HB 1340 Summary

• Establishes the Motor Vehicle Review Board (13 voting members appointed by the governor) to assist the Secretary of State in administering motor vehicle dealer, manufacturer, and distributor regulations and adjudicating unfair practices claims.

• Board proceedings are subject to the Administrative Orders and Procedures Act; consumers may file complaints for $75 and dealers/manufacturers/distributors may file protests for $3,000; hearings must occur within 90 days unless parties agree otherwise.

• Board may impose civil penalties up to $1,000 per day and per violation for violations of unfair practice statutes; all fees and penalties deposited into the Motor Vehicle Review Board Administrative Fund to cover board operations.

• Expands unfair practice protections for dealers including: restrictions on manufacturer/distributor retaliation for customer resales, requirements for 90-day termination notice with good cause, mandatory buyback of dealer inventory at specified prices upon franchise termination, and limits on facility improvement requirements.

• Effective July 1, 2012; transfers certain motor vehicle dealer dispute resolution from circuit courts to the new board; allows appeals of board decisions to the Court of Appeals within 30 days.