HCSHB894--MOTORVEHICLEFRANCHISEPRACTICESACT
SPONSOR: Knight
COMMITTEEACTION:Voted"DoPasswithHCS"bytheStanding
CommitteeonTransportation Infrastructure byavoteof13to0.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
894.
ThisbillmodifiestheMotorVehicleFranchisePracticesAct
(MVFPAct).
Thebillprohibitscertainentitiesfromengaginginthebusiness
ofsellingmotorvehicles,exceptaspermittedbythe
MVFPAct,andspecifiespartiesthatwillhavestandingtoenforce
theprohibitions.
Compensationforlaborandpartsisbasedonrateschargedbythe
franchiseeratherthanonrateschargedbycomparablefranchisees
inthemarket.
Thebillspecifiesthat,claimsnotdisapprovedbythefranchisor
inwritingwithin30dayswillbeconsideredapprovedandmustbe
paidwithin15days,ratherthanwithin10days.
Lastly,thebillspecifiesproceduresforfranchiseestofile
complaintswiththeAdministrative HearingCommission.
Franchiseesmayfileclaimswithin60days,ratherthan30days,
afterreceivinganadversedecisiononaclaimunderthebill.
Franchisorsshallfileananswertothecomplaintwithin30days,
andahearingwillbeheldwithin60daysoftheanswer.Ifthe
Administrative HearingCommissionfindsafranchisorhasviolated
therequirementsofthewarrantystatute,thefranchisorwill
compensatethefranchiseeasrequiredbylaw.
ThisbillissimilartoSCSSB398(2023).
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill.
PROPONENTS: Supporterssaythatweneedtostopmanufacturersfrom
enteringtheretailsalesbusiness.
TestifyinginpersonforthebillwereRepresentative Knight;and
theMoAutoDealersAssociation. OPPONENTS: Therewasnooppositionvoicedtothecommittee.
OTHERS:Otherstestifyingonthebillsaythewaytoprotect
franchisedealersisforthemtohavearelationshipwiththe
manufacturers.
TestifyinginpersononthebillwastheAllianceforAutomotive
Innovation.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.