Introduced Version
SENATE BILL No. 494
_____
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
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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NEW will appear in that style type in the introductory clause of each SECTION that adds
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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.