SB17-298 Summary

• Prohibits manufacturers from requiring facility alterations within 10 years at costs exceeding $250,000 (or $25,000 for motorcycle dealers) unless for health/safety compliance or technology upgrades including electric vehicle charging equipment.

• Makes it unlawful for manufacturers to sell vehicles to franchised dealers at lower prices than competitors with identical equipment, with exceptions for government resale, driver education donations, and ordinary course price changes available to all dealers.

• Prohibits manufacturers from requiring dealers to grant rights of first refusal or purchase options that would block family ownership transfers between immediate family members.

• Establishes requirements for manufacturers issuing stop-sale directives on used vehicles, requiring reimbursement of 1.5% monthly of average trade-in value for vehicles held in inventory 30+ days without remedy procedures or available parts.

• Creates new procedures for dealer relocation, reopening, and addition approvals, requiring 60-day notice to existing dealers and allowing existing dealers to challenge proposals within 90 days based on adverse market impact; manufacturers must prove existing dealers are not providing adequate representation.