EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb1003*
SENATE BILL 1003
R4 4lr2956
CF HB 1273
By: Senator Folden
Introduced and read first time: February 2, 2024
Assigned to: Judicial Proceedings
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 29, 2024
CHAPTER ______
AN ACT concerning 1
Vehicle Laws – Manufacturers and Dealers – Delivery of Vehicles 2
FOR the purpose of establishing that certain requirements for motor vehicle 3
manufacturers, distributors, and factory branches to deliver new motor vehicles to 4
licensed dealers apply after submission receipt of an electronic order or acceptance 5
of an allocation; and generally relating to motor vehicle manufacturers and dealers. 6
BY repealing and reenacting, with amendments, 7
Article – Transportation 8
Section 15–208 9
Annotated Code of Maryland 10
(2020 Replacement Volume and 2023 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Transportation 14
15–208. 15
(a) A manufacturer may not refuse to deliver new motor vehicles, new two–stage 16
vehicles, or truck component parts, as the case may be, to a licensed dealer or distributor, 17
in reasonable quantities and within a reasonable time after [receipt of a written OR 18
ELECTRONIC order] SUBMISSION OF AN ORD ER OR ACCEPTANCE OF AN ALLOCATION , 19
if: 20 2 SENATE BILL 1003
(1) The manufacturer specifically advertises that these vehicles or truck 1
component parts are available for immediate delivery; and 2
(2) The dealer or distributor has a franchise or other contract with the 3
manufacturer for the sale of these vehicles or truck component parts to the public. 4
(b) A distributor may not refuse to deliver new motor vehicles, or new two–stage 5
vehicles, as the case may be, to a licensed dealer, in reasonable quantities and within a 6
reasonable time after [receipt of a written OR ELECTRONIC order] SUBMISSION OF AN 7
ORDER OR ACCEPTANCE OF AN ALL OCATION, if: 8
(1) The distributor specifically advertises that these vehicles are available 9
for immediate delivery; and 10
(2) The dealer has a franchise or other contract with the distributor for the 11
sale of these vehicles to the public. 12
(c) A factory branch may not refuse to deliver new motor vehicles, or new 13
two–stage vehicles, as the case may be, to a licensed dealer, in reasonable quantities and 14
within a reasonable time after [receipt of a written OR ELECTRONIC order] SUBMISSION 15
OF AN ORDER OR ACCEPTANCE OF AN ALL OCATION, if: 16
(1) The factory branch specifically advertises that these vehicles are 17
available for immediate delivery; and 18
(2) The dealer has a franchise or other contract with the factory branch for 19
the sale of these vehicles to the public. 20
(d) A failure to deliver vehicles because of a labor strike, government regulation, 21
or other cause not the fault of the manufacturer, distributor, or factory branch is not a 22
violation of this section. 23
(e) If a dealer has a franchise or other contract with a manufacturer, distributor, 24
or factory branch for the sale of vehicles or truck component parts of a specific line or make, 25
the manufacturer, distributor, or factory branch shall allow the dealer to: 26
(1) Purchase the vehicles or truck component parts at the same price and 27
on the same terms as all other dealers with a franchise or other contract for the sale of 28
vehicles or truck component parts of the same line or make; and 29
(2) Receive the same right to incentive payments that is given to all other 30
dealers with a franchise or other contract for the sale of vehicles or truck component parts 31
of the same line or make. 32
SENATE BILL 1003 3
(f) (1) Any system operated by a manufacturer, distributor, or factory branch 1
or its affiliate for the allocation of new vehicles to dealers shall be reasonable and fair for 2
all dealers. 3
(2) On the written request by any of its dealers, a manufacturer, 4
distributor, or factory branch or its affiliate shall disclose to the dealer the method by which 5
new vehicles are allocated to dealers of the same line make. 6
(3) In any dispute over compliance with this subsection, a manufacturer, 7
distributor, or factory branch or its affiliate has the burden of proving its compliance. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
October 1, 2024. 10
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.