HB 318 - Motor Vehicle Dealer Franchises

• Manufacturers must provide 90 days' notice before terminating franchise agreements, except in cases of insolvency, criminal conviction, or license suspension/revocation (which require 15 days' notice) or product line discontinuation nationwide (180 days).

• Establishes "good cause" standards for termination, including reasonable and material breach of franchise agreement with opportunity to cure within 180 days, or systematic fraud; exempts certain issues like performance metrics from termination grounds unless specific procedures are followed.

• Requires manufacturers to buy back unsold inventory, parts, accessories, equipment, and signage upon termination, and compensate dealers for facility costs and business value when discontinuing product lines nationally.

• Dealers gain right to designate successors for ownership, terminate their own franchises with 90 days' notice, and approve franchise transfers if buyers meet reasonable, uniformly applied standards; manufacturers cannot withhold consent unreasonably.

• Establishes detailed warranty work compensation requirements based on dealer's retail rates for parts and labor, with limits on claim denials, audits, and chargebacks; manufacturers cannot require facility improvements exceeding $5,000 as a condition of franchise renewal.