H.B. 54
1
2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill amends Title 13, Chapter 14, New Automobile Franchise Act.
10 Highlighted Provisions:
11 This bill:
12 . exempts a franchisor from certain notice and adjudicative requirements relating to
13 the establishment of a new dealership or the relocation of an existing dealership if
14 the new dealership or the relocated dealership will be located in a city of the first
15 class.
16 Money Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 AMENDS:
22 13-14-302 , as last amended by Laws of Utah 2011, Chapter 203
23
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 13-14-302 is amended to read:
26 13-14-302. Issuance of additional franchises -- Relocation of existing franchisees.
27 (1) Except as provided in Subsection (6), a franchisor shall provide the notice and
28 documentation required under Subsection (2) if the franchisor seeks to:
29 (a) enter into a franchise agreement establishing a motor vehicle dealership within a
30 relevant market area where the same line-make is represented by another franchisee; or
31 (b) relocate an existing motor vehicle franchisee.
32 (2) (a) If a franchisor seeks to take an action listed Subsection (1), prior to taking the
33 action, the franchisor shall, in writing, notify the advisory board and each franchisee in that
34 line-make in the relevant market area.
35 (b) The notice required by Subsection (2)(a) shall:
36 (i) specify the intended action described under Subsection (1);
37 (ii) specify the good cause on which it intends to rely for the action; and
38 (iii) be delivered by registered or certified mail or by any form of reliable delivery
39 through which receipt is verifiable.
40 (3) (a) Except as provided in Subsection (3)(c), the franchisor shall provide to the
41 advisory board and each franchisee in that line-make in the relevant market area the following
42 documents relating to the notice described under Subsection (2):
43 (i) (A) any aggregate economic data and all existing reports, analyses, or opinions
44 based on the aggregate economic data that were relied on by the franchisor in reaching the
45 decision to proceed with the action described in the notice; and
46 (B) the aggregate economic data under Subsection (3)(a)(i)(A) includes:
47 (I) motor vehicle registration data;
48 (II) market penetration data; and
49 (III) demographic data;
50 (ii) written documentation that the franchisor has in its possession that it intends to rely
51 on in establishing good cause under Section 13-14-306 relating to the notice;
52 (iii) a statement that describes in reasonable detail how the establishment of a new
53 franchisee or the relocation of an existing franchisee will affect the amount of business
54 transacted by other franchisees of the same line-make in the relevant market area, as compared
55 to business available to the franchisees; and
56 (iv) a statement that describes in reasonable detail how the establishment of a new
57 franchisee or the relocation of an existing franchisee will be beneficial or injurious to the
58 public welfare or public interest.
59 (b) The franchisor shall provide the documents described under Subsection (3)(a) with
60 the notice required under Subsection (2).
61 (c) The franchisor is not required to disclose any documents under Subsection (3)(a) if:
62 (i) the documents would be privileged under the Utah Rules of Evidence;
63 (ii) the documents contain confidential proprietary information;
64 (iii) the documents are subject to federal or state privacy laws;
65 (iv) the documents are correspondence between the franchisor and existing franchisees
66 in that line-make in the relevant market area; or
67 (v) the franchisor reasonably believes that disclosure of the documents would violate:
68 (A) the privacy of another franchisee; or
69 (B) Section 13-14-201 .
70 (4) (a) Within 45 days of receiving notice required by Subsection (2), any franchisee
71 that is required to receive notice under Subsection (2) may protest to the advisory board the
72 establishment or relocation of the dealership.
73 (b) When a protest is filed, the department shall inform the franchisor that:
74 (i) a timely protest has been filed;
75 (ii) a hearing is required;
76 (iii) the franchisor may not establish or relocate the proposed dealership until the
77 advisory board has held a hearing; and
78 (iv) the franchisor may not establish or relocate a proposed dealership if the executive
79 director determines that there is not good cause for permitting the establishment or relocation
80 of the dealership.
81 (5) If multiple protests are filed under Subsection (4), hearings may be consolidated to
82 expedite the disposition of the issue.
83 (6) Subsections (1) through (5) do not apply to a relocation of an existing or successor
84 dealer to a location that is:
85 (a) within the same county and less than two aeronautical miles from the existing
86 location of the existing or successor franchisee's dealership; or
87 (b) further away from a dealership of a franchisee of the same line-make.
88 (7) For purposes of this section:
89 (a) relocation of an existing franchisee's dealership in excess of two aeronautical miles
90 from its existing location is considered the establishment of an additional franchise in the
91 line-make of the relocating franchise;
92 (b) the reopening in a relevant market area of a dealership that has not been in
93 operation for one year or more is considered the establishment of an additional motor vehicle
94 dealership; and
95 (c) (i) except as provided in Subsection (7)(c)(ii), the establishment of a temporary
96 additional place of business by a recreational vehicle franchisee is considered the establishment
97 of an additional motor vehicle dealership; and
98 (ii) the establishment of a temporary additional place of business by a recreational
99 vehicle franchisee is not considered the establishment of an additional motor vehicle dealership
100 if the recreational vehicle franchisee is participating in a trade show where three or more
101 recreational vehicle dealers are participating.
102 (8) The provisions of this section do not apply if the new dealership or the relocated
103 dealership will be located in a city of the first class, as defined in Section 10-2-301.
Legislative Review Note
as of 1-6-14 10:28 AM