SENATE BILL REPORT

SB 5757

As of February 18, 2003

Title: An act relating to relevant market area of motorcycle dealers.

Brief Description: Redefining motorcycle relevant market area.

Sponsors: Senator Benton.

Brief History:

Committee Activity: Commerce & Trade: 2/19/03.

SENATE COMMITTEE ON COMMERCE & TRADE

Staff: John Dziedzic (786-7784)

Background: The Motorcycle Dealers' Franchise Act, Chapter 46.94 RCW, regulates the relationship between motorcycle manufacturers and dealers of new or used motorcycles. The act defines the term "relevant market area" as "a ten-mile radius" around a dealership.

Summary of Bill: "Relevant market area" is defined as a radius of either eight, 12, or 16 miles around a motorcycle dealership, depending on the population of the county in which the dealership is located: the greater the population, the smaller the relevant market area.

A notice and appeal process is required when a manufacturer intends to locate or relocate a franchise within the "relevant market area" of an existing franchise. The statutory notice and appeal process does not apply if the franchise agreement between the manufacturer and dealership provides for arbitration under the Washington Arbitration Act, Chapter 7.04 RCW.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.