RÉSUMÉ DIGEST
ACT 258 (SB 152) 2022 Regular Session Abraham
Existing law provides for unauthorized acts of a motor vehicle manufacturer, distributor,
wholesaler, distributor branch, factory branch, or converter.
Prior 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.
New law removes the 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.
New law defines "substantially altered" and "goods".
Effective August 1, 2022.
(Amends R.S. 32:1261(A)(1)(l))