HB 959 Modifies provisions relating to the regulation of certain business organizations

     Handler: Cierpiot

Current Bill Summary

- Prepared by Senate Research -

SS/SCS/HCS/HB 959 - This act enacts provisions relating to the regulation of certain business organizations.


Currently, limited liability companies leasing real property to others or owning unoccupied real property in Kansas City or the City of Independence are required to file with the city clerk an affidavit naming a natural person with control of the property and his or her street address. This act further applies to real property owned in St. Joseph.

These provisions are identical to HB 321 (2019).


This act provides that the offices of president, chief executive officer, and chairman of the board of directors of a corporation may each be held by different persons, unless otherwise provided by the articles of incorporation or bylaws.

MOTOR VEHICLE FRANCHISE PRACTICES ACT (Sections 407.824 and 407.825)

This act repeals an existing provision of the Motor Vehicle Franchise Practices Act prohibiting coercion of franchisees to substantially alter their premises or facilities, and enacts new prohibitions against coercion.

This act prohibits franchisors and manufacturers from requiring or coercing franchisees to construct improvements or install signs or franchise elements at facilities which would replace or substantially alter improvements, signs, or elements completed and approved within the last 10 years. Franchisors and manufacturers may require routine maintenance.

The act prohibits manufacturers and franchisors from requiring franchisees to purchase goods or services, without reimbursement, used to make improvements to the franchisee's facility from a vendor selected by the manufacturer or franchisor without giving the option to obtain comparable goods or services of the same materials and characteristics from a vendor chosen by the franchisee and approved by the franchisor or manufacturer. Franchisors and manufacturers shall not unreasonably withhold approval. This prohibition shall not be construed to eliminate, impair, damage, or otherwise limit a manufacturer's or franchisor's intellectual property rights in any way.

The 10 year period specified in this act shall initiate on the date the manufacturer or franchisor gave final written approval of the facility, improvement, sign, or franchise element, or on the date the franchisee receives a certificate of occupancy for the facility, whichever is later.

Nothing in this act shall prohibit manufacturers or franchisors from requiring changes or updates to signs that contain intellectual property governed by federal law more frequently than every 10 years, provided that the manufacturer or franchisor shall offer the franchisee compensation for the sign, or pay for the sign, if changes are required less than 5 years apart.

These provisions are identical to SCS/SB 354 (2019).


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