Introduced Version
SENATE BILL No. 432
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DIGEST OF INTRODUCED BILL
Citations Affected: IC 9-23-3.
Synopsis: Motor vehicle dealers. Provides that it is an unfair practice
for a vehicle manufacturer or distributor to ask or require a vehicle
dealer to waive certain provisions dealing with unfair practices in the
vehicle sales profession or franchise practices. Provides that it is an
unfair practice for a vehicle manufacturer, distributor, officer, or agent
to: (1) require, as a condition of the grant of a sales and service
agreement or the approval of the transfer of the ownership or assets of
a new motor vehicle dealer, the construction or modification of a new
dealership facility; (2) prohibit a motor vehicle dealer from reasonably
representing more than one line make of motor vehicle from the same
or a modified facility, if reasonable facilities exist or will exist after
modification for the combined operations; or (3) grant only limited
sales and service agreements that are conditioned on completion or
construction of a new dealership facility or dealership facility
improvement.
Effective: July 1, 2009.
January 12, 2009, read first time and referred to Committee on Corrections, Criminal, and
Civil Matters.
Introduced
First Regular Session 116th General Assembly (2009)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2008 Regular Session of the General Assembly.
SENATE BILL No. 432
A BILL FOR AN ACT to amend the Indiana Code concerning
motor vehicles.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 9-23-3-7; (09)IN0432.1.1. -->
SECTION 1. IC 9-23-3-7 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2009]: Sec. 7. (a) It is an unfair practice for a
manufacturer or distributor to violate IC 23-2-2.7.
(b) It is an unfair practice for a manufacturer or distributor to
enter into an agreement in which a dealer is asked to or required
to waive the provisions of:
(1) this chapter; or
(2) IC 23-2-2.7.
SOURCE: IC 9-23-3-23; (09)IN0432.1.2. -->
SECTION 2. IC 9-23-3-23, AS AMENDED BY P.L.49-2007,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 23. It is an unfair practice for a manufacturer,
distributor, officer, or agent to do any of the following:
(1) Require, coerce, or attempt to coerce any new motor vehicle
dealer in Indiana to:
(A) change location of the dealership;
(B) make any substantial alterations to the use of franchises;
or
(C) make any substantial alterations to the dealership premises
or facilities;
if to do so would be unreasonable or would not be justified by
current economic conditions or reasonable business
considerations. This subdivision does not prevent a manufacturer
or distributor from establishing and enforcing reasonable facility
requirements.
(2) Require, coerce, or attempt to coerce any new motor vehicle
dealer in Indiana to divest its ownership of or management in
another line or make of motor vehicles that the dealer has
established in its dealership facilities with the prior written
approval of the manufacturer or distributor.
(3) Establish or acquire wholly or partially a franchisor owned
outlet engaged wholly or partially in a substantially identical
business to that of the franchisee within the exclusive territory
granted the franchisee by the franchise agreement or, if no
exclusive territory is designated, competing unfairly with the
franchisee within a reasonable market area. A franchisor is not
considered to be competing unfairly if operating:
(A) a business for less than two (2) years;
(B) in a bona fide retail operation that is for sale to any
qualified independent person at a fair and reasonable price; or
(C) in a bona fide relationship in which an independent person
or persons have made a significant investment subject to loss
in the business operation and can reasonably expect to acquire
majority ownership or managerial control of the business on
reasonable terms and conditions.
This subdivision shall not apply to recreational vehicle
manufacturer franchisors.
(4) Require, as a condition of the:
(A) grant of a sales and service agreement; or
(B) approval of the transfer of the ownership or assets of
a new motor vehicle dealer;
the construction or modification of a new dealership facility.
(5) Prohibit a motor vehicle dealer from reasonably
representing more than one (1) line make of motor vehicle
from the same or a modified facility, if reasonable facilities
exist or will exist after modification for the combined
operations.
(6) Grant only limited sales and service agreements that are
conditioned on completion or construction of a new dealership
facility or dealership facility improvement.