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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) 230-242

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and insert:

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proof.--Notwithstanding the provisions of any franchise

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agreement, a franchise agreement of a motor vehicle dealer shall

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not be terminated, canceled, discontinued, or not renewed by a

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licensee on the basis of any misrepresentation or fraud, or the

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filing of false or fraudulent statements or claims with the

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licensee, unless the licensee proves by clear and convincing

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evidence at a hearing that the majority owner or, if there is no

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majority owner, the person designated as dealer-principal in the

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franchise agreement, had actual knowledge of such acts at the

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time they allegedly were committed or that the licensee provided

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written notice to the majority owner or dealer-principal

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detailing such alleged acts, and that the majority owner or

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dealer-principal, within a reasonable time after receipt of such

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written notice, failed to take actions reasonably calculated to

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prevent such acts from continuing or reoccurring.

4/7/2008  8:21:00 AM     27-06733-08