State Legislative Update: A Look at Bills Important to You
We’ve pulled together this round-up of legislative news important to the industry.
Kansas Dealer Legislation We first reported on SB-426 in the March 6 issue of Shortliner. The proposal received more attention last week when representatives from Landoll Corporation and Moridge Manufacturing, member companies based in Kansas, as well as Vernon Schmidt, the Association’s executive vice president, testified in opposition to the bill.
Schmidt shared with legislative committee members the differences between the bargaining strength of major multi-national tractor corporations and our member companies when it comes to dealer contract negotiations. He also called the committee’s attention to some of the flaws in what he called “a rushed, one-sided bill that fails to address serious concerns of shortline manufacturers, which was introduced without any consultation with our members or the Association.”
The bill also was opposed by the Outdoor Power Equipment Institute (OPEI), AEM, and several major tractor manufacturers. Western Equipment Dealers Association spoke in favor of the bill. Our Association has retained the services of a lobbyist in Kansas.
The committee took no action. Find the full text of this bill and copies of written testimony at FarmEquip.org/Kansas.
Right to Repair—Vermont While similar bills have been filed in 18 other states, only Vermont seems at this point serious about passing legislation in 2018. The State Senate passed SB180, a bill to make information, schematics, diagnostics, and repair manuals from manufacturers more accessible, and sent the bill to the State House where a hearing is scheduled for March 21.
Competitive Circumstances—Idaho Last week the Idaho legislature approved HB526 and sent it to the governor. The bill adds language to the state’s current equipment dealer laws—language that prohibits manufacturers or distributors from doing anything to “substantially change the dealer’s competitive circumstances without good cause” and overrides language in current contract that qualifies what action would be defined as a substantial change in the dealer’s competitive circumstances.
Change in competitive circumstances is defined as “an event, act or omission that has a material detrimental effect on a retailer’s ability to compete with another retailer that sells the same brand of farm implements.” The governor is expected to sign the bill with an effective date of July 1, 2018.