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Senate Bill 854 |
Senate Author: Van de Putte |
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Effective: 6-14-13 |
House Sponsor: Harper-Brown |
Senate Bill 854 amends the Occupations Code to authorize a specific use agreement, defined in the bill, to prohibit the sale or sublease of the dealership property by the transferee to a person for a purpose other than the operation of a dealership under a franchise with the owner, defined in the bill, of the property, or to make such limitations applicable to any successor or sublessee of the transferee.
Senate Bill 854 provides for a prohibition against an owner coercing an existing franchised dealer to relocate an existing dealership and establishes that a specific use agreement is void if a person entered into the specific use agreement as a result of coercion. The bill sets out provisions relating to the applicability and duration of a specific use agreement. The bill establishes that there is no penalty for the full performance by the transferee and transfer of title to the transferee prior to the time set forth by the contract's terms unless the specific use agreement associated with the sale of property expressly provides otherwise.
Senate Bill 854 specifies that the prohibition against a dealer protesting an application to relocate a dealership if the proposed relocation site is two miles or less from the dealership's current location applies to a franchised dealer and conditions the prohibition on the proposed relocation site not being more than two miles from the site where the dealership is currently located nor closer to the franchised dealer than the site from which the dealership is being relocated.