23 LC 39 3727
S. B. 184
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Senate Bill 184
By: Senators Robertson of the 29th, Williams of the 25th, Summers of the 13th, Walker III
of the 20th, Goodman of the 8th and others
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 10-1-664.1 of the Official Code of Georgia Annotated, relating to
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restrictions on the ownership, operation, or control of dealerships by manufacturers and2
franchisors and competing unfairly with new dealers, so as to repeal an exception to the3
prohibition on the ownership, operation, and control of motor vehicle dealerships by certain4
manufacturers, franchisors, and affiliates; to provide for related matters; to repeal conflicting5
laws; and for other purposes.6
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
SECTION 1.8
Code Section 10-1-664.1 of the Official Code of Georgia Annotated, relating to restrictions9
on the ownership, operation, or control of dealerships by manufacturers and franchisors and10
competing unfairly with new dealers, is amended by revising subsections (a) and (b) as11
follows:12
"(a) It shall be unlawful for any manufacturer or franchisor or any parent, affiliate, wholly13
or partially owned subsidiary, officer, or representative of a manufacturer or franchisor to14
own, operate, or control or to participate in the ownership, operation, or control of any new15
motor vehicle dealer in this state within a 15 mile radius of an existing dealer of such16
manufacturer or franchisor; to own, operate, or control, directly or indirectly, more than a17 23 LC 39 3727
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45 percent interest in a dealer or dealership in this state; to establish in this state an
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additional dealer or dealership in which such person or entity has any interest; or to own,19
operate, or control, directly or indirectly, any interest in a dealer or dealership in this state20
unless such person or entity has acquired such interest from a dealer or dealership which21
has been in operation for at least five years prior to such acquisition; provided, however,22
that this subsection shall not be construed to prohibit:23
(1) The ownership, operation, or control by a manufacturer or franchisor of a new motor24
vehicle dealer for a temporary period, not to exceed one year, during the transition from25
one owner or operator to another;26
(2) The ownership, operation, or control of a new motor vehicle dealer by a manufacturer27
or franchisor during a period in which such new motor vehicle dealer is being sold under28
a bona fide contract, shareholder agreement, or purchase option to the operator of the29
dealership;30
(3) The ownership, operation, or control of a new motor vehicle dealer by a manufacturer31
or franchisor at the same location at which such manufacturer or franchisor has been32
engaged in the retail sale of new motor vehicles as the owner, operator, or controller of33
such dealership for a continuous two-year period of time immediately prior to April 1,34
1999, where there is no prospective new motor vehicle dealer available to own or operate35
the dealership in a manner consistent with the public interest;36
(4) The ownership, operation, or control by a manufacturer which manufactures only37
motorcycles or motor homes of a retail sales operation engaged in the retail sale of38
motorcycles or motor homes;39
(5) The ownership, operation, or control by a manufacturer which is selling motor40
vehicles directly to the public at an established place of business on January 1, 1999, and41
which has never sold its line make of new motor vehicles in this state through a42
franchised new motor vehicle dealer unless and until such manufacturer is wholly or43
partially acquired by another manufacturer or franchisor;44 23 LC 39 3727
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(6) The ownership, operation, or control by a manufacturer which manufactures trucks
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with a gross vehicle weight rating of 12,500 pounds or more of a new motor vehicle46
dealer which only sells trucks with a gross vehicle weight rating of 12,500 pounds or47
more at the same location at which such manufacturer has been engaged in the retail sale48
of such trucks as the owner, operator, or controller of such dealership for a continuous49
two-year period of time immediately prior to April 1, 1999, or at one additional location50
which is not located within the relevant market area of an existing dealer of the same line51
make of trucks; provided, however, that
this exemption shall apply to a manufacturer52
described in this paragraph only until such manufacturer is wholly or partially acquired53
by another manufacturer or distributor; or54
(7) A manufacturer from selling new motor vehicles to customers if such vehicles are55
manufactured or assembled in accordance with custom design specifications of the56
customer and such sales are limited to no more than 150 vehicles per year; or.57
(8) The ownership, operation, or control by a manufacturer of not more than five58
locations licensed as new motor vehicle dealerships for the sale of new motor vehicles59
and any number of locations that engage exclusively in the repair of such manufacturer's60
line make of motor vehicles, provided that such manufacturer was selling or otherwise61
distributing its motor vehicles at an established place of business in this state as of62
January 1, 2015, and:63
(A) The manufacturer manufactures or assembles zero emissions motor vehicles64
exclusively and has never sold its line make of motor vehicles in this state through a65
franchised new motor vehicle dealer; and66
(B) The manufacturer has not acquired a controlling interest in a franchisor or a67
subsidiary or other entity controlled by such franchisor, or sold or transferred a68
controlling interest in such manufacturer to a franchisor or subsidiary or other entity69
controlled by such franchisor.70 23 LC 39 3727
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(b) It shall be unlawful for a manufacturer or franchisor or any parent, affiliate, wholly or
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partially owned subsidiary, officer, or representative of a manufacturer or franchisor to72
compete unfairly with a new motor vehicle dealer of the same line make, operating under73
a franchise, in the State of Georgia, and, except as otherwise provided in this subsection,74
the mere ownership, operation, or control of a new motor vehicle dealer by a manufacturer75
or franchisor under the conditions set forth in paragraphs (1) through (8)
(7) of76
subsection (a) of this Code section shall not constitute a violation of this subsection. For77
purposes of this Code section, a manufacturer or franchisor or any parent, affiliate, wholly78
or partially owned subsidiary, officer, or representative of a manufacturer or franchisor79
shall be conclusively presumed to be competing unfairly if it gives any preferential80
treatment to a dealer or dealership of which any interest is directly or indirectly owned,81
operated, or controlled by such manufacturer or franchisor or any partner, affiliate, wholly82
or partially owned subsidiary, officer, or representative of such manufacturer or franchisor,83
expressly including, but not limited to, preferential treatment regarding the direct or84
indirect cost of vehicles or parts, the availability or allocation of vehicles or parts, the85
availability or allocation of special or program vehicles, the provision of service and86
service support, the availability of or participation in special programs, the administration87
of warranty policy, the availability and use of after warranty adjustments, advertising, floor88
planning, financing or financing programs, or factory rebates."89
SECTION 2.90
All laws and parts of laws in conflict with this Act are repealed.91