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Coding: Words which are struck through are deletions from existing law;
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Regular Session, 2010
SENATE BILL NO. 222
BY SENATOR APPEL
COMMERCIAL REGULATIONS. Provides relative to the relationship of automobile
manufacturers and dealers. (8/15/10)
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 automobile manufacturers and3
dealers; to provide for unauthorized acts; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 32:1261(1)(introductory paragraph) is hereby amended and reenacted6
and R.S. 32:1261(1)(x) and (y) are hereby enacted to read as follows: 7
ยง1261. Unauthorized acts8
It shall be a violation of this Chapter:9
(1) For a manufacturer, a distributor, a wholesaler, distributor branch, factory10
branch, converter or officer, agent, or other representative, subsidiary, affiliate,11
entity, or relation thereof:12
* * *13
(x) To induce, force, coerce or require, or to attempt to induce, force,14
coerce or require any motor vehicle dealer or licensee to enter into any real15
estate agreement with a manufacturer, distributor, wholesaler, distributor16
branch or factory branch, agent, representative, subsidiary, affiliate, entity or17 SB NO. 222
SLS 10RS-412 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
relation thereof for any one of the following circumstances:1
(i) For the purpose of using or threatening to use their position as, or2
their relationship with, a landlord to a licensee in an effort to force the3
termination or relocation, or otherwise adversely affect the franchise of the4
licensee, or to influence the rent or relationship between the licensee and its5
landlord.6
(ii) Where the cost of entering into or renewing such real estate lease7
with a licensee is greater than the fair market rent of the subject real estate, said8
rent being valued "as restricted for the exclusive use as a franchisee of that9
manufacturer."10
(iii) Where the licensee is not granted a provision in such lease agreement11
allowing the licensee the right to purchase the property at any time at the12
licensee's option of either of the following values:13
(aa) The fair market value, with the restriction prohibiting the use of the14
property as a franchisee of another manufacturer for a maximum of ten years.15
(bb) Unrestricted fair market value.16
(y) To refuse to re-lease, or to amend or extend a lease on a real estate17
property to a licensee other than on the grounds set forth in Subparagraph (x)18
of this Paragraph, and on the manufacturer's standard form lease terms.19
* * *20
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
Present law prohibits certain acts of automobile 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.
(a)Using or threatening to use their position as, or their relationship with, a SB NO. 222
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
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, said 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.
Effective August 15, 2010.
(Amends R.S. 32:1261(1)(intro para); adds R.S. 32:1261(1)(x) and (y))