RDCSB152 3999 4038
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)]
SB 152 Engrossed 2022 Regular Session Abraham
Present law provides for unauthorized acts of a motor vehicle manufacturer, distributor,
wholesaler, distributor branch, factory branch, or converter.
Present law prohibits a manufacturer, distributor, wholesaler, distributor branch, factory
branch, converter, or officer, agent, or other representative thereof from conditioning the
renewal or extension of a franchise on a dealer's substantial renovation of the dealer's place
of business or on the construction, purchase, acquisition, or rental of a new place of business
by the dealer, unless the manufacturer has advised the dealer of its intent to impose such
condition within at least 180 days of the proposed date of renewal or extension and has met
certain other conditions.
Proposed law removes present law prohibition and provides for the following unauthorized
acts of a manufacturer, distributor, wholesaler, distributor branch, factory branch, converter,
or officer, agent, or other representative thereof:
(1)To condition the renewal or extension of a franchise on a dealer's substantial
renovation of a facility or premises if the renovation would be unreasonable under
the circumstances.
(2)To require, coerce, or attempt to coerce, a dealer or successor dealer to construct or
substantially alter a facility or premises if the construction or alteration would be
unreasonable under the circumstances.
(3)To require, coerce, or attempt to coerce, a dealer or successor dealer to construct or
substantially alter a facility or premises if the same area of the facility or premises
has been constructed or substantially altered within the last 10 years and the
construction or alteration was required and approved by the manufacturer as a part
of a facility upgrade program, standard, or policy. Excludes certain construction or
alterations. Provides that a cancellation or change in a facility upgrade program,
policy, or standard does not impact any payment and benefit to a dealer who was
participating in that program prior to the cancellation or change in the program,
unless agreed upon by the parties. Provides that as part of the program, policy, or
standard the manufacturer or distributor shall agree to supply the dealer with an
adequate supply and marketable model mix of motor vehicles to meet the sales levels
necessary to support the increased overhead incurred by reason of the construction
or alteration.
(4)To require, coerce, or attempt to coerce, a dealer to purchase certain facility
construction or maintenance goods or services from a vendor that is selected by a
manufacturer, distributor, affiliate, or captive finance source when the dealer may
obtain facility construction or maintenance goods or services for items of the same
quality, material, and design from a vendor selected by the dealer, provided the
dealer obtains prior approval from the manufacturer, distributor, or affiliate for the
use of the dealer selected vendor. Provides for the filing of a protest with the
commission if the vender is not approved by the manufacturer and provides for that
procedure.
Proposed law defines "substantially altered" and "goods".
Effective August 1, 2022.
(Amends R.S. 32:1261(A)(1)(l))
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Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill
1. Makes technical changes.
2. Adds a manufacturer's or distributor's health or safety requirements to the
exclusion of certain constructions or alterations.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
engrossed bill:
1. Make technical changes.
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