House Bill 403 Summary

• Clarifies dealership transfer procedures by requiring 30 days' written notice to franchisors with specific information about proposed transferees, management changes, and facility relocations, with automatic waiver of franchisor objections if not asserted within 30-60 days depending on information requests.

• Prohibits manufacturers from conditioning approval of transfers, management changes, or relocations on dealer willingness to construct facilities, acquire/divest vehicle lines, or establish exclusive facilities, with exceptions for existing pre-July 1, 2021 agreements.

• Restricts manufacturer requirements to purchase pre-owned vehicles, electric vehicle charging stations (unless dealer sells electric vehicles), and diagnostic equipment when equivalent equipment from other manufacturers is available.

• Requires manufacturers to reimburse dealers in full for actual loaner/rental vehicle costs when required by manufacturer, and prohibits requiring facility changes within 10 years if dealer previously invested over $250,000 in facility improvements approved by manufacturer.

• Establishes protections for dealer-customer online sales transactions by requiring manufacturers to assign customer vehicle reservations to designated or nearest dealers and prohibiting restrictions on dealer financing, pricing negotiations, and ancillary product sales.