AUTO DEALERS:  CONSUMER FEES                                                         H.B. 5606 (H-1):

                                                                               SUMMARY OF HOUSE-PASSED BILL

                                                                                                         IN COMMITTEE

House Bill 5606 (Substitute H-1 as passed by the House)

Sponsor:  Representative Aric Nesbitt

House Committee:  Commerce

Senate Committee:  Regulatory Reform

Date Completed:  9-23-14

CONTENT

The bill would amend Public Act 118 of 1981, which regulates automobile dealer manufacturers and franchises, to prohibit a manufacturer from preventing, attempting to prevent, prohibiting, coercing, or attempting to coerce a new motor vehicle dealer from charging a consumer any documentary preparation fee that the dealer is allowed to charge under Michigan law.

(The Act includes provisions for injunctive relief and a cause of action against a manufacturer for certain actions taken in violation of the Act. It also specifies that a manufacturer who violates the Act is liable for all damages sustained by a new motor vehicle dealer as a result of the violation and for all court costs and reasonable attorney fees incurred by a dealer.)

MCL 445.1574                                                         Legislative Analyst:  Patrick Affholter

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

                                                                                      Fiscal Analyst:  John Maxwell

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.