COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3586-02
Bill No.: SB 999
Subject: Business and Commerce
Type: Original
Date: February 27, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Office of Attorney General (AGO) stated this proposal imposes no new duties on the AGO, therefore there is no fiscal impact on their agency.
Officials from the Office of State Courts Administrator stated there is no fiscal impact on the Courts resulting from this proposal.
Officials from the Department of Economic Development (DED) indicated this proposal does not pertain to entities that DED regulates nor does it concern activities that DED receives appropriations for, therefore the proposal will have no fiscal impact on DED.
Officials from the Office of Secretary of State and the Department of Labor and Industrial Relations stated this proposal has no fiscal impact on their respective agencies.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
There could be fiscal impact to small business franchisors or franchisees to comply with terms contained in this proposal.
DESCRIPTION
This proposal establishes regulations for compensation agreements between franchisors and franchisees.
The proposal directs franchisors to specify, in writing, franchisee obligations with regard to preparation, delivery, and warranty service. The franchisor shall compensate the franchisee for required warranty service. A schedule for such compensation shall be provided to the franchisee by the franchisor and include information on parts, work, service and time allowance for work and service.
The proposal directs franchisors to perform warranty obligations, include the expected date for which replacement parts will be available upon recall orders, and compensate franchisees for the repairs effected by any recalls. Any franchisee claims made be paid within thirty days of their approval from the franchisor. Any claims not specifically disapproved within that time frame are considered approved and payment is to be expected within the thirty-day time frame discussed above. Franchisees shall maintain records of all warranty repairs for two years after a claim has been paid.
This proposal holds franchisors responsible for compensating franchisees for franchisor-sponsored sales events, promotions or activities. Such claims are to be paid within ten days after their approval from the franchisor.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of Attorney General
Department of Economic Development
Office of State Courts Administrator
Office of Secretary of State
Department of Labor and Industrial Relations
Mickey Wilson, CPA
Director
February 27, 2004