SB1687sam001 100TH GENERAL ASSEMBLY

Sen. Martin A. Sandoval

Filed: 4/5/2017

10000SB1687sam001 LRB100 07840 JLS 24807 a

AMENDMENT TO SENATE BILL 1687

AMENDMENT NO. ______. Amend Senate Bill 1687 on page 1, line 5, by deleting "and by adding Section 1.5"; and

on page 2, by deleting lines 16 through 22; and

on page 17, line 20, by deleting "or threaten to take"; and

on page 18, by replacing line 1 with the following:

"either electronically or on paper, prior to the sale or lease, and the dealer knew or reasonably should have known of the"; and

on page 18, line 4, by changing "in" to "and titled in"; and

on page 18, by replacing lines 10 through 26 with the following:

"(11) to coerce or require any dealer to construct improvements to his or her facilities or to install new signs or other franchiser image elements that replace or substantially alter those improvements, signs, or franchiser image elements completed within the past 10 years that were required and approved by the manufacturer or one of its affiliates. The 10-year period under this paragraph (11) begins to run for a dealer, including that dealer's successors and assigns, on the date that the manufacturer gives final written approval of the facility improvements or installation of signs or other franchiser image elements or the date that the dealer receives a certificate of occupancy, whichever is later. For the purpose of this paragraph (11), the term "substantially alter" does not include routine maintenance, including, but not limited to, interior painting, that is reasonably necessary to keep a dealer facility in attractive condition; or"; and

on page 19, by deleting lines 1 through 10; and

on page 19, line 12, by changing "improvement" to "improvements"; and

on page 19, by replacing lines 24 through 26 with the following:

"means an amount equal to or greater than the cost savings that would result if the dealer were to utilize a vendor of the dealer's own selection instead of using the vendor identified by the manufacturer. For the purpose of this paragraph (12), the term "goods" does not include movable displays, brochures, and promotional materials containing material subject to the intellectual property rights of a manufacturer. If signs, other than signs containing the manufacturer's brand or logo or free-standing signs that are not directly attached to a building, or other franchiser image or design elements or trade dress are to be leased to the dealer by a vendor selected, identified, or designated by the manufacturer, the dealer has the right to purchase the signs or other franchiser image or design elements or trade dress of substantially similar quality and design from a vendor selected by the dealer if the signs, franchiser image design elements, or trade dress are approved by the manufacturer. Approval by the manufacturer shall not be unreasonably withheld. This paragraph (12) shall not be construed to allow a dealer or vendor to impair or eliminate, directly or indirectly, the intellectual property rights of the manufacturer including, but not limited to, the manufacturer's intellectual property rights in any trademarks or trade dress, or other intellectual property interests owned or controlled by the manufacturer. This paragraph (12) shall not be construed to permit a dealer to erect or maintain signs that do not conform to the manufacturer's intellectual property rights or trademark or trade dress usage guidelines."; and

on page 20, by deleting lines 1 through 14; and

on page 35, by replacing lines 3 through 16 with the following:

"(A) notifies the dealer in writing that it intends to exercise its right to acquire the franchise not later than 60 days after the manufacturer's or distributor's receipt of a notice of the proposed transfer from the dealer and all information and documents reasonably and customarily required by the manufacturer or distributor supporting the proposed transfer;"; and

on page 36, by replacing lines 10 through 12 with the following:

"investigating, and negotiating the transfer of the dealership prior to the manufacturer's or distributor's exercise of its right of"; and

on page 36, line 21, by changing "manufacturer" to "manufacturer's"; and

on page 36, line 25 by changing "30" to "90"; and

on page 37, by replacing lines 3 through 9 with the following:

"manufacturer's or distributor's right of first refusal.

Except as provided in this paragraph (14), neither the selling dealer nor the manufacturer or distributor shall have any liability to any person as a result of a manufacturer or distributor exercising its right of first refusal.

For the purpose of this paragraph, "proposed transferee" means the person to whom the franchise would have been transferred to, or was proposed to be transferred to, had the right of first refusal or other right to acquire the franchise not been exercised by the manufacturer or distributor."; and

on page 37, by replacing lines 21 and 22 with the following:

"retail customer other than through a franchised dealer, except as otherwise provided in this subsection (f). The changes made to this subsection (f) by this amendatory Act of the 100th General Assembly are declarative of existing law. This that, this subsection shall not prohibit:"; and

on page 54, by replacing lines 14 through 24 with the following:

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