HB444 Summary

• Prohibits manufacturers, distributors, and dealers of powersports vehicles from selling without first entering into a written dealer agreement signed by both parties, effective June 1, 2015.

• Establishes unfair and deceptive trade practices including coercion to accept unwanted inventory, arbitrary allocation/distribution of vehicles, discriminatory pricing, preventing ownership transfers, and unreasonable performance standards.

• Requires manufacturers to provide 90 days' notice before terminating or failing to renew dealer agreements (30 days in bankruptcy or felony conviction cases) and mandates good faith action with good cause based on material violations.

• Requires manufacturers to repurchase inventory, parts, and tools at fair market value upon termination; dealers voluntarily terminating are not entitled to compensation.

• Requires warrantors to compensate dealers for warranty work, provide reasonable time allowances, conduct audits only on reasonable basis, and approve warranty claims within 30 days if not specifically disapproved in writing; exempts the Motor Vehicle Franchise Act from applying to powersports vehicle dealer agreements.