An Act To Amend the Motor Vehicle Franchise Law LR 1735(02)
Maine Legislature, Session 121, LD 1294
Committee Amendment CA_A_S184 (Senate)
Amends: 10 MRSA §1171-B

COMMITTEE AMENDMENT "A" to S.P. 425, L.D. 
Act To Amend the Motor Vehicle Franchise Law" 
1294, Bill, "An 
Amend the bill by inserting after section 3 the following: 
'Sec. 4. 10 MRSA §1171-B, sub-§3, as enacted by PL 1997, c. 
521, §5, is amended to read: 
3. 
Civil 
penalty. 
If 
the 
SeeFe~aFy--ef--S~a~e board 
determines after a proceeding conducted in accordance with t:he 
Ma~Be-AQmi£J~~~~~J~~~~~~~-aBQ-£Q~e5-~-~~-SeGFe~aFy-ef 
St:at:e 
this 
chapter 
that 
a 
manufacturer 
or 
distributor 
is 
violating or has violated any provision of this chapter or any 
rule or order of the SeeFet:aFy-ef-S~at:e ~ 
issued pursuant to 
this chapter, the SeeFet=aFy--o-f'--St=at=e board shall levy a civil 
penalty of not less than $1,000 nor more than $10,000 for each 
violation. 
If 
the 
violation 
involves 
multiple 
transactions 
within a 60-day period, these multiple transactions are deemed a 
single violation. 
In determining the amount of a civil penalty levied under this 
chapter, the SeeFet=aFy-ef-St=at=e board shall consider: 
A. 
The seriousness of the violation, including but not 
limited to the nature, circumstances, extent and gravity of 
the prohibited acts and the harm or potential harm created 
to the safety of the public; 
COMMITTEE AMENDMENT 
~.\~ 
" 
COMMITTEE AMENDMENT "A " to S.P. 425, L.D. 1294 
B. 
The 
economic 
damage 
to 
the 
public 
caused 
by 
the 
violation; 
C. 
Any previous violations; 
D. 
The amount necessary to deter future violations; 
E. 
Efforts made to correct the violation; and 
F. 
Any other matters that justice may require.' 
Further amend the bill in section 5 in paragraph B in the 
14th line 
(page 
1, 
line 
in 
L.D.) 
by 
striking out 
the 
following: "365" and inserting in its place the following: '90' 
and in the 18th line (page 2, line 3 in L.D.) by striking out the 
following: 
"365-day" and inserting in its place the following: 
'90-day' 
Further 
amend 
the 
bill 
in 
section 
in 
the 
indented 
paragraph in the 14th line from the end (page 4, line 50 in L.D.) 
by striking out the following: "30" and inserting in its place 
the following: 'aQ QQ' and in the 13th line from the end (page 4, 
line 
in 
L.D.) 
by 
striking out 
the 
following: 
"30" 
and 
inserting in its place the following: 
'aQ QQ' 
and in the 12th 
line from the end (page 5, line 1 in L.D.) by striking out the 
following: "l..aQ." and inserting in its place the following: '.2Q' 
Further amend the bill in section 11 in that part designated 
"§1187." in subsection 1 in paragraph A in subparagraph (1) in 
the first line (page 5, line 47 in L.D.) by striking out the 
following: 
"Four" 
and inserting in its place the 
following: 
'Three' 
Further amend the bill in section 11 in that part designated 
n§11.87. n 
in subsection 1 in paragraph A in subparagraph (3) in 
the first line (page 6, line 2 in L.D.) by striking out the 
following: 
"A member" and inserting in its place the following: 
'Two members' 
Further amend the bill in section 11 in that part designated 
"§1187-A." in the first paragraph in the 2nd line from the end 
(page 7, 
line 11 in L.D.) by inserting after the following: 
"reguired." the following: 
'If additional funding is reguired, 
the board shall meet those funding reguirements by adopting rules 
pursuant to section 1187, subsection 6 to impose additional fees 
on motor vehicle dealers or manufacturers. 
In establishing those 
fees, 
the board shall ensure that revenues 
from 
those 
fees 
closely match the costs of the board to administer and enforce 
this chapter. 
The board may amend those rules biennially as 
COMMITTEE AMENDMENT 
,.'~. 
1!t.< ~' 
COMMITTEE AMENDMENT if " to S.P. 425, L.D. 1294 
necessary to ensure that the 
board has sufficient funds 
to 
administer and enforce this chapter.' 
Further amend the bill in section 11 in that part designated 
"§1187-A." in the 2nd paragraph in the 5th and 6th lines (page 7, 
lines 18 and 19 in L.D.) by striking out the following: "which 
must be 1/2 the salary of the Bureau of Motor Vehicle's attorney 
assigned to the board," 
Further amend the bill in 
"§1188." in subsection 2 in 
L.D.) 
by 
inserting 
after 
following: 'or franchisor' 
section 11 in that part designated 
the 2nd line {page 7, line 31 in 
the 
following: 
"franchisee" 
the 
Further amend the bill by inserting after section 11 the 
following: 
'Sec. 12. Position created. 
An attorney position is created 
within the Department of the Secretary of State, Bureau of Motor 
Vehicles. 
The incumbent in that position serves as the full-time 
chair of the Maine Motor Vehicle Franchise Board, as provided by 
the 
Maine 
Revised 
Statutes, 
Title 
10, 
section 
1187. 
This 
position 
is 
funded 
entirely 
from 
the 
Maine 
Motor 
Vehicle 
Franchise Fund, as provided in Title 10, section 1187-A. 
Sec. 
13. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
SECRETARY OF STATE, DEPA.R"l'MERT OF THE 
The 
following 
Bureau of Administrative Services and Corporations 
0692 
Initiative: 
Allocates 
funds 
operating costs 
necessary to 
Franchise Board. 
for 
one 
Attorney 
staff the 
Maine 
other Special Revenue Funds 
Positions - Legislative Count 
Personal Services 
All Other 
Capital Expenditures 
Other Special Revenue Funds Total 
2003-04 
(1.000) 
$51,188 
$13,788 
$15,297 
$80,273 
position 
and 
Motor 
Vehicle 
2004-05 
(1. OOO) 
$74,057 
$10,488 
$0 
$84,545' 
Further amend the 
nonconsecutive 
Part 
consecutively. 
bill by relettering 
letter 
or 
section 
or renumbering any 
number 
to 
read 
COMMITTEE AMENDMENT 
~~~ 
.~.,. 
COMMITTEE AMENDMENT" A .. to S.P. 425, L.D. 1294 
SUMMARY 
This 
amendment 
retains 
the provision in 
the bill that 
prohibits 
automobile 
franchisors 
from 
recovering 
costs 
for 
reimbursing a 
franchisee for parts and labor. 
The 
amendment 
changes the length of time allowed for filing various notices and 
claims proposed in the bill, changes the composition of the 
proposed Maine Motor Vehicle Franchise Board by reducing from 4 
to 3 the number of members who are motor vehicle dealers and by 
increasing from 
one 
to 
the 
number of public members 
and 
clarifies that the board, rather than the Secretary of State, has 
the authority to levy civil penalties for violations of the laws 
governing business practices between motor vehicle manufacturers, 
distributors and dealers. 
The amendment also creates a position in the Bureau of Motor 
Vehicles to serve as the full-time chair of the Maine Motor 
Vehicle Franchise Board. 
Compensation for that position and all 
costs for the operation of the board are paid entirely from the 
Maine Motor Vehicle Franchise Fund, which is funded by fees paid 
by automobile franchisees and franchisors. 
FISCAL ~OTE I<EQLlRED 
(See attached) 
COMMITTEE AMENDMENT 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Revised: 05/14/03 frae 
Office of Fiscal and Program Review 
LD 1294 
An Act To Amend the Motor Vehicle Franchise Law 
LR 1735(02) 
Fiscal Note for Bill as Amended by Committee Amendment '4 ,~s~ 1<?4 
Committee: Business, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
2003-04 
2004-05 
2005-06 
2006-07 
$80,273 
$84,545 
$87,927 
$91,444 
$89,850 
$119,800 
$119,800 
$119,800 
Correctional and Judicial Impact Statements 
This bill may decrease the number of civil suits filed in the court system 
Fiscal Detail and Notes 
The Department of the Secretary of State will need additional Other Special Revenue Funds allocations of $80,273 
and $84,545 in fiscal years 2003-04 and 2004-05, respectively, for the costs of one Attorney position. The bill also 
establishes new dedicated fees to be collected by the Maine Motor Vehicle Franchise Board; the estimated amounts 
are $89,850 and $119,800 in fiscal years 2003-04 and 2004-05, respectively. 
LR1735(2) - Fiscal Note - Page 1 of 1