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The Committee on Regulated Industries (Aronberg) recommended the

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following amendment:

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     Senate Amendment

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     Delete line(s) 68-102

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and insert:

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     (b) A license may, however, provide to a motor vehicle

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dealer a commitment to allocate additional vehicles or a loan or

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grant of money as an inducement for the motor vehicle dealer to

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relocate, expand, improve, remodel, alter, or renovate its

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facilities if the licensee delivers an assurance to the dealer

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that it will offer to supply to the dealer a sufficient quantity

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of new motor vehicles, consistent with its allocation obligations

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at law and to its other same line-make motor vehicle dealers,

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that will economically justify such relocation, expansion,

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improvement, remodeling, renovation, or alteration, in light of

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reasonably current and reasonably projected market and economic

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conditions. The provisions of the increase in vehicle allocation,

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the loan or grant and the assurance, and the basis for them must

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be contained in a written agreement voluntarily entered into by

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the dealer and must be made available, on substantially similar

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terms, to the licensee's other same line-make dealers in this

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state.

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     (c) A licensee shall not withhold a bonus, incentive, or

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other benefit that is available to its other same line-make

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franchised dealers in this state from, or take or threaten to

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take any action that is unfair or adverse to a dealer who does

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not enter into an agreement with the licensee pursuant to

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paragraph (b).

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     (d) A licensee may not refuse to offer a program, bonus,

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incentive, or other benefit, in whole or in part, to a dealer in

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this state which it offers to its other same line-make dealers

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nationally or in the licensee's zone or region in which this

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state is included. Neither may it discriminate against a dealer

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in this state with respect to any program, bonus, incentive, or

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other benefit. For purposes of this chapter, a licensee may not

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establish this state alone as a zone, region, or territory by any

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other designation.

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     (e) Paragraphs (a) or (b) do not affect any contract

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between a licensee and any of its dealers regarding relocation,

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expansion, improvement, remodeling, renovation, or alteration

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which exists on the effective date of this act.

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     (f) Any portion of a licensee-offered program for a bonus,

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incentive, or other benefit that, in whole or in part, is based

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upon or aimed at inducing a dealer's relocation, expansion,

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improvement, remodeling, renovation, or alteration is void for

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each of the licensee's dealers in this state who nevertheless are

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eligible for the entire amount of the bonus, incentive, or

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benefit offered in the program upon compliance with the other

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bases or eligibility provisions in the program.

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     (g) A licensee may set and uniformly apply reasonable

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standards for a motor vehicle dealer's sales and service

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facilities which are related to upkeep, repair, and cleanliness.

4/7/2008  9:56:00 AM     27-06731A-08