MINUTES OF THE MEETING OF THE LOUISIANA MOTOR …

MINUTES OF THE MEETING OF THE

LOUISIANA MOTOR VEHICLE COMMISSION 3519 12th Street

Metairie, Louisiana 70002 Monday, March 11, 2013

The meeting was called to order at 10:10 a.m. by Chairman Raymond J. Brandt.

Present were:

Chairman Raymond J. Brandt Commissioner Brian C. Bent Commissioner John W. Timmons Commissioner Joseph W. "Bill" Westbrook Commissioner Alexis D. Hocevar

Commissioner V. Price LeBlanc, Jr. Commissioner John B. Fabre Commissioner James C. "Jim" Hicks Commissioner Maurice C. Guidry Commissioner Don P. Hargroder

L. A. House, Executive Director Adrian F. LaPeyronnie, III, Counselor

Gregory F. Reggie, Counselor Burgess E. McCranie, Jr., Counselor

Absent were:

Commissioner Troy J. Duhon Commissioner Philip E. Tarver

Commissioner Thad J. Ryan, III Commissioner Donna S. Corley

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Also, in attendance were Patricia R. Britton, Attorney for Suzuki Motor of America, Inc.; Kim Katner, Sponsorship and Development Manager and Marci Schramm, Executive Director of French Quarter Festivals, Inc.; Commission staff: Ingya Cattle, Assistant Executive Director; Art Quick, Compliance Investigator 5; Commission Investigators, Wayne Lee, Amy Lawson, Ayanna Burton, Neil Rogers and Scott Landreneau; Administrative Coordinators, Stacey Broussard and Josh Stevenson.

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The Executive Director advised the Commission Members the following bond waiver request had been received on February 20, 2013 from Jon R. Robertson, Chief Operations Officer of Suzuki Motor of America, Inc., along with copies of its balance sheets:

"As you know, American Suzuki Motor Corporation (ASMC) filed Chapter 11 Bankruptcy on November 5, 2012. At that time, ASMC announced its withdrawal from the U.S. market for new automotive sales. ASMC also announced its plan to sell its remaining assets to a buyer approved by the Bankruptcy Court and that the buyer would assume all vehicle warranties. Additionally, ASMC announced that the buyer would purchase ASMC's motorcycle/ATV and marine divisions, and would continue those businesses.

Recently, Suzuki Motor Corporation (SMC) in Japan established a new U.S. entity to purchase all of the assets from ASMC, and to serve as the new authorized distributor of Suzuki products in the U.S. The new entity is Suzuki Motor of America, Inc. (SMAI). As noted, SMAI will not distribute or sell new automobiles in the U.S. SMAI, however, will honor all warranties on all vehicles, and will continue to distribute motorcycle, ATV and marine products, which will be sold and serviced through authorized and licensed dealers in Louisiana.

SMAI has now registered with the Secretary of State to do business in Louisiana.

Although SMAI will not distribute new motor vehicle in continental U.S. including Louisiana, we understand that a motor vehicle distributor license may be required for SMAI to authorize dealers to offer Suzuki automobile warranty service and parts to consumers in Louisiana. For this reason, we are submitting SMAI's application for a motor vehicle distributor license, along with what we believe to be all required documentation. Enclosed with this letter you will find such documentation, including a Table of Contents identifying the corresponding Tab for each document.

Also, SMAI respectfully requests that it not be required to post the $1,000,000 bond sometimes imposed in connection with the issuance of motor vehicle distributor licenses. It is our understanding that this requirement sometimes is suspended at the discretion of the Executive Director and/or the Commission, and in fact such bond was not required for ASMC, SMAI's predecessor distributor of Suzuki automobiles. SMAI will not be wholesaling or distributing any new motor vehicles in Louisiana, and it is not asking any dealer continuing with service and parts sales to maintain wholesale foorlines or construct new or remodeled facilities. We respectfully submit that there is no reason to required such a bond from SMAI given its very limited motor vehicle activity (service and parts only), and that such a bond would be a financial burden for the company.

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Please note that SMAI is submitting under separate cover its completed application for a license to distribute Suzuki motorcycle, ATV and marine products. We are submitting these applications under separate cover in order to avoid any possible delay of one license in the event there is a delay in processing the other.

Once distributor license have been approved, SMAI will proceed with application for its representatives in Louisiana as may be required.

Please mail SMAI's recreational vehicle distributor license to the following:

Suzuki Motor America, Inc. 3251 E. Imperial Hwy, #GRD Lic.

Brea, California 92821-6795

If you have any questions regarding this application or the supplemental information provided, please feel free to contact Tracy Earle at tracy.earle@ or call 714-996-7040 ext 2215. For additional assistance, you also may contact Bob Alsip at robert.asop@ or at 714-996-7040 ext 2315."

At this time, the Chairman opened the floor for Patricia R. Britton, attorney for Suzuki Motor America, Inc., to address the Commission Members regarding Suzuki Motor America, Inc's financial statement. Ms. Britton responded to the questions posed by the Commission Members regarding Suzuki's operations after their bankruptcy and its financials. After a brief discussion, Commissioner Hargroder made a motion to waive the bond requirement of LSA-R.S. 32:1254D(6)(a) for Suzuki Motor America, Inc. Commissioner Hicks seconded this motion and it was unanimously approved. The Executive Director and staff were informed by attorneys of Suzuki motor America, Inc. that the recreation products line of Louisiana dealer list would not be changed after the bankruptcy.

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The Chairman called to order be Hearing #2012-049, Tex-Mex Manufacturer, Co. for alleged violations of LSAR.S.32:1254A. (1) Application for license; requirements for licensure; contents; licenses; franchise filings; LSAR.S.32:1261.(1)(h) Unauthorized acts; and Louisiana Administrative Code Title 46. Part V. Subpart 1. Chapter 5 ?513A. License Prior to Shipment. A court reporter was brought in to record the transcript of this hearing, which will be made a permanent part of the Commission's files.

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The Chairman called to order be Hearing #2012-050, Alumne Manufacturing, Inc. for alleged violations of LSAR.S.32:1254A(1) Application for license; requirements for licensure; contents; licenses; franchise filings; LSAR.S.32:1261(1)(h) Unauthorized acts; and Louisiana Administrative Code Title 46. Part V. Subpart 1. Chapter 5, ?513A. License Prior to Shipment. A court reporter was brought in to record the transcript of this hearing, which will be made a permanent part of the Commission's files.

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The Chairman called to order Hearing #2013-003, PEMBCO, Inc. DBA Pemberton Custom Airboats for alleged violations of LSA-R.S.32:1254A(1) Application for license; requirements for licensure; contents; licenses; franchise filings; LSA-R.S.32:1261(1)(h) Unauthorized acts. A court reporter was brought in to record the transcript of this hearing, which will be made a permanent part of the Commission's files.

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The Chairman called to order Hearing #2013-004, Triple C Trailers, LLC for alleged violations of LSAR.S.32:1254A(1) Application for license; requirements for licensure; contents; licenses; franchise filings; LSAR.S.32:1261(1)(h) Unauthorized acts; and Louisiana Administrative Code Title 46. Part V. Subpart 1. Chapter 5, ?513A. License Prior to Shipment. A court reporter was brought in to record the transcript of this hearing, which will be made a permanent part of the Commission's files.

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The Executive Director presented to the Commission Members an e-mail correspondence from Kim Katner, Sponsorship and Development Manager of French Quarter Festivals, Inc., dated January 30, 2013, requesting approval for automobile off-site display:

"Good Afternoon Ms. House - My name is Kim Katner and I am the Sponsorship and Development Manager for French Quarter Festivals, Inc. We would like to formally apply with the Louisiana Motor Vehicle Commission for approval of our Ford car exhibits at French Quarter Festival. The festival takes place on April 11th - 14th, 2013. I have attached to this email our detailed request. Please let me know if you have any questions or concerns."

The attachment read:

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"This is a request for permission from FRENCH QUARTER FESTIVALS, INC. (FQFI) and the selected NATIONAL automotive manufacturer as to the terms stated below with respect to French Quarter Festival (Event), taking place in New Orleans on April 11th, 12th, 13th & 14th, 2013.

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Two (2) exhibit spaces for the placement of four (4) vehicles, measuring approximately one thousand

(1,000) square feet of display space located at the Woldenberg Riverfront Park and the US Mint for Ford

to use during the event for a mutually agreed upon purpose, including, but not limited to, the display of

its products and services. If Ford elects to display vehicles: a) The Ford Focus, Escape, Mustang and/or

F-150 truck (the "Static Display Vehicles") will be used for static display purposes only; b)Ford will

arrange for appropriate transportation of the Static Display Vehicles to and from the display locations;

c) Ford shall ensure the vehicles are maintained in a clean condition while on display; d) French Quarter

Festivals, Inc. will be solely responsible for obtaining any necessary license or permit for the displays;

e) Ford will remove the Static Display Vehicles at specific date and time to be mutually agreed upon by

the parties.

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One (1) space for the placement of the Ford Fusion contest exhibit (footprint 80 x 30).

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Two (2) 10' x 10' tents, three (3) 8' tables, three (3) 6' tables, and nine (9) chairs will be located near each

of the vehicle exhibition areas for Ford to share product information.

!

Ford shall provide FQFI with at least one (1) set of keys to each vehicle for duration of Festival. FQFI

shall not move any vehicle unless emergency measures are required.

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Ford will be provided with an opportunity to participate in opening parade, which may include employees,

mascot, and vehicles.

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Ford will hire a mutually agreed upon third-party vendor to conduct the activation at the Event. Such

activities will include, vendor representatives promoting a register-to-win 2013 Ford Fusion contest and

talk about Ford products.

!

Ford will provide a certificate of insurance with limits of $1 million and hold harmless French Quarter

Festivals, Inc., its employees, representatives and assigns from any and all claims, injuries or charges

resulting from the operation of the performance area, actions of partner's employees and/or

representatives, and products, including food and beverage, which are sold during performances as well

as Audubon Commission and Audubon Nature Institute, The City of New Orleans, and Louisiana State

Museums, its officers, employees, Boards and Commissions, and volunteers.

!

Ford will pay for overnight/after hour security for vehicles left in public spaces after hours."

At this time, the Chairman opened the floor for Kim Katner, Sponsorship and Development Manager and Marci Schramm, Executive Director of French Quarter Festivals, Inc. to address the Commission Members regarding the upcoming French Quarter Festivals event. Ms. Katner and Ms. Schramm responded to the questions posed by the Commission Members regarding Ford's display and its product specialists at the event. After a brief discussion, Commissioner Hocevar made a motion to approve Ford's display and Ford providing product specialists at the 2013 French Quarter Festival. Commissioner Hicks seconded this motion and it was unanimously approved.

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The Executive Director presented to the Commission Members correspondence from James Lauderdale, Partner of Bill Hood Ford, L.L.C. DBA Bill Hood Ford Lincoln, received by the Commission on March 1, 2013, requesting approval for off-site vehicle storage:

"We would like to request an authorization from the Commission to allow our company an offsite new vehicle storage privilege during peak inventory periods. The property referenced is located 100 feet from our Ford new car display lot, directly across North Morrison Boulevard, and is owned by our company. The property address is 1507 North Morrison and we will utilize approximately one acre. No selling activity will occur on this overflow lot.

I have attached photos of the referenced property and the approval letter from Ford Motor Company.

The consideration of this request is greatly appreciated and hopefully will meet with your approval."

A brief discussion ensued after the Commission Members reviewed Bill Hood Ford, L.L.C. DBA Bill Hood Ford Lincoln request and the approval of Ford Motor Company. Commissioner LeBlanc suggested that once the manufacturer approved the dealer's request and added the storage site to the dealer's franchise agreement, the staff should add the information to the dealer's records. Commissioner LeBlanc also suggested that each off-site storage request should be consider individually at the Commission meeting. Commissioner LeBlanc made a motion to approve Bill Hood Ford, L.L.C. DBA Bill Hood Ford Lincoln's off-site storage request based on the above said reasons and as stated in Mr. Lauderdale's letter. Commissioner Hargroder seconded this motion and it was unanimously approved.

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At this time, the Executive Director announced a recess of Louisiana Motor Vehicle Commission's meeting and move to Motor Vehicle Sales Finance Division.

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***************************************************** At this time the Executive Director presented the commission with the following legislative bill which if passed would affect the Louisiana Motor Vehicle Commission law and/or be of interest to the Commission.

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The Executive Director reported to the Commission Members the issue of recreational product trade show licensing, wherein the promoter has been the one filing trade show application at the last minute then calling requesting the staff to add new dealers or new products to the trade show license on the opening day of the show. After a brief discussion, the Commission instructed the staff to stop amending or add new exhibit dealers or new products on the day of the show, also to follow the rules.

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The Executive Director advised the Commission Members upon direction of Chairman Brandt, on January 29, 2013, the staff mailed to all manufacturers the following letters surveying whether they pay non-licensed parties to performed warranty repair.

"The commission has been asked to investigate a complaint that manufacturers are paying for warranty work performed at unlicensed off-site locations for fleet accounts.

LSA-R.S. 32:1261A.(1)(t) prohibits a manufacturer or distributor to authorize anyone other than a franchised licensed motor vehicle dealer to perform warranty repairs.1

This letter is to notify you that the commission intends to investigate this claim and asks for your cooperation in advance. Please provide our agency with the names and addresses of any and all parties in the state of Louisiana whom your company pays for warranty service other than Louisiana motor vehicle dealers.

We look forward to working with you as we investigate this matter."

1?1261. Unauthorized acts

A. It shall be a violation of this Chapter: (1) For a manufacturer, a distributor, a wholesaler, distributor branch, factory branch, converter or

officer, agent, or other representative thereof: (t) To operate a satellite warranty and repair center, to authorize a person to perform

warranty repairs who is not a motor vehicle dealer, or to authorize a motor vehicle dealer to operate a satellite warranty and repair center within the community or territory of a same-line or make motor vehicle dealer. This Subparagraph shall not apply to recreational product manufacturers.

As of March 11, 2013, we are still awaiting responses which have been coming and hope to have a full report at the next Commission meeting.

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The Executive Director advised the Commission Members a pre-hearing had been on November 5, 2012, pursuant to LSA-R.S. 49:961C, regarding Hearing #2012-037, Lamarque Ford, Inc., 3101 Williams Boulevard, Kenner, Louisiana 70065, for alleged violations of Louisiana Administrative Code Title 46. Part V. Subpart 1. Chapter 13. New Motor Vehicle Auto Shows; Offsite Displays ?1307.A., B., and C. Static Offsite Displays. In attendance representing Lamarque Ford, Inc. were Ronnie Lamarque, Owner and Richard Richter, Esq.; and representing the Commission were: Acting Chairman Bill Westbrook; Counselor Gregory F. Reggie; Mike Laviolette, Commission Investigator Supervisor; Ayanna Burton and Neil Rogers, Commission Investigators; Ingya Cattle, Assistant Executive Director; and the Executive Director. The Executive Director advised the Commission Members the following Consent Judgment had been recommended by the Acting Chairman and accepted by the representatives of Lamarque Ford, Inc., if accepted and ratified by the Commission. Commissioner Bent made a motion to accept and ratify the Consent Judgment in this matter. Commissioner LeBlanc seconded this motion and it was unanimously approved.

IN RE:

Hearing #2012-037

Lamarque Ford, Inc. 3101 Williams Boulevard Kenner, Louisiana 70065

Alleged violations of Louisiana Administrative Code Title 46. Part V. Subpart 1. Chapter 13. New Motor Vehicle Auto Shows; Offsite Displays ?1307.A., B., and C. Static Offsite Displays

CONSENT JUDGMENT

After considering the entire record in this matter and the interest of the parties in amicably resolving it, the parties have consented to a judgment in favor of the Louisiana Motor Vehicle Commission based upon alleged violations by Lamarque Ford, Inc. of Louisiana Administrative Code Title 46. Part V. Subpart 1. Chapter 13. New Motor Vehicle Auto Shows; Offsite Displays ?1307.A., B., and C. Static Offsite Displays. Therefore, based on the parties' mutual consent;

IT IS HEREBY AGREED by and between Lamarque Ford, Inc. and the Louisiana Motor Vehicle Commission that respondent waives:

A.

Any further procedural rights or remedies afforded under the law;

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