Franchise auto dealers; license; manufacturers; vehicle distribution; facilities; purchase of terminated franchise procedures; effective date.
Impact
The legislation aims to create a more transparent and equitable framework for the relationship between auto manufacturers and their dealers. It mandates fair compensation for dealers when their franchise is terminated, including the value of their inventory and other investments made in the dealership. Significant provisions include establishing fair market value for dealership facilities and setting out clear processes for appraisals and disputes between manufacturers and dealers. This regulatory change seeks to enhance protections for dealers while maintaining their accountability to franchise agreements.
Summary
House Bill 3104 modifies regulations affecting franchise auto dealers in Oklahoma, particularly focusing on the rights and liabilities of both manufacturers and dealers. The bill stipulates that the Oklahoma New Motor Vehicle Commission can deny, revoke, or suspend licenses for dealers based on criteria such as unfitness, misstatements in applications, and various violations related to dealership conduct. It also emphasizes that manufacturers must provide just cause and follow specific notice requirements before terminating, canceling, or not renewing a dealer franchise.
Sentiment
The sentiment surrounding HB 3104 is predominantly supportive among dealer associations and advocates for consumer rights, who see it as a step toward balancing the power dynamics in the dealer-manufacturer relationship. However, there are concerns from some manufacturers regarding potential hindrances to operational flexibility and the imposition of additional burdens in the deal-making process. Overall, the discussion reflects a significant interest in fostering fairness and reducing conflicts in the dealer franchise system.
Contention
Notable points of contention include the financial implications for manufacturers, who may be required to offer more robust compensation structures when terminating franchises. Discussions have highlighted the complexities involved in valuing dealership assets fairly and the potential for extended disputes over franchise terminations. Critics argue that the new regulations might lead to unintended consequences, such as discouraging manufacturers from expanding their dealer networks or reducing the overall number of dealerships due to the increased burden of compliance and compensation requirements.
Motor vehicles; prohibiting manufacturer from denying a claim or implementing chargeback against auto dealer for failure of purchaser of new car to comply with title and registration law. Effective date.
Motor vehicle dealers; modifying definition; requiring certain records of allocation and distribution be maintained for three years; modifying disclosure requirements. Effective date.
Motor vehicles; regulation; New Motor Vehicle Commission; approval of form; licensure; application; fees; certificates of registration; franchise; new vehicle dealers; effective date.