Opinion ID: 1953759
Heading Depth: 1
Heading Rank: 4

Heading: LEGISLATIVE HISTORY OF ACT 283 of 1975

Text: In attempting to discern whether the legislature intended La.R.S. 51:487 to authorize the imposition of a 100% penalty, we now turn to the legislative history of Act 283. Act 283 was introduced as Senate Bill No. 264 by Senator Kenneth Osterberger. As originally enrolled section 482 provided for the repurchase of whole goods at 100% of the net cost, and section 483 provided for the repurchase of repair parts at 90% of the current net prices. Sen.B. 264, Reg. Sess., pp. 2, 3 (1975). Also, section 488 governed the liability of the manufacturer for failure to repurchase the inventory on a timely basis. Id. at 4. It stated the damages to be: (a) 100% of the net cost of the equipment, (b) transportation charges which were paid by the retailer, (c) 90% of the current net price of repair parts, (d) 5% for handling, packing and loading, if applicable, and (e) legal interest accruing sixty days after shipment. Id. The Bill was then sent to the Senate Agricultural Committee. Mr. Jimmy Dillon, a representative of the Farm and Power Equipment Dealers' Association, told the committee that dealers needed protective legislation in the event the manufacturer terminated the contract and said minimum standards should be set up to protect the dealer after termination. Minutes of Senate Agriculture Committee, Reg.Sess., p. 2 (May 26, 1975). He further stated North and South Dakota had passed very similar legislation and that International Harvester and John Deere were examples of manufacturers who already had these basic provisions in their dealership contracts. Id. Senator Osterberger, the author of the Bill, cited the example of a dealer who dies, leaving a family but no one interested in continuing the business. He stated his bill would set up some minimum standards for contracts which would provide some method for survivors to send back an inventory to the manufacturer. Id. at 3. While this is not a complete summary of the committee meeting, it does reflect the general concerns of those testifying. What is most notable is the complete absence of any testimony which can be construed as even suggesting that section 487 was intended to authorize a penalty of any kind. On the Senate floor, section 483 was amended to increase the repurchase price of repair parts from 90% of the net current price to 100%. This left the liability under section 487, previously numbered section 488, for failure to repurchase repair parts within sixty days at 90% of the current net price. Section 487 was also amended to delete the 5% handling and repacking charge. The Bill was then passed by the Senate and sent to the House. In the House, the Bill was referred to the House Committee on Agriculture, where several amendments were made. However, the minutes of that Committee meeting are not available, apparently because those records have been destroyed. Legislative records do reveal, however, that section 487 was amended in the House Committee to increase the liability of the manufacturer for failing to timely repurchase repair parts from 90% to 100% of the current net prices. Thereafter, on the House floor, section 483 was amended to reduce the repurchase price of repair parts from 100% to 90% of the net current prices, reversing the amendment passed by the Senate. Significantly, the effect of these changes was to increase the liability of the manufacturer by 10% for the repurchase of the repair goods, in addition to adding interest costs, if he failed to reimburse the dealer within sixty days of shipment. Section 488 was also added to provide for a 5% handling fee due to the dealer, based on the net current price of the repair parts, unless the manufacturer elected to perform the inventorying, packing and transportation of the repair parts. It was in this form that the Act was finally passed. 1975 La.Acts 283.