An Act to Clarify
Maine Legislature, Session 132, LD 2104
Committee Amendment CA_A_H825 (House)
Amends: 10 MRSA §1243, 10 MRSA §1248

COMMITTEE AMENDMENT "/^ " to H.P. 1419, L.D. 2104, "An Act to Clarify
Contractual Rights of Personal Sports Mobile Dealers"
Amend the bill in section 1 in paragraph A in the first blocked paragraph by striking
out all of the first sentence (page 1, lines 14 to 16 in L.D.) and inserting the following; 'The
allocation of new personal sports mobiles to a new personal sports mobile^ dealer fhat is
established in accordance with section 1244 must be made on a fair and equitable basis for
each model of new personal sports mobiles.'
Amend the bill by mserting after section 4 the following:
'See. 5. 10 MRSA §1243, sub-§3, ^M, as enacted by PL 1997, c, 473, §3, is
amended to read:
M. To require any new personal sports mobile dealer to change the location of the new
personal sports mobile dealership or during the course of the agreement or franchise to
make any substantial alterations or renovations to the dealership premises when to do
so would be unreasonable. A manufacturer may not require any substantialalterations
or renovations to the dealership's oremises_without_writte^M^ a sufficient
supply of new personal sports mobiles so as to justify an expansion in light of the
current market and economic conditions or requwe any_new perso^m^^^^^
dealer to use a specific uroduct or service provider in relation to any dealership.
premises or facilities alterations or renovations unless the manufacturer reimburses the
dealer for a substantial portion, which may not be less than 55%. of the cost of the
product or service provider. However, a new personal sports mobile dealer may elect
to use a vendor selected by the dealer if the product or service is substantiallv similar
in quality and design to that required by the manufacturer, sub! ect to the manufacturer's
approval, which may not be unreasonablywithheld, A manufacturer may not reauire
any substantial alteration or renovation to dealership premises or facilities without
providing, upon a dealer's request, a dealer-specific detailed economic analysis of the
impact of the alteration pr renovate on sales, service and dealer profitabilitv that
6 substantiates the need for the alteration or renovation or reguire a new personal sports
mobile dealer to. make any substantial alterations or renovations more than once every
COMMITTEE AMENDMENT
ROS COMMITTEE AMENDMENT "f
COMMITTEE AMENDMENT "M" to H.P, 1419, L.D, 2104
10_vears. A _dealer-soecific detailed economic analysis provided bv_themanufacturer
may not be interpreted as a guaranty of a return on investment by the dealer. This
paragraph does not create an exemption from the requirements of state health and safety
laws or local zonme laws or restrict the requirement to comolv with alterations or
renovations that are necessary to adequately sell or service a personal sports mobile
due to the technology of the personal sports mobile. This paraeraph does not allow a
dealer or vendor to infringe upon or impair a manufacturer's intellectual property or
trademark and trade dress rights. A manufacturer is not required to reimburse a dealer
for the cost of signs or other materials bearing that manufacturer s own trademark;'
Amend the bill by inserting after section 7 the following;
'See. 8. 10 MRSA §1248, as amended by PL 1997, c. 717, §4, is repealed and the
following enacted m its place:
§1248. Warranty
1. Parts OIL labor; satisfactiQnof warranty or recall. If a fi-anchisor reguu-es or
permits a franchisee to perform labor or provide riarts to satisfy a warranty created by the
franchisor, the franchisor shall tnwerlv and oromptlv fulfill its warranty obligations and;
A. Reimburse the franchisee at the retail rate customarilv charged for all parts used by
the franchisee to satisfy the warranty oLanv recall. If the franchisor provides a part to
the_jranchisee for a specific warranty repair, the franchisor shall compensate the
franchisee for the difference between the cost of the part to the franchisee and the full
retail price of the part. which may not be less than the cost of any such part already in
the fi-anchisee's parts inventory; and
B, Reimburse the franchisee for actual labor performed by the franchisee to satisfy the
warranty, includmg time to diagnose the problems. The diagnostic time must be
reasonable and supported by the franchisee's records. Reimbursement for labor must
be in accordance with the time manual used by the franchisee_and may not be less than
the retail rate customarilv charged by that franchisee for the same labor when not
nerformed to satisfy a warranty, To be entitled to reimbursement under this section, a
franchisee must post the rate for labor not performed to satisfy a warranty in a ulace
conspicuous to service customers.
2. Claim. A claim by a franchisee for compensation for parts provided or for
reimbursement for labor performed to satisfy a warranty must be anoroved or disapDroved
within 30 days of receipt by the franchisor. A claim that is approved must be paid within
30 days of its aporoval. If a franchisor disapproves a claim, the franchisor shall notify the
franchisee that submitted the claim within 30 days of disaowoval of the soecific reasons
for disapproval.
3. Restrictions prohibited. A franchisor may not. by aereement by restriction upon
reimbursement or otherwise, restrict the nature or extent of labor performed or parts
9 provided if such a restriction impairs the franchisee's ability to satisfy a warranty created
by the franchisor or any recall by performing labor competently or by oroviding parts in
accordance with generally accepted standards.
4. Costs; fees. If a franchisee brings a legal action to collect a disapproved claim and
is successful in that action, the court shall award the franchisee the cost of the action and
reasonable attorney's fees. Reasonable attomev s fees must be_determmed by the value of
COMMITTEE AMENDMENT
.., COMMITTEE AMENDMENT "7^ " to H,P, 1419, L.D, 2104
ROS'
the_time^easonablv expended by the attomey and not by the amount of the recovery on
behalf of the franchisee.'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment clarifies that the allocation of new personal sports mobiles to a new
personal sports mobile dealer must be made on a fair and equitable basis for each model of
new personal sports mobiles.
The amendment prohibits a manufacturer from requiring any substantial alterations or
renovations to a personal sports mobile dealership's premises without written assurance of
a sufficient supply of new personal sports mobiles to justify an expansion or from requiring
a dealership to use a specific product or service provider unless the manufacturer
reimburses the dealer for a substantial portion of the cost.
The amendment also repeals and replaces the warranty section that governs certain
duties and reimbursement for the cost of parts and labor by a franchisor to a franchisee, as
it relates to a warranty or recall created by the franchisor,
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved; 02/19/26
t-RL.
LD 2104 LR 2870(02)
An Act to Clarify Contractual Rights of Personal Sports Mobile Dealers
Fiscal Note for Bill as Amended by Committee Amendment ^"
Committee: Housing and Economic Development
Fiscal Note Required: Yes
Fiscal Note
Minor cost increase - General Fund
Minor revenue increase - General Fund
Correctional and Judicial Impact Statements
This bill may increase the number of civil suits filed in the court system. The additional workload associated wi+< se
minimal number of new cases filed in the court system does not require additional funding at this time, The colk jn
of additional filing fees will increase General Fund revenue by minor amounts,
LR2870(02) - Fiscal Note - Page 1 of 1