Bill > HB2518

This bill amends existing law to prohibit manufacturers and distributors of new motor vehicles from engaging in unfair or discriminatory practices against new motor vehicle dealers, with several specific changes and clarifications. It clarifies that manufacturers can temporarily own or operate a dealership for up to two years during a transition to a new owner, with a possible extension of 12 months under specific conditions and an adjudicative proceeding. The bill also modifies provisions related to manufacturers owning dealerships in conjunction with independent persons for diversity or to assist underrepresented groups, and allows truck manufacturers to own dealerships selling only trucks over 12,500 pounds gross vehicle weight if they have been continuously engaged in retail sales since January 1, 1993. It also adjusts the percentage of ownership a manufacturer can hold in a dealership selling a single line of vehicles and the minimum distance between such dealerships, and allows manufacturers producing electric vehicles who haven't previously franchised independent dealers to own dealerships for their makes. Furthermore, the bill updates the definition of "control" to include owning 10 percent or more of voting equity interest and clarifies that a violation of these provisions is considered an unlawful and unfair practice.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=2518&Year=2025&Initiative=false