Cal. Code Regs. Tit. 13, § 565 - Request for Extension of Time; Temporary Ownership or Operation of a Dealership by a Manufacturer, Branch, or Distributor
(a) After a showing of good cause by a
manufacturer, branch, or distributor that it needs additional time to own and
operate a dealership within the relevant market area of an independent dealer
of the same line-make in preparation for sale to a successor independent
franchisee, the board may extend the time period beyond one year.
(b) When a manufacturer, branch, or
distributor seeks to request an extension of time, it shall first give notice
in writing of that intention to the board and to each franchisee operating a
dealership of the same line-make within the relevant market area.
(c) The written notice shall contain, on the
first page thereof in at least 12-point bold type and circumscribed by a line
to segregate it from the rest of the text, the following statement:
"NOTICE TO DEALER: If you oppose this request, you may send a letter to the NEW MOTOR VEHICLE BOARD in Sacramento and have your opposition considered by the board. You must file your opposition with the board within 20 days of your receipt of this notice."
(d) When a request for extension of time has
been received, the board shall notify each franchisee of the same line-make
within the relevant market area, as provided by the manufacturer pursuant to
subsection (g)(1) below, that a timely request has been received, that the
franchisee has the opportunity to send a letter to the board opposing the
request and have that opposition considered by the board at its next scheduled
meeting, and that the status quo will be maintained until the board acts upon
the request for extension.
(e) In
determining whether good cause has been shown for granting the request for an
extension of time, the board shall take into consideration the existing
circumstances, including, but not limited to, all of the following:
(1) The written request of the manufacturer,
branch, or distributor;
(2) Written
responses in opposition to the request received from any franchisee operating a
dealership of the same line-make within the relevant market area;
and,
(3) Comments of other
interested parties.
(f)
Upon the filing of a timely request for an extension of time, a copy of the
request for extension shall be transmitted by the executive director of the
board to each member of the board for consideration.
(g) The written request for an extension of
time shall be accompanied by all of the following:
(1) A list of all franchisees operating a
dealership of the same line-make within the relevant market area.
(2) A statement of facts detailing the
specific need for the extension of time.
(3) The requested expiration date of the
extension.
(4) A chronology of the
actions both taken and planned by the manufacturer, branch, or distributor to
prepare for the sale of the franchise to a successor independent
franchisee.
(5) A statement to the
effect that the information required in subsections (g)(2)-(4) above has been
provided to each franchisee operating a dealership of the same line-make within
the relevant market area.
(6) A
statement that the requesting party does or does not agree that the dealer
members of the board may participate in the consideration of the
request.
(h) The
executive director shall grant the extension unless, within 30 days from
receipt of the request for extension, any member of the board notifies the
executive director of an objection or the board receives a written response in
opposition to the request from any franchisee operating a dealership of the
same line-make in the relevant market area.
(i) If any member of the board gives notice
of objection within 30 days of receipt of a copy of the request for extension,
or if the board receives a timely written opposition to the request from any
franchisee operating a dealership of the same line-make within the relevant
market area, this matter shall be considered by the board at its next scheduled
meeting.
(j) Upon receipt by the
executive director of a notice of objection and/or a written opposition from
any franchisee operating a dealership of the same line-make within the relevant
market area, the executive director shall notify the manufacturer, branch, or
distributor that there has been an objection and/or opposition, that the matter
will be considered by the board at its next scheduled meeting, and that the
status quo will be maintained until the board acts upon the request for
extension. The manufacturer, branch, or distributor, and opposing
franchisee(s), if any, operating a dealership of the same line-make within the
relevant market area shall be given a minimum of 10 days' prior notice of the
time, date, and location of the board meeting at which the request for
extension will be considered.
(k)
Notwithstanding subsections (h), (i) and (j) above, a member of the board who
is a new motor vehicle dealer may not participate in, hear, comment, advise
other members upon, or decide any matter involving a request subject to this
subsection, unless the requesting party to the proceeding has had full
disclosure and agrees to such participation by the dealer board
member.
(l) On or before 60 days
prior to the expiration of the one year period, the manufacturer, branch, or
distributor may request an extension of time for good cause shown which shall
be in writing. Requests received with less than 60 days' prior notice will not
be considered by the board and shall be deemed denied.
(m) Within 20 days of receiving the notice,
any franchisee required to be given notice may file an opposition to the
request for an extension of time.
Notes
2. Change without regulatory effect amending subsections (h) and (j)-(l) filed 6-3-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 23).
3. Change without regulatory effect amending subsections (f), (h) and (j) filed 12-31-2003 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 1).
Note: Authority cited: Section 3050(a), Vehicle Code. Reference: Sections 3050 and 11713.3, Vehicle Code.
2. Change without regulatory effect amending subsections (h) and (j)-(l) filed 6-3-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 23).
3. Change without regulatory effect amending subsections (f), (h) and (j) filed 12-31-2003 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 1).
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