$5,000 fine or six months imprisonment.

If passed, the legislation would kill ex-Premier Sir John Swan's dreams of a McDonald's restaurant in Bermuda.

Government backbencher Ann Cartwright DeCouto tabled the Prohibited Restaurant Act 1996 when the House of Assembly reconvened yesterday.

The legislation would curb the operation in Bermuda of restaurants associated with overseas ones. Any such restaurants operating before May 10, 1996, however, would be allowed.

The bill defines a "prohibited restaurant'' as one "operated in any manner, whether through distinctive name, design, uniforms, packaging, decoration, or otherwise, which reasonably suggests a relationship with any restaurant or group of restaurants operating outside Bermuda''.

It adds: "It is felt that, regardless of questions such as whether a Bermuda restaurant is a franchise or whether the overseas entity is carrying on business in Bermuda, such restaurants detract from Bermuda's unique character.

"However, provision has been made to allow any restaurants operating prior to May 10, 1996 to continue to operate in substantially the same manner.'' Penalties set out by the legislation are a $5,000 fine, six months imprisonment -- or both.

The approval of a McDonald's earlier this year sparked a backbench revolt in the United Bermuda Party. UBP MPs Trevor Moniz, C.V. (Jim) Woolridge, Clarence Terceira and David Dyer voted with the Progressive Labour Party to back Mrs.

Cartwright DeCouto's bill.

The Act was later stalled in the Senate -- but Mrs. Cartwright DeCouto vowed she would reintroduce it in the House of Assembly. The Senate can only block a bill for 12 months.

Yesterday she came good on her promise.

The UBP rebels also voted earlier this year with the PLP in a motion of censure against Premier David Saul for his role in the burger war.

It was the first time a Premier had been censured by the House of Assembly.

A report by a special committee set up to examine Bermuda's policy on franchises will be presented to Parliament this month.

The committee -- headed by Tourism Minister David Dodwell -- was formed after Government triggered a storm by giving permission to a firm controlled by Sir John Swan to operate a McDonald's in Bermuda.

The move flew in the face of previous Government policy on franchises.

McDonald's bill tabled It also contradicted a Bermuda Monetary Authority circular issued only months before Sir John's Grape Bay Ltd got the go-ahead.

Yesterday, Mrs. Cartwright DeCouto was said to have flown off the Island after the House of Assembly sitting and could not be reached for comment.

Yesterday Dr. Saul said he had asked Mrs. Cartwright DeCouto to delay the second reading of her bill until Mr. Dodwell had produced his report, and it had been discussed by Cabinet and UBP Caucus and presented to the House.

"Since there is no great rush for this I do hope we can have the second reading after a full debate of the Dodwell report.'' Dr. Saul pointed out there had been no objection to the bill's first reading.

"In the spirit of goodwill and common sense, what the Country is now expecting is for a period of time to elapse to allow a full discussion of the Dodwell report. I think that will probably happen.'' Dr. Saul understood Sir John's planned McDonald's restaurant had been placed on hold until the franchise issue had been resolved.