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Rs 32:1254 Application For License; Requirements For Licensure; Contents; Licenses; Franchise Filings; Exceptions

§1254. Application for license; requirements for licensure; contents; licenses; franchise

filings; exceptions

A. The following persons shall be licensed by the commission in order to engage in

business in the state of Louisiana, regardless of whether or not said person maintains or has

a place or places of business in this state, and it is a violation of this Chapter to operate

without first obtaining a license:

(1) Manufacturers.

(2) Motor vehicle dealers.

(3) Factory branches.

(4) Distributors or wholesalers.

(5) Distributor branches.

(6) Used motor vehicle facilities operated by new motor vehicles dealers, motor

vehicle lessors, specialty vehicles dealers, or recreational products dealers.

(7) Satellite warranty and repair centers.

(8) Brokers.

(9) Motor vehicle lessor franchisors.

(10) Motor vehicle lessors.

(11) Motor vehicle lease facilitators.

(12) Converters or secondary manufacturers.

(13) Specialty vehicle dealers.

(14) Factory representatives.

(15) Distributor representatives.

(16) Motor vehicle salesmen.

(17) Motor vehicle lessor agents.

(18) Recreational products dealers.

(19) Auto shows, trade shows, and exhibitions, including promoters.

B.(1)(a) All applications for license or licenses shall be accompanied by the

appropriate fee or fees in accordance with the schedule set out in R.S. 32:1255. All such fees

shall be nonrefundable. Except as provided in Subparagraph (b) of this Paragraph and

Paragraph (2) of this Subsection, all licenses issued under the provisions of this Chapter in

accordance with the geographical location of the licensee will be for the year beginning and

ending as follows:

1st Commission District--April 1 through March 31.

2nd Commission District--May 1 through April 30.

3rd Commission District--June 1 through May 31.

4th Commission District--July 1 through June 30.

5th Commission District--August 1 through July 31.

6th Commission District--September 1 through August 31.

7th Commission District--October 1 through September 30.

8th Commission District--November 1 through October 31.

(b) Commencing January 1, 2011, licenses shall be issued for a term of two years

initially staggering the two-year license so Commission Districts 1, 3, 5, and 7 will be issued

a one-year license in 2011 and a two-year license thereafter. Recreational product license

fees shall be prorated to cover the period from December 31, 2010, until license renewal.

(2) The license of any recreational products dealer shall expire December 31, 2010,

and the license of any licensee who does not maintain a place of business in this state shall

expire on December thirty-first of each year.

C. General licensing and compliance requirements for all license applicants and

holders:

(1) All applications for licenses required to be obtained under provisions of this

Chapter shall be verified by the oath or affirmation of the applicant and 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

applied for.

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

relating to the applicant's business integrity, whether the applicant is primarily engaged in

the pursuit, avocation, or business for which a license or licenses is applied, the particular

qualifications and requirements pertaining to the license or licenses sought, and whether the

applicant is able to properly conduct the business for which a license or licenses is applied,

and such other pertinent information consistent with the safeguarding of the public interest

and public welfare.

(3) In the performance of its duties under this Section, the commission shall have the

authority to obtain from the Department of Public Safety and Corrections and other

governmental agencies information relating to the criminal records of applicants for licenses

under this Chapter. The information in such records shall be kept confidential by the

commission.

(4) All licensees must operate from an established place of business properly zoned

in the municipality in which the licensee operates.

(5) All licenses and renewals are issued subject to all provisions of this Chapter and

rules of the commission in effect upon date of issuance, as well as any subsequent

amendments to, enactments of, or repeals of any provisions in this Chapter and rules which

may become effective during the term of the license.

(6) Any person serving in more than one capacity or having more than one place

where such business is carried on or conducted shall be required to obtain and hold a current

license for each capacity and place of business.

(7) The license issued to any licensee shall specify the location of the licensee's

established place of business.

(8) In determining whether or not to issue a license to any applicant, the commission

shall consider the information provided above, the declaration of public policy set forth in

R.S. 32:1251, as well as all of the following:

(a) Business integrity of the applicant.

(b) Ability of the applicant to conduct properly the business for which the license is

sought.

(c) Effect on the business for which the license is sought and the effect on the

consuming public in the community or territory and the state of Louisiana.

(9) All applications for license pursuant to this Chapter shall include evidence the

applicant has insurance covering its place of business and its operation that complies with

the financial responsibility laws of this state and as determined by the applicant and its

insurance agent, that is necessary to provide coverage to the place and nature of the business

sought to be licensed to protect the applicant and the consumers of this state. Failure to

maintain such insurance shall result in the immediate suspension of license, which

suspension shall be effective as of the date of the failure to maintain insurance coverage or

until proof of the required insurance is furnished to the commission. If no proof is furnished

to the commission within thirty days, the license of such licensee shall be revoked.

(10) All foreign persons seeking or maintaining a license under this Chapter must

be registered to do business in this state with the secretary of state. Evidence showing such

registration shall be furnished by such applicant or licensee.

(11) No license issued under this Chapter shall be transferable.

(12) At least sixty days prior to the receipt by the commission of an application by

a licensee for the establishment of new location required to be licensed under the provisions

of this Chapter, for a change of location, change in corporate ownership or majority

ownership, change in the name of licensee, change in the makes, models, or classifications

of vehicles designated in the franchise or any addendum thereto and manufactured,

distributed, or sold, the addition of makes, models, or classifications of vehicles designated

in the franchise or any addendum thereto and manufactured, converted, distributed, or sold,

or a change in the identity of the designated dealer-operator of a licensee the commission

must receive a written notice from the person seeking to effect such change. This sixty-day

notice shall provide such information as the commission in its discretion may require. The

sixty-day notice may be waived by the commission, when, in its discretion, the commission

feels that such waiver would be in the best interest of the public welfare.

D. Additional licensing and compliance requirements for manufacturers, distributors,

wholesalers, converters or secondary manufacturers, distributors or wholesalers, factory

branches and distributor branches:

(1) The commission shall require, in all manufacturer, converter or secondary

manufacturer, distributor or wholesaler, factory branch and distributor branch applications

or otherwise, information relating to the applicant's financial standing and whether the

applicant has an established place of business.

(2) All manufacturers, converters or secondary manufacturers, distributors or

wholesalers, factory branches and distributor branches must provide a suitable office and

have a permanently affixed sign in front of the establishment.

(3) All manufacturers, converters or secondary manufacturers, distributors or

wholesalers, factory branches and distributor branches must have a usable telephone at the

place of business, the number of which should be listed on the application for license, and

also listed in a local directory accessible to the public, where applicable. The commission

must be notified of any change in the telephone number.

(4)(a) The license issued to each manufacturer, converter or secondary manufacturer,

distributor or wholesaler, factory branch or distributor branch shall specify the location of

the office or factory, or branch thereof, and the makes, models, or classifications of motor

vehicles, recreational products, or specialty vehicles to be manufactured, distributed, or

converted. The license issued to any manufacturer, converter or secondary manufacturer,

distributor or wholesaler, factory branch or distributor branch shall specify the location of

such manufacturer's established place of business.

(b) A change of location, or a change in corporate ownership or majority ownership,

or a change in the name of a licensee, or a change by a licensee in the makes, models, or

classifications, requiring an addendum to a franchise agreement, of motor vehicles,

recreational products, or specialty vehicles manufactured, distributed, or converted, or the

addition of a make of motor vehicle or recreational product manufactured, distributed, or

converted shall require a new license and application therefor.

(5) In determining whether or not to issue a license to a manufacturer, converter or

secondary manufacturer, distributor or wholesaler, factory branch and distributor branch, the

commission shall also consider the financial standing of the applicant and the adequacy of

the applicant's established place of business for the purpose for which a license is sought.

(6) Repealed by Acts 2013, No. 61, §2.

(7) Upon execution of a franchise, or addendum thereto, with a motor vehicle dealer,

recreational products dealer, or specialty vehicle dealer, the manufacturer, distributor,

wholesaler, or a convertor or secondary manufacturer shall immediately file with the

commission a copy of the franchise or addendum.

E. Additional licensing and compliance requirements for motor vehicle and

recreational products dealers.

(1) The commission shall also require, in all motor vehicle and recreational products

dealer applications or otherwise, information relating to the applicant's financial standing and

established place of business.

(2) All motor vehicle and recreational products dealers must provide a suitable office

and have a permanently affixed sign in front of the establishment of offices which denotes

that vehicles are offered for sale, lease or rent at the location to which the sign is affixed.

(3) All motor vehicle and recreational products dealers must have a usable telephone

at the place of business, the number of which should be listed on the application for license

and in a local directory accessible to the public. The commission must be notified of any

change in the telephone number.

(4)(a) Applications for license as motor vehicle and recreational products dealer

must, in addition to the foregoing, also be accompanied by the filing with the commission

of a bona fide contract or franchise in effect between the applicant and a manufacturer or

distributor of the new motor vehicle or vehicles or recreational product or products proposed

to be dealt in for a specific location in the state of Louisiana.

(b) However, if such contract or franchise has already been filed with the

commission in connection with a previous application made by such applicant, in which

event the applicant shall, in lieu of again filing the contract or franchise, identify same by

appropriate reference and file all revisions and additions, if any, which have been made to

said contract or franchise.

(5) The applicant must also furnish satisfactory evidence that the applicant maintains

adequate space in the building or structure wherein the applicant's established business is

conducted for the display of new motor vehicles or recreational products, together with

adequate facilities for the repair and servicing of motor vehicles or recreational products and

the storage of new parts and accessories for same.

(6) The application shall also identify the individual named as dealer-operator, and

shall contain such information as the commission deems necessary to enable it to fully

determine his qualifications and eligibility to serve in that capacity.

(7) All motor vehicle or recreational products dealer applications for license pursuant

to this Chapter shall include evidence the applicant has insurance covering its place of

business and its operation that complies with the financial responsibility laws of this state

and as determined by the applicant and its insurance agent, that is necessary to provide

coverage to the place and nature of the business sought to be licensed to protect the applicant

and the consumers of this state. Such insurance shall be maintained throughout the period

of licensure. Failure to maintain such insurance shall result in the immediate suspension of

license, which suspension shall be effective as of the date of the failure to maintain such

insurance coverage until proof of the required insurance is furnished to the commission.

Should no proof of insurance be furnished to the commission within thirty days, the license

of such licensee shall be revoked.

(8) In determining whether or not to issue a license to a motor vehicle or recreational

products dealer, the commission shall also consider the financial standing of the motor

vehicle or recreational products dealer, the adequacy of the motor vehicle or recreational

products dealer's established place of business for the purpose for which a license is sought,

and the effect on the motor vehicle or recreational products sale or leasing/rental business

and the consuming public in the state of Louisiana.

(9)(a) The license issued to each motor vehicle or recreational products dealer shall

specify the location of the office and the makes, models, or classifications of motor vehicles

or recreational products to be sold, and the name of the dealer-operator. The license issued

to a motor vehicle dealer shall specify the licensee's established place of business.

(b) A change of location, or a change in corporate ownership or majority ownership,

or a change in the name of a licensee, or a change by a licensee in the makes, models, or

classifications, requiring an addendum to a franchise agreement, of motor vehicles or

recreational products sold, or the addition of a make of motor vehicles or recreational

products sold or a change in the designation of the dealer-operator shall require a new license

and application therefor.

(c) Notwithstanding the provisions of Subparagraph (b) of this Paragraph, a licensed

motor vehicle or recreational products dealer shall not be required to submit an application

for and obtain a new license if ownership interests in the dealership changes among existing

family member owners, as long as the identity of the majority owner does not change, no

additional persons are added as owners, and all changes in ownership interest are declared

in the renewal application. For the purposes of this Subparagraph, "family member owners"

shall include the majority owner's children, the spouses of his children, his brothers and their

spouses, his sisters and their spouses, parents, his spouse, the parents of his spouse, and his

grandchildren.

(d) Notwithstanding any other provisions of law to the contrary, any motor vehicle

or recreational products dealer holding a license hereunder shall not be required to obtain a

license as a motor vehicle lessor, used motor vehicle dealer, or specialty vehicle dealer or

converter, when modifying or selling those vehicles or products he is duly franchised and

licensed to sell, provided such operations are conducted from the location from which such

motor vehicle or recreational products dealer is licensed to do business.

(10)(a) Before any motor vehicle or recreational products dealer license is issued to

an applicant under the provisions of this Chapter, a good and sufficient surety bond, executed

by the applicant as principal and by a surety company qualified to do business in Louisiana

as surety, in the sum of twenty thousand dollars, shall be delivered to the commission.

(b) Such bond shall be in a form to be approved by the commission and shall be

conditioned so that the licensee shall comply with the conditions of any written contract

made by such licensee and shall not violate any of the provisions of this Chapter or any other

law of Louisiana in the conduct of the business for which he is licensed. Such bond shall be

made payable to the secretary of the Department of Public Safety and Corrections or to his

successor in office, for the use, benefit, and indemnity of any persons who shall suffer any

loss as a result of any violation of the conditions hereinabove contained. Such 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 one year shall in no event exceed the sum of such bond. Failure to

maintain such bond shall result in the immediate suspension of the license, which suspension

shall be effective as of the date of the failure to maintain the bond until proof of the required

bond is furnished to the commission. Should no proof of a bond be furnished to the

commission within thirty days, the license shall be revoked.

(11) Upon execution of a franchise, or addendum thereto, the motor vehicle or

recreational product dealer shall immediately file with the commission a copy of the

franchise or addendum.

F. Additional licensing and compliance requirements for used motor vehicle facilities

operated by new motor vehicle dealers, motor vehicle lessors and specialty vehicle dealers:

(1) The commission shall also require, in all used motor vehicle facility applications

or otherwise, information relating to the applicant's financial standing and whether the

applicant has an established place of business.

(2) All used motor vehicle facilities licensed by the commission must provide a

suitable office and have a permanently affixed sign in front of the establishment, which

denotes that vehicles are offered for sale at the location to which the sign is affixed.

(3) All used motor vehicle facilities licensed by the commission must have a useable

telephone at the place of business, the number of which should be listed on the application

for license and in a local directory accessible to the public. The commission must be notified

of any change in the telephone number.

(4) All used motor vehicle facilities licensed by the commission shall furnish, in their

application for license pursuant to this Chapter, evidence the applicant has insurance

covering its place of business and its operation that complies with the financial responsibility

laws of this state and as determined by the applicant and its insurance agent, that is necessary

to provide coverage to the place and nature of the business sought to be licensed to protect

the applicant and the consumers of this state. Such insurance shall be maintained throughout

the period of licensure. Failure to maintain such insurance shall result in the immediate

suspension of license, which suspension shall be effective as of the date of the failure to

maintain such insurance coverage until proof of the required insurance is furnished to the

commission. Should no proof of insurance be furnished to the commission within thirty

days, the license of such licensee shall be revoked.

(5) In determining whether or not to issue a license to a used motor vehicle facility

licensed by the commission, the commission shall also consider the financial standing of the

used motor vehicle facility and the adequacy of the used motor vehicle facility's established

place of business for the purpose for which a license is sought, the effect on the used motor

vehicle sales business and the consuming public in the state of Louisiana.

(6)(a) The license issued to any used motor vehicle facility licensed by the

commission shall specify the location of such licensee's established place of business.

(b) A change of location, or a change in corporate ownership or majority ownership,

or a change in the name of a used motor vehicle facility licensed by the commission shall

require a new license and application therefor.

(7) Applicants for and holders of used motor vehicle dealer licenses shall obtain and

maintain bonds in accordance with the following provisions:

(a) Before any used motor vehicle dealer license is issued to an applicant under the

provisions of this Chapter, a good and sufficient surety bond, executed by the applicant as

principal and by a surety company qualified to do business in Louisiana as surety, in the sum

of ten thousand dollars, shall be delivered to the commission. If a used motor vehicle dealer

operates from more than one location, a bond in the amount of ten thousand dollars shall be

required for each location.

(b) Such bond shall be in a form to be approved by the commission and shall be

conditioned so that the licensee shall comply with the conditions of any written contract

made by such licensee and shall not violate any of the provisions of this Chapter or any other

law of Louisiana in the conduct of the business for which he is licensed. Such bond shall be

made payable to the secretary of the Department of Public Safety and Corrections or to his

successor in office, for the use, benefit, and indemnity of any persons who shall suffer any

loss as a result of any violation of the conditions hereinabove contained. Such 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 one year shall in no event exceed the sum of such bond. Failure to

maintain such bond shall result in the immediate suspension of the license, which suspension

shall be effective as of the date of the failure to maintain the bond until proof of the required

bond is furnished to the commission. Should no proof of a bond be furnished to the

commission within thirty days, the license shall be revoked.

G. Additional licensing and compliance requirements for satellite warranty and repair

centers.

(1) The commission shall require, in all satellite warranty and repair center

applications or otherwise, information relating to the applicant's financial standing and

whether the applicant has an established place of business.

(2) All satellite warranty and repair centers must provide a suitable office and have

a permanently affixed sign in front of the establishment.

(3) All satellite warranty and repair centers must have a usable telephone at the place

of business, the number of which should be listed on the application for license and in a local

directory accessible to the public. The commission must be notified of any change in the

telephone number.

(4)(a) All satellite warranty and repair centers shall, within the contents of their

application for a license pursuant to this Chapter, furnish evidence that the applicant

maintains an insurance policy, which complies with the financial responsibility laws of

Louisiana, that covers both its place of business and its operation and that the applicant

maintains any additional insurance policy determined to be necessary, either relative to the

place of business or relative to the nature of the operation sought to be licensed, to protect

both the applicant and relevant consumers.

(b) The insurance required pursuant to this Paragraph shall be maintained throughout

the period of licensure.

(c) Any failure to maintain the insurance required pursuant to this Paragraph shall

result in the immediate suspension of license. The suspension shall be effective as of the

date of the failure to maintain the insurance coverage and remains effective until proof of the

required insurance is furnished to the commission. If no proof of insurance is furnished to

the commission within thirty days, the license of the licensee shall be revoked.

(5)(a) The license issued to any satellite warranty and repair center shall specify the

location of such satellite warranty and repair center's established place of business.

(b) A change of location, or a change in corporate ownership or majority ownership,

or a change in the name of a satellite warranty and repair center shall require a new license

and application therefor.

(6) In determining whether or not to issue a license to a satellite warranty and repair

center, the commission shall also consider the adequacy of the satellite warranty and repair

center's established place of business for the purpose for which a license is sought.

(7) Applicants for and holders of satellite warranty and repair center licenses shall

obtain and maintain bonds in accordance with the following provisions:

(a) Before any satellite warranty and repair center license is issued to an applicant

under the provisions of this Chapter, a good and sufficient surety bond, executed by the

applicant as principal and by a surety company qualified to do business in Louisiana as

surety, in the sum of twenty thousand dollars, shall be delivered to the commission.

(b) Such bond shall be in a form to be approved by the commission and shall be

conditioned so that the licensee shall comply with the conditions of any written contract

made by such licensee and shall not violate any of the provisions of this Chapter or any other

law of Louisiana in the conduct of the business for which he is licensed. Such bond shall be

made payable to the secretary of the Department of Public Safety and Corrections or to his

successor in office, for the use, benefit, and indemnity of any persons who shall suffer any

loss as a result of any violation of the conditions hereinabove contained. Such 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 one year shall in no event exceed the sum of such bond. Failure to

maintain such bond shall result in the immediate suspension of the license, which suspension

shall be effective as of the date of the failure to maintain the bond until proof of the required

bond is furnished to the commission. Should no proof of a bond be furnished to the

commission within thirty days, the license shall be revoked.

H. Additional licensing and compliance requirements for brokers.

(1) The commission shall require, in all broker applications or otherwise, information

relating to the applicant's financial standing and whether the applicant has an established

place of business.

(2) All brokers must provide a suitable office and have a permanently affixed sign

in front of the establishment.

(3) All brokers must have a usable telephone at the place of business, the number of

which should be listed on the application for license, and also in a local directory accessible

to the public, where applicable. The commission must be notified of any change in the

telephone number.

(4)(a) The license issued to any broker shall specify the location of such broker's

established place of business.

(b) A change of location, or a change in corporate ownership or majority ownership,

or a change in the name of a broker shall require a new license and application therefor.

(5) In determining whether or not to issue a license to a broker, the commission shall

also consider the financial standing of the broker and the adequacy of the broker's established

place of business for the purpose for which a license is sought, the effect on the motor

vehicle brokerage business and the consuming public in the state of Louisiana.

(6) Applicants for and holders of broker licenses shall obtain and maintain bonds in

accordance with the following provisions:

(a) Before any broker license is issued to an applicant under the provisions of this

Chapter, a good and sufficient surety bond, executed by the applicant as principal and by a

surety company qualified to do business in Louisiana as surety, in the sum of twenty

thousand dollars, shall be delivered to the commission.

(b) Such bond shall be in a form to be approved by the commission and shall be

conditioned so that the licensee shall comply with the conditions of any written contract

made by such licensee and shall not violate any of the provisions of this Chapter or any other

law of Louisiana in the conduct of the business for which he is licensed. Such bond shall be

made payable to the secretary of the Department of Public Safety and Corrections or to his

successor in office, for the use, benefit, and indemnity of any persons who shall suffer any

loss as a result of any violation of the conditions hereinabove contained. Such 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 one year shall in no event exceed the sum of such bond. Failure to

maintain such bond shall result in the immediate suspension of the license, which suspension

shall be effective as of the date of the failure to maintain the bond until proof of the required

bond is furnished to the commission. Should no proof of a bond be furnished to the

commission within thirty days, the license shall be revoked.

(7) A person acting as a broker in a transaction involving the sale for purposes other

than resale, of a used motor vehicle must be licensed and regulated under the provisions of

Chapter 4-B of Title 32 of the Louisiana Revised Statutes of 1950.

I. Additional licensing and compliance requirements for motor vehicle lessor

franchisors.

(1) The commission shall require, in all motor vehicle lessor franchisor applications

or otherwise, information relating to the applicant's financial standing and whether the

applicant has an established place of business.

(2) All motor vehicle lessor franchisors must provide a suitable office and have a

permanently affixed sign in front of the establishment.

(3) All motor vehicle lessor franchisors must have a usable telephone at the place of

business, the number of which should be listed on the application for license, and listed in

a local directory accessible to the public, where applicable. The commission must be

notified of any change in the telephone number.

(4)(a) The license issued to any motor vehicle lessor franchisor shall specify the

location of such motor vehicle lessor franchisor's established place of business.

(b) A change of location, or a change in corporate ownership or majority ownership,

or a change in the name of a motor vehicle lessor franchisor shall require a new license and

application therefor.

(5) In determining whether or not to issue a license to a motor vehicle lessor

franchisor, the commission shall also consider the financial standing of the motor vehicle

lessor franchisor and the adequacy of the motor vehicle lessor franchisor's established place

of business for the purpose for which a license is sought.

(6) Upon execution of a franchise, or addendum thereto, with a motor vehicle lessor,

the motor vehicle lessor franchisor shall immediately file with the commission a copy of the

franchise or addendum.

J. Additional licensing and compliance requirements for motor vehicle lessors:

(1) The commission shall also require, in all motor vehicle lessor applications or

otherwise, information relating to the applicant's financial standing and whether the applicant

has an established place of business.

(2) All motor vehicle lessors must provide a suitable office and have a permanently

affixed sign in front of the establishment of offices which denotes that vehicles are offered

for lease or rent at the location to which the sign is affixed.

(3) All motor vehicle lessors must have a usable telephone at the place of business,

the number of which should be listed on the application for license, and listed in a local

directory accessible to the public, where applicable. The commission must be notified of any

change in the telephone number.

(4)(a) Applications for license as motor vehicle lessor must, in addition to the

foregoing, also be accompanied by the filing with the commission of any bona fide contract

or franchise in effect between the applicant and a motor vehicle lessor franchisor of the new

motor vehicle or vehicles proposed to be dealt in for a specific location in the state of

Louisiana.

(b) However, if such contract or franchise has already been filed with the

commission in connection with a previous application made by such applicant, in which

event the applicant shall, in lieu of again filing the contract or franchise, identify same by

appropriate reference and file all revisions and additions, if any, which have been made to

said contract or franchise.

(5) All motor vehicle lessors, in their application for license pursuant to this Chapter,

shall include evidence the applicant has insurance covering its place of business and its

operation that complies with the financial responsibility laws of this state and as determined

by the applicant and its insurance agent, that is necessary to provide coverage to the place

and nature of the business sought to be licensed to protect the applicant and the consumers

of this state. Such insurance must be maintained throughout the period of licensure. Failure

to maintain such insurance shall result in the immediate suspension of license, which

suspension shall be effective as of the date of the failure to maintain such insurance coverage

until proof of the required insurance is furnished to the commission. Should no proof of

insurance be furnished to the commission within thirty days, the license of such licensee shall

be revoked.

(6)(a) The license issued to a motor vehicle lessor shall specify the licensee's

established place of business.

(b) A change of location, or a change in corporate ownership or majority ownership,

or a change in the name of a motor vehicle lessor shall require a new license and application

therefor.

(7) In determining whether or not to issue a license to a motor vehicle lessor, the

commission shall also consider the financial standing of the motor vehicle lessor, the

adequacy of the motor vehicle lessor's established place of business for the purpose for which

a license is sought, and the effect on the motor vehicle leasing/rental business and the

consuming public in the state of Louisiana.

K. Additional licensing and compliance requirements for motor vehicle lease

facilitators.

(1) The commission shall also require, in all motor vehicle lease facilitator

applications or otherwise, information relating to the applicant's financial standing and

whether the applicant has an established place of business.

(2) All motor vehicle lease facilitators must provide a suitable office and have a

permanently affixed sign in front of the establishment.

(3) All motor vehicle lease facilitators must have a useable telephone at the place of

business, the number of which should be listed on the application for license, and also in a

local directory accessible to the public, where applicable. The commission must be notified

of any change in the telephone number.

(4) In determining whether or not to issue a license to a motor vehicle lease

facilitator, the commission shall also consider the financial standing of the motor vehicle

lease facilitator and the adequacy of the motor vehicle lease facilitator's established place of

business for the purpose for which a license is sought.

(5)(a) The motor vehicle lease facilitators shall specify the location of such motor

vehicle lease facilitator's established place of business.

(b) A change of location, or a change in corporate ownership or majority ownership,

or a change in the name of a motor vehicle lease facilitator, shall require a new license and

application therefor.

L. Additional licensing and compliance requirements for specialty vehicle dealers: (1) The commission shall also require, in all specialty vehicle dealer applications or

otherwise, information relating to the applicant's financial standing and whether the applicant

has an established place of business.

(2) All specialty vehicle dealers must provide a suitable office and have a

permanently affixed sign in front of the establishment of offices which denotes that vehicles

are offered for sale at the location to which the sign is affixed.

(3) All specialty vehicle dealers must have a usable telephone at the place of

business, the number of which should be listed on the application for license, and also in a

local directory accessible to the public, where applicable. The commission must be notified

of any change in the telephone number.

(4)(a) Applications for license as a specialty vehicle dealer must, in addition to the

foregoing, also be accompanied by the filing with the commission of a bona fide contract or

franchise in effect between the applicant and a converter or secondary manufacturer of the

specialty vehicle or vehicles proposed to be dealt in for a specific location.

(b) However, if such contract or franchise has already been filed with the

commission in connection with a previous application made by such applicant, in which

event the applicant shall, in lieu of again filing the contract or franchise, identify same by

appropriate reference and file all revisions and additions, if any, which have been made to

said contract or franchise.

(5) All specialty vehicle dealers, in their application for license pursuant to this

Chapter, shall include evidence the applicant has insurance covering its place of business and

its operation that complies with the financial responsibility laws of this state and as

determined by the applicant and its insurance agent, that is necessary to provide coverage to

the place and nature of the business sought to be licensed to protect the applicant and the

consumers of this state. Such insurance must be maintained throughout the period of

licensure. Failure to maintain such insurance shall result in the immediate suspension of

license, which suspension shall be effective as of the date of the failure to maintain such

insurance coverage until proof of the required insurance is furnished to the commission. If

no proof of insurance is furnished to the commission within thirty days, the license of such

licensee shall be revoked.

(6)(a) The license issued to each specialty vehicle dealer shall specify the location

of the office and the makes, models, or classifications of specialty vehicles to be sold. The

license issued to a specialty vehicle dealer shall specify the licensee's established place of

business.

(b) A change of location, or a change in corporate ownership or majority ownership,

or a change in the name of a licensee, or a change by a licensee in the makes, models or

classifications, requiring an addendum to a franchise agreement of specialty vehicles sold,

or the addition of a make of motor vehicle sold shall require a new license and application

therefor.

(7) In determining whether or not to issue a license to a specialty vehicle dealer, the

commission shall also consider the financial standing of the specialty vehicle dealer and the

adequacy of the specialty vehicle dealer's established place of business for the purpose for

which a license is sought.

(8) Applicants for and holders of specialty vehicle dealer licenses shall obtain and

maintain bonds in accordance with the following provisions:

(a) Before any specialty vehicle dealer license is issued to an applicant under the

provisions of this Chapter, a good and sufficient surety bond, executed by the applicant as

principal and by a surety company qualified to do business in Louisiana as surety, in the sum

of twenty thousand dollars, shall be delivered to the commission.

(b) Such bond shall be in a form to be approved by the commission and shall be

conditioned so that the licensee shall comply with the conditions of any written contract

made by such licensee and shall not violate any of the provisions of this Chapter or any other

law of Louisiana in the conduct of the business for which he is licensed. Such bond shall be

made payable to the secretary of the Department of Public Safety and Corrections or to his

successor in office, for the use, benefit, and indemnity of any persons who shall suffer any

loss as a result of any violation of the conditions hereinabove contained. Such 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 one year shall in no event exceed the sum of such bond. Failure to

maintain such bond shall result in the immediate suspension of the license, which suspension

shall be effective as of the date of the failure to maintain the bond until proof of the required

bond is furnished to the commission. Should no proof of a bond be furnished to the

commission within thirty days, the license shall be revoked.

M. Additional licensing and compliance requirements for motor vehicle salesmen,

motor vehicle lessor agents, factory representatives, and distributor representatives.

(1) Every motor vehicle salesman, factory representative, distributor representative,

and motor vehicle lessor agent shall have his license upon his person when engaged in his

business and shall display same upon request. The name of said licensee's employer shall

be stated in said license.

(2) In determining whether or not to issue a license to any motor vehicle salesman

or motor vehicle lessor agent, the commission shall also consider the effect of such licensure

on the motor vehicle leasing/rental business and the consuming public.

N. Any person who sells or offers to sell new motor vehicles, recreational products,

or specialty vehicles, or leases, rents, or offers to lease or rent new motor vehicles,

recreational products, or specialty vehicles, or conducts and designs advertising or

participates in special sales events on behalf of licensees, and which is not a licensee of the

commission shall, nonetheless, be subject to the provisions of Chapter 6 of Title 32 and the

rules and regulations of the commission.

O. Notwithstanding the provisions of this Chapter and the provisions of Subsection

N of this Section to the contrary, this Chapter shall not apply to specialty vehicle dealers who

manufacture wheeled, armored personnel carriers for sale to law enforcement agencies and

who do not maintain or have a place of business in this state. The provisions of this

Subsection shall expire on July 1, 2018.

Acts 1985, No. 911, §1; Acts 1985, No. 422, §1, eff. July 10, 1985; Acts 1987, No.

450, §1; Acts 1987, No. 775, §§1, 2; Acts 1989, No. 262, §1; Acts 1989, No. 477, §1; Acts

1989, No. 634, §1; Acts 1990, No. 124, §1; Acts 1990, No. 283, §1, eff. July 5, 1990; Acts

1991, No. 296, §1, eff. July 2, 1991; Acts 1992, No. 258, §1, eff. June 10, 1992; Acts 1993,

No. 536, §§1, 2; Acts 1995, No. 51, §1, 2, eff. June 9, 1995; Acts 1997, No. 87, §1; Acts

1997, No. 211, §1; Acts 1999, No. 785, §1; Acts 1999, No. 981, §1; Acts 1999, No. 1100,

§1; Acts 2001, No. 1054, §1; Acts 2001, No. 1067, §1; Acts 2001, No. 1154, §1; Acts 2003,

No. 251, §1; Acts 2003, No. 917, §1; Acts 2004, No. 250, §1; Acts 2004, No. 276, §1; Acts

2004, No. 348, §1; Acts 2004, No. 409, §1; Acts 2004, No. 670, §1; Acts 2005, No. 500, §1,

eff. July 12, 2005; Acts 2006, No. 352, §1; Acts 2007, No. 27, §1, eff. June 18, 2007; Acts

2008, No. 415, §2, eff. Jan. 1, 2009; Acts 2009, No. 403, §1, eff. July 7, 2009; Acts 2010,

No. 1036, §1; Acts 2011, No. 89, §1; Acts 2013, No. 61, §2; Acts 2015, No. 435, §1; Acts

2017, No. 45, §1, eff. June 3, 2017.

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Local Government
Louisiana
3
1
0
John Bel Edwards
John Bel Edwards
January 11, 2016 -
Democratic
1-225-342-4404
900 North 3rd Street, Baton Rouge, LA, 70802

Keywords
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