SENATE BILL NO. 421
INTRODUCED BY F. THOMAS, BECK, DEPRATU, DOHERTY, EKEGREN, GALLUS, GILLAN, GOLIE, HARRINGTON, KEENAN, LAWSON, LEWIS, MAHLUM, MATTHEWS, MCNUTT, MUSGROVE, ROUSH, SLITER, SPRAGUE, STEINBEISSER, TESTER
AN ACT REQUIRING WHOLESALERS, MANUFACTURERS, OR DISTRIBUTORS THAT TERMINATE, CANCEL, DO NOT RENEW, OR REFUSE TO CONTINUE A DEALERSHIP CONTRACT TO REIMBURSE A RETAILER FOR, OR REPURCHASE FROM A RETAILER, SIGNS, SPECIAL EQUIPMENT, AND SPECIAL TOOLS ACQUIRED BY THE RETAILER AT THE RECOMMENDATION OR REQUIREMENT OF THE WHOLESALER, MANUFACTURER, OR DISTRIBUTOR; PROHIBITING THE UNREASONABLE WITHHOLDING OF CONSENT TO A DEALER'S SALE, TRANSFER, OR EXCHANGE OF THE DEALER'S FRANCHISE BY A MANUFACTURER OF NEW MOTOR VEHICLES, A FACTORY BRANCH, A DISTRIBUTOR, A DISTRIBUTOR BRANCH, AN IMPORTER, A FIELD REPRESENTATIVE, AN OFFICER, AN AGENT, OR ANY REPRESENTATIVE; REQUIRING A RESPONSE TO A DEALER'S REQUEST FOR CONSENT TO THE SALE, TRANSFER, OR EXCHANGE OF THE DEALER'S FRANCHISE WITHIN 60 DAYS OF RECEIPT OF THE REQUEST; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Reimbursement for or repurchase of signs, special equipment, and special tools. Upon the termination, cancellation, nonrenewal, or refusal to continue a dealership contract by a wholesaler, manufacturer, or distributor, the wholesaler, manufacturer, or distributor shall pay the retailer:
(1) the original cost, adjusted for the remaining useful life, of each sign owned by the retailer that bears a common name, trade name, or trademark of the wholesaler, manufacturer, or distributor, if the acquisition of the sign was recommended or required by the wholesaler, manufacturer, or distributor;
(2) (a) the original cost, adjusted for the remaining useful life, of all special equipment and special tools purchased or leased by the retailer that were acquired from the wholesaler, manufacturer, or distributor or sources approved by the wholesaler, manufacturer, or distributor and that were recommended or required by the wholesaler, manufacturer, or distributor; or
(b) if the special equipment has a service agreement or the special tools are leased by the retailer, the amounts that are required to terminate the service agreement or the lease under the terms of the service or lease agreement; and
(3) the cost of transporting, handling, packing, and loading the signs, special equipment, and special tools.
Section 2. Sale, transfer, or exchange of dealership -- notice -- response to notice. (1) A manufacturer of new motor vehicles, a factory branch, a distributor, a distributor branch, an importer, a field representative, an officer, an agent, or any representative of the persons or entities listed in this subsection may not unreasonably withhold consent to the sale, transfer, or exchange of a franchise to a qualified buyer capable of being licensed as a new motor vehicle dealer in this state who meets the state's statutory requirements for appointment as a dealer.
(2) (a) A manufacturer or distributor shall respond to a dealer in writing within 60 days of receipt of the dealer's request, delivered by certified mail to the manufacturer or distributor, for consent to the sale, transfer, or exchange of the dealer's franchise submitted by the dealer to the manufacturer or distributor pursuant to the provisions of subsection (1).
(b) The manufacturer shall acknowledge, in writing delivered by certified mail to the dealer and the buyer designated in the dealer's request for consent, receipt of the request. Failure to respond within the 60-day period established in subsection (2)(a) is approval of the request.
(c) If the manufacturer or distributor requires additional information to complete its review, the manufacturer or distributor shall notify the buyer in writing delivered by certified mail within 15 business days of receipt of the dealer's request. If the manufacturer or distributor requests additional information, the 60-day time period for approval runs from the time of the receipt of the requested supplemental information. The manufacturer or dealer may request additional information only one time.
Section 3. Codification instruction. (1) [Section 1] is intended to be codified as an integral part of Title 30, chapter 11, part 7, and the provisions of Title 30, chapter 11, part 7, apply to [section 1].
(2) [Section 2] is intended to be codified as an integral part of Title 61, chapter 4, and the provisions of Title 61, chapter 4, apply to [section 2].
Section 4. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
Section 5. Effective date. [This act] is effective on passage and approval.
- END -
Latest Version of SB 421 (SB0421.ENR)
Processed for the Web on March 22, 2001 (11:03AM)
New language in a bill appears underlined, deleted material appears stricken.
Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of this bill for the bill's primary sponsor.
Status of this Bill | 2001 Legislature | Leg. Branch Home
All versions of this bill (PDF Format)
Authorized print version w/line numbers (PDF format)
(406)444-3064