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 changes include increasing the number of used vehicles that must be sold in the previous year from five to ten, raising the corporate surety bond requirement from $25,000 to $50,000, and mandating proof of liability insurance and a list of ownership interests. 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.

Additionally, the bill outlines the application process for obtaining a dealer's license, requiring a dedicated office space for business records, criminal background checks for owners and sales personnel, and the submission of fingerprints along with a verified statement of felony convictions. It introduces provisions for vehicle delivery prior to sale completion, requiring dealers to provide a written agreement to consumers. The bill also specifies procedures for license denial and appeals, grants the Director of the Division of Arkansas State Police authority to suspend or revoke licenses, and ensures that currently issued extra dealer plates remain valid until expiration. Overall, the amendments aim to enhance consumer protection, promote transparency, and ensure compliance among used motor vehicle dealers.

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)