Sen. James F. Clayborne, Jr.
Filed: 10/27/2009
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1 | AMENDMENT TO HOUSE BILL 4628
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2 | AMENDMENT NO. ______. Amend House Bill 4628 on page 28, | ||||||
3 | line 1, after " use agreement ", by inserting " unless separate | ||||||
4 | and reasonable consideration was offered and accepted for that | ||||||
5 | agreement "; and | ||||||
6 | on page 28, by replacing lines 10 through 12 with the | ||||||
7 | following: | ||||||
8 | " collateral pledge of lease, or other similar agreement. "Site | ||||||
9 | control agreement" and "exclusive use agreement" also include a | ||||||
10 | manufacturer restricting the ability of a dealer to transfer, | ||||||
11 | sell, or lease the dealership premises by right of first | ||||||
12 | refusal to purchase or lease, option to purchase, or option to | ||||||
13 | lease if the transfer, sale, or lease of the dealership | ||||||
14 | premises is to a person who is an immediate family member of | ||||||
15 | the dealer. For the purposes of this subsection (g), "immediate | ||||||
16 | family member" means a spouse, parent, son, daughter, |
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1 | son-in-law, daughter-in-law, brother, and sister. | ||||||
2 | If a manufacturer exercises any right of first refusal to | ||||||
3 | purchase or lease or option to purchase or lease with regard to | ||||||
4 | a transfer, sale, or lease of the dealership premises to a | ||||||
5 | person who is not an immediate family member of the dealer, | ||||||
6 | then (1) within 60 days from the receipt of the completed | ||||||
7 | application forms generally utilized by a manufacturer to | ||||||
8 | conduct its review and a copy of all agreements regarding the | ||||||
9 | proposed transfer, the manufacturer must notify the dealer of | ||||||
10 | its intent to exercise the right of first refusal to purchase | ||||||
11 | or lease or option to purchase or lease and (2) the exercise of | ||||||
12 | the right of first refusal to purchase or lease or option to | ||||||
13 | purchase or lease must result in the dealer receiving | ||||||
14 | consideration, terms, and conditions that either are the same | ||||||
15 | as or greater than that which they have contracted to receive | ||||||
16 | in connection with the proposed transfer, sale, or lease of the | ||||||
17 | dealership premises. "; and | ||||||
18 | on page 28, line 13, after " agreement " by inserting " entered | ||||||
19 | into on or after the effective date of this amendatory Act of | ||||||
20 | the 96th General Assembly "; and | ||||||
21 | on page 29, by replacing lines 21 through 23 with the | ||||||
22 | following: | ||||||
23 | " For a period of 3 years from: (i) the date that a |
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1 | successor manufacturer acquires succeeds to or assumes any part | ||||||
2 | of the business of a predecessor manufacturer; (ii) the last | ||||||
3 | day that a former franchisee is authorized to remain in | ||||||
4 | business as a franchised dealer with respect to a particular | ||||||
5 | franchise under a termination agreement or deferred | ||||||
6 | termination agreement with a predecessor or successor | ||||||
7 | manufacturer; (iii) the last day that a former franchisee that | ||||||
8 | was cancelled, terminated, nonrenewed, noncontinued, rejected, | ||||||
9 | nonassumed, or otherwise ended by a predecessor or successor | ||||||
10 | manufacturer is authorized to remain in business as a | ||||||
11 | franchised dealer with respect to a particular franchise; or | ||||||
12 | (iv) the effective date of this amendatory Act of the 96th | ||||||
13 | General Assembly, whichever is latest, it shall be unlawful "; | ||||||
14 | and | ||||||
15 | on page 32, immediately below line 5, by inserting the | ||||||
16 | following:
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17 | " In the event that a successor manufacturer attempts to | ||||||
18 | enter into a same line make franchise with any person or to | ||||||
19 | permit the relocation of any existing line make franchise under | ||||||
20 | this subsection (h) at a location that is within the relevant | ||||||
21 | market area of 2 or more former franchisees, then the successor | ||||||
22 | manufacturer may not offer it to any person other than one of | ||||||
23 | those former franchisees unless the successor manufacturer can | ||||||
24 | prove that at least one of the 3 exceptions in items (1), (2), |
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1 | and (3) of this subsection (h) applies to each of those former | ||||||
2 | franchisees. ".
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