Substitute Senate Bill 242 Summary

• Establishes a new section 4517.011 declaring motor vehicle distribution and sales a matter of statewide interest requiring uniform regulation to ensure sound dealer systems and fair competition.

• Amends section 4517.52 to allow franchisees (except recreational vehicle dealers) to establish their own warranty service labor rates and parts markup percentages based on submitted repair orders, with franchisors having 30 days to contest and a dispute resolution process available.

• Expands prohibitions on franchisor conduct in section 4517.59 including restrictions on changing dealer geographic areas without considering local market conditions, prohibiting retaliation for exercising rights under the law, and establishing safeguards for warranty and recall claim reimbursement with specific timelines.

• Modifies section 4517.55 to define "local market conditions" as including demographics, geographical characteristics, economic circumstances, proximity of competing dealers, and customer drive time/distance when evaluating dealer performance criteria.

• Repeals existing sections 4517.01, 4517.52, 4517.55, and 4517.59 and replaces them with amended versions, with most new protections exempting recreational vehicle franchises.