Bill Amendment: IL SB1687 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: MOTOR VEH FRANCHISE RIGHTS

Status: 2017-08-24 - Public Act . . . . . . . . . 100-0308 [SB1687 Detail]

Download: Illinois-2017-SB1687-Senate_Amendment_002.html

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Sen. Martin A. Sandoval

Filed: 4/20/2017

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AMENDMENT TO SENATE BILL 1687
AMENDMENT NO. ______. Amend Senate Bill 1687 on page 1,
line 5, by deleting "and by adding Section 1.5"; and
on page 2, by deleting lines 16 through 22; and
on page 17, line 20, by deleting "or threaten to take"; and
on page 18, by replacing line 1 with the following:
"either electronically or on paper, prior to the sale or
lease, and the dealer knew or reasonably should have known
of the"; and
on page 18, line 4, by changing "in" to "and titled in"; and
on page 18, by replacing lines 10 through 26 with the
following:
"(11) to coerce or require any dealer to construct

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improvements to his or her facilities or to install new
signs or other franchiser image elements that replace or
substantially alter those improvements, signs, or
franchiser image elements completed within the past 10
years that were required and approved by the manufacturer
or one of its affiliates. The 10-year period under this
paragraph (11) begins to run for a dealer, including that
dealer's successors and assigns, on the date that the
manufacturer gives final written approval of the facility
improvements or installation of signs or other franchiser
image elements or the date that the dealer receives a
certificate of occupancy, whichever is later. For the
purpose of this paragraph (11), the term "substantially
alter" does not include routine maintenance, including,
but not limited to, interior painting, that is reasonably
necessary to keep a dealer facility in attractive
condition; or"; and
on page 19, by deleting lines 1 through 10; and
on page 19, line 12, by changing "improvement" to
"improvements"; and
on page 19, by replacing lines 24 through 26 with the
following:
"means an amount equal to or greater than the cost savings

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that would result if the dealer were to utilize a vendor of
the dealer's own selection instead of using the vendor
identified by the manufacturer. For the purpose of this
paragraph (12), the term "goods" does not include movable
displays, brochures, and promotional materials containing
material subject to the intellectual property rights of a
manufacturer. If signs, other than signs containing the
manufacturer's brand or logo or free-standing signs that
are not directly attached to a building, or other
franchiser image or design elements or trade dress are to
be leased to the dealer by a vendor selected, identified,
or designated by the manufacturer, the dealer has the right
to purchase the signs or other franchiser image or design
elements or trade dress of substantially similar quality
and design from a vendor selected by the dealer if the
signs, franchiser image or design elements, or trade dress
are approved by the manufacturer. Approval by the
manufacturer shall not be unreasonably withheld. This
paragraph (12) shall not be construed to allow a dealer or
vendor to impair, infringe upon, or eliminate, directly or
indirectly, the intellectual property rights of the
manufacturer including, but not limited to, the
manufacturer's intellectual property rights in any
trademarks or trade dress, or other intellectual property
interests owned or controlled by the manufacturer. This
paragraph (12) shall not be construed to permit a dealer to

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erect or maintain signs that do not conform to the
manufacturer's intellectual property rights or trademark
or trade dress usage guidelines."; and
on page 20, by deleting lines 1 through 14; and
on page 35, by replacing lines 3 through 16 with the following:
"(A) notifies the dealer in writing that it intends
to exercise its right to acquire the franchise not
later than 60 days after the manufacturer's or
distributor's receipt of a notice of the proposed
transfer from the dealer and all information and
documents reasonably and customarily required by the
manufacturer or distributor supporting the proposed
transfer;"; and
on page 36, by replacing lines 10 through 12 with the
following:
"investigating, and negotiating the transfer of the
dealership prior to the manufacturer's or
distributor's exercise of its right of"; and
on page 36, line 21, by changing "manufacturer" to
"manufacturer's"; and
on page 36, line 25 by changing "30" to "90"; and

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on page 37, by replacing lines 3 through 9 with the following:
"manufacturer's or distributor's right of first
refusal.
Except as provided in this paragraph (14), neither the
selling dealer nor the manufacturer or distributor shall
have any liability to any person as a result of a
manufacturer or distributor exercising its right of first
refusal.
For the purpose of this paragraph, "proposed
transferee" means the person to whom the franchise would
have been transferred to, or was proposed to be transferred
to, had the right of first refusal or other right to
acquire the franchise not been exercised by the
manufacturer or distributor."; and
on page 37, by replacing lines 21 and 22 with the following:
"retail customer other than through a franchised dealer, except
as otherwise provided in this subsection (f). The changes made
to this subsection (f) by this amendatory Act of the 100th
General Assembly are declarative of existing law. This that,
this subsection shall not prohibit:"; and
on page 54, by replacing lines 14 through 24 with the
following:
"dealer's market area presented by the dealer impacted the

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dealer's performance.".