HB 1375 Summary

• Expands the definition of "franchise agreement" to include ancillary agreements relating to dealer facilities, staffing, operations, and manufacturer programs or requirements.

• Requires manufacturers, factory branches, distributors, and importers to provide annual affidavits confirming their franchise agreements comply with state law, with non-compliant terms having no legal effect.

• Prohibits manufacturers from requiring existing dealers to enter into site control agreements or exclusive use agreements that restrict facility transfers, leases, or use changes.

• Allows dealers to immediately request fair market value compensation upon public announcement of line-make discontinuation, calculated as the greater of the announcement date value or value from 12 months prior.

• Grants motor vehicle dealer associations (with 100+ members) authority to seek injunctive relief and administrative hearings when manufacturer actions adversely affect multiple members.