HB 516 - The Motor Vehicle Franchise Practices Act is amended by this act.

PROHIBITED PRACTICES - No franchisor may terminate a franchise agreement because the franchisee sells another make or line of new motor vehicles prior to February 1, 1997, or if such sale is approved by the franchisor. The Administrative Hearing Commission (AHC) shall consider various factors in determining whether good cause to terminate exists.

No franchisor may prevent the sale of a franchisee's interest except under specified circumstances. Factors are stated for consideration by the AHC. Upon any termination, a franchisor must pay reasonable compensation to the franchisee for the cost of vehicles, part and accessories, signs and tools.

No franchisor may prevent the inheritance of a franchisee's interest, subject to certain notices and information being provided. No franchisor may threaten or coerce a franchisee with respect to the franchisee's rights under this law.

ADMINISTRATIVE HEARINGS - Specific provisions are added for applications to the Administrative Hearing Commission for violations of this law. Specific notice periods are provided for several violations. Appeals must go directly to the appellate court.

ST. LOUIS, KANSAS CITY - The establishment or relocation of a motor vehicle dealership in St. Louis City shall be done in an equitable manner for dealerships and minorities. Dealerships established in St. Louis and Kansas City shall reflect an adequate percentage of minority-owned businesses.

MOTORCYCLE FRANCHISING - Motorcycle franchisors shall not commit designated unlawful practices. The practices listed are similar to those of the motor vehicle franchisors but not as extensive.
JAMES KLAHR