Bill Text: IN HB1515 | 2019 | Regular Session | Introduced


Bill Title: Auto dealer franchises. Provides that a manufacturer or distributor of a motor vehicle may not, as a condition of approval for the acquisition of franchise rights, require: (1) the appointment of general management chosen by the manufacturer or distributor; or (2) prior experience with the manufacturer's or distributor's product line. Allows a franchisee to recover certain costs when responding to a complaint filed by a manufacturer. Prohibits a manufacturer from engaging in certain behaviors when responding to a request for compensation by a franchisee. Prohibits a manufacturer or distributor from assessing a charge back against a franchisee until after 45 days have elapsed. Prohibits a manufacturer or distributor from using: (1) a special part; or (2) component parts; for warranty work if doing so will lower the amount of compensation owed to the franchisee by the manufacturer or distributor. Specifies how a franchisee is to be compensated for the performance of work under a warranty obligation. Allows a manufacturer or distributor to require the use of a certified pre-owned vehicle designation in certain instances. Requires a manufacturer or distributor to compensate a franchisee for used motor vehicle inventory that is subject to a recall or stop-sale directive in certain instances. Specifies that a manufacturer or distributor cannot be obligated to provide total compensation to a franchisee in excess of the total average valuation of a used motor vehicle that the manufacturer or distributor is obligated to compensate a franchisee for. Allows manufacturers and distributors to negotiate reimbursement terms. Prohibits a manufacturer or distributor from making access to vehicles, parts, vehicle sales, or service incentives contingent upon the sale of certain contracts, services, or agreements. Prohibits a manufacturer or distributor from making financing contingent upon the sale of certain contracts, services, or agreements. Requires a franchisee to provide a service contact disclosure in certain instances. Provides that a manufacturer or distributor may not be prohibited from: (1) offering an incentive program to a vehicle dealer if the program does not provide vehicle sales or service incentives; (2) requiring a franchisee to sell a used vehicle as a certified pre-owned vehicle or certified used vehicle under a certified pre-owned vehicle or certified used vehicle program established by the manufacturer, manufacturer branch, distributor, or distributor branch; or (3) changing the price of parts during the routine and ordinary course of business. Provides that a manufacturer or distributor may not deny the proposed transfer of any ownership or interest in a new motor vehicle dealership to another person. Provides certain exceptions. Requires a manufacturer or distributor to approve or disapprove a transfer of ownership or interest in a dealership not later than 45 days after the submission of the required documentation to a manufacturer or distributor. Provides that a manufacturer or distributor may not delay a decision concerning a transfer of ownership or interest by engaging in certain behaviors. Provides that a manufacturer or distributor shall be permitted the opportunity to exercise a right of first refusal in the event of a proposed sale or transfer of a dealership. Specifies how a right of first refusal must be exercised. Specifies what a manufacturer or dealer: (1) may; and (2) may not; request from a dealer when determining whether to exercise the right of first refusal. Requires an exercise of the right of first refusal to execute a completed agreement or proposal in its entirety. Prohibits a manufacturer or distributor from requesting or requiring certain things from a dealer during a manufacturer's or distributor's exercise of a right of first refusal. Specifies: (1) manufacturer; (2) distributor; and (3) dealer; responsibilities during the exercise of a right of first refusal. Prohibits a dealer from impairing or eliminating the intellectual property or trademark rights of the manufacturer or distributor. Prohibits a dealer from erecting or maintaining signs that do not conform to the intellectual property usage guidelines of the manufacturer or distributor. Provides that in any proceeding requiring a facility alteration, expansion, or addition, the manufacturer or distributor shall have the burden of proving that the requested facility alteration, expansion, or addition is reasonably necessary. Provides that a manufacturer or distributor may not unfairly discriminate against a franchisee selling a service contract, debt cancellation agreement, maintenance agreement, or similar product not approved, endorsed, sponsored, or offered by the manufacturer, manufacturer branch, distributor, distributor branch, or affiliate. Specifies certain practices that qualify as unfair discrimination. Prohibits a manufacturer or distributor from discriminating against a dealer in favor of other dealers of the same line make. Specifies certain practices that qualify as discrimination in favor of a dealer. Provides that a manufacturer or distributor may not require, coerce, or attempt to coerce a new motor vehicle dealer to not exercise a right under the law or to directly or indirectly take retaliatory action or any other adverse action against a dealer for exercising the dealer's rights under the law. Provides that certain performance and sales based standards are unfair practices. Describes certain adverse actions that may not be taken by a manufacturer or distributor. Allows a franchisee to seek judicial review of certain actions taken by a manufacturer or distributor. Provides that a manufacturer or distributor may not coerce or require a dealer to make an improvement to the dealer's facility at a cost in excess of $300,000 if the purpose of the improvement is to ensure compliance with a franchise or brand image program. Provides that a manufacturer

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced) 2019-01-17 - First reading: referred to Committee on Roads and Transportation [HB1515 Detail]

Download: Indiana-2019-HB1515-Introduced.pdf
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