An Act To Industrial and Forestry
Maine Legislature, Session 125, LD 0187
Committee Amendment CA_A_H324 (House)
Amends: 10 MRSA §1293-A

COMMITTEE AMENDMENT "~,, to H.P. 164, L.D. 
Amend the Laws Regulating Dealers of Agricultural, Light 
Equipment" 
187, Bill, "An Act To 
Industrial and Forestry 
Amend the bill by striking out the title and substituting the following: 
'An Act To Amend the Laws Regulating Dealers of Agricultural, Industrial, 
Construction and Forestry Equipment' 
Amend the bill in section 1 by striking out all of subsection 2 (page I, lines 4 to 12 in 
L.D.) and inserting the following: 
'2. Dealer. "Dealer" means a person, corporation or partnership primarily engaged 
in the business of retail sales of farm and utility tractors, forestry equipment, industrial 
equipment, construction equipment, farm implements, farm machinery, yard and garden 
equipment, attachments, accessories and repair parts. "Dealer" does not include a person, 
corporation or partnership primarily engaged in the business of retail sales of heavy 
construction, industrial and utility equipment, attachments, accessories and repair parts. 
"Dealer" does not include a person, corporation or partnership primarily engaged in the 
retail sale of all-terrain vehicles or motorcycles. "Dealer" does not include a single-line 
dealer as defined in subsection 5-A.' 
Amend the bill in section 2 by striking out all of subsection 4 (page I, lines 15 to 17 
in L.D.) and inserting the following: 
'4. Inventory. "In:ventory" means farm, forestry, utility or industrial equipment, 
construction equipment, implements, machinery, yard and garden equipment, attachments 
or repair parts. These tenns do not include heavy construction equipment.' 
Amend the bill in section 3 in subsection 5-A in paragraph B in the last line (page 1, 
line 24 in L.D.) by striking out the following: "$20,000,000" and inserting the following: 
'$100,000,000' 
Amend the bill by inserting after section 3 the following: 
COMMITTEE AMENDMENT 
\l.. o'r S . 
COMMITIEE AMENDMENT "A" to H.P. 164, L.D. 187 
'Sec. 4. 10 MRS A §1286, as amended by PL 2009, c. 325, Pt. B, § 1 and affected 
by §27, is further amended to read: 
§1286. Usage of trade 
The terms "utility" "utility," "forestry," "construction" and "industrial," when used to 
refer to equipment, machinery, attachments, yard and garden equipment or repair parts, 
have the meanings commonly used and understood among dealers and suppliers of farm 
equipment as usage of trade in accordance with Title 11, section 1-1303, subsection (3).' 
Amend the bill in section 7 in § 1289 in subsection 2 in paragraph A in the 2nd line 
(page 2, line 31 in L.D.) by striking out the following: "and light industrial equipment," 
and inserting the following: 'and .. industrial and construction equipment' 
Amend the bill in section 7 in § 1289 in subsection 4 in the 3 rd line (page 3, line 19 in 
L.D.) by striking out the following: "2%" and inserting the following: '1 112%' 
Amend the bill in section 14 by striking out all of paragraph B (page 4, lines 17 to 26 
in L.D.) and inserting the following: 
'B. A dealer that performs warranty work as provided for in this section must be 
compensated for parts used in fulfilling such warranty work in an amount that is not 
less than the dealer's costs for such parts plus B% 20% or the supplier's suggested 
retail price for such parts, including whichever is greater, plus all freight and handling 
charges applicable to such parts, to reimburse the dealer's reasonable costs of doing 
business and providing such warranty service on behalf of the supplier. 
If the 
warranty work is provided on behalf of the supplier on a product sold by a 
nonservicing dealer, the compensation for parts used in fulfilling such warranty work 
must be at an amount that is not less than the supplier's suggested list price or dealer's 
cost plus 30%, whichever is greater, plus freight and handling charges applicable to 
such parts.' 
Amend the bill by inserting after section 14 the following: 
'Sec. 15. 10 MRSA §1293-A is enacted to read: 
§ 1293-A. Prohibited acts 
A supplier may not: 
1. Coercion involving deliveries and orders. Mandate, coerce or attempt to coerce 
any dealer to order or accept delivery of equipment or repair parts not required by law 
that have not been voluntarily ordered by the dealer, unless the equipment or repair parts 
are comprised of safety features required by the supplier; 
2. 
Interference in dealer's business. 
Require any dealer to refrain from 
participation in the management or acquisition of, or investment in, any other business; or 
3. Coercion involving sale of equipment. Prevent, coerce or attempt to coerce a 
dealer from having an investment in or holding a dealership contract for the sale of 
competing product lines or makes of equipment or require the dealer to provide separate 
facilities for competing product lines or makes of equipment. 
COMMITTEE AMENDMENT 
'It.o<:f ~ 
COMMITTEE AMENDMENT "R" to H.P. 164, L.D. 187 
Sec. 16. 
Legislative findings and intent. 
The Legislature finds that the 
distribution of equipment primarily designed for or used in agriculture in the State vitally 
affects the general economy of the State and the public interest and public welfare and, in 
the exercise of the State's police power, it is necessary to regulate equipment primarily 
designed for or used in agriculture and related equipment suppliers, dealers and their 
representatives doing business in the State in order to prevent frauds, unfair business 
practices, unfair methods of competition, impositions and other abuses upon its citizens. 
The Legislature intends to protect the citizens of the State from the sudden loss of access 
to equipment and local parts and service for large and expensive pieces of machinery and 
to promote the public welfare by providing free and open trade of equipment primarily 
designed for or used in agriculture within the State. 
Sec. 17. Application. This Act applies to all contracts and agreements in effect on 
the effective date of this Act that have no expiration date and are continuing contracts and 
all other contracts and agreements entered into, amended, renewed or extended after the 
effective date of this Act.' 
Amend the bill in section IS in the 3rd and 4th lines (page 4, lines 29 and 30 in L.D.) 
by striking out the following: "equipment and light" and inserting the following: 
'equipment, construction equipment and' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment changes the title of the bill to include construction and industrial 
equipment. It also makes the following changes to the bill. 
1. It amends the definition of "dealer" to restore the inclusion of persons that sell all 
industrial equipment, instead of light industrial equipment as in the bill, and adds persons 
that sell construction equipment. It removes the exclusion in the definition of "dealer" for 
heavy construction, industrial and utility equipment. 
2. It amends the definition of "inventory" to restore the inclusion of all industrial 
equipment, instead of light industrial equipment as in the bill, and adds construction 
equipment. 
3. It amends the definition of "single-line dealer" by increasing the total annual 
average sales volume for the previous 3 years to in excess of $100,000,000 instead of 
$20,000,000 for the entire territory subject to the agreement with the supplier. 
4. It makes changes to the repurchase terms by decreasing the penalty the supplier is 
required to pay to the dealer from 2% to I 1/2% per day on any outstanding balance over 
days. 
5. It makes changes to the laws governing warranty obligations by requiring that the 
dealer that performs warranty work be compensated for parts in fulfilling the warranty 
work in an amount that is not less than the dealer's costs for such parts plus 20% or the 
supplier's suggested retail price for such patts, whichever is greater, plus freight and 
handling charges. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 164, L.D. 187 
6. It prohibits a supplier from mandating, coercing or attempting to coerce any dealer 
to order or accept delivery of equipment or repair parts not required by law that have not 
been voluntarily ordered by the dealer, unless the equipment or repair parts are comprised 
of safety features required by the supplier; requiring any dealer to refrain from 
participation in the management or acquisition of, or investment in, any other business; or 
preventing, coercing or attempting to coerce a dealer from selling competing products 
lines or makes of equipment or requiring the dealer to provide separate facilities for 
competing product lines or makes of equipment. 
7. 
It adds a statement of legislative findings and intent and adds an application 
section that provides that the provisions of the bill apply to all contracts and agreements 
in effect on the effective date of the bill that have no expiration date and are continuing 
contracts and all other contracts and agreements entered into, amended, renewed or 
extended after the effective date of the bill. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04129111 frac 
LD 187 
LR 197(02) 
An Act To Amend the Laws Regulating Dealers of Agricultural, Light Industrial and Forestry 
Equipment 
Fiscal Note for Bill as Amended by Committee Amendment ,,4, 
Committee: Labor, Commerce, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor revenue increase - General Fund 
Correctional and Judicial Impact Statements 
Establishes new civil violations. 
The collection of additional fines may also increase General Fund revenue by minor amounts. 
LRO 197(02) - Fiscal Note - Page 1 of 1