Senate passes franchise‑protections bill after floor amendments fail

Second substitute House Bill 414, debated and voted on Feb. 27, 1996, would change the franchise framework governing vehicle dealers and related dispute resolution. Senator Peterson (floor sponsor) said the bill ‘‘establishes a level playing field’’ and corrected drafting errors raised by manufacturers and dealers.

The Senate considered multiple amendments. Amendments 1–3 corrected technical drafting errors and amendments 4–6 addressed successor designation for franchisees. Senator Bolton moved a substantive amendment that would have replaced certain board membership provisions with six public members appointed by the executive director, with gubernatorial concurrence. Bolton argued this would produce ‘‘equity in the representation’’ and reduce the perceived bias of a board dominated by industry representatives.

Several senators objected to Bolton’s amendment, saying it would remove essential industry expertise and weaken the board’s balance. Senator Peterson and others noted the bill already provided for geographic representation and industry representation, including appointees representing manufacturers and franchisees. After debate and a division, the chair ruled Bolton’s amendment failed. With the amendments on the table and further technical revisions adopted, the second substitute HB 414 was then passed on a roll call (26 ayes, no nays recorded in the final journal entry) and sent back to the House for consideration.

Next steps: The bill will be transmitted to the House for further action; sponsors recorded the passage in the journal and noted an amendment had been made during Senate consideration.