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Bill

HB 1989

TO AMEND THE LAW CONCERNING USED MOTOR VEHICLES BUYERS PROTECTION; AND TO AMEND THE LAW CONCERNING THE USED MOTOR VEHICLE DEALER'S LICENSE APPLICATION PROCESS.

2025 Regular Session Introduced by Fran Cavenaugh

HB 1989 aims to enhance consumer protection for used vehicle buyers in Arkansas by imposing stricter dealer regulations and penalties for fraud, boosting trust in the market.

Died in House Committee at Sine Die adjournment.
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Bill Summary · HB 1989

Summary of House Bill 1989 (HB 1989)

Purpose and Intent

House Bill 1989 (HB 1989) was introduced to amend existing laws concerning the protection of buyers of used motor vehicles in Arkansas. The bill aimed to enhance the regulatory framework governing the licensing process for both retail and wholesale used motor vehicle dealers. The intent was to bolster consumer protection, prevent fraud, and ensure that dealers maintain a level of trust and accountability in their business practices.

Key Provisions

The bill proposed several amendments to the Arkansas Code, specifically focusing on the following areas:

1. Regulatory Necessity

  • The bill emphasized the importance of regulating the sale and distribution of used motor vehicles to protect the public interest and foster fair competition among dealers.

2. Definitions Update

  • Several definitions related to used motor vehicle transactions were revised, including:
    • Auto Auction: Expanded to include various forms of vehicle sales and exchanges.
    • Designee: Defined as individuals or entities authorized to perform inspections on behalf of the Arkansas State Police.
    • Used Motor Vehicle Dealer: Clarified to include any person or entity engaged in the sale or exchange of used vehicles for profit.

3. Penalties for Violations

  • The bill proposed stricter penalties for violations of the used motor vehicle buyers protection laws, including:
    • A Class D felony designation for third or subsequent violations, resulting in a three-year suspension of the dealer's license.

4. Consumer Protection Measures

  • The amendments aimed to prevent fraudulent practices and ensure that dealers are held accountable for their actions, thereby protecting consumers' investments.

Impact

If enacted, HB 1989 would have affected:
- Used Motor Vehicle Dealers: Both retail and wholesale dealers would face stricter licensing requirements and penalties for non-compliance.
- Consumers: Enhanced protections would aim to reduce fraud and improve trust in the used vehicle market.
- State Regulatory Bodies: The Arkansas State Police would have increased responsibilities in overseeing dealer compliance and conducting inspections.

Legislative Timeline

  • Introduced: April 3, 2025
  • Committee Actions:
    • April 4, 2025: Read for the first time, rules suspended, and referred to the Committee on Public Transportation - House.
  • Outcome: The bill died in the House Committee at Sine Die adjournment on May 5, 2025.

Conclusion

House Bill 1989 sought to strengthen the regulatory framework surrounding used motor vehicle sales in Arkansas, aiming to protect consumers and ensure fair practices among dealers. However, the bill did not progress beyond the committee stage and ultimately did not become law.

Compiled from official sources — confirm details with the bill’s official record.

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