The bill amends existing laws related to the licensing and regulation of used motor vehicle dealers in Arkansas, introducing new definitions for "retail used motor vehicle dealer" and "wholesale used motor vehicle dealer." It requires these dealers to maintain a licensed location and notify the Division of Arkansas State Police of any changes. Key provisions include an increase in the number of used vehicles that must be sold in the previous year from five to ten, a higher corporate surety bond requirement from $25,000 to $50,000, and the necessity for proof of liability insurance coverage. The bill also specifies penalties for violations, including fines and potential felony charges for repeated offenses, with collected fines directed to the Division of Arkansas State Police Fund.

Additionally, the bill mandates that applicants provide a dedicated office space for business records, undergo criminal background checks, and submit fingerprints. It outlines conditions for disqualification based on felony convictions and clarifies the responsibilities of dealers regarding vehicle inventory and the requirement for a certificate of good standing. The bill establishes procedures for license application denials, including written notifications and an appeal process, and grants the Director of the Division of Arkansas State Police authority to suspend or revoke licenses for various violations. Overall, these amendments aim to enhance consumer protection, ensure compliance among dealers, and improve the integrity of the used motor vehicle market in Arkansas.

Statutes affected:
HB 1989: 23-112-601, 23-112-602(1), 23-112-602(7), 23-112-602(10), 23-112-602(11), 23-112-602, 23-112-603(a), 23-112-603(b), 23-112-603(d), 23-112-604, 23-112-607, 23-112-605, 27-14-1704, 27-14-1806, 23-112-623, 23-112-606, 27-19-101, 23-112-611(a), 23-112-613, 23-112-617(a), 23-112-617(e)