Sen. James F. Clayborne, Jr.
Filed: 10/27/2009
 
 

 




 

 		












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AMENDMENT TO HOUSE BILL 4628




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    AMENDMENT NO. ______. Amend House Bill 4628 on page 28, 
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line 1, after "use agreement", by inserting "unless separate 
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and reasonable consideration was offered and accepted for that 
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agreement"; and
 
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on page 28, by replacing lines 10 through 12 with the 
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following:
 
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"collateral pledge of lease, or other similar agreement. "Site 
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control agreement" and "exclusive use agreement" also include a 
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manufacturer restricting the ability of a dealer to transfer, 
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sell, or lease the dealership premises by right of first 
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refusal to purchase or lease, option to purchase, or option to 
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lease if the transfer, sale, or lease of the dealership 
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premises is to a person who is an immediate family member of 
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the dealer. For the purposes of this subsection (g), "immediate 
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family member" means a spouse, parent, son, daughter, 
 


 






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son-in-law, daughter-in-law, brother, and sister.
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    If a manufacturer exercises any right of first refusal to 
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purchase or lease or option to purchase or lease with regard to 
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a transfer, sale, or lease of the dealership premises to a 
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person who is not an immediate family member of the dealer, 
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then (1) within 60 days from the receipt of the completed 
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application forms generally utilized by a manufacturer to 
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conduct its review and a copy of all agreements regarding the 
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proposed transfer, the manufacturer must notify the dealer of 
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its intent to exercise the right of first refusal to purchase 
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or lease or option to purchase or lease and (2) the exercise of 
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the right of first refusal to purchase or lease or option to 
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purchase or lease must result in the dealer receiving 
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consideration, terms, and conditions that either are the same 
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as or greater than that which they have contracted to receive 
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in connection with the proposed transfer, sale, or lease of the 
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dealership premises."; and
 
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on page 28, line 13, after "agreement" by inserting "entered 
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into on or after the effective date of this amendatory Act of 
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the 96th General Assembly"; and
 
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on page 29, by replacing lines 21 through 23 with the 
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following:
 
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    "For a period of 3 years from: (i) the date that a 
 


 






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successor manufacturer acquires succeeds to or assumes any part 
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of the business of a predecessor manufacturer; (ii) the last 
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day that a former franchisee is authorized to remain in 
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business as a franchised dealer with respect to a particular 
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franchise under a termination agreement or deferred 
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termination agreement with a predecessor or successor 
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manufacturer; (iii) the last day that a former franchisee that 
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was cancelled, terminated, nonrenewed, noncontinued, rejected, 
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nonassumed, or otherwise ended by a predecessor or successor 
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manufacturer is authorized to remain in business as a 
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franchised dealer with respect to a particular franchise; or 
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(iv) the effective date of this amendatory Act of the 96th 
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General Assembly, whichever is latest, it shall be unlawful"; 
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and 
 
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on page 32, immediately below line 5, by inserting the 
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following:


 
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    "In the event that a successor manufacturer attempts to 
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enter into a same line make franchise with any person or to 
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permit the relocation of any existing line make franchise under 
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this subsection (h) at a location that is within the relevant 
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market area of 2 or more former franchisees, then the successor 
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manufacturer may not offer it to any person other than one of 
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those former franchisees unless the successor manufacturer can 
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prove that at least one of the 3 exceptions in items (1), (2), 
 


 






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and (3) of this subsection (h) applies to each of those former 
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franchisees.".