§473. Dealer inventory plates

A. The office of motor vehicles (office) shall establish procedures by which licensed motor vehicle dealers (dealers) may obtain dealer inventory plates (plates).

B. The office shall determine the design and material of the plates.

C. The office shall design the forms which shall be used for applying for plates and shall determine the information which dealers shall include in application for plates.

D. Plates shall be valid for one year.

E. Each plate shall cost fifteen dollars.

F. Plates shall allow the dealer to which the plate is issued to operate any motor vehicle which is held by that dealer as inventory for any purpose which is related to offering the motor vehicle for sale, to displaying or exhibiting the motor vehicle to the public, to demonstrating the qualities of the motor vehicle, or to maintaining or enhancing the condition or the value of the motor vehicle.

G. A truck or tractor dealer may allow a prospective purchaser to use a vehicle to which the dealer has attached a dealer inventory plate which has been issued to the dealer. The prospective purchaser may use the vehicle for a maximum of five days to transport cargo for hire within the boundaries of this state for demonstration purposes. The dealer shall not receive any compensation for the use of the vehicle. The dealer shall complete and place in the vehicle a document which shall state the name and address of the dealer, the name and address of the prospective purchaser, the dates on which the prospective purchaser will use the vehicle, and such other information as the office of motor vehicles may require. The document shall be designed and distributed by the office of motor vehicles.

H. Dealers may allow authorized employees of educational institutions or licensed sales representatives of the dealer, or both, to use, for any purpose, a motor vehicle to which the dealer has attached a dealer inventory plate, provided the arrangement does not constitute renting or leasing the vehicle to the employee or sales representative. Renting or leasing does not include those transactions where a dealer-provided automobile is treated as a taxable fringe benefit to the licensed sales representative of the dealer under the provisions of 26 USC 61 et seq. and the regulations issued thereunder.

I. The office shall adopt rules to implement the provisions of this Section. All rules shall be adopted in accordance with the Administrative Procedure Act. The rules shall include but shall not be limited to:

(1) Rules to establish permissible and prohibited uses of plates.

(2) Rules establishing criteria and procedures for suspending or revoking the privilege of obtaining and using such plates.

(3) Rules establishing criteria and procedures for retrieving plates from dealers.

(4) Rules governing the use of dealer inventory plates to demonstrate trucks or tractors.

(5) Rules governing the use of motor vehicles with dealer inventory plates by employees of educational institutions and licensed sales representatives.

J. Any licensed motor vehicle dealer who is also a former prisoner of war and qualifies for a military honor license plate under the provisions of R.S. 47:490.2, upon application to the secretary, may obtain a license plate which is a dealer inventory plate under the provisions of this Section but which also contains the "XPOW" designation provided for by R.S. 47:490.2. A dealer inventory plate which is obtained under the provisions of this Subsection may be transferred by the dealer from one vehicle to another held by the dealer as inventory.

Amended by Acts 1974, No. 390, §1; Acts 1981, No. 324, §1; Acts 1983, No. 429, §1; Acts 1983, No. 501, §1; Acts 1986, No. 723, §1; HCR No. 6, 1989 2nd E.S., eff. July 9, 1989; Acts 1991, No. 486, §1; Acts 1991, No. 487, §1; Acts 1992, No. 631, §1, eff. July 2, 1992; Acts 1993, No. 6, §1; Acts 1999, No. 429, §1; Acts 2005, No. 365, §1, eff. June 30, 2005.