Bill No.: HB0225                  Drafter:  JHR

 

LSO No.:  05LSO-0560              Effective Date:  7/1/2005

 

Enrolled Act No.:  HEA0095

 

Chapter No.:       159

 

Prime Sponsor:     Representative Cohee

 

Catch Title:       Motor vehicle franchises-amendments.

 

Subject:  Amends provisions of the Motor Vehicle Franchises Act.

 

Summary/Major Elements:

·         This bill:

·         Amends "principal place of business" to distinguish between dealers selling fewer (or more) than 12 vehicles, rather than the current 25 vehicles, in any 12 consecutive month period, instead of the current calendar year;

·         Requires a distinct sign identifying the business and a landline phone at the principal place of business;

·         Requires all new applicants for licenses under the Act to submit information necessary for state and national criminal history record background checks;

·         Authorizes a 90 day temporary license for applicants under the Act pending receipt of the state and national criminal history record background check and other facts related to the qualifications of the applicant;

·         Specifies grounds for denial, suspension, revocation or refusal to renew a license under the Act, to include convictions for fraud, forgery, embezzlement, larceny or extortion related offenses;

·         Requires an applicant for a license to post a $25,000.00 bond with the Department of Transportation;

·         Authorizes the Director of the Department, if he believes a licensee is violating any provision of the Act, to bring an action to restrain or enjoin a licensee from continuing the violation;

·         Designates the Highway Patrol Division and other law enforcement officers the Department may designate with the duty of policing and enforcing the Act;

·        Reduces the time during which a vehicle manufacturer may audit dealer claims for parts and labor from 2 years to 1 year, except where the manufacturer suspects fraud, he may audit claims for up to 4 years and charge the dealer for fraudulent claims as otherwise provided for by law.