Legislative Update/Watch List

We continue to track over 20 legislative proposals in numerous states, all varying widely in likelihood of passage. The report below covers a few of the bills we have on our watch list.

Maine LD – 364: Dealers in the state maintain that after the 2011 passage of state law governing manufacturers compensation for warranty repairs, some dealers were notified by their major supplier that a surcharge would be added to the cost of “select” whole goods. This appears to be an effort by one or more majors to recoup the higher cost of doing business with Maine dealers, as a direct result of legislation enacted.

The language supported by the Northeast Equipment Dealers Association would prohibit a manufacturer from assessing this surcharge and we are told is modeled after the language in Maine’s statutes applying to automobile manufacturers.

The bill would add to the list of prohibited acts, the following: A supplier may not recover costs for reimbursement. If the supplier has reimbursed a dealer for equipment, repair parts or labor to avoid a violation of this section, recover the supplier’s costs of reimbursement.

This bill passed the Senate last week and now awaits action in the House.

Maryland SB – 404: Provides a subtraction modification under the Maryland individual and corporate income tax for specified expenses incurred to buy and install enhanced agricultural management equipment (no-till) under specified circumstances; defining “enhanced agricultural management equipment”; applying the Act to tax years after 2012; etc. This bill passed the House with no opposition and was passed out of cut of the Senate Ways and Means Committee last week.

New Jersey – AB 2133: This bill amends the new vehicle “lemon law” to include farm tractors under the types of motor vehicles covered under the terms of the “lemon law”, along with the existing categories of passenger automobiles, authorized emergency vehicles and motorcycles. The bill references the definition of “farm tractor” used in R.S.39:1-1, which definition is, “every motor vehicle designed and used primarily as a farm implement for drawing plows, mowing machines, and other implements of husbandry.”

Kentucky – HB 295: This bill amends various sections of state law to define “terminate” or “termination” and clarifies the existence of consent in retail agreement contracts beat the adjournment deadline and awaits the Governor’s signature. Also on the Governor’s desk, is a bill the legislature passed in the final hour of this year’s session that allows hemp production in the state, if they can obtain a waiver from the federal government.

Missouri – ‘Right to Farm’ Last week, the Missouri Senate Ag Committee unanimously passed HJR 7&11 and SJR 22, the Right to Farm constitutional referendum. The legislation now goes to the full Senate for consideration. The bill would help protect the state’s $11 billion per year agriculture industry from attacks made by out-of-state special interest groups, and would go to a public vote on the November 2014 ballot.

New Hampshire – SB 126: Attempts to consolidate the laws for the auto industry dealers with equipment dealers of several types, including farm equipment. In the process it defines almost everything our members manufacturer as a “motor vehicle” which brings up an entire list of titling, registration and tax issues. This bill has passed the Senate, was introduced in the House and assigned to committee last week. We continue to oppose this legislation in New Hampshire.

Texas – SB 1415: Would require a supplier to provide notice or an opportunity to cure if the grounds for termination of a dealer were: the dealer fails to substantially comply with essential and reasonable requirements imposed on the dealer under the terms of the dealer agreement, provided that such requirements are not different from requirements imposed on other similarly situated dealers either by their terms or by the manner in which they are enforced. If passed, this would bring Texas law in line with other states which require proper notice and opportunity to cure.

If you would like additional information on any of the above bills or have legislation in your state you believe we should be tracking, please give Vernon Schmidt a call in the Association office, 314.878.2304.