HCS HB 1288 -- MOTORCYCLE AND ALL-TERRAIN FRANCHISE AGREEMENTS

SPONSOR:  Crawford (Dougherty)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Transportation and Motor Vehicles by a vote of 20 to 0.

This substitute establishes regulations for compensation
agreements between franchisors and franchisees of motorcycles and
all-terrain vehicles.

The substitute requires franchisors to specify in writing the
franchisee's obligation for preparation, delivery, and warranty
service on its products and provide the franchisee with a
schedule of compensation to be paid for parts, work, service, and
the time allowance for the performance of the work and services.

A franchisor will be prohibited from:

(1)  Failing to perform any warranty obligation;

(2)  Failing to provide a written notice of franchisor recalls to
the owner of new motorcycles and all-terrain vehicles; and

(3)  Failing to compensate franchisees for the cost of repairs
effected by recalls.

Claims made by a franchisee for labor and parts must be paid
within 30 days after approval.  Franchisors must compensate
franchisees for franchisor-sponsored sales or service promotion
events, programs, or activities.

All claims must be approved or disapproved by the franchisor
within 30 days after their receipt of an approved form containing
the required information.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that the Motor Vehicle Franchise Act
passed several years ago was very helpful to auto dealers and
believe that the bill will be just as helpful to motorcycle and
all-terrain dealers.

Testifying for the bill were Representative Threlkeld; Missouri
Power Sports Dealers Association; Larry's Honda; Missouri
Motorcycle Dealers Association; and Robert Miles.

OPPONENTS:  There was no opposition voiced to the committee.

Robert Triplett, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am