PART II. USED MOTOR VEHICLE DEALERS

§791. Application for license; renewal; fees; educational seminar; bond requirements; liability insurance; salesperson's license; location of business

            A.(1) It shall be unlawful and shall constitute a misdemeanor for any person, firm, association, corporation, limited liability company, or trust to engage in business as, or serve in the capacity of, or act as a used motor vehicle dealer, rental dealer, or used motor vehicle salesperson in this state without first obtaining a license therefor as provided in this Section.

            (2) Any person, firm, association, corporation, limited liability company, or trust engaging, acting, or serving in more than one of the foregoing capacities or having more than one place where the business is carried on or conducted shall be required to obtain and hold a current license for each capacity or location in which he, it, or they shall engage in such business provided that all used motor vehicle dealers shall have at least one licensed salesperson per location.

            (3) Any person, firm, association, corporation, limited liability company, or trust which violates Paragraph (1) of this Subsection or Subparagraph (B)(4)(e) of this Section shall be fined not less than three hundred dollars nor more than one thousand dollars or imprisoned for not more than ninety days, or both.

            B.(1) Applications for licensure as a used motor vehicle dealer shall be signed by the applicant, shall be on forms prescribed by the commission and furnished to such applicants, and shall contain such information as the commission deems necessary to enable it to fully determine the qualifications and eligibility of the several applicants to receive the license or licenses.

            (2) The commission shall require in such application, or otherwise, information relating to:

            (a) The applicant's financial standing.

            (b) The applicant's business integrity.

            (c) Whether the applicant has an established place of business and is engaged in the pursuit, avocation, or business for which each license is applied for.

            (d) Whether the applicant is able to properly conduct the business for which each license is applied for.

            (e) Such other pertinent information consistent with the safeguarding of the public interest and the public welfare.

            (f) The name of the applicant.

            (g) The street address of applicant's principal place of business and each additional place of business.

            (h) The type of business organization of applicant.

            (3)(a) All applications for license or licenses shall be accompanied by the appropriate fee or fees in accordance with the schedule provided in this Section. In the event any application is denied and the license applied for is not issued, the entire license fee shall be returned to the applicant.

            (b) Every application for the issuance of a used motor vehicle dealer's license shall be accompanied by a certificate, as required by the commission pursuant to the provisions of R.S. 32:795, showing that the applicant has completed an approved educational seminar.

            (4)(a) All bonds shall be for the license period and shall be nontransferable.

            (b) Any dealer who submits a renewal application after the expiration date of an existing license shall be subject to a late penalty of one hundred dollars in addition to any penalty, fine, or cost assessed for operating without a license which shall be paid to the commission.

            (c) Any dealer having a previous annual license shall be presumed to be a renewal applicant.

            (d) Any dealer changing the name of the dealership, the dealership's address, the ownership of the dealership, or opening any additional place of business shall notify the commission within ten days of such change or be in violation of this Part.

            (e) Any dealership ceasing to maintain its business shall surrender the dealership license to the commission within ten days and any failure to do so shall constitute a misdemeanor. Violations of this Subparagraph shall be punished as provided in Paragraph (A)(3) of this Section.

            (f) The commission is authorized to adopt rules to implement the provisions of this Section.

            (5) The office of motor vehicles of the Department of Public Safety and Corrections shall be notified not to accept dealers' titles until such time as licenses have been issued.

            C. A used motor vehicle salesperson's license shall permit the licensee to engage in the activities of a used motor vehicle salesperson. Salespersons shall not be allowed to sell vehicles unless applications and fees are on file with the commission and the motor vehicle salesperson's or temporary salesperson's license has been issued. No person shall hold more than one salesperson's license at a time.

            D. The schedule of license fees to be charged and received by the commission for the licenses issued hereunder shall be as follows:

            (1) For each used motor vehicle dealer's license, a maximum of two hundred dollars.

            (2) For a used motor vehicle dealer's license and for each place of business in addition to the principal place of business, one hundred dollars.

            (3) For each used motor vehicle salesperson's license, no more than twenty-five dollars.

            E. The license issued to each used motor vehicle dealer shall specify the location of the place of business. If the business location is changed, the commission shall be notified immediately of the change and the commission may endorse the change of location on the license without charge. The license of each dealer shall be posted in a conspicuous place in the dealer's place or places of business.

            F. Every used motor vehicle salesperson shall have his license upon his person when engaged in his business and shall display same upon request. The name of the employer of the salesperson shall be stated on the license.

            G.(1) Every applicant for licensure or renewal of a license as a used motor vehicle dealer shall show proof of responsibility by depositing with the commission a continuing bond in the amount of fifty thousand dollars. All bonds shall be with a commercial surety authorized to do business in the state and approved by the commission.

            (2) The bond shall be for the license period and a new bond or a proper continuation certificate shall be delivered to the commission at the beginning of each license period; however, the aggregate liability of the surety in any calendar year shall in no event exceed fifty thousand dollars.

            (3) The bond shall be made payable to the state of Louisiana through the commission for the following purposes:

            (a) The proper disposition of taxes, license fees, tags, or certificates of title.

            (b) Indemnification to any purchaser of a used motor vehicle who suffers any loss, damage, or expense due to the failure of the dealer to comply with any law relating to the registration of a used motor vehicle, the payment of sales tax, and obtaining a license tag or certificate of registration, including but not limited to the failure of the licensee to deliver a certificate of title or remit any tax, license, or registration fee.

            (c) Restitution imposed by the commission in accordance with R.S. 32:785(B)(6).

            (d) Unpaid penalties, fines, and hearing costs imposed by the commission not to exceed twenty-five thousand dollars.

            (e) Attorney fees or court costs assessed pursuant to R.S. 32:783.

            H. The bond required by this Section shall be maintained throughout the period of licensure. Should the bond be canceled for any reason, the dealer's license shall be revoked as of the date of cancellation unless a new bond is furnished prior to such date.

            I. All used motor vehicle dealers are required to furnish and keep in force a garage liability policy which would provide coverage for all vehicles offered for sale or used in any other capacity in demonstrating or utilizing the streets and roadways in accordance with the financial responsibility laws of this state. Should the garage liability insurance coverage be allowed to lapse or be canceled for any reason, the dealer license shall be revoked as of the date of cancellation unless proof of a new policy of insurance is furnished prior to such date.

            J. Applicants for licensure pursuant to this Part, other than a used motor vehicle dealer's license shall submit such evidence as the commission shall prescribe, documenting that either the applicant or his general manager, office manager, title clerk, or other responsible representative of the applicant has attended a four-hour educational seminar or has registered to attend such seminar within sixty days after issuance of the license.

            Acts 2006, No. 440, §1; Acts 2008, No. 206, §1; Acts 2010, No. 987, §1; Acts 2016, No. 288, §1; Acts 2018, No. 435, §1, eff. May 23, 2018.