Maryland 2022 Regular Session

Maryland Senate Bill SB615 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0615
6	6
7	7	SENATE BILL 615
8	8	R4 2lr0409
9	9	HB 659/21 – ECM CF HB 274
10	10	By: Senator Hough
11	11	Introduced and read first time: February 2, 2022
12	12	Assigned to: Judicial Proceedings
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Vehicle Laws – Manufacturers and Dealers – Prices Listed on Dealer Website 2
19	19
20	20	FOR the purpose of providing that a manufacturer, distributor, or factory branch may not 3
21	21	prohibit a dealer from listing on the dealer’s website a vehicle for sale or lease at the 4
22	22	purchase price, coerce or require a dealer to list a price on the dealer’s website that 5
23	23	is different from the purchase price, or take an adverse action against a dealer for 6
24	24	listing a particular price on the dealer’s website; and generally relating to 7
25	25	advertising for the sale or lease of vehicles. 8
26	26
27	27	BY repealing and reenacting, with amendments, 9
28	28	Article – Transportation 10
29	29	Section 15–207(a) and (h) 11
30	30	Annotated Code of Maryland 12
31	31	(2020 Replacement Volume and 2021 Supplement) 13
32	32
33	33	BY repealing and reenacting, without amendments, 14
34	34	Article – Transportation 15
35	35	Section 15–313(a) and (b) 16
36	36	Annotated Code of Maryland 17
37	37	(2020 Replacement Volume and 2021 Supplement) 18
38	38
39	39	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
40	40	That the Laws of Maryland read as follows: 20
41	41
42	42	Article – Transportation 21
43	43
44	44	15–207. 22
45	45
46	46	(a) (1) In this section the following words have the meanings indicated. 23
47	47
48	48	(2) (i) “Coerce” means to compel or attempt to compel by threat of harm, 24 2 SENATE BILL 615
49	49
50	50
51	51	breach of contract, or other adverse action or consequences, including the loss of any 1
52	52	incentive or other benefit made available to other dealers of the same line make in the 2
53	53	State. 3
54	54
55	55	(ii) “Coerce” includes to act in a manner that violates § 15–206.1 of 4
56	56	this subtitle. 5
57	57
58	58	(iii) “Coerce” does not include to argue, urge, recommend, or 6
59	59	persuade. 7
60	60
61	61	(3) “PURCHASE PRICE ” MEANS THE FULL DELIV ERED PRICE OF A 8
62	62	VEHICLE, EXCLUDING ONLY TAXES , TITLE FEES, AND ANY FREIGHT OR D EALER 9
63	63	PROCESSING CHARGE DI SCLOSED IN ACCORDANC E WITH § 15–311.1 OF THIS TITLE. 10
64	64
65	65	(4) “Require” means to impose upon a dealer a provision not required by 11
66	66	law or previously agreed to by a dealer in a franchise agreement, excluding business 12
67	67	decisions made to comply with the requirements of this title by a manufacturer, distributor, 13
68	68	or factory branch which are uniformly applied to all Maryland dealers in new vehicles of 14
69	69	the manufacturer, distributor, or factory branch. 15
70	70
71	71	(h) (1) (i) Any consumer rebates, dealer incentives, price or interest rate 16
72	72	reductions, or finance terms that a manufacturer, distributor, or factory branch offers or 17
73	73	advertises, or allows its dealers to offer or advertise, shall be offered to all dealers of the 18
74	74	same line make. 19
75	75
76	76	(ii) Any manufacturer, distributor, or factory branch that denies the 20
77	77	benefit of any consumer rebates, dealer incentives, price or interest rate reductions, or 21
78	78	finance terms to a dealer on the basis that the dealer failed to comply with performance 22
79	79	standards has the burden of proving that the performance standards comply with the 23
80	80	provisions of this section. 24
81	81
82	82	(2) Unless a dealer violates a State or local law intended to protect the 25
83	83	public, a manufacturer, distributor, or factory branch may not: 26
84	84
85	85	(i) Require a dealer to alter or replace an existing dealership 27
86	86	facility; or 28
87	87
88	88	(ii) Deny, or threaten to deny, any benefit generally available to all 29
89	89	dealers for a dealer’s failure to alter or replace an existing dealership facility. 30
90	90
91	91	(3) UNLESS A DEALER VIOLA TES § 15–313(A) OR (B) OF THIS TITLE 31
92	92	OR A STATE OR LOCAL LAW IN TENDED TO PROTECT THE PUBLIC , A MANUFACTURER , 32
93	93	DISTRIBUTOR, OR FACTORY BRANCH MA Y NOT: 33
94	94
95	95	(I) PROHIBIT A DEALER FRO M LISTING A VEHICLE FOR SALE 34
96	96	OR LEASE ON THE DEAL ER’S WEBSITE AT THE PURCHASE PRIC E; 35 SENATE BILL 615 3
97	97
98	98
99	99
100	100	(II) COERCE OR REQUIRE A D EALER TO LIST A PRIC E ON THE 1
101	101	DEALER’S WEBSITE THAT IS DIFF ERENT FROM THE PURCH ASE PRICE OF A VEHIC LE; 2
102	102	OR 3
103	103
104	104	(III) TAKE AN ADVERSE ACTIO N AGAINST A DEALER F OR LISTING 4
105	105	A VEHICLE FOR SALE A T A PARTICULAR PRICE ON THE DEALER ’S WEBSITE. 5
106	106
107	107	[(3)] (4) A manufacturer, distributor, or factory branch may not reduce 6
108	108	the price of a motor vehicle charged to a dealer or provide different financing terms to a 7
109	109	dealer in exchange for the dealer’s agreement to: 8
110	110
111	111	(i) Maintain an exclusive sales or service facility; 9
112	112
113	113	(ii) Build or alter a sales or service facility; or 10
114	114
115	115	(iii) Participate in a floor plan or other financing arrangement. 11
116	116
117	117	(5) NOTHING IN THIS SUBSE CTION PROHIBITS A MA NUFACTURER , 12
118	118	DISTRIBUTOR, OR FACTORY BRANCH FR OM REQUIRING ALL DEA LERS TO INCLUDE 13
119	119	FREIGHT OR DEALER PR OCESSING CHARGES IN THE PRICES LISTED ON A D EALER’S 14
120	120	WEBSITE. 15
121	121
122	122	15–313. 16
123	123
124	124	(a) A dealer or an agent or employee of a dealer may not use any advertisement 17
125	125	that is in any way false, deceptive, or misleading. 18
126	126
127	127	(b) A dealer or an agent or employee of a dealer may not by any means advertise 19
128	128	or offer to the public any vehicle without intent to sell it as advertised or offered. 20
129	129
130	130	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
131	131	October 1, 2022. 22
132	132
133	133