Bill > HB2524

This bill modifies existing laws concerning franchise agreements between manufacturers and new motor vehicle dealers, aiming to clarify and strengthen protections for dealers. Key provisions include clarifying what constitutes "good cause" for a manufacturer to terminate, cancel, or not renew a franchise, placing the burden of proof on the manufacturer to demonstrate good cause and good faith, and ensuring dealers receive fair compensation for unused inventory and assets upon termination. The bill also addresses how manufacturers compensate dealers for warranty work, requiring that compensation for parts and labor be at rates charged to retail customers and limiting how often dealers can request rate increases. Furthermore, it introduces new regulations regarding dealer management computer systems, preventing manufacturers from forcing dealers to grant direct access and requiring manufacturers or their vendors to fully indemnify dealers for damages arising from the misuse or security breaches of customer data. Finally, the bill clarifies that manufacturers cannot discriminate between dealers in pricing, parts, or vehicle allocation, and introduces new definitions related to vehicle manufacturing and security breaches.