LEGISLATIVE UPDATE R. J. “Jim” Sewell, Jr. MTADA General Counsel • 2005. MTADA offered no legislation regarding the Montana Dealer Law during the 2005 session. The session concluded with a favorable resolution of most of the bills of general interest to the business community that MTADA took an interest in. • 2007. MTADA offered legislation to permit franchised dealers to display and sell new cars at off-site, outof-county events where the subject county has no franchised dealers but is part of a given dealer’s “area of responsibility.” In 2007, Montana had 22 counties with no franchised dealer. MVD and the OEM’s supported the proposal which was enacted. Other legislation offered and enacted in 2007 included: ‣ 61-4-123(3)(b) was revised to permit vehicle storage on property owned, leased, or rented by a dealer but not contiguous to the dealer’s established place of business. ‣ MVD bill was enacted regulating automobile brokers with support from MTADA. It allows a joint commercial endeavor (Costco) display, limited to 90 days in any calendar year. • 2009. MTADA succeeded in its efforts to significantly amend 61-4-202. Changes adopted include: ‣ Requiring that warranty and incentive payments be paid in 30 days of receipt of the claim from the dealer and prohibiting an OEM from denying warranty claims based solely on a dealer’s incidental failure to comply with a specific claim processing requirement that does not put into question the legitimacy of the claim and prohibiting an OEM from adding fees or surcharges or raising prices in Montana to make up for the requirement that warranty parts and services be reimbursed at retail rates. ‣ Prohibits an OEM from considering a dealers performance relating to the sale of new motor vehicles or ability to satisfy any minimum sales or A BRIEF HISTORY OF MTADA EFFORTS TO STRENGTHEN MONTANA’S DEALER CODE market share quota in determining eligibility to purchase program, certified or other used vehicles; to determine the volume, type or model of program, certified or other used motor vehicles the dealer is eligible to purchase; the price or prices of any program, certified, or other used motor vehicles that the dealer is eligible to purchase; or the availability or amount of any discount, credit, rebate or sales incentive that the new motor vehicle dealer is eligible to receive for the purchase of any program, certified, or other used motor vehicles. ‣ Prohibiting an OEM from penalizing a dealer for a vehicle sold that ended up in a foreign country and adding a rebuttable presumption that the dealer did not know or could not have reasonably known that the vehicle would be shipped to a foreign country if the motor vehicle is titled in one of the 50 States. ‣ Requires compensation to a dealer when an OEM drops a line-make. • 2011. MTADA offered no legislation regarding the Montana Dealer Law during the 2011 Session but, in conjunction with other business associations, took positions in opposition to anti-business bills. • 2013. MTADA’s efforts resulted in adoption of the following legislation during the 2013 Session: ‣ Permitting Demo Plates to be used on service loaners. (This language has now been replaced by the Loaner Plate authority passed during the 2019 Session.) ‣ 61-3-201(2)(c) was amended to allow a non-resident with a place of abode in Montana to register a vehicle here. ‣ 30-11-705 was amended to require an OEM to repurchase special equipment and signs from a terminating dealer. ‣ 61-4-207 was amended to provide that the desire of an OEM for reduced presence in the state is not good cause for termination of a dealer. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 12 MTADA MEMBERSHIP DIRECTORY 2023
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