State of New Mexico
                      House of Representatives
  
                      FORTY-THIRD LEGISLATURE
                        FIRST SESSION, 1997
  
  
                                                 February 5, 1997
  
  
  Mr. Speaker:
  
       Your JUDICIARY COMMITTEE, to whom has been referred
  
                  HOUSE BILL 47, as amended
                               
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.  On page 2, between lines 13 and 14, insert the following
  new subsection:
  
            "D.  "prospective purchaser" means a person who has a
  bona fide written agreement to purchase a franchise;".
  
       2.  Reletter the succeeding subsections accordingly.
  
       3.  On page 8, line 3, after the period strike the remainder
  of the line, strike all of lines 4 through 6, strike line 7 through
  the period and insert in lieu thereof:
  
  "Due cause shall require a material breach by a dealer, due to
  matters within the dealer's control, of a lawful provision of a
  franchise or selling agreement.  As used in this subsection,
  "material breach" means a contract violation that is substantial and
  significant.  In determining whether due cause exists under this
  subsection, the court shall take into consideration only the
  dealer's sales in relation to the business available to the dealer;
  the dealer's investment and obligations; injury to the public
  welfare; the adequacy of the dealer's sales and service facilities,
  equipment and parts; the qualifications of the management, sales and
  service personnel to provide the consumer with reasonably good
  service and care of new motor vehicles; the dealer's failure to
  comply with the requirements of the franchise; and the harm to the
  manufacturer or distributor.".
  
       4.  On page 12, line 6, after "that" strike the remainder of
  the line, strike lines 7 through 14 and insert in lieu thereof:
  "the manufacturer, distributor or representative shall not withhold
  consent to the sale, transfer or assignment of the franchise to a
  qualified buyer capable of being licensed in New Mexico and who
  meets the manufacturer's or distributor's uniformly applied
  requirement for  appointment as a dealer.  Uniform application shall
  not prevent the application of a separate standard of consent for
  sale, transfer or assignment to minority or women dealer candidates,
  nor require the application of an identical standard to all persons
  in all situations.  The requirement of uniform application shall be
  met if the manufacturer applies the same set of standards, which
  takes into account business performance and experience, financial
  qualifications, facility requirements and other relevant
  characteristics; provided that, if two dealers, persons or
  situations are identical, given the characteristics considered in
  the standards, the two dealers, persons or situations shall be
  treated identically, except as provided in this subsection.  Upon
  request, a manufacturer or distributor shall provide its dealer with
  a copy of the standards that are normally relied upon by the
  manufacturer or distributor to evaluate a proposed sale, transfer or
  assignment;".
  
       5.  On page 14, line 22, strike "any purpose, including".
  
       6.  On page 14, line 24, after "may" strike the remainder of
  the line and line 25 and on page 15, strike line 1 and insert in
  lieu thereof:
  
  "require:
                 (1)  that the dealership meet the manufacturer's
  capitalization requirements;
  
                 (2)  that the dealership meet the manufacturer's
  facilities requirements; and
  
                 (3)  that the dealer not have committed fraudulent
  acts;"
  
       7.  On page 15, line 19, after "obligations" insert "; or".
  
       8.  On page 15, strike lines 20 through 22 in their entirety.  
       
       9.  On page 16, line 16 strike "Any person" and insert in lieu
  thereof "A prospective purchaser".
  
  
                                Respectfully submitted,
  
  
  
                                                                                               
                                                              Thomas P. Foy, Chairman
  
  
  Adopted                       Not Adopted                       
            (Chief Clerk)                       (Chief Clerk)
  
                         Date             
  
  The roll call vote was 13  For 0  Against
  Yes:      13
            Excused:  None
            Absent:   None
  
  
                                                    .115677.1
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