GREEN SHEET REDIGEST
HB 167 2017 Regular Session Carmody
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
MOTOR VEHICLES: Provides for unauthorized acts relative to motor vehicles
DIGEST
Present law enumerates a list of restrictions imposed on manufacturers, distributors,
wholesalers, distributor branches, factory branches, converters, or the officers, agents, or
other representatives thereof.
Present law provides that it shall be an unauthorized act to sell or offer to sell a new or
unused motor vehicle directly to a consumer except when as provided in present law, or to
compete with a licensee in the same-line makes, models, or classifications operating under
an agreement or franchise from the aforementioned manufacturer. Present law further
provides that a manufacturer shall not, however, be deemed to be competing when certain
conditions are met.
Proposed law modifies present law to provide that it shall be an unauthorized act to sell or
offer to sell a new or unused motor vehicle directly to a consumer except when the
manufacturer, distributor, wholesaler, distributor branch, factory branch, converter, or the
officers, agents, or other representatives thereof meet any one of the following conditions:
(1)Operates an existing, licensed, and franchised motor vehicle dealership for a
reasonable period, not to exceed two years.
(2)Operates an existing, licensed, and franchised motor vehicle dealership which is for
sale to any qualified independent person at a fair and reasonable price, not to exceed
two years.
(3)Operates in a bona fide relationship in which a person independent of a manufacturer
has made a significant investment subject to loss in the dealership, and can
reasonably expect to acquire full ownership of such dealership on reasonable terms
and conditions.
Present law requires the La. Motor Vehicle Commission (commission) to allow the
manufacturer to compete with licensees of the same-line makes, models, or classifications
under an agreement or franchise from said manufacturer for longer than two years when, in
the discretion of the commission, the best interest of the manufacturer, consuming public,
and licensees are best served after the conditions imposed by present law are satisfied.
Proposed law states that, once the conditions imposed by proposed law are met, the
commission may allow the manufacturer to continue operating an existing, licensed, and
franchised motor vehicle dealership for longer than two years when, in the discretion of the
commission, the best interest of the manufacturer, consuming public, and licensees are best
served.
(Amends R.S. 32:1261(A)(1)(k))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
original bill:
1. Makes technical changes for the purpose of clarity.
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Prepared by Michelle D. Ridge. 2. Clarifies that the provisions of proposed law apply to previously existing,
licensed, and franchised motor vehicle dealerships in certain circumstances.
The House Floor Amendments to the engrossed bill:
1. Makes technical changes.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the reengrossed bill
1. Changes "previously" to "existing".
Page 2 of 2
Prepared by Michelle D. Ridge.