An Act To
Maine Legislature, Session 128, LD 1463
Committee Amendment CA_A_S267 (Senate)
Amends: 10 MRSA §1174, 10 MRSA §1174-D, 10 MRSA §1183, 10 MRSA §1186

COMMITTEE AMENDMENT "A " to S.P. 509, L.D. 1463, Bill, "An Act To 
Amend the Laws Relating to Motor Vehicle Dealers" 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 10 MRSA §1174, sub-§3, ~~C-2 to C-5 are enacted to read: 
C-2. To discriminate, directly or indirectly, or to use an unreasonable, arbitrary or 
unfair sales or other performance standard in determining a franchise motor vehicle 
dealer's compliance with a franchise agreement. The manufacturer has the burden of 
proving the reasonableness of its performance standards by clear and convincing 
evidence; 
C-3. To fail to compensate a motor vehicle dealer for the reconditioning expenses 
and for all labor and parts the manufacturer requires a dealer to use to repair a new or 
used vehicle subject to a recall, if the dealer holds a franchise of the same line make 
as the vehicle. The manufacturer shall process and pay the claim in the same manner 
as for a claim for warranty reimbursement under section 1176; 
C-4. To fail to compensate a motor vehicle dealer for a used motor vehicle that is 
subject to a do not drive order or stop sale order as required by this paragraph, if the 
dealer holds a franchise of the same line make as the vehicle. 
(1) If a used motor vehicle is subject to a do not drive order or stop sale order 
and a remedy or part necessary to repair the used motor vehicle is not available 
within 30 days, the manufacturer shall compensate a motor vehicle dealer for 
each affected used motor vehicle in the inventory of the dealer at a prorated rate 
of at least 1.5% of the value of the used motor vehicle per month. commencing 
on the 30th day after the order was issued and ending on the date that the remedy 
and all parts necessary to repair or service the used motor vehicle are made 
available to the dealer. A manufacturer is not required by this subparagraph to 
pay more than the total value of the used motor vehicle to a motor vehicle dealer. 
(2) A used motor vehicle is considered to be part of the inventory of the motor 
vehicle dealer under subparagraph 1 if the used motor vehicle is in the possession 
COMMITTEE AMENDMENT. 
COMMIITEE AMENDMENT "A "to S.P. 509, L.D. 1463 
of the dealer on the date the do not drive order or stop sale order is issued or if 
the dealer obtains the used motor vehicle as a result of a trade-in or a lease return 
after the date that the order is issued but before the remedy and all parts 
necessary to repair the used motor vehicle are made available to the dealer. The 
manufacturer may establish the method by which a motor vehicle dealer 
demonstrates that an affected motor vehicle is part of the inventory of the dealer 
as described in this subparagraph. The method may not be unreasonable, be 
unduly burdensome or require the motor vehicle dealer to provide information to 
the manufacturer that is not necessary for payment. 
(3) A manufacturer may not reduce compensation to a motor vehicle dealer, 
process a charge back to a dealer, reduce the amount that the manufacturer owes 
a dealer under an incentive program or remove a dealer from an incentive 
program in response to the dealer submitting a claim or receiving compensation 
pursuant to this paragraph. This subparagraph does not prohibit a manufacturer 
from modifying or discontinuing an incentive program prospectively or from 
making ordinary business decisions. 
( 4) As used in this paragraph, the following terms have the following meanings. 
(a) "Do not drive order" means a notice issued by the Federal Government or 
a manufacturer advising a motor vehicle dealer or owner of a motor vehicle 
not to drive the vehicle until the vehicle has been repaired because the 
vehicle has a safety defect, fails to comply with a federal motor vehicle 
safety standard, fails to comply with a federal emissions standard or fails to 
comply with an emissions standard adopted pursuant to Title 3 8, chapter 4. 
(b) "Stop sale order" means a notice issued by the Federal Government or a 
manufacturer prohibiting a motor vehicle dealer from leasing or selling and 
delivering at wholesale or retail a motor vehicle in the inventory of the dealer 
until the vehicle has been repaired because the vehicle has a safety defect, 
fails to comply with a federal motor vehicle safety standard, fails to comply 
with a federal emissions standard or fails to comply with an emissions 
standard adopted pursuant to Title 38, chapter 4. 
(c) '1Value of the used motor vehicle" means the average trade-in value 
indicated in an independent 3rd-party guide for a used motor vehicle of the 
same year, make, model and mileage; 
C-5. 
To use any data, calculations or statistical determinations of the sales 
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performance of a motor vehicle dealer for any purpose for any period of time during 
which the dealer has at least 5% of its total new and used motor vehicle inventory 
subject to a stop sale order or do not drive order. For purposes of this paragraph, 
"stop sale order" and "do not drive order" have the same meaning as in paragraph C-
.4.;_ 
Sec. 2. 10 MRSA §1174, sub-§3, ,rK, as amended by PL 1997, c. 521, § 13, is 
further amended to read: 
K. 
To compete with a motor vehicle dealer operating under an agreement or 
franohise from the manufaotl:lrer, distributor or vAiolesaler in the relevant mafket area, 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to S.P. 509, L.D. 1463 
the area to be by directly or indirectly through any subsidiary or affiliated entity 
holding any ownership interest in or operating or controlling any motor vehicle 
dealership of any line make, unless the board determines, after a hearing, that there is 
no independent motor vehicle dealer available in the relevant market area to own and 
operate a dealership of the same line make in a manner consistent with the public 
interest and this chapter. For purposes of this paragraph, the relevant market area 
must be determined exclusively by equitable principles, except that a~ manufacturer 
or distributor is not considered to be competing when does not violate this paragraph 
hy operating a dealership either temporarily for a reasonable period, in any case not 
to exceed one year, or in a bona fide relationship in which an independent person has 
made a significant investment subject to loss in the dealership and can reasonably 
expect to acquire full ownership of the dealership on reasonable terms and conditions 
and except that a distributor is not considered to be competing when a wholly owned 
subsidiary corporation or the distributor sells motor vehicles at retail if, for at least 3 
years prior to January 1, 1975, the subsidiary corporation has been a wholly owned 
subsidiary of the distributor and engaged in the sale of motor vehicles at retail. The 
provisions of this paragraph apply to a successor manufacturer or a distributor;' 
Amend the bill by striking out all of section 4 and inserting the following: 
'Sec. 4. 10 MRSA §1174, sub-§5 is enacted to read: 
5. Discovered recall and warranty repairs. Manufacturer to deny a claim by a 
motor vehicle dealer for performing a covered warranty repair or required recall repair on 
a vehicle if the dealer discovered the need for the repair during the course of a separate 
repair request by the customer.' 
Amend the bill by inserting after section 5 the following: 
'Sec. 6. 10 MRSA §1174-D is enacted to read: 
§1174-D. Compensation for new vehicles with safety defect 
1. Compensation required. A manufacturer must compensate a motor vehicle 
dealer pursuant to 49 United States Code, Section 30116 (2016). A manufacturer is not 
required by this subsection to pay more than the total value of the affected new motor 
vehicle to a dealer. 
2. Civil action; statute of limitations. If a manufacturer refuses to comply with 
subsection 1, the motor vehicle dealer may file a complaint with the board pursuant to 
section 1188 or bring a civil action to recover damages, court costs and reasonable 
attorney's fees. Notwithstanding section 1183, the action must be commenced within 3 
years after the cause of action accrues.' 
Amend the bill by inserting after section 6 the following: 
'Sec. 7. 10 MRSA §1183, first ,r, as enacted by PL 1975, c. 573, is amended to 
read: 
A.otions Except for an action arising out of section 1174-D, actions arising out of any 
provision of this chapter shall must be commenced within 4 years ~ 
after the cause of 
action accrues; provided, however, that if a person liable hereunder under this chapter 
conceals the cause of action from the knowledge of the person entitled to bring it, the 
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COMMITTEE AMENDMENT" A" to S.P. 509, L.D. 1463 
period prior to the discovery of his the cause of action by the person so entitled shall be .lli 
excluded in determining the time limited for commencement of the action. If a cause of 
action accrues during the pendency of any civil, criminal or administrative proceeding 
against a person brought by the United States, or any of its agencies under the antitrust 
laws, the Federal Trade Commission Act, or any other Federal Act, or the laws of the 
State related to antitrust laws or to franchising, such actions may be commenced within 
one year after the final disposition of such civil, criminal or administrative proceeding. 
Sec. 8. 10 MRSA §1186, as amended by PL 1979, c. 127, §58, is further amended 
to read: 
§1186. Penalty 
Any person who violates any provision of this chapter shall be guilty of other than 
section 1174-D commits a Class E crime.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment retains the provisions of the bill that clarify the standard of review 
in succession planning for motor vehicle dealers and that prevent a manufacturer from 
denying claims due to clerical errors or technicalities. 
The amendment also makes it an unfair and deceptive trade practice for a motor 
vehicle manufacturer to use unreasonable performance standards in assessing motor 
vehicle dealer compliance with franchise agreements; to fail to compensate a motor 
vehicle dealer for all of the reconditioning expenses and for all labor and costs associated 
with performing a recall repair on a new or used vehicle; to fail to provide compensation 
to dealers when a used motor vehicle in the dealer's inventory is subject to a do not drive 
order or a stop sale order based on a safety defect or violation of an emissions standard 
and no remedy exists or the parts are unavailable to remedy the defect or violation within 
days; to compete with a motor vehicle dealer by opening a dealership of any line make 
in the State without first obtaining a determination from the Maine Motor Vehicle 
Franchise Board that there is no dealer within the relevant market area available to own 
and operate a dealership of that line make; and to deny a claim for a warranty repair or a 
recall repair on a vehicle when the need for the repair was discovered by the dealer during 
the course of a separate repair requested by the customer. 
The amendment also enacts a provision that mirrors federal law by requiring a 
manufacturer to compensate a dealer when a new motor vehicle in the dealer's inventory 
is subject to a do not drive order or a stop sale order based on a safety defect and there is 
a delay before the necessary remedy and parts are made available to the dealer to repair 
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the vehicle. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
App-roved: 06/09/17 feac 
LD 1463 
LR 1805(02) 
An Act To Amend the Laws Relating to Motor Vehicle Dealers 
Fiscal Note for Bill as Amended by Committee Amendment 'A.' ( S:- J(J -i) 
Committee: Labor, Commerce, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor revenue increase - General Fund 
Correctional and Judicial Impact Statements 
Increases the number of civil suits. 
The collection of additional filing fees may also increase General Fund revenue by minor amounts. 
LRl 805(02) - Fiscal Note - Page 1 of 1