SHB 2547 -
By Representative Conway
ADOPTED 02/13/2010
On page 2, line 12, after "offered," strike "is" and insert "such that continuing to retail the line is no longer economically viable for a dealer is, at the option of the dealer,"
On page 3, line 9, after "RCW 46.96.070(2)" insert "or a voluntary termination, cancellation, or nonrenewal initiated by the dealer"
On page 4, beginning on line 11, after "means the" strike all material through "calculations" on line 27 and insert "manufacturer's suggested retail price for the part or the dealer's cost for the part plus a forty percent markup, whichever is greater"
On page 12, line 27, after "facility" insert "that is within the relevant market area, as defined in RCW 46.96.140, of the make or line to be relocated"
On page 13, beginning on line 34, after "condition" strike all material through "site control" on line 35 and insert "manufacturer, distributor, factory branch, or factory representative sales, services, or parts incentives upon the manufacturer obtaining site control, including rights to purchase or lease the dealer's facility,"
EFFECT: (1) Establishes that, at the option of a dealer, a
material reduction in the selection of a vehicle offered by a
manufacturer, such that continuing to retail the line is no longer
economically viable for a dealer, is considered a termination of a
franchise for purposes of a manufacturer giving notice.
(2) Establishes that a manufacturer is not required to reimburse a
dealer for certain costs if a dealer voluntarily terminates a
franchise.
(3) Removes provisions related to the rates charged by a dealer for
nonwarranty service for parts. Defines the rates charged by a dealer
for nonwarranty service for parts as the manufacturer's suggested
retail price or the dealer's cost for the part plus a markup of 40
percent, whichever is greater.
(4) Prohibits manufacturers from terminating a franchise because a
dealer relocates a manufacturer's line to an existing dealership only
if the dealership is within the relevant market area of the line to be
relocated.
(5) Modifies the prohibited practice related to site control so
that a manufacturer may not condition a franchise agreement or
condition sales, services, or parts incentives upon the manufacturer
obtaining site control, including rights to purchase or lease the
dealer's facility.