MVFA-FRANCHISE AGREEMENTS Senate SponsorsSen. Martin A. Sandoval-John J. Millner, John M. Sullivan, Tim Bivins, Bill Brady-Larry K. Bomke, Kimberly A. Lightford, Pamela J. Althoff, Dale E. Risinger, Deanna Demuzio, David Koehler, Randall M. Hultgren and John O. Jones House Sponsors(Rep. Jay C. Hoffman-John A. Fritchey) 5/22/2009SenatePublic Act . . . . . . . . . 96-0011 815 ILCS 710/2from Ch. 121 1/2, par. 752815 ILCS 710/4from Ch. 121 1/2, par. 754815 ILCS 710/6from Ch. 121 1/2, par. 756815 ILCS 710/9from Ch. 121 1/2, par. 759Amends the Motor Vehicle Franchise Act. Expands the definition of the term "motor vehicle" to include any engine, transmission, or rear axle, regardless of whether it is attached to a vehicle chassis, that is manufactured for installation in any motor-driven vehicle with a gross vehicle weight rating of more than 16,000 pounds that is required to be registered under the Illinois Vehicle Code. Eliminates language providing that a manufacturer has good cause to cancel, terminate, or fail to extend or renew the franchise or selling agreement to all franchisees of a line make when the manufacturer permanently discontinues the manufacture or assembly of motor vehicles of such line make. Provides that it is a violation for a manufacturer to require or coerce a motor vehicle dealer to underutilize the motor vehicle dealer's facilities by requiring or coercing the motor vehicle dealer to cease operations for the selling or servicing of any vehicles that fall under a franchise agreement with another manufacturer. Provides an itemized list of what is considered reasonable compensation to a motor vehicle dealer for the value of the motor vehicle dealer's business and business premises, as well as a payment scheme for such compensation. Makes other changes. Effective immediately.Senate Committee Amendment No. 1 Provides a specific date upon which the expanded definition of the term "motor vehicle" will take effect.House Committee Amendment No. 1 Adds reference to:815 ILCS 710/9.5 newQualifies the prohibition against requiring or coercing a motor vehicle dealer to underutilize the motor vehicle dealer's facilities by establishing that such action by a manufacturer or franchiser is prohibited provided certain conditions are met: (i) the motor vehicle dealer maintains a reasonable line of credit for each make or line of new motor vehicle, (ii) the new motor vehicle dealer remains in compliance with any reasonable facilities requirements of the manufacturer, (iii) no change is made in the principal management of the new motor vehicle dealer, and (iv) the addition of the make or line of new motor vehicles would be reasonable. Permits a manufacturer or franchiser to initiate an audit, charge, or reimbursement for false or unsubstantiated labor or parts claims within a one year period after the date the claim was paid or issued by the manufacturer or franchiser (rather than within a one year period after the date of the sale of the vehicle that is subject to audit by the franchiser). Eliminates language that reasonable compensation to a franchisee includes the franchisee's cost of each new motor vehicle having 1,000 or fewer miles recorded on the odometer that is in the franchisee's inventory at the time of nonrenewal, termination, or restriction, and instead provides that reasonable compensation includes the franchisee's cost of each new undamaged and unsold current and prior year motor vehicles that were acquired within 12 months of termination and have 500 or fewer miles recorded on the odometer that are in the franchisee's inventory at the time of nonrenewal, termination, or restriction and that were purchased or acquired from the manufacturer or from another dealer of the same line make in the ordinary course of business. Provides that provisions concerning reasonable compensation shall not apply to a nonrenewal or termination that is implemented as a result of a sale of the assets or stock of the franchise. Requires that payment for the franchisee's cost of each new, undamaged, and unsold current and prior year vehicles is due no later than 90 days (rather than 60 days) after the franchise is terminated or nonrenewed. Provides that a failure to compensate a motor vehicle dealer in compliance with the mandated payment scheme shall render the manufacturer, distributor, or wholesaler liable to the motor vehicle dealer for (i) interest on the amount due at a rate reasonable in light of commercial practices determined by the Motor Vehicle Review Board or an arbitrator, and (ii) reasonable attorney's fees and costs (rather than (i) the dealer cost, fair market value, or current price of the item, whichever is highest; (ii) interest on the amount due at the rate equal to the prime lending rate plus 1%; and (iii) reasonable attorney's fees and costs). Requires a manufacturer, distributor, or wholesaler to make certain compensation payments to a motor vehicle dealer if the manufacturer, distributor, or wholesaler, with good cause, (i) fails to renew a franchise on terms then equally available to all of its motor vehicle dealers, (ii) terminates a franchise, or (iii) restricts the transfer of a franchise. Further provides that noncompliance with the mandated compensation and payment scheme shall render the manufacturer, distributor, or wholesaler liable to the motor vehicle dealer for specified payments. 2/11/2009SenateFiled with Secretary by Sen. Martin A. Sandoval 2/11/2009SenateFirst Reading 2/11/2009SenateReferred to Assignments 2/11/2009SenateAdded as Chief Co-Sponsor Sen. John J. Millner 2/17/2009SenateAdded as Co-Sponsor Sen. John M. Sullivan 2/18/2009SenateAssigned to Commerce 2/20/2009SenateAdded as Co-Sponsor Sen. Tim Bivins 2/23/2009SenateAdded as Co-Sponsor Sen. Bill Brady 2/24/2009SenateAdded as Chief Co-Sponsor Sen. Larry K. Bomke 2/25/2009SenateRe-referred to Assignments; from the Commerce Committee 2/25/2009SenateAssignments Re-refers to Transportation 2/27/2009SenateAdded as Co-Sponsor Sen. Kimberly A. Lightford 3/3/2009SenateSenate Committee Amendment No. 1 Filed with Secretary by Sen. Martin A. Sandoval 3/3/2009SenateSenate Committee Amendment No. 1 Referred to Assignments 3/4/2009SenateSenate Committee Amendment No. 1 Assignments Refers to Transportation 3/5/2009SenateSenate Committee Amendment No. 1 Held in Transportation 3/5/2009SenateHeld in Transportation 3/5/2009SenateAdded as Co-Sponsor Sen. Pamela J. Althoff 3/10/2009SenateSenate Committee Amendment No. 1 Adopted 3/11/2009SenateDo Pass as Amended Transportation; 011-000-000 3/11/2009SenatePlaced on Calendar Order of 2nd Reading March 12, 2009 3/13/2009SenateAdded as Co-Sponsor Sen. Dale E. Risinger 3/24/2009SenateAdded as Co-Sponsor Sen. Deanna Demuzio 3/30/2009SenateSecond Reading 3/30/2009SenatePlaced on Calendar Order of 3rd Reading March 31, 2009 4/2/2009SenateAdded as Co-Sponsor Sen. David Koehler 4/2/2009SenateAdded as Co-Sponsor Sen. Randall M. Hultgren 4/2/2009SenateThird Reading - Passed; 056-000-000 4/2/2009HouseArrived in House 4/2/2009HousePlaced on Calendar Order of First Reading 4/2/2009HouseChief House Sponsor Rep. Jay C. Hoffman 4/2/2009HouseFirst Reading 4/2/2009HouseReferred to Rules Committee 4/9/2009HouseAdded Alternate Chief Co-Sponsor Rep. John A. Fritchey 4/20/2009HouseAssigned to Judiciary I - Civil Law Committee 4/29/2009HouseHouse Committee Amendment No. 1 Filed with Clerk by Judiciary I - Civil Law Committee 4/29/2009HouseHouse Committee Amendment No. 1 Adopted in Judiciary I - Civil Law Committee; by Voice Vote 4/29/2009HouseDo Pass as Amended / Short Debate Judiciary I - Civil Law Committee; 015-000-000 4/29/2009HousePlaced on Calendar 2nd Reading - Short Debate 4/30/2009HouseSecond Reading - Short Debate 4/30/2009HousePlaced on Calendar Order of 3rd Reading - Short Debate 5/13/2009HouseThird Reading - Short Debate - Passed 114-001-000 5/13/2009SenateSecretary's Desk - Concurrence House Amendment(s) 1 5/13/2009SenatePlaced on Calendar Order of Concurrence House Amendment(s) 1 - May 14, 2009 5/14/2009SenateHouse Committee Amendment No. 1 Motion to Concur Filed with Secretary Sen. Martin A. Sandoval 5/14/2009SenateHouse Committee Amendment No. 1 Motion to Concur Referred to Assignments 5/15/2009SenateHouse Committee Amendment No. 1 Motion to Concur Assignments Referred to Transportation 5/15/2009SenateAdded as Co-Sponsor Sen. John O. Jones 5/18/2009SenateHouse Committee Amendment No. 1 Motion To Concur Recommended Do Adopt Transportation; 008-000-000 5/18/2009SenateHouse Committee Amendment No. 1 Senate Concurs 052-000-000 5/18/2009SenatePassed Both Houses 5/21/2009SenateSent to the Governor 5/22/2009SenateGovernor Approved 5/22/2009SenateEffective Date May 22, 2009 5/22/2009SenatePublic Act . . . . . . . . . 96-0011