HB 83 Summary

• Creates Section 63-17-118 requiring manufacturers/distributors to compensate dealers upon franchise termination, cancellation, or discontinuation by repurchasing new vehicles under 750 miles at dealer's net cost, parts at catalog prices, and paying 5% handling charges plus shipping.

• Requires manufacturers to pay dealers up to 12 months of facility costs (rent or fair market value), lease payments for computer equipment and required leases, fair market value of signs and service equipment, and fair market value of the franchise itself if the line-make is discontinued.

• Prohibits dealers from selling third-party extended service contracts without disclosing in writing that products are not manufacturer-backed; prohibits manufacturers from coercing dealers to exclusively sell manufacturer-endorsed extended contracts.

• Prohibits manufacturers from arbitrarily changing dealer market areas without written notice and justification, conditioning incentives on site control agreements, establishing unfair performance standards, requiring specific financing institutions, or demanding customer lists except for legitimate business purposes.

• Allows dealers to submit amended or supplemental incentive claims within 60 days from submission date; repeals previous franchise renewal provisions effective July 1, 2013.