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S1307.......................................by COMMERCE AND HUMAN RESOURCES
MOTOR VEHICLE DEALERS - Amends existing law to require notice of the
establishment of a new motor vehicle dealer or relocation of an existing
dealer in a relevant market area; and to define "relevant market area."
01/26 Senate intro - 1st rdg - to printing
01/27 Rpt prt - to Com/HuRes
S1307
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1307
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO LICENSED MOTOR VEHICLE DEALERS; AMENDING SECTION 49-1616, IDAHO
3 CODE, TO REQUIRE NOTICE OF THE ESTABLISHMENT OF A NEW MOTOR VEHICLE DEALER
4 OR RELOCATION OF AN EXISTING DEALER IN A RELEVANT MARKET AREA AND TO
5 DEFINE RELEVANT MARKET AREA; AND PROVIDING AN EFFECTIVE DATE.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 49-1616, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 49-1616. LIMITATIONS ON ESTABLISHING OR RELOCATING DEALERS. (1) In the
10 event that a manufacturer seeks to enter into a franchise establishing an
11 additional dealership or relocating an existing dealership within a radius of
12 ten (10) miles from where the same line is represented, the manufacturer shall
13 in writing, first notify the department and each dealer for the line within
14 the ten (10) mile radius, of the intention to establish an additional dealer-
15 ship or to relocate an existing dealership within the ten (10) mile radius or
16 into a relevant market area in which the same line make of motor vehicle is
17 represented, notwithstanding the terms of a franchise and notwithstanding the
18 terms of a waiver, the manufacturer shall provide at least sixty (60) days'
19 advance written notice to the department and to each new motor vehicle dealer
20 of the same line make in the relevant market area, of the manufacturer's
21 intention to establish an additional new motor vehicle dealer or to relocate
22 an existing new motor vehicle dealer within or into the relevant market area.
23 The notice shall be sent by certified mail to each such party and shall
24 include the following information:
25 (a) The specific location at which the additional or relocated motor
26 vehicle dealer will be established;
27 (b) The date on or after which the additional or relocated motor vehicle
28 dealer intends to commence business at the proposed location;
29 (c) The identity of all motor vehicle dealers who are franchised to sell
30 the same line make vehicles as the proposed dealer and who have licensed
31 locations within the relevant market area;
32 (d) The names and addresses of the owners of the proposed additional or
33 relocated motor vehicle dealership; and
34 (e) The specific grounds or reasons for the proposed establishment of an
35 additional motor vehicle dealer or relocation of an existing dealer.
36 (2) This section shall not apply to the relocation of an existing dealer
37 within that dealer's relevant market area, provided that the relocation not be
38 at a site within seven (7) miles of a licensed franchise for the same line
39 make of vehicle, or if the proposed franchise is to be established at or
40 within two (2) miles of a location at which a former franchise for the same
41 line make of new vehicle had ceased operating within the previous two (2)
42 years. If the seven (7) and two (2) mile exceptions are not applicable, the
43 relocation may still be possible upon notice and resolution of protest under
2
1 subsections (1) and (3) of this section For the purposes of this section, and
2 throughout this chapter, the term "relevant market area" is defined as fol-
3 lows:
4 (a) If the population of the county in which the proposed new or relo-
5 cated dealership is to be located is four hundred thousand (400,000) or
6 more, the relevant market area is the geographic area within a radius of
7 eight (8) miles around the proposed site;
8 (b) If the population of the county in which the proposed new or relo-
9 cated dealership is to be located is two hundred thousand (200,000) or
10 more and less than four hundred thousand (400,000), the relevant market
11 area is the geographic area within a radius of twelve (12) miles around
12 the proposed site;
13 (c) If the population of the county in which the proposed new or relo-
14 cated dealership is to be located is less than two hundred thousand
15 (200,000), the relevant market area is the geographic area within a radius
16 of sixteen (16) miles around the proposed site.
17 (d) In determining the population for this definition, the most recent
18 census by the United States bureau of census or the most recent population
19 update either from the national planning data corporation or other similar
20 recognized source, shall be accumulated for all census tracts either
21 wholly or partially within the relevant market area.
22 (3) A protest may be filed in accordance with the provisions of section
23 49-1617, Idaho Code.
24 SECTION 2. This act shall be in full force and effect on and after July
25 1, 2000.
STATEMENT OF PURPOSE
RS09555
Relating to automobile dealers and manufacturers, this legislation
requires that a manufacturer must provide at least 60 days advance
notice of the relocation of an existing dealership or the addition
of a new dealership to all existing dealers in the market area where
the new or relocated dealership will be located. The current law
provides for notice to existing dealers, but is not clear which
dealers shall be notified or the required content of the notice.
This legislation clarifies the requirements for the information to
be supplied by the manufacturer and the dealers who must be notified.
FISCAL NOTE
No fiscal impact.
CONTACT: Mike Brassey
Phone: 336-7930
Denise Brennan
Idaho Automobile Dealers Association
Phone: 853-4668
S 1307