HOUSE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

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

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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

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(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

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(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:

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"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.

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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.

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[(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.]

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(e)  Warranty reimbursement and incentive or reimbursement

program approval and audits.--

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(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

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.

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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

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:

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(10)  Having engaged in the buying, selling, exchanging,

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

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by licensed motorcycle dealers Licensed motorcycle

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dealers are permitted to buy, sell, exchange, trade or

otherwise deal in motorcycles on Sunday without being

subject to prosecution under this paragraph.

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Section 2 5.  Repeals are as follows:

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(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.

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