Bill > SB6272

This bill modifies existing laws concerning manufacturer and new motor vehicle dealer franchise agreements, primarily by adding new definitions and clarifying existing provisions related to dealer operations and manufacturer responsibilities. It introduces definitions for terms like "completed vehicle," "dealer management computer system," "dealer management computer system vendor," "final-stage manufacturer," "incomplete vehicle," and "security breach," which are crucial for understanding the scope of the new regulations. The bill also amends sections related to the denial of licenses, the grounds for termination of franchise agreements, and the compensation manufacturers must provide to dealers upon termination, including costs for transporting goods and the fair market value of signs and equipment. Furthermore, it clarifies rules regarding warranty work compensation, limiting the frequency of rate increases for dealers and shortening the timeframe for submitting and paying warranty claims, while also introducing new exclusions for what constitutes standard retail customer pricing for parts and labor. The legislation also strengthens protections against unfair competition by manufacturers, prohibiting discrimination in pricing, allocation, and delivery of vehicles, parts, and accessories, and restricting manufacturers from directly competing with dealers or owning dealerships under most circumstances, with specific exceptions for certain types of vehicles and business arrangements. A significant addition is the protection of dealer computer systems, preventing manufacturers or their vendors from requiring direct access and instead allowing dealers to provide data in standard formats, while holding manufacturers and vendors responsible for any damages or security breaches resulting from their handling of dealer or customer data. Finally, the bill clarifies that its provisions apply to all franchises and contracts entered into, amended, or renewed after its effective date.