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Regular Session, 2012
SENATE BILL NO. 175
BY SENATOR APPEL
MOTOR VEHICLES. Provides relative to unauthorized acts of certain persons regulated
by the Louisiana Motor Vehicle Commission. (8/1/12)
AN ACT1
To amend and reenact R.S. 32:1268(A)(1)(a)(introductory paragraph) and (c), (2) and (B),2
and to enact R.S. 32:1261(1)(x), relative to the Louisiana Motor Vehicle3
Commission; to provide for regulation and enforcement by the commission; to4
provide for repurchase of certain tools and equipment; to provide for unauthorized5
actions of certain persons regulated by the commission; and to provide for related6
matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 32:1268(A)(1)(a)(introductory paragraph) and (c), (2) and (B) are9
hereby amended and reenacted and R.S. 32:1261(1)(x) is hereby enacted to read as follows:10
§1261. Unauthorized acts11
It shall be a violation of this Chapter:12
(1) For a manufacturer, a distributor, a wholesaler, distributor branch, factory13
branch, converter or officer, agent, or other representative thereof:14
* * *15
(x) To charge back, deny vehicle allocation, withhold payments, or take16
any other adverse actions against a motor vehicle dealer because of a sale of a17 SB NO. 175
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new motor vehicle that is exported from the United States, unless it is shown1
that the dealer knew or reasonably should have known on the date of the sale2
that the new motor vehicle was to be exported. A motor vehicle dealer shall be3
rebuttably presumed to have no knowledge of the export if the motor vehicle is4
sold by the dealer to a resident of the United States who titles and registers the5
motor vehicle in any state within the United States.6
* * *7
§1268. Requirements upon termination; penalty; indemnity8
A.(1) In the event the licensee ceases to engage in the business of being a9
motor vehicle, recreational products, or specialty vehicle dealer, or ceases to sell a10
particular make of motor vehicle, recreational product, or specialty vehicle and after11
notice to the manufacturer, converter, distributor, or representative by certified mail12
or commercial delivery service with verification of receipt, within thirty days of the13
receipt of the notice by the manufacturer, converter, distributor, or representative, the14
manufacturer, converter, distributor, or representative shall repurchase:15
(a) All new motor vehicle, recreational product, and specialty vehicles of the16
current and last prior model year delivered to the licensee and parts on hand17
purchased in the ordinary course of business that have not been damaged or18
substantially altered to the prejudice of the manufacturer while in the possession of19
the licensee. As to recreational products dealers, the repurchase of parts shall be20
limited to those listed in the manufacturer's price book. The motor vehicle,21
recreational product, and specialty vehicles and parts shall be repurchased at the cost22
to the licensee which shall include without limitation freight and advertising costs,23
less all allowances paid to the dealer, except that new automobiles shall be purchased24
on the schedule as follows:25
* * *26
(c) At fair market value, all special tools and automotive service equipment27
owned by the dealer which were recommended in writing and designated as special28
tools and equipment and purchased in the ordinary course of business from or29 SB NO. 175
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purchased at the request of the manufacturer, converter, distributor, or representative,1
if the tools and equipment are in usable and good condition except for reasonable2
wear and tear. Fair market value shall be no less than cost of acquisition of special3
tools and automotive service equipment by the dealer.4
* * *5
(2)(a) The manufacturer or converter shall make the required repurchase after6
the dealer terminates his franchise and within thirty days for motor and speciality7
vehicle dealers and sixty days for recreational products dealers of the submission to8
it, by certified mail, return receipt requested, or commercial delivery service with9
verification of receipt, of a final inventory of motor vehicles and parts on hand.10
Within thirty days after a motor vehicle dealer terminates his franchise, the11
manufacturer or converter shall make required repurchases after such dealer12
has satisfied all of the following conditions:13
(i) The motor vehicle dealer submits to the manufacturer, by certified14
mail, return receipt requested, or commercial delivery service with verification15
of receipt, a final inventory of motor vehicles and parts, special tools, and16
automotive services on hand.17
(ii) The motor vehicle dealer tenders the parts, special tools, and18
automotive service equipment to the manufacturer.19
(b) Within thirty days after a specialty vehicle dealer terminates his20
franchise, the manufacturer or converter shall make required repurchases after21
such dealer has submitted to the manufacturer by certified mail, return receipt22
requested, or commercial delivery service with verification of receipt, a final23
inventory of motor vehicles and parts on hand.24
(c) Within sixty days after a recreational products dealer terminates his25
franchise, the manufacturer or converter shall make required repurchases after26
such dealer has submitted to the manufacturer by certified mail, return receipt27
requested, or commercial delivery service with verification of receipt, a final28
inventory of motor vehicles and parts on hand.29 SB NO. 175
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1
B. Failure to make such repurchase without just cause shall subject the2
manufacturer or converter to a penalty of one and one-half percent per month, or3
fraction thereof, of the inventory value or returnable recreational product, speciality4
specialty and motor vehicles, and parts, signs, special tools, and automotive service5
equipment, payable to the dealer, as long as the repurchase is not made.6
* * *7
The original instrument was prepared by Michelle Ducharme. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Thomas L. Tyler.
DIGEST
Appel (SB 175)
Present law provides for the requirements upon termination of a dealer licensee.
Present law requires the repurchase of all new motor vehicles, recreational products, and
speciality vehicles of the current and last prior model year delivered to the licensee and parts
on hand that have not been damaged or substantially altered to the prejudice of the
manufacturer while in the possession of the licensee.
Present law requires repurchase at fair market value of all special tools and automotive
service equipment owned by the dealer which were recommended in writing and designated
as special tools and equipment and purchased from or purchased at the request of the
manufacturer, converter, distributor, or representative, if the tools and equipment are in
usable and good condition except for reasonable wear and tear. Fair market value shall be
no less than cost of acquisition of special tools and automotive service equipment by the
dealer.
Proposed law provides that the items to be repurchased were purchased in the ordinary
course of business.
Present law requires the manufacturer or converter to make the required repurchase after the
dealer terminates his franchise and within 30 days for motor and speciality vehicle dealers
and 60 days for recreational products dealers of the submission to it, by certified mail, return
receipt requested, or commercial delivery service with verification of receipt, of a final
inventory of motor vehicles and parts.
Proposed law requires that within 30 days after a motor vehicle dealer terminates his
franchise, the manufacturer or converter is to make required repurchases after the dealer has
satisfied all of the following conditions:
1. The dealer submits to the manufacturer, by certified mail, return receipt requested,
or commercial delivery service with verification of receipt, a final inventory of motor
vehicles and parts, special tools, and automotive services on hand; and
2. The dealer tenders the parts, special tools, and automotive service equipment to the
manufacturer.
Further requires that within 30 days after a specialty vehicle dealer terminates his franchise, SB NO. 175
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
the manufacturer or converter is to make the required repurchases after the dealer has
submitted to the manufacturer by certified mail, return receipt requested, or commercial
delivery service with verification of receipt, a final inventory of motor vehicles and parts on
hand.
Proposed law requires that within 60 days after a recreational products dealer terminates his
franchise, the manufacturer or converter is to make required repurchases after the dealer has
submitted to the manufacturer by certified mail, return receipt requested, or commercial
delivery service with verification of receipt, a final inventory of motor vehicles and parts on
hand.
Present law provides for unauthorized actions of a manufacturer, distributor, wholesaler,
distributor branch, factory branch, or converter of motor vehicles, or officer, agent, or other
representative thereof.
Proposed law retains present law and prohibits a manufacturer, distributor, wholesaler,
distributor branch, factory branch, or converter of motor vehicles, or officer, agent, or other
representative thereof from charging back, denying vehicle allocation, withholding
payments, or taking any other adverse actions against a motor vehicle dealer because of a
sale of a new motor vehicle that is exported from the United States, unless it is shown that
the dealer knew or reasonably should have known on the date of the sale that the new motor
vehicle was to be exported. A motor vehicle dealer shall be rebuttably presumed to have no
knowledge of the export if the motor vehicle is sold by the dealer to a resident of the United
States who titles and registers the motor vehicle in any state within the United States.
Effective August 1, 2012.
(Amends R.S. 32:1268(A)(1)(a)(intro para) and (c), (2) and (B); 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. Specifies that for repurchase, new motor vehicles, recreational products,
specialty vehicles, tools and automotive service equipment owned by the
dealer were purchased in the ordinary course of business.
2. Adds that for motor vehicles, the manufacturer or converter shall make the
required repurchase after the dealer terminates his franchise and tenders the
parts and special tools and automotive service equipment to the
manufacturer.
Senate Floor Amendments to reengrossed bill.
1. Provides for the repurchase after a dealer terminates the franchise of a
manufacturer or converter.