SB157 Summary

• Amends Section 8-20-4 of the Code of Alabama 1975 to prohibit manufacturers, wholesalers, and distributors from coercing new motor vehicle dealers to change location or make substantial alterations to dealership premises when doing so would be unreasonable.

• Defines "unreasonable" to include requiring construction or substantial alteration if the same item or design component was constructed or altered within the prior 10 years and was previously required and approved by the manufacturer, and defines "substantial alteration" as one with major architectural impact.

• Prohibits requiring use of a manufacturer-selected vendor if the dealer can select an alternative vendor with the same design, quality, and kind, while protecting manufacturer intellectual property and trademark rights.

• Exempts from the restriction any construction necessary for health/safety compliance, technology requirements to sell or service vehicles, routine facility maintenance, and existing facility improvement programs in effect as of the bill's effective date.

• Became effective immediately upon passage and approval by the Governor on February 8, 2018, passing the Senate 24-0 with 1 abstention.