HB894--MOTORVEHICLEFRANCHISEPRACTICESACT
SPONSOR: Knight
ThisbillmodifiestheMotorVehicleFranchisePracticesAct
(MVFPAct).
Thebillprohibitscertainentitiesfromengaginginthebusiness
ofsellingmotorvehicles,exceptaspermittedbythe
MVFPAct,andspecifiespartiesthatwillhavestandingtoenforce
theprohibitions.
Thebillalsomodifiesprovisionsapplicabletowarrantyservices.
Referencesto"fair"or"reasonable"compensationarereplacedwith
referencesto"commerciallyreasonable"compensation,and
compensationforlabor,service,andpartsisbasedonrates
chargedbythefranchiseeratherthanonrateschargedby
comparablefranchiseesinthemarket.
Thebillspecifiesthat,claimsnotdisapprovedbythefranchisor
inwritingwithin30dayswillbeconsideredapprovedandmustbe
paidwithin15days,ratherthanwithin10days.
Lastly,thebillspecifiesproceduresforfranchiseestofile
complaintswiththeAdministrative HearingCommission.
Franchiseesmayfileclaimswithin90days,ratherthan30days,
afterreceivinganadversedecisiononaclaimunderthebill.
Franchisorsshallfileananswertothecomplaintwithin20days,
andahearingwillbeheldwithin60daysofthecomplaint. Ifthe
Administrative HearingCommissionfindsafranchisorhasviolated
therequirementsofthewarrantystatute,thefranchisorwill
compensatethefranchiseeasrequiredbylaw.