An Act To Enact the Maine Small Business Investment Protection Act
Maine Legislature, Session 126, LD 1458
Committee Amendment CA_A_H669 (House)

COMMITTEE AMENDMENT "A " 
to H.P. 1043, L.D. 1458, Bill, "An Act To 
Enact the Maine Small Business Investment Protection Act" 
Amend the bill by striking out the title and substituting the following: 
'Resolve, To Establish the Commission To Study Business Format Franchising' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
, 
'Sec. 1. Commission To Study Business Format Franchising established. 
Resolved: That the Commission To Study Business Fonnat Franchising, referred to in 
this resolve as "the commission," is established; and be it further 
Sec. 2. Commission membership. Resolved: That the commission consists of 
members as follows: 
1. Two members of the Senate appointed by the President of the Senate, including a 
member from each of the 2 parties holding the largest number of seats in the Legislature; 
2. Two members of the House of Representatives appointed by the Speaker of the 
House, including a member from each of the 2 parties holding the largest number of seats 
in the Legislature; 
3. Two members appointed by the Governor who possess expertise in the subject 
matter of the study, as follows: 
A. A Maine-based business format franchisee, selected from a list of not less than 3 
individuals provided by a statewide association of franchisees; and 
B. 
A representative of a business format franchisor doing business in this State, 
selected from a list of not less than 3 individuals provided by a national trade 
association representing franchisors and franchisees. 
The Governor shall consider any recommendations submitted within 20 days of the 
effective date of this section; and 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "An to H.P. 1043, L.D. 1458 
4. 
The Commissioner of Economic and Community Development or the 
commissioner's designee; and be it further 
Sec. 3. Chairs. Resolved: That the first-named Senate member is the Senate 
chair and the first-named House of Representatives member is the House chair of the 
commission; and be it further 
Sec. 4. 
Appointments; convening of commission. 
Resolved: 
That all 
appointments must be made no later than 30 days following the effective date of this 
resolve. The appointing authorities shall notify the Executive Director of the Legislative 
Council once all appointments have been completed. After appointment of all members, 
the chairs shall call and convene the first meeting of the commission. If 30 days or more 
after the effective date of this resolve a majority of but not all appointments have been 
made, the chairs may request authority and the Legislative Council may grant authority 
for the commission to meet and conduct its business; and be it further 
Sec. 5. DuOties. Resolved: That the commission shall study the following issues: 
1. 
The frequency of transfers of franchises in this State from a franchisee to a 
member of the franchisee's family, including but not limited to cases in which the 
franchisee dies or becomes incapacitated; 
2. Legal issues raised with state franchise laws that require contract disputes to be 
subject to the jurIsdiction of state courts; 
3. The cancellation, termination and renewal terms of franchise agreements; 
4. The impact of the imposition of the obligation to act in good faith on parties to a 
franchise agreement; and 
5. The impact of the imposition of the requirement of reasonableness on terms and 
provisions of a franchise agreement. 
In studying each of these issues, the commission shall discuss, among other things: 
whether the absence of business format franchise regulation in this State has resulted in 
unfair or unforeseen treatment of franchisors or franchisees; whether federal regulations 
and contractual agreements are effective or sufficient to address issues raised by 
franchisees; how other states regulate business format franchises; and any potential legal 
challenges that could be raised as a result of state regulation of business fonnat 
franchises; and be it further 
Sec. 6. Staff assistance. Resolved: That the Legislative Council shall provide 
necessary staffmg services to the commission; and be it further 
Sec. 7. 
Report. 
Resolved: 
That, no later than November 5, 2014, the 
commlSSlOn shall submit a report that includes its findings and recommendations, 
including suggested legislation, for presentation to the joint standing committee of the 
Legislature having jurisdiction over labor, commerce, research and economic 
development matters.' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to H.P. 1043, L.D. 1458 
SUMMARY 
This amendment is the majority report of the committee and r_eplaces the bill with a 
resolve to establish the Commission To Study Business Format Franchising. It requires 
the commission to study the following: the frequency of transfers of franchises in this 
State from a franchisee to a member of the franchisee's family, including but not limited 
to cases in which the franchisee dies or becom<;:s incapacitated; legal issues raised with 
state franchise laws that require contract disputes to be subject to the jurisdiction of state 
courts; the cancellation, termination and renewal terms of franchise agreements; the 
impact of the imposition of the obligation to act in good faith on parties to a franchise 
agreement; and the impact of the imposition of the requirement of reasonableness on 
II 
terms and provisions of a franchise agreement. It requires the commission to submit a 
report by November 5, 2014 to the joint standing committee of the Legislature having 
jurisdiction over labor, commerce, research and economic development matters. 
FISCAL ~OTE REQURED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/19/14 7!?ac 
LD 1458 
LR 1591(02) 
An Act To Ena~t the Maine Small Business Investment Protection Act 
Fiscal Note for Bill as Amended by Committee Amendment 11" (H -LouA) 
Committee: Labor, Commerce, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
Legislative Cost/Study 
Legislative Cost/Study 
The general operating expenses of this commission are projected to be $2,500 in fiscal year 2014-15. The 
Legislature's proposed budget includes $10,000 in fiscal year 2014-15 for legislative studies. Whether the amounts 
are sufficient to fund all studies will depend on the number of studies authorized by the Legislative Council and the 
Legislature. The additional costs of providing staffing assistance to the study during the interim can be absorbed 
utilizing existing budgeted staff resources. 
Fiscal Detail and Notes 
Additional costs to the Department of Economic and Community Development to serve on the Commission can be 
absorbed within existing budgeted resources. 
LR159 1(02) - Fiscal Note - Page 1 of 1