| 1 | 1 | | 23 LC 39 3727 |
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| 2 | 2 | | S. B. 184 |
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| 3 | 3 | | - 1 - |
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| 4 | 4 | | Senate Bill 184 |
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| 5 | 5 | | By: Senators Robertson of the 29th, Williams of the 25th, Summers of the 13th, Walker III |
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| 6 | 6 | | of the 20th, Goodman of the 8th and others |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | To amend Code Section 10-1-664.1 of the Official Code of Georgia Annotated, relating to |
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| 10 | 10 | | 1 |
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| 11 | 11 | | restrictions on the ownership, operation, or control of dealerships by manufacturers and2 |
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| 12 | 12 | | franchisors and competing unfairly with new dealers, so as to repeal an exception to the3 |
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| 13 | 13 | | prohibition on the ownership, operation, and control of motor vehicle dealerships by certain4 |
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| 14 | 14 | | manufacturers, franchisors, and affiliates; to provide for related matters; to repeal conflicting5 |
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| 15 | 15 | | laws; and for other purposes.6 |
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| 16 | 16 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 |
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| 17 | 17 | | SECTION 1.8 |
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| 18 | 18 | | Code Section 10-1-664.1 of the Official Code of Georgia Annotated, relating to restrictions9 |
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| 19 | 19 | | on the ownership, operation, or control of dealerships by manufacturers and franchisors and10 |
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| 20 | 20 | | competing unfairly with new dealers, is amended by revising subsections (a) and (b) as11 |
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| 21 | 21 | | follows:12 |
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| 22 | 22 | | "(a) It shall be unlawful for any manufacturer or franchisor or any parent, affiliate, wholly13 |
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| 23 | 23 | | or partially owned subsidiary, officer, or representative of a manufacturer or franchisor to14 |
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| 24 | 24 | | own, operate, or control or to participate in the ownership, operation, or control of any new15 |
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| 25 | 25 | | motor vehicle dealer in this state within a 15 mile radius of an existing dealer of such16 |
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| 26 | 26 | | manufacturer or franchisor; to own, operate, or control, directly or indirectly, more than a17 23 LC 39 3727 |
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| 27 | 27 | | S. B. 184 |
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| 28 | 28 | | - 2 - |
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| 29 | 29 | | 45 percent interest in a dealer or dealership in this state; to establish in this state an |
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| 30 | 30 | | 18 |
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| 31 | 31 | | additional dealer or dealership in which such person or entity has any interest; or to own,19 |
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| 32 | 32 | | operate, or control, directly or indirectly, any interest in a dealer or dealership in this state20 |
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| 33 | 33 | | unless such person or entity has acquired such interest from a dealer or dealership which21 |
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| 34 | 34 | | has been in operation for at least five years prior to such acquisition; provided, however,22 |
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| 35 | 35 | | that this subsection shall not be construed to prohibit:23 |
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| 36 | 36 | | (1) The ownership, operation, or control by a manufacturer or franchisor of a new motor24 |
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| 37 | 37 | | vehicle dealer for a temporary period, not to exceed one year, during the transition from25 |
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| 38 | 38 | | one owner or operator to another;26 |
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| 39 | 39 | | (2) The ownership, operation, or control of a new motor vehicle dealer by a manufacturer27 |
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| 40 | 40 | | or franchisor during a period in which such new motor vehicle dealer is being sold under28 |
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| 41 | 41 | | a bona fide contract, shareholder agreement, or purchase option to the operator of the29 |
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| 42 | 42 | | dealership;30 |
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| 43 | 43 | | (3) The ownership, operation, or control of a new motor vehicle dealer by a manufacturer31 |
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| 44 | 44 | | or franchisor at the same location at which such manufacturer or franchisor has been32 |
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| 45 | 45 | | engaged in the retail sale of new motor vehicles as the owner, operator, or controller of33 |
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| 46 | 46 | | such dealership for a continuous two-year period of time immediately prior to April 1,34 |
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| 47 | 47 | | 1999, where there is no prospective new motor vehicle dealer available to own or operate35 |
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| 48 | 48 | | the dealership in a manner consistent with the public interest;36 |
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| 49 | 49 | | (4) The ownership, operation, or control by a manufacturer which manufactures only37 |
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| 50 | 50 | | motorcycles or motor homes of a retail sales operation engaged in the retail sale of38 |
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| 51 | 51 | | motorcycles or motor homes;39 |
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| 52 | 52 | | (5) The ownership, operation, or control by a manufacturer which is selling motor40 |
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| 53 | 53 | | vehicles directly to the public at an established place of business on January 1, 1999, and41 |
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| 54 | 54 | | which has never sold its line make of new motor vehicles in this state through a42 |
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| 55 | 55 | | franchised new motor vehicle dealer unless and until such manufacturer is wholly or43 |
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| 56 | 56 | | partially acquired by another manufacturer or franchisor;44 23 LC 39 3727 |
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| 57 | 57 | | S. B. 184 |
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| 58 | 58 | | - 3 - |
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| 59 | 59 | | (6) The ownership, operation, or control by a manufacturer which manufactures trucks |
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| 60 | 60 | | 45 |
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| 61 | 61 | | with a gross vehicle weight rating of 12,500 pounds or more of a new motor vehicle46 |
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| 62 | 62 | | dealer which only sells trucks with a gross vehicle weight rating of 12,500 pounds or47 |
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| 63 | 63 | | more at the same location at which such manufacturer has been engaged in the retail sale48 |
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| 64 | 64 | | of such trucks as the owner, operator, or controller of such dealership for a continuous49 |
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| 65 | 65 | | two-year period of time immediately prior to April 1, 1999, or at one additional location50 |
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| 66 | 66 | | which is not located within the relevant market area of an existing dealer of the same line51 |
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| 67 | 67 | | make of trucks; provided, however, that |
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| 68 | 68 | | this exemption shall apply to a manufacturer52 |
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| 69 | 69 | | described in this paragraph only until such manufacturer is wholly or partially acquired53 |
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| 70 | 70 | | by another manufacturer or distributor; or54 |
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| 71 | 71 | | (7) A manufacturer from selling new motor vehicles to customers if such vehicles are55 |
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| 72 | 72 | | manufactured or assembled in accordance with custom design specifications of the56 |
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| 73 | 73 | | customer and such sales are limited to no more than 150 vehicles per year; or.57 |
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| 74 | 74 | | (8) The ownership, operation, or control by a manufacturer of not more than five58 |
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| 75 | 75 | | locations licensed as new motor vehicle dealerships for the sale of new motor vehicles59 |
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| 76 | 76 | | and any number of locations that engage exclusively in the repair of such manufacturer's60 |
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| 77 | 77 | | line make of motor vehicles, provided that such manufacturer was selling or otherwise61 |
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| 78 | 78 | | distributing its motor vehicles at an established place of business in this state as of62 |
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| 79 | 79 | | January 1, 2015, and:63 |
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| 80 | 80 | | (A) The manufacturer manufactures or assembles zero emissions motor vehicles64 |
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| 81 | 81 | | exclusively and has never sold its line make of motor vehicles in this state through a65 |
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| 82 | 82 | | franchised new motor vehicle dealer; and66 |
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| 83 | 83 | | (B) The manufacturer has not acquired a controlling interest in a franchisor or a67 |
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| 84 | 84 | | subsidiary or other entity controlled by such franchisor, or sold or transferred a68 |
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| 85 | 85 | | controlling interest in such manufacturer to a franchisor or subsidiary or other entity69 |
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| 86 | 86 | | controlled by such franchisor.70 23 LC 39 3727 |
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| 87 | 87 | | S. B. 184 |
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| 88 | 88 | | - 4 - |
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| 89 | 89 | | (b) It shall be unlawful for a manufacturer or franchisor or any parent, affiliate, wholly or |
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| 90 | 90 | | 71 |
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| 91 | 91 | | partially owned subsidiary, officer, or representative of a manufacturer or franchisor to72 |
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| 92 | 92 | | compete unfairly with a new motor vehicle dealer of the same line make, operating under73 |
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| 93 | 93 | | a franchise, in the State of Georgia, and, except as otherwise provided in this subsection,74 |
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| 94 | 94 | | the mere ownership, operation, or control of a new motor vehicle dealer by a manufacturer75 |
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| 95 | 95 | | or franchisor under the conditions set forth in paragraphs (1) through (8) |
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| 96 | 96 | | (7) of76 |
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| 97 | 97 | | subsection (a) of this Code section shall not constitute a violation of this subsection. For77 |
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| 98 | 98 | | purposes of this Code section, a manufacturer or franchisor or any parent, affiliate, wholly78 |
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| 99 | 99 | | or partially owned subsidiary, officer, or representative of a manufacturer or franchisor79 |
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| 100 | 100 | | shall be conclusively presumed to be competing unfairly if it gives any preferential80 |
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| 101 | 101 | | treatment to a dealer or dealership of which any interest is directly or indirectly owned,81 |
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| 102 | 102 | | operated, or controlled by such manufacturer or franchisor or any partner, affiliate, wholly82 |
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| 103 | 103 | | or partially owned subsidiary, officer, or representative of such manufacturer or franchisor,83 |
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| 104 | 104 | | expressly including, but not limited to, preferential treatment regarding the direct or84 |
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| 105 | 105 | | indirect cost of vehicles or parts, the availability or allocation of vehicles or parts, the85 |
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| 106 | 106 | | availability or allocation of special or program vehicles, the provision of service and86 |
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| 107 | 107 | | service support, the availability of or participation in special programs, the administration87 |
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| 108 | 108 | | of warranty policy, the availability and use of after warranty adjustments, advertising, floor88 |
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| 109 | 109 | | planning, financing or financing programs, or factory rebates."89 |
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| 110 | 110 | | SECTION 2.90 |
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| 111 | 111 | | All laws and parts of laws in conflict with this Act are repealed.91 |
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