§ 32:1254 — Application for license; requirements for licensure; contents; licenses; franchise

Louisiana § 32:1254

• Jurisdiction: Louisiana
• Title 32: Levees

Text

§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:
(i) 1st Commission District--April 1 through March 31.
(ii) 2nd Commission District--May 1 through April 30.
(iii) 3rd Commission District--June 1 through May 31.
(iv) 4th Commission District--July 1 through June 30.
(v) 5th Commission District--August 1 through July 31.
(vi) 6th Commission District--September 1 through August 31.
(vii) 7th Commission District--October 1 through September 30.
(viii) 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)(a) 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 the repair and servicing.
(b) Notwithstanding the provisions of Subparagraph (a) of this Paragraph and subject
to written approval by the franchisor, adequate facilities for the repair and servicing of motor
vehicles may be physically located in a building directly across a dedicated municipal street,
but not more than one thousand feet from the applicant's established place of business.
(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.
P. Notwithstanding any provision of law to the contrary and the provisions of
Subsection N of this Section, this Chapter shall not apply to the procurement or sale of
towable equipment as defined in this Chapter.

Legislative History

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; Acts 2018, No. 142, §1; Acts 2018, No. 487, §1.