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Mackinac Center for Public Policy
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2014 House Bill 5606: Expand "protectionist" auto dealer provision

Public Act 354 of 2014

  1. Introduced by Rep. Aric Nesbitt (R) on May 28, 2014, to prohibit vehicle makers from preventing a dealer from tacking on extra fees that are permitted by a law that empowers the state to enforce exclusive new car dealer “territories” and regulate the terms of commercial relationships between dealers and manufacturers.
    • Referred to the House Commerce Committee on May 28, 2014.
      • Reported in the House on September 17, 2014, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
  2. Passed 106 to 3 in the House on September 18, 2014, to prohibit vehicle makers from preventing a dealer from tacking on extra "document preparation" fees. The bill amends a law that empowers the state to enforce exclusive new car dealer “territories” and regulate the terms of commercial relationships between dealers and manufacturers.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on September 23, 2014.
    • Referred to the Senate Regulatory Reform Committee on September 23, 2014.
      • Reported in the Senate on September 30, 2014, with the recommendation that the bill pass.
  4. Passed 38 to 0 in the Senate on October 2, 2014, to prohibit vehicle makers from preventing a dealer from tacking on extra "document preparation" fees. The bill amends a law that empowers the state to enforce exclusive new car dealer “territories” and regulate the terms of commercial relationships between dealers and manufacturers. The Senate added a provision to prohibit marketing cars made by a particular company except through a dealer in the state that is "franchised" by the manufacturer to sell and service its cars. Reportedly this is Michigan's contribution to a campaign by incumbent automakers to restrict direct marketing to consumers of electric cars made by the Tesla company.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on October 2, 2014.
  6. Passed 106 to 1 in the House on October 2, 2014, to concur with the Senate-passed version of the bill, which added a provision reportedly designed to restrict direct marketing to consumers of electric cars made by the Tesla company.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on October 21, 2014.

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