Louisiana Senate Bill SB152

Louisiana 2022 Regular Session

• Introduced: 3/2/22
• Refer: 3/2/22
• Refer: 3/14/22
• Report Pass: 4/6/22
• Engrossed: 4/13/22
• Refer: 4/18/22
• Refer: 4/20/22
• Report Pass: 5/9/22
• Enrolled: 5/26/22
• Chaptered: 6/3/22
• Passed: 6/3/22

Caption

Provides relative to certain unauthorized acts of motor vehicle manufacturers, distributors, wholesalers, distributor branches, factory branches, and converters. (8/1/22)

Impact

The passage of SB 152 would result in a significant restructuring of the relationship between motor vehicle dealers and manufacturers in Louisiana. By enforcing stipulations that conditions for franchise renewal cannot be unreasonable and require pertinent justification, the bill seeks to establish a more balanced dynamic. It clarifies that manufacturers need to provide their dealers with an adequate supply and model mix of vehicles to justify any additional overhead incurred from required renovations or expansions. This could lead to improved operational stability for dealerships and a better consumer experience.

Summary

Senate Bill 152, sponsored by Senator Abraham, amends existing legislation regarding unauthorized acts committed by motor vehicle manufacturers, distributors, wholesalers, and dealer representatives. This bill aims to protect the rights of new motor vehicle dealers by regulating the conditions under which manufacturers can compel them to renovate their business premises or undertake substantial changes. Through specific provisions, the bill seeks to lay out clear conditions and limitations for manufacturers who wish to impose demands on their dealers, ensuring that any such demands are reasonable and communicated well in advance.

Sentiment

The sentiment surrounding SB 152 appears to be generally positive among those who advocate for dealer rights. Supporters argue that this bill empowers local dealerships by granting them protections against potentially coercive practices from manufacturers and ensuring that they can operate without facing undue financial burdens from arbitrary demands. The overall legislative discussion indicates a recognition of the need to maintain fairness in the dealership-manufacturer relationship, reflecting a greater emphasis on consumer choice and local economies.

Contention

While there seems to be broad support for SB 152, contentions may arise regarding the extent of regulatory influence placed on manufacturers. Some stakeholders, possibly representing larger automotive brands, may perceive these regulations as restricting their operational flexibility. Critics could argue that the stringent requirements might complicate necessary moves towards modernization and compliance with evolving market demands. The ongoing discourse around the bill highlights the challenge of balancing manufacturer interests with dealer protections, indicative of the complex dynamics characterizing the automotive industry.