Illinois General Assembly - Full Text of SB1687
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Full Text of SB1687  100th General Assembly


Sen. Martin A. Sandoval

Filed: 5/1/2017





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2    AMENDMENT NO. ______. Amend Senate Bill 1687 on page 1,
3line 5, by deleting "and by adding Section 1.5"; and
4on page 2, by deleting lines 16 through 22; and
5on page 17, line 20, by deleting "or threaten to take"; and
6on page 18, by replacing line 1 with the following:
7    "either electronically or on paper, prior to the sale or
8    lease, and the dealer knew or reasonably should have known
9    of the"; and
10on page 18, line 4, by changing "in" to "and titled in"; and
11on page 18, by replacing lines 10 through 26 with the
13        "(11) to coerce or require any dealer to construct



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1    improvements to his or her facilities or to install new
2    signs or other franchiser image elements that replace or
3    substantially alter those improvements, signs, or
4    franchiser image elements completed within the past 10
5    years that were required and approved by the manufacturer
6    or one of its affiliates. The 10-year period under this
7    paragraph (11) begins to run for a dealer, including that
8    dealer's successors and assigns, on the date that the
9    manufacturer gives final written approval of the facility
10    improvements or installation of signs or other franchiser
11    image elements or the date that the dealer receives a
12    certificate of occupancy, whichever is later. For the
13    purpose of this paragraph (11), the term "substantially
14    alter" does not include routine maintenance, including,
15    but not limited to, interior painting, that is reasonably
16    necessary to keep a dealer facility in attractive
17    condition; or"; and
18on page 19, by deleting lines 1 through 10; and
19on page 19, line 12, by changing "improvement" to
20"improvements"; and
21on page 19, by replacing lines 24 through 26 with the
23    "means an amount equal to or greater than the cost savings



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1    that would result if the dealer were to utilize a vendor of
2    the dealer's own selection instead of using the vendor
3    identified by the manufacturer. For the purpose of this
4    paragraph (12), the term "goods" does not include movable
5    displays, brochures, and promotional materials containing
6    material subject to the intellectual property rights of a
7    manufacturer. If signs, other than signs containing the
8    manufacturer's brand or logo or free-standing signs that
9    are not directly attached to a building, or other
10    franchiser image or design elements or trade dress are to
11    be leased to the dealer by a vendor selected, identified,
12    or designated by the manufacturer, the dealer has the right
13    to purchase the signs or other franchiser image or design
14    elements or trade dress of substantially similar quality
15    and design from a vendor selected by the dealer if the
16    signs, franchiser image or design elements, or trade dress
17    are approved by the manufacturer. Approval by the
18    manufacturer shall not be unreasonably withheld. This
19    paragraph (12) shall not be construed to allow a dealer or
20    vendor to impair, infringe upon, or eliminate, directly or
21    indirectly, the intellectual property rights of the
22    manufacturer including, but not limited to, the
23    manufacturer's intellectual property rights in any
24    trademarks or trade dress, or other intellectual property
25    interests owned or controlled by the manufacturer. This
26    paragraph (12) shall not be construed to permit a dealer to



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1    erect or maintain signs that do not conform to the
2    manufacturer's intellectual property rights or trademark
3    or trade dress usage guidelines."; and
4on page 20, by deleting lines 1 through 14; and
5on page 35, by replacing lines 3 through 16 with the following:
6            "(A) notifies the dealer in writing that it intends
7        to exercise its right to acquire the franchise not
8        later than 60 days after the manufacturer's or
9        distributor's receipt of a notice of the proposed
10        transfer from the dealer and all information and
11        documents reasonably and customarily required by the
12        manufacturer or distributor supporting the proposed
13        transfer;"; and
14on page 36, by replacing lines 10 through 12 with the
16        "investigating, and negotiating the transfer of the
17        dealership prior to the manufacturer's or
18        distributor's exercise of its right of"; and
19on page 36, line 21, by changing "manufacturer" to
20"manufacturer's"; and
21on page 36, line 25 by changing "30" to "90"; and



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1on page 37, by replacing lines 3 through 9 with the following:
2        "manufacturer's or distributor's right of first
3        refusal.
4        Except as provided in this paragraph (14), neither the
5    selling dealer nor the manufacturer or distributor shall
6    have any liability to any person as a result of a
7    manufacturer or distributor exercising its right of first
8    refusal.
9        For the purpose of this paragraph, "proposed
10    transferee" means the person to whom the franchise would
11    have been transferred to, or was proposed to be transferred
12    to, had the right of first refusal or other right to
13    acquire the franchise not been exercised by the
14    manufacturer or distributor."; and
15on page 37, line 13, by deleting "employee,"; and
16on page 37, by replacing lines 18 through 22 with the
18"place of business as a motor vehicle franchisee or motor
19vehicle financing affiliate, except that, this subsection
20shall not prohibit:"; and
21on page 54, by replacing lines 14 through 24 with the



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1    "dealer's market area presented by the dealer impacted the
2    dealer's performance.".