Legislative Suggestions

 

Legislative Advocacy

One of PAA’s primary roles is working with the General Assembly and the Governor’s Administration to ensure that legislation that is signed into law positively affects PAA’s dealer members.

 

 

100% Mark-Up Elimination

 

On January 23, 2012, the legislature passed an amendment to the Motor Vehicle Sales Finance Act eliminating mark-up limitations on all after-market products. The bill was signed on February 2, 2012, and becomes effective on May 1, 2012. For more information see PAA News Bulletin No. 2 (1/25/2012).

 

 

Board of Vehicles Act Amendments

 

PAA’s 2011 amendments to the Board of Vehicles Act were signed by the Governor on July 7, 2011, and became effective September 5, 2011, augmenting dealer protections by :

creating an appeal process for dealers to dispute alterations to their area of responsibility; and

providing a stay of chargeback by manufacturers following a warranty or sales incentive audit.

 

 

See PAA News Bulletin No. 13 (7/13/2011) for details.

 

Not all legislative initiatives impacting dealers are initiated by PAA. A variety of bills are introduced each legislative session, and PAA is routinely confronted with the need to engage with the General Assembly regarding introduced legislation that is contrary to dealers’ interests.    

 

The PAA Legislative Committee met on March 7, 2012, to prioritize dealer issues and develop a legislative agenda. PAA is always looking for feedback on legislative issues that can be addressed on a state level.  Submit legislative suggestions at any time. 

 

 

 

PAST SUCCESSES

PAA 2009-2010 Legislative Agenda

 

Expansion of Dealer Protections in State Franchise Law:

 

1. Relocation, Dualing, Facility Requirements, and Inventory Buy-back - ENACTED

ENACTED

Legislation drafted by PAA which augments dealer protections provided for in state law was passed by both the state Senate and House of Representatives last summer. These amendments to the state Board of Vehicles Act specifically expand manufacturer obligations to their franchised dealers.

The legislation:

  • Requires manufacturers to demonstrate reasonableness for denying a dealer’s relocation or dualing request.
  • Reduces drastically the time necessary for manufacturer consideration and determination of a dualing and relocation request.
  • Prohibits manufacturers from requiring the unreasonable expansion, construction or significant modification of dealer facilities, or construction of a separate facility, unless such costly activities are justified by market and economic conditions.
  • Requires manufacturers to repurchase any new, undamaged and unsold inventory acquired within 18 months of a franchise termination date, including dealer trades. Additionally, for trucks with a GVWR of 10,001 lbs. or more, the law will now require the repurchase of the current and two prior model years.

     

       

       

       

    2. Site Control - Enacted

     ENACTED

    PAA will be introducing legislation that limits site control restrictions imposed by manufacturers on franchisees. The expansion of dealer protections in this area will provide more flexibility in the development and disposition of buildings and real estate owned by dealers.

     

     

     

     
    For more information on PAA's legislative agenda, contact Mark Stine, Vice President of Legislative & Public Affairs by phone, 1-800-242-3745, ext. 3362 or by email.