Committee adopts amendment to franchise law bill; industry backs compromise

House Bill 2,127 would amend Oregon law governing franchise agreements between vehicle manufacturers, distributors or importers and franchise dealers, including allocation criteria and reimbursement rules for parts and service time allowances.

Committee staff explained the dash-1 amendment adds customer dealer selection to the criteria manufacturers may use to allocate motor vehicles, requires reasonable time allowances for qualified technicians to diagnose and perform service, and ties reimbursement for parts to the manufacturer’s current price catalog. Greg Remensberger, executive vice president of the Oregon Automobile Dealers Association, said the amendment reflected a negotiated compromise and that franchise dealers were “content with the bill with the dash-1 amendments.”

Vice Chair Tricci moved adoption of the dash-1 amendment; the committee adopted the amendment without objection. Vice Chair Tietje moved House Bill 2,127 as amended to the floor with a due-pass recommendation. A roll call recorded Representative Kate excused; Representatives Johnson, Bompas, Nero, Rushke, Walters, Vice Chair Taichie and Vice Chair Osborne and Chair (recorded as Simpson in the roll call) voting aye; Representatives Wallen and Representative Kate were recorded excused; the motion passed and the bill was referred to the House floor.