Illinois General Assembly - Bill Status for HB 4628

Amends the Motor Vehicle Franchise Act. Provides that for a period of 4 years from the date a motor vehicle manufacturer acquires, succeeds to, or assumes any part of the business of a bankrupted manufacturer it is unlawful for the succeeding manufacturer to enter into a same line make franchise with any person or to relocate any existing same line make franchise, for a line make of the bankrupted manufacturer that would be located or relocated within the relevant market area of a former franchisee without first offering the former franchisee the additional or relocated franchise, unless (i) as a result of a former franchisee's cancellation, termination, noncontinuance, or nonrenewal of the franchise, the bankrupted manufacturer had consolidated the line make with another of its line makes with a franchisee who operates a facility located within that relevant market area; (ii) the successor manufacturer paid the former franchisee the fair market value of the former franchisee's franchise; or (iii) the successor manufacturer proves that the former franchisee is unfit to own or manage the dealership. Prohibits a manufacturer, a distributor, a wholesaler, a distributor branch or division, a factory branch or division, or a wholesale branch or division, or officer, agent or other representative thereof from directly or indirectly conditioning the awarding of a franchise to a prospective new motor vehicle dealer, the addition of a line make or franchise to an existing dealer, the renewal of a franchise of an existing dealer, the approval of the relocation of an existing dealer's facility, or the approval of the sale or transfer of the ownership of a franchise on the willingness of a dealer, proposed new dealer, or owner of an interest in the dealership facility to enter into a site control agreement or exclusive use agreement. Defines terms. Effective immediately.

Eliminates language defining the term "relevant market area" to mean an area within a 10 mile, 15 mile, or 20 mile radius around the site of the previous franchisee's dealership facility. Provides that the term "successor manufacturer" means any motor vehicle manufacturer that, on or after January 1, 2009, (rather than on or after the effective date of this amendatory Act of the 96th General Assembly) acquires, succeeds to, or assumes any part of the business of another manufacturer, referred to as the "predecessor manufacturer". Permits a successor manufacturer to enter into a same line make franchise with any person or to relocate any existing same line make franchise for a line make of the predecessor manufacturer without first offering the former franchisee the additional or relocated franchise if the successor manufacturer proves that it would have good cause to terminate the franchise agreement of the former franchisee (rather than if the successor manufacturer proves the former franchisee is unfit to own or manage a dealership).

Makes changes to the definitions of "site control agreement" and "exclusive use agreement". Provides that if a manufacturer exercises any right of first refusal to purchase or lease or option to purchase or lease with regard to a transfer, sale, or lease of the dealership premises to a person who is not an immediate family member of the dealer, then specified conditions must be met. Makes changes in the circumstances under which it is unlawful for a successor manufacturer to enter into a same line make franchise with any person or to permit the relocation of any existing same line make franchise, for a line make of the predecessor manufacturer that would be located or relocated within the relevant market area of a former franchisee who owned or leased a dealership facility in that relevant market area without meeting specified requirements. Provides that if a successor manufacturer attempts to enter into a same line make franchise with any person or to permit the relocation of any existing line make franchise under specified provisions at a location that is within the relevant market area of 2 or more former franchisees, then the successor manufacturer may not offer it to any person other than one of those former franchisees unless the successor manufacturer can prove that one of certain exceptions applies to each of those former franchisees. Makes other changes.

Date	Chamber	Action
11/25/2009	House	Public Act . . . . . . . . . 96-0824

Date	Chamber	Action
9/29/2009	House	Filed with the Clerk by Rep. William B. Black
9/30/2009	House	First Reading
9/30/2009	House	Referred to Rules Committee
10/8/2009	House	Assigned to Judiciary I - Civil Law Committee
10/9/2009	House	Added Chief Co-Sponsor Rep. Jay C. Hoffman
10/9/2009	House	Added Chief Co-Sponsor Rep. John A. Fritchey
10/14/2009	House	Final Action Deadline Extended-9(b) November 30, 2009
10/14/2009	House	House Committee Amendment No. 1 Filed with Clerk by Judiciary I - Civil Law Committee
10/14/2009	House	House Committee Amendment No. 1 Adopted in Judiciary I - Civil Law Committee; by Voice Vote
10/14/2009	House	Do Pass as Amended / Short Debate Judiciary I - Civil Law Committee; 016-000-000
10/14/2009	House	Placed on Calendar 2nd Reading - Short Debate
10/14/2009	House	Added Co-Sponsor Rep. Chapin Rose
10/14/2009	House	Added Chief Co-Sponsor Rep. JoAnn D. Osmond
10/14/2009	House	Added Chief Co-Sponsor Rep. Dave Winters
10/14/2009	House	Second Reading - Short Debate
10/14/2009	House	Held on Calendar Order of Second Reading - Short Debate
10/15/2009	House	Placed on Calendar Order of 3rd Reading - Short Debate
10/15/2009	House	Third Reading - Short Debate - Passed 115-000-000
10/15/2009	House	Added Co-Sponsor Rep. Dan Reitz
10/15/2009	House	Added Co-Sponsor Rep. Mike Bost
10/15/2009	House	Added Co-Sponsor Rep. Roger L. Eddy
10/16/2009	Senate	Arrive in Senate
10/16/2009	Senate	Placed on Calendar Order of First Reading
10/16/2009	Senate	Chief Senate Sponsor Sen. James F. Clayborne, Jr.
10/16/2009	Senate	Added as Alternate Chief Co-Sponsor Sen. John J. Millner
10/16/2009	Senate	First Reading
10/16/2009	Senate	Referred to Assignments
10/22/2009	Senate	Assigned to Transportation
10/27/2009	Senate	Senate Committee Amendment No. 1 Filed with Secretary by Sen. James F. Clayborne, Jr.
10/27/2009	Senate	Senate Committee Amendment No. 1 Referred to Assignments
10/28/2009	Senate	Senate Committee Amendment No. 1 Assignments Refers to Transportation
10/28/2009	Senate	Senate Committee Amendment No. 1 Adopted
10/28/2009	Senate	Do Pass as Amended Transportation; 009-000-000
10/28/2009	Senate	Placed on Calendar Order of 2nd Reading October 28, 2009
10/28/2009	Senate	Second Reading
10/28/2009	Senate	Placed on Calendar Order of 3rd Reading October 29, 2009
10/29/2009	Senate	Rule 2-10 Third Reading Deadline Established As December 31, 2009
10/29/2009	Senate	Third Reading - Passed; 056-001-001
10/29/2009	House	Arrived in House
10/29/2009	House	Placed on Calendar Order of Concurrence Senate Amendment(s) 1
10/29/2009	House	Senate Committee Amendment No. 1 Motion Filed Concur Rep. William B. Black
10/29/2009	House	Senate Committee Amendment No. 1 Motion to Concur Referred to Rules Committee
10/30/2009	House	Senate Committee Amendment No. 1 Motion to Concur Rules Referred to Judiciary I - Civil Law Committee
10/30/2009	House	Senate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Judiciary I - Civil Law Committee; 016-000-000
10/30/2009	House	Added Co-Sponsor Rep. Patrick J. Verschoore
10/30/2009	House	Senate Committee Amendment No. 1 House Concurs 113-000-000
10/30/2009	House	Passed Both Houses
11/4/2009	House	Sent to the Governor
11/25/2009	House	Governor Approved
11/25/2009	House	Effective Date November 25, 2009
11/25/2009	House	Public Act . . . . . . . . . 96-0824