S.F. No. 2663 Summary

• Establishes definitions and protections for motor vehicle dealers, including defining "area of sales effectiveness" as the geographic area where dealers must effectively sell and service vehicles.

• Prohibits manufacturers, distributors, and factory branches from coercing dealers to purchase unwanted inventory, finance vehicles with unrequested features, participate in advertising costs, or threaten franchise termination to force unfavorable agreements.

• Restricts manufacturers from denying dealers the right to add competing vehicle lines, change management control, or relocate facilities without proper notice and cause, with a 60-day approval requirement or deemed consent.

• Prohibits site control agreements and exclusive use agreements that condition franchise awards on dealer willingness to surrender property rights unless separately negotiated and compensated.

• Requires successor manufacturers to offer former franchisees the right to re-enter the market within a three-year period in their relevant market area (10-mile radius) before approving competing franchises.