Senate Bill 342 - Clarify Motor Vehicle Franchise Laws

• Establishes clear procedures for dealership transfers and management changes, requiring 30 days' notice to manufacturers and limiting objections to specified criteria such as transferee qualifications, management fitness, facility compliance, and relocation reasonableness.

• Prohibits manufacturers from conditioning approval of transfers, relocations, or management changes on dealer willingness to construct facilities, renovate property, acquire/divest vehicle lines, or enroll in facility programs (effective July 1, 2021 for ownership transfers).

• Restricts manufacturer requirements to purchase electric vehicle charging stations and diagnostic equipment unless dealers actually offer electric vehicles or lack interchangeable equipment, with dealers selling under 250 vehicles annually able to request tool loaner agreements.

• Prevents manufacturers from requiring dealers to purchase pre-owned vehicles as precondition for new vehicle purchases and extends grandfather protections for pricing programs operating before October 1, 1999 and June 30, 2001 until June 30, 2024.

• Strengthens warranty and recall compensation requirements, extends audit limitations to 24-month periods, requires manufacturers to reimburse full loaner/rental vehicle costs, and prohibits exclusive financial statement requirements for multi-franchise dealers.