Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2051 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2051 Introduced 2/9/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 815 ILCS 710/4 from Ch. 121 1/2, par. 754 Amends the Motor Vehicle Franchise Act. In provisions concerning unfair competition and practices, removes exceptions to the prohibition on a manufacturer, distributor, wholesaler, or distributor branch from exercising a right of first refusal or other right to acquire a franchise from a dealer. Makes conforming changes. Effective immediately. LRB103 27188 SPS 53558 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2051 Introduced 2/9/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 815 ILCS 710/4 from Ch. 121 1/2, par. 754 815 ILCS 710/4 from Ch. 121 1/2, par. 754 Amends the Motor Vehicle Franchise Act. In provisions concerning unfair competition and practices, removes exceptions to the prohibition on a manufacturer, distributor, wholesaler, or distributor branch from exercising a right of first refusal or other right to acquire a franchise from a dealer. Makes conforming changes. Effective immediately. LRB103 27188 SPS 53558 b LRB103 27188 SPS 53558 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2051 Introduced 2/9/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
3	3	815 ILCS 710/4 from Ch. 121 1/2, par. 754 815 ILCS 710/4 from Ch. 121 1/2, par. 754
4	4	815 ILCS 710/4 from Ch. 121 1/2, par. 754
5	5	Amends the Motor Vehicle Franchise Act. In provisions concerning unfair competition and practices, removes exceptions to the prohibition on a manufacturer, distributor, wholesaler, or distributor branch from exercising a right of first refusal or other right to acquire a franchise from a dealer. Makes conforming changes. Effective immediately.
6	6	LRB103 27188 SPS 53558 b LRB103 27188 SPS 53558 b
7	7	LRB103 27188 SPS 53558 b
8	8	A BILL FOR
9	9	SB2051LRB103 27188 SPS 53558 b SB2051 LRB103 27188 SPS 53558 b
10	10	SB2051 LRB103 27188 SPS 53558 b
11	11	1 AN ACT concerning business.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Motor Vehicle Franchise Act is amended by
15	15	5 changing Section 4 as follows:
16	16	6 (815 ILCS 710/4) (from Ch. 121 1/2, par. 754)
17	17	7 Sec. 4. Unfair competition and practices.
18	18	8 (a) The unfair methods of competition and unfair and
19	19	9 deceptive acts or practices listed in this Section are hereby
20	20	10 declared to be unlawful. In construing the provisions of this
21	21	11 Section, the courts may be guided by the interpretations of
22	22	12 the Federal Trade Commission Act (15 U.S.C. 45 et seq.), as
23	23	13 from time to time amended.
24	24	14 (b) It shall be deemed a violation for any manufacturer,
25	25	15 factory branch, factory representative, distributor or
26	26	16 wholesaler, distributor branch, distributor representative or
27	27	17 motor vehicle dealer to engage in any action with respect to a
28	28	18 franchise which is arbitrary, in bad faith or unconscionable
29	29	19 and which causes damage to any of the parties or to the public.
30	30	20 (c) It shall be deemed a violation for a manufacturer, a
31	31	21 distributor, a wholesaler, a distributor branch or division, a
32	32	22 factory branch or division, or a wholesale branch or division,
33	33	23 or officer, agent or other representative thereof, to coerce,
34	34
35	35
36	36
37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2051 Introduced 2/9/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
38	38	815 ILCS 710/4 from Ch. 121 1/2, par. 754 815 ILCS 710/4 from Ch. 121 1/2, par. 754
39	39	815 ILCS 710/4 from Ch. 121 1/2, par. 754
40	40	Amends the Motor Vehicle Franchise Act. In provisions concerning unfair competition and practices, removes exceptions to the prohibition on a manufacturer, distributor, wholesaler, or distributor branch from exercising a right of first refusal or other right to acquire a franchise from a dealer. Makes conforming changes. Effective immediately.
41	41	LRB103 27188 SPS 53558 b LRB103 27188 SPS 53558 b
42	42	LRB103 27188 SPS 53558 b
43	43	A BILL FOR
44	44
45	45
46	46
47	47
48	48
49	49	815 ILCS 710/4 from Ch. 121 1/2, par. 754
50	50
51	51
52	52
53	53	LRB103 27188 SPS 53558 b
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63	SB2051 LRB103 27188 SPS 53558 b
64	64
65	65
66	66	SB2051- 2 -LRB103 27188 SPS 53558 b SB2051 - 2 - LRB103 27188 SPS 53558 b
67	67	SB2051 - 2 - LRB103 27188 SPS 53558 b
68	68	1 or attempt to coerce, any motor vehicle dealer:
69	69	2 (1) to accept, buy or order any motor vehicle or
70	70	3 vehicles, appliances, equipment, parts or accessories
71	71	4 therefor, or any other commodity or commodities or service
72	72	5 or services which such motor vehicle dealer has not
73	73	6 voluntarily ordered or requested except items required by
74	74	7 applicable local, state or federal law; or to require a
75	75	8 motor vehicle dealer to accept, buy, order or purchase
76	76	9 such items in order to obtain any motor vehicle or
77	77	10 vehicles or any other commodity or commodities which have
78	78	11 been ordered or requested by such motor vehicle dealer;
79	79	12 (2) to order or accept delivery of any motor vehicle
80	80	13 with special features, appliances, accessories or
81	81	14 equipment not included in the list price of the motor
82	82	15 vehicles as publicly advertised by the manufacturer
83	83	16 thereof, except items required by applicable law; or
84	84	17 (3) to order for anyone any parts, accessories,
85	85	18 equipment, machinery, tools, appliances or any commodity
86	86	19 whatsoever, except items required by applicable law.
87	87	20 (c-5) A manufacturer, a distributor, a wholesaler, a
88	88	21 distributor branch or division, a factory branch or division,
89	89	22 or a wholesale branch or division, or officer, agent, or other
90	90	23 representative thereof may not:
91	91	24 (1) require a motor vehicle dealer to offer a
92	92	25 secondary product; or
93	93	26
94	94
95	95
96	96
97	97
98	98
99	99	SB2051 - 2 - LRB103 27188 SPS 53558 b
100	100
101	101
102	102	SB2051- 3 -LRB103 27188 SPS 53558 b SB2051 - 3 - LRB103 27188 SPS 53558 b
103	103	SB2051 - 3 - LRB103 27188 SPS 53558 b
104	104	1 (2) prohibit a motor vehicle dealer from offering a
105	105	2 secondary product, including, but not limited to:
106	106	3 (A) service contracts;
107	107	4 (B) maintenance agreements;
108	108	5 (C) extended warranties;
109	109	6 (D) protection product guarantees;
110	110	7 (E) guaranteed asset protection waivers;
111	111	8 (F) insurance;
112	112	9 (G) replacement parts;
113	113	10 (H) vehicle accessories;
114	114	11 (I) oil; or
115	115	12 (J) supplies.
116	116	13 It is not a violation of this subsection to offer an
117	117	14 incentive program to motor vehicle dealers to encourage them
118	118	15 to sell or offer to sell a secondary product approved,
119	119	16 endorsed, sponsored, or offered by the manufacturer,
120	120	17 distributor, wholesaler, distributor branch or division,
121	121	18 factory branch or division, wholesale branch or division, or
122	122	19 officer, agent, or other representative thereof, provided the
123	123	20 program does not provide vehicle sales or service incentives.
124	124	21 It is not a violation of this subsection to prohibit a
125	125	22 motor vehicle dealer from using secondary products for any
126	126	23 repair work paid for under the terms of a warranty, recall,
127	127	24 service contract, extended warranty, maintenance plan, or
128	128	25 certified pre-owned vehicle program established or offered by
129	129	26 the manufacturer, distributor, wholesaler, distributor branch
130	130
131	131
132	132
133	133
134	134
135	135	SB2051 - 3 - LRB103 27188 SPS 53558 b
136	136
137	137
138	138	SB2051- 4 -LRB103 27188 SPS 53558 b SB2051 - 4 - LRB103 27188 SPS 53558 b
139	139	SB2051 - 4 - LRB103 27188 SPS 53558 b
140	140	1 or division, factory branch or division, or wholesale branch
141	141	2 or division, or officer, agent, or other representative
142	142	3 thereof.
143	143	4 As used in this subsection, "secondary product" means all
144	144	5 products that are not new motor vehicles or original equipment
145	145	6 manufacturer parts.
146	146	7 (d) It shall be deemed a violation for a manufacturer, a
147	147	8 distributor, a wholesaler, a distributor branch or division,
148	148	9 or officer, agent or other representative thereof:
149	149	10 (1) to adopt, change, establish or implement a plan or
150	150	11 system for the allocation and distribution of new motor
151	151	12 vehicles to motor vehicle dealers which is arbitrary or
152	152	13 capricious or to modify an existing plan so as to cause the
153	153	14 same to be arbitrary or capricious;
154	154	15 (2) to fail or refuse to advise or disclose to any
155	155	16 motor vehicle dealer having a franchise or selling
156	156	17 agreement, upon written request therefor, the basis upon
157	157	18 which new motor vehicles of the same line make are
158	158	19 allocated or distributed to motor vehicle dealers in the
159	159	20 State and the basis upon which the current allocation or
160	160	21 distribution is being made or will be made to such motor
161	161	22 vehicle dealer;
162	162	23 (3) to refuse to deliver in reasonable quantities and
163	163	24 within a reasonable time after receipt of dealer's order,
164	164	25 to any motor vehicle dealer having a franchise or selling
165	165	26 agreement for the retail sale of new motor vehicles sold
166	166
167	167
168	168
169	169
170	170
171	171	SB2051 - 4 - LRB103 27188 SPS 53558 b
172	172
173	173
174	174	SB2051- 5 -LRB103 27188 SPS 53558 b SB2051 - 5 - LRB103 27188 SPS 53558 b
175	175	SB2051 - 5 - LRB103 27188 SPS 53558 b
176	176	1 or distributed by such manufacturer, distributor,
177	177	2 wholesaler, distributor branch or division, factory branch
178	178	3 or division or wholesale branch or division, any such
179	179	4 motor vehicles as are covered by such franchise or selling
180	180	5 agreement specifically publicly advertised in the State by
181	181	6 such manufacturer, distributor, wholesaler, distributor
182	182	7 branch or division, factory branch or division, or
183	183	8 wholesale branch or division to be available for immediate
184	184	9 delivery. However, the failure to deliver any motor
185	185	10 vehicle shall not be considered a violation of this Act if
186	186	11 such failure is due to an act of God, a work stoppage or
187	187	12 delay due to a strike or labor difficulty, a shortage of
188	188	13 materials, a lack of manufacturing capacity, a freight
189	189	14 embargo or other cause over which the manufacturer,
190	190	15 distributor, or wholesaler, or any agent thereof has no
191	191	16 control;
192	192	17 (4) to coerce, or attempt to coerce, any motor vehicle
193	193	18 dealer to enter into any agreement with such manufacturer,
194	194	19 distributor, wholesaler, distributor branch or division,
195	195	20 factory branch or division, or wholesale branch or
196	196	21 division, or officer, agent or other representative
197	197	22 thereof, or to do any other act prejudicial to the dealer
198	198	23 by threatening to reduce his allocation of motor vehicles
199	199	24 or cancel any franchise or any selling agreement existing
200	200	25 between such manufacturer, distributor, wholesaler,
201	201	26 distributor branch or division, or factory branch or
202	202
203	203
204	204
205	205
206	206
207	207	SB2051 - 5 - LRB103 27188 SPS 53558 b
208	208
209	209
210	210	SB2051- 6 -LRB103 27188 SPS 53558 b SB2051 - 6 - LRB103 27188 SPS 53558 b
211	211	SB2051 - 6 - LRB103 27188 SPS 53558 b
212	212	1 division, or wholesale branch or division, and the dealer.
213	213	2 However, notice in good faith to any motor vehicle dealer
214	214	3 of the dealer's violation of any terms or provisions of
215	215	4 such franchise or selling agreement or of any law or
216	216	5 regulation applicable to the conduct of a motor vehicle
217	217	6 dealer shall not constitute a violation of this Act;
218	218	7 (5) to require a franchisee to participate in an
219	219	8 advertising campaign or contest or any promotional
220	220	9 campaign, or to purchase or lease any promotional
221	221	10 materials, training materials, show room or other display
222	222	11 decorations or materials at the expense of the franchisee;
223	223	12 (6) to cancel or terminate the franchise or selling
224	224	13 agreement of a motor vehicle dealer without good cause and
225	225	14 without giving notice as hereinafter provided; to fail or
226	226	15 refuse to extend the franchise or selling agreement of a
227	227	16 motor vehicle dealer upon its expiration without good
228	228	17 cause and without giving notice as hereinafter provided;
229	229	18 or, to offer a renewal, replacement or succeeding
230	230	19 franchise or selling agreement containing terms and
231	231	20 provisions the effect of which is to substantially change
232	232	21 or modify the sales and service obligations or capital
233	233	22 requirements of the motor vehicle dealer arbitrarily and
234	234	23 without good cause and without giving notice as
235	235	24 hereinafter provided notwithstanding any term or provision
236	236	25 of a franchise or selling agreement.
237	237	26 (A) If a manufacturer, distributor, wholesaler,
238	238
239	239
240	240
241	241
242	242
243	243	SB2051 - 6 - LRB103 27188 SPS 53558 b
244	244
245	245
246	246	SB2051- 7 -LRB103 27188 SPS 53558 b SB2051 - 7 - LRB103 27188 SPS 53558 b
247	247	SB2051 - 7 - LRB103 27188 SPS 53558 b
248	248	1 distributor branch or division, factory branch or
249	249	2 division or wholesale branch or division intends to
250	250	3 cancel or terminate a franchise or selling agreement
251	251	4 or intends not to extend or renew a franchise or
252	252	5 selling agreement on its expiration, it shall send a
253	253	6 letter by certified mail, return receipt requested, to
254	254	7 the affected franchisee at least 60 days before the
255	255	8 effective date of the proposed action, or not later
256	256	9 than 10 days before the proposed action when the
257	257	10 reason for the action is based upon either of the
258	258	11 following:
259	259	12 (i) the business operations of the franchisee
260	260	13 have been abandoned or the franchisee has failed
261	261	14 to conduct customary sales and service operations
262	262	15 during customary business hours for at least 7
263	263	16 consecutive business days unless such closing is
264	264	17 due to an act of God, strike or labor difficulty or
265	265	18 other cause over which the franchisee has no
266	266	19 control; or
267	267	20 (ii) the conviction of or plea of nolo
268	268	21 contendere by the motor vehicle dealer or any
269	269	22 operator thereof in a court of competent
270	270	23 jurisdiction to an offense punishable by
271	271	24 imprisonment for more than two years.
272	272	25 Each notice of proposed action shall include a
273	273	26 detailed statement setting forth the specific grounds
274	274
275	275
276	276
277	277
278	278
279	279	SB2051 - 7 - LRB103 27188 SPS 53558 b
280	280
281	281
282	282	SB2051- 8 -LRB103 27188 SPS 53558 b SB2051 - 8 - LRB103 27188 SPS 53558 b
283	283	SB2051 - 8 - LRB103 27188 SPS 53558 b
284	284	1 for the proposed cancellation, termination, or refusal
285	285	2 to extend or renew and shall state that the dealer has
286	286	3 only 30 days from receipt of the notice to file with
287	287	4 the Motor Vehicle Review Board a written protest
288	288	5 against the proposed action.
289	289	6 (B) If a manufacturer, distributor, wholesaler,
290	290	7 distributor branch or division, factory branch or
291	291	8 division or wholesale branch or division intends to
292	292	9 change substantially or modify the sales and service
293	293	10 obligations or capital requirements of a motor vehicle
294	294	11 dealer as a condition to extending or renewing the
295	295	12 existing franchise or selling agreement of such motor
296	296	13 vehicle dealer, it shall send a letter by certified
297	297	14 mail, return receipt requested, to the affected
298	298	15 franchisee at least 60 days before the date of
299	299	16 expiration of the franchise or selling agreement. Each
300	300	17 notice of proposed action shall include a detailed
301	301	18 statement setting forth the specific grounds for the
302	302	19 proposed action and shall state that the dealer has
303	303	20 only 30 days from receipt of the notice to file with
304	304	21 the Motor Vehicle Review Board a written protest
305	305	22 against the proposed action.
306	306	23 (C) Within 30 days from receipt of the notice
307	307	24 under subparagraphs (A) and (B), the franchisee may
308	308	25 file with the Board a written protest against the
309	309	26 proposed action.
310	310
311	311
312	312
313	313
314	314
315	315	SB2051 - 8 - LRB103 27188 SPS 53558 b
316	316
317	317
318	318	SB2051- 9 -LRB103 27188 SPS 53558 b SB2051 - 9 - LRB103 27188 SPS 53558 b
319	319	SB2051 - 9 - LRB103 27188 SPS 53558 b
320	320	1 When the protest has been timely filed, the Board
321	321	2 shall enter an order, fixing a date (within 60 days of
322	322	3 the date of the order), time, and place of a hearing on
323	323	4 the protest required under Sections 12 and 29 of this
324	324	5 Act, and send by certified mail, return receipt
325	325	6 requested, a copy of the order to the manufacturer
326	326	7 that filed the notice of intention of the proposed
327	327	8 action and to the protesting dealer or franchisee.
328	328	9 The manufacturer shall have the burden of proof to
329	329	10 establish that good cause exists to cancel or
330	330	11 terminate, or fail to extend or renew the franchise or
331	331	12 selling agreement of a motor vehicle dealer or
332	332	13 franchisee, and to change substantially or modify the
333	333	14 sales and service obligations or capital requirements
334	334	15 of a motor vehicle dealer as a condition to extending
335	335	16 or renewing the existing franchise or selling
336	336	17 agreement. The determination whether good cause exists
337	337	18 to cancel, terminate, or refuse to renew or extend the
338	338	19 franchise or selling agreement, or to change or modify
339	339	20 the obligations of the dealer as a condition to offer
340	340	21 renewal, replacement, or succession shall be made by
341	341	22 the Board under subsection (d) of Section 12 of this
342	342	23 Act.
343	343	24 (D) Notwithstanding the terms, conditions, or
344	344	25 provisions of a franchise or selling agreement, the
345	345	26 following shall not constitute good cause for
346	346
347	347
348	348
349	349
350	350
351	351	SB2051 - 9 - LRB103 27188 SPS 53558 b
352	352
353	353
354	354	SB2051- 10 -LRB103 27188 SPS 53558 b SB2051 - 10 - LRB103 27188 SPS 53558 b
355	355	SB2051 - 10 - LRB103 27188 SPS 53558 b
356	356	1 cancelling or terminating or failing to extend or
357	357	2 renew the franchise or selling agreement: (i) the
358	358	3 change of ownership or executive management of the
359	359	4 franchisee's dealership; or (ii) the fact that the
360	360	5 franchisee or owner of an interest in the franchise
361	361	6 owns, has an investment in, participates in the
362	362	7 management of, or holds a license for the sale of the
363	363	8 same or any other line make of new motor vehicles.
364	364	9 (E) The manufacturer may not cancel or terminate,
365	365	10 or fail to extend or renew a franchise or selling
366	366	11 agreement or change or modify the obligations of the
367	367	12 franchisee as a condition to offering a renewal,
368	368	13 replacement, or succeeding franchise or selling
369	369	14 agreement before the hearing process is concluded as
370	370	15 prescribed by this Act, and thereafter, if the Board
371	371	16 determines that the manufacturer has failed to meet
372	372	17 its burden of proof and that good cause does not exist
373	373	18 to allow the proposed action;
374	374	19 (7) notwithstanding the terms of any franchise
375	375	20 agreement, to fail to indemnify and hold harmless its
376	376	21 franchised dealers against any judgment or settlement for
377	377	22 damages, including, but not limited to, court costs,
378	378	23 expert witness fees, reasonable attorneys' fees of the new
379	379	24 motor vehicle dealer, and other expenses incurred in the
380	380	25 litigation, so long as such fees and costs are reasonable,
381	381	26 arising out of complaints, claims, or lawsuits, including,
382	382
383	383
384	384
385	385
386	386
387	387	SB2051 - 10 - LRB103 27188 SPS 53558 b
388	388
389	389
390	390	SB2051- 11 -LRB103 27188 SPS 53558 b SB2051 - 11 - LRB103 27188 SPS 53558 b
391	391	SB2051 - 11 - LRB103 27188 SPS 53558 b
392	392	1 but not limited to, strict liability, negligence,
393	393	2 misrepresentation, warranty (express or implied), or
394	394	3 rescission of the sale as defined in Section 2-608 of the
395	395	4 Uniform Commercial Code, to the extent that the judgment
396	396	5 or settlement relates to the alleged defective or
397	397	6 negligent manufacture, assembly or design of new motor
398	398	7 vehicles, parts or accessories or other functions by the
399	399	8 manufacturer, beyond the control of the dealer; provided
400	400	9 that, in order to provide an adequate defense, the
401	401	10 manufacturer receives notice of the filing of a complaint,
402	402	11 claim, or lawsuit within 60 days after the filing;
403	403	12 (8) to require or otherwise coerce a motor vehicle
404	404	13 dealer to underutilize the motor vehicle dealer's
405	405	14 facilities by requiring or otherwise coercing the motor
406	406	15 vehicle dealer to exclude or remove from the motor vehicle
407	407	16 dealer's facilities operations for selling or servicing of
408	408	17 any vehicles for which the motor vehicle dealer has a
409	409	18 franchise agreement with another manufacturer,
410	410	19 distributor, wholesaler, distribution branch or division,
411	411	20 or officer, agent, or other representative thereof;
412	412	21 provided, however, that, in light of all existing
413	413	22 circumstances, (i) the motor vehicle dealer maintains a
414	414	23 reasonable line of credit for each make or line of new
415	415	24 motor vehicle, (ii) the new motor vehicle dealer remains
416	416	25 in compliance with any reasonable facilities requirements
417	417	26 of the manufacturer, (iii) no change is made in the
418	418
419	419
420	420
421	421
422	422
423	423	SB2051 - 11 - LRB103 27188 SPS 53558 b
424	424
425	425
426	426	SB2051- 12 -LRB103 27188 SPS 53558 b SB2051 - 12 - LRB103 27188 SPS 53558 b
427	427	SB2051 - 12 - LRB103 27188 SPS 53558 b
428	428	1 principal management of the new motor vehicle dealer, and
429	429	2 (iv) the addition of the make or line of new motor vehicles
430	430	3 would be reasonable. The reasonable facilities requirement
431	431	4 set forth in item (ii) of subsection (d)(8) shall not
432	432	5 include any requirement that a franchisee establish or
433	433	6 maintain exclusive facilities, personnel, or display
434	434	7 space. Any decision by a motor vehicle dealer to sell
435	435	8 additional makes or lines at the motor vehicle dealer's
436	436	9 facility shall be presumed to be reasonable, and the
437	437	10 manufacturer shall have the burden to overcome that
438	438	11 presumption. A motor vehicle dealer must provide a written
439	439	12 notification of its intent to add a make or line of new
440	440	13 motor vehicles to the manufacturer. If the manufacturer
441	441	14 does not respond to the motor vehicle dealer, in writing,
442	442	15 objecting to the addition of the make or line within 60
443	443	16 days after the date that the motor vehicle dealer sends
444	444	17 the written notification, then the manufacturer shall be
445	445	18 deemed to have approved the addition of the make or line;
446	446	19 (9) to use or consider the performance of a motor
447	447	20 vehicle dealer relating to the sale of the manufacturer's,
448	448	21 distributor's, or wholesaler's vehicles or the motor
449	449	22 vehicle dealer's ability to satisfy any minimum sales or
450	450	23 market share quota or responsibility relating to the sale
451	451	24 of the manufacturer's, distributor's, or wholesaler's new
452	452	25 vehicles in determining:
453	453	26 (A) the motor vehicle dealer's eligibility to
454	454
455	455
456	456
457	457
458	458
459	459	SB2051 - 12 - LRB103 27188 SPS 53558 b
460	460
461	461
462	462	SB2051- 13 -LRB103 27188 SPS 53558 b SB2051 - 13 - LRB103 27188 SPS 53558 b
463	463	SB2051 - 13 - LRB103 27188 SPS 53558 b
464	464	1 purchase program, certified, or other used motor
465	465	2 vehicles from the manufacturer, distributor, or
466	466	3 wholesaler;
467	467	4 (B) the volume, type, or model of program,
468	468	5 certified, or other used motor vehicles that a motor
469	469	6 vehicle dealer is eligible to purchase from the
470	470	7 manufacturer, distributor, or wholesaler;
471	471	8 (C) the price of any program, certified, or other
472	472	9 used motor vehicle that the dealer is eligible to
473	473	10 purchase from the manufacturer, distributor, or
474	474	11 wholesaler; or
475	475	12 (D) the availability or amount of any discount,
476	476	13 credit, rebate, or sales incentive that the dealer is
477	477	14 eligible to receive from the manufacturer,
478	478	15 distributor, or wholesaler for the purchase of any
479	479	16 program, certified, or other used motor vehicle
480	480	17 offered for sale by the manufacturer, distributor, or
481	481	18 wholesaler;
482	482	19 (10) to take any adverse action against a dealer
483	483	20 pursuant to an export or sale-for-resale prohibition
484	484	21 because the dealer sold or leased a vehicle to a customer
485	485	22 who either exported the vehicle to a foreign country or
486	486	23 resold the vehicle in violation of the prohibition, unless
487	487	24 the export or sale-for-resale prohibition policy was
488	488	25 provided to the dealer in writing either electronically or
489	489	26 on paper, prior to the sale or lease, and the dealer knew
490	490
491	491
492	492
493	493
494	494
495	495	SB2051 - 13 - LRB103 27188 SPS 53558 b
496	496
497	497
498	498	SB2051- 14 -LRB103 27188 SPS 53558 b SB2051 - 14 - LRB103 27188 SPS 53558 b
499	499	SB2051 - 14 - LRB103 27188 SPS 53558 b
500	500	1 or reasonably should have known of the customer's intent
501	501	2 to export or resell the vehicle in violation of the
502	502	3 prohibition at the time of the sale or lease. If the dealer
503	503	4 causes the vehicle to be registered and titled in this or
504	504	5 any other state, and collects or causes to be collected
505	505	6 any applicable sales or use tax to this State, a
506	506	7 rebuttable presumption is established that the dealer did
507	507	8 not have reason to know of the customer's intent to resell
508	508	9 the vehicle;
509	509	10 (11) to coerce or require any dealer to construct
510	510	11 improvements to his or her facilities or to install new
511	511	12 signs or other franchiser image elements that replace or
512	512	13 substantially alter those improvements, signs, or
513	513	14 franchiser image elements completed within the past 10
514	514	15 years that were required and approved by the manufacturer
515	515	16 or one of its affiliates. The 10-year period under this
516	516	17 paragraph (11) begins to run for a dealer, including that
517	517	18 dealer's successors and assigns, on the date that the
518	518	19 manufacturer gives final written approval of the facility
519	519	20 improvements or installation of signs or other franchiser
520	520	21 image elements or the date that the dealer receives a
521	521	22 certificate of occupancy, whichever is later. For the
522	522	23 purpose of this paragraph (11), the term "substantially
523	523	24 alter" does not include routine maintenance, including,
524	524	25 but not limited to, interior painting, that is reasonably
525	525	26 necessary to keep a dealer facility in attractive
526	526
527	527
528	528
529	529
530	530
531	531	SB2051 - 14 - LRB103 27188 SPS 53558 b
532	532
533	533
534	534	SB2051- 15 -LRB103 27188 SPS 53558 b SB2051 - 15 - LRB103 27188 SPS 53558 b
535	535	SB2051 - 15 - LRB103 27188 SPS 53558 b
536	536	1 condition; or
537	537	2 (12) to require a dealer to purchase goods or services
538	538	3 to make improvements to the dealer's facilities from a
539	539	4 vendor selected, identified, or designated by a
540	540	5 manufacturer or one of its affiliates by agreement,
541	541	6 program, incentive provision, or otherwise without making
542	542	7 available to the dealer the option to obtain the goods or
543	543	8 services of substantially similar quality and overall
544	544	9 design from a vendor chosen by the dealer and approved by
545	545	10 the manufacturer; however, approval by the manufacturer
546	546	11 shall not be unreasonably withheld, and the dealer's
547	547	12 option to select a vendor shall not be available if the
548	548	13 manufacturer provides substantial reimbursement for the
549	549	14 goods or services offered. "Substantial reimbursement"
550	550	15 means an amount equal to or greater than the cost savings
551	551	16 that would result if the dealer were to utilize a vendor of
552	552	17 the dealer's own selection instead of using the vendor
553	553	18 identified by the manufacturer. For the purpose of this
554	554	19 paragraph (12), the term "goods" does not include movable
555	555	20 displays, brochures, and promotional materials containing
556	556	21 material subject to the intellectual property rights of a
557	557	22 manufacturer. If signs, other than signs containing the
558	558	23 manufacturer's brand or logo or free-standing signs that
559	559	24 are not directly attached to a building, or other
560	560	25 franchiser image or design elements or trade dress are to
561	561	26 be leased to the dealer by a vendor selected, identified,
562	562
563	563
564	564
565	565
566	566
567	567	SB2051 - 15 - LRB103 27188 SPS 53558 b
568	568
569	569
570	570	SB2051- 16 -LRB103 27188 SPS 53558 b SB2051 - 16 - LRB103 27188 SPS 53558 b
571	571	SB2051 - 16 - LRB103 27188 SPS 53558 b
572	572	1 or designated by the manufacturer, the dealer has the
573	573	2 right to purchase the signs or other franchiser image or
574	574	3 design elements or trade dress of substantially similar
575	575	4 quality and design from a vendor selected by the dealer if
576	576	5 the signs, franchiser image or design elements, or trade
577	577	6 dress are approved by the manufacturer. Approval by the
578	578	7 manufacturer shall not be unreasonably withheld. This
579	579	8 paragraph (12) shall not be construed to allow a dealer or
580	580	9 vendor to impair, infringe upon, or eliminate, directly or
581	581	10 indirectly, the intellectual property rights of the
582	582	11 manufacturer, including, but not limited to, the
583	583	12 manufacturer's intellectual property rights in any
584	584	13 trademarks or trade dress, or other intellectual property
585	585	14 interests owned or controlled by the manufacturer. This
586	586	15 paragraph (12) shall not be construed to permit a dealer
587	587	16 to erect or maintain signs that do not conform to the
588	588	17 manufacturer's intellectual property rights or trademark
589	589	18 or trade dress usage guidelines.
590	590	19 (e) It shall be deemed a violation for a manufacturer, a
591	591	20 distributor, a wholesaler, a distributor branch or division or
592	592	21 officer, agent or other representative thereof:
593	593	22 (1) to resort to or use any false or misleading
594	594	23 advertisement in connection with his business as such
595	595	24 manufacturer, distributor, wholesaler, distributor branch
596	596	25 or division or officer, agent or other representative
597	597	26 thereof;
598	598
599	599
600	600
601	601
602	602
603	603	SB2051 - 16 - LRB103 27188 SPS 53558 b
604	604
605	605
606	606	SB2051- 17 -LRB103 27188 SPS 53558 b SB2051 - 17 - LRB103 27188 SPS 53558 b
607	607	SB2051 - 17 - LRB103 27188 SPS 53558 b
608	608	1 (2) to offer to sell or lease, or to sell or lease, any
609	609	2 new motor vehicle to any motor vehicle dealer at a lower
610	610	3 actual price therefor than the actual price offered to any
611	611	4 other motor vehicle dealer for the same model vehicle
612	612	5 similarly equipped or to utilize any device including, but
613	613	6 not limited to, sales promotion plans or programs which
614	614	7 result in such lesser actual price or fail to make
615	615	8 available to any motor vehicle dealer any preferential
616	616	9 pricing, incentive, rebate, finance rate, or low interest
617	617	10 loan program offered to competing motor vehicle dealers in
618	618	11 other contiguous states. However, the provisions of this
619	619	12 paragraph shall not apply to sales to a motor vehicle
620	620	13 dealer for resale to any unit of the United States
621	621	14 Government, the State or any of its political
622	622	15 subdivisions;
623	623	16 (3) to offer to sell or lease, or to sell or lease, any
624	624	17 new motor vehicle to any person, except a wholesaler,
625	625	18 distributor or manufacturer's employees at a lower actual
626	626	19 price therefor than the actual price offered and charged
627	627	20 to a motor vehicle dealer for the same model vehicle
628	628	21 similarly equipped or to utilize any device which results
629	629	22 in such lesser actual price. However, the provisions of
630	630	23 this paragraph shall not apply to sales to a motor vehicle
631	631	24 dealer for resale to any unit of the United States
632	632	25 Government, the State or any of its political
633	633	26 subdivisions;
634	634
635	635
636	636
637	637
638	638
639	639	SB2051 - 17 - LRB103 27188 SPS 53558 b
640	640
641	641
642	642	SB2051- 18 -LRB103 27188 SPS 53558 b SB2051 - 18 - LRB103 27188 SPS 53558 b
643	643	SB2051 - 18 - LRB103 27188 SPS 53558 b
644	644	1 (4) to prevent or attempt to prevent by contract or
645	645	2 otherwise any motor vehicle dealer or franchisee from
646	646	3 changing the executive management control of the motor
647	647	4 vehicle dealer or franchisee unless the franchiser, having
648	648	5 the burden of proof, proves that such change of executive
649	649	6 management will result in executive management control by
650	650	7 a person or persons who are not of good moral character or
651	651	8 who do not meet the franchiser's existing and, with
652	652	9 consideration given to the volume of sales and service of
653	653	10 the dealership, uniformly applied minimum business
654	654	11 experience standards in the market area. However, where
655	655	12 the manufacturer rejects a proposed change in executive
656	656	13 management control, the manufacturer shall give written
657	657	14 notice of his reasons to the dealer within 60 days of
658	658	15 notice to the manufacturer by the dealer of the proposed
659	659	16 change. If the manufacturer does not send a letter to the
660	660	17 franchisee by certified mail, return receipt requested,
661	661	18 within 60 days from receipt by the manufacturer of the
662	662	19 proposed change, then the change of the executive
663	663	20 management control of the franchisee shall be deemed
664	664	21 accepted as proposed by the franchisee, and the
665	665	22 manufacturer shall give immediate effect to such change;
666	666	23 (5) to prevent or attempt to prevent by contract or
667	667	24 otherwise any motor vehicle dealer from establishing or
668	668	25 changing the capital structure of his dealership or the
669	669	26 means by or through which he finances the operation
670	670
671	671
672	672
673	673
674	674
675	675	SB2051 - 18 - LRB103 27188 SPS 53558 b
676	676
677	677
678	678	SB2051- 19 -LRB103 27188 SPS 53558 b SB2051 - 19 - LRB103 27188 SPS 53558 b
679	679	SB2051 - 19 - LRB103 27188 SPS 53558 b
680	680	1 thereof; provided the dealer meets any reasonable capital
681	681	2 standards agreed to between the dealer and the
682	682	3 manufacturer, distributor or wholesaler, who may require
683	683	4 that the sources, method and manner by which the dealer
684	684	5 finances or intends to finance its operation, equipment or
685	685	6 facilities be fully disclosed;
686	686	7 (6) to refuse to give effect to or prevent or attempt
687	687	8 to prevent by contract or otherwise any motor vehicle
688	688	9 dealer or any officer, partner or stockholder of any motor
689	689	10 vehicle dealer from selling or transferring any part of
690	690	11 the interest of any of them to any other person or persons
691	691	12 or party or parties unless such sale or transfer is to a
692	692	13 transferee who would not otherwise qualify for a new motor
693	693	14 vehicle dealers license under the Illinois Vehicle Code or
694	694	15 unless the franchiser, having the burden of proof, proves
695	695	16 that such sale or transfer is to a person or party who is
696	696	17 not of good moral character or does not meet the
697	697	18 franchiser's existing and reasonable capital standards
698	698	19 and, with consideration given to the volume of sales and
699	699	20 service of the dealership, uniformly applied minimum
700	700	21 business experience standards in the market area. However,
701	701	22 nothing herein shall be construed to prevent a franchiser
702	702	23 from implementing affirmative action programs providing
703	703	24 business opportunities for minorities or from complying
704	704	25 with applicable federal, State or local law:
705	705	26 (A) If the manufacturer intends to refuse to
706	706
707	707
708	708
709	709
710	710
711	711	SB2051 - 19 - LRB103 27188 SPS 53558 b
712	712
713	713
714	714	SB2051- 20 -LRB103 27188 SPS 53558 b SB2051 - 20 - LRB103 27188 SPS 53558 b
715	715	SB2051 - 20 - LRB103 27188 SPS 53558 b
716	716	1 approve the sale or transfer of all or a part of the
717	717	2 interest, then it shall, within 60 days from receipt
718	718	3 of the completed application forms generally utilized
719	719	4 by a manufacturer to conduct its review and a copy of
720	720	5 all agreements regarding the proposed transfer, send a
721	721	6 letter by certified mail, return receipt requested,
722	722	7 advising the franchisee of any refusal to approve the
723	723	8 sale or transfer of all or part of the interest and
724	724	9 shall state that the dealer only has 30 days from the
725	725	10 receipt of the notice to file with the Motor Vehicle
726	726	11 Review Board a written protest against the proposed
727	727	12 action. The notice shall set forth specific criteria
728	728	13 used to evaluate the prospective transferee and the
729	729	14 grounds for refusing to approve the sale or transfer
730	730	15 to that transferee. Within 30 days from the
731	731	16 franchisee's receipt of the manufacturer's notice, the
732	732	17 franchisee may file with the Board a written protest
733	733	18 against the proposed action.
734	734	19 When a protest has been timely filed, the Board
735	735	20 shall enter an order, fixing the date (within 60 days
736	736	21 of the date of such order), time, and place of a
737	737	22 hearing on the protest, required under Sections 12 and
738	738	23 29 of this Act, and send by certified mail, return
739	739	24 receipt requested, a copy of the order to the
740	740	25 manufacturer that filed notice of intention of the
741	741	26 proposed action and to the protesting franchisee.
742	742
743	743
744	744
745	745
746	746
747	747	SB2051 - 20 - LRB103 27188 SPS 53558 b
748	748
749	749
750	750	SB2051- 21 -LRB103 27188 SPS 53558 b SB2051 - 21 - LRB103 27188 SPS 53558 b
751	751	SB2051 - 21 - LRB103 27188 SPS 53558 b
752	752	1 The manufacturer shall have the burden of proof to
753	753	2 establish that good cause exists to refuse to approve
754	754	3 the sale or transfer to the transferee. The
755	755	4 determination whether good cause exists to refuse to
756	756	5 approve the sale or transfer shall be made by the Board
757	757	6 under subdivisions (6)(B). The manufacturer shall not
758	758	7 refuse to approve the sale or transfer by a dealer or
759	759	8 an officer, partner, or stockholder of a franchise or
760	760	9 any part of the interest to any person or persons
761	761	10 before the hearing process is concluded as prescribed
762	762	11 by this Act, and thereafter if the Board determines
763	763	12 that the manufacturer has failed to meet its burden of
764	764	13 proof and that good cause does not exist to refuse to
765	765	14 approve the sale or transfer to the transferee.
766	766	15 (B) Good cause to refuse to approve such sale or
767	767	16 transfer under this Section is established when such
768	768	17 sale or transfer is to a transferee who would not
769	769	18 otherwise qualify for a new motor vehicle dealers
770	770	19 license under the Illinois Vehicle Code or such sale
771	771	20 or transfer is to a person or party who is not of good
772	772	21 moral character or does not meet the franchiser's
773	773	22 existing and reasonable capital standards and, with
774	774	23 consideration given to the volume of sales and service
775	775	24 of the dealership, uniformly applied minimum business
776	776	25 experience standards in the market area.
777	777	26 (7) to obtain money, goods, services, anything of
778	778
779	779
780	780
781	781
782	782
783	783	SB2051 - 21 - LRB103 27188 SPS 53558 b
784	784
785	785
786	786	SB2051- 22 -LRB103 27188 SPS 53558 b SB2051 - 22 - LRB103 27188 SPS 53558 b
787	787	SB2051 - 22 - LRB103 27188 SPS 53558 b
788	788	1 value, or any other benefit from any other person with
789	789	2 whom the motor vehicle dealer does business, on account of
790	790	3 or in relation to the transactions between the dealer and
791	791	4 the other person as compensation, except for services
792	792	5 actually rendered, unless such benefit is promptly
793	793	6 accounted for and transmitted to the motor vehicle dealer;
794	794	7 (8) to grant an additional franchise in the relevant
795	795	8 market area of an existing franchise of the same line make
796	796	9 or to relocate an existing motor vehicle dealership within
797	797	10 or into a relevant market area of an existing franchise of
798	798	11 the same line make. However, if the manufacturer wishes to
799	799	12 grant such an additional franchise to an independent
800	800	13 person in a bona fide relationship in which such person is
801	801	14 prepared to make a significant investment subject to loss
802	802	15 in such a dealership, or if the manufacturer wishes to
803	803	16 relocate an existing motor vehicle dealership, then the
804	804	17 manufacturer shall send a letter by certified mail, return
805	805	18 receipt requested, to each existing dealer or dealers of
806	806	19 the same line make whose relevant market area includes the
807	807	20 proposed location of the additional or relocated franchise
808	808	21 at least 60 days before the manufacturer grants an
809	809	22 additional franchise or relocates an existing franchise of
810	810	23 the same line make within or into the relevant market area
811	811	24 of an existing franchisee of the same line make. Each
812	812	25 notice shall set forth the specific grounds for the
813	813	26 proposed grant of an additional or relocation of an
814	814
815	815
816	816
817	817
818	818
819	819	SB2051 - 22 - LRB103 27188 SPS 53558 b
820	820
821	821
822	822	SB2051- 23 -LRB103 27188 SPS 53558 b SB2051 - 23 - LRB103 27188 SPS 53558 b
823	823	SB2051 - 23 - LRB103 27188 SPS 53558 b
824	824	1 existing franchise and shall state that the dealer has
825	825	2 only 30 days from the date of receipt of the notice to file
826	826	3 with the Motor Vehicle Review Board a written protest
827	827	4 against the proposed action. Unless the parties agree upon
828	828	5 the grant or establishment of the additional or relocated
829	829	6 franchise within 30 days from the date the notice was
830	830	7 received by the existing franchisee of the same line make
831	831	8 or any person entitled to receive such notice, the
832	832	9 franchisee or other person may file with the Board a
833	833	10 written protest against the grant or establishment of the
834	834	11 proposed additional or relocated franchise.
835	835	12 When a protest has been timely filed, the Board shall
836	836	13 enter an order fixing a date (within 60 days of the date of
837	837	14 the order), time, and place of a hearing on the protest,
838	838	15 required under Sections 12 and 29 of this Act, and send by
839	839	16 certified or registered mail, return receipt requested, a
840	840	17 copy of the order to the manufacturer that filed the
841	841	18 notice of intention to grant or establish the proposed
842	842	19 additional or relocated franchise and to the protesting
843	843	20 dealer or dealers of the same line make whose relevant
844	844	21 market area includes the proposed location of the
845	845	22 additional or relocated franchise.
846	846	23 When more than one protest is filed against the grant
847	847	24 or establishment of the additional or relocated franchise
848	848	25 of the same line make, the Board may consolidate the
849	849	26 hearings to expedite disposition of the matter. The
850	850
851	851
852	852
853	853
854	854
855	855	SB2051 - 23 - LRB103 27188 SPS 53558 b
856	856
857	857
858	858	SB2051- 24 -LRB103 27188 SPS 53558 b SB2051 - 24 - LRB103 27188 SPS 53558 b
859	859	SB2051 - 24 - LRB103 27188 SPS 53558 b
860	860	1 manufacturer shall have the burden of proof to establish
861	861	2 that good cause exists to allow the grant or establishment
862	862	3 of the additional or relocated franchise. The manufacturer
863	863	4 may not grant or establish the additional franchise or
864	864	5 relocate the existing franchise before the hearing process
865	865	6 is concluded as prescribed by this Act, and thereafter if
866	866	7 the Board determines that the manufacturer has failed to
867	867	8 meet its burden of proof and that good cause does not exist
868	868	9 to allow the grant or establishment of the additional
869	869	10 franchise or relocation of the existing franchise.
870	870	11 The determination whether good cause exists for
871	871	12 allowing the grant or establishment of an additional
872	872	13 franchise or relocated existing franchise, shall be made
873	873	14 by the Board under subsection (c) of Section 12 of this
874	874	15 Act. If the manufacturer seeks to enter into a contract,
875	875	16 agreement or other arrangement with any person,
876	876	17 establishing any additional motor vehicle dealership or
877	877	18 other facility, limited to the sale of factory repurchase
878	878	19 vehicles or late model vehicles, then the manufacturer
879	879	20 shall follow the notice procedures set forth in this
880	880	21 Section and the determination whether good cause exists
881	881	22 for allowing the proposed agreement shall be made by the
882	882	23 Board under subsection (c) of Section 12, with the
883	883	24 manufacturer having the burden of proof.
884	884	25 A. (Blank).
885	885	26 B. For the purposes of this Section, appointment
886	886
887	887
888	888
889	889
890	890
891	891	SB2051 - 24 - LRB103 27188 SPS 53558 b
892	892
893	893
894	894	SB2051- 25 -LRB103 27188 SPS 53558 b SB2051 - 25 - LRB103 27188 SPS 53558 b
895	895	SB2051 - 25 - LRB103 27188 SPS 53558 b
896	896	1 of a successor motor vehicle dealer at the same
897	897	2 location as its predecessor, or within 2 miles of such
898	898	3 location, or the relocation of an existing dealer or
899	899	4 franchise within 2 miles of the relocating dealer's or
900	900	5 franchisee's existing location, shall not be construed
901	901	6 as a grant, establishment or the entering into of an
902	902	7 additional franchise or selling agreement, or a
903	903	8 relocation of an existing franchise. The reopening of
904	904	9 a motor vehicle dealership that has not been in
905	905	10 operation for 18 months or more shall be deemed the
906	906	11 grant of an additional franchise or selling agreement.
907	907	12 C. This Section does not apply to the relocation
908	908	13 of an existing dealership or franchise in a county
909	909	14 having a population of more than 300,000 persons when
910	910	15 the new location is within the dealer's current
911	911	16 relevant market area, provided the new location is
912	912	17 more than 7 miles from the nearest dealer of the same
913	913	18 line make. This Section does not apply to the
914	914	19 relocation of an existing dealership or franchise in a
915	915	20 county having a population of less than 300,000
916	916	21 persons when the new location is within the dealer's
917	917	22 current relevant market area, provided the new
918	918	23 location is more than 12 miles from the nearest dealer
919	919	24 of the same line make. A dealer that would be farther
920	920	25 away from the new location of an existing dealership
921	921	26 or franchise of the same line make after a relocation
922	922
923	923
924	924
925	925
926	926
927	927	SB2051 - 25 - LRB103 27188 SPS 53558 b
928	928
929	929
930	930	SB2051- 26 -LRB103 27188 SPS 53558 b SB2051 - 26 - LRB103 27188 SPS 53558 b
931	931	SB2051 - 26 - LRB103 27188 SPS 53558 b
932	932	1 may not file a written protest against the relocation
933	933	2 with the Motor Vehicle Review Board.
934	934	3 D. Nothing in this Section shall be construed to
935	935	4 prevent a franchiser from implementing affirmative
936	936	5 action programs providing business opportunities for
937	937	6 minorities or from complying with applicable federal,
938	938	7 State or local law;
939	939	8 (9) to require a motor vehicle dealer to assent to a
940	940	9 release, assignment, novation, waiver or estoppel which
941	941	10 would relieve any person from liability imposed by this
942	942	11 Act;
943	943	12 (10) to prevent or refuse to give effect to the
944	944	13 succession to the ownership or management control of a
945	945	14 dealership by any legatee under the will of a dealer or to
946	946	15 an heir under the laws of descent and distribution of this
947	947	16 State unless the franchisee has designated a successor to
948	948	17 the ownership or management control under the succession
949	949	18 provisions of the franchise. Unless the franchiser, having
950	950	19 the burden of proof, proves that the successor is a person
951	951	20 who is not of good moral character or does not meet the
952	952	21 franchiser's existing and reasonable capital standards
953	953	22 and, with consideration given to the volume of sales and
954	954	23 service of the dealership, uniformly applied minimum
955	955	24 business experience standards in the market area, any
956	956	25 designated successor of a dealer or franchisee may succeed
957	957	26 to the ownership or management control of a dealership
958	958
959	959
960	960
961	961
962	962
963	963	SB2051 - 26 - LRB103 27188 SPS 53558 b
964	964
965	965
966	966	SB2051- 27 -LRB103 27188 SPS 53558 b SB2051 - 27 - LRB103 27188 SPS 53558 b
967	967	SB2051 - 27 - LRB103 27188 SPS 53558 b
968	968	1 under the existing franchise if:
969	969	2 (i) The designated successor gives the
970	970	3 franchiser written notice by certified mail,
971	971	4 return receipt requested, of his or her intention
972	972	5 to succeed to the ownership of the dealer within
973	973	6 60 days of the dealer's death or incapacity; and
974	974	7 (ii) The designated successor agrees to be
975	975	8 bound by all the terms and conditions of the
976	976	9 existing franchise.
977	977	10 Notwithstanding the foregoing, in the event the motor
978	978	11 vehicle dealer or franchisee and manufacturer have duly
979	979	12 executed an agreement concerning succession rights prior
980	980	13 to the dealer's death or incapacitation, the agreement
981	981	14 shall be observed.
982	982	15 (A) If the franchiser intends to refuse to honor
983	983	16 the successor to the ownership of a deceased or
984	984	17 incapacitated dealer or franchisee under an existing
985	985	18 franchise agreement, the franchiser shall send a
986	986	19 letter by certified mail, return receipt requested, to
987	987	20 the designated successor within 60 days from receipt
988	988	21 of a proposal advising of its intent to refuse to honor
989	989	22 the succession and to discontinue the existing
990	990	23 franchise agreement and shall state that the
991	991	24 designated successor only has 30 days from the receipt
992	992	25 of the notice to file with the Motor Vehicle Review
993	993	26 Board a written protest against the proposed action.
994	994
995	995
996	996
997	997
998	998
999	999	SB2051 - 27 - LRB103 27188 SPS 53558 b
1000	1000
1001	1001
1002	1002	SB2051- 28 -LRB103 27188 SPS 53558 b SB2051 - 28 - LRB103 27188 SPS 53558 b
1003	1003	SB2051 - 28 - LRB103 27188 SPS 53558 b
1004	1004	1 The notice shall set forth the specific grounds for
1005	1005	2 the refusal to honor the succession and discontinue
1006	1006	3 the existing franchise agreement.
1007	1007	4 If notice of refusal is not timely served upon the
1008	1008	5 designated successor, the franchise agreement shall
1009	1009	6 continue in effect subject to termination only as
1010	1010	7 otherwise permitted by paragraph (6) of subsection (d)
1011	1011	8 of Section 4 of this Act.
1012	1012	9 Within 30 days from the date the notice was
1013	1013	10 received by the designated successor or any other
1014	1014	11 person entitled to notice, the designee or other
1015	1015	12 person may file with the Board a written protest
1016	1016	13 against the proposed action.
1017	1017	14 When a protest has been timely filed, the Board
1018	1018	15 shall enter an order, fixing a date (within 60 days of
1019	1019	16 the date of the order), time, and place of a hearing on
1020	1020	17 the protest, required under Sections 12 and 29 of this
1021	1021	18 Act, and send by certified mail, return receipt
1022	1022	19 requested, a copy of the order to the franchiser that
1023	1023	20 filed the notice of intention of the proposed action
1024	1024	21 and to the protesting designee or such other person.
1025	1025	22 The manufacturer shall have the burden of proof to
1026	1026	23 establish that good cause exists to refuse to honor
1027	1027	24 the succession and discontinue the existing franchise
1028	1028	25 agreement. The determination whether good cause exists
1029	1029	26 to refuse to honor the succession shall be made by the
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035	SB2051 - 28 - LRB103 27188 SPS 53558 b
1036	1036
1037	1037
1038	1038	SB2051- 29 -LRB103 27188 SPS 53558 b SB2051 - 29 - LRB103 27188 SPS 53558 b
1039	1039	SB2051 - 29 - LRB103 27188 SPS 53558 b
1040	1040	1 Board under subdivision (B) of this paragraph (10).
1041	1041	2 The manufacturer shall not refuse to honor the
1042	1042	3 succession or discontinue the existing franchise
1043	1043	4 agreement before the hearing process is concluded as
1044	1044	5 prescribed by this Act, and thereafter if the Board
1045	1045	6 determines that it has failed to meet its burden of
1046	1046	7 proof and that good cause does not exist to refuse to
1047	1047	8 honor the succession and discontinue the existing
1048	1048	9 franchise agreement.
1049	1049	10 (B) No manufacturer shall impose any conditions
1050	1050	11 upon honoring the succession and continuing the
1051	1051	12 existing franchise agreement with the designated
1052	1052	13 successor other than that the franchisee has
1053	1053	14 designated a successor to the ownership or management
1054	1054	15 control under the succession provisions of the
1055	1055	16 franchise, or that the designated successor is of good
1056	1056	17 moral character or meets the reasonable capital
1057	1057	18 standards and, with consideration given to the volume
1058	1058	19 of sales and service of the dealership, uniformly
1059	1059	20 applied minimum business experience standards in the
1060	1060	21 market area;
1061	1061	22 (11) to prevent or refuse to approve a proposal to
1062	1062	23 establish a successor franchise at a location previously
1063	1063	24 approved by the franchiser when submitted with the
1064	1064	25 voluntary termination by the existing franchisee unless
1065	1065	26 the successor franchisee would not otherwise qualify for a
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071	SB2051 - 29 - LRB103 27188 SPS 53558 b
1072	1072
1073	1073
1074	1074	SB2051- 30 -LRB103 27188 SPS 53558 b SB2051 - 30 - LRB103 27188 SPS 53558 b
1075	1075	SB2051 - 30 - LRB103 27188 SPS 53558 b
1076	1076	1 new motor vehicle dealer's license under the Illinois
1077	1077	2 Vehicle Code or unless the franchiser, having the burden
1078	1078	3 of proof, proves that such proposed successor is not of
1079	1079	4 good moral character or does not meet the franchiser's
1080	1080	5 existing and reasonable capital standards and, with
1081	1081	6 consideration given to the volume of sales and service of
1082	1082	7 the dealership, uniformly applied minimum business
1083	1083	8 experience standards in the market area. However, when
1084	1084	9 such a rejection of a proposal is made, the manufacturer
1085	1085	10 shall give written notice of its reasons to the franchisee
1086	1086	11 within 60 days of receipt by the manufacturer of the
1087	1087	12 proposal. However, nothing herein shall be construed to
1088	1088	13 prevent a franchiser from implementing affirmative action
1089	1089	14 programs providing business opportunities for minorities,
1090	1090	15 or from complying with applicable federal, State or local
1091	1091	16 law;
1092	1092	17 (12) to prevent or refuse to grant a franchise to a
1093	1093	18 person because such person owns, has investment in or
1094	1094	19 participates in the management of or holds a franchise for
1095	1095	20 the sale of another make or line of motor vehicles within 7
1096	1096	21 miles of the proposed franchise location in a county
1097	1097	22 having a population of more than 300,000 persons, or
1098	1098	23 within 12 miles of the proposed franchise location in a
1099	1099	24 county having a population of less than 300,000 persons;
1100	1100	25 (13) to prevent or attempt to prevent any new motor
1101	1101	26 vehicle dealer from establishing any additional motor
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107	SB2051 - 30 - LRB103 27188 SPS 53558 b
1108	1108
1109	1109
1110	1110	SB2051- 31 -LRB103 27188 SPS 53558 b SB2051 - 31 - LRB103 27188 SPS 53558 b
1111	1111	SB2051 - 31 - LRB103 27188 SPS 53558 b
1112	1112	1 vehicle dealership or other facility limited to the sale
1113	1113	2 of factory repurchase vehicles or late model vehicles or
1114	1114	3 otherwise offering for sale factory repurchase vehicles of
1115	1115	4 the same line make at an existing franchise by failing to
1116	1116	5 make available any contract, agreement or other
1117	1117	6 arrangement which is made available or otherwise offered
1118	1118	7 to any person; or
1119	1119	8 (14) to exercise a right of first refusal or other
1120	1120	9 right to acquire a franchise from a dealer. , unless the
1121	1121	10 manufacturer:
1122	1122	11 (A) notifies the dealer in writing that it intends
1123	1123	12 to exercise its right to acquire the franchise not
1124	1124	13 later than 60 days after the manufacturer's or
1125	1125	14 distributor's receipt of a notice of the proposed
1126	1126	15 transfer from the dealer and all information and
1127	1127	16 documents reasonably and customarily required by
1128	1128	17 the manufacturer or distributor supporting the
1129	1129	18 proposed transfer;
1130	1130	19 (B) pays to the dealer the same or greater
1131	1131	20 consideration as the dealer has contracted to receive
1132	1132	21 in connection with the proposed transfer or sale of
1133	1133	22 all or substantially all of the dealership assets,
1134	1134	23 stock, or other ownership interest, including the
1135	1135	24 purchase or lease of all real property, leasehold, or
1136	1136	25 improvements related to the transfer or sale of the
1137	1137	26 dealership. Upon exercise of the right of first
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142
1143	1143	SB2051 - 31 - LRB103 27188 SPS 53558 b
1144	1144
1145	1145
1146	1146	SB2051- 32 -LRB103 27188 SPS 53558 b SB2051 - 32 - LRB103 27188 SPS 53558 b
1147	1147	SB2051 - 32 - LRB103 27188 SPS 53558 b
1148	1148	1 refusal or such other right, the manufacturer or
1149	1149	2 distributor shall have the right to assign the lease
1150	1150	3 or to convey the real property;
1151	1151	4 (C) assumes all of the duties, obligations, and
1152	1152	5 liabilities contained in the agreements that were to
1153	1153	6 be assumed by the proposed transferee and with respect
1154	1154	7 to which the manufacturer or distributor exercised the
1155	1155	8 right of first refusal or other right to acquire the
1156	1156	9 franchise;
1157	1157	10 (D) reimburses the proposed transferee for all
1158	1158	11 reasonable expenses incurred in evaluating,
1159	1159	12 investigating, and negotiating the transfer of the
1160	1160	13 dealership prior to the manufacturer's or
1161	1161	14 distributor's exercise of its right of first refusal
1162	1162	15 or other right to acquire the dealership. For purposes
1163	1163	16 of this paragraph, "reasonable expenses" includes the
1164	1164	17 usual and customary legal and accounting fees charged
1165	1165	18 for similar work, as well as expenses associated with
1166	1166	19 the evaluation and investigation of any real property
1167	1167	20 on which the dealership is operated. The proposed
1168	1168	21 transferee shall submit an itemized list of its
1169	1169	22 expenses to the manufacturer or distributor not later
1170	1170	23 than 30 days after the manufacturer's or distributor's
1171	1171	24 exercise of the right of first refusal or other right
1172	1172	25 to acquire the motor vehicle franchise. The
1173	1173	26 manufacturer or distributor shall reimburse the
1174	1174
1175	1175
1176	1176
1177	1177
1178	1178
1179	1179	SB2051 - 32 - LRB103 27188 SPS 53558 b
1180	1180
1181	1181
1182	1182	SB2051- 33 -LRB103 27188 SPS 53558 b SB2051 - 33 - LRB103 27188 SPS 53558 b
1183	1183	SB2051 - 33 - LRB103 27188 SPS 53558 b
1184	1184	1 proposed transferee for its expenses not later than 90
1185	1185	2 days after receipt of the itemized list. A
1186	1186	3 manufacturer or distributor may request to be provided
1187	1187	4 with the itemized list of expenses before exercising
1188	1188	5 the manufacturer's or distributor's right of first
1189	1189	6 refusal.
1190	1190	7 Except as provided in this paragraph (14), neither the
1191	1191	8 selling dealer nor the manufacturer or distributor shall
1192	1192	9 have any liability to any person as a result of a
1193	1193	10 manufacturer or distributor exercising its right of first
1194	1194	11 refusal.
1195	1195	12 For the purpose of this paragraph, "proposed
1196	1196	13 transferee" means the person to whom the franchise would
1197	1197	14 have been transferred to, or was proposed to be
1198	1198	15 transferred to, had the right of first refusal or other
1199	1199	16 right to acquire the franchise not been exercised by the
1200	1200	17 manufacturer or distributor.
1201	1201	18 (f) It is deemed a violation for a manufacturer, a
1202	1202	19 distributor, a wholesaler, a distributor branch or division, a
1203	1203	20 factory branch or division, or a wholesale branch or division,
1204	1204	21 or officer, agent, broker, shareholder, except a shareholder
1205	1205	22 of 1% or less of the outstanding shares of any class of
1206	1206	23 securities of a manufacturer, distributor, or wholesaler which
1207	1207	24 is a publicly traded corporation, or other representative,
1208	1208	25 directly or indirectly, to own or operate a place of business
1209	1209	26 as a motor vehicle franchisee or motor vehicle financing
1210	1210
1211	1211
1212	1212
1213	1213
1214	1214
1215	1215	SB2051 - 33 - LRB103 27188 SPS 53558 b
1216	1216
1217	1217
1218	1218	SB2051- 34 -LRB103 27188 SPS 53558 b SB2051 - 34 - LRB103 27188 SPS 53558 b
1219	1219	SB2051 - 34 - LRB103 27188 SPS 53558 b
1220	1220	1 affiliate, except that, this subsection shall not prohibit:
1221	1221	2 (1) the ownership or operation of a place of business
1222	1222	3 by a manufacturer, distributor, or wholesaler for a
1223	1223	4 period, not to exceed 18 months, during the transition
1224	1224	5 from one motor vehicle franchisee to another;
1225	1225	6 (2) the investment in a motor vehicle franchisee by a
1226	1226	7 manufacturer, distributor, or wholesaler if the investment
1227	1227	8 is for the sole purpose of enabling a partner or
1228	1228	9 shareholder in that motor vehicle franchisee to acquire an
1229	1229	10 interest in that motor vehicle franchisee and that partner
1230	1230	11 or shareholder is not otherwise employed by or associated
1231	1231	12 with the manufacturer, distributor, or wholesaler and
1232	1232	13 would not otherwise have the requisite capital investment
1233	1233	14 funds to invest in the motor vehicle franchisee, and has
1234	1234	15 the right to purchase the entire equity interest of the
1235	1235	16 manufacturer, distributor, or wholesaler in the motor
1236	1236	17 vehicle franchisee within a reasonable period of time not
1237	1237	18 to exceed 5 years; or
1238	1238	19 (3) the ownership or operation of a place of business
1239	1239	20 by a manufacturer that manufactures only diesel engines
1240	1240	21 for installation in trucks having a gross vehicle weight
1241	1241	22 rating of more than 16,000 pounds that are required to be
1242	1242	23 registered under the Illinois Vehicle Code, provided that:
1243	1243	24 (A) the manufacturer does not otherwise
1244	1244	25 manufacture, distribute, or sell motor vehicles as
1245	1245	26 defined under Section 1-217 of the Illinois Vehicle
1246	1246
1247	1247
1248	1248
1249	1249
1250	1250
1251	1251	SB2051 - 34 - LRB103 27188 SPS 53558 b
1252	1252
1253	1253
1254	1254	SB2051- 35 -LRB103 27188 SPS 53558 b SB2051 - 35 - LRB103 27188 SPS 53558 b
1255	1255	SB2051 - 35 - LRB103 27188 SPS 53558 b
1256	1256	1 Code;
1257	1257	2 (B) the manufacturer owned a place of business and
1258	1258	3 it was in operation as of January 1, 2016;
1259	1259	4 (C) the manufacturer complies with all obligations
1260	1260	5 owed to dealers that are not owned, operated, or
1261	1261	6 controlled by the manufacturer, including, but not
1262	1262	7 limited to those obligations arising pursuant to
1263	1263	8 Section 6;
1264	1264	9 (D) to further avoid any acts or practices, the
1265	1265	10 effect of which may be to lessen or eliminate
1266	1266	11 competition, the manufacturer provides to dealers on
1267	1267	12 substantially equal terms access to all support for
1268	1268	13 completing repairs, including, but not limited to,
1269	1269	14 parts and assemblies, training, and technical service
1270	1270	15 bulletins, and other information concerning repairs
1271	1271	16 that the manufacturer provides to facilities that are
1272	1272	17 owned, operated, or controlled by the manufacturer;
1273	1273	18 and
1274	1274	19 (E) the manufacturer does not require that
1275	1275	20 warranty repair work be performed by a
1276	1276	21 manufacturer-owned repair facility and the
1277	1277	22 manufacturer provides any dealer that has an agreement
1278	1278	23 with the manufacturer to sell and perform warranty
1279	1279	24 repairs on the manufacturer's engines the opportunity
1280	1280	25 to perform warranty repairs on those engines,
1281	1281	26 regardless of whether the dealer sold the truck into
1282	1282
1283	1283
1284	1284
1285	1285
1286	1286
1287	1287	SB2051 - 35 - LRB103 27188 SPS 53558 b
1288	1288
1289	1289
1290	1290	SB2051- 36 -LRB103 27188 SPS 53558 b SB2051 - 36 - LRB103 27188 SPS 53558 b
1291	1291	SB2051 - 36 - LRB103 27188 SPS 53558 b
1292	1292	1 which the engine was installed.
1293	1293	2 (g) Notwithstanding the terms, provisions, or conditions
1294	1294	3 of any agreement or waiver, it shall be deemed a violation for
1295	1295	4 a manufacturer, a distributor, a wholesaler, a distributor
1296	1296	5 branch or division, a factory branch or division, or a
1297	1297	6 wholesale branch or division, or officer, agent or other
1298	1298	7 representative thereof, to directly or indirectly condition
1299	1299	8 the awarding of a franchise to a prospective new motor vehicle
1300	1300	9 dealer, the addition of a line make or franchise to an existing
1301	1301	10 dealer, the renewal of a franchise of an existing dealer, the
1302	1302	11 approval of the relocation of an existing dealer's facility,
1303	1303	12 or the approval of the sale or transfer of the ownership of a
1304	1304	13 franchise on the willingness of a dealer, proposed new dealer,
1305	1305	14 or owner of an interest in the dealership facility to enter
1306	1306	15 into a site control agreement or exclusive use agreement
1307	1307	16 unless separate and reasonable consideration was offered and
1308	1308	17 accepted for that agreement.
1309	1309	18 For purposes of this subsection (g), the terms "site
1310	1310	19 control agreement" and "exclusive use agreement" include any
1311	1311	20 agreement that has the effect of either (i) requiring that the
1312	1312	21 dealer establish or maintain exclusive dealership facilities;
1313	1313	22 or (ii) restricting the ability of the dealer, or the ability
1314	1314	23 of the dealer's lessor in the event the dealership facility is
1315	1315	24 being leased, to transfer, sell, lease, or change the use of
1316	1316	25 the dealership premises, whether by sublease, lease,
1317	1317	26 collateral pledge of lease, or other similar agreement. "Site
1318	1318
1319	1319
1320	1320
1321	1321
1322	1322
1323	1323	SB2051 - 36 - LRB103 27188 SPS 53558 b
1324	1324
1325	1325
1326	1326	SB2051- 37 -LRB103 27188 SPS 53558 b SB2051 - 37 - LRB103 27188 SPS 53558 b
1327	1327	SB2051 - 37 - LRB103 27188 SPS 53558 b
1328	1328	1 control agreement" and "exclusive use agreement" also include
1329	1329	2 a manufacturer restricting the ability of a dealer to
1330	1330	3 transfer, sell, or lease the dealership premises by right of
1331	1331	4 first refusal to purchase or lease, option to purchase, or
1332	1332	5 option to lease if the transfer, sale, or lease of the
1333	1333	6 dealership premises is to a person who is an immediate family
1334	1334	7 member of the dealer. For the purposes of this subsection (g),
1335	1335	8 "immediate family member" means a spouse, parent, son,
1336	1336	9 daughter, son-in-law, daughter-in-law, brother, and sister.
1337	1337	10 If a manufacturer exercises any right of first refusal to
1338	1338	11 purchase or lease or option to purchase or lease with regard to
1339	1339	12 a transfer, sale, or lease of the dealership premises to a
1340	1340	13 person who is not an immediate family member of the dealer,
1341	1341	14 then (1) within 60 days from the receipt of the completed
1342	1342	15 application forms generally utilized by a manufacturer to
1343	1343	16 conduct its review and a copy of all agreements regarding the
1344	1344	17 proposed transfer, the manufacturer must notify the dealer of
1345	1345	18 its intent to exercise the right of first refusal to purchase
1346	1346	19 or lease or option to purchase or lease and (2) the exercise of
1347	1347	20 the right of first refusal to purchase or lease or option to
1348	1348	21 purchase or lease must result in the dealer receiving
1349	1349	22 consideration, terms, and conditions that either are the same
1350	1350	23 as or greater than that which they have contracted to receive
1351	1351	24 in connection with the proposed transfer, sale, or lease of
1352	1352	25 the dealership premises.
1353	1353	26 Any provision contained in any agreement entered into on
1354	1354
1355	1355
1356	1356
1357	1357
1358	1358
1359	1359	SB2051 - 37 - LRB103 27188 SPS 53558 b
1360	1360
1361	1361
1362	1362	SB2051- 38 -LRB103 27188 SPS 53558 b SB2051 - 38 - LRB103 27188 SPS 53558 b
1363	1363	SB2051 - 38 - LRB103 27188 SPS 53558 b
1364	1364	1 or after November 25, 2009 (the effective date of Public Act
1365	1365	2 96-824) that is inconsistent with the provisions of this
1366	1366	3 subsection (g) shall be voidable at the election of the
1367	1367	4 affected dealer, prospective dealer, or owner of an interest
1368	1368	5 in the dealership facility.
1369	1369	6 (h) For purposes of this subsection:
1370	1370	7 "Successor manufacturer" means any motor vehicle
1371	1371	8 manufacturer that, on or after January 1, 2009, acquires,
1372	1372	9 succeeds to, or assumes any part of the business of another
1373	1373	10 manufacturer, referred to as the "predecessor manufacturer",
1374	1374	11 as the result of any of the following:
1375	1375	12 (i) A change in ownership, operation, or control of
1376	1376	13 the predecessor manufacturer by sale or transfer of
1377	1377	14 assets, corporate stock or other equity interest,
1378	1378	15 assignment, merger, consolidation, combination, joint
1379	1379	16 venture, redemption, court-approved sale, operation of law
1380	1380	17 or otherwise.
1381	1381	18 (ii) The termination, suspension, or cessation of a
1382	1382	19 part or all of the business operations of the predecessor
1383	1383	20 manufacturer.
1384	1384	21 (iii) The discontinuance of the sale of the product
1385	1385	22 line.
1386	1386	23 (iv) A change in distribution system by the
1387	1387	24 predecessor manufacturer, whether through a change in
1388	1388	25 distributor or the predecessor manufacturer's decision to
1389	1389	26 cease conducting business through a distributor
1390	1390
1391	1391
1392	1392
1393	1393
1394	1394
1395	1395	SB2051 - 38 - LRB103 27188 SPS 53558 b
1396	1396
1397	1397
1398	1398	SB2051- 39 -LRB103 27188 SPS 53558 b SB2051 - 39 - LRB103 27188 SPS 53558 b
1399	1399	SB2051 - 39 - LRB103 27188 SPS 53558 b
1400	1400	1 altogether.
1401	1401	2 "Former Franchisee" means a new motor vehicle dealer that
1402	1402	3 has entered into a franchise with a predecessor manufacturer
1403	1403	4 and that has either:
1404	1404	5 (i) entered into a termination agreement or deferred
1405	1405	6 termination agreement with a predecessor or successor
1406	1406	7 manufacturer related to such franchise; or
1407	1407	8 (ii) has had such franchise canceled, terminated,
1408	1408	9 nonrenewed, noncontinued, rejected, nonassumed, or
1409	1409	10 otherwise ended.
1410	1410	11 For a period of 3 years from: (i) the date that a successor
1411	1411	12 manufacturer acquires, succeeds to, or assumes any part of the
1412	1412	13 business of a predecessor manufacturer; (ii) the last day that
1413	1413	14 a former franchisee is authorized to remain in business as a
1414	1414	15 franchised dealer with respect to a particular franchise under
1415	1415	16 a termination agreement or deferred termination agreement with
1416	1416	17 a predecessor or successor manufacturer; (iii) the last day
1417	1417	18 that a former franchisee that was cancelled, terminated,
1418	1418	19 nonrenewed, noncontinued, rejected, nonassumed, or otherwise
1419	1419	20 ended by a predecessor or successor manufacturer is authorized
1420	1420	21 to remain in business as a franchised dealer with respect to a
1421	1421	22 particular franchise; or (iv) November 25, 2009 (the effective
1422	1422	23 date of Public Act 96-824), whichever is latest, it shall be
1423	1423	24 unlawful for such successor manufacturer to enter into a same
1424	1424	25 line make franchise with any person or to permit the
1425	1425	26 relocation of any existing same line make franchise, for a
1426	1426
1427	1427
1428	1428
1429	1429
1430	1430
1431	1431	SB2051 - 39 - LRB103 27188 SPS 53558 b
1432	1432
1433	1433
1434	1434	SB2051- 40 -LRB103 27188 SPS 53558 b SB2051 - 40 - LRB103 27188 SPS 53558 b
1435	1435	SB2051 - 40 - LRB103 27188 SPS 53558 b
1436	1436	1 line make of the predecessor manufacturer that would be
1437	1437	2 located or relocated within the relevant market area of a
1438	1438	3 former franchisee who owned or leased a dealership facility in
1439	1439	4 that relevant market area without first offering the
1440	1440	5 additional or relocated franchise to the former franchisee, or
1441	1441	6 the designated successor of such former franchisee in the
1442	1442	7 event the former franchisee is deceased or a person with a
1443	1443	8 disability, at no cost and without any requirements or
1444	1444	9 restrictions other than those imposed generally on the
1445	1445	10 manufacturer's other franchisees at that time, unless one of
1446	1446	11 the following applies:
1447	1447	12 (1) As a result of the former franchisee's
1448	1448	13 cancellation, termination, noncontinuance, or nonrenewal
1449	1449	14 of the franchise, the predecessor manufacturer had
1450	1450	15 consolidated the line make with another of its line makes
1451	1451	16 for which the predecessor manufacturer had a franchisee
1452	1452	17 with a then-existing dealership facility located within
1453	1453	18 that relevant market area.
1454	1454	19 (2) The successor manufacturer has paid the former
1455	1455	20 franchisee, or the designated successor of such former
1456	1456	21 franchisee in the event the former franchisee is deceased
1457	1457	22 or a person with a disability, the fair market value of the
1458	1458	23 former franchisee's franchise on (i) the date the
1459	1459	24 franchiser announces the action which results in the
1460	1460	25 termination, cancellation, or nonrenewal; or (ii) the date
1461	1461	26 the action which results in termination, cancellation, or
1462	1462
1463	1463
1464	1464
1465	1465
1466	1466
1467	1467	SB2051 - 40 - LRB103 27188 SPS 53558 b
1468	1468
1469	1469
1470	1470	SB2051- 41 -LRB103 27188 SPS 53558 b SB2051 - 41 - LRB103 27188 SPS 53558 b
1471	1471	SB2051 - 41 - LRB103 27188 SPS 53558 b
1472	1472	1 nonrenewal first became general knowledge; or (iii) the
1473	1473	2 day 12 months prior to the date on which the notice of
1474	1474	3 termination, cancellation, or nonrenewal is issued,
1475	1475	4 whichever amount is higher. Payment is due within 90 days
1476	1476	5 of the effective date of the termination, cancellation, or
1477	1477	6 nonrenewal. If the termination, cancellation, or
1478	1478	7 nonrenewal is due to a manufacturer's change in
1479	1479	8 distributors, the manufacturer may avoid paying fair
1480	1480	9 market value to the dealer if the new distributor or the
1481	1481	10 manufacturer offers the dealer a franchise agreement with
1482	1482	11 terms acceptable to the dealer.
1483	1483	12 (3) The successor manufacturer proves that it would
1484	1484	13 have had good cause to terminate the franchise agreement
1485	1485	14 of the former franchisee, or the successor of the former
1486	1486	15 franchisee under item (e)(10) in the event that the former
1487	1487	16 franchisee is deceased or a person with a disability. The
1488	1488	17 determination of whether the successor manufacturer would
1489	1489	18 have had good cause to terminate the franchise agreement
1490	1490	19 of the former franchisee, or the successor of the former
1491	1491	20 franchisee, shall be made by the Board under subsection
1492	1492	21 (d) of Section 12. A successor manufacturer that seeks to
1493	1493	22 assert that it would have had good cause to terminate a
1494	1494	23 former franchisee, or the successor of the former
1495	1495	24 franchisee, must file a petition seeking a hearing on this
1496	1496	25 issue before the Board and shall have the burden of
1497	1497	26 proving that it would have had good cause to terminate the
1498	1498
1499	1499
1500	1500
1501	1501
1502	1502
1503	1503	SB2051 - 41 - LRB103 27188 SPS 53558 b
1504	1504
1505	1505
1506	1506	SB2051- 42 -LRB103 27188 SPS 53558 b SB2051 - 42 - LRB103 27188 SPS 53558 b
1507	1507	SB2051 - 42 - LRB103 27188 SPS 53558 b
1508	1508	1 former franchisee or the successor of the former
1509	1509	2 franchisee. No successor dealer, other than the former
1510	1510	3 franchisee, may be appointed or franchised by the
1511	1511	4 successor manufacturer within the relevant market area of
1512	1512	5 the former franchisee until the Board has held a hearing
1513	1513	6 and rendered a determination on the issue of whether the
1514	1514	7 successor manufacturer would have had good cause to
1515	1515	8 terminate the former franchisee.
1516	1516	9 In the event that a successor manufacturer attempts to
1517	1517	10 enter into a same line make franchise with any person or to
1518	1518	11 permit the relocation of any existing line make franchise
1519	1519	12 under this subsection (h) at a location that is within the
1520	1520	13 relevant market area of 2 or more former franchisees, then the
1521	1521	14 successor manufacturer may not offer it to any person other
1522	1522	15 than one of those former franchisees unless the successor
1523	1523	16 manufacturer can prove that at least one of the 3 exceptions in
1524	1524	17 items (1), (2), and (3) of this subsection (h) applies to each
1525	1525	18 of those former franchisees.
1526	1526	19 (Source: P.A. 102-433, eff. 1-1-22.)
1527	1527	20 Section 99. Effective date. This Act takes effect upon
1528	1528	21 becoming law.
1529	1529
1530	1530
1531	1531
1532	1532
1533	1533
1534	1534	SB2051 - 42 - LRB103 27188 SPS 53558 b