February 22, 2012
HOUSE BILL No. 1171
DIGEST OF HB 1171
(Updated February 21, 2012 11:43 am - DI 71)
Citations Affected: IC 9-23.
Synopsis: Relocation of new motor vehicle dealers. Provides that
certain restrictions pertaining to the relocation of new motor vehicle
dealers do not apply to a new motor vehicle dealer located in a county
of over 100,000 inhabitants under certain circumstances. Provides that
an action challenging the establishment or relocation of a new motor
vehicle dealer within a relevant market area is filed with the dealer
services division of the secretary of state. (Current law provides that
the action is filed in the circuit court). Requires an auto dealer to serve
a demand for mediation on a manufacturer or distributor before or at
the same time as filing a complaint or petition for relief with the dealer
services division of the secretary of state alleging an injury caused by
an unfair practice.
Effective: Upon passage.
(SENATE SPONSOR _ WYSS)
January 9, 2012, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
January 27, 2012, amended, reported _ Do Pass.
January 30, 2012, read second time, amended, ordered engrossed.
January 31, 2012, engrossed. Read third time, passed. Yeas 75, nays 21.
February 1, 2012, read first time and referred to Committee on Homeland Security,
Transportation and Veterans Affairs.
February 21, 2012, amended, reported favorably _ Do Pass.
February 22, 2012
Second Regular Session 117th General Assembly (2012)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2011 Regular Session of the General Assembly.
HOUSE BILL No. 1171
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 9-23-3-24; (12)EH1171.1.1. -->
SECTION 1. IC 9-23-3-24 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 24. (a) This section
does not apply to the:
relocation of a new motor vehicle dealer to a location that is
not more than two (2) miles from its established place of business;
(b) This section does not apply to the (2)
replacement in a relevant market area of a closed dealership that
has been closed within the preceding year, if the established place
of business of the reopened or replacement dealer is within two
(2) miles of the established place of business of the closed
(b) This section does not apply to a new motor vehicle dealer
located in a county having a population of more than one hundred
thousand (100,000) if:
(1) the new motor vehicle dealer relocates to a site that is
located at a distance greater than the existing distance of
another new motor vehicle dealer of the same line make
before the relocation; and
(2) the site of the relocation is outside an area that is within a
radius of four (4) miles from another new motor vehicle
dealer of the same line make.
(c) Before a franchisor enters into a franchise establishing or
relocating a new motor vehicle dealer within a relevant market area
where the same line make is represented, the franchisor shall give
written notice to each new motor vehicle dealer of the same line make
in the relevant market area of the franchisor's intention to establish an
additional dealer or to relocate an existing dealer within that relevant
(d) Not later than thirty (30) days after:
(1) receiving the notice provided for in subsection (c); or
(2) the end of any appeal procedure provided by the franchisor;
a new motor vehicle dealer may bring a declaratory judgment action
before the dealer services division of the secretary of state the
circuit court for the county in which the new motor vehicle dealer is
located to determine whether good cause exists for the establishing or
relocating of a proposed new motor vehicle dealer. If an action is filed,
the franchisor may not establish or relocate the proposed new motor
vehicle dealer until the circuit court dealer services division of the
secretary of state has rendered a decision on the matter. An action
brought under this section shall be given precedence over all other civil
matters on the court's docket. pending before the dealer services
division of the secretary of state.
(e) In determining whether good cause exists for establishing or
relocating an additional new motor vehicle dealer for the same line
court dealer services division of the secretary of state shall
take into consideration the existing circumstances, including the
(1) Permanency of the investment.
(2) Effect on the retail new motor vehicle business and the
consuming public in the relevant market area.
(3) Whether it is injurious or beneficial to the public welfare.
(4) Whether the new motor vehicle dealers of the same line make
in that relevant market area are providing adequate competition
and convenient consumer care for the motor vehicles of that line
make in the market area, including the adequacy of motor vehicle
sales and qualified service personnel.
(5) Whether the establishment or relocation of the new motor
vehicle dealer would promote competition.
(6) Growth or decline of the population and the number of new
motor vehicle registrations in the relevant market area.
(7) The effect on the relocating dealer of a denial of its relocation
into the relevant market area.
(f) Subsection (b) applies to:
(1) a new motor vehicle dealer that before the effective date of
subsection (b) has been engaged in the process of relocating
but has not physically relocated to the new intended site by
the effective date of subsection (b); or
(2) a new motor vehicle dealer that begins engaging in the
process of relocating on or after the effective date of
SOURCE: IC 9-23-6-9; (12)EH1171.1.2. -->
SECTION 2. IC 9-23-6-9 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 9. (a) As used in this section,
"division" refers to the dealer services division of the secretary of
(b) A dealer who is injured by an unfair practice set forth in
IC 9-23-3 may
sue for relief in a court of competent jurisdiction and
may recover damages or may receive injunctive relief, or both, and may
recover the cost of the suit, including reasonable attorney's fees. file a
complaint or petition with the division.
(c) A dealer may not file a complaint or petition with the
division based on an alleged violation of IC 9-23-3 or IC 9-23-5 by
a manufacturer or distributor unless the dealer serves a demand
for mediation upon the manufacturer or distributor:
(1) before; or
(2) at the same time as;
filing the complaint or petition. A demand for mediation must be
in writing and served upon the manufacturer or distributor by
certified mail at an address designated for the manufacturer or
distributor in the licensor's records. The demand for mediation
must contain a brief statement of the dispute and the relief sought
by the dealer serving the demand.
(d) Not later than twenty (20) days after the date the demand for
mediation is served under subsection (c), the parties shall mutually
select an independent mediator and meet with the mediator for the
purpose of attempting to resolve the dispute. The meeting place
must be within Indiana at a location selected by the mediator. The
mediator may extend the period in which the meeting must occur
for good cause shown by either party or upon stipulation of the
SOURCE: ; (12)EH1171.1.3. -->
SECTION 3. An emergency is declared for this act.