Effective July 1, 2016, public license tag agents with one office in Louisiana must file a $100,000 surety bond. Public license tag agents with more than one office must secure a $125,000 bond to remain in compliance with the law. Previously, state law mandated public license tag agents to post a surety bond anywhere between $10,000 and $100,000 regardless of the number of offices within the state. Public tag agents must file this bond with the Department of Public Safety and Corrections, office of motor vehicles.
In addition to the new bond amount requirements, HB 445 specified public tag agent business practices that can result in suspension or revocation:
- failing to remit taxes and fees collected from applicants for title transfers
- operating without a contract for each location or without a valid surety bond
- issuing more than one temporary registration to a title applicant
- operating from unauthorized location
- contributing to alteration of documents relevant to a registration or titling transaction that negatively affects public records
- committing fraud, deceit or perjury in obtaining a contract
If you have any questions or looking for further information on this new regulation for Louisiana public license tag agents, contact the Department of Public Safety and Corrections or check out the bill here.