HB 390 Summary

• Establishes the Franchise Business Protection Act, which defines that franchisees, their employees, and independent contractors working for franchisees may not be deemed employees of the franchisor.

• Incorporates the federal definitions of "franchisee" and "franchisor" from 16 C.F.R. § 436.1 for purposes of this act.

• Provides an exception allowing voluntary agreements between the United States Department of Labor and a franchisor to override these protections.

• Limits the act's application to enforcement or enactment of rules and ordinances by state and local agencies and to labor relations and collective bargaining, only to the extent it does not conflict with federal law.

• Becomes effective on the first day of the third month following passage and approval by the Governor, or upon becoming law.