Page 1 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012 ENROLLED
SENATE BILL NO. 175
BY SENATOR APPEL
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
new motor vehicle that is exported from the United States, unless it is shown18
that the dealer knew or reasonably should have known on the date of the sale19
ACT No. 150 SB NO. 175 ENROLLED
Page 2 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
that the new motor vehicle was to be exported. A motor vehicle dealer shall be1
rebuttably presumed to have no knowledge of the export if the motor vehicle is2
sold by the dealer to a resident of the United States who titles and registers the3
motor vehicle in any state within the United States.4
* * *5
§1268. Requirements upon termination; penalty; indemnity6
A.(1) In the event the licensee ceases to engage in the business of being a7
motor vehicle, recreational products, or specialty vehicle dealer, or ceases to sell a8
particular make of motor vehicle, recreational product, or specialty vehicle and after9
notice to the manufacturer, converter, distributor, or representative by certified mail10
or commercial delivery service with verification of receipt, within thirty days of the11
receipt of the notice by the manufacturer, converter, distributor, or representative, the12
manufacturer, converter, distributor, or representative shall repurchase:13
(a) All new motor vehicle vehicles, recreational product products, and14
specialty vehicles of the current and last prior model year delivered to the licensee15
and parts on hand purchased in the ordinary course of business that have not been16
damaged or substantially altered to the prejudice of the manufacturer while in the17
possession of the licensee. As to recreational products dealers, the repurchase of18
parts shall be limited to those listed in the manufacturer's price book. The motor19
vehicle vehicles, recreational product products, and specialty vehicles and parts20
shall be repurchased at the cost to the licensee which shall include without limitation21
freight and advertising costs, less all allowances paid to the dealer, except that new22
automobiles shall be purchased on the schedule as follows:23
* * *24
(c) At fair market value, all special tools and automotive service equipment25
owned by the dealer which were recommended in writing and designated as special26
tools and equipment and purchased in the ordinary course of business from or27
purchased at the request of the manufacturer, converter, distributor, or representative,28
if the tools and equipment are in usable and good condition except for reasonable29
wear and tear. Fair market value shall be no less than cost of acquisition of special30 SB NO. 175 ENROLLED
Page 3 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
tools and automotive service equipment by the dealer.1
* * *2
(2)(a) The manufacturer or converter shall make the required repurchase after3
the dealer terminates his franchise and within thirty days for motor and speciality4
vehicle dealers and sixty days for recreational products dealers of the submission to5
it, by certified mail, return receipt requested, or commercial delivery service with6
verification of receipt, of a final inventory of motor vehicles and parts on hand.7
After a motor vehicle dealer terminates his franchise, the manufacturer or8
converter shall make required repurchases within thirty days after such dealer9
has satisfied all of the following conditions:10
(i) The motor vehicle dealer submits to the manufacturer, by certified11
mail, return receipt requested, or commercial delivery service with verification12
of receipt, a final inventory of motor vehicles and parts, special tools, and13
automotive services on hand.14
(ii) The motor vehicle dealer tenders the parts, special tools, and15
automotive service equipment to the manufacturer.16
(b) After a specialty vehicle dealer terminates his franchise, the17
manufacturer or converter shall make required repurchases within thirty days18
after such dealer has submitted to the manufacturer by certified mail, return19
receipt requested, or commercial delivery service with verification of receipt,20
a final inventory of vehicles and parts on hand.21
(c) After a recreational products dealer terminates his franchise, the22
manufacturer or converter shall make required repurchases within sixty days23
after such dealer has submitted to the manufacturer by certified mail, return24
receipt requested, or commercial delivery service with verification of receipt,25
a final inventory of vehicles and parts on hand. This Subparagraph shall not26
apply to the repurchase of marine products and related items.27
B. Failure to make such repurchase without just cause shall subject the28
manufacturer or converter to a penalty of one and one-half percent per month, or29
fraction thereof, of the inventory value or returnable recreational product, speciality30 SB NO. 175 ENROLLED
Page 4 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
specialty and motor vehicles, and parts, signs, special tools, and automotive service1
equipment, payable to the dealer, as long as the repurchase is not made.2
* * *3
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: