2010 Senate Bill 1309 / Public Act 139

Strengthen “protectionist” auto dealer contract regulations

Introduced in the Senate

April 29, 2010

Introduced by Sen. Samuel B. Thomas (D-4)

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 Senate Bill 1308 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 Economic Development and Regulatory Reform

June 29, 2010

Reported without amendment

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

Substitute offered

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 This version was subsequently superseded by another substitute with more changes.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

July 1, 2010

Substitute offered by Sen. Samuel B. Thomas (D-4)

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

The substitute passed by voice vote

Passed in the Senate 38 to 0 (details)

Received in the House

July 1, 2010

Referred to the Committee on Regulatory Reform

July 21, 2010

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

To replace the previous version of the bill with one that divides its provision among this and Senate Bill 1308, and House Bills 6099 and 6100, the House 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 House 104 to 2 (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 Senate Bill 1308 and House Bills 6099 and 6100 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. They would also make litigation cost awards to a dealer who wins a complaint under this law optional rather than required.

Received in the Senate

July 21, 2010

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

Passed in the Senate 33 to 0 (details)

Signed by Gov. Jennifer Granholm

Aug. 3, 2010