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House passes Powersport Vehicle Franchise Act amendments to protect small dealers
Summary
The House approved HB68 to amend the Powersport Vehicle Franchise Act; supporters said the bill protects small Utah dealerships from onerous franchise terms and excessive inventory demands, and it passed 40–30.
The Utah House on Feb. 15 approved HB68, a set of changes to the Powersport Vehicle Franchise Act intended to protect smaller, locally owned dealerships from what supporters described as one‑sided franchisor practices.
Sponsor Representative Sagers said the bill is designed to support small Utah businesses that pay local taxes and employ Utahns. Representative Pitcher, speaking in support, described personal experience in franchised businesses and urged passage to level the playing field for local dealers.
Representative Hemingway asked whether the measure would deter franchisors from entering Utah. The sponsor responded that the large market for outdoor recreation products makes Utah attractive and that the bill should not deter franchisors.
Representative Sagers also emphasized protections such as a duty for franchisors to mitigate damages and reasonable limits on liquidation claims. After floor debate, the House passed HB68 on final reading by roll call, 40 yes to 30 no; the bill will be transmitted to the Senate.
