HB 516 -- FRANCHISE PRACTICES

This bill revises the Motor Vehicle Franchise Practices Act.  It
contains language dealing with procedures for filing an
application with the Administrative Hearing Commission seeking
relief relating to a motor vehicle franchise, the commission's
order of a hearing, giving notice of hearing, and the issuance
of a final decision order.  Final decisions of the commission in
cases arising under the provisions of the bill are subject to
review in the court of appeals.  Review will be exclusive and
decisions of the commission reviewable under this bill will not
be reviewable in any other proceeding, and no other official or
court will have the power to review any such decision by an
action in the nature of mandamus or otherwise except pursuant to
the provisions of this bill.

The bill contains language dealing with the termination of any
franchise and good cause in terminating a franchise, preventing
the sale of a franchise, repurchase of new vehicles, parts,
signs, tools and special equipment, notice requirements for a
dealership family member to give to the manufacturer when
succession occurs, and coercing, threatening, intimidating or
requiring a franchisee under any condition affecting or related
to a franchise agreement or to waive, limit or disclaim any
right of the franchisee.

When a franchise dealer or manufacturer proposes to establish or
relocate within St. Louis City, the dealer or manufacturer must
make every reasonable effort to establish or relocate a
dealership in an area of the city that improves the equitable
distribution of dealerships and is conveniently located to serve
minorities who reside in the city.  The Motor Vehicle Commission
when approving licenses for dealer franchises in any
metropolitan statistical area with a population of more than one
million inhabitants will ensure that the community of dealer
franchises  reflects an adequate percentage of minority-owned
business.

No franchisee or franchisor can use false, deceptive, or
misleading advertising.

Any motorcycle franchisee may bring an action against a
franchisor for an act or omission which constitutes an unlawful
practice to recover damages.  Franchisees can be entitled to
injunctive relief, but the remedies set forth in this bill will
not be deemed exclusive and will be in addition to any remedies
permitted by law.  A person who engages in purposeful contracts
within the state of Missouri in connection with new motorcycle
sales will be subject to the jurisdiction of the courts of the
state of Missouri.

HB 516 -- FRANCHISE PRACTICES (Backer)

This bill revises the Motor Vehicle Franchise Practices Act.  It
contains language dealing with procedures for filing an
application with the Administrative Hearing Commission seeking
relief, the commission's order of a hearing, giving notice of
hearing, and the issuance of a final decision order.   Final
decisions of the commission in cases arising under the
provisions of the bill are subject to review in the court of
appeals.  Review will be exclusive and decisions of the
commission reviewable under this bill will not be reviewable in
any  other proceeding, and no other official or court will have
the power to review any such decision by an action in the nature
of mandamus or otherwise except pursuant to the provisions of
this bill.

Among other unlawful acts, the bill contains language dealing
with the termination of any franchise and good cause in
terminating a franchise, preventing the sale of a franchise,
repurchase of new vehicles, parts, signs, tools and special
equipment, notice requirements for a dealership family member to
give to the manufacturer when succession occurs, and coercing,
threatening, intimidating or requiring a franchisee under any
condition affecting or related to a franchise agreement or to
waive, limit or disclaim any right of the franchisee.

When a franchise dealer or manufacturer proposes to establish or
relocate within St. Louis City, the dealer or manufacturer must
make every reasonable effort to establish or relocate a
dealership in an area of the city that improves the equitable
distribution of dealerships and is conveniently located to serve
minorities who reside in the city.  The Motor Vehicle Commission
when approving licenses for dealer franchises in any
metropolitan statistical area with a population of more than one
million inhabitants will ensure that the community of dealer
franchises  reflect an adequate percentage of minority-owned
business.

No franchisee or franchisor can use false, deceptive, or
misleading advertising.

Any motorcycle franchisee may bring an action against a
franchisor for an act or omission which constitutes an unlawful
practice to recover damages.  Franchisees can be entitled to
injunctive relief, but the remedies set forth in this bill will
not be deemed exclusive and will be in addition to any remedies
permitted by law.  A person who engages in purposeful contracts
within the state of Missouri in connection with new motorcycle
sales will be subject to the jurisdiction of the courts of the
state of Missouri.

FISCAL NOTE:  No impact on state funds.

HB 516, HCA l -- MOTOR VEHICLE FRANCHISE PRACTICES

SPONSORS:  Sheldon (104), (Backer)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Motor
Vehicle and Traffic Regulation by a vote of 15 to 0.

This bill revises the Motor Vehicle Franchise Practices Act.  It
contains language dealing with procedures for filing an
application with the Administrative Hearing Commission seeking
relief, the commission's order of a hearing, giving notice of
hearing, and the issuance of a final decision order.   Final
decisions of the commission in cases arising under the
provisions of the bill are subject to review in the court of
appeals.  Review will be exclusive and decisions of the
commission reviewable under this bill will not be reviewable in
any  other proceeding, and no other official or court will have
the power to review any such decision by an action in the nature
of mandamus or otherwise except pursuant to the provisions of
this bill.

Among other unlawful acts, the bill contains language dealing
with the termination of any franchise and good cause in
terminating a franchise, preventing the sale of a franchise,
repurchase of new vehicles, parts, signs, tools and special
equipment, notice requirements for a dealership family member to
give to the manufacturer when succession occurs, and coercing,
threatening, intimidating or requiring a franchisee under any
condition affecting or related to a franchise agreement or to
waive, limit or disclaim any right of the franchisee.

When a franchise dealer or manufacturer proposes to establish or
relocate within St. Louis City, the dealer or manufacturer must
make every reasonable effort to establish or relocate a
dealership in an area of the city that improves the equitable
distribution of dealerships and is conveniently located to serve
minorities who reside in the city.  The Motor Vehicle Commission
when approving licenses for dealer franchises in any
metropolitan statistical area with a population of more than one
million inhabitants will ensure that the community of dealer
franchises  reflect an adequate percentage of minority-owned
business.

No franchisee or franchisor can use false deceptive or
misleading advertising.

HCA 1 -- Excludes pull type recreation motor vehicles when
referring to motor vehicles and makes several clarifying changes.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this is compromise legislation
that irons out many of the grievances among interested parties
dealing with franchise practices.

Testifying for the bill were Representative Backer; Missouri
Auto Dealers Association; American Auto Manufactures
Association; Ford Motor Corporation; Chrysler Corporation;
Barber Merollis-Bishop, a St. Louis General Motors Dealer; and
General Motors Government Relations Division.

OPPONENTS:  There was no opposition voiced to the committee.

Robert Triplett, Research Analyst

HB 516 -- Motor Vehicle Franchise Practices

Co-Sponsors:  Backer, Sheldon

This bill revises the Motor Vehicle Franchise Practices Act.  It
contains language dealing with procedures for filing an
application with the Administrative Hearing Commission seeking
relief, the commission's order of a hearing, giving notice of
hearing, and the issuance of a final decision order.   Final
decisions of the commission in cases arising under the
provisions of the bill are subject to review in the court of
appeals.  Review will be exclusive and decisions of the
commission reviewable under this bill will not be reviewable in
any  other proceeding, and no other official or court will have
the power to review any such decision by an action in the nature
of mandamus or otherwise except pursuant to the provisions of
this bill.

Among other unlawful acts, the bill contains language dealing
with the termination of any franchise and good cause in
terminating a franchise, preventing the sale of a franchise,
compensation of a franchisee for inventory upon termination or
cancellation of any franchise, and coercing, threatening,
intimidating or requiring a franchisee under any condition
affecting or related to a franchise agreement or to waive, limit
or disclaim any right of the franchisee.

When a franchise dealer or manufacturer proposes to establish or
relocate within St. Louis City, the dealer or manufacturer must
make every reasonable effort to establish or relocate a
dealership in an area of the city that improves the equitable
distribution of dealerships and is conveniently located to serve
minorities who reside in the city.  The Motor Vehicle Commission
when approving licenses for dealer franchises in any
metropolitan statistical area with a population of more than one
million inhabitants will ensure that the community of dealer
franchises  reflect an adequate percentage of minority-owned
business.

No franchisee or franchisor can use false deceptive or
misleading advertising.