71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
HA to A-Eng. SB 827
LC 3299/SB 827-A4
HOUSE AMENDMENTS TO
A-ENGROSSED SENATE BILL 827
By COMMITTEE ON SMART GROWTH AND COMMERCE
May 23
On page 1 of the printed A-engrossed bill, line 2, after the
semicolon delete the rest of the line and insert 'amending ORS
650.130 and section 4, chapter __, Oregon Laws 2001 (Enrolled
Senate Bill 826); and repealing section 2, chapter __, Oregon
Laws 2001 (Enrolled Senate Bill 826).'.
Delete lines 4 through 27 and delete pages 2 through 5 and
insert:
' { + SECTION 1. + } { + If Senate Bill 826 becomes law,
section 2, chapter ___, Oregon Laws 2001 (Enrolled Senate Bill
826) (amending ORS 650.130), is repealed and ORS 650.130 is
amended to read: + }
' 650.130. Notwithstanding the terms of any franchise or other
agreement, it shall be unlawful for any manufacturer, distributor
or importer to:
' (1) Require or attempt to require a dealer to accept delivery
of any motor vehicle, part, accessory or any other commodity not
voluntarily ordered by the dealer. This subsection shall not
apply to recall safety and emissions campaign parts not
voluntarily ordered by the dealer or any vehicle features, parts,
accessories or other components mandated by federal, state or
local law.
' (2) Coerce or attempt to coerce a dealer to enter any
agreement or sales promotion program by threatening to cancel the
franchise of the dealer.
' (3) Refuse or fail to deliver, within a reasonable time and
in a reasonable quantity, any new motor vehicle, part or
accessory covered by the franchise if the vehicle, part or
accessory is advertised as being available for delivery or is
being delivered to another dealer. This subsection is not
violated, however, if a failure to deliver is the result of a
cause beyond the control of the manufacturer, distributor or
importer.
' (4) Prevent or attempt to prevent a dealer from making
reasonable changes in the capital structure of a dealership or
the means by which the dealership is financed, provided that the
dealer meets any reasonable capital requirement of the
manufacturer, distributor or importer.
' (5) Unreasonably refuse to compensate the dealer for work or
services performed and expenses incurred in accordance with the
dealer's delivery, preparation and warranty obligations under the
terms of a franchise or agreement.
' (6) Coerce or attempt to coerce a dealer to participate
monetarily in any advertising campaign or contest, or purchase
any promotional materials, display devices or display decorations
or materials at the expense of the dealer.
' (7) Establish a maximum price a dealer may charge for motor
vehicles { + with a gross vehicle weight rating of less than
8,500 pounds + }.
' (8) Initiate an audit to determine the validity of paid
claims for dealer compensation or any charge-backs for warranty
parts or service compensation more than one year following the
date of payment. Parties shall cooperate to ensure that permitted
audits are concluded within 90 days of initiation.
' (9) Initiate an audit to determine the validity of paid
claims for dealer compensation or any charge-backs for consumer
or dealer incentives more than two years following the date of
payment. Parties shall cooperate to ensure that permitted audits
are concluded within 90 days of initiation.
' (10) Unfairly compete with a dealer in any matters governed
by the franchise including, but not limited to, the sale or
allocation of vehicles or other franchisor products, or the
execution of dealer programs or benefits. This subsection applies
if the manufacturer, distributor or importer { - owns or - }
{ + has an ownership interest in, operates or + } controls { + ,
directly or indirectly, + } a business that is a dealer in this
state.
' { + (11) Have an ownership interest in, operate or control,
directly or indirectly, a business that sells or leases a motor
vehicle to a person in Oregon except to a franchisee of the
manufacturer, distributor or importer. It is not a violation of
this subsection if:
' (a) A manufacturer, distributor or importer:
' (A) Has an ownership interest in, operates or controls,
directly or indirectly, a business that is a dealership in this
state and is a business that:
' (i) A franchisee owned, operated or controlled before the
manufacturer, distributor or importer acquired the ownership
interest in or began to operate or control the business;
' (ii) The manufacturer, distributor or importer maintains an
ownership interest in, operates or controls for no more than two
years; and
' (iii) While the manufacturer, distributor or importer
maintains an ownership interest in, operates or controls the
business, the manufacturer, distributor or importer offers the
business for sale to any qualified independent person at a fair
and reasonable price.
' (B) Has a part ownership interest in, operates or controls,
directly or indirectly, a business that is a dealership in this
state and another person:
' (i) Manages the day-to-day operations and business of the
dealership;
' (ii) Has made, or is obligated to make within 12 months, a
significant capital investment in the dealership that is subject
to loss;
' (iii) Has an ownership interest in the dealership; and
' (iv) Operates the dealership under a franchise through which
the person will within 15 years acquire full ownership of the
dealership under reasonable terms and conditions.
' (C) As of January 1, 2000, had an ownership interest in,
operated or controlled, directly or indirectly, a business that
is a dealership in this state that sells motor vehicles with a
gross vehicle weight rating of 8,500 pounds or more.
' (D) Has an ownership interest in, operates or controls,
directly or indirectly, a business that is a dealership in this
state, the primary business of which is the leasing or renting of
motor vehicles for a period of 12 months or less, and the motor
vehicles that the business sells have been:
' (i) Owned by the business for 180 days or more; or
' (ii) Driven for more than 10,000 miles.
' (b) A manufacturer has a part ownership interest in, operates
or controls, directly or indirectly, a business that is a
dealership in this state that buys, sells, leases, trades,
stores, takes on consignment or in any other manner deals
exclusively in a single line-make of the manufacturer and:
' (A) The manufacturer has, directly or indirectly, no more
than 45 percent of the ownership interest in the dealership;
' (B) When the manufacturer acquires an ownership interest in
the dealership, the distance from the manufacturer's dealership
to the dealership of a dealer that buys, sells, leases, trades,
stores, takes on consignment or in any other manner deals in the
single line-make of the manufacturer and in which the
manufacturer has no ownership interest is not less than 15 miles;
' (C) The manufacturer complies with the area restrictions in
ORS 650.120 and 650.150;
' (D) The manufacturer's franchises authorize a dealer of the
single line-make of the manufacturer to operate as many
dealerships within a defined geographic area as the dealer and
manufacturer agree on; and
' (E) On January 1, 2000:
' (i) There were no more than four dealers in the state of the
manufacturer's single line-make; and
' (ii) Of the dealers in this state of the manufacturer's
single line-make, at least one was a franchisee that owned and
operated at least two dealerships within the geographic area
authorized by franchises with the manufacturer.
' (12) Sell or lease a motor vehicle to a person in this state
other than to a business described in subsection (11) of this
section or to a franchisee of the manufacturer, distributor or
importer. It is not a violation of this subsection if:
' (a) The manufacturer, distributor or importer sells or leases
a motor vehicle to:
' (A) An employee, retired employee or family member of an
employee or retired employee of the manufacturer, distributor or
importer;
' (B) A driver training program;
' (C) A nonprofit corporation;
' (D) A qualified vendor;
' (E) A public agency as defined in ORS 537.515;
' (F) A current retail lessee;
' (G) A fleet owner;
' (H) A business acting as a vehicle dealer under ORS chapter
822 that sells motor vehicles only to other vehicle dealers; or
' (I) The customers of a business acting as a vehicle dealer
under ORS chapter 822 that sells motor vehicles only to other
vehicle dealers.
' (b) The sale or lease is by a business in this state, the
primary business of which is the leasing or renting of motor
vehicles for a period of 12 months or less, and the motor
vehicles that the business sells have been:
' (A) Owned by the business for 180 days or more; or
' (B) Driven for more than 10,000 miles. + }
' { - (11) - } { + (13)(a) + } Own, operate or control a
business or enter into any contract, agreement or other written
instrument permitting a person that is not a dealer to be
compensated by the manufacturer, distributor or importer for
performing warranty repairs and services if the business is
located within a dealer's relevant market area.
' { + (b) Paragraph (a) of + } this subsection does not apply
to { + :
' (A) + } Warranty repairs and services { + performed on motor
vehicles with a gross vehicle weight rating of less than 8,500
pounds + } provided for commercial or government fleets
{ - . - } { + ; or
' (B) Warranty repairs and services performed on motor vehicles
with a gross vehicle weight rating of 8,500 pounds or more if,
after the effective date of this 2001 Act, a manufacturer,
distributor or importer of only motor vehicles with a gross
vehicle weight rating of 8,500 pounds or more has:
' (i) Obtained written permission from the dealers in the
relevant market area to perform the repairs or services; or
' (ii) Authorized the repairs or services to be performed by a
person who owns or leases the motor vehicles for use in the
person's business. + }
' { - (12) - } { + (14) + } Terminate, cancel, fail to renew
or fail to approve the sale, transfer or assignment of any
franchise agreement because the dealer owns, has an investment
in, participates in the management of or holds a franchise
agreement with another manufacturer, distributor or importer at a
different dealership site, or has franchises with more than one
manufacturer, distributor or importer sharing the same dealership
site, facilities, personnel or display space before October 23,
1999.
' { + SECTION 2. + } If Senate Bill 826 becomes law, section
4, chapter ___, Oregon Laws 2001 (Enrolled Senate Bill 826), is
amended to read:
' { + Sec. 4. + } The amendments to ORS 650.120 { - ,
650.130 - } and 650.145 by sections 1 { - , 2 - } and 3 { + ,
chapter ___, Oregon Laws 2001 (Enrolled Senate Bill 826), + }
{ - of this 2001 Act - } { + and the amendments to ORS 650.130
by section 1 of this 2001 Act + } apply to conduct occurring on
or after the effective date of { - this 2001 Act - } { +
chapter ___, Oregon Laws 2001 (Enrolled Senate Bill 826) + }.'.
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