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1 State of Arkansas A Bill
2 95th General Assembly
3 Regular Session, 2025 HOUSE BILL 1989
4
5 By: Representative Cavenaugh
6
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE LAW CONCERNING USED MOTOR
10 VEHICLES BUYERS PROTECTION; TO AMEND THE LAW
11 CONCERNING THE APPLICATION PROCESS FOR A WHOLESALE
12 USED MOTOR VEHICLE DEALER'S LICENSE OR RETAIL USED
13 MOTOR VEHICLE DEALER'S LICENSE; AND FOR OTHER
14 PURPOSES.
15
16
17 Subtitle
18 TO AMEND THE LAW CONCERNING USED MOTOR
19 VEHICLES BUYERS PROTECTION; AND TO AMEND
20 THE LAW CONCERNING THE USED MOTOR
21 VEHICLE DEALER'S LICENSE APPLICATION
22 PROCESS.
23
24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
25
26 SECTION 1. Arkansas Code � 23-112-601 is amended to read as follows:
27 23-112-601. Necessity for regulation -- Legislative findings --
28 Legislative declaration.
29 (a) The General Assembly declares that the public interest is affected
30 by the sale and distribution of used motor vehicles, and it is recognized
31 that a significant factor of the inducement in making a sale of a used motor
32 vehicle to a member of the general public is the trust and confidence of the
33 purchaser in the retail used motor vehicle dealer or wholesale used motor
34 vehicle dealer from whom the purchase is made, with the expectancy that the
35 dealer will remain in business to stand behind and provide service for the
36 motor vehicle purchased.
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1 (b) It is therefore found to be necessary to license retail used motor
2 vehicle dealers and wholesale used motor vehicle dealers and to prohibit
3 certain acts and set penalties for violations and perpetration of certain
4 acts by retail used motor vehicle dealers and wholesale used motor vehicle
5 dealers who are not licensed as new motor vehicle dealers selling used cars
6 incidental to their new motor vehicle dealership operations, salespersons,
7 agents, representatives, and employees of retail used motor vehicle dealers
8 and wholesale used motor vehicle dealers in order to:
9 (1) Prevent fraud, improper impositions, and other abuses upon
10 the citizens of this state;
11 (2) Protect and preserve the investments and properties of the
12 citizens of this state; and
13 (3) Foster and keep alive vigorous and healthy competition by
14 prohibiting unfair practices by which fair and honest competition is
15 destroyed or prevented.
16
17 SECTION 2. Arkansas Code � 23-112-602(1)--(4), concerning the
18 definitions related to used motor vehicle buyers protection, are amended to
19 read as follows:
20 (1)(A) "Auto auction" means any person who operates or provides
21 a place of business or facilities for the wholesale exchange of motor
22 vehicles by and between duly licensed motor vehicle dealers, or from retail
23 used motor vehicle dealers and wholesale used motor vehicle dealers to
24 individuals, or individuals to retail used motor vehicle dealers and
25 wholesale used motor vehicle dealers, or any combination thereof, or any
26 motor vehicle dealer licensed to sell used motor vehicles, selling used motor
27 vehicles using an auction format or on consignment.
28 (B) "Auto auction" also applies to any person who provides
29 the facilities for or is in the business of selling motor vehicles in an
30 auction format;
31 (2) "Designee" means a person or entity that:
32 (A) Agrees to perform inspections of retail used motor
33 vehicle dealers and wholesale used motor vehicle dealers under this
34 subchapter on behalf of the department Division of Arkansas State Police; and
35 (B) The department division determines is appropriately
36 suited for serving as a designee under this subchapter;
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1 (3) "Drafter" means any person who obtains financing for the
2 purchase and resale of vehicles of another person or a retail used motor
3 vehicle dealer or wholesale used motor vehicle dealer through the use of the
4 account of or based on the extension of credit by presenting at the time of
5 purchase of the subject vehicles a documentary draft for purchase of the
6 vehicle or who otherwise promises to pay through the accounts or credit of
7 another person or a retail used motor vehicle dealer or wholesale used motor
8 vehicle dealer;
9 (4) "Licensed location" means the address designated as the
10 business address of the used motor vehicle dealer on his or her application
11 for a retail used motor vehicle dealer's license or a wholesale used motor
12 vehicle dealer's license;
13
14 SECTION 3. Arkansas Code � 23-112-602(7), concerning the definitions
15 related to used motor vehicle buyers protection, is amended to read as
16 follows:
17 (7) "Person" means and includes, individually and collectively,
18 individuals, firms, partnerships, associations, corporations, trusts, or any
19 other form of business, individual enterprise, company, or entity;
20
21 SECTION 4. Arkansas Code � 23-112-602(10)(A)(i), concerning the
22 definitions related to used motor vehicle buyers protection, is amended to
23 read as follows:
24 (10)(A)(i) "Used motor vehicle dealer", hereinafter referred to
25 as or "dealer", means any person, retailer, wholesaler, or auto auction who,
26 for a commission or with intent to make a profit or gain of money or other
27 thing of value, sells, brokers, exchanges, rents, or leases with the option
28 to purchase or own, or attempts to negotiate a sale or exchange of an
29 interest in any used motor vehicle, or who is wholly or in part in the
30 business of buying, selling, trading, or exchanging used motor vehicles,
31 whether or not such motor vehicles are owned by the person.
32
33 SECTION 5. Arkansas Code � 23-112-602(11) and (12), concerning the
34 definitions related to used motor vehicle buyers protection, are amended to
35 read as follows:
36 (11) "Used motor vehicle salesperson", hereinafter referred to
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1 as "salesperson", is anyone who for compensation of any kind operates as a
2 salesperson, broker, agent, or representative of a retail used motor vehicle
3 dealer or wholesale used motor vehicle dealer, or any person who attempts to
4 or in fact negotiates a sale of a vehicle owned partially or entirely by a
5 retail used motor vehicle dealers or wholesale used motor vehicle dealer, or
6 a person or drafter using the financial resources, line of credit, or floor
7 plan of a retail used motor vehicle dealer or wholesale used motor vehicle
8 dealer to purchase, sell, or exchange an interest in a used motor vehicle;
9 and
10 (12)(A) "Wholesaler" or "wholesale used motor vehicle dealer"
11 means any person, resident or nonresident, who, in whole or in part,
12 primarily sells used motor vehicles to motor vehicle dealers.
13 (B) Used Retail used motor vehicle dealers who, incidental
14 to their primary business, sell motor vehicles to other retail used motor
15 vehicle dealers and wholesale used motor vehicle dealers are not considered
16 wholesalers because of their incidental sales.
17
18 SECTION 6. Arkansas Code � 23-112-602, concerning the definitions
19 related to used motor vehicle buyers protection, is amended to add additional
20 subdivisions to read as follows:
21 (13) "Convicted" means that a person plead guilty or nolo
22 contendere to or was found guilty of a criminal offense, including a
23 conviction that has been sealed or expunged; and
24 (14) "Retail used motor vehicle dealer" means a person who sells
25 used motor vehicles to the public.
26
27 SECTION 7. Arkansas Code � 23-112-603(a)(3) and (4), concerning the
28 penalties for a violation of the law concerning used motor vehicle buyers
29 protection, are amended to read as follows:
30 (3) A third or subsequent violation is a Class D felony, and the
31 retail used motor vehicle dealer's or wholesale used motor vehicle dealer's
32 license shall be suspended for three (3) years for each respective third or
33 subsequent violation; and
34 (4)(A) In addition to or instead of the penalties listed under
35 subdivisions (a)(1)-(3) of this section, the Director of the Division of
36 Arkansas State Police may issue a fine in an amount not to exceed one
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1 thousand dollars ($1,000) for each violation of this subchapter.
2 (B) The fines collected under subdivision (a)(4)(A) of
3 this section shall be remitted to the Division of Arkansas State Police and
4 shall be deposited into the State Treasury to the credit of the Division of
5 Arkansas State Police Fund.
6
7 SECTION 8. Arkansas Code � 23-112-603(b), concerning the penalties for
8 a violation of the law concerning used motor vehicle buyers protection, is
9 amended to read as follows:
10 (b) Any person found guilty of selling a used motor vehicle as a
11 dealer or salesperson while his or her retail used motor vehicle dealer's or
12 salesperson's license or wholesale used motor vehicle dealer's or
13 salesperson's license is suspended or revoked shall be guilty of a Class C
14 felony.
15
16 SECTION 9. Arkansas Code � 23-112-603(d), concerning the penalties for
17 a violation of the law concerning used motor vehicle buyers protection, is
18 amended to read as follows:
19 (d)(1) A retail used motor vehicle dealer or wholesale used motor
20 vehicle dealer licensed under this subchapter shall maintain a licensed
21 location.
22 (2) When a retail used motor vehicle dealer or wholesale used
23 motor vehicle dealer changes or moves his or her licensed location, within
24 fifteen (15) calendar days of the relocation, the retail used motor vehicle
25 dealer or wholesale used motor vehicle dealer shall notify the division in
26 writing of the dealership name, the previous location, and the new location.
27 (3)(A) If the division determines that the used motor vehicle
28 dealer's business location of the retail used motor vehicle dealer or
29 wholesale used motor vehicle dealer has moved and notification to the
30 division has not been properly made, the division shall levy a fine equal to
31 the amount of the license fee.
32 (B) The fine collected pursuant to subdivision (d)(3)(A)
33 of this section shall be remitted to the division and shall be deposited into
34 the State Treasury as special revenue to the credit of the division.
35
36 SECTION 10. Arkansas Code �� 23-112-604 through 23-112-607 are amended
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1 to read as follows:
2 23-112-604. Powers generally.
3 (a) The Department Division of Arkansas State Police may promulgate
4 rules that are necessary to implement, enforce, and administer this
5 subchapter.
6 (b) The department division may cancel a dealer's license if the
7 retail used motor vehicle dealer or wholesale used motor vehicle dealer:
8 (1) Fails to keep and maintain the requirements of � 23-112-
9 607(a) and (c) of this subchapter; or
10 (2) Pleads guilty or nolo contendere to or has been found guilty
11 of a violation of � 23-112-605.
12
13 23-112-605. Violations.
14 It shall be a violation of this subchapter to knowingly or
15 intentionally:
16 (1)(A) Sell a vehicle without a retail used motor vehicle
17 dealer's license or wholesale used motor vehicle dealer's license.
18 (B) The sale of each vehicle shall constitute a separate
19 offense;
20 (2) Commit a fraudulent act in selling, purchasing, or otherwise
21 dealing in motor vehicles;
22 (3) Fail to maintain the conditions and requirements necessary
23 to qualify for the issuance of a retail used motor vehicle dealer's license
24 or wholesale used motor vehicle dealer's license;
25 (4) Sell, attempt to sell, or advertise for sale vehicles from a
26 location other than that set forth on the retail used motor vehicle dealer's
27 license or wholesale used motor vehicle dealer's license, except:
28 (A) As a participating dealer in a state trade association
29 promotion or exhibit; or
30 (B) With a special sale permit; or
31 (C) At an auto auction;
32 (5) Falsify, alter, or neglect to endorse or deliver a
33 certificate of title to a transferee or lawful owner, or fail to properly
34 designate a transferee on a document of assignment or certificate of title;
35 (6) Knowingly purchase, sell, or otherwise acquire or dispose of
36 a stolen motor vehicle;
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1 (7) Submit a false affidavit setting forth that a title has been
2 lost or destroyed;
3 (8) Pass title or reassign title as a retail used motor vehicle
4 dealer or wholesale used motor vehicle dealer without a retail used motor
5 vehicle dealer's license or wholesale used motor vehicle dealer's license or
6 when his or her retail used motor vehicle dealer's license or wholesale used
7 motor vehicle dealer's license has been suspended;
8 (9) To represent oneself as a retail used motor vehicle dealer
9 or wholesale used motor vehicle dealer or as a salesperson, either verbally
10 or in any advertisement, when not licensed as such;
11 (10) Violate any provision or requirement in this subchapter; or
12 (11) Knowingly assist an unlicensed retail used motor vehicle
13 dealer or wholesale used motor vehicle dealer in the sale of a motor
14 vehicle.; or
15 (12) Misuse a:
16 (A) Dealer's master plate or dealer's extra license plate
17 under � 27-14-1704;
18 (B) Transporter plate under � 27-14-1806; or
19 (C) Wholesale used motor vehicle dealer master plate,
20 wholesale used motor vehicle extra dealer plate, or wholesale used motor
21 vehicle dealer transporter plate under � 23-112-623.
22
23 23-112-606. License required.
24 It shall be unlawful for any person to engage in business as a retail
25 used motor vehicle dealer or wholesale used motor vehicle dealer or to sell a
26 vehicle not his or her own without obtaining a retail used motor vehicle
27 dealer's license or wholesale used motor vehicle dealer's license, except
28 that a person defined as a salesperson in � 23-112-602 may act on behalf of
29 the dealer by whom such a person is employed.
30
31 23-112-607. Dealer's license.
32 (a)(1) Persons wishing to obtain a retail used motor vehicle dealer's
33 license or wholesale used motor vehicle dealer's license shall submit a fully
34 executed application on such retail used motor vehicle dealer's license or
35 wholesale used motor vehicle dealer application forms as may be prescribed by
36 the Department Division of Arkansas State Police.
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1 (2) The application shall be verified by the oath or affirmation
2 of the applicant.
3 (b)(1) An applicant for a used motor vehicle dealer's license or a A
4 licensee seeking to renew a retail used motor vehicle dealer's license or
5 wholesale used motor vehicle dealer's license shall establish that he or she
6 has sold at least five (5) ten (10) used motor vehicles during the previous
7 calendar year.
8 (2) A licensee shall possess and present valid and signed copies
9 of certificates of title and bills of sale upon a random audit or yearly
10 renewal inspection by the division.
11 (c) The department In addition to an application for a retail used
12 motor vehicle dealer's license or a wholesale used motor vehicle dealer's
13 license, the division shall require in relation to the application the
14 following information and verification prior to issuing a retail used motor
15 vehicle dealer's license certificate or wholesale used motor vehicle dealer's
16 license certificate:
17 (1) A photograph of the business location;
18 (2) A Proof that the applicant possesses a corporate surety bond
19 in the sum of at least twenty-five thousand dollars ($25,000) fifty thousand
20 dollars ($50,000);
21 (3) Proof of liability insurance coverage on all vehicles to be
22 offered for sale in an amount equal to or greater than the amount required by
23 the Motor Vehicle Safety Responsibility Act, � 27-19-101 et seq.;
24 (4) A list of the persons or entities having any ownership
25 interest in the used vehicle dealership;
26 (5) A list of managers or salespersons to be employed;
27 (6) That Evidence that the applicant has a bona fide an
28 established place of business used primarily for the sale of used motor
29 vehicles that:
30 (A) Includes an enclosed building or structure; and
31 (B) Is owned, rented, or leased by the applicant and is
32 occupied and used primarily for the sale of used motor vehicles;
33 (7) That Evidence that the applicant has a telephone number
34 listed in the name of the business in an online directory;
35 (8) That A photograph demonstrating that the applicant has a an
36 exterior sign that: identifying
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1 (A) Identifies the establishment as a used motor vehicle
2 dealership; and
3 (B) Is legible from the street, road, or highway, and a
4 picture thereof;
5 (9) That Evidence that the applicant has an office space
6 dedicated to the business that contains a filing cabinet or other repository
7 adequate to secure the business records of the establishment under lock and
8 key or combination;
9 (10) Whether A disclosure as to whether the applicant has ever:
10 (A) been Been issued a retail motor vehicle dealer's
11 license or wholesale motor vehicle dealer's license,; and
12 (B) if the applicant has ever had Had a retail motor
13 vehicle dealer's license or wholesale motor vehicle dealer's license
14 suspended or revoked;
15 (11)(A) Except as provided in subdivision (c)(11)(B) of this
16 section, an An affidavit from a department division officer or a designee of
17 the department division stating that the officer or a designee of the
18 department division has inspected the facility within thirty (30) sixty (60)
19 days before issuance or renewal of a license and found it to be in compliance
20 with the requirements for application.
21 (B) If a licensee has been continuously licensed at the
22 same facility for ten (10) years or more, then the licensee shall only be
23 required to comply with subdivision (c)(11)(A) of this section one (1) time
24 every other year; and The owner of the facility being inspected under
25 subdivision (c)(11)(A) of this section or the owner's designated power of
26 attorney shall be present for the inspection before the issuance or renewal
27 of a license;
28 (12) The name, address, and telephone number of the person
29 designated to receive legal process in the event of the commencement of any
30 legal action in any court against the applicant;
31 (13) A copy of a valid driver's license for each owner, partner,
32 manager, and salesperson listed on the application; and
33 (14)(A)(i) A criminal record check conducted at the time of
34 issuance or renewal of a license of each owner, partner, manager, and
35 salesperson by the division and the Federal Bureau of Investigation.
36 (ii) Criminal history records from the Arkansas
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1 Crime Information Center shall be available to the Director of the Division
2 of Arkansas State Police for the review of an applicant.
3 (B) The state and national criminal background check
4 required under this subdivision (c)(14) shall:
5 (i) Conform to applicable federal standards; and
6 (ii) Include the taking of fingerprints.
7 (C) The applicant shall:
8 (i) Sign a release of information to the director;
9 and
10 (ii) Pay any fee associated with the state and
11 national criminal background check.
12 (D) Upon completion of the state and national criminal
13 background check required under this subdivision (c)(14), the division shall
14 forward to the director all releasable information obtained concerning the
15 applicant.
16 (E)(i) The division shall not issue a new license to a
17 person who has been found guilty of a Class Y, Class A, or Class B felony,
18 including a sealed or expunged offense, in any court in the state or a
19 comparable offense in another state or in a military or federal court for
20 which a pardon has not been granted.
21 (ii) An applicant who has been found guilty of a
22 Class D or Class C felony shall be disqualified for a period of ten (10)
23 years from the date of adjudication.
24 (F) The director may deny, suspend, or revoke a retail
25 used motor vehicle dealer's license or a wholesale used motor vehicle
26 dealer's license for an arrest or indictment of a felony listed under
27 subdivision (c)(14)(E) of this section.
28 (G) The division shall promulgate rules to implement and
29 administer this subdivision (c)(14).
30 (H)(i) A holder of a current and valid retail used motor
31 vehicle dealer's license or wholesale used motor vehicle dealer's license who
32 possesses a license before the effective date of this act is exempt from
33 disqualification under subdivision (c)(14)(E) of this section for a felony
34 conviction before the effective date of this act.
35 (ii) A holder of a current and valid retail motor
36 vehicle dealer's license or wholesale used motor vehicle dealer's license who
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1 possesses a license before the effective date of this act shall be
2 disqualified for a felony arrest or conviction that occurs after the
3 effective date of this act.
4 (d)(1)(A) Each applicant shall obtain a corporate surety bond in the
5 penal sum of twenty-five thousand dollars ($25,000) fifty thousand dollars
6 ($50,000) on a bond form approved by the state.
7 (B) However, an applicant for a license at multiple
8 locations may provide a corporate surety bond in the penal sum of one hundred
9 thousand dollars ($100,000) two hundred thousand dollars ($200,000) covering
10 all licensed locations in lieu of separate bonds for each individual
11 location.
12 (2) The bond shall be an indemnity for any loss and reasonable
13 attorney's fees sustained by a retail buyer by reason of the acts of the
14 person bonded when such an act constitutes a violation of this law.
15 (3) However, the surety shall in no event be liable for more
16 than twenty-five thousand dollars ($25,000) fifty thousand dollars ($50,000).
17 (4) The bond shall be executed in the name of the State of
18 Arkansas or any aggrieved party.
19 (5) The proceeds of the bonds shall be paid either to the State
20 of Arkansas or to the retail buyer upon a judgment from an Arkansas court of
21 competent jurisdiction against the principal and in favor of the aggrieved
22 party or the State of Arkansas.
23 (6) However, the surety shall in no event be required to pay any
24 judgment obtained by fraud or collusion, as between the dealer and the retail
25 buyer, or which was rendered against a person bonded for an act that does not
26 constitute a violation of this subchapter. These defenses may be raised at
27 any time, subject to the applicable statute of limitations.
28
29 SECTION 11. Arkansas Code � 23-112-611(a), concerning records that a
30 used motor vehicle dealer must maintain, is amended to read as follows:
31 (a)(1) Every person required to have a license shall maintain, for
32 three (3) years from the date of purchase, records of each vehicle
33 transaction to which the person was a party.
34 (2) Records maintained under subdivision (a)(1) of this section
35 shall be maintained at the business location listed on the license of the
36 person required to maintain the records.
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1
2 SECTION 12. Arkansas Code � 23-112-613 is amended to read as follows:
3 23-112-613. Delivery prior to sale -- Disclosures -- Definitions.
4 (a) As used in this section:
5 (1)(A) "Contract for sale" means the final agreement between a
6 retail used motor vehicle dealer or wholesale used motor vehicle dealer and a
7 consumer that:
8 (i) Includes all material terms of the sale of a
9 motor vehicle; and
10 (ii) Is binding upon the seller, the buyer, and any
11 necessary third-party financer.
12 (B) "Contract for sale" includes a financing agreement and
13 all material financing terms if the motor vehicle is to be financed; and
14 (2) "Delivery prior to sale" means a delivery of a motor vehicle
15 by a retail used motor vehicle dealer or wholesale used motor vehicle dealer
16 to a consumer prior to the completion and execution by both parties of a
17 contract for sale.
18 (b) If a retail used motor vehicle dealer or wholesale used motor
19 vehicle dealer engages in a delivery prior to sale, then the retail used
20 motor vehicle dealer or wholesale used motor vehicle dealer shall provide the
21 consumer with an agreement for delivery prior to sale at the time of delivery
22 of the motor vehicle to the consumer.
23 (c)(1) The agreement for delivery prior to sale shall be:
24 (A) Printed in at least 12-point type; and
25 (B) Signed by the consumer and the retail used motor
26 vehicle dealer or wholesale used motor vehicle dealer or the dealer's
27 representative.
28 (2) The agreement for delivery prior to sale shall not be
29 considered a contract for sale.
30 (d) The agreement for delivery prior to sale shall include all of the
31 following terms:
32 (1) Unless the consumer is approved for financing and both
33 parties have executed a contract for sale, then the retail used motor vehicle
34 dealer or wholesale used motor vehicle dealer shall not:
35 (A) Deposit or cash any down payment provided by the
36 consumer; and
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1 (B) Sell any motor vehicle that is presented by the
2 consumer as a trade-in;
3 (2) The consumer retains the right to cancel the purchase of a
4 motor vehicle if:
5 (A) The retail used motor vehicle dealer or wholesale used
6 motor vehicle dealer changes any terms; or
7 (B) The consumer fails to obtain financing that meets the
8 agreed-upon interest rate;
9 (3) If a consumer who executes an agreement for delivery prior
10 to sale chooses not to execute a contract for sale or otherwise cancels the
11 purchase as provided under this section, then:
12 (A) The retail used motor vehicle dealer or wholesale used
13 motor vehicle dealer shall not:
14 (i) Impose any charge or penalty against the
15 consumer; or
16 (ii) Deposit or cash any down payment provided by
17 the consumer; and
18 (B) The retail used motor vehicle dealer or wholesale used
19 motor vehicle dealer shall immediately return any motor vehicle that was
20 presented by the consumer as a trade-in; and
21 (4) If the consumer decides not to purchase the motor vehicle,
22 the consumer shall return the motor vehicle to the retail used motor vehicle
23 dealer or wholesale used motor vehicle dealer within forty-eight (48) hours
24 after the consumer notifies the retail used motor vehicle dealer or wholesale
25 used motor vehicle dealer.
26 (e) If a consumer fails to return a motor vehicle pursuant to
27 subdivision (d)(4) of this section, then the retail used motor vehicle dealer
28 or wholesale used motor vehicle dealer may recover the vehicle without the
29 necessity of judicial process if the recovery is possible without committing
30 an act of breaking or entering or breach of the peace.
31 (f) The Division of Arkansas State Police shall promulgate rules to
32 implement, enforce, and administer this section.
33
34 SECTION 13. Arkansas Code � 23-112-617(a)--(c), concerning used motor
35 vehicle dealer service and handling fees, are amended to read as follows:
36 (a) A retail used motor vehicle dealer or wholesale used motor vehicle
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1 dealer may fill in the blanks on standardized forms in connection with the
2 sale or lease of used motor vehicles if the motor vehicle dealer does not
3 charge for the service of filling in the blanks or otherwise charge for
4 preparing documents.
5 (b)(1) A retail used motor vehicle dealer or wholesale used motor
6 vehicle dealer may charge a service and handling fee in connection with the
7 sale or lease of a used motor vehicle for:
8 (A) The handling, processing, and storage of documents;
9 and
10 (B) Other administrative and clerical services.
11 (2)(A) The service and handling fee may be charged to allow cost
12 recovery for retail used motor vehicle dealer or wholesale used motor vehicle
13 dealers.
14 (B) A portion of the service and handling fee may result
15 in profit to the used motor vehicle dealer.
16 (c)(1)(A) The Department Division of Arkansas State Police shall
17 determine by rule the amount of the service and handling fee that may be
18 charged by a retail used motor vehicle dealer or wholesale used motor vehicle
19 dealer. (B) The service and handling fee shall be no less
20 than zero dollars ($0.00) and no more than one hundred twenty-nine dollars
21 ($129).
22 (2) If a service and handling fee is charged under this section,
23 the service and handling fee shall be:
24 (A) Charged to all retail customers; and
25 (B) Disclosed on the retail buyer's order form as a
26 separate itemized charge.
27
28 SECTION 14. Arkansas Code � 23-112-617(e), concerning used motor
29 vehicle dealer service and handling fees, is amended to read as follows:
30 (e) The Department division of Arkansas State Police may promulgate
31 rules to implement, enforce, and administer this section.
32
33 SECTION 15. Arkansas Code Title 23, Chapter 112, Subchapter 6, is
34 amended to add additional sections to read as follows:
35 23-112-618. Used motor vehicle dealer application.
36 (a) An application for a license under this subchapter shall:
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1 (1) Be in the form prescribed by the Director of the Division of
2 Arkansas State Police; and
3 (2) Include:
4 (A) The full name and business address of the applicant;
5 (B) The name under which the applicant intends to do
6 business; and
7 (C)(i) Submission of the applicant's fingerprints.
8 (ii) An out-of-state applicant shall submit two (2)
9 classifiable sets of fingerprints, and an in-state applicant shall submit
10 fingerprints through a harvester or livescan operator located within the
11 state;
12 (D) A verified statement disclosing any record of arrests,
13 pending criminal charges, or convictions of the applicant of a felony,
14 including a felony that has been sealed or expunged;
15 (E) For an applicant who is an individual:
16 (i) Any information required by the director that
17 would show that the applicant is honest, trustworthy, and of good character;
18 and
19 (ii) The Social Security number of the applicant;
20 and
21 (F) For an applicant who is not an individual, the
22 taxpayer identification number of the applicant.
23 (b)(1)(A) A first-time applicant or an applicant for license or
24 credential renewal shall apply to the Division of Arkansas State Police for a
25 state and national criminal background check to be conducted by the division
26 and the Federal Bureau of Investigation.
27 (B) Criminal history records from the Arkansas Crime
28 Information Center shall be available to the director for the review of an
29 applicant.
30 (2) The state and national criminal background check required
31 under this subsection shall:
32 (A) Conform to applicable federal standards; and
33 (B) Include the taking of fingerprints as required in
34 subdivision (a)(2)(C) of this section.
35 (3) The applicant shall:
36 (A) Sign a release of information to the director; and
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1 (B) Pay any fee associated with the state and national
2 criminal background check.
3 (4) Upon completion of the state and national criminal
4 background check required under this subsection, the division shall forward
5 to the director all releasable information obtained concerning the applicant.
6 (c) The burden is on the applicant to provide information that is
7 sufficient to allow the director to determine if the applicant is qualified
8 to hold a license under this subchapter.
9
10 23-112-619. Fingerprint cards.
11 (a) The Identification Bureau of the Division of Arkansas State Police
12 may retain the fingerprints collected for an individual who is fingerprinted
13 under this subchapter.
14 (b) The Director of the Division of Arkansas State Police may enroll a
15 person issued a license under this subchapter in a program that
16 electronically notifies law enforcement if the person has been arrested.
17
18 23-112-620. Retail used motor vehicle dealer.
19 (a) An applicant for a retail used motor vehicle dealer's license
20 shall provide a certificate of good standing from the Secretary of State to
21 the Division of Arkansas State Police with the application for a retail used
22 motor vehicle dealer's license.
23 (b)(1) A retail used motor vehicle dealer is limited to four (4)
24 dealerships per business location.
25 (2) A retail used motor vehicle dealer shall maintain a minimum
26 vehicle inventory of at least five (5) vehicles per dealership at the
27 business location of the retail used motor vehicle dealer.
28 (3) A retail used motor vehicle dealer shall meet the annual
29 sales requirements under � 23-112-607(b)(2).
30
31 23-112-621. Wholesale used motor vehicle dealer.
32 (a) An applicant for a wholesale used motor vehicle dealer's license
33 shall submit a separate application for a wholesale used motor vehicle
34 dealer's license to the Division of Arkansas State Police.
35 (b) A wholesale used motor vehicle dealer is not required to maintain
36 inventory at the wholesale used motor vehicle dealer's place of business.
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1 (c) Unless a wholesale used motor vehicle dealer is also a licensed
2 retail used motor vehicle dealer, engaging in retail sales is grounds for the
3 revocation of a wholesale used motor vehicle dealer's license.
4
5 23-112-622. Procedure for denial of application for license.
6 (a) The Director of the Division of Arkansas State Police may deny the
7 issuance of a license under this subchapter.
8 (b) The director shall notify the applicant in writing of the
9 director's decision to deny the issuance of a license.
10 (c) An applicant whose application for a license has been denied under
11 this section may appeal the decision to the director by submitting an appeal
12 within ten (10) days of the receipt of the notice of denial issued under
13 subsection (b) of this section.
14
15 23-112-623. Used motor vehicle dealer plates -- Penalties.
16 (a) When an applicant for a retail used motor vehicle dealer's license
17 or a wholesale used motor vehicle dealer's license obtains a retail used
18 motor vehicle dealer's license or a wholesale used motor vehicle dealer's
19 license, the Department of Finance and Administration shall issue:
20 (1) To a licensed retail used motor vehicle dealer:
21 (A) One (1) master plate;
22 (B) One (1) transporter plate; and
23 (C) One (1) extra dealer plate; and
24 (2) To a licensed wholesale used motor vehicle dealer:
25 (A) One (1) master plate; and
26 (B) One (1) transporter plate.
27 (b) The holder of the retail used motor vehicle dealer's license or
28 wholesale used motor vehicle dealer's license shall be the only person to
29 possess a master plate issued under subsection (a) of this section.
30 (c) Only one (1) salesperson or manager may possess and use the extra
31 dealer plate.
32 (d) Misuse of a used motor vehicle dealer plate shall result in the
33 confiscation of the used motor vehicle dealer plate by law enforcement or an
34 inspector assigned to the Division of Arkansas State Police Used Motor
35 Vehicle Division.
36 (e)(1)(A) A person who violates this section is subject to a civil
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1 penalty of one thousand dollars ($1,000) for each violation.
2 (B) A person who violates this section shall surrender the
3 dealer plates issued under subsection (a) of this section to law enforcement.
4 (2) The division shall assess penalties for a violation of this
5 section by written notice to the violator.
6 (3) If a civil penalty assessed under this section is not paid
7 within forty-five (45) days of notice of the violation, the wholesale used
8 motor vehicle dealer's license or the retail used motor vehicle dealer's
9 license, or both, of the person who committed the violation shall be
10 suspended.
11 (4) Upon a third or subsequent violation of this section, the
12 wholesale used motor vehicle dealer's license or the retail used motor
13 vehicle dealer's license, or both, of the person who committed the violation
14 shall be revoked.
15 (f) A civil penalty assessed under this section shall be remitted to
16 the division and shall be deposited into the State Treasury to the credit of
17 the Division of Arkansas State Police Fund.
18
19 23-112-624. Grounds for disciplinary action.
20 (a) The Director of the Division of Arkansas State Police may suspend
21 or revoke a license or issue a fine in an amount not to exceed one thousand
22 dollars ($1,000) for each violation of this subchapter.
23 (b) The director may deny an application or renewal for a license on
24 proof that the applicant or licensee:
25 (1) Violated this subchapter or violated a rule promulgated
26 under this subchapter;
27 (2) No longer meets the qualifications for a license under this
28 subchapter; or
29 (3) Has been arrested for an offense that, if convicted, would
30 result in disqualification for the license under this subchapter.
31 (c)(1) The director may summarily suspend a license issued under this
32 subchapter for no more than sixty (60) days if it is shown that the health,
33 safety, or welfare of the public is endangered.
34 (2) If a hearing on a license that has been summarily suspended
35 is adjourned at the request of the licensee, the suspension may be continued
36 for the additional period of the adjournment.
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1 (d) The director may suspend a license of a person who is found guilty
2 of or has pleaded guilty or nolo contendere to a felony or a crime involving
3 an act of violence in this state or a comparable offense in another state or
4 territory of the United States or in any foreign country.
5
6 23-112-625. License -- Record of denial, revocation, or suspension.
7 If the Director of the Division of Arkansas State Police denies an
8 application, suspends or revokes a license, or imposes a fine under this
9 subchapter, the director's decision shall be mailed to the applicant or
10 license holder within sixty (60) days of the director's decision.
11
12 23-112-626. Appeal of denial, suspension, or revocation -- Venue.
13 (a) The denial, suspension, or revocation of a license under this
14 subchapter by the Director of the Division of Arkansas State Police:
15 (1) May be appealed to the Pulaski County Circuit Court; and
16 (2) Shall be governed by � 25-15-212.
17 (b) Venue for the appeal to circuit court under this section shall be
18 in Pulaski County, Arkansas.
19
20 SECTION 16. TEMPORARY LANGUAGE. DO NOT CODIFY. Currently issued
21 extra dealer plates -- Effectiveness.
22 (a) A currently issued extra dealer plate that is valid and in good
23 standing with the Division of Arkansas State Police and the Department of
24 Finance and Administration shall remain active until the expiration date of
25 the extra dealer plate.
26 (b) Upon expiration of a currently issued extra dealer plate, the
27 currently issued extra dealer plate shall be returned to the Department of
28 Finance and Administration and shall be no longer valid for use by the used
29 motor vehicle dealer.
30
31 SECTION 17. TEMPORARY LANGUAGE. DO NOT CODIFY. Dealer's license --
32 Rules -- Promulgation.
33 The Division of Arkansas State Police shall promulgate rules for the
34 application and issuance of a retail used motor vehicle dealer's license or
35 wholesale used motor vehicle dealer's license within one hundred twenty (120)
36 days of the effective date of this act.
19 04/03/2025 4:32:37 PM ZRC134Every fact on this page links to its source, starting with the official bill record.