SB 354
Modifies provisions of the Motor Vehicle Franchise Practices Act
LR Number:
Last Action:
5/17/2019 - Informal Calendar S Bills for Perfection--SB 354-Cierpiot, with SCS
Journal Page:
SCS SB 354
Calendar Position:
Effective Date:
August 28, 2019

Current Bill Summary

SCS/SB 354 - 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.

This act is identical to provisions in the truly agreed to and finally passed SS/SCS/HCS/HB 959 (2019).



No Amendments Found.