HB 872 Summary

• Prohibits manufacturers, distributors, and wholesalers from coercing dealers to construct or substantially alter facilities if such construction or alteration would be unreasonable under the circumstances.

• Prohibits requiring facility construction or substantial alteration if the same area was constructed or substantially altered within the last ten (10) years as part of a prior manufacturer-approved program, standard, or policy, except for health/safety or technology-related improvements.

• Prohibits coercing dealers to purchase goods or facility services for non-trademarked items from manufacturer-designated vendors when dealers can obtain items of equal quality, material, and design from alternative vendors with prior manufacturer approval.

• Requires manufacturers to compensate dealers for all labor and parts required for recall repairs at reasonable rates, and to pay at least one percent (1%) monthly of vehicle value if repair parts remain unavailable for thirty (30) days after a Stop-Sale or Do-Not-Drive order is issued.

• Prohibits manufacturers from reducing dealer compensation through chargebacks or incentive removal solely because a dealer submitted a recall reimbursement claim under the new provisions.