Bill > H4980

This bill aims to modernize business practices between motor vehicle dealers, manufacturers, and distributors to enhance consumer protections by introducing several key provisions. It clarifies that certain regulations regarding the sale of new or used motor vehicles do not apply to remote electronic sales contracts signed by buyers away from the seller's location, provided the seller gives written notice of this exemption. The bill also prohibits manufacturers and distributors from coercing dealers into making significant facility changes, such as relocating or undertaking major renovations, unless it's part of an existing, similar program offered to multiple dealers or to comply with health, safety, or necessary technology requirements, and it sets a ten-year minimum before requiring such changes again. Furthermore, it restricts manufacturers from demanding customer lists or service files unless necessary for specific purposes like sales, warranty claims, or legal obligations, and mandates that any customer data obtained electronically must be fully indemnified by the manufacturer against data breaches or unlawful use. The bill also prevents arbitrary changes to a dealer's performance evaluation area, requiring 60 days' notice and supporting documentation, and allows dealers to protest such changes. It also prohibits manufacturers from forcing dealers to buy goods or services from specific vendors for facility improvements without offering the dealer the option to use a substantially similar vendor of their choice, with some exceptions for intellectual property and signage. The bill also addresses lease or subscription offerings, requiring them to be done through or in partnership with affiliated dealers, and prohibits manufacturers from coercing dealers to exclusively sell extended service contracts or similar products, though incentives are still permitted. Additionally, it prevents manufacturers from dictating retail prices for parts or labor on customer repairs and from recovering their warranty reimbursement costs through surcharges on vehicle invoices. The bill also mandates that manufacturers disclose to dealers any vehicle accessories or functions that can be remotely updated or changed, along with associated customer charges, and requires reasonable compensation to dealers for assisting customers with such remote changes performed at the dealership. It also protects dealers from adverse actions, chargebacks, or withheld payments due to vehicles being exported, provided the dealer can demonstrate they acted in good faith and did not know of the export intention. Finally, the bill establishes a mandatory mediation process for disputes concerning warranty and recall claim reimbursements, parts markups, labor rates, and time allowances for warranty work before a dealer or manufacturer can file a lawsuit, with the Attorney General appointing a mediator if parties cannot agree. It also allows existing Class 1 licensees to challenge the issuance of new Class 1 licenses to other parties if they believe the requirements haven't been met, with a process for appeal to the registrar and then to the superior court.

Budget and Finance

Joint Committee on Consumer Protection and Professional Licensure (Joint)

https://malegislature.gov/Bills/194/H4980