Bill > SB0157

This bill enacts the New Motorboat Distributor Act, establishing a comprehensive regulatory framework for motorboat distributors and their dealers, referred to as "distributees." The Act defines key terms such as "motorboat" (a watercraft at least 14 feet long with a mechanical engine of at least 50 horsepower), "distributor" (a manufacturer or entity that permits a dealer to sell their motorboats), and "distributee" (a dealer authorized to sell new motorboats). It outlines the powers and duties of the Executive Director of the Department of Commerce in administering and enforcing these regulations, including the authority to conduct adjudicative proceedings and issue orders. The bill mandates annual registration and fees for distributors and distributees, and prohibits distributors from engaging in various unfair or coercive practices, such as forcing dealers to accept unwanted inventory, interfering with their ability to sell other brands, or unfairly increasing prices. It also establishes rules for the sale or transfer of dealership ownership, succession of dealerships upon the death or incapacity of a dealer, and outlines distributor obligations regarding warranty and recall service, including fair compensation for dealers. Furthermore, the Act regulates the establishment of new dealerships or relocation of existing ones within a specified "notice area" (a 50-mile radius of an existing dealership of the same brand), requiring distributors to provide notice and justification, and allowing for administrative review if existing dealers object. Finally, it details the conditions under which a distributor can terminate a dealership agreement, requiring good cause and specific notice periods, and mandates that distributors repurchase unsold inventory and assets from terminated dealers. The bill also repeals existing laws related to motorboat dealers and sets an effective date of May 6, 2026.

Business and Industry

https://le.utah.gov/~2026/bills/static/SB0157.html