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Senate advances automobile franchise bill after adopting dealer-protection amendment
Summary
Senate Bill 68, revising automobile franchise rules, was amended on the floor to preserve preexisting franchiser-franchisee agreements and to allow local suppliers where specifications are comparable; it passed second reading and was placed on the third-reading calendar.
Senate Bill 68, focused on automobile franchise relationships and dealer protections, was presented as the result of several weeks of negotiation between dealers and manufacturers. Senator Jenkins described the bill as protecting dealers' ability to merchandise products and limiting factory demands that can impose large renovation costs.
On the floor, Senator Jenkins moved Amendment No. 2 (dated Feb. 23, 2012), which clarifies that the enacted bill would not affect written agreements between franchisers and franchisees in effect before May 8, 2012. Senator Bramble and other members discussed concerns tied to federal actions that have affected franchise ownership and the need for legislative protections for long-standing dealers.
Following adoption of the amendment, sponsors said the bill also allows dealers to select local vendors for construction or remodels so long as materials meet the factories' specifications and do not infringe on intellectual property rights. The Senate passed the first substitute on second reading (22 yeas, 0 nays, 7 absent) and placed SB 68 on the third-reading calendar.
Supporters framed the changes as protecting local businesses and clarifying industry obligations; sponsors pledged to continue working on language where parties remain in disagreement.
