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, notify the Division of Arkansas State Police of any changes, and adhere to stricter application processes, including an increase in the number of used vehicles sold in the previous year from five to ten and a corporate surety bond increase from $25,000 to $50,000. Additionally, applicants must provide proof of liability insurance, maintain valid documentation for vehicles sold, and undergo criminal background checks, including fingerprinting for state and national checks.

The bill also establishes penalties for violations, including fines and potential felony charges for repeated offenses, with collected fines directed to the Division of Arkansas State Police Fund. It outlines the procedures for license application denials, including written notifications and an appeal process, and specifies the types of dealer plates issued to both retail and wholesale dealers. The Director of the Division of Arkansas State Police is granted authority to suspend or revoke licenses for various violations, with decisions communicated within sixty days and the option for appeals to the Pulaski County Circuit Court. Temporary provisions ensure that currently issued extra dealer plates remain valid until expiration, and the Division is tasked with establishing rules for dealer license applications and issuance.

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)