Virginia House Bill HB259

Virginia 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Report Pass: 1/27/22
• Engrossed: 2/1/22
• Refer: 2/3/22
• Report Pass: 2/17/22
• Enrolled: 2/24/22
• Chaptered: 4/27/22

Caption

Motor vehicle dealers and manufacturers; compensation for recall, warranty, and maintenance.

Impact

If enacted, HB259 will have a significant impact on the relationships between motor vehicle manufacturers, distributors, and dealers. It sets forth requirements that manufacturers and distributors cannot unilaterally impose burdensome conditions on dealers that could limit their ability to receive proper compensation. This regulation is expected to result in a more equitable business environment for dealers, enabling them to recoup costs associated with recall or warranty obligations effectively and fostering transparency in their operations.

Summary

House Bill 259 addresses the compensation framework for motor vehicle dealers in the Commonwealth of Virginia, particularly concerning recall, warranty, and maintenance services. The bill mandates that manufacturers and distributors establish clear written obligations for their dealers and ensure that dealers are adequately compensated for any warranty or recall work performed. The intention behind this legislation is to bolster dealer protections against potential inadequacies in compensation, thereby promoting fair practices in the automotive industry.

Sentiment

The sentiment surrounding this bill appears to be largely supportive among dealer associations and consumer advocacy groups, who view it as a necessary measure for protecting dealers' interests and enhancing consumer trust in automotive services. However, some manufacturers might view it as an additional regulatory burden that could complicate operational dynamics and affect profitability.

Contention

Notable points of contention include concerns from manufacturers about the potential rigidity in compensation structures and the complexities introduced by mandatory audits and accountability measures. Dealers have raised strong arguments for the bill, emphasizing that previous practices have often resulted in delayed or inadequate compensation for services rendered, particularly for recalls affecting vehicle safety.