TRULY AGREED
SCS HB 1055 -- MOTORCYCLE AND ALL-TERRAIN VEHICLE FRANCHISES AND
OTHER AGREEMENTS
This bill contains new provisions governing motorcycle and all--
terrain vehicle franchises.
Motorcycle and all-terrain vehicle franchisors and franchises
doing business in Missouri are subject to the state's courts.
Any aggrieved party may file an application for a hearing before
the Administrative Hearing Commission. The procedure for such
hearings is specified, including time of notice and method of
service upon parties. The order setting the hearing date will
stop the complained-of activity until the final decision is
issued. The commission's decision may only be reviewed in
appellate court.
Franchisors must give written notice of proposed acts to
terminate the franchise, prevent the franchisee from changing
its capital structure, prevent transfer of a franchisee's
interest, or prevent succession of legal heirs to a franchise,
with certain exceptions. The notice must inform the franchisee
of the right to a hearing. The burden of proof will be on the
franchisor in proceedings where the franchisor must give notice
of proposed actions; in all other proceedings, the burden of
proof will be on the franchisee.
The bill makes it unlawful for a franchisor to:
(1) Engage in capricious, bad faith conduct which causes damage
to a franchisee or the public;
(2) Coerce a motorcycle or all-terrain vehicle franchisee to
accept deliveries which were not ordered;
(3) Fail to reasonably deliver sufficient motorcycles or all--
terrain vehicles;
(4) Coerce a franchisee to enter into an agreement by
threatening to cancel the franchise;
(5) Terminate or not renew the franchise, with exceptions;
(6) Prevent a franchisee from changing its capital structure;
(7) Prevent transfer of interest of a franchise;
(8) Prevent the changing of executive management;
(9) Impose unreasonable standards of performance;
(10) Require a franchisee to release any person from liability;
(11) Prohibit free association;
(12) Provide any illegal term in the franchise;
(13) Fail to pay reasonable compensation, as defined by the
bill, to a franchisee upon termination;
(14) Prevent succession by any legal heir under certain
conditions;
(15) Coerce a franchisee to waive a right that a franchisee may
have under this bill; or
(16) Initiate any of the above acts on the grounds that the
franchisor has advised a franchisee of its intention to
discontinue representation at the time of a franchisee change.
When establishing or relocating a dealership in St. Louis City,
a dealer must make reasonable efforts to improve the equitable
distribution of dealerships and to serve minorities. The Motor
Vehicle Commission must, in approving licenses, assure an
adequate percentage of minority-owned motorcycle and all-terrain
vehicle dealers in the St. Louis and Kansas City areas.
It will be a defense for a franchisor if it is shown that the
franchisee substantially failed to comply with the franchise
requirements; if a franchisee or its officers have been
convicted of a felony involving business honesty or practices;
if a franchisee abandoned its business, is insolvent, or there
has been a levy under an attachment process; or if the
franchisor acted in good faith as a seller or holder of a
security interest.
Franchisors and franchisees are prohibited from using false or
misleading advertising.
The remedies provided by this bill are not exclusive and a
motorcycle or all-terrain vehicle franchisee may also bring a
civil action for damages or injunctive relief.
PERFECTED
HB 1055 -- FRANCHISES AND OTHER AGREEMENTS BETWEEN MOTORCYCLE
DEALERS AND MANUFACTURERS (Thomason)
This bill contains new provisions governing motorcycle
franchises.
An aggrieved party may file an application for a hearing before
the Administrative Hearing Commission. The procedure for such
hearings is specified, including time of notice and method of
service upon parties. The order setting the hearing date will
stop the complained-of activity until the final decision is
issued. The commission's decision may only be reviewed in
appellate court.
Franchisors must give written notice of proposed acts to
terminate the franchise, prevent the franchisee from changing
its capital structure, prevent transfer of a franchisee's
interest, or prevent succession of legal heirs to a franchise,
with certain exceptions. The notice must inform the franchisee
of the right to a hearing. The burden of proof will be on the
franchisor in proceedings where the franchisor must give notice
of proposed actions; in all other proceedings, the burden of
proof will be on the franchisee.
The bill makes it unlawful for a franchisor to:
(1) Engage in capricious, bad faith conduct which causes damage
to a franchisee or the public;
(2) Coerce a motorcycle franchisee to accept deliveries which
were not ordered;
(3) Fail to reasonably deliver sufficient motorcycles;
(4) Coerce a franchisee to enter into an agreement by
threatening to cancel the franchise;
(5) Terminate or not renew the franchise, with exceptions;
(6) Prevent a franchisee from changing its capital structure;
(7) Prevent transfer of interest of a franchise;
(8) Prevent the changing of executive management;
(9) Impose unreasonable standards of performance;
(10) Require a franchisee to release any person from liability;
(11) Prohibit free association;
(12) Provide any illegal term in the franchise;
(13) Fail to pay reasonable compensation, as defined by the
bill, to a franchisee upon termination;
(14) Prevent succession by any legal heir under certain
conditions;
(15) Coerce a franchisee to waive a right that a franchisee may
have under this bill; or
(16) Initiate any of the above acts on the grounds that the
franchisor has advised a franchisee of its intention to
discontinue representation at the time of a franchisee change.
When establishing or relocating a dealership in St. Louis City,
a dealer must make reasonable efforts to improve the equitable
distribution of dealerships and to serve minorities. The Motor
Vehicle Commission must, in approving licenses, assure an
adequate percentage of minority-owned motorcycle dealers in the
St. Louis and Kansas City areas.
It will be a defense for a franchisor if it is shown that the
franchisee substantially failed to comply with the franchise
requirements; if a franchisee or its officers have been
convicted of a felony involving business honesty or practices;
if a franchisee abandoned its business, is insolvent, or there
has been a levy under an attachment process; or if the
franchisor acted in good faith as a seller or holder of a
security interest.
Franchisors and franchisees are prohibited from using false or
misleading advertising.
The remedies provided by this bill are not exclusive and a
motorcycle franchisee may also bring a civil action for damages
or injunctive relief.
FISCAL NOTE: No impact on state funds.
COMMITTEE
HB 1055 -- FRANCHISES AND OTHER AGREEMENTS BETWEEN MOTORCYCLE
DEALERS AND MANUFACTURERS
SPONSOR: Thomason
COMMITTEE ACTION: Voted "do pass by consent" by the Committee
on Motor Vehicle and Traffic Regulations by a vote of 14 to 0.
This bill contains new provisions governing motorcycle
franchises.
An aggrieved party may file an application for a hearing before
the Administrative Hearing Commission. The procedure for such
hearings is specified, including time of notice and method of
service upon parties. The order setting the hearing date will
stop the complained-of activity until the final decision is
issued. The commission's decision may only be reviewed in
appellate court.
Franchisors must give written notice of proposed acts to
terminate the franchise, prevent the franchisee from changing
its capital structure, prevent transfer of a franchisee's
interest, or prevent succession of legal heirs to a franchise,
with certain exceptions. The notice must inform the franchisee
of the right to a hearing. The burden of proof will be on the
franchisor in proceedings where the franchisor must give notice
of proposed actions; in all other proceedings, the burden of
proof will be on the franchisee.
The bill makes it unlawful for a franchisor to:
(1) Engage in capricious, bad faith conduct which causes damage
to a franchisee or the public;
(2) Coerce a motorcycle franchisee to accept deliveries which
were not ordered;
(3) Fail to reasonably deliver sufficient motorcycles;
(4) Coerce a franchisee to enter into an agreement by
threatening to cancel the franchise;
(5) Terminate or not renew the franchise, with exceptions;
(6) Prevent a franchisee from changing its capital structure;
(7) Prevent transfer of interest of a franchise;
(8) Prevent the changing of executive management;
(9) Impose unreasonable standards of performance;
(10) Require a franchisee to release any person from liability;
(11) Prohibit free association;
(12) Provide any illegal term in the franchise;
(13) Fail to pay reasonable compensation, as defined by the
bill, to a franchisee upon termination;
(14) Prevent succession by any legal heir under certain
conditions;
(15) Coerce a franchisee to waive a right that a franchisee may
have under this bill; or
(16) Initiate any of the above acts on the grounds that the
franchisor has advised a franchisee of its intention to
discontinue representation at the time of a franchisee change.
When establishing or relocating a dealership in St. Louis City,
a dealer must make reasonable efforts to improve the equitable
distribution of dealerships and to serve minorities. The Motor
Vehicle Commission must, in approving licenses, assure an
adequate percentage of minority-owned motorcycle dealers in the
St. Louis and Kansas City areas.
It will be a defense for a franchisor if it is shown that the
franchisee substantially failed to comply with the franchise
requirements; if a franchisee or its officers have been
convicted of a felony involving business honesty or practices;
if a franchisee abandoned its business, is insolvent, or there
has been a levy under an attachment process; or if the
franchisor acted in good faith as a seller or holder of a
security interest.
Franchisors and franchisees are prohibited from using false or
misleading advertising.
The remedies provided by this bill are not exclusive and a
motorcycle franchisee may also bring a civil action for damages
or injunctive relief.
FISCAL NOTE: No impact on state funds.
PROPONENTS: Supporters say that such legislation seeks to
regulate franchisor conduct and promote fair practices among all
parties.
Testifying for the bill were Representative Thomason; and
Missouri Power Sports Association.
OPPONENTS: There was no opposition voiced to the committee.
Robert Triplett, Legislative Analyst
INTRODUCED
HB 1055 -- Franchises and Other Agreements between Motorcycle
Dealers and Manufacturers
Sponsor: Thomason
This bill contains new provisions governing motorcycle
franchises.
An aggrieved party may file an application for a hearing before
the Administrative Hearing Commission. The procedure for such
hearings is specified, including time of notice and method of
service upon parties. The order setting the hearing date will
stop the complained-of activity until the final decision is
issued. The commission's decision may only be reviewed in
appellate court.
Franchisors must give written notice of proposed acts to
terminate the franchise, prevent the franchisee from changing
its capital structure, prevent transfer of a franchisee's
interest, or prevent succession of legal heirs to a franchise,
with certain exceptions. The notice must inform the franchisee
of the right to a hearing. The burden of proof will be on the
franchisor in proceedings where the franchisor must give notice
of proposed actions; in all other proceedings, the burden of
proof will be on the franchisee.
The bill makes it unlawful for a franchisor to:
(1) Engage in capricious, bad faith conduct which caused damage
to a franchisee or the public;
(2) Coerce a motorcycle franchisee to accept deliveries which
were not ordered;
(3) Fail to reasonably deliver sufficient motorcycles;
(4) Coerce a franchisee to enter into an agreement by
threatening to cancel the franchise;
(5) Terminate or not renew the franchise, with exceptions;
(6) Prevent a franchisee from changing its capital structure;
(7) Prevent transfer of interest of a franchise;
(8) Prevent the changing of executive management;
(9) Impose unreasonable standards of performance;
(10) Require a franchisee to release any person from liability;
(11) Prohibit free association;
(12) Provide any illegal term in the franchise;
(13) Fail to pay reasonable compensation, as defined by the
bill, to a franchisee upon termination;
(14) Prevent succession by any legal heir under certain
conditions;
(15) Coerce a franchisee to waive a right that a franchisee may
have under this bill; or
(16) Initiate any of the above acts on the grounds that the
franchisor has advised a franchisee of its intention to
discontinue representation at the time of a franchisee change.
When establishing or relocating a dealership in St. Louis City,
a dealer must make reasonable efforts to improve the equitable
distribution of dealerships and to serve minorities. The Motor
Vehicle Commission must, in approving licenses, assure an
adequate percentage of minority-owned motorcycle dealers in the
St. Louis and Kansas City areas.
It will be a defense for a franchisor if it is shown that the
franchisee substantially failed to comply with the franchise
requirements; if a franchisee or its officers have been
convicted of a felony involving business honesty or practices;
if a franchisee abandoned its business, is insolvent, or there
has been a levy under an attachment process; or if the
franchisor acted in good faith as a seller or holder of a
security interest.
Franchisors and franchisees are prohibited from using false or
misleading advertising.
The remedies provided by this bill are not exclusive and a
motorcycle franchisee may also bring a civil action for damages
or injunctive relief.
Missouri House of Representatives' Home Page
Last Updated November 10, 1998 at 3:29 pm