08 LC 25
5145S
House
Bill 297 (FLOOR SUBSTITUTE)
By:
Representative Freeman of the
140th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating
to selling and other trade practices, so as to change certain provisions
relating to franchise agreements required to sell or distribute recreational
vehicles; to provide for applicability; to provide an effective date; to provide
for related matters; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
1 of Title 10 of the Official Code of Georgia Annotated, relating to selling and
other trade practices, is amended by revising Code Section 10-1-679.14, relating
to franchise agreements required to sell or distribute recreational vehicles, as
follows:
"10-1-679.14.
(a)
It shall be unlawful for any dealer to sell or distribute any new recreational
vehicle in Georgia unless the dealer has a franchise dealership agreement with a
grantor with the express right to sell or distribute recreational vehicles in
Georgia and meets the requirements and definitions provided in this article.
Any dealer who does not meet the requirements of this article may participate in
events where recreational vehicles are exhibited or demonstrated and seminars
are provided but shall be prohibited from contracting to sell or distribute
recreational vehicles to the public.
(b)
Notwithstanding
the foregoing,
Subsection (a)
of this Code section shall not apply to
the:
(1)
The sale of recreational vehicles at
events sponsored by a Georgia based recreational vehicle grantor with
manufacturing facilities located in
the
this
state, where recreational vehicles are sold or contracted for by its franchised
out-of-state recreational vehicle
dealers.;
(2)
Any convention or rally involving more than 2,500 recreational vehicles which
are preregistered with the sponsor of said event, owned by individuals attending
such convention or rally, and there for the personal use of their owners for the
purpose of camping and not for sale or display; provided, however, that no
dealers from outside of this state shall be invited to said event by a
participating manufacturer unless all franchised Georgia dealers for such
participating manufacturer shall be invited to said event, and there shall be no
discrimination in terms of sales by a manufacturer to any franchised Georgia
dealer for recreational vehicles to be sold at the convention or rally; nor
shall any franchised Georgia dealer be required by a manufacturer to purchase
inventory in addition to that required under a current franchise agreement
between the manufacturer and such dealer in order for the dealer to participate
in such convention or rally. Out-of-state dealers shall register with the
Department of Revenue and purchase a permit 30 days prior to participating in
any rally or convention in Georgia. The cost of such permit shall be $500.00 per
dealer. Any manufacturer or dealer that violates this paragraph shall not be
eligible to participate in any such events; or
(3)
Any dealer at a convention or rally if:
(1)
There are ten or more dealers from this state participating in such convention
or rally; and
(2)
Such convention or rally takes place at a location other than the principal
place of business of any of the dealers participating in such convention or
rally.
Nothing
in this subsection shall be applied to impair an obligation of a contract
existing on the effective date of this subsection.
(c)
The state revenue commissioner and the Department of Revenue shall enforce this
Code section in the same manner as provided by Code Sections 10-1-666 and
10-1-667 for violations of Article 22 of this
chapter."
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval and shall apply to any agreement entered into
on or after such date and to any renewal, modification, or amendment made on or
after such date to any such agreement.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.