SCS/SB 157 - This act, known as the Motor Vehicle Franchise Practices Act, obligates motor vehicle franchisors to deal fairly with franchisees. This act is similar to SS/SB 838 as perfected in 1996.

407.822 - PROCEDURAL PROVISIONS: A party seeking relief for a violation under Section 407.825, RSMo, may file notice with the Administrative Hearing Commission (AHC). Any final decision by the AHC is subject to judicial review.

The AHC will determine if the franchisor had good cause to engage in an act that has been alleged unlawful. The franchisor has the burden of showing, by a preponderance of evidence, that good cause exists for its actions when the following acts are at issue: 1) terminating or cancelling a franchise; 2) preventing a franchisee from changing the capital structure of his franchise; 3) preventing a franchisee from selling or transferring interest in the franchise; or 4) refusing to allow a franchise to pass by succession to a legal heir of the franchisee. For all other acts, the franchisee has the burden of showing that the franchisor failed to act with good cause.

407.825 - ADDITIONAL PRACTICES BY FRANCHISORS CONSIDERED UNLAWFUL: In addition to the current list of unlawful franchisor practices, these new unlawful practices are added: a) failure to pay reasonable compensation to a franchisee when franchise is terminated; b) failure to honor a transfer of a franchise through succession; c) coercing a franchisee, through force or intimidation, to forego any right under this act; d) initiating an unlawful act based upon a prior agreement. For an act to terminate a franchise or prevent transfer of a franchise, the Administrative Hearing Commission shall consider numerous factors to determine if a franchisor acted in good faith.

Recreational motor vehicle franchisors and franchisees are exempt from part a) of this section.

407.827 - ESTABLISHMENT OR RELOCATION OF DEALERSHIPS IN ST. LOUIS CITY: When a dealership is established or relocates in St. Louis, the dealer or manufacturer shall attempt in good faith to relocate to an area which is accessible to minorities and which improves the distribution of dealerships within the city.

407.829 - MISSOURI MOTOR VEHICLE COMMISSION TO CONSIDER RACE IN APPROVING NEW FRANCHISES IN LARGE METRO AREAS: The Motor Vehicle Commission shall ensure that a certain percentage of motor dealer franchises in any metropolitan area of one million or greater (Kansas City and St. Louis) are owned by minorities.

407.832 - NO FRANCHISEE SHALL USE FALSE OR DECEPTIVE ADVERTISING

407.835 - ACTIONS FOR DAMAGES: A franchisee may, in addition to administrative remedies set out in Section 407.822, bring an action against a franchisor to recover any damages incurred by such franchisor's unlawful practice.

621.053 - ADMINISTRATIVE REMEDIES: Any person may file a protest with the Administrative Hearing Commission pursuant to a franchise agreement.

JAMES KLAHR