6 | 6 | | A BILL TO BE ENTITLED |
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7 | 7 | | AN ACT |
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8 | 8 | | To amend Article 22 of Chapter 1 of Title 10 of the Official Code of Georgia Annotated, |
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9 | 9 | | 1 |
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10 | 10 | | relating to motor vehicle franchise practices, so as provide for protection of consumer data2 |
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11 | 11 | | in motor vehicle sales or lease transactions by affiliates of franchisors, manufacturers, and3 |
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12 | 12 | | distributors; to provide for procedures, conditions, and limitations on the use of motor4 |
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13 | 13 | | vehicle dealer data; to provide for standards for access and integration of data collected and5 |
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14 | 14 | | maintained by dealers and by third parties on behalf of dealers; to provide for applicability;6 |
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15 | 15 | | to provide for requirements of franchisors, manufacturers, and distributors in relation to7 |
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16 | 16 | | dealers; to provide for additional unlawful activities by franchisors; to revise legislative8 |
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17 | 17 | | findings; to provide for definitions; to amend Code Section 40-2-39 of the Official Code of9 |
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18 | 18 | | Georgia Annotated, relating to registration and licensing of new motor vehicle dealers,10 |
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19 | 19 | | temporary site permits, administrative fines, and penalty, so as to provide for activities which11 |
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20 | 20 | | qualify as activity as a new motor vehicle dealer; to provide for related matters; to repeal12 |
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21 | 21 | | conflicting laws; and for other purposes.13 |
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22 | 22 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:14 |
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23 | 23 | | S. B. 81 |
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25 | 25 | | SECTION 1. |
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26 | 26 | | 15 |
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27 | 27 | | Article 22 of Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to16 |
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28 | 28 | | motor vehicle franchise practices, is amended by revising Code Section 10-1-621, relating17 |
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29 | 29 | | to legislative findings, as follows:18 |
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30 | 30 | | "10-1-621.19 |
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31 | 31 | | The General Assembly finds and declares that:20 |
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32 | 32 | | (1) The distribution and sale of motor vehicles within this state are vital to the general21 |
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33 | 33 | | economy of this state and to the public interest and public welfare;22 |
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34 | 34 | | (2) The provision for warranty service, recall service, |
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35 | 35 | | and the repair of predelivery23 |
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36 | 36 | | transportation damages to motor vehicles is of substantial concern to the people of this24 |
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37 | 37 | | state;25 |
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38 | 38 | | (3) Robust competition among dealers benefits consumers through competitive pricing,26 |
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39 | 39 | | service, and convenient repair facilities, thus the The maintenance of full and fair27 |
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40 | 40 | | inter-brand and intra-brand competition among dealers and others is in the public interest;28 |
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41 | 41 | | and29 |
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42 | 42 | | (4) The maintenance of strong and sound dealerships is essential to provide continuing30 |
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43 | 43 | | and necessary reliable services to the consuming public in this state, to the introduction31 |
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44 | 44 | | of new automotive technology and support and maintenance of such after a sale, to32 |
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45 | 45 | | protect against the creation or perpetuation of monopolies and other practices that are33 |
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46 | 46 | | detrimental to public welfare and local businesses, and to provide stable employment to34 |
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47 | 47 | | the citizens of this state."35 |
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48 | 48 | | SECTION 2.36 |
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49 | 49 | | Said article is further amended by revising Code Section 10-1-632, relating to protection of37 |
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50 | 50 | | consumer data in motor vehicle sales or lease transactions and burden of proof for violations,38 |
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51 | 51 | | as follows:39 |
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52 | 52 | | S. B. 81 |
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54 | 54 | | "10-1-632. |
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55 | 55 | | 40 |
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56 | 56 | | (a) With respect to consumer data, a franchisor, manufacturer, distributor, or affiliate |
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57 | 57 | | 41 |
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58 | 58 | | thereof or a third party acting on behalf of a franchisor, manufacturer, or distributor, or42 |
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59 | 59 | | affiliate thereof:43 |
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60 | 60 | | (1) Shall comply with and shall not cause a dealer to violate any applicable restrictions44 |
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61 | 61 | | on reuse or disclosure of the consumer data established by federal or state law;45 |
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62 | 62 | | (2) Shall provide a written statement to the dealer upon request describing the established46 |
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63 | 63 | | procedures adopted by such franchisor, manufacturer, distributor, or affiliate thereof or47 |
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64 | 64 | | third party acting on behalf of the franchisor, manufacturer, or distributor which meet or48 |
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65 | 65 | | exceed any federal or state requirements to safeguard the consumer data, including, but49 |
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66 | 66 | | not limited to, those established in the federal Gramm-Leach-Bliley Act, 15 U.S.C.50 |
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67 | 67 | | Section 6801, et seq.;51 |
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68 | 68 | | (3) Shall, upon the written request of the dealer, provide a written list of the consumer52 |
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69 | 69 | | data obtained from the dealer and all persons to whom any consumer data has been53 |
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70 | 70 | | provided by the franchisor, manufacturer, distributor, or affiliate thereof or a third party54 |
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71 | 71 | | acting on behalf of a franchisor, manufacturer, or distributor during the preceding six55 |
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72 | 72 | | months. The dealer may make such a request no more than once every six months. The56 |
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73 | 73 | | list must indicate the specific fields of consumer data which were provided to each57 |
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74 | 74 | | person. Notwithstanding the foregoing, such a list shall not be required to include:58 |
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75 | 75 | | (A) A person to whom consumer data was provided, or the specific consumer data59 |
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76 | 76 | | provided to such person, if the person was, at the time such consumer data was60 |
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77 | 77 | | provided, a service provider, subcontractor, or consultant acting in the course of61 |
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78 | 78 | | performance of services on behalf of or for the benefit of the dealer, franchisor,62 |
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79 | 79 | | manufacturer, distributor, third party, or dealer affiliate, provided that the dealer,63 |
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80 | 80 | | franchisor, manufacturer, distributor, third party, or dealer affiliate has entered into an64 |
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81 | 81 | | agreement with such person requiring that such person comply with the safeguard65 |
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82 | 82 | | requirements of applicable state and federal law, including, but not limited to, those66 |
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83 | 83 | | S. B. 81 |
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85 | 85 | | established in the federal Gramm-Leach-Bliley Act, 15 U.S.C. Section 6801, et seq.;67 |
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86 | 86 | | and68 |
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87 | 87 | | (B) A person to whom consumer data was provided, or the specific consumer data69 |
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88 | 88 | | provided to such person, if the dealer has previously consented in writing to such70 |
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89 | 89 | | person receiving such consumer data and the dealer has not withdrawn such consent in71 |
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90 | 90 | | writing; and72 |
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91 | 91 | | (C) A person to whom consumer data was provided, or the specific consumer data 73 |
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92 | 92 | | provided to such person, if that would require a franchisor, manufacturer, distributor, 74 |
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93 | 93 | | or affiliate thereof to violate any applicable restrictions on reuse or disclosure of the 75 |
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94 | 94 | | consumer data established by federal or state law;76 |
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95 | 95 | | (4) May not require that a dealer grant the franchisor, manufacturer, distributor, or77 |
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96 | 96 | | affiliate thereof or a third party acting on behalf of a franchisor, manufacturer, or78 |
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97 | 97 | | distributor direct or indirect access to such dealer's data management system to obtain79 |
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98 | 98 | | consumer data. A franchisor, manufacturer, distributor, affiliate, or a third party acting80 |
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99 | 99 | | on behalf of a franchisor, manufacturer, or distributor must shall permit a dealer to81 |
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100 | 100 | | furnish consumer data in a widely accepted file format, such as comma delimited, and82 |
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101 | 101 | | through a third-party vendor selected by the dealer.; provided, however, that However,83 |
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102 | 102 | | a franchisor, manufacturer, or distributor, or affiliate thereof or a third party acting on84 |
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103 | 103 | | behalf of a franchisor, manufacturer, or distributor may access or obtain consumer data85 |
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104 | 104 | | directly from a dealer's data management system with the express consent of the dealer. 86 |
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105 | 105 | | Such consent shall The consent must be in the form of a written document that is separate87 |
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106 | 106 | | from the parties' franchise agreement, is executed by the dealer, and may be withdrawn88 |
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107 | 107 | | allow for withdrawal by the dealer upon 30 days' written notice to the franchisor,89 |
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108 | 108 | | manufacturer, or distributor as applicable. For incentive programs beginning on or after90 |
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109 | 109 | | July 1, 2019, such consent shall not be required as a condition to a motor vehicle dealer's91 |
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110 | 110 | | participation in an incentive program unless such consent is necessary to obtain consumer92 |
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111 | 111 | | data to implement the program; and93 |
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112 | 112 | | S. B. 81 |
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114 | 114 | | (5) Shall indemnify the dealer for any third-party claims asserted against or damages |
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115 | 115 | | 94 |
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116 | 116 | | incurred by the dealer to the extent caused by access to, use of, or disclosure of consumer95 |
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117 | 117 | | data in violation of this Code section by the franchisor, manufacturer, distributor, |
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118 | 118 | | or96 |
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119 | 119 | | affiliate thereof or a third party to whom the franchisor, manufacturer, or distributor has97 |
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120 | 120 | | provided consumer data.98 |
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121 | 121 | | (b) Nothing contained in this Code section shall limit the ability of the a franchisor, the99 |
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122 | 122 | | manufacturer, or distributor, or affiliate thereof to require that the dealer provide, or use in100 |
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123 | 123 | | accordance with the law, such customer information related solely to such manufacturer's101 |
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124 | 124 | | or distributor's own vehicle makes to the extent necessary to do any of the following:102 |
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125 | 125 | | (1) Satisfy any safety or recall notice obligations or other legal notice obligations on the103 |
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126 | 126 | | part of the manufacturer;104 |
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127 | 127 | | (2) Complete the sale and delivery of a new motor vehicle to a customer;105 |
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128 | 128 | | (3) Validate and pay customer or dealer incentives;106 |
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129 | 129 | | (4) Submit to the franchisor, manufacturer, or distributor claims for any services supplied107 |
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130 | 130 | | by the dealer for any claim for warranty parts or repairs;108 |
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131 | 131 | | (5) Market analysis;109 |
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132 | 132 | | (6) Evaluate sales and service customer satisfaction with the dealer, including surveys;110 |
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133 | 133 | | or111 |
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134 | 134 | | (7) Reasonable marketing purposes that benefit the dealer.112 |
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135 | 135 | | (c) In any cause of action against a franchisor, manufacturer, or distributor, or affiliate113 |
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136 | 136 | | thereof for a violation of this Code section, the party bringing the action shall have the114 |
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137 | 137 | | burden of proof."115 |
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138 | 138 | | SECTION 3.116 |
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139 | 139 | | Said article is further amended by adding a new Code section to read as follows:117 |
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140 | 140 | | "10-1-633.118 |
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141 | 141 | | (a) As used in this Code section, the term:119 |
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142 | 142 | | S. B. 81 |
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144 | 144 | | (1) 'Authorized integrator' means a third party with whom a dealer has entered into a120 |
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145 | 145 | | written contract to perform a specific function which requires such third party to access121 |
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146 | 146 | | protected dealer data or write data to a dealer data system or both.122 |
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147 | 147 | | (2) 'Data access overcharge' means any charge to a dealer or person authorized to123 |
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148 | 148 | | perform integration that is greater than an amount which reimburses direct costs incurred124 |
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149 | 149 | | by a dealer data systems vendor for integration. When a dealer data systems vendor fails125 |
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150 | 150 | | to disclose the direct costs of integration and provide documentation of such costs, any126 |
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151 | 151 | | direct costs sought to be reimbursed shall be considered a data access overcharge.127 |
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152 | 152 | | (3) 'Dealer data system' means any software or hardware provided by a third party and128 |
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153 | 153 | | used by a dealer in its business operations to store, process, or maintain protected dealer129 |
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154 | 154 | | data.130 |
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155 | 155 | | (4) 'Dealer data systems vendor' means any third party that stores protected dealer data131 |
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156 | 156 | | pursuant to written contract with a dealer and shall include a dealer management system132 |
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157 | 157 | | or customer relations management system provided by a third party. Such term shall not133 |
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158 | 158 | | include a manufacturer, distributor, or affiliate subject to Code Section 10-1-632.134 |
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159 | 159 | | (5) 'Integration' means access by an authorized integrator to protected dealer data which135 |
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160 | 160 | | does not require access to any copyright protected material but allows for access to all136 |
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161 | 161 | | protected dealer data and which can be accomplished by any commercially reasonable137 |
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162 | 162 | | means not otherwise in violation of this Code section.138 |
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163 | 163 | | (6) 'Prior express written consent' means written consent provided by the dealer that is139 |
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164 | 164 | | contained in a document separate from any other consent, contract, franchise agreement,140 |
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165 | 165 | | or other writing and that specifically outlines a dealer's consent for an authorized141 |
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166 | 166 | | integrator to obtain protected dealer data, including the scope and duration of such142 |
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167 | 167 | | consent, and may be unilaterally revoked by the dealer upon 30 days' notice without143 |
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168 | 168 | | cause and immediately with cause.144 |
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169 | 169 | | (7) 'Protected dealer data' means any of the following data that is stored in a dealer data145 |
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170 | 170 | | system:146 |
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171 | 171 | | S. B. 81 |
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173 | 173 | | (A) Personal, financial, or other data pertaining to a consumer that is provided to a147 |
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174 | 174 | | dealer by a consumer;148 |
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175 | 175 | | (B) Motor vehicle diagnostic data; or149 |
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176 | 176 | | (C) Any other data relating to the business operations of a dealer stored or maintained150 |
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177 | 177 | | within a dealer data system.151 |
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178 | 178 | | (8) 'Secure open application programming interface' or 'secure open API' means an152 |
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179 | 179 | | application programming interface that allows an authorized integrator to integrate with153 |
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180 | 180 | | a dealer data system remotely and securely.154 |
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181 | 181 | | (9) 'STAR standards' means standards for the automotive retail industry established by155 |
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182 | 182 | | the Standards for Technology in Automotive Retail organization.156 |
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183 | 183 | | (10) 'Third party' includes service providers, vendors, including dealer data systems157 |
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184 | 184 | | vendors and authorized integrators, and any other individual or entity other than a dealer. 158 |
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185 | 185 | | Such term shall not include any manufacturer; distributor; affiliate of a manufacturer or159 |
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186 | 186 | | distributor; a third party acting on behalf of or engaged contractually or by other160 |
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187 | 187 | | agreement with a manufacturer or distributor or an affiliate thereof; any governmental161 |
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188 | 188 | | entity acting pursuant to federal, state, or local law; or any third party acting pursuant to162 |
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189 | 189 | | a valid court order.163 |
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190 | 190 | | (b) It shall be unlawful for a third party to:164 |
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191 | 191 | | (1) Access, share, sell, copy, use, or transmit protected dealer data from a dealer data165 |
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192 | 192 | | system without the prior express written consent of a dealer;166 |
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193 | 193 | | (2) Take any action, by contract, technical means, or otherwise, that would prohibit or167 |
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194 | 194 | | limit a dealer's ability to protect, store, copy, share, or use any protected dealer data,168 |
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195 | 195 | | including, but not limited to:169 |
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196 | 196 | | (A) Imposing any data access overcharges or other restrictions of any kind on the170 |
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197 | 197 | | dealer or any authorized integrator for integration;171 |
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198 | 198 | | (B) Prohibiting an authorized integrator or any third party identified by a dealer as an172 |
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199 | 199 | | authorized integrator that has satisfied or is compliant with the STAR standards, or a173 |
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200 | 200 | | S. B. 81 |
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202 | 202 | | standard compatible with such standards, from performing integration or placing174 |
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203 | 203 | | unreasonable restrictions on integration, which shall include, but not be limited to:175 |
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204 | 204 | | (i) Unreasonable restrictions on the scope or nature of the data shared with an176 |
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205 | 205 | | authorized integrator;177 |
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206 | 206 | | (ii) Unreasonable restrictions on the ability of an authorized integrator to write data178 |
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207 | 207 | | to a dealer data system;179 |
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208 | 208 | | (iii) Unreasonable restrictions or conditions on a third party accessing or sharing180 |
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209 | 209 | | protected dealer data or writing data to a dealer data system; and181 |
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210 | 210 | | (iv) Requiring unreasonable access to sensitive, competitive, or other confidential182 |
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211 | 211 | | business information of a third party as a condition for access to protected dealer data183 |
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212 | 212 | | or as a condition to share protected dealer data with an authorized integrator;184 |
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213 | 213 | | (C) Prohibiting or limiting a dealer's ability to store, copy, securely share, or use185 |
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214 | 214 | | protected dealer data outside the dealer data system in any manner and for any reason;186 |
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215 | 215 | | or187 |
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216 | 216 | | (D) Permitting access to or accessing protected dealer data without prior express188 |
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217 | 217 | | written consent by the dealer.189 |
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218 | 218 | | (c)(1) A secure open application programming interface shall:190 |
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219 | 219 | | (A) Be made available by a dealer data systems vendor to any authorized integrator191 |
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220 | 220 | | upon request by a dealer;192 |
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221 | 221 | | (B) Include all relevant endpoints to allow for access to all protected dealer data or to193 |
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222 | 222 | | integrate with protected dealer data; and194 |
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223 | 223 | | (C) Provide granularity and control necessary for dealers and authorized integrators to195 |
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224 | 224 | | integrate the data necessary pursuant to contract terms between the dealer and196 |
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225 | 225 | | authorized integrator.197 |
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226 | 226 | | (2) For purposes of this Code section, secure open application programming shall not198 |
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227 | 227 | | require that an application programming interface be available to the public or at no cost199 |
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228 | 228 | | S. B. 81 |
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230 | 230 | | to an authorized integrator, provided that no data access overcharge may be assessed in200 |
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231 | 231 | | connection with a secure open API.201 |
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232 | 232 | | (d)(1) A dealer data systems vendor shall adopt and make available a standardized202 |
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233 | 233 | | integration framework that allows for integration through secure open APIs to authorized203 |
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234 | 234 | | integrators. In the event that application programming interfaces are no longer the204 |
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235 | 235 | | reasonable commercial or technical standard for secure data integration, a similar open205 |
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236 | 236 | | access integration method may be provided to the extent such method provides the same206 |
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237 | 237 | | or better secure integration to dealers and authorized integrators as a secure open API. 207 |
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238 | 238 | | Any dealer data systems vendor that utilizes STAR standards or a comparable system208 |
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239 | 239 | | shall comply with the requirements of this subsection.209 |
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240 | 240 | | (2) A dealer data systems vendor and authorized integrator:210 |
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241 | 241 | | (A) Shall be authorized to integrate, or otherwise access, use, store, or share protected211 |
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242 | 242 | | dealer data to the extent only outlined in and authorized by the dealer data systems212 |
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243 | 243 | | vendor contract or authorized integrator contract;213 |
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244 | 244 | | (B) Shall provide that any dealer data systems vendor contract or authorized integrator214 |
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245 | 245 | | contract may be terminated upon no more than 90 days' notice from the dealer; and215 |
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246 | 246 | | (C) Shall, in order to prevent any risk of consumer harm or inconvenience, ensure a216 |
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247 | 247 | | secure transition of all protected dealer data to a successor dealer data systems vendor217 |
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248 | 248 | | or authorized integrator upon notice of a dealer's intent to terminate a dealer data218 |
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249 | 249 | | systems vendor contract or authorized integrator contract. The requirements of this219 |
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250 | 250 | | subparagraph may be satisfied by taking any of the following actions:220 |
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251 | 251 | | (i) Providing unrestricted access to all protected dealer data and all other data stored221 |
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252 | 252 | | in the dealer data system within a commercially reasonable time and in a format that222 |
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253 | 253 | | a successor dealer data systems vendor or authorized integrator is capable of223 |
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254 | 254 | | accessing and using;224 |
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255 | 255 | | (ii) Deleting or returning to the dealer all protected dealer data prior to termination225 |
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256 | 256 | | of the contract pursuant to any written directions of the dealer;226 |
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257 | 257 | | S. B. 81 |
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259 | 259 | | (iii) Providing a dealer, upon request, with a list of all entities with whom it is sharing227 |
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260 | 260 | | or has shared protected dealer data or to whom it has allowed access to protected228 |
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261 | 261 | | dealer data; and229 |
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262 | 262 | | (iv) Allowing a dealer to audit access to and use of any protected dealer data by the230 |
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263 | 263 | | dealer data systems vendor or authorized integrator access.231 |
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264 | 264 | | (3) Any dealer data systems vendor, authorized integrator, or third party acting232 |
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265 | 265 | | pursuant to a written contract with or on behalf of a dealer shall indemnify the dealer233 |
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266 | 266 | | for any third-party claims asserted against or damages incurred by the dealer from234 |
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267 | 267 | | complaints, claims, or actions arising out of the willful, negligent, or impermissible use235 |
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268 | 268 | | or disclosure of protected dealer data, customer data, or other sensitive information in236 |
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269 | 269 | | a dealer data system by the dealer data system vendor, authorized integrator, or third237 |
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270 | 270 | | party. Such indemnification shall include, but not be limited to, judgments, settlements,238 |
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271 | 271 | | fines, penalties, litigation costs, defense costs, court costs, costs related to the disclosure239 |
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272 | 272 | | of security breaches, and attorneys' fees arising out of complaints, claims, civil, or240 |
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273 | 273 | | administrative actions.241 |
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274 | 274 | | (e) A manufacturer, franchisor, distributor, or affiliate thereof, or any third party acting on242 |
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275 | 275 | | behalf of a manufacturer, franchisor, distributor, or affiliate thereof; a data systems vendor;243 |
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276 | 276 | | or dealer shall not prohibit a dealer from regularly and continually monitoring or auditing244 |
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277 | 277 | | the specific data accessed from or written to a dealer data system or from complying with245 |
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278 | 278 | | applicable state and federal laws or any rules or regulations promulgated thereunder. This246 |
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279 | 279 | | subsection shall not impose an obligation on a manufacturer, franchisor, distributor, or247 |
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280 | 280 | | affiliate thereof, a data systems vendor, or a third party to perform such monitoring or248 |
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281 | 281 | | auditing.249 |
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282 | 282 | | (f) A manufacturer, franchisor, distributor, data systems vendor or any third party acting250 |
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283 | 283 | | on behalf of a manufacturer, franchisor, distributor, data systems vendor, or dealer shall not251 |
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284 | 284 | | prohibit a dealer from copying, storing, or backing up data stored on its dealer data252 |
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285 | 285 | | systems, or duplicating the critical components or functions thereof, for the purpose of253 |
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286 | 286 | | S. B. 81 |
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288 | 288 | | allowing a dealer to restore business operations in the event of a security breach or other254 |
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289 | 289 | | event that renders a dealer data system inoperable. This subsection shall not impose an255 |
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290 | 290 | | obligation on a manufacturer, franchisor, distributor, data systems vendor, or third party256 |
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291 | 291 | | to provide such capabilities. This subsection shall not relieve a dealer from any contractual257 |
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292 | 292 | | obligation relating to the safeguard, storage, copy, use, ownership, or sharing of or access258 |
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293 | 293 | | to data.259 |
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294 | 294 | | (g) A dealer data systems vendor or authorized integrator shall not be held responsible for260 |
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295 | 295 | | any action taken directly by a dealer or for any appropriately taken action upon written261 |
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296 | 296 | | request of a dealer to the extent that such action prevents such vendor or integrator from262 |
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297 | 297 | | meeting any legal obligation regarding the protection of protected dealer data or results in263 |
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298 | 298 | | any liability as a consequence of such actions by the dealer.264 |
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299 | 299 | | (h) A dealer shall not be held responsible for any action taken directly by any of its dealer265 |
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300 | 300 | | data systems vendors or authorized integrators or for any appropriately taken action upon266 |
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301 | 301 | | written request of a dealer data systems vendor or authorized integrator to the extent that267 |
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302 | 302 | | such action prevents such dealer from meeting any legal obligation regarding the protection268 |
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303 | 303 | | of protected dealer data or results in any liability as a consequence of such actions by the269 |
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304 | 304 | | dealer data systems vendor or authorized integrator.270 |
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305 | 305 | | (i) The rights conferred on dealers in this Code section are not waivable and may not be271 |
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306 | 306 | | reduced or otherwise modified by any contract, agreement, or incentive program.272 |
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307 | 307 | | (j) Nothing in this Code section shall:273 |
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308 | 308 | | (1) Be interpreted to prevent a dealer or third party from discharging its obligations or274 |
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309 | 309 | | limiting responsibilities as a service provider to protect and secure protected dealer data275 |
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310 | 310 | | under an agreement or as otherwise required pursuant to federal, state, or local law;276 |
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311 | 311 | | (2) Give a new motor vehicle dealer any ownership or rights to share or use motor277 |
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312 | 312 | | vehicle diagnostic data beyond what is necessary to fulfill a dealer's obligation to provide278 |
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313 | 313 | | warranty, repair, or service work to its customers;279 |
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314 | 314 | | (3) Govern, restrict, or apply to data that exists outside of a dealer data system; or280 |
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315 | 315 | | S. B. 81 |
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317 | 317 | | (4) Relieve a manufacturer, franchisor, distributor, third party acting on behalf of a281 |
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318 | 318 | | manufacturer, franchisor, distributor, or affiliate thereof from the requirements of Code282 |
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319 | 319 | | Section 10-1-632."283 |
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320 | 320 | | SECTION 4.284 |
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321 | 321 | | Said article is further amended in Code Section 10-1-641, relating to requirements of285 |
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322 | 322 | | franchisor, manufacturer, and distributor, reasonable compensation for parts and labor, recall286 |
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323 | 323 | | notices, and stop-sales, by revising paragraph (1) of subsection (a) as follows:287 |
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324 | 324 | | "(a)(1) Each franchisor, manufacturer, or distributor:288 |
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325 | 325 | | (A) Shall specify in writing to each of its dealers in this state the dealer's obligations289 |
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326 | 326 | | for predelivery preparation including the repair of damages incurred in the290 |
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327 | 327 | | transportation of vehicles as set forth in Code Section 10-1-642, recall work, and291 |
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328 | 328 | | warranty service on its products;292 |
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329 | 329 | | (B) Shall, at the election of the dealer, reasonably compensate the dealer for parts and293 |
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330 | 330 | | labor provided for such warranty service work as provided in paragraph (2) of this294 |
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331 | 331 | | subsection;295 |
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332 | 332 | | (C) Shall provide the dealer with a schedule of compensation to be paid such dealer for296 |
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333 | 333 | | parts, work, and service in connection therewith; and297 |
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334 | 334 | | (D) Shall provide the dealer with a schedule of the time allowance for the performance298 |
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335 | 335 | | of such work and service. Any such schedule of compensation shall include reasonable299 |
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336 | 336 | | compensation for diagnostic work, repair service, and labor. Time allowances for the300 |
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337 | 337 | | diagnosis and performance of such work and service shall be reasonable and adequate301 |
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338 | 338 | | for the work to be performed; and302 |
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339 | 339 | | (E) Shall provide compensation to the dealer for assistance provided to a retail buyer303 |
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340 | 340 | | or lessee whose vehicle required a change, repair, or update by remote means to any304 |
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341 | 341 | | part, system, or accessory or to any function of his or her vehicle by the vehicle305 |
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342 | 342 | | manufacturer, franchisor, or distributor when such assistance was performed at the306 |
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343 | 343 | | S. B. 81 |
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345 | 345 | | dealership or by dealership personnel at another location authorized by the307 |
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346 | 346 | | manufacturer or distributor at the request of the customer or at the request of the308 |
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347 | 347 | | manufacturer, franchisor, or distributor on behalf of the customer."309 |
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348 | 348 | | SECTION 5.310 |
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349 | 349 | | Said article is further amended in Code Section 10-1-662, relating to unlawful activities by311 |
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350 | 350 | | franchisors, by revising paragraphs (1), (20), and (21) of and adding a new paragraph to312 |
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351 | 351 | | subsection (a) to read as follows:313 |
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352 | 352 | | "(1)(A) To delay, refuse, or fail to deliver new motor vehicles or new motor vehicle314 |
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353 | 353 | | parts or accessories in a reasonable time and in reasonable quantity if such vehicles,315 |
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354 | 354 | | parts, or accessories are publicly advertised as being available for immediate delivery. 316 |
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355 | 355 | | Upon written request of the dealer, the franchisor shall communicate its allocation317 |
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356 | 356 | | process in writing in a clear and concise manner within 30 days from receipt of the318 |
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357 | 357 | | dealer's request. For purposes of this paragraph, a reasonable quantity of vehicles:319 |
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358 | 358 | | (i) Is fair and equitable to all line-make dealers in this state; and320 |
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359 | 359 | | (ii) Does not unfairly discriminate among line-make dealers in its allocation process.321 |
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360 | 360 | | (B) This paragraph is not violated, however, if such failure is caused by acts or causes322 |
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361 | 361 | | the occurrence of temporary international, national, or regional product or services323 |
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362 | 362 | | shortages resulting from natural disaster; unavailability or scarcity of parts or service;324 |
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363 | 363 | | labor strikes; supply chain disruptions; product recalls; or other factors and events325 |
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364 | 364 | | beyond the control of the franchisor that temporarily reduce the supply of a franchisor326 |
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365 | 365 | | or if a state or federal law, rule, or regulation necessitates modification of the allocation.327 |
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366 | 366 | | (C) Nothing contained in this paragraph shall relieve a manufacturer, franchise or328 |
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367 | 367 | | distributor from its obligations under paragraph (9) of subsection (b) of Code329 |
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368 | 368 | | Section 10-1-661;"330 |
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369 | 369 | | "(20) To take any materially adverse action against a dealer, including a dealer's ability331 |
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370 | 370 | | to participate in or receive a benefit or payment owed from any incentive or332 |
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371 | 371 | | S. B. 81 |
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373 | 373 | | reimbursement program, based on criteria it has established, implemented, or enforced |
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374 | 374 | | 333 |
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375 | 375 | | for measuring the performance, including, but not limited to, sales or service334 |
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376 | 376 | | performance, of a dealer unless such criteria:335 |
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377 | 377 | | (A) Is fair, reasonable, and equitable; and336 |
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378 | 378 | | (B) Is based on accurate and relevant information; or |
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379 | 379 | | 337 |
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380 | 380 | | (21) To deny, delay payment for, restrict, or bill back a claim by a dealer for payment338 |
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381 | 381 | | or reimbursement for incentives, hold-backs, sales or service promotion or other special339 |
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382 | 382 | | program money, or any other amount owed to such dealer by the franchisor, if based340 |
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383 | 383 | | solely on the dealer's compliance with a specific program requirement of the franchisor341 |
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384 | 384 | | that would cause the dealer to violate a law or any properly promulgated rule or342 |
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385 | 385 | | regulation of this state; or343 |
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386 | 386 | | (22) To fail to provide to the dealer a written disclosure, which may be provided to a344 |
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387 | 387 | | potential consumer of a new motor vehicle, of each accessory or function of the motor345 |
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388 | 388 | | vehicle that may be initiated, updated, changed, or maintained by the manufacturer or346 |
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389 | 389 | | distributor through remote means, and the charge to the consumer for the initiation,347 |
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390 | 390 | | update, change, or maintenance that is known at the time of the transaction. A348 |
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391 | 391 | | manufacturer or distributor may comply with this paragraph by notifying the dealer that349 |
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392 | 392 | | the information is available on a public website or by other digital means."350 |
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393 | 393 | | SECTION 6.351 |
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394 | 394 | | Code Section 40-2-39 of the Official Code of Georgia Annotated, relating to registration and352 |
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395 | 395 | | licensing of new motor vehicle dealers, temporary site permits, administrative fines, and353 |
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396 | 396 | | penalty, is amended by revising paragraph (2) of subsection (b) as follows:354 |
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397 | 397 | | "(2)(A) It shall be unlawful for any person to engage in any activity as a new motor355 |
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398 | 398 | | vehicle dealer except at an established place of business which has been registered as356 |
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399 | 399 | | such under this Code section and Code Section 40-2-38 or at a temporary site.357 |
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400 | 400 | | S. B. 81 |
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402 | 402 | | (B) For purposes of this Code section, activity as a new motor vehicle dealer shall358 |
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403 | 403 | | include:359 |
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404 | 404 | | (i) Selling, leasing, offering to sell or lease, or negotiating binding terms with a retail360 |
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405 | 405 | | consumer for the purchase or lease of a new motor vehicle;361 |
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406 | 406 | | (ii) Soliciting, accepting, or receiving a deposit or other payment for the retail362 |
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407 | 407 | | purchase or lease of a new motor vehicle;363 |
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408 | 408 | | (iii) Soliciting, accepting, or processing a reservation from a retail consumer for a364 |
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409 | 409 | | specific motor vehicle; or365 |
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410 | 410 | | (iv) Soliciting, accepting, offering, or negotiating with a retail consumer a binding366 |
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411 | 411 | | value for a motor vehicle being traded in as part of the purchase or lease of a new367 |
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412 | 412 | | motor vehicle.368 |
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413 | 413 | | (C) For purposes of this Code section, activity as a new motor vehicle dealer shall not369 |
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414 | 414 | | include:370 |
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415 | 415 | | (i) Facilitating the receipt of a deposit or a payment under a retail installment sale371 |
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416 | 416 | | contract or lease on behalf of a dealer;372 |
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417 | 417 | | (ii) The disclosure of a manufacturer's suggested retail price;373 |
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418 | 418 | | (iii) The display of new motor vehicles for information or demonstration purposes374 |
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419 | 419 | | only;375 |
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420 | 420 | | (iv) The operation of a public website or other means of electronic communication376 |
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421 | 421 | | that identifies to a consumer any conditional prices or financing rates, available377 |
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422 | 422 | | financing sources, add-on product prices, or conditional trade-in values that are not378 |
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423 | 423 | | binding on a dealer;379 |
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424 | 424 | | (v) Sales, leasing, marketing, or advertising activities of manufacturers, franchisors,380 |
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425 | 425 | | and distributors by or through their line-make dealers in accordance with Article 22381 |
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426 | 426 | | of Chapter 1 of Title 10;382 |
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427 | 427 | | (vi) Facilitating a vehicle reservation system that allows a retail consumer to request383 |
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428 | 428 | | the opportunity to purchase or lease a new vehicle, when the vehicle becomes384 |
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429 | 429 | | S. B. 81 |
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