SB 271 Summary

• Clarifies definitions of motor vehicles, new motor vehicles, and dealers to reflect technological advances and industry changes, including limited licensing for direct-selling electric vehicle manufacturers licensed before August 1, 2023.

• Requires manufacturers to fairly compensate dealers for warranty repairs, maintenance programs, and recalls within 30 days, with compensation not less than rates charged to non-warranty customers, and limits audits to 180 days (except for fraud cases).

• Specifies manufacturers must repurchase new vehicles, parts, and special tools upon franchise termination within 90 days of dealer request and must cover return shipping costs.

• Allows dealers to return electric vehicle tools and equipment within 24 months for reimbursement if sales volume is inadequate to achieve reasonable return on investment.

• Permits manufacturers to sell vehicle features and subscriptions directly to consumers via remote transmission only if dealers have equal opportunity to sell the same products, and manufacturers must pay dealers at least 20% of gross revenue from sales to that dealer's customers within 5 years of the original vehicle sale.