HLS 10RS-1653 ORIGINAL
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 831
BY REPRESENTATIVE SMILEY
MTR VEHICLE/VIOLATIONS: Provides relative to violations of the La. Motor Vehicle
Sales Finance Act
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 entity or person licensed as a lender of consumer credit from3
discriminating in the setting of limits for the amount financed for any insurance4
coverage, product, or service, other than the vehicle itself, in a retail motor vehicle5
purchase; to prohibit any entity or person licensed as a lender of consumer credit in6
a motor vehicle retail purchase from requiring a retail motor vehicle dealer to sell7
any insurance coverage, service, or product, which is provided, administered, or sold8
by the extender of credit or an affiliate, in order to secure preferential financing rates;9
and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 6:969.24.1 and 969.24.2 are hereby enacted to read as follows: 12
§969.24.1. Financing discrimination prohibited13
It shall be a violation of this Chapter for any entity or person licensed under14
this Chapter to discriminate in the setting of limits for the amount financed in regard15
to the financing of premium or other charges for any insurance coverage, product,16
or service, other than the vehicle itself, which is financed on the retail installment17
contract, when the discrimination in the amount financed limits is based, at least, in18
part, upon whether or not the insurance coverage, product, or service is provided by19
a person which is owned by, related to, associated with, or controlled by a20 HLS 10RS-1653 ORIGINAL
HB NO. 831
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
manufacturer, a distributor, a wholesaler, distributor branch, factory branch,1
converter or officer, agent, related financial institution, or other representative of the2
manufacturer or distributor of the vehicle.3
§969.24.2. Mandatory sales prohibited4
It shall be a violation of this Chapter for any entity or person licensed under5
this Chapter to require a retail motor vehicle dealer to sell any insurance coverage,6
product, or service, which is provided, administered, or sold by a licensee or an7
affiliate, in order to secure preferential financing rates for the dealership or its8
customers.9
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)]
Smiley HB No. 831
Abstract: Prohibits any entity or person licensed as a lender of consumer credit from
discriminating in the setting of limits for the amount financed for any insurance
coverage, product, or service, other than the vehicle itself, in a retail motor vehicle
purchase. Prohibits any entity or person licensed as a lender of consumer credit in
a motor vehicle retail purchase from requiring a retail motor vehicle dealer to sell
any insurance coverage, product, or service in order to secure preferential financing
rates.
Proposed law prohibits any entity or person licensed as a lender of consumer credit in a
motor vehicle retail purchase from discriminating in the setting of limits for the amount
financed in regard to the financing of premium or other charges for any insurance coverage,
product, or service, other than the vehicle itself, which is financed on the retail installment
contract, when the discrimination in the amount financed limits is based, at least, in part,
upon whether or not the insurance coverage, product, or service is provided by a person
which is owned by, related to, associated with, or controlled by a manufacturer, a distributor,
a wholesaler, distributor branch, factory branch, converter or officer, agent, related financial
institution, or other representative of the manufacturer or distributor of the vehicle.
Proposed law prohibits any entity or person licensed as a lender of consumer credit in a
motor vehicle retail purchase from requiring a retail motor vehicle dealer to sell any
insurance coverage, product, or service, which is provided, administered, or sold by the
extender of credit or an affiliate, in order to secure preferential financing rates for the
dealership or its customers.
(Adds R.S. 6:969.24.1 and 969.24.2)