SCS/HCS/HBs 1286 & 1175 - The act consists of language from SCS/HCS/HB 1288, legislation pertaining to contractual agreements between manufacturers and other merchants. This includes language on all terrain vehicles and motorcycle franchisors and franchisees, marine dealers and manufacturers and exhibition language.

New language modifies Section 301.566 by requiring recreational vehicle dealers licensed in another state who wish to participate in a vehicle show or exhibition, to notify the Motor Vehicle Commission at least thirty days prior to the event. The commission must then make a determination regarding the dealer's compliance with Missouri's law, if such dealer does not comply, the commission must notify the dealer at least fifteen days prior to the event of the inability to participate. A violation of this section will result in a $1,000 fine to be assessed by the commission.

This act modifies language in the original 1288, first, by changing the time frame that claims made by a franchisee for promoting events or activities from ten days to twenty-five days, or program close, whichever is later. New language exempts certain claims from the provisions in the act, those being claims related to holdbacks and those related to a franchisor's use of a "balance forward account".

The act incorporates provisions originally set forth in HCS/HB 1286 & 1175; contractual agreements for marine dealers. The act prohibits a marine manufacturer from canceling a dealership agreement or substantially changing the competitive circumstances of a marine dealership without good cause; the circumstances where good cause shall exist are laid out in this act.

This act directs a marine manufacturer to notify the marine dealership at least ninety days via written notice of termination of any cancellation or nonrenewal of the dealership agreement. The notice shall provide the reasons for such a change and provide the dealer with ninety days to rectify the problems that led to such a decision. If the issues are dealt with, such notice shall be void, however if the problems are not dealt with, the change shall take effect sixty days after the receipt of the manufacturer's notice. A dealer can terminate the dealership agreement at any time provided they give written notice to the manufacturer at least ninety days prior to the change. The burden of proof lies with the manufacturer, and the ninety day requirement can be reduced to sixty days for a myriad of reasons; those reasons are laid out in this act.

A change in ownership must also follow the notification requirements; a dealer shall provide ninety days, written notice prior to the closing. Manufacturers cannot refuse this change unless it can show that the decision to do so is based on the reasonable criteria. This provision shall not apply in the case of a transfer to a designated family member made on behalf of a deceased dealer; once again, the manufacturer cannot refuse such a change unless it can show the decision to do so was based on the business experience, moral character, financial qualification, or criminal record of the designated family member. If the manufacturer refuses any change in ownership, they shall provide written notification of its reasons to the dealer within sixty days after receipt of the dealer notification and final determination. If no such notice is provided, the change shall be deemed approved.

This act provides for the repurchase of certain marine vessels when the dealer agreement is terminated by the manufacturer. The option for dealers who have had a dealer agreement unlawfully terminated to bring legal action against the responsible manufacturer is also laid out in this act.

Provisions of this act are similar to provisions in CCS/SS/SCS/HCS/HB 1288 (TAT).
MEGAN CRAIN