2014 House Bill 5606 / Public Act 354

Expand "protectionist" auto dealer provision

Introduced in the House

May 28, 2014

Introduced by Rep. Aric Nesbitt (R-66)

To prohibit vehicle makers from preventing a dealer from tacking on extra fees that are permitted by a law that empowers the state to enforce exclusive new car dealer “territories” and regulate the terms of commercial relationships between dealers and manufacturers.

Referred to the Committee on Commerce

Sept. 17, 2014

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Sept. 18, 2014

Passed in the House 106 to 3 (details)

To prohibit vehicle makers from preventing a dealer from tacking on extra "document preparation" fees. The bill amends a law that empowers the state to enforce exclusive new car dealer “territories” and regulate the terms of commercial relationships between dealers and manufacturers.

Received in the Senate

Sept. 23, 2014

Referred to the Committee on Regulatory Reform

Sept. 30, 2014

Reported without amendment

With the recommendation that the bill pass.

Oct. 2, 2014

Passed in the Senate 38 to 0 (details)

To prohibit vehicle makers from preventing a dealer from tacking on extra "document preparation" fees. The bill amends a law that empowers the state to enforce exclusive new car dealer “territories” and regulate the terms of commercial relationships between dealers and manufacturers. The Senate added a provision to prohibit marketing cars made by a particular company except through a dealer in the state that is "franchised" by the manufacturer to sell and service its cars. Reportedly this is Michigan's contribution to a campaign by incumbent automakers to restrict direct marketing to consumers of electric cars made by the Tesla company.

Received in the House

Oct. 2, 2014

Passed in the House 106 to 1 (details)

To concur with the Senate-passed version of the bill, which added a provision reportedly designed to restrict direct marketing to consumers of electric cars made by the Tesla company.

Signed by Gov. Rick Snyder

Oct. 21, 2014