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)]
CONFERENCE COMMITTEE REP ORT DIGEST
HB 340 2016 Regular Session Stokes
Keyword and oneliner of the instrument as it left the House
CONSUMERS/PROTECTI ON: Prohibits certain sales or offers for sale of extended service
agreements for motor vehicles
Report adopts Senate amendments to:
1. Make technical changes.
2. Remove the provisions that would have made it unlawful to sell or solicit for sale an
extended service agreement, either by mail or by telephone, relative to a motor vehicle.
3. Establish certain requirements for unsolicited offers, made by mail or common carrier, to sell
an extended service agreement relative to a motor vehicle.
4. Make any violation of proposed law a deceptive and unfair trade practice, and each
unsolicited offer shall be considered a separate offense.
5. Define the terms "extended service agreement" and "unsolicited offer" as used in proposed
law.
Report amends the bill to:
1. Include National Credit Union Administration ("NCUA") insured depository financial
institutions operating with a main office or one or more branches in this state, or their
subsidiaries or affiliates, to the list of entities exempted from the restrictions imposed by
proposed law.
Digest of the bill as proposed by the Conference Committee
Proposed law provides relative to an unsolicited offer, made by mail or common carrier, to sell to
another an extended service agreement relative to a motor vehicle. Proposed law provides that if the unsolicited offer is in writing, it shall state at the top of each page
"THIS IS AN ADVERTISEMENT TO PURCHASE AN EXTENDED SERVICE AGREEMENT
ON A MOTOR VEHICLE. IT IS NOT AN OFFICIAL DOCUMENT." The statement shall be in
conspicuous and legible type that is not smaller than fourteen-point font and is in contrast by
typography, layout, or color with any other printing on the writing.
Proposed law provides that if the unsolicited offer is oral, it shall begin and end with the statement:
"THIS IS AN ADVERTISEMENT TO PURCHASE AN EXTENDED SERVICE AGREEMENT
ON A MOTOR VEHICLE. IT IS NOT AN OFFICIAL NOTIFICATION OR DEMAND FOR
ACTION."
Proposed law provides that a violation of its provisions shall constitute a deceptive and unfair trade
practice and subject the violator to any and all actions and penalties authorized for such violations.
Further provides that each offer in violation of the proposed law shall be considered a separate
offense.
Proposed law defines "extended service agreement" to include any vehicle mechanical breakdown
insurance policy, vehicle service contract sold by an independent payment provider or their agent,
or vehicle component coverage contract. "Unsolicited offer" shall not include an offer made
subsequent to a prior personal contact that included a meaningful exchange between the offeror and
offeree.
Proposed law provides exception from its provisions for any manufacturer, distributor, or dealer of
motor vehicles as defined in R.S. 32:1252, any vehicle mechanical breakdown insurer licensed
pursuant to R.S. 22:362, any person acting pursuant to an agreement of and on behalf of such
manufacturer, distributor, dealer, or licensed vehicle mechanical breakdown insurer, any entity
licensed pursuant to R.S. 6:969.37, or any Federal Deposit Insurance Corporation (FDIC) or National
Credit Union Administration (NCUA)insured depository financial institution operating with a main
office or one or more branches in this state, or their subsidiaries or affiliates.
(Adds R.S. 51:1422)