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AZ HB2059
Bill
Status
1/30/2014
Primary Sponsor
John Kavanagh
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AI Summary
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Amends Arizona Revised Statutes section 28-4460 to allow vehicle manufacturers to directly sell, lease, or provide vehicles, products, services, or financing to retail consumers without dealer involvement if no dealer is located within 60 miles of the consumer.
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Prohibits manufacturers from competing with or unfairly discriminating against their dealers by directly selling to consumers if a dealer is located within 60 miles of that consumer or potential lead.
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Maintains existing prohibitions on manufacturers owning dealerships, except for temporary ownership during dealer transitions, minority ownership interests under specified conditions (not exceeding 45% ownership), or bona fide relationships with qualified persons acquiring full ownership within 10 years.
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Preserves manufacturers' rights to provide financing, offer extended service contracts, approve credit applications through dealers, and manage lease buyback options without violating franchise laws.
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Requires manufacturers to provide or direct sales leads to dealers in a fair, nondiscriminatory manner based on preexisting relationships, proximity, assigned territory, or consumer preference.
Legislative Description
Vehicle manufacturers; customer direct sales
Last Action
Referred to House TRANS Committee
2/3/2014