Bill Text: PA SB419 | 2011-2012 | Regular Session | Amended

---

Bill Title: Providing for the definition of "area of responsibility"; further providing for reimbursement for all parts and service required by the manufacturer or distributor and reimbursement audits; providing for area of responsibility; further providing for grounds for disciplinary proceedings; and making a related repeal.

Spectrum: Slight Partisan Bill (Republican 5-3)

Status: (Passed) 2011-07-07 - Act No. 65 [SB419 Detail]

Download: Pennsylvania-2011-SB419-Amended.html

---

HOUSE AMENDED
PRIOR PRINTER'S NO. 405 PRINTER'S NO. 1405
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 419 Session of2011
INTRODUCED BY TOMLINSON, FONTANA, EARLL, SOLOBAY, MENSCH, ALLOWAY, WAUGH AND BOSCOLA, FEBRUARY 7, 2011
AS REPORTED FROM COMMITTEE ON PROFESSIONAL LICENSURE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 22, 2011
AN ACT
Amending the act of December 22, 1983 (P.L.306, No.84), entitled
"An act providing for the State Board of Vehicle
Manufacturers, Dealers and Salespersons; and providing
penalties," providing for the definition of "area of <--
responsibility"; further providing for reimbursement for all
parts and service required by the manufacturer or distributor
and reimbursement audits; providing for area of
responsibility; further providing for grounds for
disciplinary proceedings; and making a related repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 19(10) of the act of December 22, 1983 <--
(P.L.306, No.84), known as the Board of Vehicles Act, amended
October 18, 2000 (P.L.577, No.75), is amended to read:
Section 1. Section 2 of the act of December 22, 1983 <--
(P.L.306, No.84), known as the Board of Vehicles Act, is amended
by adding a definition to read:
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Area of responsibility." The geographic area designated in
the franchise agreement or related document where a new vehicle
dealer is responsible for effectively selling, servicing and
otherwise representing the products of the manufacturer.
* * *
Section 2. Section 9(c) of the act, amended October 18, 2000
(P.L.577, No.75), is amended and subsection (e) is amended by
adding a paragraph to read:
Section 9. Reimbursement for all parts and service required by
the manufacturer or distributor; reimbursement
audits.
* * *
[(c) Copy of obligation to be filed with board.--A copy of
the delivery and preparation obligations of its dealers shall be
filed with the board by every vehicle manufacturer and shall
constitute the dealer's only responsibility for product
liability as between the dealer and the manufacturer.]
* * *
(e) Warranty reimbursement and incentive or reimbursement
program approval and audits.--
* * *
(3) (i) After the completion of any internal appeal
process pursuant to the manufacturer's or distributor's
policy manual, but no less than 30 days prior to a
manufacturer or distributor charging back a new vehicle
dealer for any claims which the manufacturer or
distributor alleges are false or unsubstantiated, the
manufacturer or distributor shall notify the new vehicle
20110SB0419PN1405 - 2 -
dealer in writing of all of the following:
(A) The amount of and basis for each claim the
manufacturer or distributor seeks to charge back.
(B) The total amount to be charged back.
(ii) During the 30-day time period under
subparagraph (i), a new vehicle dealer may file with the
board a protest of the charge-backs as provided for
under section 8. When such a protest is filed, the board
shall inform the manufacturer or distributor that a
timely protest has been filed and that the manufacturer
or distributor shall not charge back the new vehicle
dealer:
(A) until the board has held a hearing; or
(B) if the board has determined that there is
good cause for not permitting the charge-back of such
new vehicle dealer.
* * *
Section 3. The act is amended by adding a section to read:
Section 12.1. Area of responsibility.
It shall be a violation of this act for any manufacturer or
distributor, officer, agent or any representative of a
manufacturer or distributor to unreasonably alter a new vehicle
dealer's area of responsibility. The following shall apply:
(1) Advance notice from the manufacturer of an
alteration of a dealer's area of responsibility shall be
given at least 60 days before the effective date of the
alteration. The notice shall include an explanation of the
basis for the alteration.
(2) At any time before the effective date of such
alteration of a dealer's area of responsibility, and after
20110SB0419PN1405 - 3 -
the completion of any internal appeal process pursuant to the
manufacturer's or distributor's policy manual, the dealer may
file a protest as provided for under section 8. In the event
a protest is filed, no such alteration of a dealer's area of
responsibility shall become effective until final
determination by the board.
(3) If a dealer protests under paragraph (2), the burden
of proof shall be on the manufacturer to show that the
dealer's area of responsibility is reasonable and justifiable
in light of the market conditions.
(4) If a new vehicle dealer's area of responsibility is
altered, the manufacturer shall allow 18 months for the
dealer to penetrate the market and to become sales effective
prior to taking negative legal action claiming a breach or
nonperformance of the dealer's sales performance
responsibilities against the dealer.
Section 4. Section 19(10) of the act, amended October 18,
2000 (P.L.577, No.75), is amended to read:
Section 19. Grounds for disciplinary proceedings.
In addition to any criminal or civil penalties otherwise
provided in this act, the board shall have the power to formally
reprimand, suspend or revoke any license or refuse to issue or
renew any license of an applicant or licensee or a person
required to be licensed under this act, if after due notice of
and hearing, the person charged is found in violation of or
fails to carry out the acts and procedures set forth in this act
or is found guilty of committing or attempting to commit any of
the acts set forth in section 23 or any of the following acts:
* * *
(10) Having engaged in the buying, selling, exchanging,
20110SB0419PN1405 - 4 -
trading or otherwise dealing in vehicles on Sunday in
violation of 18 Pa.C.S. § 7365 (relating to trading in motor
vehicles and trailers).
(i) Manufactured housing is permitted to be sold on
Sundays by licensed manufactured housing dealers without
being subject to prosecution under this paragraph.
(ii) Motorcycles are permitted to be sold on Sundays <--
by licensed motorcycle dealers Licensed motorcycle <--
dealers are permitted to buy, sell, exchange, trade or
otherwise deal in motorcycles on Sunday without being
subject to prosecution under this paragraph.
* * *
Section 2 5. Repeals are as follows: <--
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the amendment of
section 19(10) of the act.
(2) 18 Pa.C.S. § 7365 is repealed insofar as it relates
to motorcycles.
Section 3 6. This act shall take effect in 60 days. <--
20110SB0419PN1405 - 5 -