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UTAH STATE SENATE
UTAH STATE CAPITOL COMPLEX * 320 STATE CAPITOL

P.O. BOX 145115 * SALT LAKE CITY, UTAH 84114-5115 * (801) 538-1035

February 17, 2012

Mr. President:

    The Transportation and Public Utilities and Technology Committee recommends S.B. 68, NEW AUTOMOBILE FRANCHISE ACT AMENDMENTS, by Senator S. Jenkins, be replaced and favorably recommends 1st Sub. S.B. 68, NEW AUTOMOBILE FRANCHISE ACT AMENDMENTS with the following amendments:

1.    Page 13, Line 390 :    

             390      incentive, or program that is offered to but declined

  or not accepted       by a franchisee, even if a similar payment


2.    Page 14, Lines 402 through 410 :    

             402          (14)
  (a)       Subsection (1)(pp)(i) does not apply to:

             403          
{   (a)   }        (i)       signage purchased by a franchisee in which the franchisor has an intellectual

             404      property right; or
             405          
{   (b)   }        (ii)       a good used in a facility construction, alteration, or remodel that is:

             406          
{   (i)   }        (A)       a moveable interior display that contains material subject to a franchisor's

             407      intellectual property right; or
             408          
{   (ii)   }        (B)       specifically eligible for reimbursement of over one-half its cost pursuant to a

             409
     franchisor or distributor program or incentive granted to the franchisee on reasonable, written
             410      terms.
    
  (b) Subsection (1)(pp)(ii) may not be construed to allow a franchisee to:

    (i) impair or eliminate a franchisor's intellectual property right; or
    (ii) erect or maintain a sign that does not conform to the franchisor's reasonable fabrication specifications and intellectual property usage guidelines.  


        Respectfully,

        Kevin T. Van Tassell
        Committee Chair

Voting: 5-0-0
7 SB0068.SC1.wpd lelder/LGE RHR/RCN 2/17/12 4:10 pm