WeVote
Log In

Bill

Bill

SB 3708

MOTOR VEHICLE FRANCHISE-SALES

104th Regular Session Introduced by Ram Villivalam

Illinois SB 3708 standardizes and protects franchise relationships between vehicle manufacturers and dealers, clarifying terms, terminations, and disclosures.

0
WeVote Research Nonpartisan
Bill Summary · SB 3708

Summary of SB 3708 (104th Illinois General Assembly) — Motor Vehicle Franchise-Sales

Purpose and intent

SB 3708 governs the relationship between motor vehicle manufacturers (franchisers) and motor vehicle dealers (franchisees) in Illinois. The bill is designed to regulate franchise sales practices, provide standards for dealership behavior, and specify procedures related to the sale, termination, or transfer of motor vehicle franchises. The presence of a co-sponsor indicates it has legislative support to address issues within the franchised dealership system, balancing interests of manufacturers and dealer networks.

Key provisions and changes

  • Franchise relationship framework

    • Establishes or clarifies statutory requirements governing the rights and duties of motor vehicle manufacturers and their franchised dealers.
    • Addresses terms and conditions under which franchises may be awarded, renewed, or terminated.

  • Franchise sales and acquisition

    • Sets criteria or processes for the sale or acquisition of franchise rights, including notification requirements and permissible criteria used by manufacturers when evaluating prospective or current dealers.
    • May include standards to prevent arbitrary or unlawful rejection of prospective dealers.

  • Termination and nonrenewal protections

    • Outlines due process standards for terminations or nonrenewals of franchised agreements.
    • May specify notice periods, grounds for termination, and opportunities for cure or remediation.

  • Performance and standards

    • Potentially establishes minimum performance expectations or compliance standards for franchised dealers.
    • Could address remedies for underperformance, including corrective action plans.

  • Dealer protections and disclosures

    • Requires disclosures to prospective dealers regarding franchise terms, financial commitments, and network conditions.
    • Provides remedies or recourse for dealers if manufacturers fail to meet statutory obligations.

  • Dispute resolution

    • May include processes for resolving disputes between manufacturers and dealers, possibly favoring arbitration, mediation, or specified state-level proceedings.

  • Economic and operating terms

    • May regulate or clarify warranty, service, and parts support obligations, as well as access to proprietary information, training, and marketing resources.

Who is affected

  • Motor vehicle manufacturers/franchisers operating in Illinois.
  • Franchised motor vehicle dealers across Illinois that hold or seek franchise agreements.
  • Prospective dealers considering entering an Illinois franchise network.
  • Industry associations and legal professionals advising on franchise compliance.

Procedural and timeline aspects

  • The bill entails statutory changes requiring adoption by the Illinois General Assembly and subsequent enactment into law.
  • If enacted, most provisions would govern existing franchises upon effective dates specified within the bill, with potential transition periods for current contracts or license agreements.
  • The bill may include implementation timelines for rulemaking or regulatory guidance if administrative agencies are charged with enforcement.

Potential impact (high level)

  • Provides clearer standards and protections for franchised dealers, reducing ambiguities in terminations, renewals, and acquisition processes.
  • Establishes mechanisms to protect against arbitrary franchiser decisions while enabling legitimate business rationales for network changes.
  • Aims to balance the operating flexibility of manufacturers with due process and disclosure requirements for dealers.

Note: This summary reflects general anticipated content based on the bill title and sponsor information. For precise statutory language, effective dates, specific definitions, exceptions, and procedural steps, please consult the official bill text and fiscal notes from the Illinois General Assembly.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.