Brief ⁽¹⁾

SB 588 amends the buy back statutes, as well as other statutes, regarding farm equipment, outdoor power equipment, and lawn and garden equipment repair parts to provide the following:

• Require equipment wholesalers, manufacturers, or distributors to buy back new inventory of a dealer when there is a termination of the sales or security agreement between the parties at the level of 95 percent of the current net price. Under current law, the buy back percentage for farm equipment is 85 percent; for outdoor power equipment and lawn and garden equipment, the buy back percentage is 90 percent.



• If there is a failure or refusal to buy back the inventory, the manufacturer, wholesaler, or distributor will be liable in a civil action for actual costs of the action, including attorney fees, paralegal fees, and expert witness fees as well as 100 percent of the price and costs of the farm equipment and repair parts.



• Additionally, regarding lawn and garden equipment and outdoor power equipment, 5 percent of the price for handling, packing, and loading such parts to return to the supplier must be paid by the supplier unless the handling, packing, loading, and transportation of the parts is done by the supplier.



• Other changes which make the law governing farm equipment, outdoor power equipment, and lawn and garden equipment consistent with each other include the following:

• buy back payments must be made within 60 days after the return of the equipment; and



• the exception to the buy back provisions would apply to inventory purchased 24 months or more prior to the termination of the contract.

Background

An attorney representing Western Retail Implement and Hardware Association spoke in favor of the bill. According to the conferee, the bill brings the statutes regarding dealerships of farm equipment, outdoor power equipment, and lawn and garden equipment into conformity.

The fiscal note indicates no fiscal impact on state operations.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html