HB 1049 Summary

• Adds definitions for "former franchisee," "site control agreement," and "successor manufacturer" to Indiana Code motor vehicle provisions, effective July 1, 2010.

• Prohibits manufacturers from conditioning franchise awards, additions, renewals, relocations, or ownership transfers on dealer acceptance of site control or exclusive use agreements unless separate reasonable consideration is offered.

• Requires successor manufacturers to offer same line make franchises or relocations within a former franchisee's market area to that former franchisee at no cost and without restrictions, except where consolidation occurred, fair market value was paid, or good cause for termination existed.

• Establishes a three-year protection period for former franchisees beginning from July 1, 2010, or the date a successor manufacturer acquires the business, whichever is latest.

• Allows interim written guidelines to determine "good cause" for franchise termination until formal rules are adopted by December 31, 2011.