HF2902 Summary

• Establishes compensation requirements for manufacturers when terminating motor vehicle dealer franchises, including reimbursement for inventory at 100% net cost, equipment, tools, supplies, and facility rental value for one year or until facilities are leased/sold.

• Prohibits manufacturers, distributors, and factory branches from requiring dealers to order unwanted vehicles or commodities, participate in advertising campaigns at dealer expense, or condition franchise approval on entering site control agreements that restrict dealer facility use.

• Requires manufacturers to provide written notice with specific grounds within 60 days when denying dealer requests for management changes, additional line makes, or franchise transfers; denial deemed approved if notice not provided.

• Mandates manufacturers offer successor manufacturer franchises to existing dealers within ten-mile radius of relocated franchise on substantially similar terms, and prohibits relocation within four years without first offering to former franchisee unless exceptions apply.

• Makes amendments to motor vehicle dealer regulations effective the day after final enactment, addressing unlawful manufacturer acts, unfair practices, performance standards, area of sales effectiveness, and waivers/modifications of dealer protections.