Date: 05/04/2010

Final
BILL SUMMARY for SB10-201

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Moved to refer Senate Bill 10-201 to the CommitteePASS



11:59 AM -- Senate Bill 10-201

Representative Soper and Representative Balmer, co-prime sponsors, presented Senate Bill 10-201 concerning enforcement of the motor vehicle franchise laws against certain types of licensees. This bill authorizes the executive director of the Department of Revenue to impose a civil fine of between $10,000 and $25,000 per day on a motor vehicle manufacturer, distributor, or manufacturer's representative for failing to offer the right of first refusal or make a compensation payment to the dealer under the right of first refusal. In addition to recovery of reasonable attorney fees, the bill expands the remedies that may be recovered for failing to offer the right of first refusal to include the costs of the action. House Bill 10-1049 created a right of first refusal when a motor vehicle manufacturer terminates a motor vehicle dealer's franchise and within five years offers the same franchise within five miles of the original franchise. House Bill 10-1049 was signed into law by the Governor on March 22, 2010.

12:01 PM

Representative Soper commented on the bill. Representative Balmer talked about House Bill 10-1049 and the noncompliance by Chrysler. He said the bill is attempting to encourage Chrysler to comply with the law by increasing the penalties. Representative Rice said the penalties are an attempt to have Chrysler comply with the law and not to collect those penalties.

12:07 PM -- Jep Seman, Alliance of Automobile Manufacturers, was asked to come up to respond to committee questions. He said the organization is neutral on the bill.

12:09 PM -- Jim Fynes, representing Phil Long Denver Jeep, testified in support of the bill. He talked about his experience losing a dealership. Representative Balmer asked some questions of the witness. Representative Liston asked if Mr. Fynes would continue to do business with Chrysler. Mr. Fynes responded. Representative Liston asked how many jobs were lost when Mr. Fynes' dealership was closed. Mr. Fynes stated 45 jobs were lost.

12:17 PM -- Yale King, representing King Auto Group, testified in support of the bill. Representative Gagliardi asked whether there are any whistle blower protection laws that can protect him.

12:21 PM -- David Fitzgerald, representing Northglenn Dodge, testified in support of the bill. Representative Gagliardi talked about American made cars and her positive experience buying a car a few years ago from Medved. Representative Balmer commented that the most profitable dealerships were the ones that were closed down. Representative Liston asked whether Mr. Fitzgerald is out of the car dealer business. Mr. Fitzgerald responded.

12:28 PM -- Melissa Kuipers, representing the Colorado Auto Dealers Association, testified in support of the bill. She talked about issues in the auto industry caused by Chrysler. Representative Liston asked who will set the penalties in the bill. Ms. Kuipers said the executive director of the Department of Revenue will be able to impose a civil fine of between $10,000 and $25,000 per day. Representative Rice asked when the bill would go into effect. Ms. Kuipers responded.

12:30 PM -- Geoff Blue, representing the Colorado Attorney General's Office, testified on the bill. He talked about the lawsuit Chrysler has filed against the state regarding House Bill 10-1049.

12:32 PM

Representative Soper commented on the bill.

BILL:SB10-201
TIME: 12:33:02 PM
MOVED:Soper
MOTION:Moved to refer Senate Bill 10-201 to the Committee of the Whole. The motion passed 10-0.
SECONDED:Balmer
VOTE
Balmer
Yes
Bradford
Yes
Casso
Yes
Kerr A.
Yes
Liston
Yes
Middleton
Yes
Priola
Yes
Soper
Yes
Stephens
Excused
Gagliardi
Yes
Rice
Yes
Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS




12:33 PM

The committee adjourned.