PART II. USED MOTOR VEHICLE DEALERS
§791. Application for license; fee; 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
(2) The commission shall require in such application, or otherwise, information
(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)(i) Every application for the issuance of a used motor vehicle dealer's license shall
be accompanied by, or supported by, such evidence as the commission shall prescribe,
documenting that the dealership's general manager, office manager, title clerk, or other
responsible representative of the dealership has attended a four-hour educational seminar or
has registered to attend such seminar within sixty days after issuance of the license. The
failure to attend the seminar shall be considered a violation of this Part. The educational
seminar shall include but is not limited to the dealer requirements of this Part and the rules
promulgated to implement, enforce, and administer this Part. Additionally, the seminar
materials shall include a presentation of the requirements of the Department of Public Safety
and Corrections, office of motor vehicles, the Department of Revenue, and such other
information that will promote good business practices. Such educational seminar
requirement shall not include written or oral exams.
(ii) The educational seminar shall be designed to develop and present educational
programs that enhance the knowledge and competence of used motor vehicle dealers, their
salespersons, and service personnel for the benefit of the public. The commission may
approve any nonprofit corporation organized for the purpose of representing licensees of this
commission to administer the educational seminar program and may approve any for-profit
corporation, association, or other entity that is associated with the used car industry to
conduct the seminar and certify completion of the required attendance. However, the
commission shall investigate the qualifications of and shall have the authority to approve or
deny approval of all entities that desire to conduct an educational seminar for motor vehicle
dealer applicants and motor vehicle dealers.
(iii) The commission shall approve a uniform document used to certify completion
of the seminar and all materials used in conducting the seminar. The commission shall
approve all fees charged for materials and attendance to the seminar.
(iv) The commission shall promulgate rules to implement this 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
(c) Any dealer having a previous annual license shall be presumed to be a renewal
(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
(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
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.