‘Resolve, To Establish the Commission To Study Business Format Franchising’

‘Sec. 1. Commission To Study Business Format Franchising established. Resolved: That the Commission To Study Business Format Franchising, referred to in this resolve as "the commission," is established; and be it further

Sec. 2. Commission membership. Resolved: That the commission consists of 7 members as follows:

1. Two members of the Senate appointed by the President of the Senate, including a member from each of the 2 parties holding the largest number of seats in the Legislature;

2. Two members of the House of Representatives appointed by the Speaker of the House, including a member from each of the 2 parties holding the largest number of seats in the Legislature;

3. Two members appointed by the Governor who possess expertise in the subject matter of the study, as follows:

The Governor shall consider any recommendations submitted within 20 days of the effective date of this section; and

4. The Commissioner of Economic and Community Development or the commissioner's designee; and be it further

Sec. 3. Chairs. Resolved: That the first-named Senate member is the Senate chair and the first-named House of Representatives member is the House chair of the commission; and be it further

Sec. 4. Appointments; convening of commission. Resolved: That all appointments must be made no later than 30 days following the effective date of this resolve. The appointing authorities shall notify the Executive Director of the Legislative Council once all appointments have been completed. After appointment of all members, the chairs shall call and convene the first meeting of the commission. If 30 days or more after the effective date of this resolve a majority of but not all appointments have been made, the chairs may request authority and the Legislative Council may grant authority for the commission to meet and conduct its business; and be it further

Sec. 5. Duties. Resolved: That the commission shall study the following issues:

1. The frequency of transfers of franchises in this State from a franchisee to a member of the franchisee's family, including but not limited to cases in which the franchisee dies or becomes incapacitated;

2. Legal issues raised with state franchise laws that require contract disputes to be subject to the jurisdiction of state courts;

3. The cancellation, termination and renewal terms of franchise agreements;

4. The impact of the imposition of the obligation to act in good faith on parties to a franchise agreement; and

5. The impact of the imposition of the requirement of reasonableness on terms and provisions of a franchise agreement.

In studying each of these issues, the commission shall discuss, among other things: whether the absence of business format franchise regulation in this State has resulted in unfair or unforeseen treatment of franchisors or franchisees; whether federal regulations and contractual agreements are effective or sufficient to address issues raised by franchisees; how other states regulate business format franchises; and any potential legal challenges that could be raised as a result of state regulation of business format franchises; and be it further

Sec. 6. Staff assistance. Resolved: That the Legislative Council shall provide necessary staffing services to the commission; and be it further

Sec. 7. Report. Resolved: That, no later than November 5, 2014, the commission shall submit a report that includes its findings and recommendations, including suggested legislation, for presentation to the joint standing committee of the Legislature having jurisdiction over labor, commerce, research and economic development matters.’