motor vehicle dealers;
factories
DP |
Committee on Transportation |
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W/D |
Committee on Commerce & Economic Development |
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DP |
Caucus and COW |
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X |
Third Read |
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As Passed the House |
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SB 1096 expands the conditions under which a factory (manufacturer) of motor vehicles may own or operate a new motor vehicle dealership to include submission of evidence by the factory that discontinuing the factory’s interest in the dealership will result in a financial loss to the dealership or the factory.
SB 1096 passed the Transportation Committee unamended. SB 1096 passed the Committee of the Whole unamended.
Laws, 2000, Chapter 102 prohibits a manufacturer, franchiser, distributor or importer of motor vehicles (“factory”) from unfairly discriminating among its dealers or competing in the business of a new motor vehicle dealer or franchisee (“dealer”) except under certain conditions. These conditions include:
1. Effecting transfer of ownership from one dealer to another dealer and the factory is in a bona fide relationship with a person who is purchasing a dealership.
2. Permanently owning a minority interest in a dealership (up to 45%) under specific conditions.
· Adds a condition that allows the factory to own or operate a new motor vehicle dealership if financial loss would occur to the factory or dealership
· Requires the factory to submit evidence that financial loss to the factory or dealership will result from disposition of the factory’s interest.
· Eliminates the six-month temporary extension a factory may currently request for good cause and applies a one-year extension to all manufacturers.
· Removes the reference to “recreational vehicle manufacturers” regarding a one-year extension and applies the extension to all manufacturers.
· Removes the five-year limit on extensions requested by the factory.
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45th
Legislature
Second
Regular Session 2 April 6, 2002
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