PAA 2009 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.

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    2. Site Control

     

    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.

     

    Governor’s Budget

     

    With the Commonwealth once again facing a budget deficit (currently projected to exceed $500 million) and a contentious budget process rivaling last year’s impasse expected, crafting the FY 2010-11 budget this spring promises to be problematic. The state’s Rainy Day Fund was emptied last year and the availability of federal stimulus dollars which were essential to balancing the current spending plan is questionable. Additionally, the budget put forth by the Governor in February includes a proposal to eliminate most state sales tax exemptions and impose the tax on advertising, accounting, computer and legal services – significant items routinely purchased by dealers.

     

    PAA will be working with the both the House and Senate to ensure that any revenue generation proposals do not negatively impact dealers by increasing their tax burdens or costs of doing business.

     

    　

     

     

    100 Percent Mark-up of Certain After-Market Products

     

    Legislation has been introduced in the House of Representatives to ‘modernize’ and formally codify the state Goods and Services Installment Sales Act and the Motor Vehicle Sales Finance Act. Because statutory imposition of the 100 percent mark-up limitation appears in the Motor Vehicle Sales Finance Act, PAA is working with legislators to insert an amendment to the bill which would eliminate, or positively modify, the 100 percent cap. Already, testimony advancing our position was offered and favorably received at a House Commerce Committee hearing convened in January.

     

     

     

     
    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.