Oklahoma 2025 Regular Session

Oklahoma House Bill HB2158 Compare Versions

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33	28		ENGROSSED HOUSE
34	29		BILL NO. 2158 By: Dobrinski of the House
35	30
36	31		and
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38	33		Gollihare of the Senate
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43	38		An Act relating to motor vehicles; amending 47 O.S.
44	39		2021, Section 562, as last amended by Section 2,
45	40		Chapter 240, O.S.L. 2024 (47 O.S. Supp. 2024, Section
46	41		562), which relates to definitions; modifying
47	42		definitions; defining terms; amending 47 O.S. 2021,
48	43		Section 564, as last amended by Section 4, Chapter
49	44		240, O.S.L. 2024 (47 O.S. Supp. 2024, Section 564),
50	45		which relates to licenses; modifying list of entities
51	46		requiring licensure; deleting certain exception;
52	47		prohibiting factories from engaging in activities of
53	48		a dealer; amending Section 1, Chapter 29, O.S.L. 2023
54	49		(47 O.S. Supp. 2024, Section 564.3), which relates to
55	50		dealer management system providers; modifying
56	51		definition; requiring certain commercially reasonable
57	52		data security standards; modifying entities not
58	53		liable for certain actions; modifying entities
59	54		required to provide certain indemnification;
60	55		prohibiting certain actions by certain entities;
61	56		providing meaning for certain term; authorizing
62	57		certain charges; amending 47 O.S. 2021, Section 565,
63	58		as last amended by Section 7, Chapter 240, O.S.L.
64	59		2024 (47 O.S. Supp. 2024, Section 565), which relates
65	60		to the denial, revocation, or suspension of license;
66	61		modifying reasons for which a license may be denied,
67	62		revoked, or suspended; requiring certain factory
68	63		compliance; modifying certain factory compliance;
69	64		removing language requiring certain dealer
70	65		compliance; and providing an effective date.
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75	68		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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103	69		SECTION 1. AMENDATORY 47 O.S. 2021, Section 562, as last
104	70		amended by Section 2, Chapter 240, O.S.L. 2024 (47 O.S. Supp. 2024,
105	71		Section 562), is amended to read as follows:
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106	98		Section 562. The following words, t erms, and phrases, when used
107	99		in Sections 561 through 567, 572, 578.1, 579, and 579.1 of this
108	100		title, shall have the meanings respectively ascribed to them in this
109	101		section, except where the context clearly indicates a differe nt
110	102		meaning:
111	103		1. "Motor vehicle" m eans any motor-driven vehicle required to
112	104		be registered under the Oklahoma Vehicle License and Registration
113	105		Act. The term motor vehicle does not include:
114	106		a. recreational vehicles, as defined in the Recreational
115	107		Vehicle Franchise Act, or
116	108		b. powersport vehicles;
117	109		2. "New motor vehicle dealer" means any person, firm,
118	110		association, corporation, or trust not excluded by this paragraph
119	111		who sells, offers for sale, advertises to sell, receives deposits
120	112		for vehicles, leases, or displays new motor vehicles and holds a
121	113		bona fide contract or franchise in effect with a manufacturer or
122	114		distributor authorized by the manufacturer to make predelivery
123	115		preparation of such vehicles sold to purchasers and to perform post -
124	116		sale work pursuant to the manufacturer's or distributor's warranty.
125	117		As used herein, "authorized predelivery preparation" means the
126	118		rendition by the dealer of services and safety adjustments on each
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154	119		new motor vehicle in accordance with the procedure and safety
155	120		standards required b y the manufacturer of the vehicle to be made
156	121		before its delivery to the purchaser. "Performance of authorized
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157	148		post-sale work pursuant to the warranty", as used herein, means the
158	149		rendition of services which are required by the terms of the
159	150		warranty that stands extended to the vehicle at t he time of its sale
160	151		and are to be made in accordance with the safety standards
161	152		prescribed by the manufacturer. The term includes premises or
162	153		facilities at which a person engages only in the repair of motor
163	154		vehicles if repairs are performed pursuant to the terms of a
164	155		franchise and motor vehicle manufacturer's warranty. For the
165	156		purpose of Sections 561 through 567, 572, 578.1, 579, and 579.1 of
166	157		this title, the terms new motor vehicle dealer and "new motor
167	158		vehicle dealership" shall be synonymous. The term ne w motor vehicle
168	159		dealer does not include:
169	160		a. receivers, trustees, administrators, executors,
170	161		guardians, or other persons appointed by or acting
171	162		under judgment or order of any court,
172	163		b. public officers while performing or in operation of
173	164		their duties,
174	165		c. employees of persons, corporations, or associations
175	166		enumerated in subparagraph a of this paragraph when
176	167		engaged in the specific performance of their duties as
177	168		such employees, or
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205	169		d. a powersports vehicle dealer;
206	170		3. "Motor vehicle salesperson" means any person , resident or
207	171		nonresident, who, for gain or compensation of any kind, either
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208	198		directly or indirectly, regularly or occasionally, by any form of
209	199		agreement or arrangement, sells or negotiates for the sale, lease,
210	200		or conveyance or arranges the financing of any new motor vehicle or
211	201		powersports vehicle as an employee for any new motor vehicle dealer
212	202		or powersports dealer to any one or more third parties;
213	203		4. "Commission" means the Oklahoma New Motor Vehicle
214	204		Commission;
215	205		5. "Manufacturer" means any person, firm, a ssociation,
216	206		corporation, or partnership, trust, joint venture, or common entity
217	207		thereof, resident or nonresident, that manufactures or assembles new
218	208		and unused motor vehicles or new and unused powersport vehicles or
219	209		that engages in the fabrication or assem bly of motorized vehicles of
220	210		a type required to be registered in this state;
221	211		6. "Distributor" means any person, firm, association,
222	212		corporation, or partnership, trust, joint venture, or common entity
223	213		thereof, resident or nonresident, that, being authorized by the
224	214		original manufacturer, in whole or in part sells or distributes new
225	215		and unused motor vehicles to new motor vehicle dealers or powersport
226	216		dealers, or that maintains distributor representatives;
227	217		7. "Factory branch" m eans any branch office maintained by a
228	218		person, firm, association, corporation, or partnership, trust, joint
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256	219		venture, or common entity thereof that manufactures or assembles
257	220		motor vehicles or powersport vehicles for the sale of motor vehicles
258	221		or powersport vehicles to distributors, or for the sale of motor
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259	248		vehicles to new motor vehicle dealers, or for the sale of powersport
260	249		vehicles to new powersport vehicle dealers, or for directing or
261	250		supervising, in whole or in part, its representatives;
262	251		8. "Distributor branch" means any branch office s imilarly
263	252		maintained by a distributor for the same purposes a factory branch
264	253		is maintained;
265	254		9. "Factory representative" means any officer or agent engaged
266	255		as a representative of a manufacturer of motor vehicles or
267	256		powersport vehicles or by a factory branch , for the purpose of
268	257		making or promoting the sale of its motor vehicles or powersport
269	258		vehicles, or for supervising or contacting its dealers or
270	259		prospective dealers;
271	260		10. "Distributor representative" means any person, firm,
272	261		association, corporation, or partnership, trust, joint venture, or
273	262		common entity thereof, and each officer and employee thereof engaged
274	263		as a representative of a distributor or distributor branch of motor
275	264		vehicles or powersport vehicles, for the purpose of making or
276	265		promoting the sale of i ts motor vehicles or powersport vehicles, or
277	266		for supervising or contacting its dealers or prospective dealers;
278	267		11. "Franchise" means any contract or agreement between a new
279	268		motor vehicle dealer or a powersports vehicle dea ler and a
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307	269		manufacturer of a new m otor vehicle or powersports vehicle or its
308	270		distributor or factory branch by which the new motor vehicle dealer
309	271		or new powersports vehicle dealer is authorized to engage in the
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310	298		activities of a new motor vehicle dealer or new powersports vehicle
311	299		dealer as defined by this section;
312	300		12. "New or unused motor vehicle" means a vehicle which is in
313	301		the possession of the manufacturer or distributor or has been sold
314	302		only to the holder of a valid franchise granted by the manufacturer
315	303		or distributor for the sale of that make of new vehicle so long as
316	304		the manufacturer's statement of origin has not been assigned to
317	305		anyone other than a licensed franchised new motor vehicle dealer of
318	306		the same line-make;
319	307		13. "Area of responsibility" means the geographical area, as
320	308		designated by the manufacturer, factory branch, factory
321	309		representative, distributor, distributor branch, or distributor
322	310		representative, in which the new motor vehicle dealer or powersports
323	311		dealer is held responsible for the promotion and development of
324	312		sales and rendering of service for the make of motor vehicle or
325	313		powersports vehicle for which the new motor vehicle dealer or new
326	314		powersports vehicle dealer holds a franchise or selling agreement;
327	315		14. "Off premises" means at a location other than the address
328	316		designated on the new motor vehicle dealer's or new powersports
329	317		vehicle dealer's license;
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357	318		15. "Sponsoring entity" means any person, firm, association,
358	319		corporation, or trust which has control, either permanently or
359	320		temporarily, over the real property upon which the off-premises sale
360	321		or display is conducted;
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361	348		16. "Product" means new motor vehicles and new motor vehicle
362	349		parts or new powersports vehicle and new powersports vehicle parts;
363	350		17. "Service" means motor vehicle or powersports vehicle
364	351		warranty repairs includi ng both parts and labor;
365	352		18. "Lead" means a consumer contact in response to a factory
366	353		program designed to generate interest in purchasing or leasing a new
367	354		motor vehicle or new powersports vehicle;
368	355		19. "Sell" or "sale" mea ns to sell or lease;
369	356		20. "Factory" means a manufacturer, distributor, factory
370	357		branch, distributor branch ,; or any common entity of a manufacturer,
371	358		distributor, factory branch or distributor branch; or factory
372	359		representative, or distributor representative, which manufactures or
373	360		distributes vehicle products;
374	361		21. "Powersports vehicle" means any new or unused motorcycles,
375	362		scooters, mopeds, all -terrain vehicles, and utility vehicles
376	363		required to be registered under the Oklahoma Vehicle License and
377	364		Registration Act, with the exception of all -terrain vehicles,
378	365		utility vehicles, and motorcycles used exclusively for off -road use
379	366		which are sold by a retail implement dealer;
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407	367		22. "Powersports vehicle dealer" means any person, firm, or
408	368		corporation, resident or nonresident, that is in the business of
409	369		selling any new powersports vehicles except for retail implement
410	370		dealers;
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411	397		23. "Retail implement dealer" means a business engaged
412	398		primarily in the sale of farm tractors as defined in Section 1 -118
413	399		of this title or implements of husbandry as defined in Secti on 1-125
414	400		of this title or a combination thereof and is exempt from licensing
415	401		by the Commission for the sale of all -terrain vehicles, utility
416	402		vehicles, and motorcycles used exclusively for off -road use;
417	403		24. "Consumer data" means nonpublic personal informat ion as
418	404		defined in 15 U.S.C., Section 6809(4) as it existed on January 1,
419	405		2023, that is:
420	406		a. collected by a new motor vehicle dealer, and
421	407		b. provided by the new motor vehicle dealer directly to a
422	408		manufacturer or third party a cting on behalf of a
423	409		manufacturer.
424	410		The term shall not include the same or similar data obtained by
425	411		a manufacturer from any source other than the new motor vehicle
426	412		dealer or new motor vehicle dealer's data management system; and
427	413		25. "Fleet vehicle" means a new motor vehicle sold and title d
428	414		or registered to a business and used for business purposes only ; and
429	415		26. a. "Common entity" means any person, firm, association,
430	416		corporation, partnership, trust, or joint venture
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458	417		acting as a new motor vehicle dealer as de fined by
459	418		paragraph 20 of this sec tion:
460	419		(1) which is directly or indirectly controlled by or
461	420		has more than thirty percent (30%) of its equity
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462	447		interest directly or indirectly owned,
463	448		beneficially or of record, through any form of
464	449		ownership structure, by a factory, manufacturer;
465	450		manufacturer branch; distributor; or distributor
466	451		branch, or
467	452		(2) which has more than thirty percent (30%) of its
468	453		equity interest directly or indirectly controlled
469	454		or owned, beneficially or of record, through any
470	455		form of ownership structu re, by one or more
471	456		persons who also directly or indirectly control
472	457		or own, beneficially or of record, more than
473	458		thirty percent (30%) of the equity interests of a
474	459		factory, manufacturer; manufacturer branch;
475	460		distributor; or distributor branch.
476	461		b. Notwithstanding subdivision (1) or (2) of su bparagraph
477	462		a of this paragraph, an entity that would otherwise be
478	463		considered a common entity of a distributor under
479	464		subdivision (1) or (2) of subparagraph a of this
480	465		paragraph because of its relation to a distributor is
481	466		not considered a common entity of tha t distributor if:
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509	467		(1) the distributor to which the entity is related
510	468		was a licensed distributor on March 1, 2025,
511	469		(2) the entity is not a common entity of a
512	470		manufacturer or an importer, and
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513	497		(3) the distributor to which the entity is related is
514	498		not, and has never been, a common entity of a
515	499		manufacturer or an importer .
516	500		SECTION 2. AMENDATORY 47 O.S. 2021, Section 564, as last
517	501		amended by Section 4, Chapter 240, O.S.L. 2024 (47 O.S. Supp. 2024,
518	502		Section 564), is amended to read as follow s:
519	503		Section 564. A. It shall be unlawful for any person, firm,
520	504		association, corporation, or partnership, trust, joint venture, or
521	505		common entity thereof, to engage in business as, or serve in the
522	506		capacity of, or act as a new motor vehicle dealer, powerspor ts
523	507		dealer, or manufacturer or distributor of new motor vehicles or
524	508		powersports vehicles, or factory branch, distributor branch or
525	509		factory representative or distributor representative, as defined in
526	510		Section 562 of this title , in this state without first obt aining a
527	511		license therefor as provided for by law. Any person, firm,
528	512		association, corporation, or partnership, trust, joint venture, or
529	513		common entity thereof, engaging in more than one of such capacities
530	514		or having more than one place where such business is carried on or
531	515		conducted in this state shall be required to obtain and hold a
532	516		current license for each thereof. Provided that, a new motor
533		-
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535		-	(Bold face denotes Committee Amendments) 1
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560	517		vehicle dealer's license shall authorize one person to sell in the
561	518		event such person shall be the owner of a proprie torship, or the
562	519		person designated as principal in the dealer's franchise or the
563	520		managing officer or one partner if no principal person is named in
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564	547		the franchise. It is further provided that a factory or an entity
565	548		affiliated by any ownership or control by the factory shall not be
566	549		permitted to engage in the activities of a dealer as defined in
567	550		paragraph 2 of Section 562 of this title or to be licensed as a new
568	551		motor vehicle dealer in this state, except as provided by
569	552		subparagraph b of paragraph 12 of Section 565 of this title.
570	553		B. Applications for licenses required to be obtained under the
571	554		provisions of Section 561 et seq. of this title shall be verified by
572	555		the oath or affirmation of the applicant and shall be on forms
573	556		prescribed by the Oklahoma New Motor Veh icle Commission and
574	557		furnished to the applicants, and shall contain information as the
575	558		Commission deems necessary to enable it to fully determine the
576	559		qualifications and eligibility of the several applicants to receive
577	560		the license or licenses applied for. T he Commission shall require
578	561		in such application, or otherwise, information relating to the
579	562		applicant's current financial standing, the applicant's business
580	563		integrity, whether the applicant has an established place of
581	564		business and is primarily engaged in th e pursuit, avocation, or
582	565		business for which a license, or licenses, are applied for, and
583	566		whether the applicant is able to properly conduct the business for
584		-
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611	567		which a license, or licenses, are applied for, and such other
612	568		pertinent information consistent with the safeguarding of the public
613	569		interest and the public welfare. All applications for license or
614	570		licenses shall be accompanied by the appropriate fee or fees
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615	597		therefor in accordance with the schedule thereof hereinafter set
616	598		out. In the event any applicatio n is denied and the license applied
617	599		for is not issued, the entire license fee shall be returned to the
618	600		applicant. All licenses issued under the provisions of Section 561
619	601		et seq. of this title shall expire on June 30, follo wing the date of
620	602		issue and shall be nontransferable. All applications for renewal of
621	603		a license for a new motor vehicle dealer, powersports dealer,
622	604		manufacturer, distributor, or manufacturer's or distributor's
623	605		representative shall be submitted by June 1 of each year, and such
624	606		license or licenses will be issued by July 1. If applications have
625	607		not been made for renewal of licenses at the times described in this
626	608		subsection, it shall be illegal for any person to represent himself
627	609		or herself and act as a dealer , manufacturer, distributor, or
628	610		manufacturer's or distributor's representative. Service Oklahoma
629	611		and licensed operators will be notified not to accept such dealers'
630	612		titles until such time as licenses have been issued by the
631	613		Commission.
632	614		C. The schedule of license fees to be charged and r eceived by
633	615		the Commission for the licenses issued hereunder shall be as
634	616		follows:
635		-
636		-	SENATE FLOOR VERSION - HB2158 SFLR Page 13
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662	617		1. For each factory branch or distributor branch, Four Hundred
663	618		Dollars ($400.00) initial fee with annual renewal fee of Three
664	619		Hundred Dollars ($300.00);
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665	646		2. For each manufact urer or distributor of new motor vehicles
666	647		or new powersport vehicles, Four Hundred Dollars ($400.00) initial
667	648		fee with annual renewal fee of Three Hundred Dollars ($300.00);
668	649		3. For each factory representative or distributor
669	650		representative, One Hundred Doll ars ($100.00) annually;
670	651		4. For each new motor vehicle dealer, except powersports
671	652		vehicle dealers, initial fee of Three Hundred Dollars ($300.00) per
672	653		franchise sold at each location licensed, with an annual renewal fee
673	654		of One Hundred Dollars ($100.00) per franchise sold at each location
674	655		licensed per year; and
675	656		5. For each powersports vehicle dealer, initial fee of Three
676	657		Hundred Dollars ($300.00) per manufacturer represented by the dealer
677	658		at each location licensed, with an annual renewal fee of One Hundred
678	659		Dollars ($100.00) per manufacturer represented by the dealer at each
679	660		location licensed per year.
680	661		D. The licenses issued to each new motor vehicle dealer, new
681	662		powersports vehicle dealer, manufacturer, distributor, factory
682	663		branch, or distributor branch shall specify the location of the
683	664		factory, office, or branch thereof. In case such location is
684	665		changed, the Commission may endorse the change of location on the
685	666		license without charge unless the change of address triggers a
686		-
687		-	SENATE FLOOR VERSION - HB2158 SFLR Page 14
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713	667		relocation of a new motor vehicle de aler or new powersports vehicle
714	668		dealer pursuant to the provisions of Section 578.1 of this title.
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715	695		The licenses of each new vehicle dealer shall be posted in a
716	696		conspicuous place in the dealer's place or places of business.
717	697		Every motor vehicle factory repre sentative or distributor
718	698		representative shall physically possess the license when engaged in
719	699		business and shall display such upon request. The name of the
720	700		employer of such factory representative or distributor
721	701		representative shall be stated on the license .
722	702		E. The new powersports dealer license shall only allow the sale
723	703		of the specific types of powersports vehicles authorized by the
724	704		manufacturer and agreed to by the powersports dealer.
725	705		SECTION 3. AMENDATORY Section 1, Chapter 29, O.S.L. 2023
726	706		(47 O.S. Supp. 2024, Section 564.3), is amended to read as follows:
727	707		Section 564.3. A. As used in this section:
728	708		1. "Access fee" means a requirement to pay money for access to
729	709		protected dealer data that is in addition to an amount specified in
730	710		a written and executed contract for goods and services ;
731	711		2. "Authorized integrator" means a person who a dealer has a
732	712		contractual relationship with or the dealer otherwise gives express
733	713		written authorization to have access to protected dealer data stored
734	714		on a dealer data system or to write protected dealer data to the
735	715		dealer data system for the purpose of performing a specific function
736	716		for the dealer;
737	717
738		-	SENATE FLOOR VERSION - HB2158 SFLR Page 15
739		-	(Bold face denotes Committee Amendments) 1
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740	719		2
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763	742
764	743		3. "Dealer data system" means software, hardware, or firmware
765	744		that a dealer leases or rents from a dealer management system
766	745		provider for the purpose of storing protected dealer data;
767	746		4. "Dealer management system provider" means a person who, for
768	747		compensation, maintains and provides access to a dealer data system
769	748		in which a dealer stores protected dealer data ;
770	749		5. "Protected dealer data" means:
771	750		a. consumer data that a dealer generated or that the
772	751		consumer provided to the dealer that is not otherwise
773	752		publicly available and the consumer has not otherwise
774	753		provided consent or acknowledgment to share the
775	754		information, and
776	755		b. any other dealer data in connection with the dealer's
777	756		daily business operations in which a dealer has rights
778	757		in a dealer data system; and
779	758		6. Authorized integrator and dealer management system provider
780	759		do not include:
781	760		a. a manufacturer, distribut or, importer, factory or any
782	761		entity that is a subsidiary or affiliate of, or acts
783	762		on behalf of, a manufacturer, distributor, or importer
784	763		factory, including any subsidiary or affiliate of a
785	764		factory, or
786	765
787		-	SENATE FLOOR VERSION - HB2158 SFLR Page 16
788		-	(Bold face denotes Committee Amendments) 1
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789	767		2
790	768		3
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812	790
813	791		b. a governmental body or other person that is acting i n
814	792		accordance with federal, state, or local law, or a
815	793		valid court order.
816	794		B. A dealer management system provider may:
817	795		1. Condition access and ability of a dealer or authorized
818	796		integrator to receive, share, copy, use, write, or transmit
819	797		protected dealer dat a from or to a dealer data system on the
820	798		dealer's or authorized integrator's compliance with commercially
821	799		reasonable data security standards;
822	800		2. Require an authorized integrator to have express written
823	801		authorization from a dealer before allowing the autho rized
824	802		integrator to gain access to, receive, share, copy, use, or transmit
825	803		protected dealer data; and
826	804		3. Deny access to a dealer data system to a dealer if the
827	805		dealer fails to pay an amount due to the dealer management sys tem
828	806		provider under a lease, contr act, or other agreement concerning the
829	807		dealer's access to or use of the dealer data system.
830	808		C. Except as provided in subsection B of this section, a dealer
831	809		management system provider shall not take any action that would
832	810		limit or prohibit the ability of a dealer or an authorized
833	811		integrator to receive, protect, store, copy, share, or use protected
834	812		dealer data using means that include, but are not limited to:
835	813		1. Imposing an access fee on a dealer or authorized integrator;
836	814		and
837	815
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839		-	(Bold face denotes Committee Amendments) 1
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840	817		2
841	818		3
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863	840
864	841		2. Restricting a dealer or an a uthorized integrator from
865	842		sharing protected dealer data or writing data or having access to a
866	843		dealer data system. Prohibited restrictions pursuant to this
867	844		paragraph include, but are not limited to:
868	845		a. limits on the scope or nature of protected dealer data
869	846		to which a dealer or authorized integrator has access
870	847		or may share or write to a dealer data system, and
871	848		b. a requirement for a dealer or authorized integrator to
872	849		provide sensitive or confidential business information
873	850		or information that a dealer or autho rized integrator
874	851		uses for competitive purposes in return for access to
875	852		protected dealer data or an authorization to share or
876	853		write protected dealer data to a dealer data system.
877	854		D. Except as otherwise provided in this section, any term or
878	855		condition of a contract with a dealer management system provider
879	856		that conflicts with the requirements set forth in subsection C of
880	857		this section is void and unenforceable to the extent of the
881	858		conflict.
882	859		E. An authorized integrator shall:
883	860		1. Obtain express written authoriz ation from a dealer before
884	861		gaining access to, receiving, sharing, copying, using, writing, or
885	862		transmitting protected dealer data;
886	863
887		-	SENATE FLOOR VERSION - HB2158 SFLR Page 18
888		-	(Bold face denotes Committee Amendments) 1
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889	865		2
890	866		3
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912	888
913	889		2. Comply with security standards in gaining access to,
914	890		receiving, sharing, copying, using, writing, or transmitting
915	891		protected dealer data; and
916	892		3. Allow a dealer to withdraw, revoke, or amend any express
917	893		written authorization the dealer provides under paragraph 1 of this
918	894		subsection:
919	895		a. at the sole discretion of the dealer, if the dealer
920	896		gives a thirty-day prior notice to an aut horized
921	897		integrator, or
922	898		b. immediately, for good cause.
923	899		F. 1. This section does not prevent a dealer, a dealer
924	900		management system provider, or an authorized integrator from
925	901		discharging the obligations of a dealer, dealer management system
926	902		provider, or of an authorized integrator under federal, state, or
927	903		local law to secure and prevent unauthorized access to protected
928	904		dealer data, or from limiting the scope of the obligations, in
929	905		accordance with federal, state, or local law.
930	906		2. A dealer management system pr ovider is not liable for any
931	907		action that a dealer takes directly with respect to securing or
932	908		preventing unauthorized access to protected dealer data, or for
933	909		actions that an authorized integrator takes in appropriately
934	910		following the written instructions of the dealer for securing or
935	911		preventing unauthorized access to protected dealer data, to the
936	912		extent that the actions prevent the dealer management system
937	913
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963	938
964	939		provider from meeting a legal obligation to secure or prevent
965	940		unauthorized access to protected dealer da ta.
966	941		3. A dealer is not liable for any action that an authorized
967	942		integrator takes directly with respect to securing or preventing
968	943		unauthorized access to protected dealer data, or for actions that
969	944		the authorized integrator takes in appropriately following t he
970	945		written instructions of the dealer for securing or preventing
971	946		unauthorized access to protected dealer data, to the extent that the
972	947		actions prevent the dealer from meeting a legal obligation to secure
973	948		or prevent unauthori zed access to protected dealer da ta.
974	949		4. An authorized integrator is not liable for any action that a
975	950		dealer takes directly with respect to securing or preventing
976	951		unauthorized access to protected dealer data, or for actions that
977	952		the dealer takes in appropriately following the written inst ructions
978	953		of the authorized integrator for securing or preventing unauthorized
979	954		access to protected dealer data, to the extent that the actions
980	955		prevent the authorized integrator from meeting a legal obligation to
981	956		secure or prevent unauthorized access to prot ected dealer data.
982	957		5. A manufacturer, distributor, importer, factory or any entity
983	958		that is a subsidiary or affiliate of, or acts on behalf of, a
984	959		manufacturer, distributor, or importer factory, including any
985	960		subsidiary or affiliate of a factory, is not liable for any action
986	961		that a dealer, dealer management system provider, authorized
987	962		integrator, or other third party, except for a third party who the
988	963
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990		-	(Bold face denotes Committee Amendments) 1
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991	965		2
992	966		3
993	967		4
994	968		5
995	969		6
996	970		7
997	971		8
998	972		9
999	973		10
1000	974		11
1001	975		12
1002	976		13
1003	977		14
1004	978		15
1005	979		16
1006	980		17
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1009	983		20
1010	984		21
1011	985		22
1012	986		23
1013	987		24
1014	988
1015	989		manufacturer has provided the data to as provided for in paragraph 7
1016	990		of this subsection, takes directly with respect to securing or
1017	991		preventing unauthorized access to protected dealer data or for
1018	992		actions that an authorized integrator, dealer management system
1019	993		provider, or other third party takes in appropriately following the
1020	994		written instructions of the dealer for securing or preventing
1021	995		unauthorized access to protected dealer data.
1022	996		6. Notwithstanding any other agreement, an authorized
1023	997		integrator shall indemnify and hold the new motor vehicle dealer
1024	998		harmless from any third -party claims asserted against or damages
1025	999		incurred by the new motor vehicle dealer to the extent caused by
1026	1000		access to, use of, or disclosure of consumer data in violation of
1027	1001		this section.
1028	1002		7. Notwithstanding any other agreement, a manufacturer,
1029	1003		distributor, importer, factory or any entity that is a subsidiary or
1030	1004		affiliate of, or acts on behalf of, a manufacturer, distributor, or
1031	1005		importer factory, including any subsidiary or affiliate of a
1032	1006		factory, shall indemnify the dealer for any third -party claims
1033	1007		asserted against or damages incurred by the dealer to the extent the
1034	1008		claims or damages are caused by the access to and unlawful
1035	1009		disclosure of protected dealer data resulting from a breach caused
1036	1010		by the manufacturer or distributor or a third party to which the
1037	1011		manufacturer or distributor has provided the p rotected dealer data
1038	1012
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1043	1016		4
1044	1017		5
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1048	1021		9
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1051	1024		12
1052	1025		13
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1054	1027		15
1055	1028		16
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1060	1033		21
1061	1034		22
1062	1035		23
1063	1036		24
1064	1037
1065	1038		in violation of this section, the written consent granted by the
1066	1039		dealer, or other applicable state or federal law.
1067	1040		G. A factory or entity that acts on behalf of, a factory ,
1068	1041		including any subsidiary or affiliate of a factory, may not prohibit
1069	1042		an Authorized Integrator that has satisfied or is compliant with
1070	1043		commercially reasonable data security standards and that the dealer
1071	1044		has identified as one of its authorized integrators from integrating
1072	1045		into the dealer's dealer data system or place an unreasonable
1073	1046		restriction on integration by an authorized integrator or other
1074	1047		third party that the dealer wishes to be an authorized integrator.
1075	1048		For the purposes of this subsection, "unreasonable restriction"
1076	1049		includes:
1077	1050		1. Imposing an access fee on a de aler or authorized integrator;
1078	1051		2. An unreasonable limitation or condition on the scope or
1079	1052		nature of the data that is shared with an authorized integrator;
1080	1053		3. An unreasonable limitation on the ability of the authorized
1081	1054		integrator to write data to a dealer data system;
1082	1055		4. An unreasonable limitation or condition on an authorized
1083	1056		integrator that accesses or shares protected dealer data or that
1084	1057		writes data to a dealer data system; and
1085	1058		5. Requiring unreasonable access to an au thorized integrator's
1086	1059		sensitive, competitive, or other confidential business information
1087	1060		as a condition for accessing protected dealer data or sharing
1088	1061		protected dealer data with an authorized integrator.
1089	1062
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1092	1064		2
1093	1065		3
1094	1066		4
1095	1067		5
1096	1068		6
1097	1069		7
1098	1070		8
1099	1071		9
1100	1072		10
1101	1073		11
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1103	1075		13
1104	1076		14
1105	1077		15
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1108	1080		18
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1111	1083		21
1112	1084		22
1113	1085		23
1114	1086		24
1115	1087
1116	1088		Notwithstanding paragraph 1 of this subsection, a factory, or
1117	1089		entity that acts on beh alf of a factory, including any subsidiary or
1118	1090		affiliate of a factory may charge a motor vehicle dealer or
1119	1091		authorized integrator for actual costs associated with modifications
1120	1092		to a franchisor’s electronic systems to enable a functional and
1121	1093		secure interface with the authorized integrator’s system and
1122	1094		software.
1123	1095		SECTION 4. AMENDATORY 47 O.S. 2021, Section 565, as last
1124	1096		amended by Section 1, Chapter 145, O.S.L. 2024 (47 O.S. Supp. 2024,
1125	1097		Section 565), is amended to read as follows:
1126	1098		Section 565. A. The Oklahoma New Motor Vehicle Commission may
1127	1099		deny an application for a license, revoke or suspend a license, or
1128	1100		impose a fine against any person or entity, not to exceed Ten
1129	1101		Thousand Dollars ($10,000.00) per oc currence, that violates any
1130	1102		provision of Sections 561 through 567, 572, 578.1, 579, and 579.1 of
1131	1103		this title or for any of the following reasons:
1132	1104		1. On satisfactory proof of unfitness of the applicant in any
1133	1105		application for any license under the provisions of Section 561 et
1134	1106		seq. of this title;
1135	1107		2. For any material misstatement made by an applicant in any
1136	1108		application for any license under the provisions of Section 561 et
1137	1109		seq. of this title;
1138	1110
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1148	1119		9
1149	1120		10
1150	1121		11
1151	1122		12
1152	1123		13
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1156	1127		17
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1160	1131		21
1161	1132		22
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1163	1134		24
1164	1135
1165	1136		3. For any failure to comply with any provision of Section 561
1166	1137		et seq. of this title or any rule pro mulgated by the Commission
1167	1138		under authority vested in it by Section 561 et seq. of this title;
1168	1139		4. A change of condition after license is granted resulting in
1169	1140		failure to maintain the qualifications for license;
1170	1141		5. Being a new motor vehicle dealer who:
1171	1142		a. has required a purchaser of a new motor vehicle, as a
1172	1143		condition of sale and delivery thereof, to also
1173	1144		purchase special features, appliances, accessories, or
1174	1145		equipment not desired or requested by the purchaser
1175	1146		and installed by the new motor vehicle dealer,
1176	1147		b. uses any false or misleading advertising in connection
1177	1148		with business as a new motor vehicle dealer,
1178	1149		c. has committed any unlawful act which resulted in the
1179	1150		revocation of any similar license in another state,
1180	1151		d. has failed or refused to perform any writte n agreement
1181	1152		with any retail buyer involving the sale of a motor
1182	1153		vehicle,
1183	1154		e. has been convicted of a felony crime that
1184	1155		substantially relates to the occupation of a new motor
1185	1156		vehicle dealer and poses a reasonable threat to pu blic
1186	1157		safety,
1187	1158		f. has committed a fraudulent act in selling, purchasing,
1188	1159		or otherwise dealing in new motor vehicles or has
1189	1160
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1192	1162		2
1193	1163		3
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1215	1185
1216	1186		misrepresented the terms and conditions of a sale,
1217	1187		purchase or contract for sale or purchase of a new
1218	1188		motor vehicle or any interest therein including an
1219	1189		option to purchase such vehicle,
1220	1190		g. has failed to meet or maintain the conditions and
1221	1191		requirements necessary to qualify for the issuance of
1222	1192		a license, or
1223	1193		h. completes any sale or transaction of an extended
1224	1194		service contract, extended maint enance plan, or
1225	1195		similar product using contract forms that do not
1226	1196		conspicuously disclose the identity of the service
1227	1197		contract provider;
1228	1198		6. Being a motor vehicle salesperson who is not employed as
1229	1199		such by a licensed new motor vehicle dealer;
1230	1200		7. Being a new motor vehicle dealer who:
1231	1201		a. does not have an established place of business,
1232	1202		b. does not provide for a suitable repair shop separate
1233	1203		from the display room with ample space to repair or
1234	1204		recondition one or more vehicles at the same time, and
1235	1205		which is staffed with properly trained and quali fied
1236	1206		repair technicians and is equipped with such parts,
1237	1207		tools, and equipment as may be requisite for the
1238	1208		servicing of motor vehicles in such a manner as to
1239	1209		make them comply with the safety laws of this state
1240	1210
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1254	1223		13
1255	1224		14
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1266	1235
1267	1236		and to properly fulfill the dealer's or manufac turer's
1268	1237		warranty obligation,
1269	1238		c. does not hold a franchise in effect with a
1270	1239		manufacturer or distributor of new or unused motor
1271	1240		vehicles for the sale of the same and is not
1272	1241		authorized by the manufacturer or distributor to
1273	1242		render predelivery preparation of su ch vehicles sold
1274	1243		to purchasers and to perform any authorized post -sale
1275	1244		work pursuant to the manufacturer's or distributor's
1276	1245		warranty,
1277	1246		d. employs a person without obtaining a certificate of
1278	1247		registration for the person, or utilizes the services
1279	1248		of used motor vehicle lots or dealers or other
1280	1249		unlicensed persons in connection with the sale of new
1281	1250		motor vehicles,
1282	1251		e. does not properly service a new motor vehicle before
1283	1252		delivery of same to the original purchaser thereof, or
1284	1253		f. fails to order and stock a reasonable number of new
1285	1254		motor vehicles necessary to meet consumer demand for
1286	1255		each of the new motor vehicles included in the new
1287	1256		motor vehicle dealer's franchise agreement, unless the
1288	1257		new motor vehicles are not readily available from the
1289	1258		manufacturer or distributor d ue to limited production;
1290	1259		8. Being a factory that has:
1291	1260
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1294	1262		2
1295	1263		3
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1317	1285
1318	1286		a. either induced or attempted to induce by means of
1319	1287		coercion or intimidation, any new motor vehicle
1320	1288		dealer:
1321	1289		(1) to accept delivery of any motor vehicle or
1322	1290		vehicles, parts, or accessories therefor, or any
1323	1291		other commodities including advertising material
1324	1292		which shall not have been ordered by the new
1325	1293		motor vehicle dealer,
1326	1294		(2) to order or accept delivery of any motor vehicle
1327	1295		with special features, appliances, accessories,
1328	1296		or equipment not included in the l ist price of
1329	1297		the motor vehicles as publicly advertised by the
1330	1298		manufacturer thereof, or
1331	1299		(3) to order or accept delivery of any parts,
1332	1300		accessories, equipment, machinery, tools,
1333	1301		appliances, or any commodity whatsoever,
1334	1302		b. induced under threat or discriminatio n by the
1335	1303		withholding from delivery to a new motor vehicle
1336	1304		dealer certain models of motor vehicles, changing or
1337	1305		amending unilaterally the new motor vehicle dealer's
1338	1306		allotment of motor vehicles, and/or withholding and
1339	1307		delaying delivery of the vehicles out of the ordinary
1340	1308		course of business, in order to induce by such
1341	1309		coercion any new motor vehicle dealer to participate
1342	1310
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1368	1335
1369	1336		or contribute to any local or national advertising
1370	1337		fund controlled directly or indirectly by the factory
1371	1338		or for any other purposes such as con test,
1372	1339		"giveaways", or other so -called sales promotional
1373	1340		devices, and/or change of quotas in any sales contest;
1374	1341		or has required new motor vehicle dealers, as a
1375	1342		condition to receiving their vehicle allotment, to
1376	1343		order a certain percentage of the vehicles wit h
1377	1344		optional equipment not specified by the new motor
1378	1345		vehicle dealer; however, nothing in this section shall
1379	1346		prohibit a factory from supporting an advertising
1380	1347		association which is open to all new motor vehicle
1381	1348		dealers on the same basis,
1382	1349		c. used a performance standard, sales objective, or
1383	1350		program for measuring dealer performance that may have
1384	1351		a material effect on a right of the dealer to vehicle
1385	1352		allocation; or payment under any incentive or
1386	1353		reimbursement program that is unfair, unreasonable,
1387	1354		inequitable, and not based on accurate information,
1388	1355		d. used a performance standard for measuring sales or
1389	1356		service performance of which results in penalizing any
1390	1357		new motor vehicle dealer under the terms of the
1391	1358		franchise agreement which:
1392	1359
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1418	1384
1419	1385		(1) is unfair, unreasonable, arbitrary , or
1420	1386		inequitable, and
1421	1387		(2) does not consider the relevant and material local
1422	1388		and state or regional criteria, prevailing
1423	1389		economic conditions affecting the sales or
1424	1390		service performance of a vehicle dealer, vehicle
1425	1391		allocation from the manufacturer, and any
1426	1392		relevant and material data and facts presented by
1427	1393		the dealer in writing within thirty (30) days of
1428	1394		the written notice of the manufacturer to the
1429	1395		dealer of its intention to cancel, terminate, or
1430	1396		not renew the dealer's franchise agreement, and
1431	1397		(3) does not consider the actual vehicle allocation
1432	1398		offered or otherwise made available to the dealer
1433	1399		by the manufacturer or distributor, as well as
1434	1400		the dealer's inventory levels relevant to achieve
1435	1401		any minimum performance standards to which the
1436	1402		manufacturer or distributor holds the dealer
1437	1403		accountable,
1438	1404		e. failed or refused to sell, or offer for sale, new
1439	1405		motor vehicles to all of its authorized same line -make
1440	1406		franchised new motor vehicle dealers at the same price
1441	1407		for a comparably equipped mot or vehicle, on the same
1442	1408		terms, with no differential in functionally available
1443	1409
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1469	1434
1470	1435		discount, allowance, credit, or bonus, except as
1471	1436		provided in subparagraph e of paragraph 9 of this
1472	1437		subsection,
1473	1438		f. failed to provide reasonable compensation to a new
1474	1439		motor vehicle dealer substantially equivalent to the
1475	1440		actual cost of providing a manufacturer required
1476	1441		loaner or rental vehicle to any consumer who is having
1477	1442		a vehicle serviced at the dealership. For purposes of
1478	1443		this paragraph, actual cost is the average cost in the
1479	1444		new motor vehicle dealer's region f or the rental of a
1480	1445		substantially similar make and model as the vehicle
1481	1446		being serviced, or
1482	1447		g. failed to make available to its new motor vehicle
1483	1448		dealers a fair and proportional share of all new
1484	1449		vehicles distributed to same line -make dealers in this
1485	1450		state, subject to the same reasonable terms, including
1486	1451		any vehicles distributed from a common new vehicle
1487	1452		inventory pool outside of the factory's ordinary
1488	1453		allocation process such as any vehicles the factory
1489	1454		reserves to distribute on a discretionary basis;
1490	1455		9. Being a factory that:
1491	1456		a. has attempted to coerce or has coerced any new motor
1492	1457		vehicle dealer to enter into any agreement or to
1493	1458		cancel any agreement; has failed to act in good faith
1494	1459
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1519	1483		24
1520	1484
1521	1485		and in a fair, equitable, and nondiscriminatory
1522	1486		manner; has directly or indirect ly coerced,
1523	1487		intimidated, threatened, or restrained any new motor
1524	1488		vehicle dealer; has acted dishonestly; or has failed
1525	1489		to act in accordance with the reasonable standards of
1526	1490		fair dealing,
1527	1491		b. has failed to compensate its deale rs for the work and
1528	1492		services they are required to perform in connection
1529	1493		with the dealer's delivery and preparation obligations
1530	1494		according to the agreements on file with the
1531	1495		Commission which must be found by the Commission to be
1532	1496		reasonable, or has failed to adequately and fairly
1533	1497		compensate its dealers for labor, parts, and other
1534	1498		expenses incurred by the dealer to perform under and
1535	1499		comply with manufacturer's warranty agreements and
1536	1500		recall repairs which shall include diagnostic work as
1537	1501		applicable and assistance requested by a consumer
1538	1502		whose vehicle was subjected to an over -the-air or
1539	1503		remote change, repair, or update to any part, system,
1540	1504		accessory, or function by the manufacturer and
1541	1505		performed by the dealer in order to satisfy the
1542	1506		consumer. Time allowances for the diagnosis and
1543	1507		performance of repair work shall be reasonable and
1544	1508		adequate for the work to be performed. Adequate and
1545	1509
1546		-	SENATE FLOOR VERSION - HB2158 SFLR Page 31
1547		-	(Bold face denotes Committee Amendments) 1
	1510	+	ENGR. H. B. NO. 2158 Page 31 1
1548	1511		2
1549	1512		3
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1567	1530		21
1568	1531		22
1569	1532		23
1570	1533		24
1571	1534
1572	1535		fair compensation, which under this provision shall be
1573	1536		no less than the rates customarily charged for retail
1574	1537		consumer repairs as calcul ated herein, for parts and
1575	1538		labor for warranty and recall repairs shall, at the
1576	1539		option of the new motor vehicle dealer, be established
1577	1540		by the new motor vehicle dealer submitting to the
1578	1541		manufacturer or distributor one hundred sequential
1579	1542		nonwarranty consumer -paid service repair orders which
1580	1543		contain warranty-like repairs, or ninety (90)
1581	1544		consecutive days of nonwarranty consumer -paid service
1582	1545		repair orders which contain warranty -like repairs,
1583	1546		whichever is less, covering repairs made no more than
1584	1547		one hundred eighty (180) days before the submission
1585	1548		and declaring the average percentage labor rate and/or
1586	1549		markup rate. A new motor vehicle dealer may not
1587	1550		submit a request to establish its retail rates more
1588	1551		than once in a twelve -month period. That request may
1589	1552		establish a parts markup rate, labor rate, or both.
1590	1553		The new motor vehicle dealer shall calculate its
1591	1554		retail parts rate by determining the total charges for
1592	1555		parts from the qualified repair orders submitted,
1593	1556		dividing that amount by the new motor vehicle dealer's
1594	1557		total cost of the purchase of those par ts, subtracting
1595	1558		one (1), and multiplying by one hundred (100) to
1596	1559
1597		-	SENATE FLOOR VERSION - HB2158 SFLR Page 32
1598		-	(Bold face denotes Committee Amendments) 1
	1560	+	ENGR. H. B. NO. 2158 Page 32 1
1599	1561		2
1600	1562		3
1601	1563		4
1602	1564		5
1603	1565		6
1604	1566		7
1605	1567		8
1606	1568		9
1607	1569		10
1608	1570		11
1609	1571		12
1610	1572		13
1611	1573		14
1612	1574		15
1613	1575		16
1614	1576		17
1615	1577		18
1616	1578		19
1617	1579		20
1618	1580		21
1619	1581		22
1620	1582		23
1621	1583		24
1622	1584
1623	1585		produce a percentage. The new motor vehicle dealer
1624	1586		shall calculate its retail labor rate by dividing the
1625	1587		amount of the new motor vehicle dealer's total labor
1626	1588		sales from the qualified repair orders by the total
1627	1589		labor hours charged for those sales. When submitting
1628	1590		repair orders to establish a retail parts and labor
1629	1591		rate, a new motor vehicle dealer need not include
1630	1592		repairs for:
1631	1593		(1) routine maintenance including but not limited to
1632	1594		the replacement of bulbs, fluids, filters,
1633	1595		batteries, and belts that are not provided in the
1634	1596		course of and related to a repair,
1635	1597		(2) factory special events, specials, or promotional
1636	1598		discounts for retail consumer repairs,
1637	1599		(3) parts sold or repairs performed at wholesale,
1638	1600		(4) factory-approved goodwill or policy repairs or
1639	1601		replacements,
1640	1602		(5) repairs with aftermarket parts, when calculating
1641	1603		the retail parts rate but not the retail labor
1642	1604		rate,
1643	1605		(6) repairs on aftermarket parts,
1644	1606		(7) replacement of or work on tires including front -
1645	1607		end alignments and wheel or tire rotations,
1646	1608
1647		-	SENATE FLOOR VERSION - HB2158 SFLR Page 33
1648		-	(Bold face denotes Committee Amendments) 1
	1609	+	ENGR. H. B. NO. 2158 Page 33 1
1649	1610		2
1650	1611		3
1651	1612		4
1652	1613		5
1653	1614		6
1654	1615		7
1655	1616		8
1656	1617		9
1657	1618		10
1658	1619		11
1659	1620		12
1660	1621		13
1661	1622		14
1662	1623		15
1663	1624		16
1664	1625		17
1665	1626		18
1666	1627		19
1667	1628		20
1668	1629		21
1669	1630		22
1670	1631		23
1671	1632		24
1672	1633
1673	1634		(8) repairs of motor vehicles owned by the new motor
1674	1635		vehicle dealer or employee thereof at the time of
1675	1636		the repair,
1676	1637		(9) vehicle reconditioning, or
1677	1638		(10) items that do not have individual part numbers
1678	1639		including, but not limited to, nuts, bolts, and
1679	1640		fasteners.
1680	1641		A manufacturer or distributor may, not later than
1681	1642		forty-five (45) days after submission, rebut that
1682	1643		declared retail parts and labor rate in writing by
1683	1644		reasonably substantiating that the rate is not
1684	1645		accurate or is incomplete pursuant to the provisions
1685	1646		of this section. If the manufacturer or distributor
1686	1647		determines the set of repair orders submitted by the
1687	1648		new motor vehicle dealer pursuant to this section for
1688	1649		a retail labor rate or retail parts markup rate is
1689	1650		substantially higher than the new motor vehicle
1690	1651		dealer's current warranty rates, the manufacturer or
1691	1652		distributor may request, in writing, within forty -five
1692	1653		(45) days after the manufacturer's or distributor's
1693	1654		receipt of the new motor vehicle dealer's initial
1694	1655		submission, all repair orders closed within the period
1695	1656		of thirty (30) days immediately preceding, or thirty
1696	1657		(30) days immediately following, the set of repair
1697	1658
1698		-	SENATE FLOOR VERSION - HB2158 SFLR Page 34
1699		-	(Bold face denotes Committee Amendments) 1
	1659	+	ENGR. H. B. NO. 2158 Page 34 1
1700	1660		2
1701	1661		3
1702	1662		4
1703	1663		5
1704	1664		6
1705	1665		7
1706	1666		8
1707	1667		9
1708	1668		10
1709	1669		11
1710	1670		12
1711	1671		13
1712	1672		14
1713	1673		15
1714	1674		16
1715	1675		17
1716	1676		18
1717	1677		19
1718	1678		20
1719	1679		21
1720	1680		22
1721	1681		23
1722	1682		24
1723	1683
1724	1684		orders initially submitted by the new motor vehicle
1725	1685		dealer. All time periods under this section sh all be
1726	1686		suspended until the supplemental repair orders are
1727	1687		provided. If the manufacturer or distributor requests
1728	1688		supplemental repair orders, the manufacturer or
1729	1689		distributor may, within thirty (30) days after
1730	1690		receiving the supplemental repair orders and in
1731	1691		accordance with the formula described in this
1732	1692		subsection, calculate a proposed adjusted retail labor
1733	1693		rate or retail parts markup rate, as applicable, based
1734	1694		upon any set of the qualified repair orders submitted
1735	1695		by the franchisee and following the formula se t forth
1736	1696		herein to establish the rate. The retail labor and
1737	1697		parts rates shall go into effect thirty (30) days
1738	1698		following the approval by the manufacturer or
1739	1699		distributor. If the declared rate is rebutted, the
1740	1700		manufacturer or distributor shall provide writte n
1741	1701		notice stating the reasons for the rebuttal, an
1742	1702		explanation of the reasons for the rebuttal, and a
1743	1703		copy of all calculations used by the franchisor in
1744	1704		determining the manufacturer or distributor's position
1745	1705		and propose an adjustment in writing of the avera ge
1746	1706		percentage markup or labor rate based on that rebuttal
1747	1707		not later than forty -five (45) days after submission.
1748	1708
1749		-	SENATE FLOOR VERSION - HB2158 SFLR Page 35
1750		-	(Bold face denotes Committee Amendments) 1
	1709	+	ENGR. H. B. NO. 2158 Page 35 1
1751	1710		2
1752	1711		3
1753	1712		4
1754	1713		5
1755	1714		6
1756	1715		7
1757	1716		8
1758	1717		9
1759	1718		10
1760	1719		11
1761	1720		12
1762	1721		13
1763	1722		14
1764	1723		15
1765	1724		16
1766	1725		17
1767	1726		18
1768	1727		19
1769	1728		20
1770	1729		21
1771	1730		22
1772	1731		23
1773	1732		24
1774	1733
1775	1734		If the new motor vehicle dealer does not agree with
1776	1735		the proposed average percentage markup or labor rate,
1777	1736		the new motor vehicle dealer may file a protest with
1778	1737		the Commission not later than thirty (30) days after
1779	1738		receipt of that proposal by the manufacturer or
1780	1739		distributor. In the event a protest is filed, the
1781	1740		manufacturer or distributor shall have the burden of
1782	1741		proof to establish the new motor ve hicle dealer's
1783	1742		submitted parts markup rate or labor rate was
1784	1743		inaccurate or not complete pursuant to the provisions
1785	1744		of this section. A manufacturer or distributor may
1786	1745		not retaliate against any new motor vehicle dealer
1787	1746		seeking to exercise its rights under t his section. A
1788	1747		manufacturer or distributor may require a dealer to
1789	1748		submit repair orders in accordance with this section
1790	1749		in order to validate the reasonableness of a dealer's
1791	1750		retail rate for parts or labor not more often than
1792	1751		once every twelve (12) months. A manufacturer or
1793	1752		distributor may not otherwise recover its costs from
1794	1753		new motor vehicle dealers within this state including
1795	1754		a surcharge imposed on a new motor vehicle dealer
1796	1755		solely intended to recover the cost of reimbur sing a
1797	1756		new motor vehicle dealer f or parts and labor pursuant
1798	1757		to this section; provided, a manufacturer or
1799	1758
1800		-	SENATE FLOOR VERSION - HB2158 SFLR Page 36
1801		-	(Bold face denotes Committee Amendments) 1
	1759	+	ENGR. H. B. NO. 2158 Page 36 1
1802	1760		2
1803	1761		3
1804	1762		4
1805	1763		5
1806	1764		6
1807	1765		7
1808	1766		8
1809	1767		9
1810	1768		10
1811	1769		11
1812	1770		12
1813	1771		13
1814	1772		14
1815	1773		15
1816	1774		16
1817	1775		17
1818	1776		18
1819	1777		19
1820	1778		20
1821	1779		21
1822	1780		22
1823	1781		23
1824	1782		24
1825	1783
1826	1784		distributor shall not be prohibited from increasing
1827	1785		prices for vehicles or parts in the normal course of
1828	1786		business or from auditing and charging back claims in
1829	1787		accordance with this sec tion. All claims made by
1830	1788		dealers for compensation for delivery, preparation,
1831	1789		warranty, or recall repair work shall be paid within
1832	1790		thirty (30) days after approval and shall be approved
1833	1791		or disapproved within thirty (30) days after receipt.
1834	1792		When any claim is disapproved, the dealer shall be
1835	1793		notified in writing of the grounds for disapproval.
1836	1794		The dealer's delivery, preparation, and warranty
1837	1795		obligations as filed with the Commission shall
1838	1796		constitute the dealer's sole responsibility for
1839	1797		product liability as bet ween the dealer and
1840	1798		manufacturer. A factory may reasonably and
1841	1799		periodically audit a new motor vehicle dealer to
1842	1800		determine the validity of paid claims for new motor
1843	1801		vehicle dealer compensation or any charge -backs for
1844	1802		warranty parts or service compensation. Except in
1845	1803		cases of suspected fraud, audits of warranty payments
1846	1804		shall only be for the one -year period immediately
1847	1805		following the date of the payment. A manufacturer
1848	1806		shall reserve the right to reasonable, periodic audits
1849	1807		to determine the validity of paid claims for dealer
1850	1808
1851		-	SENATE FLOOR VERSION - HB2158 SFLR Page 37
1852		-	(Bold face denotes Committee Amendments) 1
	1809	+	ENGR. H. B. NO. 2158 Page 37 1
1853	1810		2
1854	1811		3
1855	1812		4
1856	1813		5
1857	1814		6
1858	1815		7
1859	1816		8
1860	1817		9
1861	1818		10
1862	1819		11
1863	1820		12
1864	1821		13
1865	1822		14
1866	1823		15
1867	1824		16
1868	1825		17
1869	1826		18
1870	1827		19
1871	1828		20
1872	1829		21
1873	1830		22
1874	1831		23
1875	1832		24
1876	1833
1877	1834		compensation or any charge -backs for consumer or
1878	1835		dealer incentives. Except in cases of suspected
1879	1836		fraud, audits of incentive payments shall only be for
1880	1837		a one-year period immediately following the date of
1881	1838		the payment. A factory shall not deny a claim or
1882	1839		charge a new motor vehicle dealer back subsequent to
1883	1840		the payment of the claim unless the factory can show
1884	1841		that the claim was false or fraudulent or that the new
1885	1842		motor vehicle dealer failed to reasonably substantiate
1886	1843		the claim by the written reasonable procedures of the
1887	1844		factory. A factory shall not deny a claim or
1888	1845		implement a charge-back against a new motor vehicle
1889	1846		dealer after payment of a claim in the event a
1890	1847		purchaser of a new vehicle that is the subject o f a
1891	1848		claim fails to comply with ti tling or registration
1892	1849		laws of this state and is not prevented from
1893	1850		compliance by any action of the new motor vehicle
1894	1851		dealer; provided, that the factory may require the new
1895	1852		motor vehicle dealer to provide, within thirty (30)
1896	1853		days of notice of charge -back, withholding of payment,
1897	1854		or denial of claim, the documentation to demonstrate
1898	1855		the vehicle sale, delivery, and customer qualification
1899	1856		for an incentive as reported, including consumer name
1900	1857		and address and written attestation si gned by the
1901	1858
1902		-	SENATE FLOOR VERSION - HB2158 SFLR Page 38
1903		-	(Bold face denotes Committee Amendments) 1
	1859	+	ENGR. H. B. NO. 2158 Page 38 1
1904	1860		2
1905	1861		3
1906	1862		4
1907	1863		5
1908	1864		6
1909	1865		7
1910	1866		8
1911	1867		9
1912	1868		10
1913	1869		11
1914	1870		12
1915	1871		13
1916	1872		14
1917	1873		15
1918	1874		16
1919	1875		17
1920	1876		18
1921	1877		19
1922	1878		20
1923	1879		21
1924	1880		22
1925	1881		23
1926	1882		24
1927	1883
1928	1884		dealer operator or ge neral manager stating the
1929	1885		consumer was not on the export control list and the
1930	1886		dealer did not know or have reason to know the vehicle
1931	1887		was being exported or resold.
1932	1888		The factory shall provide written notice to a dealer
1933	1889		of a proposed charge -back that is the result of an
1934	1890		audit along with the specific audit results and
1935	1891		proposed charge-back amount. A dealer that receives
1936	1892		notice of a proposed charge -back pursuant to a
1937	1893		factory's audit has the right to file a protest with
1938	1894		the Commission within thirty (30) days after receipt
1939	1895		of the notice of the charge -back or audit results,
1940	1896		whichever is later. The factory is prohibited from
1941	1897		implementing the charge -back or debiting the dealer's
1942	1898		account until either the time frame for filing a
1943	1899		protest has passed or a final adjudicatio n is rendered
1944	1900		by the Commission, whichever is later, unless the
1945	1901		dealer has agreed to the charge -back or charge-backs,
1946	1902		c. fails to compensate the new motor vehicle dealer for a
1947	1903		used motor vehicle:
1948	1904		(1) that is of the same mak e and model manufactured,
1949	1905		imported, or distributed by the factory and is a
1950	1906		line-make that the new motor vehicle dealer is
1951	1907		franchised to sell or on which the new motor
1952	1908
1953		-	SENATE FLOOR VERSION - HB2158 SFLR Page 39
1954		-	(Bold face denotes Committee Amendments) 1
	1909	+	ENGR. H. B. NO. 2158 Page 39 1
1955	1910		2
1956	1911		3
1957	1912		4
1958	1913		5
1959	1914		6
1960	1915		7
1961	1916		8
1962	1917		9
1963	1918		10
1964	1919		11
1965	1920		12
1966	1921		13
1967	1922		14
1968	1923		15
1969	1924		16
1970	1925		17
1971	1926		18
1972	1927		19
1973	1928		20
1974	1929		21
1975	1930		22
1976	1931		23
1977	1932		24
1978	1933
1979	1934		vehicle dealer is authorized to perform recall
1980	1935		repairs,
1981	1936		(2) that is subject to a stop -sale or do-not-drive
1982	1937		order issued by the factory or an authorized
1983	1938		governmental agency,
1984	1939		(3) that is held by the new motor vehicle dealer in
1985	1940		the dealer's inventory at the time the stop -sale
1986	1941		or do-not-drive order is issued or that is taken
1987	1942		by the new motor vehic le dealer into the dealer's
1988	1943		inventory after the recall notice as a result of
1989	1944		a retail consumer trade -in or a lease return to
1990	1945		the dealer inventory in accordance with an
1991	1946		applicable lease contract,
1992	1947		(4) that cannot be repaired due to the
1993	1948		unavailability, within thirty (30) days after
1994	1949		issuance of the stop-sale or do-not-drive order,
1995	1950		of a remedy or parts necessary for the new motor
1996	1951		vehicle dealer to make the recall repair, and
1997	1952		(5) that is not at least in the prorated amount of
1998	1953		one percent (1.00%) of the value of t he vehicle
1999	1954		per month beginning on the date that is thirty
2000	1955		(30) days after the date on which the stop -sale
2001	1956		order was provided to the new motor vehicle
2002	1957
2003		-	SENATE FLOOR VERSION - HB2158 SFLR Page 40
2004		-	(Bold face denotes Committee Amendments) 1
	1958	+	ENGR. H. B. NO. 2158 Page 40 1
2005	1959		2
2006	1960		3
2007	1961		4
2008	1962		5
2009	1963		6
2010	1964		7
2011	1965		8
2012	1966		9
2013	1967		10
2014	1968		11
2015	1969		12
2016	1970		13
2017	1971		14
2018	1972		15
2019	1973		16
2020	1974		17
2021	1975		18
2022	1976		19
2023	1977		20
2024	1978		21
2025	1979		22
2026	1980		23
2027	1981		24
2028	1982
2029	1983		dealer until the earlier of either of the
2030	1984		following:
2031	1985		(a) the date the recall remedy or parts are made
2032	1986		available, or
2033	1987		(b) the date the new motor vehicle dealer sells,
2034	1988		trades, or otherwise disposes of the
2035	1989		affected used motor vehicle.
2036	1990		For the purposes of division (5) of this subparagraph,
2037	1991		the value of a used vehicle shall be the average Black
2038	1992		Book value for the ye ar, make, and model of the
2039	1993		recalled vehicle. A factory may direct the manner and
2040	1994		method in which a new motor vehicle dealer must
2041	1995		demonstrate the inventory status of an affected used
2042	1996		motor vehicle to determine eligibility under this
2043	1997		subparagraph; provided, that the manner and method may
2044	1998		not be unduly burdensome and may not require
2045	1999		information that is unduly burdensome to provide. All
2046	2000		reimbursement claims made by new motor vehicle dealers
2047	2001		pursuant to this section for recall remedies or
2048	2002		repairs, or for compe nsation where no part or repair
2049	2003		is reasonably available and the vehicle is subject to
2050	2004		a stop-sale or do-not-drive order, shall be subject to
2051	2005		the same limitations and requirements as a warranty
2052	2006		reimbursement claim made under subparagraph b of this
2053	2007
2054		-	SENATE FLOOR VERSION - HB2158 SFLR Page 41
2055		-	(Bold face denotes Committee Amendments) 1
	2008	+	ENGR. H. B. NO. 2158 Page 41 1
2056	2009		2
2057	2010		3
2058	2011		4
2059	2012		5
2060	2013		6
2061	2014		7
2062	2015		8
2063	2016		9
2064	2017		10
2065	2018		11
2066	2019		12
2067	2020		13
2068	2021		14
2069	2022		15
2070	2023		16
2071	2024		17
2072	2025		18
2073	2026		19
2074	2027		20
2075	2028		21
2076	2029		22
2077	2030		23
2078	2031		24
2079	2032
2080	2033		paragraph. In the alternative, a manufact urer may
2081	2034		compensate its franchised new motor vehicle dealers
2082	2035		under a national recall compensation program;
2083	2036		provided, the compensation under the program is equal
2084	2037		to or greater than that provided under division (5) of
2085	2038		this subparagraph, or as the manufacture r and new
2086	2039		motor vehicle dealer otherwise agree. Nothing in this
2087	2040		section shall require a factory to provide total
2088	2041		compensation to a new motor vehicle dealer which would
2089	2042		exceed the total average Black Book value of the
2090	2043		affected used motor vehicle as origina lly determined
2091	2044		under division (5) of this subparagraph. Any remedy
2092	2045		provided to a new motor vehicle dealer under this
2093	2046		subparagraph is exclusive and may not be combined with
2094	2047		any other state or federal compensation remedy,
2095	2048		d. unreasonably fails or refuses to offer to its same
2096	2049		line-make franchised dealers a reasonable supply and
2097	2050		mix of all models manufactured for that line -make, or
2098	2051		unreasonably requires a dealer to pay any extra fee,
2099	2052		purchase unreasonable advertising displays or other
2100	2053		materials, or enter into a separate agreement which
2101	2054		adversely alters the rights or obligations contained
2102	2055		within the new motor vehicle dealer's existing
2103	2056		franchise agreement or which waives any right of the
2104	2057
2105		-	SENATE FLOOR VERSION - HB2158 SFLR Page 42
2106		-	(Bold face denotes Committee Amendments) 1
	2058	+	ENGR. H. B. NO. 2158 Page 42 1
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2128	2080		23
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2130	2082
2131	2083		new motor vehicle dealer as protected by Se ction 561
2132	2084		et seq. of this title, or remodel, renovate, or
2133	2085		recondition the new motor vehicle dealer's existing
2134	2086		facilities as a prerequisite to receiving a model or
2135	2087		series of vehicles, except as may be necessary to sell
2136	2088		or service the model or series of vehicles as provided
2137	2089		by subparagraph e of this paragraph. It shall be a
2138	2090		violation of this section for new vehicle allocation
2139	2091		to be withheld subject to any requirement to purchase
2140	2092		or sell any number of used or off -lease vehicles. The
2141	2093		failure to deliver any su ch new motor vehicle shall
2142	2094		not be considered a violation of the section if the
2143	2095		failure is not arbitrary or is due to lack of
2144	2096		manufacturing capacity or to a strike or labor
2145	2097		difficulty, a shortage of materials, a freight
2146	2098		embargo, or other cause over which the manufacturer
2147	2099		has no control. However, this subparagraph shall not
2148	2100		apply to recreational vehicles, limited production
2149	2101		model vehicles, a vehicle not advertised by the
2150	2102		factory for sale in this state, vehicles that are
2151	2103		subject to allocation affected by fede ral
2152	2104		environmental laws or environ mental laws of this
2153	2105		state, or vehicles allocated in response to an
2154	2106		unforeseen event or circumstance,
2155	2107
2156		-	SENATE FLOOR VERSION - HB2158 SFLR Page 43
2157		-	(Bold face denotes Committee Amendments) 1
	2108	+	ENGR. H. B. NO. 2158 Page 43 1
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2159	2110		3
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2181	2132
2182	2133		e. except as necessary to comply with a health or safety
2183	2134		law, or to comply with a technology requirement which
2184	2135		is necessary to sell or service a motor vehi cle that
2185	2136		the franchised new motor vehicle dealer is authorized
2186	2137		or licensed by the franchisor to sell or service,
2187	2138		requires a new motor vehicle dealer to construct a new
2188	2139		facility or substantially renovate the new motor
2189	2140		vehicle dealer's existing facility unle ss the facility
2190	2141		construction or renovation is justified by the
2191	2142		economic conditions existing at the time, as well as
2192	2143		the reasonably foreseeable projections, in the new
2193	2144		motor vehicle dealer's market and in the automotive
2194	2145		industry. However, this subparagraph shall not apply
2195	2146		if the new motor vehicle dealer voluntarily agrees to
2196	2147		facility construction or renovation in exchange for
2197	2148		money, credit, allowance, reimbursement, or additional
2198	2149		vehicle allocation to a new motor vehicle dea ler from
2199	2150		the factory to compensat e the new motor vehicle dealer
2200	2151		for the cost of, or a portion of the cost of, the
2201	2152		facility construction or renovation. Except as
2202	2153		necessary to comply with a health or safety law, or to
2203	2154		comply with a technology or safety requirement which
2204	2155		is necessary to sell or service a motor vehicle that
2205	2156		the franchised new motor vehicle dealer is authorized
2206	2157
2207		-	SENATE FLOOR VERSION - HB2158 SFLR Page 44
2208		-	(Bold face denotes Committee Amendments) 1
	2158	+	ENGR. H. B. NO. 2158 Page 44 1
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2232	2182
2233	2183		or licensed by the franchisor to sell or service, a
2234	2184		new motor vehicle dealer which completes a facility
2235	2185		construction or renovation purs uant to factory
2236	2186		requirements shall not be required to construct a new
2237	2187		facility or renovate the existing facility if the same
2238	2188		area of the facility or premises has been constructed
2239	2189		or substantially altered within the last ten (10)
2240	2190		years and the construction or alteration was approved
2241	2191		by the manufacturer as a part of a facility upgrade
2242	2192		program, standard, or policy. For purposes of this
2243	2193		subparagraph, "substantially altered" means to perform
2244	2194		an alteration that substantially impacts the
2245	2195		architectural features, c haracteristics, or integrity
2246	2196		of a structure or lot. The term shall not include
2247	2197		routine maintenance reasonably necessary to maintain a
2248	2198		dealership in attractive condition. If a facility
2249	2199		upgrade program, standard, or policy under which the
2250	2200		dealer completed a facility construction or
2251	2201		substantial alteration does not contain a specific
2252	2202		time period during which the manufacturer or
2253	2203		distributor shall provide payments or benefits to a
2254	2204		participating dealer, or the time frame specified
2255	2205		under the program is reduced or canceled prematurely
2256	2206		in the unilateral discretion of the manufacturer or
2257	2207
2258		-	SENATE FLOOR VERSION - HB2158 SFLR Page 45
2259		-	(Bold face denotes Committee Amendments) 1
	2208	+	ENGR. H. B. NO. 2158 Page 45 1
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2283	2232
2284	2233		distributor, the manufacturer or distributor shall not
2285	2234		deny the participating dealer any payment or benefit
2286	2235		under the terms of the program, standard, or policy as
2287	2236		it existed when the dealer began to perform under th e
2288	2237		program, standard, or policy for the balance of the
2289	2238		ten-year period, regardless of whether the
2290	2239		manufacturer's or distributor's program, standard, or
2291	2240		policy has been changed or canceled, unless the
2292	2241		manufacturer and dealer agree, in writing, to the
2293	2242		change in payment or benefit. During the ten -year
2294	2243		period following facility construction or substantial
2295	2244		alteration, the manufacturer shall not fail to make
2296	2245		available to the dealer a fair and proportionate share
2297	2246		of all new vehicles distributed to dealers of the s ame
2298	2247		line-make in this state, subject to the same
2299	2248		reasonable terms, including vehicles distributed from
2300	2249		a common new vehicle inventory pool outside of the
2301	2250		factory's ordinary allocation process, such as any
2302	2251		vehicles the factory reserves to distribute on a
2303	2252		discretionary basis,
2304	2253		f. requires a new motor vehicle dealer to establish an
2305	2254		exclusive facility or to change the location of the
2306	2255		dealership, unless supported by reasonable business,
2307	2256		market, and economic considerations; provided, that
2308	2257
2309		-	SENATE FLOOR VERSION - HB2158 SFLR Page 46
2310		-	(Bold face denotes Committee Amendments) 1
	2258	+	ENGR. H. B. NO. 2158 Page 46 1
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2334	2282
2335	2283		this section shall not re strict the terms of any
2336	2284		agreement for such exclusive facility voluntarily
2337	2285		entered into and supported by valuable consideration
2338	2286		separate from the new motor vehicle dealer's right to
2339	2287		sell and service motor vehicles for the fr anchisor.
2340	2288		If a dealer is require d by the manufacturer or
2341	2289		distributor to change an existing, previously approved
2342	2290		location of the dealership and has not sold its
2343	2291		existing dealership facility and real estate within
2344	2292		the later of one hundred eighty (180) days of listing
2345	2293		the property for sale or ninety (90) days after the
2346	2294		facility relocation, then, upon the written request of
2347	2295		the dealer, the manufacturer or distributor shall
2348	2296		purchase the dealer's existing dealership facility and
2349	2297		real estate as if the new motor v ehicle dealership
2350	2298		continues to operate on the property. If the factory
2351	2299		and dealer cannot agree on the value of the dealership
2352	2300		facilities and real estate, then the factory and
2353	2301		dealer shall utilize the process described in
2354	2302		paragraph 6 of subsection G of Section 565.2 of this
2355	2303		title. If a manufacturer or distributor purchases a
2356	2304		dealership facility and real estate, then it shall be
2357	2305		entitled to sole ownership, possession, use, and
2358	2306
2359		-	SENATE FLOOR VERSION - HB2158 SFLR Page 47
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	2307	+	ENGR. H. B. NO. 2158 Page 47 1
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2384	2331
2385	2332		control of any items, buildings, or property that were
2386	2333		included in the contract t o purchase,
2387	2334		g. requires a new motor vehicle dealer to enter into a
2388	2335		site-control agreement covering any or all of the new
2389	2336		motor vehicle dealer's facilities or premises;
2390	2337		provided, that this section shall not restrict the
2391	2338		terms of any site-control agreement voluntarily
2392	2339		entered into and suppo rted by valuable consideration
2393	2340		separate from the new motor vehicle dealer's right to
2394	2341		sell and service motor vehicles for the franchisor.
2395	2342		Notwithstanding the foregoing or the terms of any
2396	2343		site-control agreement, a site -control agreement
2397	2344		automatically extinguishes if all of the factory's
2398	2345		franchises that operated from the location that are
2399	2346		the subject of the site -control agreement are
2400	2347		terminated by the factory as part of the
2401	2348		discontinuance of a product line,
2402	2349		h. refuses to pay, or claims reimbursement from, a new
2403	2350		motor vehicle dealer for sales, incentives, or other
2404	2351		payments related to a motor vehicle sold by the new
2405	2352		motor vehicle dealer because the purchaser of the
2406	2353		motor vehicle exported or resold the motor vehicle in
2407	2354		violation of the policy of the factory unle ss the
2408	2355		factory can show that, at the time of the sale, the
2409	2356
2410		-	SENATE FLOOR VERSION - HB2158 SFLR Page 48
2411		-	(Bold face denotes Committee Amendments) 1
	2357	+	ENGR. H. B. NO. 2158 Page 48 1
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2435	2381
2436	2382		new motor vehicle dealer knew or reasonably should
2437	2383		have known of the purchaser's intention to export or
2438	2384		resell the motor vehicle. There is a rebuttable
2439	2385		presumption that the new motor vehicle deale r did not
2440	2386		know or could not have known that the vehicle would be
2441	2387		exported if the vehicle is titled and registered in
2442	2388		any state of the United States, or
2443	2389		i. (1) notwithstanding the terms of a franchise
2444	2390		agreement or other agre ement except as provided
2445	2391		by this subsection, requires a new motor vehicle
2446	2392		dealer to purchase or utilize goods or services,
2447	2393		or contract with any vendor, identified, selected
2448	2394		or designated by the factory for the:
2449	2395		(a) operation of the dealership including
2450	2396		electronic services such as websites , data
2451	2397		management or storage systems, digital
2452	2398		retail platforms, software, or other digital
2453	2399		services or platforms, or
2454	2400		(b) construction, renovation, or improvement of
2455	2401		the new motor vehicle dealer's facility from
2456	2402		a vendor chosen by the factory if goods or
2457	2403		services available from other sources a
2458	2404		vendor that the new motor vehicle dealer
2459	2405		chooses, are of substantially similar
2460	2406
2461		-	SENATE FLOOR VERSION - HB2158 SFLR Page 49
2462		-	(Bold face denotes Committee Amendments) 1
	2407	+	ENGR. H. B. NO. 2158 Page 49 1
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2486	2431
2487	2432		quality, function, and design, and comply
2488	2433		with all applicable laws; provided, however,
2489	2434		that such goods are not subject to the
2490	2435		factory's intellectual property or trademark
2491	2436		rights and the new motor vehicle dealer has
2492	2437		received the factory's approval, which
2493	2438		approval may not be unreasonably withheld.
2494	2439		Nothing in this subparagraph may be
2495	2440		construed to allow a new moto r vehicle
2496	2441		dealer to impair or eli minate a factory's
2497	2442		intellectual property, trademark rights, or
2498	2443		trade dress usage guidelines . Nothing in
2499	2444		this section subdivision or subdivision a of
2500	2445		this division prohibits the enforcement of a
2501	2446		voluntary agreement between the factory and
2502	2447		the new motor vehicle dealer where separate
2503	2448		and valuable consideration has been offered
2504	2449		and accepted. It is a violation of this
2505	2450		subdivision or subdivision a of this
2506	2451		division for a factory, or any entity that
2507	2452		acts on behalf of, a factory to coerce a new
2508	2453		motor vehicle dealer to purchase or utilize
2509	2454		certain goods or services by the withholding
2510	2455
2511		-	SENATE FLOOR VERSION - HB2158 SFLR Page 50
2512		-	(Bold face denotes Committee Amendments) 1
	2456	+	ENGR. H. B. NO. 2158 Page 50 1
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2536	2480
2537	2481		vehicle allocation the new motor vehicle
2538	2482		dealer is otherwise eligible to receive, and
2539	2483		(2) for the purposes of this subparagraph, "goods and
2540	2484		services" do not include:
2541	2485		(a) moveable displays, brochures, promotional
2542	2486		materials, or electronic or digital media
2543	2487		containing material subject to the
2544	2488		intellectual property rights of a factory or
2545	2489		parts to be used in repairs under warranty
2546	2490		obligations of a factory, or
2547	2491		(b) special tools or training requir ed by the
2548	2492		factory to perform warranty or recall
2549	2493		repairs;
2550	2494		10. Being a factory that:
2551	2495		a. establishes a system of motor vehicle allocation or
2552	2496		distribution which is unfair, inequitable, or
2553	2497		unreasonably discriminatory. A manufacturer and
2554	2498		distributor shall main tain for three (3) years records
2555	2499		that describe its methods or formula of allocation and
2556	2500		distribution of its motor vehicles and records of its
2557	2501		actual allocation and distribution of motor vehicles
2558	2502		to its motor vehicle dealers . Upon the written
2559	2503		request of any new motor vehicle dealer franchised by
2560	2504		the manufacturer or distributor, received by the
2561	2505
2562		-	SENATE FLOOR VERSION - HB2158 SFLR Page 51
2563		-	(Bold face denotes Committee Amendments) 1
	2506	+	ENGR. H. B. NO. 2158 Page 51 1
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2587	2530
2588	2531		manufacturer or distributor within thirty (30) days of
2589	2532		the manufacturer's or distributor's written notice to
2590	2533		the dealer of its intention to cancel or terminate, or
2591	2534		written notice from the manufacturer or distributor of
2592	2535		a sales performance deficiency requiring the dealer to
2593	2536		take action to cure the alleged performance
2594	2537		deficiency, a manufacturer or distributor shall
2595	2538		disclose in writing to the new motor vehicle dealer
2596	2539		the basis upon which new motor vehicles are allocated,
2597	2540		scheduled, and delivered, by vehicle model, to new
2598	2541		motor vehicle dealers of the same line -make for that
2599	2542		manufacturer or distributor for the prior three (3)
2600	2543		years, and the basis upon which the current alloc ation
2601	2544		or distribution is being made or will be made based on
2602	2545		existing information to such dealer, or
2603	2546		b. changes an established plan or system of motor vehicle
2604	2547		distribution. A new motor vehicle dealer franchise
2605	2548		agreement shall continue in full force and op eration
2606	2549		notwithstanding a change, in whole or in part, of an
2607	2550		established plan or system of distribution of the
2608	2551		motor vehicles offered or previously offered for sale
2609	2552		under the franchise agreement. The appointment of a
2610	2553		new importer or distributor for motor vehicles offered
2611	2554		for sale under the franchise agreement shall be deemed
2612	2555
2613		-	SENATE FLOOR VERSION - HB2158 SFLR Page 52
2614		-	(Bold face denotes Committee Amendments) 1
	2556	+	ENGR. H. B. NO. 2158 Page 52 1
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2632	2574		19
2633	2575		20
2634	2576		21
2635	2577		22
2636	2578		23
2637	2579		24
2638	2580
2639	2581		to be a change of an established plan or system of
2640	2582		distribution. The discontinuation of a line -make
2641	2583		shall not be deemed to be a change of an establish ed
2642	2584		plan or system of motor vehicl e distribution. The
2643	2585		creation of a line-make shall not be deemed to be a
2644	2586		change of an established plan or system of motor
2645	2587		vehicle distribution as long as the new line -make is
2646	2588		not selling the same, or substantially the same
2647	2589		vehicle or vehicles previously so ld through another
2648	2590		line-make by new motor vehicle dealers with an active
2649	2591		franchise agreement for the other line -make in the
2650	2592		state if such new motor vehicle dealers are no longer
2651	2593		authorized to sell the comparable vehicle pre viously
2652	2594		sold through their line -make. Changing a vehicle's
2653	2595		powertrain is not sufficient to show it is
2654	2596		substantially different. Upon the occurrence of such
2655	2597		change, the manufacturer or distributor shall be
2656	2598		prohibited from obtaining a license to distribute
2657	2599		vehicles under the new plan or sy stem of distribution
2658	2600		unless the manufacturer or distributor offers to each
2659	2601		new motor vehicle dealer who is a party to the
2660	2602		franchise agreement a new franchise agreement
2661	2603		containing substantially the same provisions which
2662	2604		were contained in the previous franch ise agreement;
2663	2605
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2666	2607		2
2667	2608		3
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2669	2610		5
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2671	2612		7
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2680	2621		16
2681	2622		17
2682	2623		18
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2685	2626		21
2686	2627		22
2687	2628		23
2688	2629		24
2689	2630
2690	2631		11. Being a factory that sells directly or indirectly new motor
2691	2632		vehicles to any retail consumer in the state except through a new
2692	2633		motor vehicle dealer holding a franchise for the line -make that
2693	2634		includes the new motor vehicle. This paragrap h does not apply to
2694	2635		factory sales of new motor vehicles to its employees, family members
2695	2636		of employees, retirees and family members of retirees, not -for-
2696	2637		profit organizations, or the federal, state, or local governments.
2697	2638		The provisions of this paragraph sha ll not preclude a factory from
2698	2639		providing information to a consumer for the purpose of marketing or
2699	2640		facilitating a sale of a new motor vehicle or from establishing a
2700	2641		program to sell or offer to sell new motor vehicles through
2701	2642		participating dealers subject t o the limitations provided in
2702	2643		paragraph 2 of Section 562 of this title;
2703	2644		12. a. Being a factory which directly or indirectly:
2704	2645		(1) owns any ownership interest or has any financial
2705	2646		interest in a new motor vehicle dealer or any
2706	2647		person who sells products or ser vices pursuant to
2707	2648		the terms of the franchise agreement,
2708	2649		(2) operates or controls a new motor vehicle dealer,
2709	2650		or
2710	2651		(3) acts in the capacity of a new motor vehicle
2711	2652		dealer.
2712	2653		b. (1) This paragraph does not prohibit a factory from
2713	2654		owning or controlling a new motor vehicle dealer
2714	2655
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2717	2657		2
2718	2658		3
2719	2659		4
2720	2660		5
2721	2661		6
2722	2662		7
2723	2663		8
2724	2664		9
2725	2665		10
2726	2666		11
2727	2667		12
2728	2668		13
2729	2669		14
2730	2670		15
2731	2671		16
2732	2672		17
2733	2673		18
2734	2674		19
2735	2675		20
2736	2676		21
2737	2677		22
2738	2678		23
2739	2679		24
2740	2680
2741	2681		while in a bona fide relationship with a dealer
2742	2682		development candidate who has made a substantial
2743	2683		initial investment in the franchise and whose
2744	2684		initial investment is subject to potential loss.
2745	2685		The dealer development candidate can reasonably
2746	2686		expect to acquire full ownership of a new motor
2747	2687		vehicle dealer within a reasonable period of time
2748	2688		not to exceed ten (10) years and on reasonable
2749	2689		terms and conditions. The ten -year acquisition
2750	2690		period may be expanded for good cause shown.
2751	2691		(2) This paragraph does not prohibit a factory from
2752	2692		owning, operating, controlling, or acting in the
2753	2693		capacity of a new motor vehicle dealer for a
2754	2694		period not to exceed twelve (12) months during
2755	2695		the transition from one independent dealer to
2756	2696		another independent dealer if the dealership is
2757	2697		for sale at a reasonable price and on reasonable
2758	2698		terms and conditions to an independent qualified
2759	2699		buyer. On showing by a factory of good cause,
2760	2700		the Oklahoma New Motor Vehicle Commission may
2761	2701		extend the time limit set forth above; extensions
2762	2702		may be granted for periods not to exceed twelve
2763	2703		(12) months.
2764	2704
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2767	2706		2
2768	2707		3
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2770	2709		5
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2778	2717		13
2779	2718		14
2780	2719		15
2781	2720		16
2782	2721		17
2783	2722		18
2784	2723		19
2785	2724		20
2786	2725		21
2787	2726		22
2788	2727		23
2789	2728		24
2790	2729
2791	2730		(3) This paragraph does not prohibit a factory from
2792	2731		owning, operating, or controlling or acting in
2793	2732		the capacity of a new motor vehicle dealer which
2794	2733		was in operation prior to January 1, 2000.
2795	2734		(4) This paragraph does not prohibit a factory from
2796	2735		owning, directly or indirectly, a minority
2797	2736		interest in an entity that owns, operates, or
2798	2737		controls motor vehicle dealerships of the same
2799	2738		line-make franchised by the manufacturer,
2800	2739		provided that each of the follo wing conditions
2801	2740		are met:
2802	2741		(a) all of the new motor vehicle dealerships
2803	2742		selling the motor vehicles of that
2804	2743		manufacturer in this state trade exclusively
2805	2744		in the line-make of that manufacturer,
2806	2745		(b) all of the franchise agreement s of the
2807	2746		manufacturer confer righ ts on the dealer of
2808	2747		the line-make to develop and operate, within
2809	2748		a defined geographic territory or area, as
2810	2749		many dealership facilities as the dealer and
2811	2750		manufacturer shall agree are appropriate,
2812	2751		(c) at the time the manufacturer first acquires
2813	2752		an ownership interest or assumes operation,
2814	2753		the distance between any dealership thus
2815	2754
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2818	2756		2
2819	2757		3
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2821	2759		5
2822	2760		6
2823	2761		7
2824	2762		8
2825	2763		9
2826	2764		10
2827	2765		11
2828	2766		12
2829	2767		13
2830	2768		14
2831	2769		15
2832	2770		16
2833	2771		17
2834	2772		18
2835	2773		19
2836	2774		20
2837	2775		21
2838	2776		22
2839	2777		23
2840	2778		24
2841	2779
2842	2780		owned or operated and the nearest
2843	2781		unaffiliated new motor vehicle dealership
2844	2782		trading in the same line -make is not less
2845	2783		than seventy (70) miles,
2846	2784		(d) during any period in which the manufa cturer
2847	2785		has such an ownership interest, the
2848	2786		manufacturer has no more than three
2849	2787		franchise agreements with new motor vehicle
2850	2788		dealers licensed by the Oklahoma New Motor
2851	2789		Vehicle Commission to do business within the
2852	2790		state, and
2853	2791		(e) prior to January 1, 2000, the factory shall
2854	2792		have furnished or made available to
2855	2793		prospective new motor vehicle dealers an
2856	2794		offering circular in accordance with the
2857	2795		Trade Regulation Rule on Franchising of the
2858	2796		Federal Trade Commission, and any guidelines
2859	2797		and exemptions issued thereunder, w hich
2860	2798		disclose the possibility that the factory
2861	2799		may from time to time seek to own or
2862	2800		acquire, directly or indirectly, ownership
2863	2801		interests in retail dealerships;
2864	2802		13. Being a factory which directly or indirectly makes
2865	2803		available for public disclosure any prop rietary information provided
2866	2804
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2870	2807		3
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2872	2809		5
2873	2810		6
2874	2811		7
2875	2812		8
2876	2813		9
2877	2814		10
2878	2815		11
2879	2816		12
2880	2817		13
2881	2818		14
2882	2819		15
2883	2820		16
2884	2821		17
2885	2822		18
2886	2823		19
2887	2824		20
2888	2825		21
2889	2826		22
2890	2827		23
2891	2828		24
2892	2829
2893	2830		to the factory by a new motor vehicle dealer, other than in
2894	2831		composite form to new motor vehicle dealers in the same line -make or
2895	2832		in response to a subpoena or order of the Commission or a court.
2896	2833		Proprietary information includes , but is not limited to,
2897	2834		information:
2898	2835		a. derived from monthly financial statements provided to
2899	2836		the factory, and
2900	2837		b. regarding any aspect of the profitability of a
2901	2838		particular new motor vehicle dealer;
2902	2839		14. Being a factory which does not provide or direct lea ds in a
2903	2840		fair, equitable, and timely manner. Nothing in this paragraph shall
2904	2841		be construed to require a factory to disregard the preference of a
2905	2842		consumer in providing or directing a lead;
2906	2843		15. Being a factory which used the consumer list of a new motor
2907	2844		vehicle dealer for the purpose of unfairly competing with dealers;
2908	2845		16. Being a factory which prohibits a new motor vehicle dealer
2909	2846		from relocating after a written request by such new motor vehicle
2910	2847		dealer if:
2911	2848		a. the facility and the proposed new location satisf ies
2912	2849		or meets the written reasonable guidelines of the
2913	2850		factory. Reasonable guidelines do not include
2914	2851		exclusivity or site control unless agreed to as set
2915	2852		forth in subparagraphs f and g of paragraph 9 of this
2916	2853		subsection,
2917	2854
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	2855	+	ENGR. H. B. NO. 2158 Page 58 1
2920	2856		2
2921	2857		3
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2923	2859		5
2924	2860		6
2925	2861		7
2926	2862		8
2927	2863		9
2928	2864		10
2929	2865		11
2930	2866		12
2931	2867		13
2932	2868		14
2933	2869		15
2934	2870		16
2935	2871		17
2936	2872		18
2937	2873		19
2938	2874		20
2939	2875		21
2940	2876		22
2941	2877		23
2942	2878		24
2943	2879
2944	2880		b. the proposed new location is withi n the area of
2945	2881		responsibility of the new motor vehicle dealer
2946	2882		pursuant to Section 578.1 of this title, and
2947	2883		c. the factory has sixty (60) days from receipt of the
2948	2884		new motor vehicle dealer's relocation request to
2949	2885		approve or deny the request. The failure to a pprove
2950	2886		or deny the request within the sixty -day time frame
2951	2887		shall constitute approval of the request;
2952	2888		17. Being a factory which prohibits a new motor vehicle dealer
2953	2889		from adding additional line -makes to its existing facility , if,
2954	2890		after adding the additional line-makes, the facility satisfies the
2955	2891		written reasonable capitalization standards and facility guidelines
2956	2892		of each factory. Reasonable facility guidelines do not include a
2957	2893		requirement to maintain exclusivity or site control unless agreed to
2958	2894		by the dealer as set forth in subparagraphs f and g of paragraph 9
2959	2895		of this subsection;
2960	2896		18. Being a factory that increases prices of new motor vehicles
2961	2897		which the new motor vehicle dealer had ordered for retail consumers
2962	2898		and notified the factory prior to the new motor v ehicle dealer's
2963	2899		receipt of the written official price increase notification. A
2964	2900		sales contract signed by a retail consumer accompanied with proof of
2965	2901		order submission to the factory shall constitute evidence of each
2966	2902		such order, provided that the vehicle is in fact delivered to the
2967	2903		consumer. Price differences applicable to new models or series
2968	2904
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2971	2906		2
2972	2907		3
2973	2908		4
2974	2909		5
2975	2910		6
2976	2911		7
2977	2912		8
2978	2913		9
2979	2914		10
2980	2915		11
2981	2916		12
2982	2917		13
2983	2918		14
2984	2919		15
2985	2920		16
2986	2921		17
2987	2922		18
2988	2923		19
2989	2924		20
2990	2925		21
2991	2926		22
2992	2927		23
2993	2928		24
2994	2929
2995	2930		motor vehicles at the time of the introduction of new models or
2996	2931		series shall not be considered a price increase for purposes of this
2997	2932		paragraph. Price changes caused b y any of the following shall not
2998	2933		be subject to the provisions of this paragraph:
2999	2934		a. the addition to a motor vehicle of required or
3000	2935		optional equipment pursuant to state or federal law,
3001	2936		b. revaluation of the United States dollar in the case of
3002	2937		foreign-made vehicles or components, or
3003	2938		c. an increase in transportation charges due to increased
3004	2939		rates imposed by common or contract carriers;
3005	2940		19. Being a factory that requires a new motor vehicle dealer to
3006	2941		participate monetarily in an advertising campaign or contest, or
3007	2942		purchase any promotional materials, showroom, or other display
3008	2943		decoration or materials at the expense of the new motor vehicle
3009	2944		dealer without consent of the new motor vehicle dealer, which
3010	2945		consent shall not be unreasonably withheld;
3011	2946		20. Being a factory that denies any new motor vehicle dealer
3012	2947		the right of free association with any other new motor vehicle
3013	2948		dealer for any lawful purpose, unless otherwise permitted by this
3014	2949		chapter; or
3015	2950		21. Being a factory that requires a ne w motor vehicle dealer to
3016	2951		sell, offer to sell, or sell exclusively an extended service
3017	2952		contract, extended maintenance plan, or similar product, such as gap
3018	2953
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3021	2955		2
3022	2956		3
3023	2957		4
3024	2958		5
3025	2959		6
3026	2960		7
3027	2961		8
3028	2962		9
3029	2963		10
3030	2964		11
3031	2965		12
3032	2966		13
3033	2967		14
3034	2968		15
3035	2969		16
3036	2970		17
3037	2971		18
3038	2972		19
3039	2973		20
3040	2974		21
3041	2975		22
3042	2976		23
3043	2977		24
3044	2978
3045	2979		products offered, endorsed, or sponsored by the factory by the
3046	2980		following means:
3047	2981		a. by an act or statement from the factory that will in
3048	2982		any manner adversely impact the new motor vehicle
3049	2983		dealer, or
3050	2984		b. by measuring the new motor vehicle dealer's
3051	2985		performance under the franchise based on the sale of
3052	2986		extended service contracts, extended maintenance
3053	2987		plans, or similar products offered, endorse d, or
3054	2988		sponsored by the manufacturer or distributor ;
3055	2989		22. Being a factory that requires or coerces a new motor
3056	2990		vehicle dealer in this state to purchase or lease any electric
3057	2991		vehicle charging stations at the new motor vehicle dealer's expense
3058	2992		unless the franchise agreement, including any related addendums,
3059	2993		with the new motor vehicle dealer identifies electric vehicle models
3060	2994		among the vehicles available for sale under the dealer’s franchised
3061	2995		line-make, or the new motor vehicle dealer has notified the
3062	2996		manufacturer or distributor of the new motor vehicle dealer's
3063	2997		intention to begin selling and servicing electric vehicles
3064	2998		manufactured or distributed by that factory. If the new motor
3065	2999		vehicle dealer's franchise identifies electric vehicle models or the
3066	3000		dealer is actually offering for sale to the public or providing
3067	3001		warranty service on electric vehicles manufactured or distributed by
3068	3002
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3071	3004		2
3072	3005		3
3073	3006		4
3074	3007		5
3075	3008		6
3076	3009		7
3077	3010		8
3078	3011		9
3079	3012		10
3080	3013		11
3081	3014		12
3082	3015		13
3083	3016		14
3084	3017		15
3085	3018		16
3086	3019		17
3087	3020		18
3088	3021		19
3089	3022		20
3090	3023		21
3091	3024		22
3092	3025		23
3093	3026		24
3094	3027
3095	3028		that factory, the new motor vehicle dealer may not be required to
3096	3029		purchase or lease, at the new motor vehicle dealer's expense:
3097	3030		a. more than the number and type of electric vehicle
3098	3031		charging stations based upon the reasonable estimate
3099	3032		dealer sales and service volume for those vehicles in
3100	3033		the dealer's market, or
3101	3034		b. to make electric vehicle charging stations located at
3102	3035		the new motor vehicle dealership available for use by
3103	3036		the general public. Nothing in this paragraph shall
3104	3037		prohibit a factory from offering financial assistance
3105	3038		through a lump-sum payment to new motor vehicle
3106	3039		dealers that purchase or install ele ctric charging
3107	3040		stations; and
3108	3041		23. Being a factory that withdraws all or a material part of
3109	3042		its stated electric vehicle distribution plan and fails or refuses,
3110	3043		at the written request of the new motor vehicle dealer, to accept
3111	3044		the return or otherwise fully reimburse a new motor vehicle deal er
3112	3045		for the cost of parts, tools, equipment, chargers and other
3113	3046		returnable items required as a part of that distribution plan,
3114	3047		program, policy or other initiative related to the sale or service
3115	3048		of electric motor vehicles, pr ovided that:
3116	3049		a. the dealer demonstrates that the volume of electric
3117	3050		motor vehicle sales or service is no longer adequate
3118	3051		to allow the dealer to realize a positive return on
3119	3052
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3122	3054		2
3123	3055		3
3124	3056		4
3125	3057		5
3126	3058		6
3127	3059		7
3128	3060		8
3129	3061		9
3130	3062		10
3131	3063		11
3132	3064		12
3133	3065		13
3134	3066		14
3135	3067		15
3136	3068		16
3137	3069		17
3138	3070		18
3139	3071		19
3140	3072		20
3141	3073		21
3142	3074		22
3143	3075		23
3144	3076		24
3145	3077
3146	3078		the investment over the useful life of the parts,
3147	3079		tools, equipment, chargers, or other returnable items,
3148	3080		and
3149	3081		b. the dealer submits its request to the manufacturer or
3150	3082		distributor in writing and within twenty -four (24)
3151	3083		months of dealer's receipt of the part, tools,
3152	3084		equipment, charger or other returnable items .
3153	3085		B. Notwithstanding the terms of any franchise agreement, in t he
3154	3086		event of a proposed sale or transfer of a dealership, the
3155	3087		manufacturer or distributor shall be permitted to exercise a right
3156	3088		of first refusal to acquire the assets or ownership interest of the
3157	3089		dealer of the new motor vehicle dealership, if such sale or transfer
3158	3090		is conditioned upon the manufacturer or dealer entering into a
3159	3091		dealer agreement with the proposed new owner or transferee, only if
3160	3092		all the following requirements are met:
3161	3093		1. To exercise its right of first refusal, the factory must
3162	3094		notify the new motor vehicle dealer in writing within sixty (60)
3163	3095		days of receipt of the completed proposal for the proposed sale
3164	3096		transfer;
3165	3097		2. The exercise of the right of first refusal will result in
3166	3098		the new motor vehicle dealer and the owner of the dealership
3167	3099		receiving the same or greater consideration as they have contracted
3168	3100		to receive in connection with the proposed change of ownership or
3169	3101		transfer;
3170	3102
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3172		-	(Bold face denotes Committee Amendments) 1
	3103	+	ENGR. H. B. NO. 2158 Page 63 1
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3197	3128		3. The proposed sale or transfer of the dealership does not
3198	3129		involve the transfer or sal e to a member or members of the f amily of
3199	3130		one or more dealer owners, or to a qualified manager or a
3200	3131		partnership or corporation controlled by such persons; and
3201	3132		4. The factory agrees to pay the reasonable expenses, including
3202	3133		attorney fees which do not exceed the usual, customary, and
3203	3134		reasonable fees charged for similar work done for other clients
3204	3135		incurred by the proposed new owner and transferee prior to the
3205	3136		exercise by the factory of its right of first refusal in negotiating
3206	3137		and implementing the contract fo r the proposed sale or transfer o f
3207	3138		the dealership or dealership assets. Notwithstanding the foregoing,
3208	3139		no payment of expenses and attorney fees shall be required if the
3209	3140		proposed new dealer or transferee has not submitted or caused to be
3210	3141		submitted an accounting of those expenses within th irty (30) days of
3211	3142		receipt of the written request of the factory for such an
3212	3143		accounting. The accounting may be requested by a factory before
3213	3144		exercising its right of first refusal.
3214	3145		C. Nothing in this section shall prohibit, limit, restrict, or
3215	3146		impose conditions on:
3216	3147		1. Business activities, including without limitation the
3217	3148		dealings with motor vehicle manufacturers and the representatives
3218	3149		and affiliates of motor vehicle manufacturers, of any person that is
3219	3150		primarily engaged in the business of short -term, not to exceed
3220	3151		twelve (12) months, rental of motor vehicles and industrial and
3221	3152
3222		-	SENATE FLOOR VERSION - HB2158 SFLR Page 64
3223		-	(Bold face denotes Committee Amendments) 1
	3153	+	ENGR. H. B. NO. 2158 Page 64 1
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3248	3178		construction equipment and activities incidental to that business,
3249	3179		provided that:
3250	3180		a. any motor vehicle sold by that person is limited to
3251	3181		used motor vehicles that have been previously used
3252	3182		exclusively and regularly by that person in the
3253	3183		conduct of business and used motor vehicles traded in
3254	3184		on motor vehicles sold by that person,
3255	3185		b. warranty repairs performed by that person on motor
3256	3186		vehicles are limited to those motor vehicles that the
3257	3187		person owns, previously owned, or takes in trade, and
3258	3188		c. motor vehicle financing provided by that person to
3259	3189		retail consumers for motor vehicles is limited to used
3260	3190		vehicles sold by that person in the conduct of
3261	3191		business; or
3262	3192		2. The direct or indirect ownersh ip, affiliation, or control of
3263	3193		a person described in paragraph 1 of this subsection.
3264	3194		D. As used in this section:
3265	3195		1. "Substantially relates" means the nature of criminal conduct
3266	3196		for which the person was convicted has a direct bearing on the
3267	3197		fitness or ability to perform one or more of the duties or
3268	3198		responsibilities necessarily related to the occupation; and
3269	3199		2. "Poses a reasonable threat" means the nature of criminal
3270	3200		conduct for which the person was convicted involved an ac t or threat
3271	3201
3272		-	SENATE FLOOR VERSION - HB2158 SFLR Page 65
3273		-	(Bold face denotes Committee Amendments) 1
	3202	+	ENGR. H. B. NO. 2158 Page 65 1
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3298	3227		of harm against anoth er and has a bearing on the fitness or ability
3299	3228		to serve the public or work with others in the occupation.
3300	3229		E. Nothing in this section shall prohibit a manufacturer or
3301	3230		distributor from requiring a dealer to be in compliance with the
3302	3231		franchise agreement and authorized to sell a make and model based on
3303	3232		applicable reasonable standards and requirements that include but
3304	3233		are not limited to any facility, technology, or training
3305	3234		requirements necessary to sell or service a vehicle, in order to be
3306	3235		eligible for deliver y or allotment of a make or model of a new motor
3307	3236		vehicle or an incentive.
3308	3237		SECTION 5. This act shall become effective November 1, 2025.
3309		-	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND INSURANCE
3310		-	April 17, 2025 - DO PASS
	3238	+	Passed the House of Representatives the 25th day of March, 2025.
	3239	+
	3240	+
	3241	+
	3242	+
	3243	+	Presiding Officer of the House
	3244	+	of Representatives
	3245	+
	3246	+
	3247	+
	3248	+	Passed the Senate the ___ day of __________, 2025.
	3249	+
	3250	+
	3251	+
	3252	+
	3253	+	Presiding Officer of the Senate
	3254	+
	3255	+