HLS 12RS-2342 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 1176
BY REPRESENTATIVE CROMER
MTR VEHICLE/DEALERS: Deletes certain provisions concerning "area of responsibility"
for marine dealers
AN ACT1
To amend and reenact R.S. 32:1252(7), relative to the distribution and sale of motor2
vehicles; to provide for the definitions of "community or territory" or "area of3
responsibility" as it applies to marine dealers; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 32:1252(7) is hereby amended and reenacted to read as follows: 6
ยง1252. Definitions7
The following words, terms, and phrases, when used in this Chapter, shall8
have the meanings respectively ascribed to them in this Section, except where the9
context clearly indicates a different meaning:10
* * *11
(7) "Community or territory" or "area of responsibility" shall mean the12
licensee's area of principal sales and service responsibility as specified by the13
franchise in effect with any licensee of the commission.14
(a) The area of responsibility of a licensee shall not be comprised of an area15
less than the applicable area provided for in Subparagraphs (b) and (c) of this16
Paragraph, unless approved by the commission pursuant to the provisions of this17
Chapter, or if, on August 15, 2001, such dealer had an effective contractual18
agreement for a smaller area of responsibility.19 HLS 12RS-2342 ORIGINAL
HB NO. 1176
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are additions.
(b) (a) A marine dealer's area of responsibility shall mean the marine dealer's1
area of principal sales and service responsibility as specified by the contract,2
franchise, or selling agreement in effect with the manufacturer or distributor. The3
marine manufacturer or distributor shall designate and provide to the commission in4
writing the marine dealer's area of responsibility when the contract is granted or,5
should there be contracts in existence on August 15, 2004, without such designation,6
the commission shall require the manufacturer or distributor to designate the area of7
responsibility. The manufacturer or distributor shall adopt uniform procedures to8
establish the area of responsibility that is assigned to a marine dealer. The uniform9
procedures shall include market research information from identified credible10
industry sources that project product sales of the brand of marine product for which11
the contract or franchise agreement is granted. In the absence of such designation by12
the manufacturer or distributor, or in the event that the area of responsibility13
designated by the manufacturer or distributor is rejected by the commission and such14
decision by the commission is affirmed on appeal, the marine dealer's area of15
responsibility shall mean either of the following:16
(i) The area within a fifteen-mile radius of the dealership if the dealership17
is located in a parish containing a population of three hundred thousand persons or18
more.19
(ii) The area within a thirty-mile radius of the dealership if the dealership is20
located in a parish containing a population of less than three hundred thousand21
persons.22
(c) (b) A motorcycle or all-terrain vehicle dealer's area of responsibility shall23
mean the area within at least a thirty-mile radius of the location of his dealership.24
* * *25 HLS 12RS-2342 ORIGINAL
HB NO. 1176
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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)]
Cromer HB No. 1176
Abstract: Changes area of responsibility for marine dealers regarding the distribution and
sale of their product to be the licensee's area of principal sales and serve
responsibility as specified by the franchise agreement with the licensee and deletes
provisions requiring commission approval and radius limitations.
Present law provides that with regard to the distribution and sale of motor vehicles regulated
by the La. Motor Vehicle Commission, the terms "community or territory" or "area of
responsibility" shall mean the licensee's area of principal sales and service responsibility as
specified by the franchise in effect with the licensee.
Present law specifies that for marine dealers, the area of responsibility is as specified by the
contract, franchise, or selling agreement in effect with the manufacturer or distributor.
Requires the manufacturer or distributor to designate the marine dealer's area of
responsibility when the contract is granted and provide that to the commission. Provides that
if there is a contract in existence on Aug. 15, 2004 without such designation, the commission
shall require the manufacturer or distributor to designate the area of responsibility. Requires
the manufacturer or distributor to adopt uniform procedures to establish areas of
responsibility that is assigned to a dealer including such things as market research
information and sales projections.
Present law further prohibits, absent a designation by the manufacturer or distributor within
the contract or franchise agreement or absent approval of the commission, the area of
responsibility from being less than the following:
1) For marine dealers, if the dealership is located in a parish with a population of
300,000 or more, the area of responsibility is the area within a 15 mile radius of the
dealership and if the dealership is located in a parish with a population of less than
300,000, the area of responsibility is the area within a 30 mile radius of the
dealership.
2) For motorcycle or all-terrain dealers, the area of responsibility is the area within at
least a 30 mile radius of the dealership.
Proposed law changes present law provisions with regard to the area of responsibility for
marine dealers so that the area of responsibility for marine dealers is the licensee's area of
principal sales and serve responsibility as specified by the franchise agreement with the
licensee. Retains present law requirement that absent a designation in contracts prior to Aug.
15, 2004, the manufacturer or distributor designates the area of responsibility adopting
uniform procedures to establish the area and provide the established area to the commission.
Deletes present law references to radius requirements for marine dealers
Proposed law retains resent law with regard to motorcycle and all-terrain dealer area of
responsibility.
(Amends R.S. 32:1252(7))