dismantler and parts
28 recycler, dismantler and parts recycler salesperson, or motor vehicle crusher shall
29 apply in writing, on a form to be prescribed by the commission, which shall contain:
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1 (1) The name of the applicant.
2 (2) The street address of applicant's principal place of business.
3 (3) The type of business organization of applicant.
4 (4) The applicant's financial standing.
5 (5) The applicant's business integrity.
6 (6) Whether the applicant has an established place of business and is
7 engaged in the pursuit, avocation, or business for which a license or licenses are
8 applied.
9 (7) Whether the applicant is able to properly conduct the business for which
10 a license or licenses are applied.
11 (8) Any additional information as may be required by the commission.
12 D. In addition to the items required to be submitted by applicants for
13 licensure pursuant to this Section, applicants shall also submit such evidence as the
14 commission shall prescribe, documenting that either the applicant or his general
15 manager, office manager, title clerk, or other responsible representative of the
16 applicant has attended a four-hour educational seminar or has registered to attend
17 such seminar within sixty days after issuance of the license.
18 E. All licenses issued under the provisions of this Part shall expire on the
19 date indicated on the license and shall be nontransferable.
20 F. All applications for renewal of licenses hereunder shall be submitted on
21 or before sixty days prior to the expiration date indicated on the license. If
22 application has not been made for renewal of licenses, such licenses shall expire on
23 the expiration date indicated on the license, and it shall be a violation of this Part for
24 any person to represent himself and act thereafter in the capacity and business for
25 which he was formerly licensed hereunder.
26 G. A change of location, a change in corporate ownership or majority
27 ownership, or a change in the name of a licensee shall require a new license and
28 application therefor.
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1 J. Any licensee ceasing to maintain its business shall surrender the license
2 to the commission within ten days and any failure to do so shall constitute a violation
3 of this Chapter.
4 K. The commission is authorized to adopt rules to implement the provisions
5 of this Section.
6 §1270.68. Other licenses not required
7 A licensed dismantler and parts recycler shall not be required to obtain a
8 separate license as an independent used motor vehicle dealer, an automobile
9 accessory dealer, an automobile garage or shop, or a storage garage or yard to engage
10 in the business of a dismantler and parts recycler as set forth herein.
11 §1270.69. Denial, revocation, or suspension of license; grounds; violations
12 A. Except as otherwise provided in this Section, the commission may deny
13 an application for a license or revoke, or suspend a license after it has been granted
14 for any of the following reasons:
15 (1) On satisfactory proof of unfitness of the applicant or the licensee, as the
16 case may be, under the standards established by this Part.
17 (2) For fraudulent practices or any material misstatement made by an
18 applicant in any application for license under the provisions of this Part.
19 (3) For any willful failure to comply with any provisions of this Part, any
20 provision relating to the proper disposition of certificates of title or permits to
21 dismantle in connection with the purchase or sale of any motor vehicle, or with any
22 rule or regulation adopted and promulgated by the commission under authority
23 vested in it by this Part.
24 (4) Change of condition after license is granted resulting in failure to
25 maintain the qualifications for licensure.
26 (5) Continued or flagrant violation of any of the rules or regulations of the
27 commission.
28 (6) Being a dismantler and parts recycler, dismantler and parts recycler
29 salesperson, or motor vehicle crusher who:
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1 (a) Resorts to or uses any false or misleading advertising in connection with
2 his business.
3 (b) Has committed any unlawful act which resulted in the revocation of any
4 similar license in another state.
5 (c) Has been convicted of a crime involving moral turpitude.
6 (d) Has committed a fraudulent act in selling, purchasing, or otherwise
7 dealing in motor vehicles or motor vehicle parts, or has misrepresented the terms and
8 conditions of a sale, purchase, or contract for sale or purchase of used motor vehicle
9 parts, motor vehicles, or any interest therein including an option to purchase such
10 motor vehicles.
11 (e) Has engaged in his business under a past or present license issued
12 pursuant to this Part or in any other course of conduct in such a manner as to cause
13 injury to the public or to those with whom he is dealing.
14 (f) Has failed to meet or maintain the conditions and requirements necessary
15 to qualify for the issuance of a license.
16 (g) Has failed or refused to furnish and keep in force any bond required
17 under this Part.
18 (h) Has knowingly engaged in tampering with, adjusting, altering, changing,
19 setting back, disconnecting, or failing to connect the odometer of any motor vehicle,
20 or causing any of the foregoing to occur in an odometer of a motor vehicle, so as to
21 reflect a lower mileage than the true mileage driven by the motor vehicle. The
22 foregoing shall be applicable to any motor vehicle whether sold wholesale or retail
23 or whether or not the foregoing occurred within or outside of this state.
24 (7) Being a dismantler and parts recycler or crusher who:
25 (a) Does not have an established place of business.
26 (b) Is not operating from the address shown on his license if this change has
27 not been reported to the commission.
28 (c) Employs unlicensed salespersons or other unlicensed persons in
29 connection with the sales of used motor vehicle parts.
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1 B. The commission shall not deny an application for a license or revoke or
2 suspend a license based upon consideration of an existing or anticipated economic
3 or competitive effect on other licensees in the surrounding community or territory.
4 C. Each of the reasons listed in Subsection A of this Section that are grounds
5 for suspension, revocation, or denial of issuance or renewal of license shall also
6 constitute a violation of this Part, unless the person involved has been tried and
7 acquitted of the offense constituting such grounds.
8 D. The suspension, revocation, or refusal to issue or renew a license or the
9 imposition of any other penalty by the commission shall be in addition to any penalty
10 which might be imposed upon any licensee upon a conviction at law for any
11 violation of this Part.
12 E. In the performance of its duties in accordance with this Section, the
13 commission shall have the authority to obtain from the Department of Public Safety
14 and Corrections and other governmental agencies information relating to the criminal
15 records of applicants for licensure pursuant to this Part.
16 §1270.70. Requirement to keep records
17 A. Each independent used motor vehicle dealer, dismantler and parts
18 recycler, motor vehicle crusher, and scrap metal processor shall keep a register of all
19 purchases and sales of motor vehicles for three years from the date of purchase or
20 sale indicating the make, model, year, body style, vehicle identification number,
21 odometer reading, and name and address of the purchaser and sellers, provided that
22 any person, firm, or corporation purchasing a motor vehicle from a licensee of this
23 commission is exempted from the requirement of keeping records on such purchases
24 as are required in this Section. Scrap metal processors shall provide the information
25 concerning the vehicle purchased, as required in this Section, only to the extent the
26 information is readily available or ascertainable from the motor vehicle itself, as
27 determined by the scrap metal processor.
28 B. Such registers and any vehicles or parts of vehicles still in the possession
29 of the independent used motor vehicle dealer or dismantler and parts recycler, motor
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1 vehicle crusher, and scrap metal processor shall be made available for inspection to
2 identified representatives of the commission and to identified law enforcement
3 officers of the state, parish, and municipality during reasonable business hours on
4 business days.
5 §1270.71. Transfer of motor vehicle certificate of title to or from a dismantler and
6 parts recycler; transfers of scrapped motor vehicles
7 A. In all transfers of motor vehicles at wholesale as authorized herein, a
8 dismantler and parts recycler, duly licensed hereunder, shall have the authority to
9 transfer the certificates of title to such motor vehicles as a dealer under the Louisiana
10 Certificate of Title Law.
11 B. Unless transferred by a dismantler and parts recycler or motor vehicle
12 crusher licensed by this commission, all transfers of motor vehicles shall be
13 accompanied by the delivery of possession of the certificate of title, a permit to sell,
14 or the permit to dismantle the motor vehicle, as required under R.S. 32:716 or 717,
15 whichever is applicable, by the transferor to the transferee thereof.
16 C. No motor vehicle crusher or scrap metal processor acquiring a motor
17 vehicle from any person who is not licensed under the provisions of this Part as a
18 dismantler and parts recycler or as a motor vehicle crusher shall crush, compact,
19 demolish, shred, or otherwise recycle for scrap such motor vehicle until after
20 applying with the Department of Public Safety and Corrections, office of motor
21 vehicles, for a permit to dismantle the motor vehicle for scrap in accordance with the
22 applicable provisions and procedures set forth in R.S. 32:716 or 717, unless a permit
23 to dismantle or a permit to sell such motor vehicle has previously been issued to the
24 seller and transferred to the purchaser of the motor vehicle.
25 D. A scrap metal processor, upon receiving a copy of the license from an
26 independent used motor vehicle dealer, dismantler and parts recycler, or motor
27 vehicle crusher, shall be authorized to rely on the validity of the license for the term
28 of the license unless and until the scrap metal processor receives actual written notice
29 from the commission that the license has been revoked or suspended.
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1 §1270.72. Salvage pools; record keepers
2 A.(1) The owner, manager, employee, or person in charge of a salvage pool
3 or salvage disposal sale shall keep a register of all sales of motor vehicles for three
4 years from the date of sale, showing the make, model, year, body style, vehicle
5 identification number, odometer reading, and the name and address of the seller and
6 buyer. The register shall be made available when requested by the commission
7 within a reasonable period of time.
8 (2) The register shall be made available for inspection by identified law
9 enforcement officers of the state, parish, or municipality or agents of the commission
10 at the salvage pool or salvage disposal sale business location during regular business
11 hours on business days.
12 B. In the event a bid card is not required in order to purchase a vehicle, a
13 transaction fee of five dollars shall be collected and remitted monthly, electronically
14 or otherwise, and transmitted to the commission by the owner or operator of the
15 salvage pool in connection with the sale of each vehicle.
16 CHAPTER 6-A 6-B. LOUISIANA VEHICLE PROTECTION PRODUCT ACT
17 * * *
18 §1274. License and filing requirements; licensing fees
19 * * *
20 B. Warrantor registration records renewal applications shall be filed annually
21 and shall be updated within thirty days of any change. The registration records initial
22 or renewal application shall contain the following information:
23 * * *
24 C. If a registrant licensee fails to register apply by the renewal deadline, the
25 executive director shall give him written notice of the failure and the registrant will
26 have thirty days from mailing of the notice to complete the renewal of his
27 registration before he is suspended from being registered in this state.
28 D. An administrator or person who sells or solicits a sale of a vehicle
29 protection product but who is not a warrantor shall not be required to register obtain
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1 a license as a warrantor or be licensed under the insurance laws of this state to sell
2 vehicle protection products.
3 E.(1) The licensing fee for a warrantor for each calendar year or part thereof
4 shall not exceed five hundred dollars as fixed by the commission.
5 (2) All licensing fees collected under the provisions of this Section shall be
6 paid to the commission, shall be nonrefundable, and shall be used for the
7 administration of this Chapter by the commission.
8 (3) Upon approval of an application and the payment of a fee, the
9 commission shall issue a license to the applicant to engage in business as a warrantor
10 under and in accordance with the provisions of Chapter 6 of this Title and this
11 Chapter for a period which shall expire the last day of December following the date
12 of issuance. Such The license shall not be transferable or assignable.
13 Section 2. R.S. 36:4.1(C)(13) through (15) are hereby amended and reenacted to read
14as follows:
15 §4.1. Agencies transferred from Louisiana Economic Development to the office of
16 the governor; agencies placed within the office of the governor
17 * * *
18 C. The following agencies are hereby transferred to and shall be placed
19 within the office of the governor and shall perform and exercise their powers, duties,
20 functions, and responsibilities as provided in R.S. 36:803:
21 * * *
22 (13) Louisiana Used Motor Vehicle Commission (R.S. 32:781 et seq.).
23 (14) (13) Louisiana State Polygraph Board (R.S. 37:2831 et seq.),
24 notwithstanding the provisions of Chapter 36-A of Title 37 of the Louisiana Revised
25 Statutes of 1950 to the contrary.
26 (15) (14) Louisiana State Board of Cosmetology (R.S. 37:561 et seq.).
27 * * *
28 Section 3. R.S. 37:1892(3), 1893(C)(4)(a) and (d) and (D), and 1894 are hereby
29amended and reenacted to read as follows:
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1 §1892. Definitions
2 For purposes of this Part, the following words have the following meanings:
3 * * *
4 (3) "Commission" means the Louisiana Used Motor Vehicle Commission.
5 * * *
6 §1893. License required; application
7 * * *
8 C.
9 * * *
10 (4)(a) Upon submission of an application, an applicant shall pay all
11 applicable fees in accordance with R.S. 32:791(D) R.S. 32:1255. If an application
12 is denied and the license is not issued, the commission shall return all licensing fees
13 to the applicant. All fees shall be nonrefundable.
14 * * *
15 (d) Any licensee that changes its name, mailing address, or ownership shall
16 notify the commission within ten calendar days of the change. Failure to timely
17 notify the commission of a change of name, mailing address, or ownership shall be
18 in violation of this Part. A change of location, a change in corporate ownership or
19 majority ownership, or a change in the name of a catalytic converter dealer licensed
20 by the commission shall require a new license and application.
21 * * *
22 D. The commission shall specify the location of the place of business on each
23 license issued. If the business location is changed, the commission shall be notified
24 immediately of the change and the commission may endorse the change of location
25 on the license without charge. The license shall be posted in a conspicuous place in
26 each place of business.
27 * * *
28 §1894. Exceptions
29 The provisions of this Part shall not apply to either of the following:
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1 (1) A dealer licensed by the Louisiana Motor Vehicle Commission.
2 (2) A a person possessing not more than the used detached catalytic
3 converters from one vehicle owned by the person.
4 * * *
5 Section 4. R.S. 32:781 through 808 and 1252(9), (61), (63), (65), (66), (68), (71),
6and (72) are hereby repealed in their entirety.
7 Section 5. The Louisiana State Law Institute is hereby directed to make technical
8changes to statutory laws as necessary to reflect the succession of the Louisiana Used Motor
9Vehicle Commission by the Louisiana Motor Vehicle Commission as provided in this Act
10including but not limited to arranging in alphabetical order and renumbering the definitions
11provided in R.S. 32:1252.
12 Section 6. This Act shall become effective upon signature by the governor or, if not
13signed by the governor, upon expiration of the time for bills to become law without signature
14by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
15vetoed by the governor and subsequently approved by the legislature, this Act shall become
16effective on the day following such approval.
17 Section 7. This Section, Section 1, 2, 3, and 4, shall be implemented on July 1, 2025.
18If this Act is vetoed by the governor and subsequently approved by the legislature, this
19Sections, 1, 2., 3, and 4 shall become effective on July 1, 2025, or on the day following such
20approval by the legislature, whichever is later.
21 Section 8.(A)The Louisiana Used Motor Vehicle Commission and the Louisiana
22Motor Vehicle Commission shall take all necessary actions prior to July 1, 2025, including
23but not limited to amending, adopting, and repealing administrative rules,as are necessary
24to implement the provisions of this Act.
25 (B) Transfer of duties and functions. On the effective date of this Section, the
26Louisiana Used Motor Vehicle Commission shall be abolished and its duties and functions
27shall be transferred to the Louisiana Motor Vehicle Commission as provided in this Act. All
28unfinished business, references in laws and documents, employees, property, obligations,and
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1books and records heretofore under the control of the Louisiana Motor Vehicle Commission
2shall be transferred as provided in this Section.
3 (C) Unfinished business. Upon the transfer of duties and functions as provided in this
4Section, any pending or unfinished business of the Louisiana Used Motor Vehicle
5Commission shall be taken over and completed by the Louisiana Motor Vehicle
6Commission. The Louisiana Motor Vehicle Commission shall be the successor in every way
7to the Louisiana Used Motor Vehicle Commission.
8 (D) References in laws and documents. Wherever the Louisiana Used Motor Vehicle
9Commission is referred to or designated by the constitution or by any law or contract or
10other document, after the effective date of the abolition of that board as provided in this
11Section such reference or designation shall be considered to apply to the Louisiana Motor
12Vehicle Commission.
13 (E) Legal proceedings and documents continued. Any legal proceeding to which the
14Louisiana Used Motor Vehicle Commission is a party and which is filed, initiated, or
15pending before any court on the effective date of this Section, and all documents involved
16in or affected by such legal proceeding, shall retain their effectiveness and shall be continued
17in the name of the Louisiana Motor Vehicle Commission. All further legal proceedings and
18documents in the continuation, disposition, and enforcement of such legal proceedings shall
19be in the name of the Louisiana Motor Vehicle Commission, and the Louisiana Motor
20Vehicle Commission shall be substituted for the party to which it is the successor without
21the necessity for amendment of any document to substitute the name of that board or the
22name or title of any office, official, employee, or other agent or representative of the board.
23Any legal proceeding and all documents involved in or affected by such legal proceeding,
24which proceeding has been continued in the name of the Louisiana Used Motor Vehicle
25Commission, shall retain their effectiveness, and those provisions of this Section requiring
26that the continuation, disposition, and enforcement of a legal proceeding and documents
27related thereto shall be in the name of the party to which the Louisiana Motor Vehicle
28Commission is the successor shall not affect their validity.
29 (F)(1) Protection of obligations; federal assistance. All obligations of the Louisiana
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1Used Motor Vehicle Commission hereafter shall be considered to be the obligations of the
2Louisiana Motor Vehicle Commission to the same extent as if originally made by the
3Louisiana Motor Vehicle Commission and the same are hereby ratified. In like manner, and
4in order to prevent any violation of the provisions, terms, or conditions of any gift, donation,
5deed, will, trust, or other instrument or disposition by which property vested in the Louisiana
6Motor Vehicle Commission by this Act was previously vested in the Louisiana Used Motor
7Vehicle Commission or diversion from the purposes for which such property was so vested,
8it is hereby specifically provided that each such instrument or disposition hereafter shall be
9considered to have vested such property in the Louisiana Motor Vehicle Commission in the
10same manner and to the same extent as if originally so done.
11 (2) The Louisiana Motor Vehicle Commission shall be the successor in every way
12to the Louisiana Used Motor Vehicle Commission, including with respect to obligations and
13debts of the Louisiana Used Motor Vehicle Commission. All dedications and allocations of
14revenues and sources of revenues heretofore made shall continue in the same manner, to the
15same extent, and for the same purposes as were provided prior to the enactment of this Act,
16unless and until other provision is made for such dedications and allocations.
17 (3) This Act shall not be construed or applied in any way which will prevent full
18compliance by the state, or any department, office, or agency thereof, with the requirements
19of any act of the Congress of the United States or any regulation made thereunder by which
20federal aid or other federal assistance has been or hereafter is made available to this state,
21or any department, office, agency, or subdivision thereof, anything contained in this Act to
22the contrary notwithstanding, and such compliance hereafter shall be accomplished by the
23Louisiana Motor Vehicle Commission.
24 (G) Transfer of property. All books, papers, records, money, actions, and other
25property of every kind, movable and immovable, real and personal, heretofore possessed,
26controlled, or used by the Louisiana Used Motor Vehicle Commission are hereby transferred
27to the Louisiana Motor Vehicle Commission. All funds controlled by the Louisiana Used
28Motor Vehicle Commission are hereby transferred to the Louisiana Motor Vehicle
29Commission.
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HB NO. 623
1 (H) Transfer of employees. All employees engaged in the performance of duties of
2the Louisiana Used Motor Vehicle Commission are hereby transferred to the Louisiana
3Motor Vehicle Commission and shall be subject to applicable state civil service laws, rules,
4and regulations. Employee positions in the unclassified service shall remain in the
5unclassified service.
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 623 Original 2025 Regular Session Carver
Abstract: Provides relative to the La. Motor Vehicle Commission.
Present law provides for the La. Motor Vehicle Commission and the La. Used Motor Vehicle
Commission.
Proposed law repeals the La. Used Motor Vehicle Commission and allows the La. Motor
Vehicle Commission to absorb the jurisdiction and responsibilities that were under the La.
Used Motor Vehicle Commission.
Present law provides for definitions regarding the La. Motor Vehicle Commission.
Proposed law amends definitions for "broker", "community or territory" or "area of
responsibility", "converter" or "secondary manufacturer", "distributor" or "wholesaler",
"distributor branch", "distributor representative", "established place", "established place of
business", "factory branch", "factory representative", "franchise", "marine dealer",
"motorcycle or all-terrain vehicle dealer", "motor vehicle lessor", "new marine product",
"new motorcycle or all-terrain vehicle", "new motor vehicle", "new recreational product",
or "new specialty vehicle", "new recreational vehicle", "recreational products dealer",
"recreational vehicle dealer", "specialty vehicle", "ultimate purchaser", "used marine
product", "used motorcycle or all-terrain vehicle", "used motor vehicle", "used motor vehicle
facility", "used recreational vehicle", and "vehicle".
Proposed law repeals the definitions for "dealer", "used marine dealer", "used marine
product facility", "used motorcycle or all-terrain vehicle dealer", used motorcycle or all-
terrain vehicle facility", used motor vehicle dealer", "used recreational vehicle dealer", and
used recreational vehicle facility".
Present law provides relative to licenses and fees under the La. Used Motor Vehicle
Commission.
Proposed law moves those licenses and fees to the La. Motor Vehicle Commission.
Present law provides relative to dealers licensed under the La. Motor Vehicle Commission.
Proposed law amends present law to provide for clarifications.
Present law provides relative to dealers licensed under the La. Used Motor Vehicle
Commission.
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HB NO. 623
Proposed law moves the dealers under the La. Motor Vehicle Commission.
Proposed law enacts the La. Used Motor Vehicles, Parts, and Accessories Act.
Proposed law provides for definitions.
Proposed law provides for duties of the La. Motor Vehicle Commission.
Proposed law provides for independent used motor dealers, dealers of used motor vehicle
parts and accessories, dismantler and parts recyclers, rent-to-own dealers, motor vehicle
crushers, public or retail motor vehicle auctions, wholesale motor vehicle auctions, salvage
pool that deal in used motor vehicles, scrapped metal processors, and daily rental dealers to
be licensed.
Proposed law provides relative to abandonment of businesses.
Proposed law provides relative to black market sales.
Proposed law provides relative to independent used motor vehicle dealers.
Proposed law provides relative to application for license, renewal, fees, educational
seminars, bond requirements, liability insurance, salesperson licenses, and the location of
businesses.
Proposed law provides relative to the denial, revocation, or suspension of licenses.
Proposed law provides for the procedures of denial, suspension, or revocation of licenses.
Proposed law provides relative to notices and hearings.
Proposed law provides relative to injunctions and cease and desist orders.
Proposed law provides for criminal penalties.
Proposed law provides for civil penalties.
Proposed law provides relative to the rent with option-to-purchase program.
Proposed law provides relative to wholesale motor vehicle auctions.
Proposed law provides relative to unlawful acts.
Proposed law provides relative to the an initial license application seminar and a renewal
application seminar.
Proposed law provides for deposit and down payment disclosure and delivery of vehicle
pending sale.
Proposed law provides relative dismantlers and parts recyclers, motor vehicle crushers, and
scrapped motor vehicle dealers.
Proposed law provides for whether a certain license is required or not.
Proposed law provides relative to denial, revocation, or suspension of a license.
Proposed law provides for requirements to keep records.
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HB NO. 623
Proposed law provides relative to the transfer of a motor vehicle certificate of title to or from
a dismantler and parts recycler.
Proposed law provides relative to transfers of scrapped motor vehicles.
Proposed law provides relative to salvage pools and record keepers.
Present law provides for the La. Vehicle Protection Act.
Proposed law clarifies present law.
Present law provides for agencies under the governor.
Proposed law abolishes the La. Used Motor Vehicle Commission.
Present law provides relative to catalytic converter dealers.
Proposed law amends present law to provide that all fees for licensure are nonrefundable.
Proposed law provides that a change of location, a change in corporate ownership or
majority ownership, or a change in the name of a catalytic converter dealer licensed by the
commission shall require a new license and application.
Provides for effective dates for the proposed law.
(Amends R.S. 32:1251, 1252(5)(a), (7)(a) and (b), (8), (12)-(17), (20), (25)(b), (31), (36),
(40)-(43), (46), (48), (53), (60), (62), (64), (67), (69), (70), and (73), 1253(A)(intro. para.),
(3), and (4), (C)-(F), and (H), 1254(A)(intro. para.), (12), and (19), (B)(1)(a) and (2),
(E)(9)(d) and (10)(a), (F)(7)(intro. para.) and (a), (G)(7)(intro. para.) and (a), (H)(6)(intro.
para.) and (a), (L)(8)(intro. para.) and (a), and (M), 1255(A)(1), (2), and (5) and (B),
1256.1(A)(1), (C)(2), and (D), 1257(A)(2), (B), (C), and (D)(1)(a) -(c), 1258(A)(10) and (E),
1260(F), 1261(A)(1)(a)(v), (viii), and (ix), (b)-(e), (h), (i), (k)(i)(cc), (l), (m), (p), (q), (t)(ii)
and (iii), (u), (v), (w)(i)(intro. para.), and (y), (2)(intro. para.), (b), (f)(ii), (iv), and (v), (i),
and (k)(i), (3)(e) and (g), (4)(c), and (5)(c), (f)(ii), (h)(intro. para.), (i), and (iii), and (B),
1261.1(A), 1261.2, 1262(A)(2), (3), (4)(a)(intro. para.) and (b), (5), (6)(intro. para.), (7),
(8)(c), (9)(b) and (c)(iv), and (10)-(14), (B)(1), (2)(intro. para.) and (d), (3), (4)(a), (6), and
(8), and (C), 1264.1, 1264.2(B)(1)(b)(intro. para.) and (i)(aa), (bb)(intro. para.) and (ii), and
(cc), and (C)-(G), 1267(C), 1268(A)(1)(intro. para.), (a)(intro. para.) and (ii), and (b)-(d), and
(2)(a)(intro. para.), (b) and (c), (B), and (C)(1) and (4), 1270(A)-(C), (D)(3), and (E),
1270.1(intro. para.)(1)(a)(iv) and (vii), (d), (g), (l), and (n), (2)(intro. para.), (b), (f)(iv) and
(v), and (i), and (3)(a), 1270.2(A)(1), 1270.5(D)(5), and (J), 1270.10(A),(B), and (D)(3),
1270.11(intro. para.)(1)(a)(v), (c), (h)(i)(bb) and (cc), (k), and (n) and (2)(intro. para.), (b),
(f)(iv) and (v), (h), and (i), 1270.16(A), (B)(intro. para.), and (H)(1), 1270.17(A)(1)(intro.
para.) and (c) and (3) and (B), 1270.20(intro. para.)(1)(k)(i), (o), (p), (u)(i)(aa)-(cc) and
(2)(b), (f)(iv) and (v), and (i), 1270.23(A)(1), 1270.28(A)(1), (2)(intro. para.), (4), and (8)(a)
and (B)(4), (5)(a), and (6), 1270.29(B) and (C)(1) and (4), 1270.34, 1270.35(A)(1)(intro.
para.) and (2)(a)(ii) and (C), 1270.36(B), 1270.40, 1270.41, 1274(B)(intro. para.) and (C)-
(E), R.S. 36:4.1(C)(13)-(15), and R.S. 37:1892(3), 1893(C)(4)(a) and (d) and (D), and 1894;
Adds R.S. 32:1253(A)(5) and (I), 1254(A)(20)-(31), 1254(B)(3), 1255(A)(6)-(9), 1260(G)
and (H), Chapter 6-A of Title 32 of the Louisiana Revised Statutes of 1950, to be comprised
of R.S. 32:1270.51-1270.72; Repeals R.S. 32:781-808 and 1252(9), (61), (63), (65), (66),
(68), (71), and (72))
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