0001| HOUSE BILL 47
|
0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
|
0003| INTRODUCED BY
|
0004| MURRAY RYAN
|
0005|
|
0006|
|
0007|
|
0008| FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
|
0009|
|
0010| AN ACT
|
0011| RELATING TO MOTOR VEHICLE DEALER FRANCHISES; ALLOWING AND
|
0012| PROHIBITING CERTAIN ACTS.
|
0013|
|
0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
|
0015| Section 1. Section 57-16-3 NMSA 1978 (being Laws 1973,
|
0016| Chapter 6, Section 3, as amended) is amended to read:
|
0017| "57-16-3. DEFINITIONS.--As used in Chapter 57,
|
0018| Article 16 NMSA 1978:
|
0019| A. "motor vehicle" means every self-propelled
|
0020| vehicle, having two or more wheels, by which a person or
|
0021| property may be transported on a public highway, and includes
|
0022| recreational vehicles;
|
0023| B. "motor vehicle dealer" or "dealer" means any
|
0024| person who sells or solicits or advertises the sale of new or
|
0025| used motor vehicles. "Motor vehicle dealer" or "dealer" shall
|
0001| not include:
|
0002| (1) receivers, trustees, administrators,
|
0003| executors, guardians or other persons appointed by or acting
|
0004| under judgment, decree or order of any court;
|
0005| (2) public officers while performing their
|
0006| duties as such officers;
|
0007| (3) persons making casual sales of their own
|
0008| vehicles duly registered and licensed to them by the state; or
|
0009| (4) finance companies, banks and other lending
|
0010| institutions covering sales of repossessed vehicles;
|
0011| C. "person" means every natural person,
|
0012| partnership, corporation, association, trust, estate or any
|
0013| other legal entity;
|
0014| D. "manufacturer" means any person who manufactures
|
0015| or assembles new motor vehicles either within or outside of
|
0016| this state;
|
0017| E. "distributor" means any person who distributes
|
0018| or sells new or used motor vehicles to dealers and who is not a
|
0019| manufacturer;
|
0020| F. "representative" means any person who is or acts
|
0021| as an agent, employee or representative of a manufacturer or
|
0022| distributor and who performs any duties in this state relating
|
0023| to promoting the distribution or sale of new or used motor
|
0024| vehicles or contacts dealers in this state on behalf of a
|
0025| manufacturer or distributor;
|
0001| G. "franchise" means an oral or written arrangement
|
0002| for a definite or indefinite period in which a manufacturer,
|
0003| distributor or representative grants to a motor vehicle dealer
|
0004| a license to use a trade name, service mark or related
|
0005| characteristic and in which there is a community of interest in
|
0006| the marketing of motor vehicles or services related to
|
0007| marketing, service or repair of motor vehicles at wholesale,
|
0008| retail, leasing or otherwise;
|
0009| H. "fraud" includes, in addition to its normal
|
0010| legal connotation, the following:
|
0011| (1) a misrepresentation in any manner, whether
|
0012| intentionally false or due to gross negligence, of a material
|
0013| fact;
|
0014| (2) a promise or representation not made
|
0015| honestly and in good faith; and
|
0016| (3) an intentional failure to disclose a
|
0017| material fact;
|
0018| I. "sale" includes:
|
0019| (1) the issuance, transfer, agreement for
|
0020| transfer, exchange, pledge, hypothecation or mortgage in any
|
0021| form, whether by transfer in trust or otherwise, of any motor
|
0022| vehicle or interest therein or of any franchise related
|
0023| thereto; and
|
0024| (2) any option, subscription or other contract
|
0025| or solicitation looking to a sale or offer or attempt to sell
|
0001| in any form, whether spoken or written. A gift or delivery of
|
0002| any motor vehicle or franchise with respect thereto with, or
|
0003| as, a bonus on account of the sale of anything shall be deemed
|
0004| a sale of such motor vehicle or franchise;
|
0005| J. "motorcycle" means any motor vehicle used on or
|
0006| off a public highway that has an unladen weight of less than
|
0007| one thousand five hundred pounds;
|
0008| K. "recreational vehicle" means any motor vehicle
|
0009| with a camping body that either has its own motive power or is
|
0010| drawn by another vehicle;
|
0011| L. "designated family member" means a spouse,
|
0012| child, grandchild, parent, brother or sister of a deceased or
|
0013| incapacitated dealer who is entitled to inherit the dealer's
|
0014| ownership interest in the dealership under the terms of a will
|
0015| or the laws of intestate succession in this state. In the case
|
0016| of an incapacitated dealer, the term means the person appointed
|
0017| by a court as the legal representative of the dealer's
|
0018| property. The term also includes the appointed and qualified
|
0019| personal representative and the testamentary trustee of a
|
0020| deceased dealer. However, the term shall be limited to mean
|
0021| only that individual designated by the motorcycle dealer in a
|
0022| written document filed with the manufacturer, distributor or
|
0023| representative in the event that such a document has been
|
0024| filed;
|
0025| M. "current price" means an amount equal to the
|
0001| price listed in the manufacturer's or distributor's printed
|
0002| price list in effect when the franchise is terminated, less
|
0003| applicable trade and cash discounts;
|
0004| N. "dealer cost" means an amount equal to the sum
|
0005| of the original invoice price that the dealer paid for
|
0006| inventory and the cost of the delivery of the inventory from
|
0007| the manufacturer or distributor to the dealer, less applicable
|
0008| discounts; [and]
|
0009| O. "inventory" means new or unused motorcycles,
|
0010| motorcycle attachments and repair parts that are provided by a
|
0011| manufacturer or distributor to a dealer under a franchise
|
0012| agreement and that are purchased within thirty-six months of
|
0013| the termination of the franchise or are listed in the
|
0014| manufacturer's or distributor's current sales manual or price
|
0015| list at the time that the franchise is terminated; and
|
0016| P. "relevant market area" means an area of a size
|
0017| specified in this subsection around an existing motor vehicle
|
0018| dealer's place of business. The size of the area shall be the
|
0019| greater of the area of responsibility specified in the dealer's
|
0020| franchise or a circle with a center at the dealer's place of
|
0021| business and a radius of:
|
0022| (1) seven miles, if the population of the
|
0023| county in which the dealership is located is two hundred fifty
|
0024| thousand or more;
|
0025| (2) fifteen miles, if the population of the
|
0001| county in which the dealership is located is less than two
|
0002| hundred fifty thousand but is thirty-five thousand or more; or
|
0003| (3) twenty miles in all other cases.
|
0004| If the existing and proposed dealerships are in different
|
0005| counties, the lesser of the applicable mileage limitations
|
0006| shall be used. For purposes of this subsection, the population
|
0007| of any area shall be determined in accordance with the most
|
0008| recent decennial census or the most recent population update
|
0009| from the national planning data corporation or other similar
|
0010| recognized source, whichever is later."
|
0011| Section 2. Section 57-16-5 NMSA 1978 (being Laws 1973,
|
0012| Chapter 6, Section 5, as amended) is amended to read:
|
0013| "57-16-5. UNLAWFUL ACTS--MANUFACTURERS--DISTRIBUTORS--
|
0014| REPRESENTATIVES.--It is unlawful for any manufacturer,
|
0015| distributor or representative to:
|
0016| A. coerce or attempt to coerce a dealer to order or
|
0017| accept delivery of any motor vehicle, appliances, equipment,
|
0018| parts or accessories therefor or any other commodity that the
|
0019| motor vehicle dealer has not voluntarily ordered;
|
0020| B. coerce or attempt to coerce a dealer to order or
|
0021| accept delivery of any motor vehicle with special features,
|
0022| appliances, accessories or equipment not included in the list
|
0023| price of the motor vehicles as publicly advertised by the
|
0024| manufacturer;
|
0025| C. coerce or attempt to coerce a dealer to order
|
0001| for any person any parts, accessories, equipment, machinery,
|
0002| tools, appliances or any commodity whatsoever;
|
0003| D. refuse to deliver, in reasonable quantities and
|
0004| within a reasonable time after receipt of dealer's order, to
|
0005| any motor vehicle dealer having a franchise or contractual
|
0006| arrangement for the retail sale of any motor vehicles sold or
|
0007| distributed by the manufacturer, distributor or representative,
|
0008| any such motor vehicles, parts or accessories as are covered by
|
0009| the franchise or contract specifically publicly advertised by
|
0010| the manufacturer, distributor or representative to be available
|
0011| for immediate delivery; provided, however, the failure to
|
0012| deliver any motor vehicle, parts or accessories shall not be
|
0013| considered a violation of Chapter 57, Article 16 NMSA 1978 if
|
0014| such failure is due to an act of God, work stoppage or delay
|
0015| due to a strike or labor difficulty, shortage of materials,
|
0016| freight embargo or other cause over which the manufacturer,
|
0017| distributor or representative or any agent thereof has no
|
0018| control;
|
0019| E. coerce or attempt to coerce any motor vehicle
|
0020| dealer to enter into any agreement with the manufacturer,
|
0021| distributor or representative or to do any other act
|
0022| prejudicial to the dealer by threatening to cancel any
|
0023| franchise or any contractual agreement existing between the
|
0024| manufacturer, distributor or representative and the dealer;
|
0025| provided, however, that notice in good faith to any motor
|
0001| vehicle dealer of the dealer's violation of any terms or
|
0002| provisions of the franchise or contractual agreement shall not
|
0003| constitute a violation of Chapter 57, Article 16 NMSA 1978;
|
0004| F. terminate or cancel the franchise or selling
|
0005| agreement of any dealer without due cause. Due cause shall
|
0006| require, at a minimum, the use of standards applied equally to
|
0007| all dealers. A manufacturer or distributor shall provide a
|
0008| dealer or prospective purchaser of a dealership with a copy of
|
0009| such standards upon request. The nonrenewal of a franchise or
|
0010| selling agreement, without due cause, shall constitute an
|
0011| unfair termination or cancellation regardless of the terms or
|
0012| provisions of the franchise or selling agreement. The
|
0013| manufacturer, distributor or representative shall notify a
|
0014| motor vehicle dealer in writing by registered mail of the
|
0015| termination or cancellation of the franchise or selling
|
0016| agreement of the dealer at least sixty days before the
|
0017| effective date thereof, stating the specific grounds for
|
0018| termination or cancellation; and the manufacturer, distributor
|
0019| or representative shall notify a motor vehicle dealer in
|
0020| writing by registered mail at least sixty days before the
|
0021| contractual term of his franchise or selling agreement expires
|
0022| that the same will not be renewed, stating the specific grounds
|
0023| for nonrenewal in those cases where there is no intention to
|
0024| renew, and in no event shall the contractual term of any
|
0025| franchise or selling agreement expire without the written
|
0001| consent of the motor vehicle dealer involved prior to the
|
0002| expiration of at least sixty days following the written notice.
|
0003| During the sixty-day period, either party may in appropriate
|
0004| circumstances petition a court to modify the sixty-day stay or
|
0005| to extend it pending a final determination of proceedings on
|
0006| the merits. The court shall have authority to grant
|
0007| preliminary and final injunctive relief;
|
0008| G. use false, deceptive or misleading advertising
|
0009| in connection with his business;
|
0010| H. offer to sell or to sell any motor vehicle to
|
0011| any motor vehicle dealer in this or any other state of the
|
0012| United States at a lower actual price than the actual price
|
0013| offered to any other motor vehicle dealer in this state for the
|
0014| same model vehicle similarly equipped or to utilize any device,
|
0015| including, but not limited to, sales promotion plans or
|
0016| programs that result in such lesser actual price; provided,
|
0017| however, the provisions of this subsection shall not apply to
|
0018| sales to a motor vehicle dealer for resale to any unit of the
|
0019| United States government, the state or any of its political
|
0020| subdivisions; and provided, further, the provisions of this
|
0021| subsection shall not apply to sales to a motor vehicle dealer
|
0022| of any motor vehicle ultimately sold, donated or used by the
|
0023| dealer in a driver education program; and provided, further,
|
0024| that the provisions of this subsection shall not apply so long
|
0025| as a manufacturer, distributor or representative offers to sell
|
0001| or sells new motor vehicles to all motor vehicle dealers at an
|
0002| equal price. For the purposes of this subsection, "actual
|
0003| price" means the price to be paid by the dealer less any
|
0004| incentive paid by the manufacturer, distributor or
|
0005| representative, whether paid to the dealer or the ultimate
|
0006| purchaser of the vehicle. This provision shall not apply to
|
0007| sales by the manufacturer, distributor or representatives to
|
0008| the United States government or any agency thereof. The
|
0009| provisions of this subsection dealing with vehicle prices in
|
0010| any other state and defining actual price shall not apply to
|
0011| any manufacturer or distributor [which has no dealer within
|
fifty miles of a state line, which dealer is in a different
|
region from that other state] if all of the manufacturer's or
|
0014| distributor's dealers within fifty miles are given all cash or
|
0015| credit incentives, whether the incentives are offered by the
|
0016| manufacturer or distributor or a finance subsidiary of either,
|
0017| affecting the price or financing terms of a vehicle, which
|
0018| incentives are available in the neighboring state;
|
0019| I. willfully discriminate, either directly or
|
0020| indirectly, in price between different purchasers of a
|
0021| commodity of like grade or quality where the effect of the
|
0022| discrimination may be to lessen substantially competition or
|
0023| tend to create a monopoly or to injure or destroy the business
|
0024| of a competitor;
|
0025| J. offer to sell or to sell parts or accessories to
|
0001| any motor vehicle dealer for use in his own business for the
|
0002| purpose of repairing or replacing the same or a comparable part
|
0003| or accessory at a lower actual price than the actual price
|
0004| charged to any other motor vehicle dealer for similar parts or
|
0005| accessories for use in his own business; provided, however, in
|
0006| those cases where motor vehicle dealers have a franchise to
|
0007| operate and serve as wholesalers of parts and accessories to
|
0008| retail outlets or other dealers, whether or not the dealer is
|
0009| regularly designated as a wholesaler, nothing herein contained
|
0010| shall be construed to prevent a manufacturer, distributor or
|
0011| representative from selling to the motor vehicle dealer who
|
0012| operates and services as a wholesaler of parts and accessories
|
0013| such parts and accessories as may be ordered by the motor
|
0014| vehicle dealer for resale to retail outlets at a lower actual
|
0015| price than the actual price charged a motor vehicle dealer who
|
0016| does not operate or serve as a wholesaler of parts and
|
0017| accessories;
|
0018| K. prevent or attempt to prevent by contract or
|
0019| otherwise any motor vehicle dealer from changing the capital
|
0020| structure of his dealership or the means by or through which he
|
0021| finances the operation of his dealership, provided the dealer
|
0022| at all times meets any reasonable capital standards agreed to
|
0023| between the dealership and the manufacturer, distributor or
|
0024| representative, and provided such change by the dealer does not
|
0025| result in a change in the executive management control of the
|
0001| dealership;
|
0002| L. prevent or attempt to prevent by contract or
|
0003| otherwise any motor vehicle dealer or any officer, partner or
|
0004| stockholder of any motor vehicle dealer from selling or
|
0005| transferring any part of the interest of any of them to any
|
0006| other person or party; provided, however, that no dealer,
|
0007| officer, partner or stockholder shall have the right to sell,
|
0008| transfer or assign the franchise or power of management or
|
0009| control thereunder without the consent of the manufacturer,
|
0010| distributor or representative except that consent [shall not
|
be unreasonably withheld] shall be granted or withheld in
|
0012| accordance with standards or criteria applied equally to all
|
0013| dealers. Copies of the standards or criteria, and all
|
0014| instances in which they have been applied, shall be furnished
|
0015| any dealer or prospective purchaser of a dealership. A
|
0016| manufacturer or distributor shall not deny or withhold approval
|
0017| based, in whole or in part, upon the manufacturer's or
|
0018| distributor's opinion or evaluation of the financial viability
|
0019| of the dealership;
|
0020| M. obtain money, goods, services, anything of value
|
0021| or any other benefit from any other person with whom the motor
|
0022| vehicle dealer does business on account of or in relation to
|
0023| the transactions between the dealer and the other person,
|
0024| unless such benefit is promptly accounted for and transmitted
|
0025| to the motor vehicle dealer;
|
0001| N. require a motor vehicle dealer to assent to a
|
0002| release, assignment, novation, waiver or estoppel that would
|
0003| relieve any person from liability imposed by Chapter 57,
|
0004| Article 16 NMSA 1978;
|
0005| O. require any motor vehicle dealer to provide
|
0006| installment financing with a specified financial institution;
|
0007| P. establish an additional franchise, including
|
0008| any franchise for a warranty or service facility, but excluding
|
0009| the relocation of existing franchises, for the same line-make
|
0010| in a [community] relevant market area where the same line-
|
0011| make is presently being served by an existing motor vehicle
|
0012| dealer if such addition would be inequitable to the existing
|
0013| dealer; provided, however, that the sales and service needs of
|
0014| the public shall be given due consideration in determining the
|
0015| equities of the existing dealer. The sole fact that the
|
0016| manufacturer, distributor or representative desires further
|
0017| penetration of the market shall not be grounds for establishing
|
0018| an additional franchise; provided, further, that the
|
0019| manufacturer, distributor or representative shall give a
|
0020| ninety-day written notice by registered mail to all same line-
|
0021| make dealers in a [community] relevant market area of its
|
0022| intention to establish an additional franchise;
|
0023| Q. offer to sell, lease or to sell or lease any new
|
0024| motor vehicle to any person, except a distributor at a lower
|
0025| actual price therefor than the actual price offered and charged
|
0001| to a motor vehicle dealer for the same model vehicle similarly
|
0002| equipped or to utilize any device that results in such lesser
|
0003| actual price;
|
0004| R. sell, lease or provide motorcycles, parts or
|
0005| accessories to any person not a dealer or distributor for the
|
0006| line-make sold, leased or provided. The provisions of this
|
0007| subsection shall not apply to sales, leases or provisions of
|
0008| motor vehicles, parts or accessories by manufacturer,
|
0009| distributor or representative to the United States government
|
0010| or any agency thereof or the state or any of its political
|
0011| subdivisions; [or]
|
0012| S. offer any finance program, either directly or
|
0013| through any affiliate, based on the physical location of the
|
0014| selling dealer or the residence of the buyer. The provisions
|
0015| of this subsection shall not apply to any manufacturer or
|
0016| distributor [which] that has no dealer within fifty miles
|
0017| of a state line [which dealer is in a different region from
|
that other state] or if all of the manufacturer's or
|
0019| distributor's dealers within fifty miles are given all cash or
|
0020| credit incentives, whether the incentives are offered by the
|
0021| manufacturer or the distributor or a finance subsidiary of
|
0022| either, affecting the price or financing terms of a vehicle,
|
0023| which incentives are available in the neighboring state;
|
0024| T. force a dealer to sell or relocate a franchise
|
0025| with another manufacturer located at the same physical location
|
0001| or consider the existence of another line-make at a dealership
|
0002| for any purpose, including product allocation, successorship,
|
0003| location approval and capitalization; provided that a
|
0004| manufacturer or distributor may impose requirements to assure
|
0005| that the dealership is capitalized reasonably given all its
|
0006| obligations;
|
0007| U. enforce any right of first refusal or option to
|
0008| purchase the dealership by a manufacturer or distributor or to
|
0009| require any dealer to grant such right to a manufacturer or
|
0010| distributor;
|
0011| V. be licensed as a dealer or perform warranty or
|
0012| other service or own any interest, directly or indirectly, in a
|
0013| person licensed as a dealer or performing warranty or other
|
0014| service; provided that a manufacturer or distributor may own a
|
0015| person licensed as a dealer for a reasonable time in order to
|
0016| dispose of any interest acquired as a secured party or as part
|
0017| of a dealer development program;
|
0018| W. fail to recognize and approve the transfer of a
|
0019| dealership to any person named as a successor, donee,
|
0020| beneficiary or devisee in any valid testamentary or trust
|
0021| instrument; provided that a manufacturer or distributor may
|
0022| impose standards or criteria used in any transfer;
|
0023| X. impose capitalization requirements not necessary
|
0024| to assure that the dealership can meet its financial
|
0025| obligations or that are not applied equally to all dealers or
|
0001| apply requirements for facilities that are not applied equally
|
0002| to all dealers; or
|
0003| Y. compel a dealer through a finance subsidiary of
|
0004| the manufacturer or distributor to agree to unreasonable
|
0005| operating requirements or directly or indirectly to terminate a
|
0006| dealer, except as allowed by Subsection F of Section 57-16-5
|
0007| NMSA 1978, through the actions of a finance subsidiary of the
|
0008| manufacturer or distributor. This subsection shall not limit
|
0009| the right of a financing entity to engage in business practices
|
0010| in accordance with the usage of the trade in which it is
|
0011| engaged."
|
0012| Section 3. Section 57-16-9 NMSA 1978 (being Laws 1973,
|
0013| Chapter 6, Section 9) is amended to read:
|
0014| "57-16-9. FRANCHISE RENEWAL--TERMINATION.--Anything to
|
0015| the contrary notwithstanding, it [shall be] is unlawful for
|
0016| the manufacturer, distributor or representative without due
|
0017| cause to fail to renew on terms then equally available to all
|
0018| its motor vehicle dealers or their prospective purchasers, to
|
0019| terminate a franchise or to restrict the transfer of a
|
0020| franchise unless the dealer [shall receive] receives fair
|
0021| and reasonable compensation for the value of the business. Any
|
0022| person may enforce the provisions of this section whether or
|
0023| not the person is a dealer."
|
0024| Section 4. SEVERABILITY.--If any part or application of
|
0025| this act is held invalid, the remainder or its application to
|
0001| other situations or persons shall not be affected.
|
0002| State of New Mexico
|
0003| House of Representatives
|
0004|
|
0005| FORTY-THIRD LEGISLATURE
|
0006| FIRST SESSION, 1997
|
0007|
|
0008|
|
0009| January 28, 1997
|
0010|
|
0011|
|
0012| Mr. Speaker:
|
0013|
|
0014| Your BUSINESS AND INDUSTRY COMMITTEE, to whom
|
0015| has been referred
|
0016|
|
0017| HOUSE BILL 47
|
0018|
|
0019| has had it under consideration and reports same with
|
0020| recommendation that it DO PASS, amended as follows:
|
0021|
|
0022| l. On page 13, line 3, before the comma insert "outside of
|
0023| the relevant market area of the dealer establishing the
|
0024| facility".,
|
0025|
|
0001| and thence referred to the JUDICIARY COMMITTEE.
|
0002|
|
0003| Respectfully submitted,
|
0004|
|
0005|
|
0006|
|
0007|
|
0008|
|
0009| Fred Luna, Chairman
|
0010|
|
0011|
|
0012| Adopted Not Adopted
|
0013|
|
0014| (Chief Clerk) (Chief Clerk)
|
0015|
|
0016| Date
|
0017|
|
0018| The roll call vote was 12 For 0 Against
|
0019| Yes: 12
|
0020| Excused: None
|
0021| Absent: Varela
|
0022|
|
0023|
|
0024|
|
0025| C:\OFFICE\WPWIN\WPDOCS\H0047BI1.WPD State of New Mexico
|
0001| House of Representatives
|
0002|
|
0003| FORTY-THIRD LEGISLATURE
|
0004| FIRST SESSION, 1997
|
0005|
|
0006|
|
0007| February 5, 1997
|
0008|
|
0009|
|
0010| Mr. Speaker:
|
0011|
|
0012| Your JUDICIARY COMMITTEE, to whom has been referred
|
0013|
|
0014| HOUSE BILL 47, as amended
|
0015|
|
0016| has had it under consideration and reports same with
|
0017| recommendation that it DO PASS, amended as follows:
|
0018|
|
0019| 1. On page 2, between lines 13 and 14, insert the following
|
0020| new subsection:
|
0021|
|
0022| "D. "prospective purchaser" means a person who has a
|
0023| bona fide written agreement to purchase a franchise;".
|
0024|
|
0025| 2. Reletter the succeeding subsections accordingly.
|
0001|
|
0002| 3. On page 8, line 3, after the period strike the remainder
|
0003| of the line, strike all of lines 4 through 6, strike line 7
|
0004| through the period and insert in lieu thereof:
|
0005|
|
0006| "Due cause shall require a material breach by a dealer, due to
|
0007| matters within the dealer's control, of a lawful provision of a
|
0008| franchise or selling agreement. As used in this subsection,
|
0009| "material breach" means a contract violation that is substantial
|
0010| and significant. In determining whether due cause exists under
|
0011| this subsection, the court shall take into consideration only the
|
0012| dealer's sales in relation to the business available to the
|
0013| dealer; the dealer's investment and obligations; injury to the
|
0014| public welfare; the adequacy of the dealer's sales and service
|
0015| facilities, equipment and parts; the qualifications of the
|
0016| management, sales and service personnel to provide the consumer
|
0017| with reasonably good service and care of new motor vehicles; the
|
0018| dealer's failure to comply with the requirements of the
|
0019| franchise; and the harm to the manufacturer or distributor.".
|
0020|
|
0021| 4. On page 12, line 6, after "that" strike the remainder of
|
0022| the line, strike lines 7 through 14 and insert in lieu thereof:
|
0023| "the manufacturer, distributor or representative shall not
|
0024| withhold consent to the sale, transfer or assignment of the
|
0025| franchise to a qualified buyer capable of being licensed in New
|
0001| Mexico and who meets the manufacturer's or distributor's
|
0002| uniformly applied requirement for appointment as a dealer.
|
0003| Uniform application shall not prevent the application of a
|
0004| separate standard of consent for sale, transfer or assignment to
|
0005| minority or women dealer candidates, nor require the application
|
0006| of an identical standard to all persons in all situations. The
|
0007| requirement of uniform application shall be met if the
|
0008| manufacturer applies the same set of standards, which takes into
|
0009| account business performance and experience, financial
|
0010| qualifications, facility requirements and other relevant
|
0011| characteristics; provided that, if two dealers, persons or
|
0012| situations are identical, given the characteristics considered in
|
0013| the standards, the two dealers, persons or situations shall be
|
0014| treated identically, except as provided in this subsection. Upon
|
0015| request, a manufacturer or distributor shall provide its dealer
|
0016| with a copy of the standards that are normally relied upon by the
|
0017| manufacturer or distributor to evaluate a proposed sale, transfer
|
0018| or assignment;".
|
0019|
|
0020| 5. On page 14, line 22, strike "any purpose, including".
|
0021|
|
0022| 6. On page 14, line 24, after "may" strike the remainder of
|
0023| the line and line 25 and on page 15, strike line 1 and insert in
|
0024| lieu thereof:
|
0025|
|
0001| "require:
|
0002| (1) that the dealership meet the manufacturer's
|
0003| capitalization requirements;
|
0004|
|
0005| (2) that the dealership meet the manufacturer's
|
0006| facilities requirements; and
|
0007|
|
0008| (3) that the dealer not have committed
|
0009| fraudulent acts;"
|
0010|
|
0011| 7. On page 15, line 19, after "obligations" insert "; or".
|
0012|
|
0013| 8. On page 15, strike lines 20 through 22 in their
|
0014| entirety.
|
0015|
|
0016| 9. On page 16, line 16 strike "Any person" and insert in
|
0017| lieu thereof "A prospective purchaser".
|
0018|
|
0019|
|
0020| Respectfully submitted,
|
0021|
|
0022|
|
0023|
|
0024|
|
0025|
|
0001| Thomas P. Foy, Chairman
|
0002|
|
0003|
|
0004| Adopted Not Adopted
|
0005|
|
0006| (Chief Clerk) (Chief Clerk)
|
0007|
|
0008| Date
|
0009|
|
0010| The roll call vote was 13 For 0 Against
|
0011| Yes: 13
|
0012| Excused: None
|
0013| Absent: None
|
0014|
|
0015|
|
0016| .115677.1
|
0017| G:\BILLTEXT\BILLW_97\H0047
|
0018|
|
0019| FORTY-THIRD LEGISLATURE
|
0020| FIRST SESSION, 1997
|
0021|
|
0022|
|
0023| March 6, 1997
|
0024|
|
0025| Mr. President:
|
0001|
|
0002| Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
|
0003| whom has been referred
|
0004|
|
0005| HOUSE BILL 47, as amended
|
0006|
|
0007| has had it under consideration and reports same with
|
0008| recommendation that it DO PASS.
|
0009|
|
0010| Respectfully submitted,
|
0011|
|
0012|
|
0013|
|
0014|
|
0015| __________________________________
|
0016| Roman M. Maes, III, Chairman
|
0017|
|
0018|
|
0019|
|
0020| Adopted_______________________ Not
|
0021| Adopted_______________________
|
0022| (Chief Clerk) (Chief Clerk)
|
0023|
|
0024|
|
0025|
|
0001| Date ________________________
|
0002|
|
0003|
|
0004| The roll call vote was 7 For 1 Against
|
0005| Yes: 7
|
0006| No: 1
|
0007| Excused: Kidd, Robinson
|
0008| Absent: None
|
0009|
|
0010|
|
0011| H0047CT1
|