Bill Text: IN SB0494 | 2011 | Regular Session | Introduced
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
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.
January 13, 2011, read first time and referred to Committee on Commerce & Economic
Development.
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
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
A BILL FOR AN ACT to amend the Indiana Code concerning
motor vehicles.
drawing funds from an account of a dealer.
(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.
(1) fail to pay all claims made by dealers for compensation for:
(A) delivery and preparation work;
(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;
(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
(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.