13-14-302.5 - Application of new franchise process with respect to certain terminated franchises.
13-14-302.5. Application of new franchise process with respect to certainterminated franchises.
(1) As used in this section:
(a) "Covered franchisee":
(i) means a person who was a franchisee under a pre-bankruptcy franchise; and
(ii) is a "covered dealership," as that term is defined in the federal franchise arbitrationlaw.
(b) "Covered franchisor":
(i) means a person who was a franchisor under a pre-bankruptcy franchise; and
(ii) is a "covered manufacturer," as that term is defined in the federal franchise arbitrationlaw.
(c) "Federal franchise arbitration law" means Section 747 of the ConsolidatedAppropriations Act of 2010, Pub. L. No. 111-117.
(d) "New franchisor":
(i) means a person who is a franchisor of the same line-make as the franchisor under apre-bankruptcy franchise that has become a terminated franchise; and
(ii) is a "covered manufacturer," as that term is defined in the federal franchise arbitrationlaw.
(e) "Pre-bankruptcy franchise" means a franchise in effect as of October 3, 2008.
(f) "Reinstated franchise" means:
(i) a terminated franchise that a reinstatement order determines should be reinstated,renewed, continued, assigned, or assumed; or
(ii) a franchise that a reinstatement order otherwise determines should be reestablished inor added to the dealer network of a new franchisor in the geographic area where the coveredfranchisee was located before October 3, 2008.
(g) "Reinstated franchisee" means a covered franchisee:
(i) whose franchise became a terminated franchise with less than 90 days' notice prior totermination; and
(ii) that becomes entitled to a reinstated franchise under a reinstatement order.
(h) "Reinstatement order" means an arbitrator's written determination:
(i) in an arbitration proceeding held under the federal franchise arbitration law; and
(ii) (A) that a terminated franchise should be reinstated, renewed, continued, assigned, orassumed; or
(B) that a covered franchisee should otherwise be reestablished as a franchisee in oradded to the dealer network of a new franchisor in the geographic area where the coveredfranchisee was located before October 3, 2008.
(i) "Terminated franchise" means a covered franchisee's pre-bankruptcy franchise thatwas terminated or not continued or renewed as a result of a bankruptcy proceeding involving acovered franchisor as the bankruptcy debtor.
(2) The process under Sections 13-14-302, 13-14-304, and 13-14-306 for the issuance ofa franchise, including Subsections 13-14-302(4) and (5) and Section 13-14-304 relating to aprotest by another franchisee in the line-make in the relevant market area against theestablishment or relocation of a franchise, does not apply to a reinstated franchise or reinstatedfranchisee.
Enacted by Chapter 41, 2010 General Session