The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Michelle Ducharme.
DIGEST
Gary Smith (SB 318)
Present law provides that it is a violation of law for a manufacturer, a distributor, a wholesaler,
distributor branch, factory branch, converter or officer, agent, or other representative thereof to
operate a satellite warranty and repair center, to authorize a person to perform warranty repairs
who is not a motor vehicle dealer, or to authorize a motor vehicle dealer to operate a satellite
warranty and repair center within the community or territory of a same-line or make motor
vehicle dealer. Present law makes an exemption for recreational product manufacturer.
Proposed law retains present law and adds two exemptions as follows:
(1)Emergency service of a vehicle.
(2)A fleet owner or governmental entity that is authorized to perform warranty repairs on
vehicles with a gross vehicle weight rating of twelve thousand pounds or more owned by
the fleet owner or governmental entity. Notification by the selling dealer or the fleet
owner or governmental entity to do so and the program information by manufacturer shall
be given to such dealer located in the same community or territory of the fleet owner or
governmental entity.
Proposed law defines "fleet owner or governmental entity" as a person or unit of government
who owns or leases for its own use or a renting or leasing company who rents to a third party, 10
or more motor vehicles with a gross vehicle weight rating of 12,000 lbs or more manufactured or
sold by the manufacturer or distributor who authorizes the warranty repairs to be performed.
Proposed law provides that warranty repairs that are subject to the provisions of law shall meet
the same requirements for special tools and equipment required for the makes and models being
repaired and technician certification as are required for a franchise dealer and shall not include
repairs to the internal drive train or the after-treatment exhaust system.
Effective August 1, 2014.
(Amends R.S. 32:1261(A)(1)(t))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill 1. Changes the exemption for vehicles from emergency service of motor vehicles
with certain characteristics to emergency service of a vehicle.
2. Requires notification by the selling dealer or the fleet owner or governmental
entity to do so and the program information by manufacturer shall be given to
such dealer located in the same community or territory of the fleet owner or
governmental entity.
3. Removes the provision that requires warranty repairs to meet the same
requirements for facilities as are required for a franchise dealer.
4. Adds that warranty repairs shall meet the same requirements for special tools and
equipment required for the makes and models being repaired as are required for a
franchise dealer.
5. Limits the types of repairs that can be made on vehicles owned or leased by a fleet
owner or governmental entity.