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H.B. 167





Sponsor: Greg J. Curtis

             5      This act enacts the Powersport Vehicle Franchise Act. The act defines "powersport vehicle."
             6      The act creates the Utah Powersport Advisory Board and outlines the powers and duties of
             7      the board. The act clarifies the duties of a franchisor and a franchisee. The act creates
             8      restrictions on establishment, relocation, and termination of powersport vehicle franchises.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      ENACTS:
             11          13-34-101, Utah Code Annotated 1953
             12          13-34-102, Utah Code Annotated 1953
             13          13-34-103, Utah Code Annotated 1953
             14          13-34-104, Utah Code Annotated 1953
             15          13-34-105, Utah Code Annotated 1953
             16          13-34-106, Utah Code Annotated 1953
             17          13-34-107, Utah Code Annotated 1953
             18          13-34-201, Utah Code Annotated 1953
             19          13-34-202, Utah Code Annotated 1953
             20          13-34-203, Utah Code Annotated 1953
             21          13-34-204, Utah Code Annotated 1953
             22          13-34-205, Utah Code Annotated 1953
             23          13-34-301, Utah Code Annotated 1953
             24          13-34-302, Utah Code Annotated 1953
             25          13-34-303, Utah Code Annotated 1953
             26          13-34-304, Utah Code Annotated 1953
             27          13-34-305, Utah Code Annotated 1953

             28          13-34-306, Utah Code Annotated 1953
             29          13-34-307, Utah Code Annotated 1953
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 13-34-101 is enacted to read:

Part 1. General Administration

             34          13-34-101. Title.
             35          This chapter is known as the "Powersport Vehicle Franchise Act."
             36          Section 2. Section 13-34-102 is enacted to read:
             37          13-34-102. Definitions.
             38          As used in this chapter:
             39          (1) "Board" means the Utah Powersport Vehicle Franchise Advisory Board created in
             40      Section 13-34-103 .
             41          (2) "Dealership" means a site or location in this state:
             42          (a) at which a franchisee conducts the business of a new powersport vehicle dealer; and
             43          (b) that is identified as a new powersport vehicle dealer's principal place of business for
             44      registration purposes under Section 13-34-105 .
             45          (3) "Department" means the Department of Commerce.
             46          (4) "Executive director" means the executive director of the Department of Commerce.
             47          (5) "Franchise" or "franchise agreement" means a written agreement, for a definite or
             48      indefinite period, in which:
             49          (a) a person grants to another person a license to use a trade name, trademark, service
             50      mark, or related characteristic; and
             51          (b) a community of interest exists in the marketing of new powersport vehicles, new
             52      powersport vehicle parts, and services related to the sale or lease of new powersport vehicles at
             53      wholesale or retail.
             54          (6) "Franchisee" means a person with whom a franchisor has agreed or permitted, in
             55      writing or in practice, to purchase, sell, or offer for sale new powersport vehicles manufactured,
             56      produced, represented, or distributed by the franchisor.
             57          (7) (a) "Franchisor" means a person who has, in writing or in practice, agreed with or
             58      permits a franchisee to purchase, sell, or offer for sale new powersport vehicles manufactured,

             59      produced, represented, or distributed by the franchisor, and includes:
             60          (i) the manufacturer or distributor of the new powersport vehicles;
             61          (ii) an intermediate distributor;
             62          (iii) an agent, officer, or field or area representative of the franchisor; and
             63          (iv) a person who is affiliated with a manufacturer or a representative or who directly or
             64      indirectly through an intermediary is controlled by, or is under common control with the
             65      manufacturer.
             66          (b) For purposes of Subsection (7)(a)(iv), a person is controlled by a manufacturer if the
             67      manufacturer has the authority directly or indirectly by law or by an agreement of the parties, to
             68      direct or influence the management and policies of the person.
             69          (8) "Lead" means the referral by a franchisor to a franchisee of an actual or potential
             70      customer for the purchase or lease of a new powersport vehicle, or for service work related to the
             71      franchisor's vehicles.
             72          (9) "Line-make" means the powersport vehicles that are offered for sale, lease, or
             73      distribution under a common name, trademark, service mark, or brand name of the franchisor, or
             74      manufacturer of the powersport vehicle.
             75          (10) "Powersport vehicle" means:
             76          (a) an all-terrain type I or type II vehicle "ATV" defined in Section 41-22-2 ;
             77          (b) a snowmobile as defined in Section 41-22-2 ;
             78          (c) an off-highway motorcycle as defined in Section 41-1a-102 ; and
             79          (d) a personal watercraft as defined in Section 73-18-2 .
             80          (11) "New powersport vehicle dealer" means a person who is engaged in the business of
             81      buying, selling, offering for sale, or exchanging new all-terrain vehicles, snowmobiles,
             82      off-highway motorcycles, and personal watercraft either outright or on conditional sale, bailment,
             83      lease, chattel mortgage, or otherwise who has established a place of business for the sale, lease,
             84      trade, or display of powersport vehicles.
             85          (12) "Notice" or "notify" includes both traditional written communications and all reliable
             86      forms of electronic communication unless expressly prohibited by statute or rule.
             87          (13) "Relevant market area" means:
             88          (a) the county in which a powersport dealership is to be established or relocated; and
             89          (b) the area within a 15-mile radius from the site of the new or relocated dealership.

             90          (14) "Sale, transfer, or assignment" means any disposition of a franchise or an interest in
             91      a franchise, with or without consideration, including a bequest, inheritance, gift, exchange, lease,
             92      or license.
             93          (15) "Serve" or "served," unless expressly indicated otherwise by statute or rule, includes
             94      any reliable form of communication.
             95          (16) "Written," "write," "in writing," or other variations of those terms shall include all
             96      reliable forms of electronic communication.
             97          Section 3. Section 13-34-103 is enacted to read:
             98          13-34-103. Utah Powersport Vehicle Franchise Advisory Board -- Creation --
             99      Appointment of members -- Alternate members -- Chair -- Quorum -- Conflict of interest.
             100          (1) There is created within the department the Utah Powersport Vehicle Franchise
             101      Advisory Board that consists of:
             102          (a) the executive director or the executive director's designee; and
             103          (b) six members appointed by the executive director, with the concurrence of the governor,
             104      as follows:
             105          (i) three new powersport vehicle franchisees from among the three congressional districts
             106      of the state as the districts were constituted on January 1, 1996, no more than one of whom shall
             107      be located in the same congressional district; and
             108          (ii) three members representing powersport vehicle franchisors registered by the
             109      department pursuant to Section 13-34-105 , or three members of the general public, none of whom
             110      shall be related to any franchisee, or any combination of these representatives under this
             111      Subsection (1)(b)(ii).
             112          (2) The executive director shall also appoint, with the concurrence of the governor, six
             113      alternate members, with one alternate from each of the designations set forth in Subsections
             114      (1)(b)(i) and (1)(b)(ii), who shall take the place of a regular advisory board member from the same
             115      designation at a meeting of the advisory board where that regular advisory board member is absent
             116      or otherwise disqualified from participating in the advisory board meeting.
             117          (3) (a) Members of the advisory board shall be appointed for a term of four years.
             118          (b) The executive director may adjust the term of members who were appointed to the
             119      advisory board prior to July 1, 2002, by extending the unexpired term of a member for up to two
             120      additional years in order to insure that approximately half of the members are appointed every two

             121      years.
             122          (c) In the event of a vacancy on the advisory board, the executive director with the
             123      concurrence of the governor, shall appoint an individual to complete the unexpired term of the
             124      member whose office is vacant.
             125          (d) A member may not be appointed to more than two consecutive terms.
             126          (4) (a) The executive director or the executive director's designee shall be the chair of the
             127      advisory board.
             128          (b) The department shall keep a record of all hearings, proceedings, transactions,
             129      communications, and recommendations of the advisory board.
             130          (5) Four or more members of the advisory board constitute a quorum for the transaction
             131      of business. The action of a majority of the members of the advisory board is considered the action
             132      of the advisory board.
             133          (6) (a) A member of the advisory board may not participate as a board member in a
             134      proceeding or hearing:
             135          (i) involving the member's business or employer; or
             136          (ii) when a member, a member's business, family, or employer has a pecuniary interest in
             137      the outcome or other conflict of interest concerning an issue before the advisory board.
             138          (b) If a member of the advisory board is disqualified under Subsection (6)(a), the executive
             139      director shall select the appropriate alternate member to act on the issue before the advisory board
             140      as provided in Subsection (1)(c).
             141          (7) Except for the executive director or the executive director's designee, an individual may
             142      not be appointed or serve on the advisory board while holding any other elective or appointive state
             143      or federal office.
             144          (8) (a) (i) A member of the advisory board who is not a government employee shall receive
             145      no compensation or benefits for the member's services, but may receive per diem and expenses
             146      incurred in the performance of the member's official duties at the rates established by the Division
             147      of Finance under Sections 63A-3-106 and 63A-3-107 .
             148          (ii) A member may decline to receive per diem and expenses for the member's services.
             149          (b) (i) A state government officer or employee member who does not receive salary, per
             150      diem, or expenses from the member's agency for the member's service may receive per diem and
             151      expenses incurred in the performance of the member's official duties at the rates established by the

             152      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             153          (ii) A state government officer or employee member may decline to receive per diem and
             154      expenses for the member's service.
             155          (9) The department shall provide necessary staff support to the advisory board.
             156          Section 4. Section 13-34-104 is enacted to read:
             157          13-34-104. Powers and duties of the advisory board.
             158          The advisory board shall make recommendations on the administration and enforcement
             159      of this chapter and shall:
             160          (1) conduct rulemaking proceedings in accordance with Title 63, Chapter 46a, Utah
             161      Administrative Rulemaking Act, concerning administrative proceedings before the advisory board;
             162      and
             163          (2) conduct adjudicative proceedings required by this chapter in accordance with Title 63,
             164      Chapter 46b, Administrative Procedures Act, for the purpose of making recommendations to the
             165      executive director.
             166          Section 5. Section 13-34-105 is enacted to read:
             167          13-34-105. Registration -- Fees.
             168          (1) A franchisee or franchisor doing business in this state shall:
             169          (a) annually register or renew its registration with the department in a manner established
             170      by the department in collaboration with the advisory board; and
             171          (b) pay an annual registration fee in an amount determined by the department in
             172      accordance with Sections 13-1-2 and 63-38-3.2 .
             173          (2) The department, in collaboration with the advisory board, shall register or renew the
             174      registration of a franchisee or franchisor if the franchisee or franchisor complies with this chapter
             175      and rules made by the department under this chapter.
             176          (3) A franchisee or franchisor registered under this section shall comply with this chapter
             177      and any rules made by the department under this chapter including any amendments to this chapter
             178      or the rules made after a franchisee or franchisor enter into a franchise agreement.
             179          (4) The fee imposed under Subsection (1)(b) shall be collected by the department and
             180      deposited into the Commerce Service Fund.
             181          (5) Notwithstanding Subsection (1), an agent, officer, or field or area representative of a
             182      franchisor does not need to be registered under this section if the franchisor is registered under this

             183      section.
             184          Section 6. Section 13-34-106 is enacted to read:
             185          13-34-106. Administrative enforcement.
             186          (1) Except as provided in Subsection (5), after a hearing and after receipt of the advisory
             187      board's recommendation, if the executive director finds that a person has violated this chapter or
             188      any rule made under this chapter, the executive director may:
             189          (a) issue a cease and desist order; and
             190          (b) assess an administrative fine.
             191          (2) Except as provided in Subsection (5), the executive director shall comply with Title
             192      63, Chapter 46b, Administrative Procedures Act, and shall consult with the advisory board prior
             193      to any order or assessment of fine.
             194          (3) (a) In determining the amount and appropriateness of an administrative fine, the
             195      executive director shall consider:
             196          (i) the gravity of the violation;
             197          (ii) any history of previous violations; and
             198          (iii) any attempt made by the person to retaliate against another person for seeking relief
             199      under this chapter or other federal or state law relating to the motor vehicle industry.
             200          (b) In addition to any other action permitted under Subsection (1), the department may file
             201      an action with a court seeking to enforce the executive director's order and pursue the executive
             202      director's assessment of a fine in an amount not to exceed $5,000 for each day a person violates
             203      an order of the executive director.
             204          (4) Any person aggrieved by an adverse determination by the executive director may either
             205      seek reconsideration of the order pursuant to Section 63-46b-13 of the Administrative Procedures
             206      Act or seek judicial review of the order.
             207          (5) (a) In addition to the grounds for issuing an order on an emergency basis listed in
             208      Subsection 63-46b-20 (1), the executive director may issue an order on an emergency basis if the
             209      executive director determines that irreparable damage is likely to occur if immediate action is not
             210      taken.
             211          (b) In issuing an emergency order under Subsection (5)(a) the executive director shall
             212      comply with the requirements of Subsections 63-46b-20 (2) and (3).
             213          Section 7. Section 13-34-107 is enacted to read:

             214          13-34-107. Administrative hearings.
             215          (1) (a) A person may commence an adjudicative proceeding in accordance with this
             216      chapter and with Title 63, Chapter 46b, Administrative Procedures Act, to:
             217          (i) remedy a violation of this chapter; or
             218          (ii) obtain approval of an act regulated by this chapter.
             219          (b) A person shall commence an adjudicative proceeding by filing a request for agency
             220      action in accordance with Section 63-46b-3 .
             221          (2) (a) The advisory board shall conduct all adjudicative proceedings in accordance with
             222      Title 63, Chapter 46b, Administrative Procedures Act, with a quorum of the advisory board
             223      members in attendance.
             224          (b) An order or decision issued by the executive director shall comply with Section
             225      63-46b-10 .
             226          (c) Any hearing under this chapter shall be conducted as an informal proceeding unless
             227      otherwise designated as a formal proceeding pursuant to the provisions of Title 63, Chapter 46b,
             228      Administrative Procedures Act.
             229          (3) The advisory board shall apportion in a fair and equitable manner between the parties
             230      any costs of the adjudicative proceeding, including reasonable attorney's fees subject to final
             231      approval by a court.
             232          Section 8. Section 13-34-201 is enacted to read:
Part 2. Franchises in General

             234          13-34-201. Prohibited acts by franchisors -- Disclosures.
             235          (1) A franchisor in this state may not:
             236          (a) except as provided in Subsection (3), require a franchisee to order or accept delivery
             237      of any new powersport vehicle, part, accessory, equipment, or other item not otherwise required
             238      by law that is not voluntarily ordered by the franchisee;
             239          (b) require a franchisee to participate monetarily in any advertising campaign or contest,
             240      or purchase any promotional materials, display devices, or display decorations or materials;
             241          (c) require a franchisee to change the capital structure of the franchisee's dealership or the
             242      means by or through which the franchisee finances the operation of the franchisee's dealership, if
             243      the dealership at all times meets reasonable capital standards determined by and applied in a
             244      nondiscriminatory manner by the franchisor;

             245          (d) require a franchisee to refrain from participating in the management of, investment in,
             246      or acquisition of any other line of new powersport vehicles or related products, if:
             247          (i) the franchisee maintains a reasonable line of credit for each make or line of powersport
             248      vehicles; and
             249          (ii) complies with reasonable capital and facilities requirements of the franchisor;
             250          (e) require a franchisee to prospectively agree to a release, assignment, novation, waiver,
             251      or estoppel that would:
             252          (i) relieve a franchisor from any liability imposed by this chapter; or
             253          (ii) require any controversy between the franchisee and a franchisor to be referred to a third
             254      party if the decision by the third party would be binding;
             255          (f) require a franchisee to change the location of the principal place of business of the
             256      franchisee's dealership or make any substantial alterations to the dealership premises, if the change
             257      or alterations would be unreasonable;
             258          (g) coerce or attempt to coerce a franchisee to join, contribute to, or affiliate with an
             259      advertising association;
             260          (h) require, coerce, or attempt to coerce a franchisee to enter into an agreement with the
             261      franchisor or do any other act that is unfair or prejudicial to the franchisee, by threatening to cancel
             262      a franchise agreement or other contractual agreement or understanding existing between the
             263      franchisor and franchisee;
             264          (i) adopt, change, establish, modify, or implement a plan or system for the allocation,
             265      scheduling, or delivery of new powersport vehicles, parts, or accessories to its franchisees so that
             266      the plan or system is not fair, reasonable, and equitable;
             267          (j) increase the price of any new powersport vehicle that the franchisee has ordered from
             268      the franchisor and for which there exists at the time of the order a bona fide sale to a retail
             269      purchaser if the order was made prior to the franchisee's receipt of an official written price increase
             270      notification;
             271          (k) fail to indemnify and hold harmless its franchisee against any judgment for damages
             272      or settlement approved in writing by the franchisor:
             273          (i) including court costs and attorneys' fees arising out of actions, claims, or proceedings
             274      including those based on:
             275          (A) strict liability;

             276          (B) negligence;
             277          (C) misrepresentation;
             278          (D) express or implied warranty;
             279          (E) revocation as described in Section 70A-2-608 ; or
             280          (F) rejection as described in Section 70A-2-602 ; and
             281          (ii) to the extent the judgment or settlement relates to alleged defective or negligent actions
             282      by the franchisor;
             283          (l) threaten or coerce a franchisee to waive or forbear its right to protest the establishment
             284      or relocation of a same line-make franchisee in the relevant market area of the affected franchisee;
             285          (m) fail to ship monthly to a franchisee, if ordered by the franchisee, the number of new
             286      powersport vehicles of each make, series, and model needed by the franchisee to achieve a
             287      percentage of total new vehicle sales of each make, series, and model equitably related to the total
             288      new vehicle production or importation being achieved nationally at the time of the order by each
             289      make, series, and model covered under the franchise agreement;
             290          (n) require or otherwise coerce a franchisee to under-utilize the franchisee's existing
             291      facilities;
             292          (o) fail to include in any franchise agreement the following language or language to the
             293      effect that: "If any provision in this agreement contravenes the laws, rules, or regulations of any
             294      state or other jurisdiction where this agreement is to be performed, or provided for by such laws
             295      or regulations, the provision is considered to be modified to conform to such laws, rules, or
             296      regulations, and all other terms and provisions shall remain in full force.";
             297          (p) engage in the distribution, sale, offer for sale, or lease of a new powersport vehicle to
             298      purchasers who acquire the vehicle in this state except through a franchisee with whom the
             299      franchisor has established a written franchise agreement, if the franchisor's trade name, trademark,
             300      service mark, or related characteristic is an integral element in the distribution, sale, offer for sale,
             301      or lease;
             302          (q) except as provided in Subsection (2), authorize or permit a person to perform warranty
             303      service repairs on powersport vehicles, except warranty service repairs:
             304          (i) by a franchisee with whom the franchisor has entered into a franchise agreement for the
             305      sale and service of the franchisor's powersport vehicles; or
             306          (ii) on owned powersport vehicles by a person or government entity who has purchased

             307      new powersport vehicles pursuant to a franchisor's or manufacturer's fleet discount program;
             308          (r) fail to provide a franchisee with a written franchise agreement;
             309          (s) notwithstanding any other provisions of this chapter, unreasonably fail or refuse to offer
             310      to its same line-make franchised dealers all models manufactured for that line-make, or
             311      unreasonably require a dealer to pay any extra fee, remodel, renovate, recondition the dealer's
             312      existing facilities, or purchase unreasonable advertising displays or other materials as a prerequisite
             313      to receiving a model or series of vehicles;
             314          (t) except as provided in Subsection (5), directly or indirectly:
             315          (i) own an interest in a new powersport vehicle dealer or dealership;
             316          (ii) operate or control a new powersport vehicle dealer or dealership;
             317          (iii) act in the capacity of a new powersport vehicle dealer, as defined in Section
             318      13-34-102 ; or
             319          (iv) operate a powersport vehicle service facility;
             320          (u) fail to timely pay for all reimbursements to a franchisee for incentives and other
             321      payments made by the franchisor;
             322          (v) directly or indirectly influence or direct potential customers to franchisees in an
             323      inequitable manner, including:
             324          (i) charging a franchisee a fee for a referral regarding a potential sale or lease of any of the
             325      franchisee's products or services in an amount exceeding the actual cost of the referral;
             326          (ii) giving a customer referral to a franchisee on the condition that the franchisee agree to
             327      sell the vehicle at a price fixed by the franchisor; or
             328          (iii) advising a potential customer as to the amount that the potential customer should pay
             329      for a particular product;
             330          (w) fail to provide comparable delivery terms to each franchisee for a product of the
             331      franchisor, including the time of delivery after the placement of an order by the franchisee;
             332          (x) if personnel training is provided by the franchisor to its franchisees, unreasonably fail
             333      to make that training available to each franchisee on proportionally equal terms;
             334          (y) condition a franchisee's eligibility to participate in a sales incentive program on the
             335      requirement that a franchisee use the financing services of the franchisor or a subsidiary or affiliate
             336      of the franchisor for inventory financing;
             337          (z) make available for public disclosure, except with the franchisee's permission or under

             338      subpoena or in any administrative or judicial proceeding in which the franchisee or the franchisor
             339      is a party, any confidential financial information regarding a franchisee, including:
             340          (i) monthly financial statements provided by the franchisee;
             341          (ii) the profitability of a franchisee; or
             342          (iii) the status of a franchisee's inventory of products;
             343          (aa) use any performance standard, incentive program, or similar method to measure the
             344      performance of franchisees unless the standard or program:
             345          (i) is designed and administered in a fair, reasonable, and equitable manner;
             346          (ii) if based upon a survey, utilizes an actuarially generally acceptable, valid sample; and
             347          (iii) is, upon request by a franchisee, disclosed and explained in writing to the franchisee,
             348      including how the standard or program is designed, how it will be administered, and the types of
             349      data that will be collected and used in its application;
             350          (bb) other than sales to the federal government, directly or indirectly, sell, lease, offer to
             351      sell, or offer to lease, a new powersport vehicle or any powersport vehicle owned by the franchisor,
             352      except through a franchised new powersport vehicle dealer;
             353          (cc) compel a franchisee, through a finance subsidiary, to agree to unreasonable operating
             354      requirements, except that this Subsection (1)(cc) shall not be construed to limit the right of a
             355      financing subsidiary to engage in business practices in accordance with the usage of trade in retail
             356      and wholesale powersport vehicle financing;
             357          (dd) condition the franchisor's participation in co-op advertising for a product category on
             358      the franchisee's participation in any program related to another product category or on the
             359      franchisee's achievement of any level of sales in a product category other than that which is the
             360      subject of the co-op advertising;
             361          (ee) discriminate against a franchisee in the state in favor of another franchisee of the same
             362      line-make in the state by:
             363          (i) selling or offering to sell a new powersport vehicle to one franchisee at a higher actual
             364      price, including the price for vehicle transportation, than the actual price at which the same model
             365      similarly equipped is offered to or is made available by the franchisor to another franchisee in the
             366      state during a similar time period;
             367          (ii) except as provided in Subsection (6), using a promotional program or device or an
             368      incentive, payment, or other benefit, whether paid at the time of the sale of the new powersport

             369      vehicle to the franchisee or later, that results in the sale of or offer to sell a new powersport vehicle
             370      to one franchisee in the state at a higher price, including the price for vehicle transportation, than
             371      the price at which the same model similarly equipped is offered or is made available by the
             372      franchisor to another franchisee in the state during a similar time period; or
             373          (iii) except as provided in Subsection (7), failing to provide or direct a lead in a fair,
             374      equitable, and timely manner; or
             375          (ff) through an affiliate, take any action that would otherwise be prohibited under this
             376      chapter.
             377          (2) Subsection (1)(a) does not prevent the franchisor from requiring that a franchisee carry
             378      a reasonable inventory of:
             379          (a) new powersport vehicle models offered for sale by the franchisor; and
             380          (b) parts to service the repair of the new powersport vehicles.
             381          (3) Subsection (1)(d) does not prevent a franchisor from:
             382          (a) requiring that a franchisee maintain separate sales personnel or display space; or
             383          (b) refusing to permit a combination of new powersport vehicle lines, if justified by
             384      reasonable business considerations.
             385          (4) Upon the written request of any franchisee, a franchisor shall disclose in writing to the
             386      franchisee the basis on which new powersport vehicles, parts, and accessories are allocated,
             387      scheduled, and delivered among the franchisor's dealers of the same line-make.
             388          (5) (a) A franchisor may engage in any of the activities listed in Subsection (1)(t), for a
             389      period not to exceed 12 months if:
             390          (i) (A) the person from whom the franchisor acquired the interest in or control of the new
             391      powersport vehicle dealership was a franchised new powersport vehicle dealer; and
             392          (B) the franchisor's interest in the new powersport vehicle dealership is for sale at a
             393      reasonable price and on reasonable terms and conditions; or
             394          (ii) the franchisor is engaging in the activity listed in Subsection (1)(t) for the purpose of
             395      broadening the diversity of its dealer body and facilitating the ownership of a new powersport
             396      vehicle dealership by a person who:
             397          (A) is part of a group that has been historically under represented in the franchisor's dealer
             398      body;
             399          (B) would not otherwise be able to purchase a new powersport vehicle dealership;

             400          (C) has made a significant investment in the new powersport vehicle dealership which is
             401      subject to loss;
             402          (D) has an ownership interest in the new powersport vehicle dealership; and
             403          (E) operates the new powersport vehicle dealership under a plan to acquire full ownership
             404      of the dealership within a reasonable period of time and under reasonable terms and conditions.
             405          (b) The board may, for good cause shown, extend the time limit set forth in Subsection
             406      (5)(a) for an additional period not to exceed 12 months.
             407          (c) Notwithstanding the provisions of Subsection (1)(t), a franchisor may own, operate,
             408      or control a new powersport vehicle dealership trading in a line-make of powersport vehicle if:
             409          (i) as to that line-make of powersport vehicle, there are no more than four franchised new
             410      powersport vehicle dealerships licensed and in operation within the state as of January 1, 2002;
             411          (ii) the franchisor does not own directly or indirectly, more than a 45% interest in the
             412      dealership;
             413          (iii) at the time the franchisor first acquires ownership or assumes operation or control of
             414      the dealership, the distance between the dealership thus owned, operated, or controlled and the
             415      nearest unaffiliated new powersport vehicle dealership trading in the same line-make is not less
             416      than 150 miles;
             417          (iv) all the franchisor's franchise agreements confer rights on the franchisee to develop and
             418      operate as many dealership facilities as the franchisee and franchisor shall agree are appropriate
             419      within a defined geographic territory or area; and
             420          (v) as of January 1, 2002, no fewer than half of the franchisees of the line-make within the
             421      state own and operate two or more dealership facilities in the geographic area covered by the
             422      franchise agreement.
             423          (6) Subsection (1)(ee)(ii) does not prohibit a promotional or incentive program that is
             424      functionally available to all franchisees of the same line-make in the state on substantially
             425      comparable terms.
             426          (7) Subsection (1)(ee)(iv) may not be construed to:
             427          (a) permit provision of or access to customer information that is otherwise protected from
             428      disclosure by law or by contract between franchisor and a franchisee; or
             429          (b) require a franchisor to disregard the preference of a potential customer in providing or
             430      directing a lead, provided that the franchisor does not direct the customer to such a preference.

             431          (8) Subsection (1)(ff) does not limit the right of an affiliate to engage in business practices
             432      in accordance with the usage of trade in which the affiliate is engaged.
             433          Section 9. Section 13-34-202 is enacted to read:
             434          13-34-202. Sale or transfer of ownership.
             435          (1) (a) The franchisor shall give effect to the change in a franchise agreement as a result
             436      of an event listed in Subsection (1)(b):
             437          (i) subject to Subsection 13-34-305 (2)(b); and
             438          (ii) unless exempted under Subsection (2).
             439          (b) The franchisor shall give effect to the change in a franchise agreement pursuant to
             440      Subsection (1)(a) for the:
             441          (i) sale of a dealership;
             442          (ii) contract for sale of a dealership;
             443          (iii) transfer of ownership of a franchisee's dealership by sale, transfer of the business, or
             444      by stock transfer; or
             445          (iv) change in the executive management of the franchisee's dealership.
             446          (2) A franchisor is exempted from the requirements of Subsection (1) if:
             447          (a) the transferee is denied, or would be denied, a new powersport vehicle franchisee's
             448      registration pursuant to Section 13-34-105 ; or
             449          (b) the proposed sale or transfer of the business or change of executive management will
             450      be substantially detrimental to the distribution of the franchisor's new powersport vehicles or to
             451      competition in the relevant market area, provided that the franchisor has given written notice to
             452      the franchisee within 60 days following receipt by the franchisor of the following:
             453          (i) a copy of the proposed contract of sale or transfer executed by the franchisee and the
             454      proposed transferee;
             455          (ii) a completed copy of the franchisor's written application for approval of the change in
             456      ownership or executive management, if any, including the information customarily required by the
             457      franchisor; and
             458          (iii) (A) a written description of the business experience of the executive management of
             459      the transferee in the case of a proposed sale or transfer of the franchisee's business; or
             460          (B) a written description of the business experience of the person involved in the proposed
             461      change of the franchisee's executive management in the case of a proposed change of executive

             462      management.
             463          (3) For purposes of this section, the refusal by the franchisor to accept a proposed
             464      transferee who is of good moral character and who otherwise meets the written, reasonable, and
             465      uniformly applied standards or qualifications, if any, of the franchisor relating to the business
             466      experience of executive management and financial capacity to operate and maintain the dealership
             467      required by the franchisor of its franchisees is presumed to be unreasonable and undertaken
             468      without good cause.
             469          (4) (a) If after receipt of the written notice from the franchisor described in Subsection (1)
             470      the franchisee objects to the franchisor's refusal to accept the proposed sale or transfer of the
             471      business or change of executive management, the franchisee may file an application for a hearing
             472      before the board up to 60 days from the date of receipt of the notice.
             473          (b) After a hearing, the board shall determine, and enter an order providing that:
             474          (i) the proposed transferee or change in executive management shall be approved or may
             475      not be approved for specified reasons; or
             476          (ii) a proposed transferee or change in executive management is approved if specific
             477      conditions are timely satisfied.
             478          (c) The franchisee shall have the burden of proof with respect to all issues raised by the
             479      franchisee's application for a hearing as provided in this section. During the pendency of the
             480      hearing, the franchise agreement shall continue in effect in accordance with its terms.
             481          (d) The board shall expedite, upon written request, any determination sought under this
             482      section.
             483          Section 10. Section 13-34-203 is enacted to read:
             484          13-34-203. Succession to franchise.
             485          (1) (a) A successor, including a family member of a deceased or incapacitated franchisee,
             486      who is designated by the franchisee may succeed the franchisee in the ownership and operation of
             487      the dealership under the existing franchise agreement if:
             488          (i) the designated successor gives the franchisor written notice of an intent to succeed to
             489      the rights of the deceased or incapacitated franchisee in the franchise agreement within 180 days
             490      after the franchisee's death or incapacity;
             491          (ii) the designated successor agrees to be bound by all of the terms and conditions of the
             492      franchise agreement; and

             493          (iii) the designated successor meets the criteria generally applied by the franchisor in
             494      qualifying franchisees.
             495          (b) A franchisor may refuse to honor the existing franchise agreement with the designated
             496      successor only for good cause.
             497          (2) The franchisor may request in writing from a designated successor the personal and
             498      financial data that is reasonably necessary to determine whether the existing franchise agreement
             499      should be honored. The designated successor shall supply the personal and financial data promptly
             500      upon the request.
             501          (3) (a) If a franchisor believes that good cause exists for refusing to honor the requested
             502      succession, the franchisor shall serve upon the designated successor notice of its refusal to approve
             503      the succession, within 60 days after the later of:
             504          (i) receipt of the notice of the designated successor's intent to succeed the franchisee in the
             505      ownership and operation of the dealership; or
             506          (ii) the receipt of the requested personal and financial data.
             507          (b) Failure to serve the notice pursuant to Subsection (3)(a) is considered approval of the
             508      designated successor and the franchise agreement is considered amended to reflect the approval
             509      of the succession the day following the last day the franchisor can serve notice under Subsection
             510      (3)(a).
             511          (4) The notice of the franchisor provided in Subsection (3) shall state the specific grounds
             512      for the refusal to approve the succession and that discontinuance of the franchise agreement shall
             513      take effect not less than 180 days after the date the notice of refusal is served unless the proposed
             514      successor files an application for hearing under Subsection (6).
             515          (5) (a) This section does not prevent a franchisee from designating a person as the
             516      successor by written instrument filed with the franchisor.
             517          (b) If a franchisee files an instrument under Subsection (5)(a), the instrument governs the
             518      succession rights to the management and operation of the dealership subject to the designated
             519      successor satisfying the franchisor's qualification requirements as described in this section.
             520          (6) (a) If a franchisor serves a notice of refusal to a designated successor pursuant to
             521      Subsection (3), the designated successor may, within the 180-day period provided in Subsection
             522      (4), file with the board an application for a hearing to determine whether or not good cause exists
             523      for the refusal.

             524          (b) If application for a hearing is timely filed, the franchisor shall continue to honor the
             525      franchise agreement until after:
             526          (i) the requested hearing has been concluded;
             527          (ii) a decision is rendered by the board; and
             528          (iii) the applicable appeal period has expired following a decision by the board.
             529          Section 11. Section 13-34-204 is enacted to read:
             530          13-34-204. Franchisor's obligations related to service -- Franchisor audits -- Time
             531      limits.
             532          (1) Each franchisor shall specify in writing to each of its franchisees licensed as a new
             533      powersport vehicle dealer in this state:
             534          (a) the franchisee's obligations for new powersport vehicle preparation, delivery, and
             535      warranty service on its products;
             536          (b) the schedule of compensation to be paid to the franchisee for parts, work, and service;
             537      and
             538          (c) the time allowance for the performance of work and service.
             539          (2) (a) The schedule of compensation described in Subsection (1) shall include reasonable
             540      compensation for diagnostic work, as well as repair service, parts, and labor.
             541          (b) Time allowances described in Subsection (1) for the diagnosis and performance of
             542      warranty work and service shall be reasonable and adequate for the work to be performed.
             543          (3) (a) In the determination of what constitutes reasonable compensation under this
             544      section, the principal factor to be considered is the prevailing wage rates being paid by franchisees
             545      in the relevant market area in which the franchisee is doing business.
             546          (b) Compensation of the franchisee for warranty service work may not be less than the
             547      amount charged by the franchisee for like parts and service to retail or fleet customers, if the
             548      amounts are reasonable. For purposes of this Subsection (3)(b), the term "cost" shall be that same
             549      price paid by a franchisee to a franchisor or supplier for the part when the part is purchased for a
             550      nonwarranty repair.
             551          (4) A franchisor may not fail to:
             552          (a) perform any warranty obligation;
             553          (b) include in written notices of franchisor's recalls to new powersport vehicle owners and
             554      franchisees the expected date by which necessary parts and equipment will be available to

             555      franchisees for the correction of the defects; or
             556          (c) compensate any of the franchisees for repairs effected by the recall.
             557          (5) If a franchisor disallows a franchisee's claim for a defective part, alleging that the part
             558      is not defective, the franchisor at its option shall:
             559          (a) return the part to the franchisee at the franchisor's expense; or
             560          (b) pay the franchisee the cost of the part.
             561          (6) (a) A claim made by a franchisee pursuant to this section for labor and parts shall be
             562      paid within 30 days after its approval.
             563          (b) A claim shall be either approved or disapproved by the franchisor within 30 days after
             564      receipt of the claim on a form generally used by the franchisor and containing the generally
             565      required information. Any claim not specifically disapproved of in writing within 30 days after
             566      the receipt of the form is considered to be approved, and payment shall be made within 30 days.
             567          (7) Warranty service audits of franchisee records may be conducted by the franchisor on
             568      a reasonable basis.
             569          (8) A franchisee's claim for warranty compensation may not be denied except for good
             570      cause such as performance of nonwarranty repairs, lack of material documentation, fraud, or
             571      misrepresentation.
             572          (9) (a) Any charge backs for warranty parts or service compensation and service incentives
             573      shall only be enforceable for the 12-month period immediately following the date the payment for
             574      warranty reimbursement was made by the franchisor.
             575          (b) Except as provided in Subsection (9)(c), all charge backs levied by a franchisor for
             576      sales compensation or sales incentives arising out of the sale or lease of a powersport vehicle sold
             577      by a franchisee shall be compensable only if written notice of the charge back is received by the
             578      franchisee within 24 months immediately following the date when payment for the sales
             579      compensation was made by the franchisor.
             580          (c) The time limitations of this Subsection (9) do not preclude charge backs for any
             581      fraudulent claim that was previously paid.
             582          Section 12. Section 13-34-205 is enacted to read:
             583          13-34-205. Liability for damages to motor vehicles in transit -- Disclosure required.
             584          (1) (a) A franchisee is solely liable for damage to a new powersport vehicle after delivery
             585      by and acceptance from the carrier.

             586          (b) A delivery receipt or bill of lading, or similar document, signed by a franchisee is
             587      evidence of a franchisee's acceptance of a new powersport vehicle.
             588          (2) A franchisor is liable for all damage to a powersport vehicle before delivery to and
             589      acceptance by the franchisee, including that time in which the vehicle is in the control of a carrier
             590      or transporter.
             591          (3) A franchisor shall disclose to the franchisee any repairs made prior to delivery, only
             592      if the cost of the repair exceeds 3% of the manufacturer's wholesale price, as measured by retail
             593      repair costs.
             594          (4) Notwithstanding Subsections (1), (2), and (3), the franchisee is liable for damage to
             595      a new powersport vehicle after delivery to the carrier or transporter if the franchisee selected:
             596          (a) the method and mode of transportation; and
             597          (b) the carrier or transporter.
             598          Section 13. Section 13-34-301 is enacted to read:
Part 3. Restrictions on Termination, Relocation, and Establishment of Franchises

             600          13-34-301. Termination or noncontinuance of franchise.
             601          (1) Except as provided in Subsection (2), a franchisor may not terminate or refuse to
             602      continue a franchise agreement unless:
             603          (a) the franchisee has received written notice from the franchisor 60 days before the
             604      effective date of termination or noncontinuance setting forth the specific grounds for termination
             605      or noncontinuance that are relied on by the franchisor as establishing good cause for the
             606      termination or noncontinuance;
             607          (b) the franchisor has good cause for termination or noncontinuance; and
             608          (c) the franchisor is willing and able to comply with Section 13-34-105 .
             609          (2) A franchisor may terminate a franchise, without complying with Subsection (1) if:
             610          (a) for a particular line-make the franchisor or manufacturer discontinues that line-make;
             611          (b) the franchisee's registration as a new powersport vehicle dealer is revoked under
             612      Section 13-34-105 ; or
             613          (c) upon a mutual written agreement of the franchisor and franchisee.
             614          (3) (a) At any time before the effective date of termination or noncontinuance of the
             615      franchise, the franchisee may apply to the board for a hearing on the merits, and following notice
             616      to all parties concerned, the hearing shall be promptly held as provided in Section 13-34-304 .

             617          (b) A termination or noncontinuance subject to a hearing under Subsection (3)(a) may not
             618      become effective until final determination of the issue by the board and the applicable appeal
             619      period has lapsed.
             620          Section 14. Section 13-34-302 is enacted to read:
             621          13-34-302. Issuance of additional franchises -- Relocation of existing franchisees.
             622          (1) (a) Except as provided in Subsection (2), a franchisor shall comply with Subsection
             623      (1)(b) if the franchisor seeks to:
             624          (i) enter into a franchise establishing a powersport vehicle dealership within a relevant
             625      market area where the same line-make is represented by another franchisee; or
             626          (ii) relocate an existing powersport vehicle dealership.
             627          (b) (i) If a franchisor seeks to take an action listed in Subsection (1)(a), prior to taking the
             628      action, the franchisor shall in writing notify the board and each franchisee in that line-make in the
             629      relevant market area that the franchisor intends to take an action described in Subsection (1)(a).
             630          (ii) The notice required by Subsection (1)(b)(i) shall:
             631          (A) specify the good cause on which it intends to rely for the action; and
             632          (B) be delivered by registered or certified mail or by any form of reliable electronic
             633      communication through which receipt is verifiable.
             634          (c) Within 45 days of receiving notice required by Subsection (1)(b), any franchisee that
             635      is required to receive notice under Subsection (1)(b) may protest to the board the establishing or
             636      relocating of the dealership. When a protest is filed, the board shall inform the franchisor that:
             637          (i) a timely protest has been filed;
             638          (ii) a hearing is required;
             639          (iii) the franchisor may not establish or relocate the proposed dealership until the board
             640      has held a hearing; and
             641          (iv) the franchisor may not establish or relocate a proposed dealership if the board
             642      determines that there is not good cause for permitting the establishment or relocation of the
             643      dealership.
             644          (d) If multiple protests are filed under Subsection (1)(c), hearings may be consolidated to
             645      expedite the disposition of the issue.
             646          (2) Subsection (1) does not apply to a relocation that is:
             647          (a) less than one mile from the existing location of the franchisee's dealership; and

             648          (b) within the same county.
             649          (3) For purposes of this section:
             650          (a) relocation of an existing franchisee's dealership in excess of one mile from its existing
             651      location is considered the establishment of an additional franchise in the line-make of the
             652      relocating franchise; and
             653          (b) the reopening in a relevant market area of a dealership that has not been in operation
             654      for one year or more is considered the establishment of an additional powersport vehicle
             655      dealership.
             656          Section 15. Section 13-34-303 is enacted to read:
             657          13-34-303. Effect of terminating a franchise.
             658          If under Section 13-34-301 the board permits a franchisor to terminate or not continue a
             659      franchise and prohibits the franchisor from entering into a franchise for the sale of new powersport
             660      vehicles of a line-make in a relevant market area, the franchisor may not enter into a franchise for
             661      the sale of new powersport vehicles of that line-make in the specified relevant market area unless
             662      the franchisor first establishes in a hearing before the board that there has been a change of
             663      circumstances so that the relevant market area at the time of the establishment of the new franchise
             664      agreement can reasonably be expected to support the new franchisee.
             665          Section 16. Section 13-34-304 is enacted to read:
             666          13-34-304. Hearing regarding termination, relocation, or establishment of franchises.
             667          (1) (a) Within ten days of receiving an application from a franchisee under Subsection
             668      13-34-301 (3) challenging its franchisor's right to terminate or not continue a franchise, or an
             669      application under Subsection 13-34-302 (1) challenging the establishment or relocation of a
             670      franchise, the board shall:
             671          (i) enter an order designating the time and place for the hearing; and
             672          (ii) send a copy of the order by certified or registered mail, with return receipt requested,
             673      or by any form of reliable electronic communication through which receipt is verifiable to:
             674          (A) the applicant;
             675          (B) the franchisor; and
             676          (C) if the application involves the establishment of a new franchise or the relocation of an
             677      existing dealership, to all franchisees in the relevant market area engaged in the business of
             678      offering to sell or lease the same line-make.

             679          (b) A copy of an order mailed under Subsection (1)(a) shall be addressed to the franchisee
             680      at the place where the franchisee's business is conducted.
             681          (2) Any person who can establish to the board an interest in the application may intervene
             682      as a party to the hearing, whether or not that person receives notice.
             683          (3) Any person may appear and testify on the question of the public interest in the
             684      termination or noncontinuation of a franchise or in the establishment of an additional franchise.
             685          (4) (a) Any hearing ordered under Subsection (1) shall be conducted no later than 120 days
             686      after the application for hearing is filed. A final decision on the challenge shall be made by the
             687      board no later than 30 days after the hearing.
             688          (b) Failure to comply with the time requirements of Subsection (4)(a) is considered a
             689      determination that the franchisor acted with good cause or, in the case of a protest of a proposed
             690      establishment or relocation of a dealer, that good cause exists for permitting the proposed
             691      additional or relocated new motor vehicle dealer, unless:
             692          (i) the delay is caused by acts of the franchisor or the additional or relocating franchisee;
             693      or
             694          (ii) the delay is waived by the parties.
             695          (5) The franchisor has the burden of proof to establish that under the provisions of this
             696      chapter it should be granted permission to:
             697          (a) terminate or not continue the franchise;
             698          (b) enter into a franchise agreement establishing an additional franchise; or
             699          (c) relocate the dealership of an existing franchisee.
             700          Section 17. Section 13-34-305 is enacted to read:
             701          13-34-305. Evidence to be considered in determining cause to terminate or
             702      discontinue.
             703          (1) In determining whether a franchisor has established good cause for terminating or not
             704      continuing a franchise agreement, the board shall consider:
             705          (a) the amount of business transacted by the franchisee, as compared to business available
             706      to the franchisee;
             707          (b) the investment necessarily made and obligations incurred by the franchisee in the
             708      performance of the franchisee's part of the franchise agreement;
             709          (c) the permanency of the investment;

             710          (d) whether it is injurious or beneficial to the public welfare or public interest for the
             711      business of the franchisee to be disrupted;
             712          (e) whether the franchisee has adequate powersport vehicle sales and service facilities,
             713      equipment, vehicle parts, and qualified service personnel to reasonably provide for the needs of
             714      the consumer for the new powersport vehicles handled by the franchisee and has been and is
             715      rendering adequate services to the public;
             716          (f) whether the franchisee refuses to honor warranties of the franchisor under which the
             717      warranty service work is to be performed pursuant to the franchise agreement, if the franchisor
             718      reimburses the franchisee for the warranty service work;
             719          (g) failure by the franchisee to substantially comply with those requirements of the
             720      franchise agreement that are determined by the board to be reasonable and material and not in
             721      violation of this chapter;
             722          (h) evidence of bad faith by the franchisee in complying with those terms of the franchise
             723      agreement that are determined by the board to be reasonable and material and not in violation of
             724      this chapter;
             725          (i) prior misrepresentation by the franchisee in applying for the franchise;
             726          (j) transfer of any ownership or interest in the franchise without first obtaining approval
             727      from the franchisor or the board; and
             728          (k) any other factor the board considers relevant.
             729          (2) Notwithstanding any franchise agreement, the following do not constitute good cause,
             730      as used in this chapter for the termination or noncontinuation of a franchise:
             731          (a) the sole fact that the franchisor desires greater market penetration or more sales or
             732      leases of new powersport vehicles;
             733          (b) the change of ownership of the franchisee's dealership or the change of executive
             734      management of the franchisee's dealership unless the franchisor proves that the change of
             735      ownership or executive management will be substantially detrimental to the distribution of the
             736      franchisor's powersport vehicles; or
             737          (c) the fact that the franchisee has justifiably refused or declined to participate in any
             738      conduct covered by Section 13-34-201 .
             739          (3) For purposes of Subsection (2), "substantially detrimental" includes the failure of any
             740      proposed transferee to meet the objective criteria applied by the franchisor in qualifying

             741      franchisees at the time of application.
             742          Section 18. Section 13-34-306 is enacted to read:
             743          13-34-306. Evidence to be considered in determining cause to relocate or establish
             744      a new franchised dealership.
             745          In determining whether a franchisor has established good cause for relocating an existing
             746      franchisee or establishing a new franchised dealership for the same line-make in a given relevant
             747      market area, the board shall consider:
             748          (1) the amount of business transacted by other franchisees of the same line-make in that
             749      relevant market area, as compared to business available to the franchisees;
             750          (2) the investment necessarily made and obligations incurred by other franchisees of the
             751      same line-make in that relevant market area in the performance of their part of their franchisee
             752      agreements;
             753          (3) the permanency of the existing and proposed investment;
             754          (4) whether it is injurious or beneficial to the public welfare or public interest for an
             755      additional franchise to be established; and
             756          (5) whether the franchisees of the same line-make in that relevant market area are
             757      providing adequate service to consumers for the powersport vehicles of the line-make, which shall
             758      include the adequacy of the powersport vehicle sale and service facilities, equipment, supply of
             759      vehicle parts, and qualified service personnel.
             760          Section 19. Section 13-34-307 is enacted to read:
             761          13-34-307. Franchisors' repurchase obligations upon termination or noncontinuation
             762      of franchise.
             763          (1) Upon the termination or noncontinuation of a franchise by the franchisor, the franchisor
             764      shall pay the franchisee:
             765          (a) the franchisee's cost of new, undamaged, and unsold powersport vehicles in the
             766      franchisee's inventory acquired from the franchisor or another franchisee of the same line-make
             767      representing both the current model year at the time of termination or noncontinuation and the
             768      immediately prior model year vehicles:
             769          (i) plus any charges made by the franchisor, for distribution, delivery, or taxes;
             770          (ii) plus the franchisee's cost of any accessories added on the vehicle shall be repurchased;
             771      and

             772          (iii) less all allowances paid or credited to the franchisee by the franchisor;
             773          (b) the cost of all new, undamaged, and unsold supplies, parts, and accessories as set forth
             774      in the franchisor's catalog at the time of termination or noncontinuation for the supplies, parts, and
             775      accessories, less all allowances paid or credited to the franchisee by the franchisor;
             776          (c) the fair market value, but not less than the franchisee's depreciated acquisition cost of
             777      each undamaged sign owned by the franchisee that bears a common name, trade name, or
             778      trademark of the franchisor if acquisition of the sign was recommended or required by the
             779      franchisor. If a franchisee has a sign with multiple manufacturers listed, the franchisor is only
             780      responsible for its pro rata portion of the sign;
             781          (d) the fair market value, but not less than the franchisee's depreciated acquisition cost of
             782      all special tools, equipment, and furnishings acquired from the franchisor or sources approved by
             783      the franchisor that were recommended or required by the franchisor and are in good and usable
             784      condition; and
             785          (e) the cost of transporting, handling, packing, and loading powersport vehicles, supplies,
             786      parts, accessories, signs, special tools, equipment, and furnishings.
             787          (2) The franchisor shall pay the franchisee the amounts specified in Subsection (1) within
             788      90 days after the tender of the property to the franchisor if the franchisee:
             789          (a) has clear title to the property; and
             790          (b) is in a position to convey title to the franchisor.
             791          (3) If repurchased inventory and equipment are subject to a security interest, the franchisor
             792      may make payment jointly to the franchisee and to the holder of the security interest.

Legislative Review Note
    as of 1-29-02 3:26 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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