Sen. Dave Syverson

Filed: 5/7/2013





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2    AMENDMENT NO. ______. Amend House Bill 2508 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Motor Vehicle Franchise Act is amended by
5changing Section 10.1 as follows:
6    (815 ILCS 710/10.1)  (from Ch. 121 1/2, par. 760.1)
7    Sec. 10.1. (a) As used in this Section, "motorcycle" means
8every motor vehicle having a seat or saddle for the use of the
9rider and designed to travel with 3 or less wheels in contact
10with the ground, excluding farm, garden, and lawn equipment,
11and including off-highway vehicles.
12    (b) It shall be deemed a violation for a manufacturer, a
13distributor, a wholesaler, a distributor branch or division, or
14officer, agent or other representative thereof:
15        (1) To require a motorcycle franchisee to participate
16    in a retail financing plan or retail leasing plan or to



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1    participate in any retail consumer insurance plan.
2        (2) To own, to operate or to control any motorcycle
3    dealership in this State for a period longer than 2 years.
4        (3) Whenever any motorcycle dealer enters into a
5    franchise agreement, evidenced by a contract, with a
6    wholesaler, manufacturer or distributor wherein the
7    franchisee agrees to maintain an inventory and the contract
8    is terminated by the wholesaler, manufacturer,
9    distributor, or franchisee, then the franchisee may
10    require the repurchase of the inventory as provided for in
11    this Act. If the franchisee has any outstanding debts to
12    the wholesaler, manufacturer or distributor then the
13    repurchase amount may be credited to the franchisee's
14    account. The franchise agreement shall either expressly or
15    by operation of law have as part of its terms a security
16    agreement whereby the wholesaler, manufacturer, or
17    distributor agrees to and does grant a security interest to
18    the motorcycle dealer in the repurchased inventory to
19    secure payment of the repurchase amount to the dealer. The
20    perfection, priority, and other matters relating to the
21    security interest shall be governed by Article 9 of the
22    Uniform Commercial Code. The provisions of this Section
23    shall not be construed to affect in any way any security
24    interest that any financial institution, person,
25    wholesaler, manufacturer, or distributor may have in the
26    inventory of the motorcycle dealer.



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1        (4) To require a motorcycle dealer to utilize
2    manufacturer approved floor fixtures for the display of any
3    product that is not a product of the manufacturer.
4        (5) To require a motorcycle dealer to purchase lighting
5    fixtures that are to be installed in the dealership only
6    from the manufacturer's approved vendors.
7        (6) To require a motorcycle dealer to relocate to a new
8    or alternate facility.
9    (c) The provisions of this Section 10.1 are applicable to
10all new or existing motorcycle franchisees and franchisors and
11are in addition to the other rights and remedies provided in
12this Act, and, in the case of a conflict with other provisions
13contained in this Act, with respect to motorcycle franchises,
14this Section shall be controlling.
15    (d) The filing of a timely protest by a motorcycle
16franchise before the Motor Vehicle Review Board as prescribed
17by Sections 12 and 29 of this Act, shall stay the effective
18date of a proposed additional franchise or selling agreement,
19or the effective date of a proposed motorcycle dealership
20relocation, or the effective date of a cancellation,
21termination or modification, or extend the expiration date of a
22franchise or selling agreement by refusal to honor succession
23to ownership or refusal to approve a sale or transfer pending a
24final determination of the issues in the hearing.
25(Source: P.A. 91-142, eff. 7-16-99.)".