§1258. Denial, revocation, grounds, imposition of a civil penalty, or suspension of license;
A. The commission may, in addition to imposing a civil penalty pursuant to the
provisions of this Chapter, deny an application for a license or revoke or suspend a license
after it has been granted for any of the following reasons:
(1) On satisfactory proof of unfitness of the applicant or the licensee, as the case may
be, under the standards established and set out in this Chapter.
(2) For fraud practiced or any material misstatement made by an applicant in any
application for license under the provisions of this Chapter.
(3) For any failure to comply with any provision of this Chapter or with any rule or
regulation adopted and promulgated by the commission under authority vested in it by this
(4) Change of condition after license is granted or failure to maintain the
qualifications for license.
(5) Continued or flagrant violation of any of the rules or regulations of the
(6) For any violation of any law relating to the sale, lease, rental, distribution, or
financing of vehicles.
(7) Should the applicant have been convicted of a felony or entered a plea of guilty
or nolo contendere to a felony charge under the law of the United States or of this or any
(8) Upon a finding that, considering the matters set forth in the applicable paragraphs
of R.S. 32:1254, the public interest is not served by the issuance of the license sought or
continuance of the license previously granted.
(9) Failure to provide any bond or insurance required by this Chapter.
(10) Whenever a marine dealer intentionally removes marine engines from a boat
package for the purpose of selling those engines separately in violation of a full-line marine
engine dealer's area of responsibility, except that which may be done by a full-line dealer of
that particular engine as it may be permitted under his full-line franchise agreement.
B. The commission may without prior notice deny the application for a license
within thirty days after receipt thereof by written notice to the applicant stating the grounds
for such denial. Upon request by the applicant whose license has been so denied, the
commission shall set the time and place of hearing a review of such denial, the same to be
heard with reasonable promptness.
C. The commission may suspend or revoke a license issued or impose a civil penalty
only after a hearing of which the licensee affected shall be given at least ten days written
notice specifying the grounds or reasons for suspension, revocation, or penalty. Such notice
may be served as provided by law for the service of notices or by mailing a copy by
registered or certified mail to the last known residence or business address of such licensee.
D.(1) The hearing on denial of a license, suspension or revocation of a license, or
imposition of a civil penalty shall be at such time and place as the commission may prescribe
and the affected applicant or licensee shall be notified of such time and place at least ten days
prior to the date of hearing. The hearing shall be scheduled to be held within sixty days of
notification to the licensee or applicant of the violation. The commission shall in like
manner also notify the person, firm, association, corporation, or trust with whom the
applicant or licensee is associated, or in whose association he is about to enter. The
commission shall have the power to compel the production of records and papers bearing
upon the application or complaints. The commission shall have the power to subpoena and
bring before it any person in this state, or take testimony of any such person by deposition
in the same manner as prescribed by law in judicial procedure before courts of the state in
civil cases. Any party to such hearing shall have the right to procure the attendance of
witnesses in his behalf upon designating to the commission the person or persons sought to
(2) If the commissioner shall determine that any applicant is not qualified to receive
a license, a license shall not be granted to said applicant, and if the commission shall
determine that any licensee is guilty of a violation of any of the provisions of this Chapter
or the rules and regulations of the commission his or its license may be suspended or
revoked, or a civil penalty may be imposed, or both.
E. All licenses shall be granted or refused within thirty days after application
therefor, and shall expire as provided in this Chapter, unless sooner revoked or suspended,
except that where a complaint of unfair cancellation of a dealer franchise is in process of
being heard, no replacement application for such franchise shall be considered until a
decision is rendered by the commission.
Acts 2005, No. 500, §1, eff. July 12, 2005; Acts 2009, No. 403, §1, eff. July 7, 2009;
Acts 2015, No. 435, §1.