SB 867 Modifies requirements for a franchisor to own a minority ownership in an entity that owns motor vehicle dealership and warranty reimbursement rates for motor vehicle franchises
Sponsor: Wasson
LR Number: 5778S.03I Fiscal Note available
Committee: Transportation and Infrastructure
Last Action: 2/27/2014 - Second Read and Referred S Transportation and Infrastructure Committee Journal Page: S436
Title: Calendar Position:
Effective Date: August 28, 2014

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Current Bill Summary


SB 867 - This act modifies the required distance from an unaffiliated new motor vehicle dealership for a franchisor to own a minority interest in an entity that owns a motor vehicle dealership of the same line-make. This act also modifies the warranty reimbursement for motor vehicle franchises when dealing with trucks licensed at a gross weight of eighteen thousand pounds or more. This act creates a different scheme for determining reasonable compensation for warranty services so that franchisees performing warranty services for trucks licensed at a gross weight of eighteen thousand pounds or more are compensated at their full nonwarranty service rate. This act also requires compensation under the same scheme when a franchisor provides parts to a franchisee for warranty services, less the cost of the provided parts.

This act is similar to HB 1634 (2014).

MICHELA BIRK