H649 - Clarify Motor Vehicle Franchise Laws

• Establishes clear procedures for dealership transfers and management changes requiring 30-day notice to franchisors, with manufacturer objections limited to specific criteria and subject to Commissioner review for reasonableness.

• Prohibits manufacturers from conditioning approval of transfers, relocations, or management changes on requirements to construct new facilities, renovate existing ones, acquire/divest vehicle lines, or establish exclusive facilities and personnel.

• Restricts manufacturers from requiring dealers to purchase electric vehicle charging stations (limited to one per location) or diagnostic equipment if dealers have alternative equipment meeting manufacturer standards.

• Prohibits manufacturers from requiring dealers to purchase pre-owned vehicles as a franchise condition or incentive program requirement.

• Establishes protections for designated successors, requires fair warranty and recall compensation, limits audits to once per 24 months, guarantees minimum vehicle allocations for dealers selling 250 or fewer vehicles annually, and restricts financial statement requirements to once per calendar quarter.