Judiciary I - Civil Law Committee
Filed: 4/29/2009
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 1417




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    AMENDMENT NO. ______. Amend Senate Bill 1417 as follows:


 
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on page 1, line 5, after "and 9", by inserting "and by adding 
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Section 9.5"; and 
 
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on page 14, line 8, after "thereof;", by inserting the 
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following:
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    "provided, however, that, in light of all existing 
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    circumstances, (i) the motor vehicle dealer maintains a 
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    reasonable line of credit for each make or line of new 
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    motor vehicle, (ii) the new motor vehicle dealer remains in 
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    compliance with any reasonable facilities requirements of 
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    the manufacturer, (iii) no change is made in the principal 
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    management of the new motor vehicle dealer, and (iv) the 
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    addition of the make or line of new motor vehicles would be 
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    reasonable. The reasonable facilities requirement set 
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    forth in item (ii) of subsection (d)(8) shall not include 
 


 






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    any requirement that a franchisee establish or maintain 
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    exclusive facilities, personnel, or display space. Any 
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    decision by a motor vehicle dealer to sell additional makes 
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    or lines at the motor vehicle dealer's facility shall be 
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    presumed to be reasonable, and the manufacturer shall have 
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    the burden to overcome that presumption. A motor vehicle 
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    dealer must provide a written notification of its intent to 
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    add a make or line of new motor vehicles to the 
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    manufacturer. If the manufacturer does not respond to the 
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    motor vehicle dealer, in writing, objecting to the addition 
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    of the make or line within 60 days after the date that the 
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    motor vehicle dealer sends the written notification, then 
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    the manufacturer shall be deemed to have approved the 
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    addition of the make or line;"; and
 
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on page 32 by replacing lines 19 through 20 with "18 months 
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after the date the claim was paid or credit issued by the 
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manufacturer or franchiser of the transactions that are
subject 
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to audit by the franchiser."; and
 
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on page 40, by replacing lines 13 through 16 with the 
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following:
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        "(2) The franchisee's cost of each new undamaged and 
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    unsold current and prior year motor vehicles that were 
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    acquired within 12 months of termination and have 500 or 
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    fewer miles recorded on the odometer that are in the 
 


 






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    franchisee's inventory at the time of nonrenewal, 
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    termination, or restriction and that were purchased or 
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    acquired from the manufacturer or from another dealer of 
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    the same line make in the ordinary course of business."; 
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    and
 
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on page 41, line 10, by replacing "at the request" with "as a 
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requirement"; and
 
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on page 41, by inserting immediately below line 25 the 
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following:
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    "This subsection (b) shall not apply to a non-renewal or 
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termination that is implemented as a result of a sale of the 
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assets or stock of the franchise."; and
 
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on page 42, by replacing lines 2 through 4 with the following:
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"terminated or nonrenewed. The payments under items (b)(2) 
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through (b)(6) are"; and
 
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on page 42, by replacing lines 13 through 18 with the 
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following:
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"subsection (c), and the Board or, if agreed to under Section 
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12, the arbitrator, finds the manufacturer, distributor, or 
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wholesaler in violation of this subsection, then the 
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manufacturer, distributor, or wholesaler shall, in addition to 
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any other amounts due, pay the motor vehicle dealer:
 


 






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        (1) interest on the amount due at a rate reasonable in 
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    light of commercial practices, determined by the Board or 
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    arbitrator; and 
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        (2) reasonable attorney's fees and costs."; and 
 
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on page 42, after line 20, by inserting the following:
 
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    "(815 ILCS 710/9.5 new)

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    Sec. 9.5. Termination with good cause.
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    (a) Anything to the contrary notwithstanding, if a 
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manufacturer, wholesaler, distributor, or franchiser, with 
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good cause, (i) fails to renew a franchise on terms then 
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equally available to all of its motor vehicle dealers, (ii) 
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terminates a franchise, or (iii) restricts the transfer of a 
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franchise, the manufacturer, wholesaler, distributor or 
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franchiser shall pay to the franchisee all of the following, 
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including, but not limited to:
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        (1) Upon termination, cancellation, or nonrenewal of a 
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    line make or upon termination, cancellation, or nonrenewal 
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    due to a dealer's poor sales and service performance 
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    pursuant to notice provided under Section 4(d)(6) , an 
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    amount equal to the current, fair rental value of the 
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    portion of the motor vehicle dealer's established place of 
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    business that is used for motor vehicle sales and service 
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    with the manufacturer, wholesaler, distributor or 
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    franchiser for a period of one year beginning on the date 
 


 






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    of the nonrenewal, termination, or restriction on the 
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    transfer of the franchise. 
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        (2) The franchisee's cost of each new undamaged and 
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    unsold current and prior model year motor vehicles that 
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    were acquired within 12 months of termination and have  500 
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    or fewer miles recorded on the odometer in the franchisee's 
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    inventory at the time of nonrenewal, termination, or 
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    restriction and that were purchased or acquired from the 
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    manufacturer or from another motor vehicle dealer of the 
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    same line make in the ordinary course of business. 
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        (3) The franchisee's cost of each new, unused, 
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    undamaged, and unsold part or accessory that is in the 
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    current parts catalogue or is identical to a part or 
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    accessory in the current parts catalogue except for a 
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    number assigned to the part or accessory due to a change in 
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    the number after the purchase of the part or accessory and 
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    that is still in the original, resalable merchandising 
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    package and in an unbroken lot, except that, in the case of 
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    sheet metal, a comparable substitute for the original 
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    package may be used if the part or accessory was purchased 
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    (i) directly from the manufacturer, distributor, 
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    wholesaler, distributor branch or division, or officer, 
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    agent, or other representative thereof or (ii) from an 
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    outgoing authorized dealer as a part of the dealer's 
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    initial inventory. 
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        (4) The fair market value of each undamaged sign owned 
 


 






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    by the dealer that bears a trademark or trade name used or 
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    claimed by the manufacturer, distributor, wholesaler, 
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    distributor branch, or division, or officer, agent, or 
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    other representative thereof that was purchased as a 
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    requirement of the manufacturer, distributor, wholesaler, 
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    distributor branch, or division, or officer, agent, or 
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    other representative thereof. 
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        (5) The fair market value of all special tools, data 
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    processing equipment, and automotive service equipment 
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    owned by the dealer that (i) were recommended in writing 
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    and designated as special tools and equipment, (ii) were 
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    purchased at the request of the manufacturer, distributor, 
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    wholesaler, distributor branch or division, or officer, 
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    agent, or other representative thereof, and (iii) are in 
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    usable and good condition except for reasonable wear and 
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    tear. 
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    (b) The payment under item (a)(1) is due in 12 equal, 
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monthly installments, beginning 30 days after the franchise is 
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terminated or nonrenewed. The payments under items (a)(2) 
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through (a)(5) are due no later than 90 days after the 
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franchise is terminated or nonrenewed. As a condition of 
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payment under items (a)(2) through (a)(5) the motor vehicle 
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dealer must comply with all reasonable requirements provided by 
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the manufacturer, distributor, or wholesaler regarding the 
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return of inventory. 
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    If a manufacturer, distributor, or wholesaler does not 
 


 






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reimburse the motor vehicle dealer for the amounts required 
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under items (a)(2) through (a)(6) by the deadlines under this 
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subsection (b), then the manufacturer, distributor, or 
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wholesaler shall, in addition to any amounts due, pay the motor 
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vehicle dealer: 
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        (1) interest on the amount due at a rate reasonable in 
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    light of commercial practices, determined by the Board or 
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    arbitrator; and 
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        (2)reasonable attorney's fees and costs. 
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    (c) This Section does not apply to a termination or 
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nonrenewal that is implemented as a result of the sale of the 
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assets or stock of the franchise.".