HLS 10RS-1419 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 591
BY REPRESENTATIVE ARNOLD
MOTOR VEHICLES: Provides relative to the Motor Vehicle Sales Finance Act
AN ACT1
To enact R.S. 6:969.24.1, relative to the Motor Vehicle Sales Finance Act; to prohibit any2
act that lessens or eliminates competition; to provide for exceptions; and to provide3
for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 6:969.24.1 is hereby enacted to read as follows: 6
ยง969.24.1. Acts to lessen or eliminate competition prohibited7
A. Any person or entity licensed under this Title shall be prohibited from8
making statements, threats, promises, acts, contracts, or offers of contracts that the9
intended or actual effect of which is to coerce or attempt to coerce any retail motor10
vehicle dealer to sell or offer to sell any extended service contract, extended11
maintenance plan, or GAP product offered by a particular entity, including but not12
limited to any manufacturer or distributor of motor vehicles or affiliates thereof, as13
defined in R.S. 32:1252, by setting limits for the amount financed in regard to the14
financing of premium or other charges for any insurance coverage, product, or15
service financed on the retail installment contract, when the discrimination in the16
amount financed limits is based, in whole or in part, upon whether or not the product,17
insurance, or service is provided by the licensee or an affiliate or to the extent any18
such statements, threats, promises, acts, contracts, or offers of contracts shall lessen19
or eliminate competition to sell the aforementioned products.20 HLS 10RS-1419 ORIGINAL
HB NO. 591
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
B. Nothing contained in this Section shall prohibit a person or entity licensed1
under this Title from offering or providing incentive benefits or bonus programs to2
a retail motor vehicle dealer or prospective retail motor vehicle dealer who makes3
the voluntary decision to sell or offer to sell any extended service contract or4
extended maintenance plan offered, sold, backed, or sponsored by the manufacturer5
or distributor or to sell, assign, or transfer any retail installment sale or lease by him6
of motor vehicles manufactured or sold by the manufacturer or distributor to a7
specified finance company or leasing company.8
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Arnold HB No. 591
Abstract: Prohibits any act that lessens or eliminates competition among motor vehicle
dealers or other providers of motor vehicle related products.
Proposed law prohibits any person or entity licensed as a financial institution from making
statements, threats, promises, acts, contracts, or offers of contracts that the intended or actual
effect of which is to coerce or attempt to coerce any retail motor vehicle dealer to sell or
offer to sell any extended service contract, extended maintenance plan, or GAP product
offered by a particular entity, including but not limited to any manufacturer or distributor of
motor vehicles or affiliates thereof, by setting limits for the amount financed in regard to the
financing of premium or other charges for any insurance coverage, product, or service
financed on the retail installment contract, when the discrimination in the amount financed
limits is based, in whole or in part, upon whether or not the product, insurance, or service
is provided by the licensee or an affiliate or to the extent any such statements, threats,
promises, acts, contracts, or offers of contracts shall lessen or eliminate competition to sell
the aforementioned products.
Proposed law further provides that proposed law shall not prohibit a person or entity licensed
as a financial institution from offering or providing incentive benefits or bonus programs to
a retail motor vehicle dealer or prospective retail motor vehicle dealer who makes the
voluntary decision to sell or offer to sell any extended service contract or extended
maintenance plan offered, sold, backed, or sponsored by the manufacturer or distributor or
to sell, assign, or transfer any retail installment sale or lease by him of motor vehicles
manufactured or sold by the manufacturer or distributor to a specified finance company or
leasing company.
(Adds R.S. 40:969.24.1)