MOTOR VEHICLE INDUSTRY LEGISLATION Several other key measures were enacted that modernize how Louisiana regulates and supports its auto dealers: This session delivered meaningful victories on multiple fronts: We advanced long-overdue legal and insurance reform, laid a path toward inventory tax relief, and modernized industry regulations that directly affect your business. These accomplishments reflect a strategy of both offense and defense, securing the tools needed to compete while protecting the foundational policies that support Louisiana’s dealer network. Long-term goals like full inventory tax repeal and broader market stability remain on the horizon. Thanks to your continued advocacy and engagement, we’re making steady, measurable progress. Thanks to your continued advocacy and engagement, we’re making steady, measurable progress. HB 476 HB 476 by Representative Bryan Fontenot, one of LADA’s top priorities, updates Louisiana’s safe harbor doc fee cap of $425 by indexing it to the Consumer Price Index (CPI-U), with a 3% annual cap. The Division of Administration performs the calculation, verified by the Legislative Auditor and published by the LMVC by Feb. 1 of each year. This structure eliminates the need for constant legislative updates while also helping dealers manage rising compliance costs. The safe harbor doc fee caps remain fully negotiable and must be disclosed on the bill of sale. As always, dealers are encouraged to base their doc fee on their own independent economic circumstances. SB 37 SB 37 by Senator Bob Hensgens enacts a major structural reform of the Louisiana Motor Vehicle Commission, creating an independent three-member legal panel to hear all licensee disputes. This strengthens due process and addresses longstanding concerns about bias and adjudicative fairness. House Concurrent Resolution 69 House Concurrent Resolution 69 by Representative Kim Carver creates a task force to study the potential consolidation of the Louisiana Motor Vehicle Commission and the Used Motor Vehicle Commission. The group will also examine broader issues such as modernization, licensing procedures, fee structures, and advertising rules and regulations. LADA will have a direct voice in this important conversation, with the president and CEO serving as the association’s appointed representative on the task force. HB 580 HB 580 by Representative John Illg seeks to modernize Louisiana’s temporary tag system by: • Requiring temporary tags to be placed on the rear bumper (not the window). • Matching temporary tag numbers with the permanent plate. • Increasing the temporary tag fee from $4 to $20. • Establishing a print-on-demand system, already in use in most other states. The bill also gives rulemaking authority to OMV Commissioner Bryan Adams, who has indicated that implementation will follow the selection of a qualified paper vendor and technology vendor to ensure weather-resistant tags, fraud prevention measures and a more efficient registration process. Dealers are encouraged to begin placing temporary tags on the rear bumper — where the permanent plate will ultimately go — a best practice that many are already following, which helps law enforcement. 11
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