Bill > HB1989

This bill amends Arkansas law concerning used motor vehicle dealers, introducing several key changes to the regulation of retail and wholesale used motor vehicle dealerships. The legislation expands definitions to distinguish between retail and wholesale used motor vehicle dealers, increases licensing requirements, and implements more stringent background check procedures for dealer license applicants. Notably, the bill raises the corporate surety bond requirement from $25,000 to $50,000, mandates criminal background checks for all owners, partners, managers, and salespersons, and establishes stricter rules about felony convictions that can disqualify an applicant from obtaining a dealer's license. The bill also introduces new provisions about dealer plates, creating specific rules for their use and penalties for misuse, and establishes a more comprehensive process for license application, denial, suspension, and appeal. Additionally, the legislation adds requirements for dealers, such as maintaining a minimum vehicle inventory, limiting the number of dealerships per business location, and providing more detailed documentation during the licensing process. The bill aims to increase transparency, protect consumers, and maintain higher standards in the used motor vehicle sales industry by providing the Division of Arkansas State Police with more robust regulatory tools.

Transportation and Infrastructure

https://arkleg.state.ar.us/Bills/Detail?id=hb1989&ddBienniumSession=2025%2F2025R