HLS 17RS-916 REENGROSSED
2017 Regular Session
HOUSE BILL NO. 167
BY REPRESENTATIVES CARMODY, BAGLEY, BISHOP, COX, DAVIS, DWIGHT,
FALCONER, GLOVER, HENSGENS, HOFFMANN, HORTON, MIGUEZ,
REYNOLDS, SEABAUGH, SHADOIN, STAGNI, STEFANSKI, THIBAUT, AND
THOMAS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
MOTOR VEHICLES: Provides for unauthorized acts relative to motor vehicles
1 AN ACT
2To amend and reenact R.S. 32:1261(A)(1)(k), relative to unauthorized acts regarding motor
3 vehicles; to modify certain requirements regarding sales or offers to sell made
4 directly to a consumer; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 32:1261(A)(1)(k) is hereby amended and reenacted to read as
7follows:
8 ยง1261. Unauthorized acts
9 A. It shall be a violation of this Chapter:
10 (1) For a manufacturer, a distributor, a wholesaler, distributor branch, factory
11 branch, converter or officer, agent, or other representative thereof:
12 * * *
13 (k)(i) To sell or offer to sell a new or unused motor vehicle directly to a
14 consumer except as provided in this Chapter, or to compete with a licensee in the
15 same-line makes, models, or classifications operating under an agreement or
16 franchise from the aforementioned manufacturer. A manufacturer shall not,
17 however, be deemed to be competing when any one of the following conditions are
18 is met:
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-916 REENGROSSED
HB NO. 167
1 (aa) Operating a previously existing, licensed, and franchised motor vehicle
2 dealership temporarily for a reasonable period, not to exceed two years.
3 (bb) Operating a bona fide retail previously licensed and franchised motor
4 vehicle dealership which is for sale to any qualified independent person at a fair and
5 reasonable price, not to exceed two years.
6 (cc) Operating in a bona fide relationship in which a person independent of
7 a manufacturer has made a significant investment subject to loss in the dealership,
8 and can reasonably expect to acquire full ownership of such dealership on reasonable
9 terms and conditions.
10 (ii) After any of the conditions have been met under Subitems (aa) and (bb)
11 of Item (i) of this Subparagraph, the commission shall may allow the manufacturer
12 to compete with licensees of the same-line makes, models, or classifications under
13 an agreement or franchise from said manufacturer continue operating a previously
14 licensed and franchised motor vehicle dealership for longer than two years when, in
15 the discretion of the commission, the best interest of the manufacturer, consuming
16 public, and licensees are best served.
17 * * *
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)]
HB 167 Reengrossed 2017 Regular Session Carmody
Abstract: Modifies certain exceptions allowing the sale or offer of sale of a new or unused
motor vehicle directly to a consumer.
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.
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HB NO. 167
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 a previously existing, licensed, and franchised motor vehicle dealership for
a reasonable period, not to exceed two years.
(2)Operates a previously 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 a previously 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. Make technical changes for the purpose of clarity.
2. Clarify 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. Make technical changes.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.