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." Key provisions include the requirement for dealers to maintain a licensed location, provide proof of liability insurance, and submit a corporate surety bond of at least $50,000. Additionally, applicants must demonstrate a dedicated office space for business records, undergo criminal background checks, and disclose any felony records. The bill also specifies that dealers must sell a minimum of ten used vehicles annually to qualify for license renewal and outlines penalties for violations, including fines and potential felony charges for repeated offenses.

Moreover, the bill establishes procedures for the denial of license applications, requiring written notification from the Director of the Division of Arkansas State Police and allowing for an appeal process. It clarifies the responsibilities of the Division in enforcing these regulations and grants the Director authority to suspend or revoke licenses based on various grounds, including criminal convictions. The bill also details the types of dealer plates issued and the penalties for their misuse, ensuring that consumer protection is prioritized and that used motor vehicle dealers operate within a more regulated framework.

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)