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ACT No. 1036
Regular Session, 2010
HOUSE BILL NO. 1222
BY REPRESENTATIVE ARNOLD
AN ACT1
To amend and reenact R.S. 32:1252(27), 1254(A)(19), (B), (C)(introductory paragraph) and2
(9) and (10), (D)(introductory paragraph) and (7), (E)(7) and (9)(d), (F)(introductory3
paragraph) and (4), (J)(introductory paragraph) and (5), (L)(introductory paragraph)4
and (5), and (N), 1255(A), 1260(C), 1261(1)(a)(introductory paragraph) and (i), (b),5
(d), (e), (g) through (i), (k)(i)(introductory paragraph) and (ii), (n), and (p),6
(2)(introductory paragraph), (a) through (e), (f)(introductory paragraph), (ii), and7
(iv), (g), and (i), (3), (4)(a), (b), and (d), (5)(a), (b), and (d), and (7), 1261.1,8
1262(A)(1) and (B)(3), 1263, 1264, and 1268(A)(1)(introductory paragraph),9
(a)(introductory paragraph), and (d), and (2), and (B), to enact R.S. 32:1252(51) and10
(52) and 1260(E) and (F), and to repeal R.S. 32:1268.1, relative to the Motor Vehicle11
Commission; to provide for definitions; to provide for changes to licensure for12
persons licensed by the commission; to provide for changes to licensure13
requirements; to provide for change to insurance requirements; to provide for14
additional penalties and relief for the commission; to provide for changes to15
unauthorized acts of licensee of the commission; to provide for changes to16
termination requirements of a licensee of the commission; and to provide for related17
matters.18
Be it enacted by the Legislature of Louisiana:19
Section 1. R.S. 32:1252(27), 1254(A)(19), (B), (C)(introductory paragraph) and (9)20
and (10), (D)(introductory paragraph) and (7), (E)(7) and (9)(d), (F)(introductory paragraph)21
and (4), (J)(introductory paragraph) and (5), (L)(introductory paragraph) and (5), and (N),22
1255(A), 1260(C), 1261(1)(a)(introductory paragraph) and (i), (b), (d), (e), (g) through (i),23
(k)(i)(introductory paragraph) and (ii), (n), and (p), (2)(introductory paragraph), (a) through24 ENROLLEDHB NO. 1222
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(e), (f)(introductory paragraph), (ii), and (iv), (g), and (i), (3), (4)(a), (b), and (d), (5)(a), (b),1
and (d), and (7), 1261.1, 1262(A)(1) and (B)(3), 1263, 1264, and 1268(A)(1)(introductory2
paragraph), (a)(introductory paragraph), and (d), and (2), and (B) are hereby amended and3
reenacted and R.S. 32:1252(51) and (52) and 1260(E) and (F) are hereby enacted to read as4
follows: 5
§1252. Definitions6
The following words, terms, and phrases, when used in this Chapter, shall7
have the meanings respectively ascribed to them in this Section, except where the8
context clearly indicates a different meaning:9
* * *10
(27) "Motorcycle" means a motor vehicle having a seat or saddle for the use11
of the rider and designed to travel on not more than three wheels in contact with the12
ground but excluding a tractor and electric-powered scooters not required to be13
registered.14
* * *15
(51) "Vehicle" means any motor vehicle, specialty vehicle, or recreational16
product subject to regulation by this Chapter.17
(52) "Dealer" means any person licensed to sell a motor vehicle, specialty18
vehicle, or recreational product subject to regulation by this Chapter.19
§1254. Application for license; requirements for licensure; contents; licenses;20
franchise filings21
A. The following persons shall be licensed by the commission in order to22
engage in business in the state of Louisiana, regardless of whether or not said person23
maintains or has a place or places of business in this state, and it is a violation of this24
Chapter to operate without first obtaining a license:25
* * *26
(19) Auto shows, trade shows, and exhibitions, including promotors27
promoters and nonresident exhibitors.28
B.(1)(a) All applications for license or licenses shall be accompanied by the29
appropriate fee or fees in accordance with the schedule set out in R.S. 32:1255. In30 ENROLLEDHB NO. 1222
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the event any application is denied and the license applied for is not issued, the entire1
license fee shall be returned to the applicant. All such fees shall be nonrefundable.2
Except as provided in Subparagraph (b) of this Paragraph and Paragraph (2) of this3
Subsection, all licenses issued under the provisions of this Chapter in accordance4
with the geographical location of the licensee will be for the year beginning and5
ending as follows:6
1st Commission District--April 1 through March 31.7
2nd Commission District--May 1 through April 30.8
3rd Commission District--June 1 through May 31.9
4th Commission District--July 1 through June 30.10
5th Commission District--August 1 through July 31.11
6th Commission District--September 1 through August 31.12
7th Commission District--October 1 through September 30.13
8th Commission District--November 1 through October 31.14
(b) Commencing January 1, 2011, licenses shall be issued for a term of two15
years initially staggering the two-year license so Commission Districts 1, 3, 5, and16
7 will be issued a one-year license in 2011 and a two-year license thereafter.17
Recreational product license fees shall be prorated to cover the period from18
December 31, 2010, until license renewal.19
(2) The license of any recreational products dealer or shall expire December20
31, 2010, and the license of any licensee who does not maintain a place of business21
in this state shall expire on December thirty-first of each year.22
C. General licensing and compliance requirements for all license applicants23
and holders.:24
* * *25
(9) All licensees are required to furnish and keep in force required liability26
insurance coverage or liability protection provided by a liability trust fund as27
authorized by R.S. 22:46(9)(d) on vehicles in accordance with the financial28
responsibility laws of the state of Louisiana. All applications for license pursuant29
to this Chapter shall include evidence the applicant has insurance covering its place30 ENROLLEDHB NO. 1222
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of business and its operation that complies with the financial responsibility laws of1
this state and as determined by the applicant and its insurance agent, that is necessary2
to provide coverage to the place and nature of the business sought to be licensed to3
protect the applicant and the consumers of this state. Failure to maintain such4
insurance or liability protection shall result in the immediate suspension of license,5
which suspension shall be effective as of the date of said the failure to maintain said6
liability insurance coverage or liability protection until proof of the required liability7
insurance or liability protection is furnished to the commission. If no proof is8
furnished to the commission within thirty days, the license of said such licensee shall9
be revoked. Recreational product dealers selling all-terrain vehicles shall not be10
required to furnish and keep in force the minimum garage liability insurance11
coverage on all-terrain vehicles offered for sale unless the vehicles are utilized on the12
streets and roadways for demonstration or any other purpose.13
(10) All foreign corporations persons seeking or maintaining a license under14
this Chapter must be registered to do business in this state with the secretary of state.15
Evidence showing such registration shall be furnished by such applicant or licensee.16
* * *17
D. Additional licensing and compliance requirements for manufacturers,18
distributors, wholesalers, converters or secondary manufacturers, distributors or19
wholesalers, factory branches and distributor branches .:20
* * *21
(7) Upon execution of a franchise, or addendum thereto, with a motor22
vehicle dealer, recreational products dealer, or specialty vehicle dealer, the23
manufacturer, distributor, wholesaler, or a convertor or secondary manufacturer shall24
immediately file with the commission a copy of the franchise or addendum.25
E. Additional licensing and compliance requirements for motor vehicle and26
recreational products dealers.27
* * *28 ENROLLEDHB NO. 1222
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(7) All motor vehicle or recreational products dealers shall furnish evidence1
that they currently have garage liability insurance or liability protection provided by2
a liability trust fund as authorized by R.S. 22:46(9)(d) covering their place of3
business. The required insurance policy or liability protection shall have limits of4
not less than one hundred thousand dollars for bodily injury to one person, three5
hundred thousand dollars per accident, and fifty thousand dollars for property6
damage dealer applications for license pursuant to this Chapter shall include7
evidence the applicant has insurance covering its place of business and its operation8
that complies with the financial responsibility laws of this state and as determined9
by the applicant and its insurance agent, that is necessary to provide coverage to the10
place and nature of the business sought to be licensed to protect the applicant and the11
consumers of this state. Said Such insurance or liability protection shall be12
maintained throughout the period of licensure. Failure to maintain such insurance13
or liability protection shall result in the immediate suspension of license, which14
suspension shall be effective as of the date of said the failure to maintain said such15
liability insurance coverage or liability protection until proof of the required garage16
liability insurance or liability protection is furnished to the commission. Should no17
proof of insurance or liability protection provided by a liability trust fund as18
authorized by R.S. 22:46(9)(d) be furnished to the commission within thirty days, the19
license of said such licensee shall be revoked. Recreational products dealers selling20
all-terrain vehicles shall not be required to furnish and keep in force the minimum21
garage liability insurance coverage on all-terrain vehicles offered for sale unless the22
vehicles are utilized on the streets and roadways for demonstration or any other23
purpose.24
* * *25
(9)26
* * *27
(d) Notwithstanding any other provisions of law to the contrary, any motor28
vehicle or recreational products dealer holding a license hereunder shall not be29
required to obtain a license as a motor vehicle lessor, used motor vehicle dealer, or30 ENROLLEDHB NO. 1222
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specialty vehicle dealer or converter, when modifying or selling those vehicles or1
products he is duly franchised and licensed to sell, provided such operations are2
conducted from the location from which said such motor vehicle or recreational3
products dealer is licensed to do business.4
* * *5
F. Additional licensing and compliance requirements for used motor vehicle6
facilities operated by new motor vehicle dealers, motor vehicle lessors and specialty7
vehicle dealers.:8
* * *9
(4) All used motor vehicle facilities licensed by the commission shall10
furnish, evidence that they currently have garage liability insurance or liability11
protection provided by a liability trust fund as authorized by R.S. 22:46(9)(d)12
covering their places of business. The required insurance policy or liability13
protection shall have limits of not less than one hundred thousand dollars for bodily14
injury to one person, three hundred thousand dollars per accident, and fifty thousand15
dollars for property damage. in their application for license pursuant to this Chapter,16
evidence the applicant has insurance covering its place of business and its operation17
that complies with the financial responsibility laws of this state and as determined18
by the applicant and its insurance agent, that is necessary to provide coverage to the19
place and nature of the business sought to be licensed to protect the applicant and the20
consumers of this state. Said Such insurance or liability protection shall be21
maintained throughout the period of licensure. Failure to maintain such insurance22
or liability protection shall result in the immediate suspension of license, which23
suspension shall be effective as of the date of said the failure to maintain said24
liability such insurance coverage or liability protection until proof of the required25
garage liability insurance or liability protection is furnished to the commission.26
Should no proof of insurance or liability protection provided by a liability trust fund27
as authorized by R.S. 22:46(9)(d) be furnished to the commission within thirty days,28
the license of said such licensee shall be revoked. Recreational product dealers29
selling all-terrain vehicles shall not be required to furnish and keep in force the30 ENROLLEDHB NO. 1222
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minimum garage liability insurance coverage on all-terrain vehicles offered for sale1
unless the vehicles are utilized on the streets and roadways for demonstration or any2
other purpose.3
* * *4
J. Additional licensing and compliance requirements for motor vehicle5
lessors.:6
* * *7
(5) All motor vehicle lessors, shall furnish evidence that they currently have8
garage liability or other general liability insurance covering their place of business.9
The policy must have limits of not less than one hundred thousand dollars for bodily10
injury to one person, three hundred thousand dollars per accident and fifty thousand11
dollars for property damage. in their application for license pursuant to this Chapter,12
shall include evidence the applicant has insurance covering its place of business and13
its operation that complies with the financial responsibility laws of this state and as14
determined by the applicant and its insurance agent, that is necessary to provide15
coverage to the place and nature of the business sought to be licensed to protect the16
applicant and the consumers of this state. Said Such insurance must be maintained17
throughout the period of licensure. Failure to maintain such insurance shall result18
in the immediate suspension of license, which suspension shall be effective as of the19
date of said the failure to maintain said liability such insurance coverage until proof20
of the required garage liability insurance is furnished to the commission. Should no21
proof of insurance be furnished to the commission within thirty days, the license of22
said such licensee shall be revoked.23
* * *24
L. Additional licensing and compliance requirements for specialty vehicle25
dealers.:26
* * *27
(5) All specialty vehicle dealers , shall furnish evidence that they currently28
have garage liability insurance covering their place of business. The policy must29
have limits of not less than one hundred thousand dollars for bodily injury to one30 ENROLLEDHB NO. 1222
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person, three hundred thousand dollars per accident and fifty thousand dollars for1
property damage. in their application for license pursuant to this Chapter, shall2
include evidence the applicant has insurance covering its place of business and its3
operation that complies with the financial responsibility laws of this state and as4
determined by the applicant and its insurance agent, that is necessary to provide5
coverage to the place and nature of the business sought to be licensed to protect the6
applicant and the consumers of this state. Said Such insurance must be maintained7
throughout the period of licensure. Failure to maintain such insurance shall result8
in the immediate suspension of license, which suspension shall be effective as of the9
date of said the failure to maintain said liability such insurance coverage until proof10
of the required garage liability insurance is furnished to the commission. If no proof11
of insurance is furnished to the commission within thirty days, the license of said12
such licensee shall be revoked.13
* * *14
N. Any person who sells or offers to sell new motor vehicles, recreational15
products, or specialty vehicles, or leases, rents, or offers to lease or rent new motor16
vehicles, recreational products, or specialty vehicles, or conducts and designs17
advertising or participates in special sales events on behalf of licensees, and which18
is not a licensee of the commission shall, nonetheless, be subject to the provisions19
of Chapter 6 of Title 32 and the rules and regulations of the commission which20
pertain to the regulation of advertising.21
§1255. Fees; penalties22
A. To defray the cost of issuing licenses and administering this Chapter, the23
commission shall fix reasonable fees to be assessed under this Chapter.as follows:24
(1) The license for each manufacturer, distributor, converter, motor vehicle25
lessor franchisor, or wholesaler, and factory branch or distributor branch, shall not26
exceed one thousand dollars for each year covered by the license.27 ENROLLEDHB NO. 1222
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(2) The license for each motor vehicle dealer, specialty vehicle dealer,1
recreational products dealer, motor vehicle lessor, used motor vehicle dealer, factory2
representative, broker, distributor representative, or lease facilitator shall not exceed3
three hundred dollars for each year covered by the license.4
(3) The license fee for each motor vehicle salesman and motor vehicle lessor5
agent shall not exceed thirty dollars for each year covered by the license.6
(4) The fee for motor vehicle sales and shows at off-site locations auto shows,7
trade shows, and expositions shall not exceed five hundred dollars.8
(5) The fee for satellite warranty and repair centers shall not exceed three9
hundred dollars for each year covered by the license.10
* * *11
§1260. Penalties; other relief12
* * *13
C. The commission may render judgment for costs, or any part thereof,14
against any party to proceedings held or court reporter fees, commission, attorney15
fees, the mileage and per diem of the commissioners, and other applicable and16
reasonable costs.17
* * *18
E. In addition to the penalties provided pursuant to this Chapter, the19
commission is expressly empowered and authorized, after following the procedures20
of this Chapter, to order the repurchase of all vehicles, signs, special tools, and21
automotive equipment and pay the costs to the licensee for the cost of transporting,22
handling, packing, and loading of vehicles, parts, signs, tools, and equipment subject23
to the repurchase requirements of R.S. 32:1268.24
F. Upon the failure of any person to comply with any order of the25
commission issued as a result of a violation of this Chapter, or a rule or regulation26
adopted by the commission, the commission is authorized to file civil proceedings27
to enforce its order in the Twenty-Fourth Judicial District Court for the parish of28
Jefferson by rule to show cause conducted pursuant to the relevant provisions of the29
Louisiana Code of Civil Procedure. The commission shall be entitled to recover30 ENROLLEDHB NO. 1222
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from such party all costs of the proceeding, including but not limited to court costs,1
discovery costs, and reasonable attorney fees incurred by the commission in2
enforcing its order.3
§1261. Unauthorized acts4
It shall be a violation of this Chapter:5
(1) For a manufacturer, a distributor, a wholesaler, distributor branch, factory6
branch, converter or officer, agent, or other representative thereof:7
(a) To induce or coerce, or attempt to induce or coerce, any licensee or8
specialty vehicle dealer:9
(i) To order or accept delivery of any recreational product, motor vehicle or10
vehicles, appliances, equipment, parts or accessories therefor, or any other11
commodity or commodities which shall not have been voluntarily ordered.12
* * *13
(b) To refuse to deliver to any duly licensed motor vehicle dealer licensee14
having a franchise or contractual arrangement for the retail sale of new motor15
vehicles sold or distributed by such manufacturer, distributor, wholesaler, distributor16
branch or factory branch, any motor vehicle, publicly advertised for immediate17
delivery, within sixty days after such dealer's order shall have been received.18
* * *19
(d) To unfairly, without just cause and due regard to the equities of said such20
dealer, cancel the franchise of any motor vehicle dealer licensee. Failure to meet21
performance standards based on a survey of sales penetration in a regional, national,22
territorial, or other geographic area shall not be the sole cause for cancellation of a23
franchise. The nonrenewal of a franchise or selling agreement with said such dealer24
or his successor without just provocation or cause, or the refusal to approve a25
qualified transferee or qualified successor to the dealer-operator as provided for in26
the franchise or selling agreement, or solely for failure to meet performance27
standards based on a survey of sales penetration in a regional, national, territorial,28
or other geographic area, shall be deemed an evasion of this Paragraph and shall29
constitute an unfair cancellation, regardless of the terms or provisions of such30 ENROLLEDHB NO. 1222
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franchise or selling agreement. However, at least ninety days ninety-days notice1
must shall be given to the dealer of any cancellation or nonrenewal of a franchise2
except for a cancellation arising out of the financial default of the motor vehicle3
dealer or fraudulent activity of the dealer principal which results in the conviction4
of a crime punishable by imprisonment. The provisions of this Subsection relating5
to performance standards shall not apply to recreational products dealers.6
(e) To refuse to extend to a motor vehicle dealer licensee the privilege of7
determining the mode or manner of available transportation facility that said such8
dealer desires to be used or employed in making deliveries of new motor vehicles to9
him or it.10
* * *11
(g) To delay, refuse, or fail to deliver motor vehicles in reasonable quantities12
relative to the new motor vehicle dealer's licensee's facilities and sales potential in13
the relevant market area. This Subparagraph shall not be valid, however, if such14
failure is caused by acts or causes beyond the control of the manufacturer,15
distributor, or other such party.16
(h) To ship or sell motor vehicles to a motor vehicle dealer or recreational17
products to a licensee prior to the motor vehicle dealer licensee having been granted18
a license by the commission to sell such motor vehicles.19
(i) To unreasonably withhold consent to the sale, transfer, or exchange of the20
franchise to a qualified transferee capable of being licensed as a new motor vehicle21
dealer in this state, provided the transferee meets the criteria generally applied by the22
manufacturer in approving new motor vehicle dealers and agrees to be bound by all23
the terms and conditions of the standard franchises.24
* * *25
(k)(i) To sell or offer to sell a new or unused motor vehicle or recreational26
product directly to a consumer except as provided in this Chapter, or to compete with27
a new motor vehicle dealer licensee in the same line same-line makes, models, or28
classifications operating under an agreement or franchise from the aforementioned29 ENROLLEDHB NO. 1222
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manufacturer. A manufacturer shall not, however, be deemed to be competing when1
any one of the following conditions are met:2
* * *3
(ii) After any of the conditions have been met under Subitems (aa) and (bb)4
above,of Item (i) of this Subparagraph, the commission shall allow the manufacturer5
of new motor vehicles to compete with new motor vehicle dealers licensees of the6
same-line makes, models, or classifications under an agreement or franchise from7
said manufacturer for longer than two years when, in the discretion of the8
commission, the best interest of the manufacturer, consuming public, and new motor9
vehicle dealer licensees are best served.10
* * *11
(n) To fail to designate and provide to the commission in writing the12
community or territory assigned to a motor vehicle dealer licensee.13
* * *14
(p) To unreasonably discriminate among competing, similarly-situated15
similarly situated, same line same-line make motor vehicle dealers in the sales of16
vehicles, in the availability of such vehicles, in the terms of incentive programs or17
sales promotion plans, or in other similar programs.18
* * *19
(2) For a motor vehicle dealer, specialty vehicle dealer, recreational product20
dealer, used motor vehicle dealer, or a motor vehicle salesman:21
(a) To require a purchaser of a new motor vehicle, as a condition of sale and22
delivery thereof, to also purchase special features, appliances, accessories, or23
equipment not desired or requested by the purchaser; however, this prohibition shall24
not apply as to special features, appliances, accessories, or equipment which are25
permanently affixed to the vehicle.26
(b) To represent and sell as a new motor vehicle any motor vehicle, the legal27
title of which has been transferred by a manufacturer, distributor, or dealer to an28
ultimate purchaser.29 ENROLLEDHB NO. 1222
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(c) To resort to or use any false or misleading advertisement in connection1
with his business as such motor vehicle dealer or motor vehicle salesman.2
(d) To sell or offer to sell makes, models, or classifications of new motor3
vehicles for which no franchise and license to sell is held.4
(e) Except as otherwise approved by the commission, to sell or offer to sell5
a motor vehicle from an unlicensed location.6
(f) To deliver to a prospective purchaser a new or a used motor vehicle on7
a sale conditioned on financing, i.e., a spot delivery, except on the following terms8
and conditions which shall be in writing and shall be a part of the conditional sales9
contract or other written notification signed by the purchaser:10
* * *11
(ii) That the motor vehicle being offered for trade-in by the purchaser shall12
not be sold by the motor vehicle dealer until the conditional sale is complete.13
* * *14
(iv) That if the conditional sale is not completed, the motor vehicle dealer15
shall immediately refund to the purchaser upon return of the vehicle all sums placed16
with the dealership as a deposit or any other purpose associated with the attempted17
sale of the vehicle.18
* * *19
(g) To pay a fee to any person in return for the solicitation, procurement, or20
production by that person of prospective purchasers for new and used motor21
vehicles, except to a salesman licensed under the provisions of this Chapter.22
* * *23
(i) When selling a motor vehicle to a consumer, to assess any consumer24
services fees, which shall include fees for treating the interior upholstery of the25
vehicle, oil changes, roadside assistance, dealer inspections, or any other service26
offered by the dealer, without allowing the buyer to refuse such services and be27
exempt from payment for such services. The provisions of this Subparagraph shall28 ENROLLEDHB NO. 1222
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not apply to dealer added dealer-added options or accessories which are permanently1
affixed to the vehicle.2
* * *3
(3) For a motor vehicle or recreational product lessor or motor vehicle lessor4
agent:5
(a) To represent and sell as a new motor vehicle any motor vehicle which has6
been used or intended to be used and operated for leasing and rental purposes.7
(b) To resort to or use any false or misleading advertising in connection with8
the business of leasing or renting motor vehicles.9
(c) To lease, rent, sell, or offer to sell a motor vehicle from a location not10
licensed for such activity.11
(d) To rent or lease any motor vehicle which has been located within the this12
state of Louisiana for a period of thirty days or more, unless such motor vehicle has13
been issued a Louisiana license plate by, and all license fees and taxes have been14
paid to, the this state of Louisiana.15
(e) To pay a fee to any person in return for the solicitation, procurement, or16
production by that person of prospective lessees of motor vehicles, unless the person17
receiving the fee is a lease facilitator who holds a valid license as provided by this18
Chapter and a valid appointment from the motor vehicle lessor as provided by R.S.19
32:1266(B)(1). The fees prohibited by this Subparagraph shall not include amounts20
paid to a motor vehicle dealer as part of the consideration for the sale or assignment21
of a lease or leased vehicle or other amounts paid to the motor vehicle dealer who22
transfers the title on the vehicle or assigns the lease contract to the motor vehicle23
lessor.24
(f) To fail to fully and completely explain each charge listed on a retail25
buyer's or lessee's order or vehicle invoice or leasing agreement prior to the lease of26
a vehicle.27
(g) When leasing a motor vehicle to a consumer, to assess any consumer28
services fees, which shall include fees for treating the interior upholstery of the29
vehicle, oil changes, roadside assistance, dealer inspections, or any other service30 ENROLLEDHB NO. 1222
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offered by the motor vehicle lessor, without allowing the consumer to refuse such1
services and be exempt from payment for such services. The provisions of this2
Subparagraph shall not apply to motor vehicle lessor added lessor-added options or3
accessories which are permanently affixed to the vehicle.4
(4) For a lease facilitator:5
(a) To hold himself out to any person as a "leasing company", "leasing6
agent", "lease facilitator", or similar title, directly or indirectly engaged in the7
business of a lease facilitator, or otherwise engaged in the solicitation or procurement8
of prospective lessees for motor vehicles not titled in the name of and registered to9
the lease facilitator, without holding a valid lease facilitator license and being in10
compliance with the terms of this Chapter.11
(b) To sell or offer to sell a new motor vehicle.12
* * *13
(d) To sign a motor vehicle manufacturer's statement of origin to a vehicle,14
accept an assignment of a manufacturer's statement of origin to a vehicle, or15
otherwise assume any element of title to a new motor vehicle.16
* * *17
(5) For a broker:18
(a) To hold himself out to any person as a "broker", "purchasing company",19
"sales agent", or similar title, engaged in the business of broker, or otherwise20
engaged in the solicitation or procurement of prospective purchasers for motor21
vehicles not titled in the name of and registered to the broker, unless the broker holds22
a valid broker license and is in compliance with the terms of this Chapter.23
(b) To sell, or offer to sell, or display a new motor vehicle.24
* * *25
(d) To sign a motor vehicle manufacturer's statement of origin to a vehicle,26
accept an assignment of a manufacturer's statement of origin to a vehicle, or27
otherwise assume any element of title to a new motor vehicle.28
* * *29 ENROLLEDHB NO. 1222
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(7) For any employee of a motor vehicle dealer, specialty vehicle dealer, or1
used motor vehicle dealer licensed by the commission, licensee while acting in the2
scope of his employment, to accept any payment, commission, fee, or compensation3
of any kind from any person other than the employing dealer licensee, unless said4
such payment is fully disclosed to and approved by the employing dealer licensee.5
§1261.1. Indemnification of franchised dealers6
Notwithstanding the terms of any franchise agreement, each manufacturer or7
converter shall indemnify and hold harmless its franchised dealers against any8
judgment for damages, including but not limited to court costs and reasonable9
attorney fees of the dealer, arising out of complaints, claims, or lawsuits including10
but not limited to strict liability, negligence, misrepresentation, express or implied11
warranty, or rescission of sale to the extent that the judgment arises out of alleged12
defective or negligent manufacture, assembly, or design of motor vehicles, speciality13
vehicle, recreational product, parts, or accessories, or other functions by the14
manufacturer of converter, which are beyond the control of the dealer.15
* * *16
§1262. Warranty; compensation; audits of dealer records17
A.(1) It shall be a violation of this Chapter for a manufacturer of motor18
vehicles, a distributor, a wholesaler, distributor branch or factory branch, or officer,19
agent or other representative thereof to fail to adequately and fairly compensate its20
dealers for labor, parts, and other expenses incurred by such dealer to perform under21
and comply with a manufacturer's or a distributor's warranty agreement.22
* * *23
B.24
* * *25
(3) A manufacturer or distributor shall not deny a claim solely based on a26
motor vehicle dealer's incidental failure to comply with a specific claim processing27
requirement, or a clerical error, or other administrative technicality.28
* * *29 ENROLLEDHB NO. 1222
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are additions.
§1263. Motor vehicle repairs1
Suppliers of mechanical repairs and services for motor vehicles any vehicle2
subject to regulation pursuant to this Chapter shall provide each consumer with an3
itemized bill indicating repairs and services performed, parts replaced, or materials4
used, the total labor charge, and the identity of the mechanic, repairman, or supplier5
who performed the work. However, nothing in this Section shall prohibit a supplier6
of mechanical repairs and services from charging a service fee for the use of shop7
supplies such as rags, fender covers, small amounts of fluid, or other items which are8
not itemized, provided that said such fee does not exceed five percent of the total9
invoice for mechanical repairs or thirty-five dollars, whichever is less.10
§1264. Damage disclosure11
A. Whenever a new motor vehicle subject to regulation pursuant to this12
Chapter is sold to any person, the seller shall notify the purchaser of any body13
damage or mechanical damage which the vehicle has sustained that exceeds six14
percent of the manufacturer's suggested retail price or, in the case of recreational15
vehicles, six percent of the manufacturer's wholesale price. Such notice shall be in16
writing and a copy thereof shall be delivered to the purchaser prior to or17
simultaneous with transfer of the vehicle title.18
B. Replacement of a new recreational vehicle's instrument panels,19
appliances, furniture, cabinetry, televisions, audio equipment, or similar residential20
components shall not be deemed "damage" pursuant to this Section if such items are21
replaced with original manufacturers' parts and materials.22
B. C. This Section shall apply to all instances of vehicular body or23
mechanical damage to new motor vehicles and to all actions involving such damage,24
notwithstanding the application of other codal, statutory, or regulatory provisions,25
including but not limited to Civil Code Articles 2520 et seq.26
* * *27
§1268. Requirements upon termination; penalty; indemnity28
A.(1) In the event the licensee ceases to engage in the business of being a29
motor vehicle, recreational products, or specialty vehicle dealer, or ceases to sell a30 ENROLLEDHB NO. 1222
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are additions.
particular make of motor vehicle, recreational product, or specialty vehicle and after1
notice to the manufacturer, converter, distributor, or representative by registered or2
certified mail or commercial delivery service with verification of receipt, within3
thirty days of the receipt of the notice by the manufacturer, converter, distributor, or4
representative, the manufacturer, converter, distributor, or representative shall5
repurchase:6
(a) All new motor vehicle, recreational product, and specialty vehicles of the7
current and last prior model year delivered to the licensee and parts on hand that8
have not been damaged or substantially altered to the prejudice of the manufacturer9
while in the possession of the licensee. As to recreational products dealers, the10
repurchase of parts shall be limited to those listed in the manufacturer's price book.11
The motor vehicle, recreational product, and specialty vehicles and parts shall be12
repurchased at the cost to the licensee which shall include without limitation freight13
and advertising costs, less all allowances paid to the dealer, except that new14
automobiles shall be purchased on the schedule as follows:15
* * *16
(d) The manufacturer, converter, distributor, or representative shall pay to17
the dealer the costs of transporting, handling, packing, and loading of recreational18
product, motor and speciality vehicles, or parts, signs, tools, and equipment subject19
to repurchase.20
(2) The manufacturer or converter shall make the required repurchase after21
the dealer terminates his franchise and within thirty days for motor and speciality22
vehicle dealers and sixty days for recreational products dealers of the submission to23
it, by registered or certified mail, return receipt requested, or commercial delivery24
service with verification of receipt, of a final inventory of motor vehicles and parts25
on hand.26
B. Failure to make said such repurchase without just cause shall subject the27
manufacturer or converter to a penalty of one and one-half percent per month, or28
fraction thereof, of the inventory value or returnable recreational product, speciality29 ENROLLEDHB NO. 1222
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are additions.
and motor vehicles, and parts, signs, special tools, and automotive service1
equipment, payable to the dealer, as long as said the repurchase is not made.2
* * *3
Section 2. R.S. 32:1268.1 is hereby repealed in its entirety.4
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: