2010 House Bill 6100 / Public Act 141

Strengthen “protectionist” auto dealer contract regulations

Introduced in the House

April 29, 2010

Introduced by Rep. Roy Schmidt (D-76)

To impose additional restrictions on auto manufacturers seeking to downsize their dealer networks, including a 50 percent increase in the size of protected dealer "territories. Other provisions in this and House Bill 6099 would prohibit manufacturers from having dealer contracts that have a disparate impact on low-volume dealers. In general, the bills would strengthen provisions in this state's dealer protectionism laws, which essentially create a de facto “entitlement” for existing new car dealers to retain their status, regardless of market changes or impacts on consumer choice. They would also make litigation cost awards to a dealer who wins a complaint under this law optional rather than required.

Referred to the Committee on Regulatory Reform

June 24, 2010

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

July 1, 2010

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute failed by voice vote

Substitute offered by Rep. Roy Schmidt (D-76)

To replace the previous version of the bill with one that revises various details, but does not change its substance. This version was subsequently superseded by another substitute with more changes.

The substitute passed by voice vote

Passed in the House 105 to 2 (details)

Received in the Senate

July 21, 2010

Substitute offered

To replace the previous version of the bill with one that divides its provision among this and House Bill 6099, and Senate Bills 1309 and 1310, the Senate versions of the same bills. The substitute revises various details of the original but does not change its substance as previously described.

The substitute passed by voice vote

Passed in the Senate 33 to 0 (details)

To impose additional restrictions on auto manufacturers seeking to downsize their dealer networks, including a 50 percent increase in the size of protected dealer "territories." Other provisions would prohibit manufacturers from having dealer contracts that have a disparate impact on low-volume dealers. The package that includes House Bill 6100 and Senate Bills 1308 and 1309 would generally strengthen provisions in this state's dealer protectionism laws, which essentially create a de facto “entitlement” for existing new car dealers to retain their status, regardless of market changes or impacts on consumer choice. They would also make litigation cost awards to a dealer who wins a complaint under this law optional rather than required.

Received in the House

July 28, 2010

To concur with the Senate-passed version of the bill.

Passed in the House 96 to 2 (details)

Signed by Gov. Jennifer Granholm

Aug. 3, 2010