Louisiana Senate Bill SB136

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13
• Refer: 4/15/13
• Report Pass: 4/24/13
• Engrossed: 4/30/13
• Refer: 5/1/13
• Report Pass: 5/6/13
• Enrolled: 5/22/13
• Chaptered: 5/30/13
• Passed: 5/30/13

Caption

Provides for no dealer charge backs for rebates paid and for certain unauthorized acts by a manufacturer, wholesaler, distributor branch, factory branch, converter, or their officer, agent or other representative. (8/1/13)

Impact

The bill has significant implications for the relationship between motor vehicle dealers and manufacturers. By providing protections against charge backs for rebates, it seeks to create a more equitable environment for dealers who might face financial penalties for consumer transactions that are not directly under their control. This legislation can potentially foster a better working relationship between manufacturers and dealers, encouraging smoother transactions and consumer satisfaction.

Summary

Senate Bill 136 addresses regulatory matters concerning the automotive industry, specifically relating to manufacturers and dealers of motor vehicles. The bill aims to clarify definitions within the law and ensure that manufacturers cannot impose specific penalties on dealers for unauthorized acts regarding rebate programs. This includes prohibitions on charge backs related to rebates paid to consumers under certain circumstances, reinforcing that dealers should not be penalized if they comply with a manufacturer's guidelines in good faith.

Sentiment

The general sentiment around SB 136 appears to be supportive from the dealer perspective. Many stakeholders recognize that it alleviates some financial risk associated with rebate programs and empowers dealers by framing their reliance on manufacturer guidelines as a form of protection. However, some apprehension may remain regarding how manufacturers will adapt to these changes and what grey areas may arise regarding compliance and enforcement.

Contention

A notable point of contention that emerged during discussions around SB 136 is the degree to which manufacturers will retain control over rebate programs. While the bill aims to protect dealers, some critics may argue that it could lead to decreased oversight and accountability for manufacturers. In addition, as the automotive market evolves, ensuring that these regulations adapt to new business models, especially in the face of growing electric vehicle sales and online sales platforms, will be an ongoing challenge.