EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0886*
SENATE BILL 886
R4 2lr2714
CF HB 931
By: Senator Lee
Introduced and read first time: February 7, 2022
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Vehicle Laws – Manufacturers and Dealers – Incentives 2
FOR the purpose of requiring an affiliate of a vehicle manufacturer, distributor, or factory 3
branch to offer certain incentives to all dealers of the same line make under certain 4
circumstances; requiring a vehicle manufacturer, distributor, or factory branch or its 5
affiliate to offer certain incentives to all purchasers of vehicles of the same line make 6
under certain circumstances; establishing that an affiliate that denies certain 7
incentives to a dealer under certain circumstances is subject to a certain burden of 8
proof; requiring that any system operated by a vehicle manufacturer, distributor, or 9
factory branch or its affiliate for allocating new vehicles to dealers be reasonable and 10
fair; and generally relating to vehicle manufacturers and dealers. 11
BY repealing and reenacting, with amendments, 12
Article – Transportation 13
Section 15–207(h)(1) 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2021 Supplement) 16
BY adding to 17
Article – Transportation 18
Section 15–208(f) 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2021 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Transportation 24
15–207. 25
2 SENATE BILL 886
(h) (1) (i) Any consumer rebates, dealer incentives, price or interest rate 1
reductions, or finance terms that a manufacturer, distributor, or factory branch OR ITS 2
AFFILIATE offers or advertises, or allows its dealers to offer or advertise, shall be offered 3
to all dealers, AND ALL PURCHASERS O F VEHICLES, of the same line make. 4
(ii) Any manufacturer, distributor, or factory branch OR ITS 5
AFFILIATE that denies the benefit of any consumer rebates, dealer incentives, price or 6
interest rate reductions, or finance terms to a dealer on the basis that the dealer failed to 7
comply with performance standards has the burden of proving that the performance 8
standards comply with the provisions of this section. 9
15–208. 10
(F) (1) ANY SYSTEM OPERATED B Y A MANUFACTURER , DISTRIBUTOR, OR 11
FACTORY BRANCH OR IT S AFFILIATE FOR THE ALLOCATION OF NEW VE HICLES TO 12
DEALERS SHALL BE REA SONABLE AND FAIR FOR ALL DEALERS. 13
(2) ON THE WRITTEN REQUES T BY ANY OF ITS DEAL ERS, A 14
MANUFACTURER , DISTRIBUTOR, OR FACTORY BRANCH OR ITS AFFILIATE SHA LL 15
DISCLOSE TO THE DEAL ER THE METHOD BY WHI CH NEW VEHICLES ARE ALLOCATED 16
TO DEALERS OF THE SA ME LINE MAKE. 17
(3) IN ANY DISPUTE OVER C OMPLIANCE WITH THIS SUBSECTION, A 18
MANUFACTURER , DISTRIBUTOR, OR FACTORY BRANCH OR ITS AFFILIATE HAS THE 19
BURDEN OF PROVING IT S COMPLIANCE . 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
October 1, 2022. 22