HCS HB 392 -- FRANCHISE DEALERS

SPONSOR:  Crawford (Avery)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Transportation and Motor Vehicles by a vote of 18 to 0.

This substitute requires franchisors, before granting a franchise
to establish or relocate a motorcycle, all-terrain vehicle, or
personal watercraft franchise within the market area of an
existing franchise representing the same line-make, to notify
existing franchises in the relevant market area and allows the
existing franchise to file an action in court to determine
whether good cause exists for the establishment or relocation of
the franchise.  Criteria for the determination of good cause are
specified.  The substitute defines market areas in counties with
a population greater than 100,000 as within a radius of 10 miles
and in counties with a population less than 100,000 as within a
radius of 25 miles or the county line.  The substitute does not
apply to the reopening of a closed franchise that is within two
miles of its place of business when it closed.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that this legislation gives power
sport dealers a procedure to challenge certain actions taken by
their franchisors that could harm their business.  The bill
simply brings the parity of statutory franchise protections for
power sport dealers on this issue.

Testifying for the bill were Representative Avery; Missouri Power
Sport Dealers Association; Capitol City Yamaha, Jefferson City;
Larry's Honda, Suzuki, Kawasaki, Jefferson City; and Yagers
Harley-Davidson, Sedalia.

OPPONENTS:  There was no opposition voiced to the committee.

Robert Triplett, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am