SLS 10RS-412 ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
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), relative to the relationship of automobile manufacturers and dealers;3
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) is 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 or amend15
any real estate agreement with a manufacturer, distributor, wholesaler,16
distributor branch or factory branch, agent, representative, subsidiary, affiliate,17 SB NO. 222
SLS 10RS-412 ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
entity or relation thereof for the purpose of using or threatening to use their1
position as, or their relationship with, a landlord to a licensee in an effort to2
force the termination or relocation, or otherwise adversely affect the franchise3
of the licensee, or to unreasonably cause the rent to be greater than fair market4
rent for the restricted use as a particular franchised dealership, or to unfairly5
influence the relationship between the licensee and its landlord.6
* * *7
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
Appel (SB 222)
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 any attempt to induce,
force, coerce or require, or to induce, force, coerce or require any motor vehicle dealer or
licensee to enter into or amend any real estate agreement with a manufacturer, distributor,
wholesaler, distributor branch or factory branch, agent, representative, subsidiary, affiliate,
entity or relation thereof for the purpose of using or threatening to use their position as, or
their 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 unreasonably
causing the rent to be greater than the fair market rent for the restricted use as a particular
franchised dealership or to unfairly influence the relationship between the licensee and its
landlord.
Effective August 15, 2010.
(Amends R.S. 32:1261(1)(intro para); adds R.S. 32:1261(1)(x))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill.
1. Changed provision enumerating certain unauthorized acts in which
automobile manufacturers, distributors, wholesalers, distributer branches,
factory branches, converters, officers, agents, or other representatives would
attempt to induce, force, coerce or require, or to induce, force, coerce or
require any motor vehicle dealer or licensee to enter into or amend any real
estate agreement with a manufacturer, distributor, wholesaler, distributor
branch or factory branch, agent, representative, subsidiary, affiliate, entity or
relation thereof for the purpose of using or threatening to use their position
as, or their 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 unreasonably cause the rent to be greater than the fair market
rent for the restricted use as a particular franchised dealership or to unfairly
influence the relationship between the licensee and its landlord.