HLS 24RS-3794 ORIGINAL
2024 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 94
BY REPRESENTATIVE JORDAN
COMMERCE: Authorizes a joint subcommittee on commerce to study and make
recommendations relative to the regulation of direct-to-consumer motor vehicle sales
1 A CONCURRENT RESOL UTION
2To authorize and request the chairpersons of the House Committee on Commerce and the
3 Senate Committee on Commerce, Consumer Protection and International Affairs,
4 acting jointly, to appoint a joint subcommittee composed of members from each
5 committee to study and make recommendations for proposed legislation and policy
6 changes relative to the regulation of direct-to-consumer motor vehicle sales.
7 WHEREAS, early in the evolution of the auto industry, direct manufacturer sales to
8consumers were not uncommon, but over time, state laws have historically prohibited auto
9manufacturers from directly selling motor vehicles to consumers, requiring instead that
10consumers purchase motor vehicles from franchised dealerships; and
11 WHEREAS, over the past century, the franchise dealership model of selling cars has
12gained a significant grip on the United States' car sales. Franchise dealers in 2022 were
13responsible for thirteen million seven hundred thousand light-duty vehicle sales, a figure that
14accounted for the majority of such transactions; and
15 WHEREAS, during the 2005 Regular Session, the Legislature of Louisiana enacted
16R.S. 32:1261(A)(1)(k), which prohibits a manufacturer, distributor, wholesaler, distributor
17branch, factory branch, converter or officer, agent, or other representative thereof from
18selling or offering to sell a new or unused motor vehicle directly to a consumer except as
19provided in limited scope pursuant to state law; and
20 WHEREAS, a recent study shows that franchise dealership laws such as the
21provisions set forth in R.S. 32:1261, which require new vehicles to be sold through
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HCR NO. 94
1third-party dealerships, have been revisited in the last decade as new electric-vehicle-only
2automakers have entered the market with the intent to sell their vehicles primarily, if not
3exclusively, through direct-to-consumer sales models; and
4 WHEREAS, states have already begun changing their laws to address the evolving
5vehicle marketplace; and
6 WHEREAS, a study on the economic effects of state bans on direct manufacturer
7sales to car buyers conducted by the Antitrust Division of the United States Department of
8Justice suggests that, although selling through dealerships has offered several benefits to
9manufacturers, direct manufacturer car sales may have the potential to reduce inventory
10costs; moreover, manufacturers may be able to better match production with consumer
11preferences ranging from basic attributes on standard models to meeting individual
12specifications for customized cars; and
13 WHEREAS, surveys show that many new car buyers in the United States would be
14interested in buying directly from manufacturers, particularly to avoid costs associated with
15the dealership bargaining process.
16 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
17authorize and request the chairpersons of the House Committee on Commerce and the
18Senate Committee on Commerce, Consumer Protection and International Affairs, acting
19jointly, to appoint a joint subcommittee composed of members from each committee to study
20and make recommendations for proposed legislation and policy changes relative to the
21regulation of direct-to-consumer motor vehicle sales.
22 BE IT FURTHER RESOLVED that the joint subcommittee shall be composed of six
23members with equal representation from each standing committee, and the members of the
24joint subcommittee shall elect a chairperson by majority vote at the subcommittee's first
25meeting.
26 BE IT FURTHER RESOLVED that the joint subcommittee may call upon the staffs
27of any department, agency, or official of the state for data and assistance and all such
28departments, agencies, and officials shall cooperate with the joint subcommittee.
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HCR NO. 94
1 BE IT FURTHER RESOLVED that the joint subcommittee may request and utilize
2the assistance of any and all public and private sources including but not limited to residents,
3elected officials, experts, and nongovernmental organizations.
4 BE IT FURTHER RESOLVED that the joint subcommittee shall study, at minimum,
5all of the following:
6 (1) Laws, rules, and best practices from other jurisdictions and any model legislation
7related to the regulation of direct-to-consumer motor vehicle sales.
8 (2) All consumer protection laws and regulations that currently apply when a
9consumer purchases a motor vehicle directly from the manufacturer or whether those
10consumer protections should apply to direct-to-consumer motor vehicle sales.
11 (3) How consumers obtain insurance and financing in direct-to-consumer motor
12vehicle sales and any proposals that would better protect consumers who engage in
13direct-to-consumer motor vehicle sales.
14 (4) How consumers are currently taxed in direct-to-consumer motor vehicle sales
15and whether there are steps the state should take to maximize the collection of taxes owed
16on direct-to-consumer motor vehicle sales where the vehicles are operated in the state.
17 (5) Any enforcement issues related to direct-to-consumer motor vehicle sales.
18 (6) What reasons, if any, exist to prohibit manufacturers engaged in
19direct-to-consumer motor vehicle sales from owning, operating, or controlling a motor
20vehicle warranty or service facility in the state and a recommendation on whether a sales
21center should be required if a manufacturer engaged in direct-to-consumer motor vehicles
22sales is permitted to own, operate, or control a motor vehicle warranty or service facility in
23the state.
24 BE IT FURTHER RESOLVED that the joint subcommittee shall submit a written
25report on the findings of its study regarding the regulation of direct-to-consumer motor
26vehicle sales to the Legislature of Louisiana by July 1, 2025.
27 BE IT FURTHER RESOLVED that the joint subcommittee shall terminate on July
281, 2025.
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HCR NO. 94
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)]
HCR 94 Original 2024 Regular Session Jordan
Authorizes and requests the chairpersons of the House Committee on Commerce and the
Senate Committee on Commerce, Consumer Protection and International Affairs, acting
jointly, to appoint a joint subcommittee to study and make recommendations for proposed
legislation and policy changes relative to the regulation of direct-to-consumer motor vehicle
sales.
Requests a written report of its findings by July 1, 2025.
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