HOUSE BILL No. 2742

      An Act concerning certain equipment dealerships; relating to manufacturer agreements;
      amending K.S.A. 16-1204, 16-1307, 16-1309, 16-1407 and 16-1409 and repealing the
      existing sections.

Be it enacted by the Legislature of the State of Kansas:

    Section 1. K.S.A. 16-1204 is hereby amended to read as follows:
16-1204. (a) Except as otherwise provided in this section, a farm equip-
ment manufacturer shall provide a farm equipment dealer at least ninety-
days' prior written notice of termination, cancellation or nonrenewal of
the dealership agreement. The notice shall state all reasons constituting
good cause for termination, cancellation or nonrenewal and shall provide
that the dealer has 60 days in which to cure any claimed deficiency. If
the deficiency is rectified within 60 days the notice shall be void. The
notice and right to cure provisions under this section shall not apply if
the reason for termination, cancellation or nonrenewal is for any reason
set forth in subsections (a) through (h) of K.S.A. 16-1203 and amendments
thereto.

    (b) In the event that a farm equipment manufacturer has contractual
authority to approve or deny a request by a farm equipment dealer to sell
or transfer any portion the dealer's business ownership to another party
or to enter into an agreement to operate the dealership with another party,
the manufacturer shall approve or deny such a request within 90 days
after receiving the request. If the manufacturer has neither approved nor
denied the request within 90 days, the request shall be deemed approved.
The farm equipment dealer's request shall include the reasonable financial
information, personal background, character references and work histo-
ries as required by the manufacturer to render such a determination. In
the event the manufacturer denies the request, the manufacturer shall
provide the farm equipment dealer with a written notice of its determi-
nation with the stated reasons for the denial.

    Sec. 2. K.S.A. 16-1307 is hereby amended to read as follows: 16-
1307. (a) Except as otherwise provided in this section, a supplier shall
provide a retailer at least 90 days' prior notice of termination, cancellation,
or nonrenewal of the contract. The notice shall state all reasons consti-
tuting good cause for termination, cancellation or nonrenewal and shall
provide that the dealer has 60 days in which to cure any claimed defi-
ciency. If the deficiency is rectified within 60 days, the notice shall be
void. The notice and right to cure provisions under this section shall not
apply if the reason for termination, cancellation or nonrenewal is for any
reason set forth in subsections (a) through (h) of K.S.A. 16-1306.

    (b) In the event that a ``supplier'' of outdoor power equipment has
contractual authority to approve or deny a request by a ``retailer'' to sell
or transfer any portion of the retailer's business ownership to another
party or to enter into an agreement to operate the dealership with another
party, the supplier shall approve or deny the request within 90 days after
receiving such a request. If the supplier has neither approved nor denied
the request within 90 days, the request shall be deemed approved. The
retailer's request shall include the reasonable financial information, per-
sonal background, character references and work histories as required by
the supplier to render such a determination. In the event the supplier
denies the request, the supplier shall provide the retailer with a written
notice of its determination with the stated reasons for the denial.

    Sec. 3. K.S.A. 16-1309 is hereby amended to read as follows: 16-
1309. The Except for subsection (b) of K.S.A. 16-1307, the provisions of
this act shall apply to all continuing and nonrenewable contracts, and all
other contracts entered into, renewed, amended, assigned or transferred
by a supplier to a transferee on or after July 1, 1991, and shall apply only
to outdoor power equipment and repair parts purchased after the effec-
tive date of this act. The provisions of subsection (b) of K.S.A. 16-1307
shall apply only to those contracts executed after July 1, 1998. Any con-
tract in force and effect on July 1, 1991, or with respect to the provisions
of subsection (b) of K.S.A. 16-1307 and amendments thereto, on July 1,
1998, which by its own terms will terminate on a date certain subsequent
thereto shall be governed by the law as it existed prior to this act unless
renewed, amended, assigned or transferred as described above.

    Sec. 4. K.S.A. 16-1407 is hereby amended to read as follows: 16-
1407. (a) Except as otherwise provided in this section, a supplier shall
provide a retailer at least 90 days' prior notice of termination, cancellation,
or nonrenewal of the contract. The notice shall state all reasons consti-
tuting good cause for termination, cancellation or nonrenewal and shall
provide that the dealer has 60 days in which to cure any claimed defi-
ciency. If the deficiency is rectified within 60 days, the notice shall be
void. The notice and right to cure provisions under this section shall not
apply if the reason for termination, cancellation or nonrenewal is for any
reason set forth in subsections (a) through (h) of K.S.A. 16-1406.

    (b) In the event that a supplier of lawn and garden equipment has
contractual authority to approve or deny a request by a retailer to sell or
transfer any portion of the retailer's business ownership to another party
or to enter into an agreement to operate the dealership with another party,
the supplier shall approve or deny the request within 90 days of receiving
such a request. If the supplier has neither denied nor approved the request
within 90 days, the request shall be deemed approved. The retailer's re-
quest shall include the reasonable financial information, personal back-
ground, character references and work histories as required by the sup-
plier to render such a determination. In the event the supplier denies the
request, the supplier shall provide the retailer with a written notice of its
determination with the stated reasons for the denial.

    Sec. 5. K.S.A. 16-1409 is hereby amended to read as follows: 16-
1409. The Except for the provisions of subsection (b) of K.S.A. 16-1407,
the provisions of this act shall apply to all continuing and nonrenewable
contracts, and all other contracts entered into, renewed, amended, as-
signed or transferred by a supplier to a transferee on or after July 1, 1992,
and shall apply only to lawn and garden equipment and repair parts pur-
chased after the effective date of this act. The provisions of subsection (b)
of K.S.A. 16-1407 shall apply only to those contracts executed after July
1, 1998. Any contract in force and effect on July 1, 1992, or with respect
to subsection (b) of K.S.A. 16-1407, on July 1, 1998, which by its own
terms will terminate on a date certain subsequent thereto shall be gov-
erned by the law as it existed prior to this act unless renewed, amended,
assigned or transferred as described above.

    Sec. 6. K.S.A. 16-1204, 16-1307, 16-1309, 16-1407 and 16-1409 are
hereby repealed.

    Sec. 7. This act shall take effect and be in force from and after its
publication in the statute book.

I hereby certify that the above Bill originated in the House,
and passed that body

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__________________________________

Speaker of the House.

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Chief Clerk of the House.

Passed the Senate __________________________

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President of the Senate

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Secretary of the Senate.

Aproved __________________________________

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Governor.