Louisiana House Bill HB923

Louisiana 2016 Regular Session

• Introduced: 3/28/16
• Refer: 3/29/16

Caption

Provides for unauthorized acts relative to motor vehicles

Impact

The impact of HB 923 on state laws is significant, as it modifies existing regulations governing the relationship between dealerships and motor vehicle manufacturers. By explicitly stating that penalties for certain infractions are prohibited, the bill aims to provide dealers with legal protection against unfair treatment from manufacturers and distributors. This change also acts to uphold the integrity of CSI surveys, ensuring that any results impacted by individual misconduct are treated as void, thus fostering a more equitable assessment of dealership performance.

Summary

House Bill 923 addresses unauthorized acts related to motor vehicles by imposing new restrictions on manufacturers and distributors. Specifically, the bill prohibits these entities from penalizing dealerships for infractions concerning Customer Satisfaction Index (CSI) surveys and incentive programs if the wrongdoing is committed by a dealer employee for personal gain. This legislative change seeks to protect dealers from potential retaliation that could arise from false or misleading survey responses that do not reflect the dealership's practices but rather an individual's misconduct.

Sentiment

Overall sentiment regarding HB 923 appears to be supportive among dealership owners and employees who seek to minimize the risk of unjust penalties linked to a single employee's actions. Advocates view the bill as a necessary safeguard against potential abuses inherent in the current manufacturer-dealer dynamic. Nonetheless, manufacturers may express concerns regarding accountability if dealers do not properly manage employee conduct, indicating a degree of contention surrounding the balance of responsibilities between dealers and manufacturers.

Contention

Notably, one point of contention is the bill's implications for how dealership performance is evaluated. Critics may argue that by allowing dealers to be insulated from penalties related to employee infractions, the bill could inadvertently remove incentives for dealerships to ensure adherence to ethical standards across their workforce. The debate underscores the complexity of fostering fair competition while ensuring responsible business practices within the motor vehicle industry.