Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 314 Third Substitute (2021GS)

Sponsor

Rep. Gibson, F.

Final action

Governor Signed 3/16/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• requires certain provisions in an agreement;
• enacts provisions related to a motorboat dealer's default and curing a default; and
• enacts provisions related to the termination or nonrenewal of an agreement.

Every vote on this bill

Bill text

MOTORBOAT AGREEMENTS ACT
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Francis D. Gibson
Senate Sponsor: 
Don L. Ipson
LONG TITLE
General Description:
This bill enacts the Motorboat Agreements Act.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ requires certain provisions in an agreement;
▸ enacts provisions related to a motorboat dealer's default and curing a default; and
▸ enacts provisions related to the termination or nonrenewal of an agreement.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
13-58-101
, Utah Code Annotated 1953
13-58-102
, Utah Code Annotated 1953
13-58-201
, Utah Code Annotated 1953
13-58-301
, Utah Code Annotated 1953
13-58-302
, Utah Code Annotated 1953
13-58-401
, Utah Code Annotated 1953
13-58-402
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
13-58-101
 is enacted to read:
CHAPTER 58. MOTORBOAT AGREEMENTS ACT
Part 1. General Provisions
 13-58-101.
Title.
This chapter is known as the "Motorboat Agreements Act."
Section 2. Section 
13-58-102
 is enacted to read:
 13-58-102.
 Definitions.
As used in this chapter:
(1) "Agreement" means an agreement between:
(a) a motorboat dealer; and
(b) (i) a manufacturer; or
(ii) a distributor.
(2) "Distributor" means a person who:
(a) has an agreement with a manufacturer of motorboats to distribute motorboats
within this state; and
(b) in whole or in part sells or distributes motorboats to motorboat dealers.
(3) "Manufacturer" means a person engaged in the business of constructing,
manufacturing, assembling, producing, or importing new motorboats for the purpose of sale or
trade.
(4) "Motorboat" means the same as that term is defined in Section 
73-18-2
.
(5) "Motorboat dealer" means a person who:
(a) is engaged in the business of buying, selling, offering for sale, or exchanging new
motorboats either outright or on conditional sale, bailment, lease, chattel mortgage, or
otherwise; and
(b) has established in this state a place of business for the sale, lease, trade, or display
of new motorboats.
Section 3. Section 
13-58-201
 is enacted to read:
Part 2. Agreements
 13-58-201.
Agreement requirement -- Terms of agreements.
(1) A person may not act as a motorboat dealer in this state without entering into an
agreement.
(2) An agreement shall include:
(a) each working capital standard, inventory standard, facility standard, equipment
standard, and tool standard, if any, including each agreed upon minimum product stocking
requirement;
(b) provisions for termination or nonrenewal of the agreement;
(c) the designation of a successor motorboat dealer in the event of the motorboat
dealer's death or disability;
(d) the obligations of the manufacturer, distributor, and motorboat dealer in the
preparation and delivery of, and warranty service on, new motorboats and new motorboat
motors;
(e) the obligations of the manufacturer, distributor, and new motorboat dealer upon
termination of the agreement, including obligations in relation to:
(i) inventory of new motorboats;
(ii) inventory of new motorboat motors;
(iii) inventory of parts;
(iv) equipment;
(v) furnishings;
(vi) special tools; and
(vii) required signs;
(f) each standard for maintenance of:
(i) a dedicated or self-funded line of credit, if any; and
(ii) a trade-in line of credit or self-funded trade-in line of credit, if any; and
(g) dispute resolution procedures.
Section 4. Section 
13-58-301
 is enacted to read:
Part 3. Default
 13-58-301.
Motorboat dealer default.
A motorboat dealer defaults on an agreement if the motorboat dealer:
(1) materially fails to:
(a) meet minimum product stocking requirements as specified under the agreement;
(b) make timely payment of a material obligation as specified under the agreement; or
(c) meet an applicable standard, as specified by the agreement, for:
(i) a dedicated or self-funded line of credit; or
(ii) a trade-in or self-funded trade-in line of credit; or
(2) markets the manufacturer's motorboats outside of the motorboat dealer's territory in
violation of the agreement.
Section 5. Section 
13-58-302
 is enacted to read:
 13-58-302.
Cure of default.
(1) If a motorboat dealer defaults as described in Section 
13-58-301
, the manufacturer
or distributor who is part of the agreement shall:
(a) give the dealer written notice of the dealer's default; and
(b) allow the dealer to cure the default within the period described in Subsection (2).
(2) A motorboat dealer may cure a default no later than:
(a) 30 days after the day on which the dealer receives the notice described in
Subsection (1), if the dealer defaulted as described in Subsection 
13-58-301
(1)(b) or (2);
(b) 60 days after the day on which the dealer receives the notice described in
Subsection (1), if the dealer defaulted as described in Subsection 
13-58-301
(1)(a), (d), or (e);
and
(c) 160 days after the day on which the dealer receives the notice described in
Subsection (1), if the dealer defaulted as described in Subsection 
13-58-301
(1)(c).
Section 6. Section 
13-58-401
 is enacted to read:
Part 4. Termination or Nonrenewal of Agreements
 13-58-401.
Termination or nonrenewal of agreement -- Notice -- Repurchase
obligations.
(1) Except as provided in Section 
13-58-402
, a manufacturer or distributor may not
terminate or fail to renew an agreement with a motorboat dealer unless:
(a) the motorboat dealer defaults as described in Section 
13-58-301
;
(b) the manufacturer or distributor gives the motorboat dealer written notice as
described in Section 
13-58-302
 that clearly and concisely states:
(i) the default; and
(ii) that if the dealer fails to cure the default, the manufacturer or distributor may
terminate the agreement;
(c) the manufacturer or distributor provides the motorboat dealer the applicable period
to cure the default as described in Subsection 
13-58-302
(2); and
(d) the motorboat dealer fails to cure the default during the applicable period described
in Subsection 
13-58-302
(2).
(2) If an agreement is terminated or not renewed in violation of this section, the
manufacturer shall pay to the motorboat dealer:
(a) an amount that equals:
(i) the dealer's cost of each new, undamaged, unsold, and unregistered motorboat,
motorboat motor, and trailer in the dealer's inventory that the dealer:
(A) acquired from the manufacturer or from another dealer; and
(B) invoiced during the 24-month period immediately before the day on which the
agreement terminates or is not renewed; minus
(ii) each applicable dealer rebate and discount;
(b) for each charge the manufacturer made for distribution, delivery, or taxes;
(c) an amount that equals the dealer's cost for accessories added on a motorboat or
trailer;
(d) an amount that equals:
(i) the cost of all new, undamaged, and unsold supplies, parts, and accessories, as
advertised in the manufacturer's catalog or website on the day on which the agreement
terminates or is not renewed; minus
(ii) all allowance the manufacturer paid or credited to the dealer;
(e) an amount that equals the greater of the fair market value for or the dealer's
depreciated acquisition cost of a sign, if:
(i) the manufacturer required or recommended the dealer to acquire the sign;
(ii) the sign bears the manufacturer's name, trade name, or trademark;
(iii) the sign is undamaged; and
(iv) the dealer owns the sign;
(f) an amount that equals the greater of the fair market value for or the dealer's
depreciated acquisition cost of all special tools, equipment, and furnishings:
(i) acquired from the manufacturer or a source the manufacturer approved;
(ii) that the manufacturer required the dealer to acquire; and
(iii) that are in good and usable condition; and
(g) the cost of transporting, handling, packing, and loading all motorboats, motorboat
motors, trailers, supplies, parts, accessories, signs, special tools, equipment, and furnishings.
(3) A manufacturer shall pay a motorboat dealer the amounts described in Subsection
(2) within 90 days after the day on which the tender of the property to the manufacturer occurs,
if the dealer has:
(a) clear title to the property; or
(b) the manufacturer's statement of origin.
(4) If an item described in Subsection (2) is subject to a security interest, the
manufacturer may make payment jointly to:
(a) the motorboat dealer; and
(b) the holder of the security interest.
Section 7. Section 
13-58-402
 is enacted to read:
 13-58-402.
Termination without time to cure.
A manufacturer or distributor may terminate an agreement with a motorboat dealer
upon written notice and without a cure period described in Section 
13-58-302
, if:
(1) the motorboat dealer:
(a) financially defaults to the manufacturer, the distributor, or a financing source;
(b) becomes subject to an order for relief, as defined in 11 U.S.C. Sec. 102;
(c) files a voluntary petition in bankruptcy;
(d) has had an involuntary petition in bankruptcy filed against the motorboat dealer;
(e) engages in an act of material fraud in relation to the performance of a right or
obligation under the agreement;
(f) is a corporation that ceases to exist;
(g) becomes insolvent;
(h) takes or fails to take an action that constitutes an admission of inability to pay debts
as the debts mature;
(i) makes a general assignment for the benefit of creditors to an agent authorized to
liquidate any substantial amount of assets;
(j) applies to a court for the appointment of a receiver for any assets or properties;
(k) fails to substantially comply with a federal, state, or local law, rule, regulation,
ordinance, or order applicable to the agreement;
(l) receives three valid notices of a default under Section 
13-58-302
 for the same
default within a 12-month period, regardless of whether the dealer cures the default;
(m) transfers an interest in the dealership without the manufacturer's written consent;
(n) has pleaded guilty to or has been convicted of a felony, or of any misdemeanor
relating to the relationship between the motorboat dealer and manufacturer;
(o) or one of the owners of the motorboat dealer is convicted or enters a plea of nolo
contendere to a felony; or
(p) makes a material misrepresentation;
(2) there is a closeout or sale of a substantial part of the dealer's assets related to the
motorboat dealership;
(3) there is a commencement or dissolution or liquidation of the motorboat dealership;
(4) there is a change without the prior written approval of the manufacturer in the
location of the motorboat dealer's principal place of business under the dealership agreement;
or
(5) the motorboat dealer's license is suspended, revoked, or is not renewed.