ENROLLED
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ACT No. 258
Regular Session, 2010
HOUSE BILL NO. 591
BY REPRESENTATIVE ARNOLD
AN ACT1
To enact R.S. 6:969.24.1 and 969.24.2, relative to the Motor Vehicle Sales Finance Act; to2
prohibit any act that lessens or eliminates competition; to provide for exceptions; to3
prohibit a lender in a motor vehicle retail purchase from requiring a dealer to sell any4
insurance coverage, service, or product in order to secure preferential financing rates;5
and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 6:969.24.1 and 969.24.2 are hereby enacted to read as follows: 8
§969.24.1. Acts to lessen or eliminate competition prohibited9
A. Any person or any affiliates thereof, subject to the provisions of this10
Chapter, shall be prohibited from making statements, threats, promises, acts,11
contracts, or offers of contracts that the intended or actual effect of which is to12
coerce or attempt to coerce any seller to sell or offer to sell any extended service13
contract, extended maintenance plan, or GAP product offered, sold, backed, or14
sponsored by a particular entity, including but not limited to any manufacturer or15
distributor of motor vehicles or affiliates thereof, as defined in R.S. 32:1252, by16
setting limits for the amount financed in regard to the financing of premium or other17
charges for any insurance coverage, product, or service financed on the retail18
installment contract, when the discrimination in the amount financed limits is based,19
in whole or in part, upon whether or not the product, insurance, or service is provided20
by the person or affiliates thereof, subject to the provisions of this Chapter, or to the21
extent any such statements, threats, promises, acts, contracts, or offers of contracts22
shall lessen or eliminate competition to sell the aforementioned products.23 ENROLLEDHB NO. 591
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B. Nothing contained in this Section shall prohibit a person or any affiliates1
thereof, subject to the provisions of this Chapter, from offering or providing2
incentive benefits or bonus programs to a seller or prospective seller who makes the3
voluntary decision to sell or offer to sell any extended service contract, extended4
maintenance plan, or GAP product offered, sold, backed, or sponsored by a particular5
entity, including but not limited to any manufacturer or distributor of motor vehicles6
or affiliates thereof, as defined in R.S. 32:1252, or to sell, assign, or transfer any7
retail installment sale or lease by him of motor vehicles manufactured or sold by the8
manufacturer or distributor to a specified finance company or leasing company.9
§969.24.2. Mandatory sales prohibited10
It shall be a violation of this Chapter for any person subject to the provisions11
of this Chapter to require a seller to sell any insurance coverage, product, or service,12
which is provided, administered, or sold by a person or any affiliates thereof, subject13
to the provisions of this Chapter, in order to secure preferential financing or14
preferential limits on the amounts financed rates for the dealership or its customers.15
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: