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RI S2778

Bill

Status

Introduced

3/4/2026

Primary Sponsor

Louis Dipalma

Click for details

Origin

Senate

2026 Regular Session

AI Summary

  • Prohibits motor vehicle manufacturers, common entities, affiliates, or joint ventures licensed after January 1, 2020 from selling directly to retail consumers, requiring sales to go through franchised dealers

  • Adds new definition of "common entity" as any person or entity with more than 30% equity interest controlled by or shared with a manufacturer, distributor, or factory branch

  • Expands definition of "sell" to include accepting deposits/payments, setting retail prices, negotiating terms with consumers, accepting trade-ins, arranging pickup/delivery, and displaying vehicles for test drives

  • Extends existing regulatory requirements and prohibited practices currently applicable to manufacturers to also cover distributors and factory branches throughout the chapter

  • Requires performance criteria used to evaluate dealers to account for actual vehicle allocation offered, be fair and reasonable, and consider local and regional economic conditions

Legislative Description

Extends certain protocols applicable to vehicle manufacturers to their distributors and factory branches, updates definitions relative to common entities and sales.

Motor And Other Vehicles

Last Action

Introduced, referred to Senate Commerce

3/4/2026

Committee Referrals

Commerce3/4/2026

Full Bill Text

No bill text available