Full Text of SB1417 96th General Assembly
SB1417ham001 96TH GENERAL ASSEMBLY
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Judiciary I - Civil Law Committee
Filed: 4/29/2009
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| AMENDMENT TO SENATE BILL 1417
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| AMENDMENT NO. ______. Amend Senate Bill 1417 as follows:
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| on page 1, line 5, after "and 9", by inserting "and by adding | 4 |
| Section 9.5"; and | 5 |
| on page 14, line 8, after " thereof; ", by inserting the | 6 |
| following: | 7 |
| " provided, however, that, in light of all existing | 8 |
| circumstances, (i) the motor vehicle dealer maintains a | 9 |
| reasonable line of credit for each make or line of new | 10 |
| motor vehicle, (ii) the new motor vehicle dealer remains in | 11 |
| compliance with any reasonable facilities requirements of | 12 |
| the manufacturer, (iii) no change is made in the principal | 13 |
| management of the new motor vehicle dealer, and (iv) the | 14 |
| addition of the make or line of new motor vehicles would be | 15 |
| reasonable. The reasonable facilities requirement set | 16 |
| forth in item (ii) of subsection (d)(8) shall not include |
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| any requirement that a franchisee establish or maintain | 2 |
| exclusive facilities, personnel, or display space. Any | 3 |
| decision by a motor vehicle dealer to sell additional makes | 4 |
| or lines at the motor vehicle dealer's facility shall be | 5 |
| presumed to be reasonable, and the manufacturer shall have | 6 |
| the burden to overcome that presumption. A motor vehicle | 7 |
| dealer must provide a written notification of its intent to | 8 |
| add a make or line of new motor vehicles to the | 9 |
| manufacturer. If the manufacturer does not respond to the | 10 |
| motor vehicle dealer, in writing, objecting to the addition | 11 |
| of the make or line within 60 days after the date that the | 12 |
| motor vehicle dealer sends the written notification, then | 13 |
| the manufacturer shall be deemed to have approved the | 14 |
| addition of the make or line; "; and | 15 |
| on page 32 by replacing lines 19 through 20 with " 18 months | 16 |
| after the date the claim was paid or credit issued by the | 17 |
| manufacturer or franchiser of the transactions that are
subject | 18 |
| to audit by the franchiser ."; and | 19 |
| on page 40, by replacing lines 13 through 16 with the | 20 |
| following: | 21 |
| " (2) The franchisee's cost of each new undamaged and | 22 |
| unsold current and prior year motor vehicles that were | 23 |
| acquired within 12 months of termination and have 500 or | 24 |
| fewer miles recorded on the odometer that are in the |
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| franchisee's inventory at the time of nonrenewal, | 2 |
| termination, or restriction and that were purchased or | 3 |
| acquired from the manufacturer or from another dealer of | 4 |
| the same line make in the ordinary course of business. "; | 5 |
| and | 6 |
| on page 41, line 10, by replacing " at the request " with " as a | 7 |
| requirement "; and | 8 |
| on page 41, by inserting immediately below line 25 the | 9 |
| following: | 10 |
| " This subsection (b) shall not apply to a non-renewal or | 11 |
| termination that is implemented as a result of a sale of the | 12 |
| assets or stock of the franchise. "; and | 13 |
| on page 42, by replacing lines 2 through 4 with the following: | 14 |
| " terminated or nonrenewed. The payments under items (b)(2) | 15 |
| through (b)(6) are "; and | 16 |
| on page 42, by replacing lines 13 through 18 with the | 17 |
| following: | 18 |
| " subsection (c), and the Board or, if agreed to under Section | 19 |
| 12, the arbitrator, finds the manufacturer, distributor, or | 20 |
| wholesaler in violation of this subsection, then the | 21 |
| manufacturer, distributor, or wholesaler shall, in addition to | 22 |
| any other amounts due, pay the motor vehicle dealer: |
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| (1) interest on the amount due at a rate reasonable in | 2 |
| light of commercial practices, determined by the Board or | 3 |
| arbitrator; and | 4 |
| (2) reasonable attorney's fees and costs. "; and | 5 |
| on page 42, after line 20, by inserting the following: | 6 |
| "(815 ILCS 710/9.5 new)
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| Sec. 9.5. Termination with good cause. | 8 |
| (a) Anything to the contrary notwithstanding, if a | 9 |
| manufacturer, wholesaler, distributor, or franchiser, with | 10 |
| good cause, (i) fails to renew a franchise on terms then | 11 |
| equally available to all of its motor vehicle dealers, (ii) | 12 |
| terminates a franchise, or (iii) restricts the transfer of a | 13 |
| franchise, the manufacturer, wholesaler, distributor or | 14 |
| franchiser shall pay to the franchisee all of the following, | 15 |
| including, but not limited to: | 16 |
| (1) Upon termination, cancellation, or nonrenewal of a | 17 |
| line make or upon termination, cancellation, or nonrenewal | 18 |
| due to a dealer's poor sales and service performance | 19 |
| pursuant to notice provided under Section 4(d)(6) , an | 20 |
| amount equal to the current, fair rental value of the | 21 |
| portion of the motor vehicle dealer's established place of | 22 |
| business that is used for motor vehicle sales and service | 23 |
| with the manufacturer, wholesaler, distributor or | 24 |
| franchiser for a period of one year beginning on the date |
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| of the nonrenewal, termination, or restriction on the | 2 |
| transfer of the franchise. | 3 |
| (2) The franchisee's cost of each new undamaged and | 4 |
| unsold current and prior model year motor vehicles that | 5 |
| were acquired within 12 months of termination and have 500 | 6 |
| or fewer miles recorded on the odometer in the franchisee's | 7 |
| inventory at the time of nonrenewal, termination, or | 8 |
| restriction and that were purchased or acquired from the | 9 |
| manufacturer or from another motor vehicle dealer of the | 10 |
| same line make in the ordinary course of business. | 11 |
| (3) The franchisee's cost of each new, unused, | 12 |
| undamaged, and unsold part or accessory that is in the | 13 |
| current parts catalogue or is identical to a part or | 14 |
| accessory in the current parts catalogue except for a | 15 |
| number assigned to the part or accessory due to a change in | 16 |
| the number after the purchase of the part or accessory and | 17 |
| that is still in the original, resalable merchandising | 18 |
| package and in an unbroken lot, except that, in the case of | 19 |
| sheet metal, a comparable substitute for the original | 20 |
| package may be used if the part or accessory was purchased | 21 |
| (i) directly from the manufacturer, distributor, | 22 |
| wholesaler, distributor branch or division, or officer, | 23 |
| agent, or other representative thereof or (ii) from an | 24 |
| outgoing authorized dealer as a part of the dealer's | 25 |
| initial inventory. | 26 |
| (4) The fair market value of each undamaged sign owned |
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| by the dealer that bears a trademark or trade name used or | 2 |
| claimed by the manufacturer, distributor, wholesaler, | 3 |
| distributor branch, or division, or officer, agent, or | 4 |
| other representative thereof that was purchased as a | 5 |
| requirement of the manufacturer, distributor, wholesaler, | 6 |
| distributor branch, or division, or officer, agent, or | 7 |
| other representative thereof. | 8 |
| (5) The fair market value of all special tools, data | 9 |
| processing equipment, and automotive service equipment | 10 |
| owned by the dealer that (i) were recommended in writing | 11 |
| and designated as special tools and equipment, (ii) were | 12 |
| purchased at the request of the manufacturer, distributor, | 13 |
| wholesaler, distributor branch or division, or officer, | 14 |
| agent, or other representative thereof, and (iii) are in | 15 |
| usable and good condition except for reasonable wear and | 16 |
| tear. | 17 |
| (b) The payment under item (a)(1) is due in 12 equal, | 18 |
| monthly installments, beginning 30 days after the franchise is | 19 |
| terminated or nonrenewed. The payments under items (a)(2) | 20 |
| through (a)(5) are due no later than 90 days after the | 21 |
| franchise is terminated or nonrenewed. As a condition of | 22 |
| payment under items (a)(2) through (a)(5) the motor vehicle | 23 |
| dealer must comply with all reasonable requirements provided by | 24 |
| the manufacturer, distributor, or wholesaler regarding the | 25 |
| return of inventory. | 26 |
| If a manufacturer, distributor, or wholesaler does not |
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| reimburse the motor vehicle dealer for the amounts required | 2 |
| under items (a)(2) through (a)(6) by the deadlines under this | 3 |
| subsection (b), then the manufacturer, distributor, or | 4 |
| wholesaler shall, in addition to any amounts due, pay the motor | 5 |
| vehicle dealer: | 6 |
| (1) interest on the amount due at a rate reasonable in | 7 |
| light of commercial practices, determined by the Board or | 8 |
| arbitrator; and | 9 |
| (2)reasonable attorney's fees and costs. | 10 |
| (c) This Section does not apply to a termination or | 11 |
| nonrenewal that is implemented as a result of the sale of the | 12 |
| assets or stock of the franchise. ".
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