§ 13-14-302.5 — Application of new franchise process with respect to certain terminated franchises.

(1) As used in this section:

(1)(a) "Covered franchisee":
(1)(a)(i) means a person who was a franchisee under a pre-bankruptcy franchise; and
(1)(a)(ii) is a "covered dealership," as that term is defined in the federal franchise arbitration law.
(1)(b) "Covered franchisor":
(1)(b)(i) means a person who was a franchisor under a pre-bankruptcy franchise; and
(1)(b)(ii) is a "covered manufacturer," as that term is defined in the federal franchise arbitration law.
(1)(c) "Federal franchise arbitration law" means Section 747 of the Consolidated Appropriations Act of 2010, Pub. L. No. 111-117.
(1)(d) "New franchisor":
(1)(d)(i) means a person who is a franchisor of the same line-make as the franchisor under a pre-bankruptcy franchise that has become a terminated franchise; and
(1)(d)(ii) is a "covered manufacturer," as that term is defined in the federal franchise arbitration law.
(1)(e) "Pre-bankruptcy franchise" means a franchise in effect as of October 3, 2008.
(1)(f) "Reinstated franchise" means:
(1)(f)(i) a terminated franchise that a reinstatement order determines should be reinstated, renewed, continued, assigned, or assumed; or
(1)(f)(ii) a franchise that a reinstatement order otherwise determines should be reestablished in or added to the dealer network of a new franchisor in the geographic area where the covered franchisee was located before October 3, 2008.
(1)(g) "Reinstated franchisee" means a covered franchisee:
(1)(g)(i) whose franchise became a terminated franchise with less than 90 days' notice prior to termination; and
(1)(g)(ii) that becomes entitled to a reinstated franchise under a reinstatement order.
(1)(h) "Reinstatement order" means an arbitrator's written determination:
(1)(h)(i) in an arbitration proceeding held under the federal franchise arbitration law; and
(1)(h)(ii) (1)(h)(ii)(A) that a terminated franchise should be reinstated, renewed, continued, assigned, or assumed; or
(1)(h)(ii)(B) that a covered franchisee should otherwise be reestablished as a franchisee in or added to the dealer network of a new franchisor in the geographic area where the covered franchisee was located before October 3, 2008.
(1)(i) "Terminated franchise" means a covered franchisee's pre-bankruptcy franchise that was terminated or not continued or renewed as a result of a bankruptcy proceeding involving a covered franchisor as the bankruptcy debtor.
(2) The process under Sections 13-14-302, 13-14-304, and 13-14-306 for the issuance of a franchise, including Subsections 13-14-302(5) and (6) and Section 13-14-304 relating to a protest by another franchisee in the line-make in the relevant market area against the establishment or relocation of a franchise, does not apply to a reinstated franchise or reinstated franchisee.

Legislative History

Amended by Chapter 268, 2015 General Session