Bill > SB194

This bill amends the Franchise Termination Act to provide more protections for dealers in franchising relationships by establishing clear guidelines for franchise termination and transfer. The bill expands definitions to include additional types of equipment dealers and introduces a comprehensive "good cause" standard for franchise termination, which requires suppliers to have legitimate, non-discriminatory reasons for ending a franchise agreement. Key provisions include requiring suppliers to provide at least 180 days' written notice before terminating a franchise, giving dealers 60 days to cure any claimed deficiencies, and mandating that suppliers approve or deny transfer requests within 60 days. The bill also provides special provisions for dealer succession in case of death, prohibits suppliers from requiring dealers to waive their rights under the Act, prevents franchises from choosing laws from other states, and allows dealers to pursue multiple legal remedies if a supplier violates the Act. Additionally, the bill permits dealers to sue for damages, including lost profits and attorney fees, if a supplier unlawfully terminates their franchise. The new provisions apply to existing continuing franchises and all franchises entered into or renewed after the Act's effective date, offering enhanced protections for equipment dealers across various sectors including farm tractors, industrial tractors, construction equipment, and outdoor power equipment.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=194&year=25