This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0498 - Establishes new provisions governing motorcycle franchises
SB 498 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2310-04

BILL NO. HCS for SCS for SB 498

SUBJECT: Motorcycle Franchises

TYPE: Original

DATE: April 22, 1998


FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED FY 1999 FY 2000 FY 2001
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED FY 1999 FY 2000 FY 2001
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED FY 1999 FY 2000 FY 2001
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

The Office of State Courts Administrator (CTS), Department of Revenue (DOR), Office of Administration (COA)-Administrative Hearing Commission, Attorney General (AGO), State Public Defender (SPD) and Office of Prosecution Services (OPS) do not expect to be fiscally impacted.

FISCAL IMPACT - State Government FY 1999 FY 2000 FY 2001
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1999 FY 2000 FY 2001
(10 Mo.)
$0 $0 $0


FISCAL IMPACT - Small Business

This proposal could have a direct fiscal impact on small businesses.

DESCRIPTION

The proposal would define motor vehicle to include all-terrain vehicles.

The proposal would also provide that motorcycle manufacturers, importers, distributors or dealers would be subject to the jurisdiction of the courts of the state of Missouri upon service of process. Procedures would be established allowing for any party to seek relief by filing an application with the Administrative Hearing Commission.

Unlawful practices, whether by an act or omission, by a motorcycle franchisor with remedies set forth would be outlined.

Every reasonable effort would be required to establish or relocate a motorcycle dealership within St. Louis City that would improve the equitable distribution of the dealerships and is conveniently located to serve minorities who reside in the city. The Department of Revenue (DOR) in approving licenses in any metropolitan statistical area with a population of more than one million would ensure that the community reflect an adequate percentage of minority-owned businesses.

DESCRIPTION (continued)

The proposal would establish defenses that a motorcycle franchisor could use in any action brought by a motorcycle franchisee. No franchisee or franchisor would be allowed to use any false, deceptive or misleading advertising. In addition to administrative relief, any motorcycle franchisee could bring an action against a franchisor for an act or omission which constitutes an unlawful practice to recover damages, and where appropriate, injunctive relief. These remedies would not be exclusive and would be in addition to other remedies permitted by law.

This legislation is not federally mandated, would not duplicate any other program, would not require additional capital improvements or rental space and would not impact total state revenue.

SOURCES OF INFORMATION

Office of State Courts Administrator

Department of Revenue

Office of Administration

Administrative Hearing Commission

Attorney General

State Public Defender

Office of Prosecution Services







Jeanne Jarrett, CPA

Director

April 22, 1998