Bill Text: IN SB0494 | 2011 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Vehicle manufacturers and distributors.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2011-05-18 - Effective 07/01/2011 [SB0494 Detail]

Download: Indiana-2011-SB0494-Introduced.html


Introduced Version






SENATE BILL No. 494

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 9-13-2; IC 9-23-3.

Synopsis: Vehicle manufacturers and distributors. Provides that it is an unfair practice for an automotive manufacturer or distributor to: (1) fail to pay all claims made by an automotive dealer (dealer) for compensation for incentive payments within 30 days after approval; or (2) rely on registration data as a basis for determining chargeback. Authorizes an automotive manufacturer or distributor to: (1) audit claims made by a dealer for warranty work or incentive payments; or (2) charge back to a dealer any amounts paid on false or materially unsubstantiated claims for warranty work or incentive payments; for up to one year after the date on which a claim is paid.

Effective: July 1, 2011.





Merritt




    January 13, 2011, read first time and referred to Committee on Commerce & Economic Development.







Introduced

First Regular Session 117th General Assembly (2011)


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 this style type.
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 2010 Regular Session of the General Assembly.

SENATE BILL No. 494



    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 9-13-2-19.5; (11)IN0494.1.1. -->     SECTION 1. IC 9-13-2-19.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 19.5. "Chargeback", for purposes of IC 9-23-3, has the meaning set forth in IC 9-23-3-0.2.
SOURCE: IC 9-13-2-77.3; (11)IN0494.1.2. -->     SECTION 2. IC 9-13-2-77.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 77.3. "Incentive payments", for purposes of IC 9-23-3, has the meaning set forth in IC 9-23-3-0.4.
SOURCE: IC 9-13-2-150.7; (11)IN0494.1.3. -->     SECTION 3. IC 9-13-2-150.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 150.7. "Registration data", for purposes of IC 9-23-3, has the meaning set forth in IC 9-23-3-0.6.
SOURCE: IC 9-23-3-0.2; (11)IN0494.1.4. -->     SECTION 4. IC 9-23-3-0.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 0.2. As used in this chapter, "chargeback" means a manufacturer induced return of incentive payments to a manufacturer by a dealer. The term includes a manufacturer

drawing funds from an account of a dealer.

SOURCE: IC 9-23-3-0.4; (11)IN0494.1.5. -->     SECTION 5. IC 9-23-3-0.4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 0.4. As used in this chapter, "incentive payments" means money:
        (1) earned by;
        (2) due to; or
        (3) remitted to;
a dealer for the benefit of the dealer or the customer of the dealer under a
program or procedure announced or communicated by a manufacturer.
SOURCE: IC 9-23-3-0.6; (11)IN0494.1.6. -->     SECTION 6. IC 9-23-3-0.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 0.6. As used in this chapter, "registration data" means information regarding the registration of a vehicle under IC 9-18 that has been released by the bureau.
SOURCE: IC 9-23-3-15; (11)IN0494.1.7. -->     SECTION 7. IC 9-23-3-15, AS AMENDED BY P.L.76-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 15. (a) It is an unfair practice for a manufacturer or distributor to:
        (1) fail to pay all claims made by dealers for compensation for:
             (A) delivery and preparation work; and
             (B) warranty work; and
            (C) incentive payments;
        
within thirty (30) days after approval;
        (2) fail to approve or disapprove the claims within thirty (30) days after receipt; or
        (3) disapprove a claim without notice to the dealer in writing of the grounds for disapproval; or
         (4) rely on registration data as a basis for determining a chargeback.
    (b) Subject to subsection (c), a manufacturer or distributor may:
        (1) audit claims made by a dealer for warranty work or incentive payments; or
        (2) charge back to a dealer any amounts paid on false or materially unsubstantiated claims for warranty work or incentive payments;
for up to two (2) years one (1) year after the date on which a claim is paid. However, the limitations of this subsection do not apply if the manufacturer or distributor can prove fraud on a claim. A manufacturer or distributor shall not discriminate among dealers with regard to auditing or charging back claims.
     (c) The limitations of subsection (b):
        (1) do not apply if the manufacturer or distributor can prove fraud on a claim; and
        (2) limit the recovery of the manufacturer to recovery on a specific claim proved fraudulent and will not disqualify a dealer for an incentive to which the dealer is otherwise entitled.

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