HLS 10RS-1778 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. 869
BY REPRESENTATIVE LOPINTO
MTR VEHICLE/DEALERS: Provides relative to the relationship of motor vehicle
manufacturers and dealers
AN ACT1
To amend and reenact R.S. 32:1261(1)(introductory paragraph) and to enact R.S.2
32:1261(1)(x) and (y), relative to the relationship of motor vehicle manufacturers3
and dealers; to provide for unauthorized acts regarding real estate transactions; and4
to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 32:1261(1)(introductory paragraph) is hereby amended and reenacted7
and R.S. 32:1261(1)(x) and (y) are hereby enacted to read as follows: 8
ยง1261. Unauthorized acts9
It shall be a violation of this Chapter:10
(1) For a manufacturer, a distributor, a wholesaler, distributor branch, factory11
branch, converter or officer, agent, or other representative, subsidiary, affiliate,12
entity, or relation thereof:13
* * *14
(x) To induce, force, coerce, or require, or to attempt to induce, force,15
coerce, or require any motor vehicle dealer or licensee to enter into any real estate16
agreement with a manufacturer, distributor, wholesaler, distributor branch or factory17
branch, agent, representative, subsidiary, affiliate, entity, or relation thereof for any18
one of the following circumstances:19 HLS 10RS-1778 ORIGINAL
HB NO. 869
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are additions.
(i) For the purpose of using or threatening to use his position as, or his1
relationship with, a landlord to a licensee in an effort to force the termination or2
relocation, or otherwise adversely affect the franchise of the licensee, or to influence3
the rent or relationship between the licensee and its landlord.4
(ii) Where the cost of entering into or renewing such real estate lease with5
a licensee is greater than the fair market rent of the subject real estate, that rent being6
valued "as restricted for the exclusive use as a franchisee of that manufacturer".7
(iii) Where the licensee is not granted a provision in such lease agreement8
allowing the licensee the right to purchase the property at any time at the licensee's9
option of either of the following values:10
(aa) The fair market value, with the restriction prohibiting the use of the11
property as a franchisee of another manufacturer for a maximum of ten years.12
(bb) Unrestricted fair market value.13
(y) To refuse to re-lease, or to amend or extend a lease on a real estate14
property to a licensee other than on the grounds set forth in Subparagraph (x) of this15
Paragraph, and on the manufacturer's standard form lease terms.16
* * *17
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)]
Lopinto HB No. 869
Abstract: Prohibits motor vehicle manufacturers, distributors, or other representatives from
requiring a retail motor vehicle dealer to enter into a real estate agreement in certain
circumstances.
Present law prohibits certain acts of motor vehicle manufacturers, distributors, wholesalers,
distributer branches, factory branches, converters, officers, agents, or other representatives.
Proposed law provides for additional unauthorized acts, including:
(1)Any attempt to induce, force, coerce or require, or to induce, force, coerce or require
any motor vehicle dealer or licensee to enter into any real estate agreement with a
manufacturer, distributor, wholesaler, distributor branch or factory branch, agent,
representative, subsidiary, affiliate, entity or relation thereof for any one of the
following circumstances: HLS 10RS-1778 ORIGINAL
HB NO. 869
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(a)Using or threatening to use his position as, or his relationship with, a landlord to a
licensee in an effort to force the termination or relocation, or otherwise adversely
affect the franchise of the licensee, or to influence the rent or relationship between
the licensee and its landlord.
(b)Where the cost of entering into or renewing such real estate lease with a licensee is
greater than the fair market rent of the subject real estate, that rent being valued "as
restricted for the exclusive use as a franchisee of that manufacturer".
(c)Where the licensee is not granted a provision in such lease agreement allowing the
licensee the right to purchase the property at any time at the licensee's option of
either of the following values:
(i)The fair market value, with the restriction prohibiting the use of the property as a
franchisee of another manufacturer for a maximum of 10 years.
(ii)Unrestricted fair market value.
(2)Refusal to re-lease, or to amend or extend a lease on a real estate property to a
licensee other than on the grounds set forth in proposed law and on the
manufacturer's standard form lease terms.
(Amends R.S. 32:1261(1)(intro. para.); Adds R.S. 32:1261(1)(x) and (y))