HB938 Summary

• Authorizes manufacturers and distributors to sell motor vehicle accessories, options, add-ons, features, improvements, or upgrades directly to consumers through remote electronic transmission, provided they pay franchised dealers at least 20% of gross revenue for vehicles sold by those dealers within the preceding five years.

• Expands the Motor Vehicle Industry Licensing Act to apply to "common entities" (entities controlled by or with significant ownership stakes in manufacturers or distributors) and requires written disclosure to dealers of all features and functions that may be remotely activated or modified and associated consumer charges.

• Prohibits manufacturers and distributors from requiring dealers to purchase or lease electric vehicle charging stations unless the dealer has notified the manufacturer of intent to sell the manufacturer's electric vehicles, with reasonable limitations on quantity based on estimated sales volume.

• Clarifies franchise transfer and succession requirements, including streamlined approval processes for qualified purchasers and designated successors upon dealer death, incapacity, or retirement, with limited grounds for manufacturer/distributor refusal.

• Strengthens dealer protections for parts and labor reimbursement by establishing clear procedures for calculating retail markup rates and labor rates, limiting manufacturer challenges, requiring payment within 45 days, and prohibiting chargebacks based solely on administrative technicalities.