Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB604 Compare Versions

Version 1 (Old)

Version 2 (New)

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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 60th Legislature (2025)
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35	28		ENGROSSED SENATE
36	29		BILL NO. 604 By: Gollihare of the Senate
37	30
38	31		and
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40	33		Dobrinski of the House
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45	38		An Act relating to motor vehicles; amending 47 O.S.
46	39		2021, Sections 562 and 564, as last amended by
47	40		Sections 2 and 4, Chapter 240, O.S.L. 2024 (47 O.S.
48	41		Supp. 2024, Sections 562 and 564), which relate to
49	42		definitions and licenses; modifying definitions;
50	43		defining terms; modifying list of entities requiring
51	44		licensure; removing certain exception; amending
52	45		Section 1, Chapter 29, O.S.L. 2023 (47 O.S. Supp.
53	46		2024, Section 564.3), which relates to dealer
54	47		management system providers; modifying definitions;
55	48		requiring certain commercially reasonable data
56	49		security standards; modifying entities not liable for
57	50		certain actions; modifying entities required to
58	51		provide certain indemni fication; prohibiting certain
59	52		actions by certain entities; defining certain term;
60	53		amending 47 O.S. 2021, Section 565, as last amended
61	54		by Section 7, Chapter 240, O.S.L. 2024 (47 O.S. Supp.
62	55		2024, Section 565), which relates to the denial,
63	56		revocation, or suspension of license; modifying
64	57		reasons for which a license may be denied, revoked,
65	58		or suspended; defining term; removing language
66	59		requiring certain dealer compliance; and providing an
67	60		effective date.
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73	66		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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101	67		SECTION 1. AMENDATORY 47 O.S. 2021, Section 562, as last
102	68		amended by Section 2, Chapter 240, O.S.L. 2024 (47 O.S. Supp. 2024,
103	69		Section 562), is amended to read as follows:
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104	96		Section 562. The following words, terms, and phrases, when used
105	97		in Sections 561 through 567, 572, 578.1, 579, and 579.1 of this
106	98		title, shall have the meanings respectively ascribed to them in this
107	99		section, except where the context clearly indicates a diff erent
108	100		meaning:
109	101		1. “Motor vehicle” means any motor-driven vehicle required to
110	102		be registered under the Oklahoma Vehicle License and Registration
111	103		Act. The term motor vehicle does not include:
112	104		a. recreational vehicles, as defined in the Recreational
113	105		Vehicle Franchise Act, or
114	106		b. powersport vehicles;
115	107		2. “New motor vehicle dealer” means any person, firm,
116	108		association, corporation, or trust not excluded by this paragraph
117	109		who sells, offers for sale, advertises to sell, receives deposits
118	110		for vehicles, leases, or displays new motor vehicles and holds a
119	111		bona fide contract or franchise in effect with a manufacturer or
120	112		distributor authorized by the manufacturer to make predelivery
121	113		preparation of such vehicles sold to purchasers and to perform post -
122	114		sale work pursuant to the manufacturer ’s or distributor’s warranty.
123	115		As used herein, “authorized predelivery preparation ” means the
124	116		rendition by the dealer of services and safety adjustments on each
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152	117		new motor vehicle in accordance with the procedure and safety
153	118		standards required by the manufacturer of the vehicle to be made
154	119		before its delivery to the purchaser. “Performance of authorized
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155	146		post-sale work pursuant to the warranty ”, as used herein, means the
156	147		rendition of services which are required by the terms of the
157	148		warranty that stands extended to the vehicle at the time of its sale
158	149		and are to be made in accordance with the safety standards
159	150		prescribed by the manufacturer. The term includes premises or
160	151		facilities at which a person engages only in the repair of motor
161	152		vehicles if repairs are performed pursuant to the terms of a
162	153		franchise and motor vehicle manufacturer ’s warranty. For the
163	154		purpose of Sections 561 through 567, 572, 578.1, 579, and 579.1 of
164	155		this title, the terms new motor vehicle dealer and “new motor
165	156		vehicle dealership” shall be synonymous. The term new motor vehicle
166	157		dealer does not include:
167	158		a. receivers, trustees, administrators, executors,
168	159		guardians, or other persons appointed by or acting
169	160		under judgment or order of any court,
170	161		b. public officers while performing or in operation of
171	162		their duties,
172	163		c. employees of persons, corp orations, or associations
173	164		enumerated in subparagraph a of this paragraph when
174	165		engaged in the specific performance of their duties as
175	166		such employees, or
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177		-	SB604 HFLR Page 4
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203	167		d. a powersports vehicle dealer;
204	168		3. “Motor vehicle salesperson ” means any person, resident or
205	169		nonresident, who, for gain or compensation of any kind, either
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206	196		directly or indirectly, regularly or occasionally, by any form of
207	197		agreement or arrangement, sells or negotiates for the sale, lease,
208	198		or conveyance or arranges the financing of any new motor vehicle or
209	199		powersports vehicle as an employee for any new motor vehicle dealer
210	200		or powersports dealer to any one or more third parties;
211	201		4. “Commission” means the Oklahoma New Motor Vehicle
212	202		Commission;
213	203		5. “Manufacturer” means any person, firm, association,
214	204		corporation, or partnership, trust, joint venture, or common entity
215	205		thereof, resident or nonresident, that manufactures or assembles new
216	206		and unused motor vehicles or new and unused powersport vehicles or
217	207		that engages in the fabrication or assembly of motorized vehicl es of
218	208		a type required to be registered in this state;
219	209		6. “Distributor” means any person, firm, association,
220	210		corporation, or partnership, trust, joint venture, or common entity
221	211		thereof, resident or nonresident, that, being authorized by the
222	212		original manufacturer, in whole or in part sells or distributes new
223	213		and unused motor vehicles to new motor vehicle dealers or powersport
224	214		dealers, or that maintains distributor representatives;
225	215		7. “Factory branch” means any branch office maintained by a
226	216		person, firm, association, corporation, or partnership, trust, joint
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254	217		venture, or common entity thereof that manufactures or assembles
255	218		motor vehicles or powersport vehicles for the sale of motor vehicles
256	219		or powersport vehicles to distributors, or for the sale of motor
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257	246		vehicles to new motor vehicle dealers, or for the sale of powersport
258	247		vehicles to new powersport vehicle dealers, or for directing or
259	248		supervising, in whole or in part, its representatives;
260	249		8. “Distributor branch” means any branch office similarly
261	250		maintained by a distributor for the same purposes a factory branch
262	251		is maintained;
263	252		9. “Factory representative ” means any officer or agent engaged
264	253		as a representative of a manufacturer of motor vehicles or
265	254		powersport vehicles or by a factory branch, for the purpose of
266	255		making or promoting the sale of its motor vehicles or powersport
267	256		vehicles, or for supervising or contacting its dealers or
268	257		prospective dealers;
269	258		10. “Distributor representative ” means any person, fir m,
270	259		association, corporation, or partnership, trust, joint venture, or
271	260		common entity thereof, and each officer and employee thereof engaged
272	261		as a representative of a distributor or distributor branch of motor
273	262		vehicles or powersport vehicles, for the purpose of making or
274	263		promoting the sale of its motor vehicles or po wersport vehicles, or
275	264		for supervising or contacting its dealers or prospective dealers;
276	265		11. “Franchise” means any contract or agreement between a new
277	266		motor vehicle dealer or a powersports vehicle dealer and a
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305	267		manufacturer of a new motor vehicle or powersp orts vehicle or its
306	268		distributor or factory branch by which the new motor vehicle dealer
307	269		or new powersports vehicle dealer is authorized to engage in the
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308	296		activities of a new motor vehicle dealer or new powersports vehicle
309	297		dealer as defined by this section;
310	298		12. “New or unused motor vehicle ” means a vehicle which is in
311	299		the possession of the manufacturer or distributor or has been sold
312	300		only to the holder of a valid franchise granted by the manufacturer
313	301		or distributor for the sale of that make of new vehicle so long as
314	302		the manufacturer’s statement of origin has not been assigned to
315	303		anyone other than a licensed franchised new motor vehicle dealer of
316	304		the same line-make;
317	305		13. “Area of responsibility ” means the geographical area, as
318	306		designated by the manufacturer, f actory branch, factory
319	307		representative, distributor, distributor branch, or distributor
320	308		representative, in which the new motor vehicle dealer or powersports
321	309		dealer is held responsible for the promot ion and development of
322	310		sales and rendering of service for t he make of motor vehicle or
323	311		powersports vehicle for which the new motor vehicle dealer or new
324	312		powersports vehicle dealer holds a franchise or selling agreement;
325	313		14. “Off premises” means at a location other than the address
326	314		designated on the new motor vehi cle dealer’s or new powersports
327	315		vehicle dealer’s license;
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355	316		15. “Sponsoring entity” means any person, firm, association,
356	317		corporation, or trust which has control, either permanently or
357	318		temporarily, over the real property upon which the off -premises sale
358	319		or display is conducted;
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359	346		16. “Product” means new motor vehicles and new motor vehicle
360	347		parts or new powersports vehicle and new powersports vehicle parts;
361	348		17. “Service” means motor vehicle or powersports vehicle
362	349		warranty repairs including both parts and labor ;
363	350		18. “Lead” means a consumer contact in response to a factory
364	351		program designed to generate interest in purchasing or leasing a new
365	352		motor vehicle or new powersports vehicle;
366	353		19. “Sell” or “sale” means to sell or lease;
367	354		20. “Factory” means a manufacturer , distributor, factory
368	355		branch, distributor branch ,; any common entity of a manufacturer,
369	356		distributor, factory branch, or distributor branch; or factory
370	357		representative, or distributor representative, which manufactures or
371	358		distributes vehicle products;
372	359		21. “Powersports vehicle” means any new or unused motorcycles,
373	360		scooters, mopeds, all -terrain vehicles, and utility vehicles
374	361		required to be registered under the Oklahoma Vehicle License and
375	362		Registration Act, with the exception of all -terrain vehicles,
376	363		utility vehicles, and motorcycles used exclusively for off -road use
377	364		which are sold by a retail implement dealer;
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405	365		22. “Powersports vehicle dealer ” means any person, firm, or
406	366		corporation, resident or nonresident, that is in the business of
407	367		selling any new powersport s vehicles except for retail implement
408	368		dealers;
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409	395		23. “Retail implement dealer ” means a business engaged
410	396		primarily in the sale of farm tractors as defined in Section 1 -118
411	397		of this title or implement s of husbandry as defined in Section 1 -125
412	398		of this title or a combination thereof and is exempt from licensing
413	399		by the Commission for the sale of all -terrain vehicles, utility
414	400		vehicles, and motorcycles used exclusively for off -road use;
415	401		24. “Consumer data” means nonpublic personal information as
416	402		defined in 15 U.S.C., Section 6809(4) as it existed on January 1,
417	403		2023, that is:
418	404		a. collected by a new motor vehicle dealer, and
419	405		b. provided by the new motor vehicle dealer directly to a
420	406		manufacturer or third party acting on behalf of a
421	407		manufacturer.
422	408		The term shall not incl ude the same or similar data obtained by
423	409		a manufacturer from any source other than the new motor vehicle
424	410		dealer or new motor vehicle dealer ’s data management system; and
425	411		25. “Fleet vehicle” means a new motor vehicle sold and titled
426	412		or registered to a busi ness and used for business purposes only ; and
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454	413		26. a. “Common entity” means any person, firm, association,
455	414		corporation, partnership, trust, or joint venture
456	415		acting as a new motor vehicle dealer which:
457	416		(1) is directly or indirectly controlled by or has
458	417		more than thirty percent (30%) of its equity
459	418		interest directly or indirectly owned,
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460	445		beneficially or of record, through any form of
461	446		ownership structure, by a factory, manufacturer,
462	447		manufacturer branch, distributor, or distributor
463	448		branch, or
464	449		(2) has more than thirty percent (30%) of its equity
465	450		interest directly or indirectly controlled or
466	451		owned, beneficially or of record, through any
467	452		form of ownership structure, by one or more
468	453		persons who also directly or indirectly control
469	454		or own, beneficially or of record, more than
470	455		thirty percent (30%) of the equity interests of
471	456		the factory, manufacturer, manufacturer branch,
472	457		distributor, or distributor branch.
473	458		b. An entity that would otherwise be considered a common
474	459		entity of a distributor as provided in division 1 or 2
475	460		of subparagraph a of this paragraph because of its
476	461		relation to a distributor is not considered a common
477	462		entity of that distributor if:
478		-
479		-	SB604 HFLR Page 10
480		-	BOLD FACE denotes Committee Amendments. 1
481		-	2
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504		-
505	463		(1) the distributor to which the entity is related
506	464		was a licensed distributor on March 1, 2025,
507	465		(2) the entity is not a common e ntity of a
508	466		manufacturer or an importer, and
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509	493		(3) the distributor to which the entity is related is
510	494		not, and has never been, a common entity of a
511	495		manufacturer or an importer .
512	496		SECTION 2. AMENDATORY 47 O.S. 2021, Section 564, as last
513	497		amended by Section 4, Chapter 240, O.S.L. 2024 (47 O.S. Supp. 2024,
514	498		Section 564), is amended to read as follows:
515	499		Section 564. A. It shall be unlawful for any person, firm,
516	500		association, corporatio n, or partnership, trust, joint venture, or
517	501		common entity thereof, to engage in business as, or serve in the
518	502		capacity of, or act as a new motor vehicle dealer, powersports
519	503		dealer, or manufacturer or distributor of new motor vehicles or
520	504		powersports vehicles, or factory branch, distributor branch or
521	505		factory representative or distributor representative, as defined in
522	506		Section 562 of this title, in this state without first obtaining a
523	507		license therefor as provided for by law. Any person, firm,
524	508		association, corporation, or partnership, trust, joint venture, or
525	509		common entity thereof, engaging in more than one of such capacities
526	510		or having more than one place where such business is carried on or
527	511		conducted in this state shall be required to obtain and hold a
528	512		current license for each thereof. Provided that, a new motor
529		-
530		-	SB604 HFLR Page 11
531		-	BOLD FACE denotes Committee Amendments. 1
532		-	2
533		-	3
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555		-
556	513		vehicle dealer’s license shall authorize one person to sell in the
557	514		event such person shall be the owner of a proprietorship, or the
558	515		person designated as principal in the dealer ’s franchise or the
559	516		managing officer or one partner if no principal person is named in
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560	543		the franchise. It is further provided that a factory or an entity
561	544		affiliated by any ownership or control by the factory shall not be
562	545		permitted to engage in the activities of a new motor vehicle dealer
563	546		as defined in Section 562 of this title or be licensed as a new
564	547		motor vehicle dealer in this state, except as provided by
565	548		subparagraph b of paragraph 12 of Section 565 of this title.
566	549		B. Applications for licenses required to be obtained under the
567	550		provisions of Section 561 et seq. of this title shall be verif ied by
568	551		the oath or affirmation of the applicant and shall be on forms
569	552		prescribed by the Oklahoma New Motor Vehicle Commission and
570	553		furnished to the applicants, and shall contain information as the
571	554		Commission deems necessary to enable it to fully determine t he
572	555		qualifications and eligibility of the several applicants to receive
573	556		the license or licenses applied for. The Commission shall require
574	557		in such application, or otherwise, information relating to the
575	558		applicant’s current financial standing, the applicant ’s business
576	559		integrity, whether the applicant has an established place of
577	560		business and is primarily engaged in the pursuit, avocation, or
578	561		business for which a license, or licenses, are applied for, and
579	562		whether the applicant is able to properly conduct the bus iness for
580		-
581		-	SB604 HFLR Page 12
582		-	BOLD FACE denotes Committee Amendments. 1
583		-	2
584		-	3
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607	563		which a license, or licenses, are applied for, and such other
608	564		pertinent information consistent with the safeguarding of the public
609	565		interest and the public welfare. All applications for l icense or
610	566		licenses shall be accompanied by the appropriate fee or fees
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611	593		therefor in accordance with the schedule thereof hereinafter set
612	594		out. In the event any application is denied and the license applied
613	595		for is not issued, the entire license fee shall be returned to the
614	596		applicant. All licenses issued under the p rovisions of Section 561
615	597		et seq. of this title shall expire on June 30, following the date of
616	598		issue and shall be nontransferable. All applications for renewal of
617	599		a license for a new motor vehicle dealer, powersports dealer,
618	600		manufacturer, distributor, or m anufacturer’s or distributor’s
619	601		representative shall be submitted by June 1 of each year, and such
620	602		license or licenses will be issued by July 1. If applications have
621	603		not been made for renewal of licenses at the times described in this
622	604		subsection, it shall be illegal for any person to represent himself
623	605		or herself and act as a dealer, manufacturer, distributor, or
624	606		manufacturer’s or distributor’s representative. Service Oklahoma
625	607		and licensed operators will be notified not to accept such dealers ’
626	608		titles until such time as licenses have been issued by the
627	609		Commission.
628	610		C. The schedule of license fees to be charged and received by
629	611		the Commission for the licenses issued hereunder shall be as
630	612		follows:
631		-
632		-	SB604 HFLR Page 13
633		-	BOLD FACE denotes Committee Amendments. 1
634		-	2
635		-	3
636		-	4
637		-	5
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655		-	23
656		-	24
657		-
658	613		1. For each factory branch or distributor branch, Four Hundred
659	614		Dollars ($400.00) initial fee with annual renewal fee of Three
660	615		Hundred Dollars ($300.00);
	616	+
	617	+	ENGR. S. B. NO. 604 Page 13 1
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661	642		2. For each manufacturer or distributor of new motor vehicles
662	643		or new powersport vehicles, Four Hundred Doll ars ($400.00) initial
663	644		fee with annual renewal fee of Three Hundred Dollars ($300.00);
664	645		3. For each factory representative or distributor
665	646		representative, One Hundred Dollars ($100.00) annually;
666	647		4. For each new motor vehicle dealer, except powersports
667	648		vehicle dealers, initial fee of Three Hundred Dollars ($300.00) per
668	649		franchise sold at each location licensed, with an annual renewal fee
669	650		of One Hundred Dollars ($100.00) per franchise sold at each location
670	651		licensed per year; and
671	652		5. For each powersports vehicle dealer, initial fee of Three
672	653		Hundred Dollars ($300.00) per manufacturer represented by the dealer
673	654		at each location licensed, with an annual renewal fee of One Hundred
674	655		Dollars ($100.00) per manufacturer represented by the dealer at each
675	656		location licensed per year.
676	657		D. The licenses issued to each new motor vehicle dealer, new
677	658		powersports vehicle dealer, manufacturer, distributor, factory
678	659		branch, or distributor branch shall specify the location of the
679	660		factory, office, or branch thereof. In case such location is
680	661		changed, the Commission may endorse the change of locat ion on the
681	662		license without charge unless the change of address triggers a
682		-
683		-	SB604 HFLR Page 14
684		-	BOLD FACE denotes Committee Amendments. 1
685		-	2
686		-	3
687		-	4
688		-	5
689		-	6
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708		-
709	663		relocation of a new motor vehicle dealer or new powersports vehicle
710	664		dealer pursuant to the provisions of Section 578.1 of this title.
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711	691		The licenses of each new vehicle dealer shall b e posted in a
712	692		conspicuous place in the dealer ’s place or places of business.
713	693		Every motor vehicle factory representative or distributor
714	694		representative shall physically possess the license when engag ed in
715	695		business and shall display such upon request. The na me of the
716	696		employer of such factory representative or distributor
717	697		representative shall be stated on the license.
718	698		E. The new powersports dealer license shall only allow the sale
719	699		of the specific types of powersports vehicles authorized by the
720	700		manufacturer and agreed to by the powersports dealer.
721	701		SECTION 3. AMENDATORY Section 1, Chapter 29, O.S.L. 2023
722	702		(47 O.S. Supp. 2024, Section 564.3), is amended to read as follows:
723	703		Section 564.3. A. As used in this section:
724	704		1. “Access fee” means a requirement to pay money for access to
725	705		protected dealer data that is in addition to an amount specified in
726	706		a written and executed contract for goods and services ;
727	707		2. “Authorized integrator ” means a person who a dealer has a
728	708		contractual relationship wi th or the dealer otherwise gives express
729	709		written authorization to have access to protected dealer data stored
730	710		on a dealer data system or to write protected dealer data to the
731	711		dealer data system for the purpose of performing a specific function
732	712		for the dealer;
733	713
734		-	SB604 HFLR Page 15
735		-	BOLD FACE denotes Committee Amendments. 1
	714	+	ENGR. S. B. NO. 604 Page 15 1
736	715		2
737	716		3
738	717		4
739	718		5
740	719		6
741	720		7
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743	722		9
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754	733		20
755	734		21
756	735		22
757	736		23
758	737		24
759	738
760	739		3. “Dealer data system” means software, hardware, or firmware
761	740		that a dealer leases or rents from a dealer management system
762	741		provider for the purpose of storing protected dealer data;
763	742		4. “Dealer management system provider ” means a person who, for
764	743		compensation, maintains and provides access to a dealer data system
765	744		in which a dealer stores protected dealer data;
766	745		5. “Protected dealer data ” means:
767	746		a. consumer data that a dealer generated or that t he
768	747		consumer provided to the dealer that is not otherwise
769	748		publicly available and the consumer has not otherwise
770	749		provided consent or acknowledgment to share the
771	750		information, and
772	751		b. any other dealer data in connection with the dealer ’s
773	752		daily business operations in which a dealer has rights
774	753		in a dealer data system; an d
775	754		6. Authorized integrator and dealer management system provider
776	755		do not include:
777	756		a. a manufacturer, distributor, importer, factory or any
778	757		entity that is a subsidiary or affiliate of, or acts
779	758		on behalf of, a manufacturer, distributor, or importer
780	759		factory, including any subsidiary or affiliate of a
781	760		factory, or
782	761
783		-	SB604 HFLR Page 16
784		-	BOLD FACE denotes Committee Amendments. 1
	762	+	ENGR. S. B. NO. 604 Page 16 1
785	763		2
786	764		3
787	765		4
788	766		5
789	767		6
790	768		7
791	769		8
792	770		9
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802	780		19
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804	782		21
805	783		22
806	784		23
807	785		24
808	786
809	787		b. a governmental body or other person that is acting in
810	788		accordance with federal, state, or local law, or a
811	789		valid court order.
812	790		B. A dealer management system provider may:
813	791		1. Condition access and abil ity of a dealer or authorized
814	792		integrator to receive, share, copy, use, write, or transmit
815	793		protected dealer data from or to a dealer data system on the
816	794		dealer’s or authorized integrator ’s compliance with commercially
817	795		reasonable data security standards;
818	796		2. Require an authorized integrator to have express written
819	797		authorization from a dealer before allowing the authorized
820	798		integrator to gain access to, receive, share, copy, use, or transmit
821	799		protected dealer data; and
822	800		3. Deny access to a dealer data system to a dealer if the
823	801		dealer fails to pay an amount due to the dealer management system
824	802		provider under a lease, contract, or other agreement concerning the
825	803		dealer’s access to or use of the dealer data sys tem.
826	804		C. Except as provided in subsection B of this section , a dealer
827	805		management system provider shall not take any action that would
828	806		limit or prohibit the ability of a dealer or an authorized
829	807		integrator to receive, protect, store, copy, share, or use protected
830	808		dealer data using means that include, but are not lim ited to:
831	809		1. Imposing an access fee on a dealer or authorized integrator;
832	810		and
833	811
834		-	SB604 HFLR Page 17
835		-	BOLD FACE denotes Committee Amendments. 1
	812	+	ENGR. S. B. NO. 604 Page 17 1
836	813		2
837	814		3
838	815		4
839	816		5
840	817		6
841	818		7
842	819		8
843	820		9
844	821		10
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846	823		12
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848	825		14
849	826		15
850	827		16
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854	831		20
855	832		21
856	833		22
857	834		23
858	835		24
859	836
860	837		2. Restricting a dealer or an authorized integrator from
861	838		sharing protected dealer data or writing data or having acces s to a
862	839		dealer data system. Prohibited restrictions pursuan t to this
863	840		paragraph include, but are not limited to:
864	841		a. limits on the scope or nature of protected dealer data
865	842		to which a dealer or authorized integrator has access
866	843		or may share or write to a dealer data system, and
867	844		b. a requirement for a dealer or authori zed integrator to
868	845		provide sensitive or confidential business information
869	846		or information that a dealer or authorized integrator
870	847		uses for competitive purposes in return for access to
871	848		protected dealer data or an authorization to share or
872	849		write protected deale r data to a dealer data system.
873	850		D. Except as otherwise provided in this section, any term or
874	851		condition of a contract with a dealer management system provider
875	852		that conflicts with the requirements set forth in subsection C of
876	853		this section is void and unenfo rceable to the extent of the
877	854		conflict.
878	855		E. An authorized integrator shall:
879	856		1. Obtain express written authorization from a dealer before
880	857		gaining access to, receiving, sharing, copying, using, writi ng, or
881	858		transmitting protected dealer data;
882	859
883		-	SB604 HFLR Page 18
884		-	BOLD FACE denotes Committee Amendments. 1
	860	+	ENGR. S. B. NO. 604 Page 18 1
885	861		2
886	862		3
887	863		4
888	864		5
889	865		6
890	866		7
891	867		8
892	868		9
893	869		10
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895	871		12
896	872		13
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903	879		20
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905	881		22
906	882		23
907	883		24
908	884
909	885		2. Comply with security standards in gaining access to,
910	886		receiving, sharing, copying, using, writing, or transmitting
911	887		protected dealer data; and
912	888		3. Allow a dealer to withdraw, revoke, or amend any express
913	889		written authorization the dealer provides under paragraph 1 of thi s
914	890		subsection:
915	891		a. at the sole discretion of the dealer, if the dealer
916	892		gives a thirty-day prior notice to an authorized
917	893		integrator, or
918	894		b. immediately, for good cause.
919	895		F. 1. This section does not pr event a dealer, a dealer
920	896		management system provider, or an authorized integrator from
921	897		discharging the obligations of a dealer, dealer management system
922	898		provider, or of an authorized integrator under federal, state, or
923	899		local law to secure and prevent unauthorized access to protected
924	900		dealer data, or from limiting th e scope of the obligations, in
925	901		accordance with federal, state, or local law.
926	902		2. A dealer management system provider is not liable for any
927	903		action that a dealer takes directly with respect to securi ng or
928	904		preventing unauthorized access to protected dealer da ta, or for
929	905		actions that an authorized integrator takes in appropriately
930	906		following the written instructions of the dealer for securing or
931	907		preventing unauthorized access to protected dealer data, to the
932	908		extent that the actions prevent the dealer management s ystem
933	909
934		-	SB604 HFLR Page 19
935		-	BOLD FACE denotes Committee Amendments. 1
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936	911		2
937	912		3
938	913		4
939	914		5
940	915		6
941	916		7
942	917		8
943	918		9
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945	920		11
946	921		12
947	922		13
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951	926		17
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955	930		21
956	931		22
957	932		23
958	933		24
959	934
960	935		provider from meeting a legal obligation to secure or prevent
961	936		unauthorized access to protected dealer data.
962	937		3. A dealer is not liable for any action that an authorized
963	938		integrator takes direc tly with respect to securing or preventing
964	939		unauthorized access to protected dealer data, or for actions that
965	940		the authorized integrator takes in appropriately following the
966	941		written instructions of the dealer for securing or preventing
967	942		unauthorized access to protected dealer data, to the extent that the
968	943		actions prevent the dealer from meeting a legal obligation to secure
969	944		or prevent unauthorized access to protected dealer data.
970	945		4. An authorized integrator is not liable for any action that a
971	946		dealer takes directly with respect to securing or preventing
972	947		unauthorized access to protected dealer data, or for actions that
973	948		the dealer takes in appropriately following the written instructions
974	949		of the authorized integrator for securing or preventing unauthorized
975	950		access to protected dealer data, to the extent that the actions
976	951		prevent the authorized integrator from meeting a legal obligation to
977	952		secure or prevent unauthorized access to protected dealer data.
978	953		5. A manufacturer, distributor, importer, factory or any entity
979	954		that is a subsidiary or affiliate of, or acts on behalf of, a
980	955		manufacturer, distributor, or importer factory, including any
981	956		subsidiary or affiliate of a factory, is not liable for any action
982	957		that a dealer, dealer management system provider, authorized
983	958		integrator, or other third party, except for a third party who the
984	959
985		-	SB604 HFLR Page 20
986		-	BOLD FACE denotes Committee Amendments. 1
	960	+	ENGR. S. B. NO. 604 Page 20 1
987	961		2
988	962		3
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990	964		5
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1010	984
1011	985		manufacturer has provided the data to as provided for in paragraph 7
1012	986		of this subsection, takes directly with respect to securing or
1013	987		preventing unauthorized access to protected dealer data or for
1014	988		actions that an authorized integrator, dealer management sys tem
1015	989		provider, or other third party takes in appropriately following the
1016	990		written instructions of the dealer for securing or preventing
1017	991		unauthorized access to protected dealer data.
1018	992		6. Notwithstanding any other agreement, an authorized
1019	993		integrator shall inde mnify and hold the new motor vehicle dealer
1020	994		harmless from any third -party claims asserted against or damages
1021	995		incurred by the new motor vehicle dealer to the extent caused by
1022	996		access to, use of, or d isclosure of consumer data in violation of
1023	997		this section.
1024	998		7. Notwithstanding any other agreement, a manufacturer,
1025	999		distributor, importer, factory or any entity that is a subsidiary or
1026	1000		affiliate of, or acts on behalf of, a manufacturer, distributor, or
1027	1001		importer factory, including any subsidiary or affiliate of a
1028	1002		factory, shall indemnify the dealer for any third -party claims
1029	1003		asserted against or damages incurred by the dealer to the extent the
1030	1004		claims or damages are caused by the access to and unlawful
1031	1005		disclosure of protected dealer data resulting from a breach caused
1032	1006		by the manufacturer or distributor or a third party to which the
1033	1007		manufacturer or distributor has provided the protected dealer data
1034	1008
1035		-	SB604 HFLR Page 21
1036		-	BOLD FACE denotes Committee Amendments. 1
	1009	+	ENGR. S. B. NO. 604 Page 21 1
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1059	1032		24
1060	1033
1061	1034		in violation of this section, the written consent granted by the
1062	1035		dealer, or other applicable state or federal law.
1063	1036		G. A factory or any entity that acts on behalf of a factory
1064	1037		shall not prohibit an authorized integrator that has satisfied, or
1065	1038		is compliant with, commercially reasonable data security standards
1066	1039		and that the dealer has identified as one of its authorized
1067	1040		integrators from integrating into the dealer ’s dealer data system or
1068	1041		place an unreasonable restriction on integration by an authorized
1069	1042		integrator or other third party that the dealer wishes to be an
1070	1043		authorized integrator. For the purposes of this subsection,
1071	1044		“unreasonable restriction” includes:
1072	1045		1. Imposing an access fee on a dealer or authorized integrator;
1073	1046		however, a franchisor or third party may charge a franchise or
1074	1047		authorized integrator for actual costs associated with modifications
1075	1048		to a franchisor’s electronic systems to enable a secure interface
1076	1049		with the authorized integrator ’s system and software;
1077	1050		2. An unreasonable limitation or condition on the scope or
1078	1051		nature of the data that is shared with an authorized integrator;
1079	1052		3. An unreasonable limitation on the ab ility of the authorized
1080	1053		integrator to write data to a dealer data system;
1081	1054		4. An unreasonable limitation or condition on an authorized
1082	1055		integrator that accesses or shares protected dealer data or th at
1083	1056		writes data to a dealer data system; and
1084	1057
1085		-	SB604 HFLR Page 22
1086		-	BOLD FACE denotes Committee Amendments. 1
	1058	+	ENGR. S. B. NO. 604 Page 22 1
1087	1059		2
1088	1060		3
1089	1061		4
1090	1062		5
1091	1063		6
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1108	1080		23
1109	1081		24
1110	1082
1111	1083		5. Requiring unreasonable access to an authorized integrator ’s
1112	1084		sensitive, competitive, or other confidential business information
1113	1085		as a condition for accessing protected dealer data or sharing
1114	1086		protected dealer data with an authorized integrator.
1115	1087		Notwithstanding paragraph 1 of this subsection, a factory or entity
1116	1088		that acts on behalf of a factory, including any subsidiary or
1117	1089		affiliate of a factory, may charge a motor vehicle dealer or
1118	1090		authorized integrator for costs associated with modifications to a
1119	1091		franchisor’s electronic systems to enable a functional and secure
1120	1092		interface with the authorized integrator ’s system and software.
1121	1093		SECTION 4. AMENDATORY 47 O.S. 2021, Section 565, as last
1122	1094		amended by Section 7, Chapter 240, O.S.L. 2024 (47 O.S. Supp. 2024 ,
1123	1095		Section 565), is amended to read as follows:
1124	1096		Section 565. A. The Oklahoma New Motor Vehicle Commission may
1125	1097		deny an application for a license, revoke or suspend a license, or
1126	1098		impose a fine against any person or entity, not to exceed Ten
1127	1099		Thousand Dollars ($10,000.00) per occurrence, that violates any
1128	1100		provision of Sections 561 through 567, 572, 578.1, 579, and 579.1 of
1129	1101		this title or for any of the following reasons:
1130	1102		1. On satisfactory proof of unfitness of the applicant in any
1131	1103		application for any license under the provisions of Section 561 et
1132	1104		seq. of this title;
1133	1105
1134		-	SB604 HFLR Page 23
1135		-	BOLD FACE denotes Committee Amendments. 1
	1106	+	ENGR. S. B. NO. 604 Page 23 1
1136	1107		2
1137	1108		3
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1158	1129		24
1159	1130
1160	1131		2. For any material misstatement made by an applicant in any
1161	1132		application for any license under the provisions of Section 561 et
1162	1133		seq. of this title;
1163	1134		3. For any failure to comply with any provision of Section 561
1164	1135		et seq. of this title or any rule promulgated by the Commission
1165	1136		under authority vested in it by Section 561 et seq. of this title;
1166	1137		4. A change of condition after license is granted resulting in
1167	1138		failure to maintain the qualifications for li cense;
1168	1139		5. Being a new motor vehicle dealer or new powersports vehicle
1169	1140		dealer who:
1170	1141		a. has required a purchaser of a new motor vehicle or new
1171	1142		powersports vehicle, as a condition of sale and
1172	1143		delivery thereof, to also purchase special features,
1173	1144		appliances, accessories, or equipment not desired or
1174	1145		requested by the purchaser and installed by the new
1175	1146		motor vehicle dealer or new powersports vehicle
1176	1147		dealer,
1177	1148		b. uses any false or misleading advertising in connection
1178	1149		with business as a new motor vehicle dealer or new
1179	1150		powersports vehicle dealer,
1180	1151		c. has committed any unlawful act which resulted in the
1181	1152		revocation of any similar license in another state,
1182	1153
1183		-	SB604 HFLR Page 24
1184		-	BOLD FACE denotes Committee Amendments. 1
	1154	+	ENGR. S. B. NO. 604 Page 24 1
1185	1155		2
1186	1156		3
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1208	1178
1209	1179		d. has failed or refused to perform any written agreement
1210	1180		with any retail buyer involving the sale of a motor
1211	1181		vehicle or powersports vehicle,
1212	1182		e. has been convicted of a felony crime that
1213	1183		substantially relates to the occupation of a new motor
1214	1184		vehicle dealer or new powersports vehicle dealer and
1215	1185		poses a reasonable threat to public safety,
1216	1186		f. has committed a fraudulent act in selling, purchasing,
1217	1187		or otherwise dealing in new motor vehicles or new
1218	1188		powersports vehicles or has misrepresented the terms
1219	1189		and conditions of a sale, purchase or contract for
1220	1190		sale or purchase of a new motor vehicle or new
1221	1191		powersports vehicle or any interes t therein including
1222	1192		an option to purchase such vehicle,
1223	1193		g. has failed to meet or maintain the conditions and
1224	1194		requirements necessary to qualify for the issuance of
1225	1195		a license, or
1226	1196		h. completes any sale or transaction of an extended
1227	1197		service contract, extended maintenance plan, or
1228	1198		similar product using contract forms that do not
1229	1199		conspicuously disclose the identity of the service
1230	1200		contract provider;
1231	1201		6. Being a new motor vehicle salesperson who is not empl oyed as
1232	1202		such by a licensed new motor vehicle dealer;
1233	1203
1234		-	SB604 HFLR Page 25
1235		-	BOLD FACE denotes Committee Amendments. 1
	1204	+	ENGR. S. B. NO. 604 Page 25 1
1236	1205		2
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1258	1227		24
1259	1228
1260	1229		7. Being a new motor vehicle dealer or new powersports vehicle
1261	1230		dealer who:
1262	1231		a. does not have an established place of business,
1263	1232		b. does not provide for a suitable repair shop separate
1264	1233		from the display room with ample space to repair or
1265	1234		recondition one or more veh icles at the same time, and
1266	1235		which is staffed with properly trained and qualified
1267	1236		repair technicians and is equipped with such parts,
1268	1237		tools, and equipment as may be requisite for the
1269	1238		servicing of motor vehicles in such a manner as to
1270	1239		make them comply with t he safety laws of this state
1271	1240		and to properly fulfill the dealer ’s or manufacturer’s
1272	1241		warranty obligation,
1273	1242		c. does not hold a franchise in effect with a
1274	1243		manufacturer or distributor of new or unused vehicles
1275	1244		for the sale of the same and is not authorized by t he
1276	1245		manufacturer or distributor to render predelivery
1277	1246		preparation of such vehicles sold to purchasers and to
1278	1247		perform any authorized post -sale work pursuant to the
1279	1248		manufacturer’s or distributor’s warranty,
1280	1249		d. employs or utilizes the services of used motor ve hicle
1281	1250		lots or dealers or other unlicensed persons or
1282	1251		unregistered persons in connection with the sale of
1283	1252		new vehicles,
1284	1253
1285		-	SB604 HFLR Page 26
1286		-	BOLD FACE denotes Committee Amendments. 1
	1254	+	ENGR. S. B. NO. 604 Page 26 1
1287	1255		2
1288	1256		3
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1310	1278
1311	1279		e. does not properly service a new motor vehicle or new
1312	1280		powersports vehicle before delivery of same to the
1313	1281		original purchaser thereof, or
1314	1282		f. fails to order and stock a reasonable number of new
1315	1283		motor vehicles necessary to meet consumer demand for
1316	1284		each of the new motor vehicles included in the new
1317	1285		motor vehicle dealer ’s franchise agreement, unless the
1318	1286		new motor vehicles are not readily availa ble from the
1319	1287		manufacturer or distributor due to limited production;
1320	1288		8. Being a factory that has:
1321	1289		a. either induced or attempted to induce by means of
1322	1290		coercion or intimidation, any new motor vehicle dealer
1323	1291		or powersports vehicle dealer:
1324	1292		(1) to accept delivery of any vehicle or vehicles,
1325	1293		parts, or accessories therefor, or any other
1326	1294		commodities including advertising material which
1327	1295		shall not have been ordered by the new motor
1328	1296		vehicle dealer,
1329	1297		(2) to order or accept delivery of any motor vehicle
1330	1298		or powersports vehicle with special features,
1331	1299		appliances, accessories, or equipment not
1332	1300		included in the list price of the vehicles as
1333	1301		publicly advertised by the manufacturer thereof,
1334	1302		or
1335	1303
1336		-	SB604 HFLR Page 27
1337		-	BOLD FACE denotes Committee Amendments. 1
	1304	+	ENGR. S. B. NO. 604 Page 27 1
1338	1305		2
1339	1306		3
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1343	1310		7
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1360	1327		24
1361	1328
1362	1329		(3) to order or accept delivery of any parts,
1363	1330		accessories, equipment, machinery, tools ,
1364	1331		appliances, or any commodity whatsoever,
1365	1332		b. induced under threat or discrimination by the
1366	1333		withholding from delivery to a new motor vehicle
1367	1334		dealer or new powersports vehicle dealer certain
1368	1335		models of motor vehicles, changing or amending
1369	1336		unilaterally the new motor vehicle dealer ’s allotment
1370	1337		of motor vehicles, and/or withholding and delaying
1371	1338		delivery of the vehicles out of the ordinary course of
1372	1339		business, in order to induce by such coercion any new
1373	1340		motor vehicle dealer or new powersports vehicle dealer
1374	1341		to participate or contribute to any local or national
1375	1342		advertising fund controlled directly or indirectly by
1376	1343		the factory or for any other purposes such as contest,
1377	1344		“giveaways”, or other so-called sales promotional
1378	1345		devices, and/or change of quotas in any sales con test;
1379	1346		or has required new motor vehicle dealers, as a
1380	1347		condition to receiving their vehicle allotment, to
1381	1348		order a certain percentage of the vehicles with
1382	1349		optional equipment not specified by the dealer;
1383	1350		however, nothing in this section shall prohibit a
1384	1351		factory from supporting an advertising association
1385	1352
1386		-	SB604 HFLR Page 28
1387		-	BOLD FACE denotes Committee Amendments. 1
	1353	+	ENGR. S. B. NO. 604 Page 28 1
1388	1354		2
1389	1355		3
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1411	1377
1412	1378		which is open to all new motor vehicle dealers or new
1413	1379		powersports vehicle dealers on the same basis,
1414	1380		c. used a performance standard, sales objective, o r
1415	1381		program for measuring dealer performance that may have
1416	1382		a material effect on a right of the dealer to vehicle
1417	1383		allocation; or payment under any incentive or
1418	1384		reimbursement program that is unfair, unreasonable,
1419	1385		inequitable, and not based on accurate information,
1420	1386		d. used a performance standard for measuring sales or
1421	1387		service performance of that results in penalizing any
1422	1388		new motor vehicle dealer or new powersports vehicle
1423	1389		dealer under the terms of the franchise agreement
1424	1390		which:
1425	1391		(1) is unfair, unreasonable, arbit rary, or
1426	1392		inequitable, and
1427	1393		(2) does not consider the relevan t and material local
1428	1394		and state or regional criteria, including
1429	1395		prevailing economic conditions affecting the
1430	1396		sales or service performance of a vehicle dealer
1431	1397		or and any relevant and material data and facts
1432	1398		presented by the dealer in writing within thirty
1433	1399		(30) days of the written notice of the
1434	1400		manufacturer to the dealer of its intention to
1435	1401
1436		-	SB604 HFLR Page 29
1437		-	BOLD FACE denotes Committee Amendments. 1
	1402	+	ENGR. S. B. NO. 604 Page 29 1
1438	1403		2
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1460	1425		24
1461	1426
1462	1427		cancel, terminate, or not renew the dealer ’s
1463	1428		franchise agreement, and
1464	1429		(3) does not consider the actual vehicle al location
1465	1430		offered or otherwise made available to the dealer
1466	1431		by the manufacturer or distributor, as well as
1467	1432		the dealer’s inventory levels relevant to achieve
1468	1433		any minimum performance standards to which the
1469	1434		manufacturer or distributor holds the dealer
1470	1435		accountable,
1471	1436		e. failed or refused to sell, or offer for sale, new
1472	1437		motor vehicles to all of its authorized same line -make
1473	1438		franchised new motor vehicle dealers or new
1474	1439		powersports vehicle dealers at the same price for a
1475	1440		comparably equipped motor vehicle, on the same terms,
1476	1441		with no differential in functionally available
1477	1442		discount, allowance, credit, or bonus, except as
1478	1443		provided in subparagraph e of paragraph 9 of this
1479	1444		subsection,
1480	1445		f. failed to provide reasonable compensation to a new
1481	1446		motor vehicle dealer substantially equivalent to the
1482	1447		actual cost of providing a manufacturer req uired
1483	1448		loaner or rental vehicle to any consumer who is having
1484	1449		a vehicle serviced at the dealership. For purposes of
1485	1450		this paragraph, actual cost is the average cost in the
1486	1451
1487		-	SB604 HFLR Page 30
1488		-	BOLD FACE denotes Committee Amendments. 1
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1512	1476
1513	1477		new motor vehicle dealer ’s region for the rental of a
1514	1478		substantially similar make and model as the vehicle
1515	1479		being serviced, or
1516	1480		g. failed to make available to its new motor vehicle
1517	1481		dealers a fair and proportional share of all new
1518	1482		vehicles distributed to same line -make dealers in this
1519	1483		state, subject to the same reasonable terms, including
1520	1484		any vehicles distributed from a common new vehicle
1521	1485		inventory pool outside of the factory ’s ordinary
1522	1486		allocation process such as any vehicles the factory
1523	1487		reserves to distribute on a discretionary basis;
1524	1488		9. Being a factory that:
1525	1489		a. has attempted to coerce or has coerced any new motor
1526	1490		vehicle dealer or new powersports vehicle dealer to
1527	1491		enter into any agreement or to cancel any agreement;
1528	1492		has failed to act in good faith and in a fair,
1529	1493		equitable, and nondiscriminatory manner; has directly
1530	1494		or indirectly coerced, inti midated, threatened, or
1531	1495		restrained any new motor vehicle dealer; has acted
1532	1496		dishonestly; or has failed to act in accordance with
1533	1497		the reasonable standards of fair dealing,
1534	1498		b. has failed to compensate its dealers for the work and
1535	1499		services they are required to perform in connection
1536	1500		with the dealer’s delivery and preparation obligations
1537	1501
1538		-	SB604 HFLR Page 31
1539		-	BOLD FACE denotes Committee Amendments. 1
	1502	+	ENGR. S. B. NO. 604 Page 31 1
1540	1503		2
1541	1504		3
1542	1505		4
1543	1506		5
1544	1507		6
1545	1508		7
1546	1509		8
1547	1510		9
1548	1511		10
1549	1512		11
1550	1513		12
1551	1514		13
1552	1515		14
1553	1516		15
1554	1517		16
1555	1518		17
1556	1519		18
1557	1520		19
1558	1521		20
1559	1522		21
1560	1523		22
1561	1524		23
1562	1525		24
1563	1526
1564	1527		according to the agreements on file with the
1565	1528		Commission which must be found by the Commission to be
1566	1529		reasonable, or has failed to adequately and fairly
1567	1530		compensate its dealers for labor, parts, and other
1568	1531		expenses incurred by the dealer to perform under and
1569	1532		comply with manufacturer ’s warranty agreements and
1570	1533		recall repairs which shall include diagnostic work as
1571	1534		applicable and assistance requested by a consumer
1572	1535		whose vehicle was subjec ted to an over-the-air or
1573	1536		remote change, repair, or update to any part, system,
1574	1537		accessory, or function by the manufacturer and
1575	1538		performed by the dealer in order to satisfy the
1576	1539		consumer. Time allowances for the diagnosis and
1577	1540		performance of repair work shall be reasonable and
1578	1541		adequate for the work to be performed. Adequate and
1579	1542		fair compensation, which under this provision shall be
1580	1543		no less than the rates customarily charged for retail
1581	1544		consumer repairs as calculated herein, for parts and
1582	1545		labor for warranty and recall repairs shall, at the
1583	1546		option of the new motor vehicle dealer, be established
1584	1547		by the new motor vehicle dealer submitting to the
1585	1548		manufacturer or distributor one hundred sequential
1586	1549		nonwarranty consumer -paid service repair orders which
1587	1550		contain warranty-like repairs, or ninety (90)
1588	1551
1589		-	SB604 HFLR Page 32
1590		-	BOLD FACE denotes Committee Amendments. 1
	1552	+	ENGR. S. B. NO. 604 Page 32 1
1591	1553		2
1592	1554		3
1593	1555		4
1594	1556		5
1595	1557		6
1596	1558		7
1597	1559		8
1598	1560		9
1599	1561		10
1600	1562		11
1601	1563		12
1602	1564		13
1603	1565		14
1604	1566		15
1605	1567		16
1606	1568		17
1607	1569		18
1608	1570		19
1609	1571		20
1610	1572		21
1611	1573		22
1612	1574		23
1613	1575		24
1614	1576
1615	1577		consecutive days of nonwarranty consumer -paid service
1616	1578		repair orders which contain warranty -like repairs,
1617	1579		whichever is less, covering repairs made no more than
1618	1580		one hundred eighty (180) days before the submission
1619	1581		and declaring the average percentage labor rate and/or
1620	1582		markup rate. A motor vehicle dealer may not submit a
1621	1583		request to establish its retail rates more than once
1622	1584		in a twelve-month period. That request may establish
1623	1585		a parts markup rate, labor rate, or both. The new
1624	1586		motor vehicle dealer or new powersports vehicle dealer
1625	1587		shall calculate its retail parts rate by determining
1626	1588		the total charges for parts from the qualified repair
1627	1589		orders submitted, dividing that amount by the new
1628	1590		motor vehicle dealer ’s total cost of the purchas e of
1629	1591		those parts, subtracting one (1), and multiplying by
1630	1592		one hundred (100) to produce a percentage. The new
1631	1593		motor vehicle dealer or new powersports vehicle dealer
1632	1594		shall calculate its retail labor rate by dividing the
1633	1595		amount of the new vehicle dealer ’s total labor sales
1634	1596		from the qualified repair orders by the total labor
1635	1597		hours charged for those sales. When submitting repair
1636	1598		orders to establish a retail parts and labor rate, a
1637	1599		new motor vehicle dea ler or new powersports vehicle
1638	1600		dealer need not include repa irs for:
1639	1601
1640		-	SB604 HFLR Page 33
1641		-	BOLD FACE denotes Committee Amendments. 1
	1602	+	ENGR. S. B. NO. 604 Page 33 1
1642	1603		2
1643	1604		3
1644	1605		4
1645	1606		5
1646	1607		6
1647	1608		7
1648	1609		8
1649	1610		9
1650	1611		10
1651	1612		11
1652	1613		12
1653	1614		13
1654	1615		14
1655	1616		15
1656	1617		16
1657	1618		17
1658	1619		18
1659	1620		19
1660	1621		20
1661	1622		21
1662	1623		22
1663	1624		23
1664	1625		24
1665	1626
1666	1627		(1) routine maintenance including but not limited to
1667	1628		the replacement of bulbs, fluids, filters,
1668	1629		batteries, and belts that are not provided in the
1669	1630		course of and related to a repair,
1670	1631		(2) factory special events, specials, or promotional
1671	1632		discounts for retail consumer repairs,
1672	1633		(3) parts sold or repairs performed at wholesale,
1673	1634		(4) factory-approved goodwill or policy repairs or
1674	1635		replacements,
1675	1636		(5) repairs with aftermarket parts, when calculating
1676	1637		the retail parts rate but not the retail labor
1677	1638		rate,
1678	1639		(6) repairs on aftermarket parts,
1679	1640		(7) replacement of or work on tires including front -
1680	1641		end alignments and wheel or tire rotations,
1681	1642		(8) repairs of vehicles owned by the new motor
1682	1643		vehicle dealer or new powersports vehicle dealer
1683	1644		or employee thereof at the time of the repair,
1684	1645		(9) vehicle reconditioning, or
1685	1646		(10) items that do not have individual part numbers
1686	1647		including, but not limited to, nuts, bolts, and
1687	1648		fasteners.
1688	1649		A manufacturer or distributor may, not later th an
1689	1650		forty-five (45) days after submission, rebut that
1690	1651
1691		-	SB604 HFLR Page 34
1692		-	BOLD FACE denotes Committee Amendments. 1
	1652	+	ENGR. S. B. NO. 604 Page 34 1
1693	1653		2
1694	1654		3
1695	1655		4
1696	1656		5
1697	1657		6
1698	1658		7
1699	1659		8
1700	1660		9
1701	1661		10
1702	1662		11
1703	1663		12
1704	1664		13
1705	1665		14
1706	1666		15
1707	1667		16
1708	1668		17
1709	1669		18
1710	1670		19
1711	1671		20
1712	1672		21
1713	1673		22
1714	1674		23
1715	1675		24
1716	1676
1717	1677		declared retail parts and labor rate in writing by
1718	1678		reasonably substantiating that the rate is not
1719	1679		accurate or is incomplete pursuant to the provisions
1720	1680		of this section. If the manufacturer or distributor
1721	1681		determines the set of repair orders submitted by the
1722	1682		new motor vehicle dealer or new powersports vehicle
1723	1683		dealer pursuant to this section for a retail labor
1724	1684		rate or retail parts markup rate is substantially
1725	1685		higher than the new vehicle dealer ’s current warranty
1726	1686		rates, the manufacturer or distributor may request, in
1727	1687		writing, within forty -five (45) days after the
1728	1688		manufacturer’s or distributor’s receipt of the new
1729	1689		vehicle dealer’s initial submission, all repair orders
1730	1690		closed within the period of thirty (30) days
1731	1691		immediately preceding, or thirty (30) days immediately
1732	1692		following, the set of repair orders initially
1733	1693		submitted by the new motor vehicle dealer. All time
1734	1694		periods under this section shall be suspended until
1735	1695		the supplemental repair orders are provided. If the
1736	1696		manufacturer or distributor requests supplemental
1737	1697		repair orders, the manufacturer or distributor may,
1738	1698		within thirty (30) days after receiving the
1739	1699		supplemental repair orders and in accordance with the
1740	1700		formula described in this subsection, calculate a
1741	1701
1742		-	SB604 HFLR Page 35
1743		-	BOLD FACE denotes Committee Amendments. 1
	1702	+	ENGR. S. B. NO. 604 Page 35 1
1744	1703		2
1745	1704		3
1746	1705		4
1747	1706		5
1748	1707		6
1749	1708		7
1750	1709		8
1751	1710		9
1752	1711		10
1753	1712		11
1754	1713		12
1755	1714		13
1756	1715		14
1757	1716		15
1758	1717		16
1759	1718		17
1760	1719		18
1761	1720		19
1762	1721		20
1763	1722		21
1764	1723		22
1765	1724		23
1766	1725		24
1767	1726
1768	1727		proposed adjusted retail labor rate or retail parts
1769	1728		markup rate, as applicable, based upon any set of the
1770	1729		qualified repair orders submitted by the franchisee
1771	1730		and following the formula set forth herein to
1772	1731		establish the rate. The retail labor and parts rates
1773	1732		shall go into effect thirty (30) days following the
1774	1733		approval by the manufacturer or distributor. If the
1775	1734		declared rate is rebutted, the manufacturer or
1776	1735		distributor shall provide written notice stating the
1777	1736		reasons for the rebuttal, an explanation of the
1778	1737		reasons for the rebuttal, and a copy of all
1779	1738		calculations used by the franchisor in determining the
1780	1739		manufacturer or distributor ’s position and propose an
1781	1740		adjustment in writing of the average percentage markup
1782	1741		or labor rate based on that rebuttal not later tha n
1783	1742		forty-five (45) days after submission. If the new
1784	1743		motor vehicle dealer or new powersports vehicle dealer
1785	1744		does not agree with the proposed average percentage
1786	1745		markup or labor rate, the new vehicle dealer may file
1787	1746		a protest with the Commission not later than thirty
1788	1747		(30) days after receipt of that proposal by the
1789	1748		manufacturer or distributor. In the event a protest
1790	1749		is filed, the manufacturer or distributor shall have
1791	1750		the burden of proof to establish the new vehicle
1792	1751
1793		-	SB604 HFLR Page 36
1794		-	BOLD FACE denotes Committee Amendments. 1
	1752	+	ENGR. S. B. NO. 604 Page 36 1
1795	1753		2
1796	1754		3
1797	1755		4
1798	1756		5
1799	1757		6
1800	1758		7
1801	1759		8
1802	1760		9
1803	1761		10
1804	1762		11
1805	1763		12
1806	1764		13
1807	1765		14
1808	1766		15
1809	1767		16
1810	1768		17
1811	1769		18
1812	1770		19
1813	1771		20
1814	1772		21
1815	1773		22
1816	1774		23
1817	1775		24
1818	1776
1819	1777		dealer’s submitted parts markup rate or lab or rate was
1820	1778		inaccurate or not complete pursuant to the prov isions
1821	1779		of this section. A manufacturer or distributor may
1822	1780		not retaliate against any new motor vehicle dealer or
1823	1781		new powersports vehicle dealer seeking to exercise its
1824	1782		rights under this section. A manufacturer or
1825	1783		distributor may require a dealer to submit repair
1826	1784		orders in accordance with this section in order to
1827	1785		validate the reasonableness of a dealer ’s retail rate
1828	1786		for parts or labor not more often than once every
1829	1787		twelve (12) months. A manufacture r or distributor may
1830	1788		not otherwise recover its costs from n ew vehicle
1831	1789		dealers within this state including a surcharge
1832	1790		imposed on a new motor vehicle dealer solely intended
1833	1791		to recover the cost of reimbursing a dealer for parts
1834	1792		and labor pursuant to this section; provided, a
1835	1793		manufacturer or distributor shall not be prohibited
1836	1794		from increasing prices for vehicles or parts in the
1837	1795		normal course of business or from auditing and
1838	1796		charging back claims in accordance with this section.
1839	1797		All claims made by dealers for c ompensation for
1840	1798		delivery, preparation, warranty, or recall repair work
1841	1799		shall be paid within thirty (30) days after approval
1842	1800		and shall be approved or disapproved within thirty
1843	1801
1844		-	SB604 HFLR Page 37
1845		-	BOLD FACE denotes Committee Amendments. 1
	1802	+	ENGR. S. B. NO. 604 Page 37 1
1846	1803		2
1847	1804		3
1848	1805		4
1849	1806		5
1850	1807		6
1851	1808		7
1852	1809		8
1853	1810		9
1854	1811		10
1855	1812		11
1856	1813		12
1857	1814		13
1858	1815		14
1859	1816		15
1860	1817		16
1861	1818		17
1862	1819		18
1863	1820		19
1864	1821		20
1865	1822		21
1866	1823		22
1867	1824		23
1868	1825		24
1869	1826
1870	1827		(30) days after receipt. When any claim is
1871	1828		disapproved, the dealer shall be notified in writing
1872	1829		of the grounds for disapproval. The dealer ’s
1873	1830		delivery, preparation, and warranty obligations as
1874	1831		filed with the Commission shall constitute the
1875	1832		dealer’s sole responsibility for product liability as
1876	1833		between the dealer and manufacturer. A fa ctory may
1877	1834		reasonably and periodically audit a new motor veh icle
1878	1835		dealer or new powersports vehicle dealer to determine
1879	1836		the validity of paid claims for dealer compensation or
1880	1837		any charge-backs for warranty parts or service
1881	1838		compensation. Except in cases of suspected fraud,
1882	1839		audits of warranty payments shall only be fo r the one-
1883	1840		year period immediately following the date of the
1884	1841		payment. A manufacturer shall reserve the right to
1885	1842		reasonable, periodic audits to determine the validity
1886	1843		of paid claims for dealer compe nsation or any charge -
1887	1844		backs for consumer or dealer incentiv es. Except in
1888	1845		cases of suspected fraud, audits of incentive payments
1889	1846		shall only be for a one -year period immediately
1890	1847		following the date of the payment. A factory shall
1891	1848		not deny a claim or charge a new motor vehicle dealer
1892	1849		back subsequent to the payment o f the claim unless the
1893	1850		factory can show that the claim was false or
1894	1851
1895		-	SB604 HFLR Page 38
1896		-	BOLD FACE denotes Committee Amendments. 1
	1852	+	ENGR. S. B. NO. 604 Page 38 1
1897	1853		2
1898	1854		3
1899	1855		4
1900	1856		5
1901	1857		6
1902	1858		7
1903	1859		8
1904	1860		9
1905	1861		10
1906	1862		11
1907	1863		12
1908	1864		13
1909	1865		14
1910	1866		15
1911	1867		16
1912	1868		17
1913	1869		18
1914	1870		19
1915	1871		20
1916	1872		21
1917	1873		22
1918	1874		23
1919	1875		24
1920	1876
1921	1877		fraudulent or that the new motor vehicle dealer or new
1922	1878		powersports vehicle dealer failed to reasonably
1923	1879		substantiate the claim by the written reasonable
1924	1880		procedures of the factory. A factor y shall not deny a
1925	1881		claim or implement a charge -back against a new vehicle
1926	1882		dealer after payment of a claim in the event a
1927	1883		purchaser of a new vehicle that is the subject of a
1928	1884		claim fails to comply with titling or registration
1929	1885		laws of this state and is not pr evented from
1930	1886		compliance by any action of the dealer; provided, that
1931	1887		the factory may require the dealer to provide, within
1932	1888		thirty (30) days of notice of charge -back, withholding
1933	1889		of payment, or denia l of claim, the documentation to
1934	1890		demonstrate the vehicle sa le, delivery, and customer
1935	1891		qualification for an incentive as reported, including
1936	1892		consumer name and address and written attestation
1937	1893		signed by the dealer operator or general manager
1938	1894		stating the consumer was not on the export control
1939	1895		list and the dealer did n ot know or have reason to
1940	1896		know the vehicle was being exported or resold.
1941	1897		The factory shall provide written notice to a dealer
1942	1898		of a proposed charge -back that is the result of an
1943	1899		audit along with the specific audit results and
1944	1900		proposed charge-back amount. A dealer that receives
1945	1901
1946		-	SB604 HFLR Page 39
1947		-	BOLD FACE denotes Committee Amendments. 1
	1902	+	ENGR. S. B. NO. 604 Page 39 1
1948	1903		2
1949	1904		3
1950	1905		4
1951	1906		5
1952	1907		6
1953	1908		7
1954	1909		8
1955	1910		9
1956	1911		10
1957	1912		11
1958	1913		12
1959	1914		13
1960	1915		14
1961	1916		15
1962	1917		16
1963	1918		17
1964	1919		18
1965	1920		19
1966	1921		20
1967	1922		21
1968	1923		22
1969	1924		23
1970	1925		24
1971	1926
1972	1927		notice of a proposed charge -back pursuant to a
1973	1928		factory’s audit has the right to file a protest with
1974	1929		the Commission within thirty (30) days after receipt
1975	1930		of the notice of the charge -back or audit results,
1976	1931		whichever is later. The facto ry is prohibited from
1977	1932		implementing the charge -back or debiting the dealer ’s
1978	1933		account until either the time frame for filing a
1979	1934		protest has passed or a final adjudication is rendered
1980	1935		by the Commission, whichever is later, unless the
1981	1936		dealer has agreed to the c harge-back or charge-backs,
1982	1937		c. fails to compensate the new motor vehicle dealer for a
1983	1938		used motor vehicle:
1984	1939		(1) that is of the same make and model manufactured,
1985	1940		imported, or distributed by the factory and is a
1986	1941		line-make that the new motor vehicle dealer is
1987	1942		franchised to sell or on which the new motor
1988	1943		vehicle dealer is authorized to perform recall
1989	1944		repairs,
1990	1945		(2) that is subject to a stop -sale or do-not-drive
1991	1946		order issued by the factory or an authorized
1992	1947		governmental agency,
1993	1948		(3) that is held by the new motor vehic le dealer in
1994	1949		the dealer’s inventory at the time the stop -sale
1995	1950		or do-not-drive order is issued or that is taken
1996	1951
1997		-	SB604 HFLR Page 40
1998		-	BOLD FACE denotes Committee Amendments. 1
	1952	+	ENGR. S. B. NO. 604 Page 40 1
1999	1953		2
2000	1954		3
2001	1955		4
2002	1956		5
2003	1957		6
2004	1958		7
2005	1959		8
2006	1960		9
2007	1961		10
2008	1962		11
2009	1963		12
2010	1964		13
2011	1965		14
2012	1966		15
2013	1967		16
2014	1968		17
2015	1969		18
2016	1970		19
2017	1971		20
2018	1972		21
2019	1973		22
2020	1974		23
2021	1975		24
2022	1976
2023	1977		by the new motor vehicle dealer into the dealer ’s
2024	1978		inventory after the recall notice as a result of
2025	1979		a retail consumer trade -in or a lease return t o
2026	1980		the dealer inventory in accordance with an
2027	1981		applicable lease contract,
2028	1982		(4) that cannot be repaired due to the
2029	1983		unavailability, within thirty (30) days after
2030	1984		issuance of the stop -sale or do-not-drive order,
2031	1985		of a remedy or parts necessary for the new motor
2032	1986		vehicle dealer to make the recall repair, and
2033	1987		(5) that is not at least in the prorated amount of
2034	1988		one percent (1.00%) of the value of the vehicle
2035	1989		per month beginning on the date that is thirty
2036	1990		(30) days after the date on which the stop -sale
2037	1991		order was provided to the new motor vehicle
2038	1992		dealer until the earlier of either of the
2039	1993		following:
2040	1994		(a) the date the recall remedy or parts are made
2041	1995		available, or
2042	1996		(b) the date the new motor vehicle dealer sells,
2043	1997		trades, or otherwise disposes of the
2044	1998		affected used motor vehicle .
2045	1999		For the purposes of division (5) of this subparagraph,
2046	2000		the value of a used vehicle shall be the average Black
2047	2001
2048		-	SB604 HFLR Page 41
2049		-	BOLD FACE denotes Committee Amendments. 1
	2002	+	ENGR. S. B. NO. 604 Page 41 1
2050	2003		2
2051	2004		3
2052	2005		4
2053	2006		5
2054	2007		6
2055	2008		7
2056	2009		8
2057	2010		9
2058	2011		10
2059	2012		11
2060	2013		12
2061	2014		13
2062	2015		14
2063	2016		15
2064	2017		16
2065	2018		17
2066	2019		18
2067	2020		19
2068	2021		20
2069	2022		21
2070	2023		22
2071	2024		23
2072	2025		24
2073	2026
2074	2027		Book value for the year, make, and model of the
2075	2028		recalled vehicle. A factory may direct the manner and
2076	2029		method in which a new motor vehicle deale r must
2077	2030		demonstrate the inventory status of an affected used
2078	2031		motor vehicle to determine eligibility under this
2079	2032		subparagraph; provided, that the manner and method may
2080	2033		not be unduly burdensome and may not require
2081	2034		information that is unduly burdensome to provi de. All
2082	2035		reimbursement claims made by new motor vehicle dealers
2083	2036		pursuant to this section for recall remedies or
2084	2037		repairs, or for compensation where no part or repair
2085	2038		is reasonably available and the vehicle is subject to
2086	2039		a stop-sale or do-not-drive order, shall be subject to
2087	2040		the same limitations and requirements as a warranty
2088	2041		reimbursement claim made under subparagraph b of this
2089	2042		paragraph. In the alternative, a manufacturer may
2090	2043		compensate its franchi sed new motor vehicle dealers
2091	2044		under a national recall compe nsation program;
2092	2045		provided, the compensation under the program is equal
2093	2046		to or greater than that provided under division (5) of
2094	2047		this subparagraph, or as the manufacturer and new
2095	2048		motor vehicle dealer otherwise agree. Nothing in this
2096	2049		section shall require a f actory to provide total
2097	2050		compensation to a new motor vehicle dealer which would
2098	2051
2099		-	SB604 HFLR Page 42
2100		-	BOLD FACE denotes Committee Amendments. 1
	2052	+	ENGR. S. B. NO. 604 Page 42 1
2101	2053		2
2102	2054		3
2103	2055		4
2104	2056		5
2105	2057		6
2106	2058		7
2107	2059		8
2108	2060		9
2109	2061		10
2110	2062		11
2111	2063		12
2112	2064		13
2113	2065		14
2114	2066		15
2115	2067		16
2116	2068		17
2117	2069		18
2118	2070		19
2119	2071		20
2120	2072		21
2121	2073		22
2122	2074		23
2123	2075		24
2124	2076
2125	2077		exceed the total average Black Book value of the
2126	2078		affected used motor vehicle as originally determined
2127	2079		under division (5) of this subparagraph. Any remedy
2128	2080		provided to a new moto r vehicle dealer under this
2129	2081		subparagraph is exclusive and may not be combined with
2130	2082		any other state or federal compensation remedy,
2131	2083		d. unreasonably fails or refuses to offer to its same
2132	2084		line-make franchised dealers a reasonable supply and
2133	2085		mix of all models manufactured for that line -make, or
2134	2086		unreasonably requires a dealer to pay any extra fee,
2135	2087		purchase unreasonable advertising displays or other
2136	2088		materials, or enter into a separate agreement which
2137	2089		adversely alters the rights or obligations contained
2138	2090		within the dealer’s existing franchise agreement or
2139	2091		which waives any right of the new motor vehicle dealer
2140	2092		or new powersports vehicle dealer as protected by
2141	2093		Section 561 et seq. of this title, or remodel,
2142	2094		renovate, or recondition the dealer ’s existing
2143	2095		facilities as a prerequisite to receiving a model or
2144	2096		series of vehicles, except as may be necessary to sell
2145	2097		or service the model or series of vehicles as provided
2146	2098		by subparagraph e of this paragraph. It shall be a
2147	2099		violation of this section for new vehicle allocation
2148	2100		to be withheld subject to any requirement to purchase
2149	2101
2150		-	SB604 HFLR Page 43
2151		-	BOLD FACE denotes Committee Amendments. 1
	2102	+	ENGR. S. B. NO. 604 Page 43 1
2152	2103		2
2153	2104		3
2154	2105		4
2155	2106		5
2156	2107		6
2157	2108		7
2158	2109		8
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2161	2112		11
2162	2113		12
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2164	2115		14
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2166	2117		16
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2172	2123		22
2173	2124		23
2174	2125		24
2175	2126
2176	2127		or sell any number of used or off -lease vehicles. The
2177	2128		failure to deliver any such new motor vehicle shall
2178	2129		not be considered a violation of the section if the
2179	2130		failure is not arbitrary or is due to lack of
2180	2131		manufacturing capacity or to a strike or labor
2181	2132		difficulty, a shortage of materials, a freight
2182	2133		embargo, or other cause over which the manufacturer
2183	2134		has no control. However, this subparagraph shall n ot
2184	2135		apply to limited production model vehicles, a vehicle
2185	2136		not advertised by the factory for sale in this state,
2186	2137		vehicles that are subject to allocation affected by
2187	2138		federal environmental laws or environmental laws of
2188	2139		this state, or vehicles allocated in response to an
2189	2140		unforeseen event or circumstance,
2190	2141		e. except as necessary to comply with a health or safety
2191	2142		law, or to comply with a technology requirement which
2192	2143		is necessary to sell or service a vehicle that the
2193	2144		franchised new motor vehicle dealer or new powers ports
2194	2145		vehicle dealer is authorized or licensed by the
2195	2146		franchisor to sell or service, requires a dealer to
2196	2147		construct a new facility or substantially renovate the
2197	2148		dealer’s existing facility unless the facility
2198	2149		construction or renovation is justified by the
2199	2150		economic conditions existing at the time, as well as
2200	2151
2201		-	SB604 HFLR Page 44
2202		-	BOLD FACE denotes Committee Amendments. 1
	2152	+	ENGR. S. B. NO. 604 Page 44 1
2203	2153		2
2204	2154		3
2205	2155		4
2206	2156		5
2207	2157		6
2208	2158		7
2209	2159		8
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2214	2164		13
2215	2165		14
2216	2166		15
2217	2167		16
2218	2168		17
2219	2169		18
2220	2170		19
2221	2171		20
2222	2172		21
2223	2173		22
2224	2174		23
2225	2175		24
2226	2176
2227	2177		the reasonably foreseeable projections, in the new
2228	2178		motor vehicle dealer ’s market and in the automotive
2229	2179		industry. However, this subparagraph shall not apply
2230	2180		if the new motor vehicle dealer or new powerspo rts
2231	2181		vehicle dealer voluntarily agrees to facility
2232	2182		construction or renovation in exchange for money,
2233	2183		credit, allowance, reimbursement, or additional
2234	2184		vehicle allocation to a dealer from the factory to
2235	2185		compensate the dealer for the cost of, or a portion of
2236	2186		the cost of, the facility construction or renovation.
2237	2187		Except as necessary to comply with a health or safety
2238	2188		law, or to comply with a technology or safety
2239	2189		requirement which is necessary to sell or service a
2240	2190		motor vehicle or powersports vehicle that the
2241	2191		franchised dealer is authorized or licensed by the
2242	2192		franchisor to sell or service, a new vehicle dealer
2243	2193		which completes a facility construction or renovation
2244	2194		pursuant to factory requirements shall not be required
2245	2195		to construct a new facility or renovate the existing
2246	2196		facility if the same area of the facility or premises
2247	2197		has been constructed or substantially altered within
2248	2198		the last ten (10) years and the construction or
2249	2199		alteration was approved by the manufacturer as a part
2250	2200		of a facility upgrade program, standard, or policy.
2251	2201
2252		-	SB604 HFLR Page 45
2253		-	BOLD FACE denotes Committee Amendments. 1
	2202	+	ENGR. S. B. NO. 604 Page 45 1
2254	2203		2
2255	2204		3
2256	2205		4
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2273	2222		21
2274	2223		22
2275	2224		23
2276	2225		24
2277	2226
2278	2227		For purposes of this subparagraph, “substantially
2279	2228		altered” means to perform an alteration that
2280	2229		substantially impacts the architectural features,
2281	2230		characteristics, or integrity of a structure or lot.
2282	2231		The term shall not include routine maintenance
2283	2232		reasonably necessary to maintain a dealership in
2284	2233		attractive condition. If a facility upgrade program,
2285	2234		standard, or policy under which the dealer completed a
2286	2235		facility construction or substantial alteration does
2287	2236		not contain a specific time period during whi ch the
2288	2237		manufacturer or distributor shall provide payments o r
2289	2238		benefits to a participating dealer, or the time frame
2290	2239		specified under the program is reduced or canceled
2291	2240		prematurely in the unilateral discretion of the
2292	2241		manufacturer or distributor, the manufacturer or
2293	2242		distributor shall not deny the participating dealer
2294	2243		any payment or benefit under the terms of the program,
2295	2244		standard, or policy as it existed when the dealer
2296	2245		began to perform under the program, standard, or
2297	2246		policy for the balance of the ten -year period,
2298	2247		regardless of whether the manufacturer ’s or
2299	2248		distributor’s program, standard, or policy has been
2300	2249		changed or canceled, unless the manufacturer and
2301	2250
2302		-	SB604 HFLR Page 46
2303		-	BOLD FACE denotes Committee Amendments. 1
	2251	+	ENGR. S. B. NO. 604 Page 46 1
2304	2252		2
2305	2253		3
2306	2254		4
2307	2255		5
2308	2256		6
2309	2257		7
2310	2258		8
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2318	2266		16
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2320	2268		18
2321	2269		19
2322	2270		20
2323	2271		21
2324	2272		22
2325	2273		23
2326	2274		24
2327	2275
2328	2276		dealer agree, in writing, to the change in payment or
2329	2277		benefit,
2330	2278		f. requires a new motor vehicle dealer or new powersports
2331	2279		vehicle dealer to establish an exclusive faci lity,
2332	2280		unless supported by reasonable business, market, and
2333	2281		economic considerations; provided, that this section
2334	2282		shall not restrict the terms of any agreement for such
2335	2283		exclusive facility voluntarily entered into and
2336	2284		supported by valuable consideration separ ate from the
2337	2285		new motor vehicle dealer ’s right to sell and service
2338	2286		motor vehicles for the franchisor,
2339	2287		g. requires a new motor vehicle dealer or new powersports
2340	2288		vehicle dealer to enter into a site -control agreement
2341	2289		covering any or all of the new motor vehicl e dealer’s
2342	2290		facilities or premises; provided, that this section
2343	2291		shall not restrict the terms of any site -control
2344	2292		agreement voluntarily entered into and supported by
2345	2293		valuable consideration separate f rom the new motor
2346	2294		vehicle dealer’s right to sell and servic e motor
2347	2295		vehicles for the franchisor. Notwithstanding the
2348	2296		foregoing or the terms of any site -control agreement,
2349	2297		a site-control agreement automatically extinguishes if
2350	2298		all of the factory’s franchises that operated from the
2351	2299		location that are the subject of t he site-control
2352	2300
2353		-	SB604 HFLR Page 47
2354		-	BOLD FACE denotes Committee Amendments. 1
	2301	+	ENGR. S. B. NO. 604 Page 47 1
2355	2302		2
2356	2303		3
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2370	2317		17
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2374	2321		21
2375	2322		22
2376	2323		23
2377	2324		24
2378	2325
2379	2326		agreement are terminated by the factory as part of the
2380	2327		discontinuance of a product line,
2381	2328		h. refuses to pay, or claims reimbursement from, a new
2382	2329		motor vehicle dealer or new powerspor ts vehicle dealer
2383	2330		for sales, incentives, or other payments related to a
2384	2331		vehicle sold by the dealer because the purchaser of
2385	2332		the new vehicle exported or resold the vehicle in
2386	2333		violation of the policy of the factory unless the
2387	2334		factory can show that, at the time of the sale, the
2388	2335		new vehicle dealer knew or reasonably s hould have
2389	2336		known of the purchaser ’s intention to export or resell
2390	2337		the vehicle. There is a rebuttable presumption that
2391	2338		the new vehicle dealer did not know or could not have
2392	2339		known that the vehicle w ould be exported if the
2393	2340		vehicle is titled and registered in any state of the
2394	2341		United States, or
2395	2342		i. (1) notwithstanding the terms of a franchise
2396	2343		agreement or other agreement except as provided
2397	2344		in this subsection, requires a new motor vehicle
2398	2345		dealer or new powersports vehicle dealer to
2399	2346		purchase or utilize goods or services, or
2400	2347		contract with any vendor, identified, selected,
2401	2348		or designated by the factory for the:
2402	2349
2403		-	SB604 HFLR Page 48
2404		-	BOLD FACE denotes Committee Amendments. 1
	2350	+	ENGR. S. B. NO. 604 Page 48 1
2405	2351		2
2406	2352		3
2407	2353		4
2408	2354		5
2409	2355		6
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2411	2357		8
2412	2358		9
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2415	2361		12
2416	2362		13
2417	2363		14
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2419	2365		16
2420	2366		17
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2424	2370		21
2425	2371		22
2426	2372		23
2427	2373		24
2428	2374
2429	2375		(a) operation of the dealership, including
2430	2376		electronic services such as websites, data
2431	2377		management or storage systems, digital
2432	2378		retail platforms, software, or oth er digital
2433	2379		services or platforms, or
2434	2380		(b) construction, renovation, or improvement of
2435	2381		the new dealer’s facility from a vendor
2436	2382		chosen by the factory if .
2437	2383		If goods or services available from other sources
2438	2384		a vendor that the new motor vehicle dealer
2439	2385		chooses are of substantially similar quality ,
2440	2386		function, and design and comply with all
2441	2387		applicable laws; provided, however, that such
2442	2388		goods are not subject to the factory ’s
2443	2389		intellectual property or trademark ri ghts and the
2444	2390		new vehicle dealer has received the factory ’s
2445	2391		approval, which approval may not be unreasonably
2446	2392		withheld. Nothing in this subparagraph may be
2447	2393		construed to allow a new motor vehicle dealer or
2448	2394		new powersports vehicle dealer to impair or
2449	2395		eliminate a factory’s intellectual property,
2450	2396		trademark rights, or t rade dress usage
2451	2397		guidelines. Nothing in this section subparagraph
2452	2398		prohibits the enforcement of a voluntary
2453	2399
2454		-	SB604 HFLR Page 49
2455		-	BOLD FACE denotes Committee Amendments. 1
	2400	+	ENGR. S. B. NO. 604 Page 49 1
2456	2401		2
2457	2402		3
2458	2403		4
2459	2404		5
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2475	2420		21
2476	2421		22
2477	2422		23
2478	2423		24
2479	2424
2480	2425		agreement between the factory and the new vehicle
2481	2426		dealer where separate and valuable cons ideration
2482	2427		has been offered and accepted .
2483	2428		It is a violation of this subparagraph for a
2484	2429		factory, or any entity that operates on behalf of
2485	2430		a factory, to coerce a new motor vehicle dealer
2486	2431		to purchase or utilize certain goods or services
2487	2432		by withholding vehicle allocation that the new
2488	2433		motor vehicle dealer is otherwise e ligible to
2489	2434		receive, and
2490	2435		(2) for the purposes of this subparagraph, “goods and
2491	2436		services” do not include:
2492	2437		(a) moveable displays, brochures, promotional
2493	2438		materials, or electronic or digital media
2494	2439		containing material subject to the
2495	2440		intellectual property rights of a factory or
2496	2441		parts to be used in repairs under warranty
2497	2442		obligations of a factory, or
2498	2443		(b) special tools or training required by the
2499	2444		factory to perform warranty or recall
2500	2445		related repairs;
2501	2446		10. Being a factory that:
2502	2447		a. establishes a system of motor vehicle allocation or
2503	2448		distribution which is unfair, inequitable, or
2504	2449
2505		-	SB604 HFLR Page 50
2506		-	BOLD FACE denotes Committee Amendments. 1
	2450	+	ENGR. S. B. NO. 604 Page 50 1
2507	2451		2
2508	2452		3
2509	2453		4
2510	2454		5
2511	2455		6
2512	2456		7
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2518	2462		13
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2526	2470		21
2527	2471		22
2528	2472		23
2529	2473		24
2530	2474
2531	2475		unreasonably discriminatory. Upon the request of any
2532	2476		new motor vehicle dealer or new powersports vehicle
2533	2477		dealer franchised by it, a fac tory shall disclose in
2534	2478		writing to the dealer the basis upon which new
2535	2479		vehicles are allocated, scheduled, and delivered among
2536	2480		the new motor vehicle dealers of the same line -make
2537	2481		for that factory, or
2538	2482		b. changes an established plan or system of new motor
2539	2483		vehicle or new powersports vehicle distribution. A
2540	2484		new motor vehicle dealer or new powersports vehicle
2541	2485		dealer franchise agreement shall continue in full
2542	2486		force and operation notwithstanding a change, in whole
2543	2487		or in part, of an established plan or system of
2544	2488		distribution of the motor vehicles or new powersports
2545	2489		vehicles offered or previously offered for sale under
2546	2490		the franchise agreement. The appointment of a new
2547	2491		importer or distributor for motor vehicles or new
2548	2492		powersports vehicle offered for sale under the
2549	2493		franchise agreement shall be deemed to be a change of
2550	2494		an established plan or system of distribution. The
2551	2495		discontinuation of a line -make shall not be deemed to
2552	2496		be a change of an established plan or system of motor
2553	2497		vehicle or new powersports vehicle distributi on. The
2554	2498		creation of a line-make shall not be deemed to be a
2555	2499
2556		-	SB604 HFLR Page 51
2557		-	BOLD FACE denotes Committee Amendments. 1
	2500	+	ENGR. S. B. NO. 604 Page 51 1
2558	2501		2
2559	2502		3
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2577	2520		21
2578	2521		22
2579	2522		23
2580	2523		24
2581	2524
2582	2525		change of an established plan or system of motor
2583	2526		vehicle distribution as long as the new line -make is
2584	2527		not selling the same, or substantially the same
2585	2528		vehicle or vehicles previously sold through another
2586	2529		line-make by new motor vehicle dealers or new
2587	2530		powersports vehicle dealers with an active franchise
2588	2531		agreement for the other line -make in the state if such
2589	2532		dealers are no longer authorized to sell the
2590	2533		comparable vehicle previously sold through their l ine-
2591	2534		make. Changing a vehicle ’s powertrain is not
2592	2535		sufficient to show it is substantially different.
2593	2536		Upon the occurrence of such change, the manufacturer
2594	2537		or distributor shall be prohibited from obtaining a
2595	2538		license to distribute vehicles under the new plan or
2596	2539		system of distribution unless the manufacturer or
2597	2540		distributor offers to each vehicle dealer who is a
2598	2541		party to the franchise agreement a new franchise
2599	2542		agreement containing substantially the same provisions
2600	2543		which were contained in the previous franchise
2601	2544		agreement;
2602	2545		11. Being a factory that sells directly or indir ectly new motor
2603	2546		vehicles or new powersports vehicles to any retail consumer in the
2604	2547		state except through a new motor vehicle dealer or new powersports
2605	2548		vehicle dealer holding a franchise for the line -make that includes
2606	2549
2607		-	SB604 HFLR Page 52
2608		-	BOLD FACE denotes Committee Amendments. 1
	2550	+	ENGR. S. B. NO. 604 Page 52 1
2609	2551		2
2610	2552		3
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2620	2562		13
2621	2563		14
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2628	2570		21
2629	2571		22
2630	2572		23
2631	2573		24
2632	2574
2633	2575		the new motor vehicle or new powersport s vehicle. This paragraph
2634	2576		does not apply to factory sales of new vehicles to its employees,
2635	2577		family members of employees, retirees and family members of
2636	2578		retirees, not-for-profit organizations, or t he federal, state, or
2637	2579		local governments. The provisions of this paragraph shall not
2638	2580		preclude a factory from providing information to a consumer for the
2639	2581		purpose of marketing or facilitating a sale of a new vehicle or from
2640	2582		establishing a program to sell or offer to sell new motor vehicles
2641	2583		or new powersports vehicle through participating dealers subject to
2642	2584		the limitations provided in paragraph 2 of Section 562 of this
2643	2585		title;
2644	2586		12. a. Being a factory which directly or indirectly:
2645	2587		(1) owns any ownership interest or has any financial
2646	2588		interest in a new motor vehicle dealer or new
2647	2589		powersports vehicle dealer or any person who
2648	2590		sells products or services pursuant to the terms
2649	2591		of the franchise agreement,
2650	2592		(2) operates or controls a new motor vehicle dealer
2651	2593		or new powersports vehicle dealer, or
2652	2594		(3) acts in the capacity of a new mo tor vehicle
2653	2595		dealer or new powersports vehicle dealer.
2654	2596		b. (1) This paragraph does not prohibit a factory from
2655	2597		owning or controlling a new motor vehicle dealer
2656	2598		or new powersports vehicle dealer while in a bona
2657	2599
2658		-	SB604 HFLR Page 53
2659		-	BOLD FACE denotes Committee Amendments. 1
	2600	+	ENGR. S. B. NO. 604 Page 53 1
2660	2601		2
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2669	2610		11
2670	2611		12
2671	2612		13
2672	2613		14
2673	2614		15
2674	2615		16
2675	2616		17
2676	2617		18
2677	2618		19
2678	2619		20
2679	2620		21
2680	2621		22
2681	2622		23
2682	2623		24
2683	2624
2684	2625		fide relationship with a dealer development
2685	2626		candidate who has made a substantial initial
2686	2627		investment in the franchise and whose initial
2687	2628		investment is subject to potential loss. The
2688	2629		dealer development candidate can reasonably
2689	2630		expect to acquire full ownership of a new vehicle
2690	2631		dealer within a reasonable pe riod of time not to
2691	2632		exceed ten (10) years and on reasonable terms and
2692	2633		conditions. The ten -year acquisition period may
2693	2634		be expanded for good cause shown.
2694	2635		(2) This paragraph does not prohibit a facto ry from
2695	2636		owning, operating, controlling, or acting in the
2696	2637		capacity of a new motor vehicle dealer or new
2697	2638		powersports vehicle dealer for a period not to
2698	2639		exceed twelve (12) months during the transition
2699	2640		from one independent dealer to another
2700	2641		independent dealer if the dealership is for sale
2701	2642		at a reasonable price and on reasonable terms and
2702	2643		conditions to an independent qualified buyer. On
2703	2644		showing by a factory of good cause, the Oklahoma
2704	2645		New Motor Vehicle Commission may extend the time
2705	2646		limit set forth above; exten sions may be granted
2706	2647		for periods not to exceed twelve (12) months.
2707	2648
2708		-	SB604 HFLR Page 54
2709		-	BOLD FACE denotes Committee Amendments. 1
	2649	+	ENGR. S. B. NO. 604 Page 54 1
2710	2650		2
2711	2651		3
2712	2652		4
2713	2653		5
2714	2654		6
2715	2655		7
2716	2656		8
2717	2657		9
2718	2658		10
2719	2659		11
2720	2660		12
2721	2661		13
2722	2662		14
2723	2663		15
2724	2664		16
2725	2665		17
2726	2666		18
2727	2667		19
2728	2668		20
2729	2669		21
2730	2670		22
2731	2671		23
2732	2672		24
2733	2673
2734	2674		(3) This paragraph does not prohibit a factory from
2735	2675		owning, operating, or controlling or acting in
2736	2676		the capacity of a new motor vehicle dealer or new
2737	2677		powersports vehicle dealer which was in operation
2738	2678		prior to January 1, 2000.
2739	2679		(4) This paragraph does not prohibit a factory from
2740	2680		owning, directly or indirectly, a minority
2741	2681		interest in an entity that owns, operates, or
2742	2682		controls motor vehicle dealerships or powersports
2743	2683		vehicle dealerships of the sa me line-make
2744	2684		franchised by the manufacturer, provided that
2745	2685		each of the following conditions are met:
2746	2686		(a) all of the new motor vehicle or new
2747	2687		powersports vehicle dealerships selling the
2748	2688		vehicles of that manufacturer in this state
2749	2689		trade exclusively in the line -make of that
2750	2690		manufacturer,
2751	2691		(b) all of the franchise agre ements of the
2752	2692		manufacturer confer rights on the dealer of
2753	2693		the line-make to develop and operate, within
2754	2694		a defined geographic territory or area, as
2755	2695		many dealership facilities as the dealer and
2756	2696		manufacturer shall agree are appropriate,
2757	2697
2758		-	SB604 HFLR Page 55
2759		-	BOLD FACE denotes Committee Amendments. 1
	2698	+	ENGR. S. B. NO. 604 Page 55 1
2760	2699		2
2761	2700		3
2762	2701		4
2763	2702		5
2764	2703		6
2765	2704		7
2766	2705		8
2767	2706		9
2768	2707		10
2769	2708		11
2770	2709		12
2771	2710		13
2772	2711		14
2773	2712		15
2774	2713		16
2775	2714		17
2776	2715		18
2777	2716		19
2778	2717		20
2779	2718		21
2780	2719		22
2781	2720		23
2782	2721		24
2783	2722
2784	2723		(c) at the time the manufacturer first acquires
2785	2724		an ownership interest or assumes operation,
2786	2725		the distance between any dealership thus
2787	2726		owned or operated and the nearest
2788	2727		unaffiliated new motor vehicle or new
2789	2728		powersports vehicle dealership trading in
2790	2729		the same line-make is not less than seventy
2791	2730		(70) miles,
2792	2731		(d) during any period in which the manufacturer
2793	2732		has such an ownership interest, the
2794	2733		manufacturer has no more than three
2795	2734		franchise agreements with new motor vehicle
2796	2735		dealers or new powersports vehicle dealers
2797	2736		licensed by the Oklahoma New Motor Vehicle
2798	2737		Commission to do business within the state,
2799	2738		and
2800	2739		(e) prior to January 1, 2000, the factory shall
2801	2740		have furnished or made available to
2802	2741		prospective new vehicle dealers an offering
2803	2742		circular in accordance with the Trade
2804	2743		Regulation Rule on Franc hising of the
2805	2744		Federal Trade Commission, and any guidelines
2806	2745		and exemptions issued thereunder, which
2807	2746		disclose the possibility that the factory
2808	2747
2809		-	SB604 HFLR Page 56
2810		-	BOLD FACE denotes Committee Amendments. 1
	2748	+	ENGR. S. B. NO. 604 Page 56 1
2811	2749		2
2812	2750		3
2813	2751		4
2814	2752		5
2815	2753		6
2816	2754		7
2817	2755		8
2818	2756		9
2819	2757		10
2820	2758		11
2821	2759		12
2822	2760		13
2823	2761		14
2824	2762		15
2825	2763		16
2826	2764		17
2827	2765		18
2828	2766		19
2829	2767		20
2830	2768		21
2831	2769		22
2832	2770		23
2833	2771		24
2834	2772
2835	2773		may from time to time seek to own or
2836	2774		acquire, directly or indirectly, ownership
2837	2775		interests in retail dealerships;
2838	2776		13. Being a factory which directly or indirectly makes
2839	2777		available for public disclosure any proprietary information provided
2840	2778		to the factory by a new motor vehicle dealer or new powersports
2841	2779		vehicle dealer, other than in composite form to new vehicle dealers
2842	2780		in the same line-make or in response to a subpoena or order of the
2843	2781		Commission or a court. Proprietary information includes, but is not
2844	2782		limited to, information:
2845	2783		a. derived from monthly financial sta tements provided to
2846	2784		the factory, and
2847	2785		b. regarding any aspect of the profitability of a
2848	2786		particular new motor vehicle dealer or new powersports
2849	2787		vehicle dealer;
2850	2788		14. Being a factory which does not provide or direct leads in a
2851	2789		fair, equitable, and timely manner. Nothing in this paragraph shall
2852	2790		be construed to require a factory to disregard the preference of a
2853	2791		consumer in providing or directing a lead;
2854	2792		15. Being a factory which used the consumer list of a new motor
2855	2793		vehicle dealer or new powersports vehicle dea ler for the purpose of
2856	2794		unfairly competing with dealers;
2857	2795
2858		-	SB604 HFLR Page 57
2859		-	BOLD FACE denotes Committee Amendments. 1
	2796	+	ENGR. S. B. NO. 604 Page 57 1
2860	2797		2
2861	2798		3
2862	2799		4
2863	2800		5
2864	2801		6
2865	2802		7
2866	2803		8
2867	2804		9
2868	2805		10
2869	2806		11
2870	2807		12
2871	2808		13
2872	2809		14
2873	2810		15
2874	2811		16
2875	2812		17
2876	2813		18
2877	2814		19
2878	2815		20
2879	2816		21
2880	2817		22
2881	2818		23
2882	2819		24
2883	2820
2884	2821		16. Being a factory which prohibits a new motor vehicle dealer
2885	2822		or new powersports vehicle dealer from relocating after a written
2886	2823		request by such dealer if:
2887	2824		a. the facility and the proposed new location satisfies
2888	2825		or meets the written reasonable guidelines of the
2889	2826		factory. Reasonable guidelines do not include
2890	2827		exclusivity or site control unless agreed to as set
2891	2828		forth in subparagraphs f and g of paragraph 9 of this
2892	2829		subsection,
2893	2830		b. the proposed new location is within the area of
2894	2831		responsibility of the new motor vehi cle dealer or new
2895	2832		powersports vehicle dealer pursuant to Section 578.1
2896	2833		of this title, and
2897	2834		c. the factory has sixty (60) days from receipt of the
2898	2835		new motor vehicle dealer ’s relocation request to
2899	2836		approve or deny the request. The failure to approve
2900	2837		or deny the request within the sixty -day time frame
2901	2838		shall constitute approval of the request;
2902	2839		17. Being a factory which prohibits a new motor vehicle dealer
2903	2840		or new powersports vehicle dealer from adding ad ditional line-makes
2904	2841		to its existing facility, if, after add ing the additional line -
2905	2842		makes, the facility satisfies the written reasonable capitalization
2906	2843		standards and facility guidelines of each factory. Reasonable
2907	2844		facility guidelines do not include a requirement to maintain
2908	2845
2909		-	SB604 HFLR Page 58
2910		-	BOLD FACE denotes Committee Amendments. 1
	2846	+	ENGR. S. B. NO. 604 Page 58 1
2911	2847		2
2912	2848		3
2913	2849		4
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2915	2851		6
2916	2852		7
2917	2853		8
2918	2854		9
2919	2855		10
2920	2856		11
2921	2857		12
2922	2858		13
2923	2859		14
2924	2860		15
2925	2861		16
2926	2862		17
2927	2863		18
2928	2864		19
2929	2865		20
2930	2866		21
2931	2867		22
2932	2868		23
2933	2869		24
2934	2870
2935	2871		exclusivity or site control unless agree d to by the dealer as set
2936	2872		forth in subparagraphs f and g of paragraph 9 of this subsection;
2937	2873		18. Being a factory that increases prices of new motor vehicles
2938	2874		or new powersports vehicles which the de aler had ordered for retail
2939	2875		consumers and notified the fact ory prior to the dealer ’s receipt of
2940	2876		the written official price increase notification. A sales contract
2941	2877		signed by a retail consumer accompanied with proof of order
2942	2878		submission to the factory shall constitute evidence of each such
2943	2879		order, provided that the v ehicle is in fact delivered to the
2944	2880		consumer. Price differences applicable to new models or series
2945	2881		motor vehicles at the time of the introduction of new models or
2946	2882		series shall not be considered a p rice increase for purposes of this
2947	2883		paragraph. Price change s caused by any of the following shall not
2948	2884		be subject to the provisions of this paragraph:
2949	2885		a. the addition to a motor vehicle or powersports vehicle
2950	2886		of required or optional equipment pursuant to state or
2951	2887		federal law,
2952	2888		b. revaluation of the United States dol lar in the case of
2953	2889		foreign-made vehicles or components, or
2954	2890		c. an increase in transportation charges due to increased
2955	2891		rates imposed by common or contract carriers;
2956	2892		19. Being a factory that requires a new motor vehicle dealer or
2957	2893		new powersports vehicle deal er to participate monetarily in an
2958	2894		advertising campaign or contest, or purchase any promotional
2959	2895
2960		-	SB604 HFLR Page 59
2961		-	BOLD FACE denotes Committee Amendments. 1
	2896	+	ENGR. S. B. NO. 604 Page 59 1
2962	2897		2
2963	2898		3
2964	2899		4
2965	2900		5
2966	2901		6
2967	2902		7
2968	2903		8
2969	2904		9
2970	2905		10
2971	2906		11
2972	2907		12
2973	2908		13
2974	2909		14
2975	2910		15
2976	2911		16
2977	2912		17
2978	2913		18
2979	2914		19
2980	2915		20
2981	2916		21
2982	2917		22
2983	2918		23
2984	2919		24
2985	2920
2986	2921		materials, showroom, or other display decoration or materials at the
2987	2922		expense of the new motor vehicle or powersports vehicle dealer
2988	2923		without consent of the deale r, which consent shall not be
2989	2924		unreasonably withheld;
2990	2925		20. Being a factory that denies any new motor vehicle dealer or
2991	2926		new powersports vehicle dealer the right of free association with
2992	2927		any other dealer for any lawful purpose, unless otherwise permitted
2993	2928		by this chapter; or
2994	2929		21. Being a factory that requires a new motor vehicle dealer or
2995	2930		new powersports vehicle dealer to sell, offer to sell, or sell
2996	2931		exclusively an extended service contract, extended maintenance plan,
2997	2932		or similar product, such as gap products of fered, endorsed, or
2998	2933		sponsored by the factory by the following means:
2999	2934		a. by an act or statement from the factory that will in
3000	2935		any manner adversely impact the new motor vehicle
3001	2936		dealer, or
3002	2937		b. by measuring dealer’s performance under the franchise
3003	2938		based on the sale of extended service contracts,
3004	2939		extended maintenance plans, or similar products
3005	2940		offered, endorsed, or sponsored by the manufacturer or
3006	2941		distributor;
3007	2942		22. Being a factory that requires or coerces a new motor
3008	2943		vehicle dealer in this state to purchase or le ase any electric
3009	2944		vehicle charging stations at the new motor vehicle dealer ’s expense
3010	2945
3011		-	SB604 HFLR Page 60
3012		-	BOLD FACE denotes Committee Amendments. 1
	2946	+	ENGR. S. B. NO. 604 Page 60 1
3013	2947		2
3014	2948		3
3015	2949		4
3016	2950		5
3017	2951		6
3018	2952		7
3019	2953		8
3020	2954		9
3021	2955		10
3022	2956		11
3023	2957		12
3024	2958		13
3025	2959		14
3026	2960		15
3027	2961		16
3028	2962		17
3029	2963		18
3030	2964		19
3031	2965		20
3032	2966		21
3033	2967		22
3034	2968		23
3035	2969		24
3036	2970
3037	2971		unless the franchise agreement, including any related addendums,
3038	2972		with the new motor vehicle dealer identifies el ectric vehicle models
3039	2973		among the vehicles available for sale under the dealer’s franchised
3040	2974		line-make, or the new motor vehicle dealer has notified the
3041	2975		manufacturer or distributor of the new motor vehicle dealer ’s
3042	2976		intention to begin selling and servicing electric vehicles
3043	2977		manufactured or distributed by that factory. If the new motor
3044	2978		vehicle dealer’s franchise identifies electric vehicle models or the
3045	2979		dealer is actually offering for sale to the public or providing
3046	2980		warranty service on electric vehicles manufac tured or distributed by
3047	2981		that factory, the new motor vehicle dealer may not be required to
3048	2982		purchase or lease, at the new motor vehicle dealer ’s expense:
3049	2983		a. more than the number and type of electric vehicle
3050	2984		charging stations based upon the reasonable estimate
3051	2985		of the sales and service volume for the vehicles in
3052	2986		the dealer’s market, or
3053	2987		b. to make electric vehicle charging stations located at
3054	2988		the new motor vehicle dealership available for use by
3055	2989		the general public. Nothing in this paragraph shall
3056	2990		prohibit a factory from offering financial assistance
3057	2991		through a lump-sum payment to new motor vehicle
3058	2992		dealers that purchase or install electric charging
3059	2993		stations; and
3060	2994
3061		-	SB604 HFLR Page 61
3062		-	BOLD FACE denotes Committee Amendments. 1
	2995	+	ENGR. S. B. NO. 604 Page 61 1
3063	2996		2
3064	2997		3
3065	2998		4
3066	2999		5
3067	3000		6
3068	3001		7
3069	3002		8
3070	3003		9
3071	3004		10
3072	3005		11
3073	3006		12
3074	3007		13
3075	3008		14
3076	3009		15
3077	3010		16
3078	3011		17
3079	3012		18
3080	3013		19
3081	3014		20
3082	3015		21
3083	3016		22
3084	3017		23
3085	3018		24
3086	3019
3087	3020		23. Being a factory that withdraws all or a material part of
3088	3021		its stated electric vehicle distribution plan and fails or refuses,
3089	3022		at the written request of the ne w motor vehicle dealer, to accept
3090	3023		the return or otherwise fully reimburse a new motor vehicle dealer
3091	3024		for the cost of parts, tools, equipment, chargers, and other
3092	3025		returnable items required as a part of that distribution plan,
3093	3026		program, policy, or other initi ative related to the sale or service
3094	3027		of electric motor vehicles; provided, that:
3095	3028		a. the dealer demonstrates that the volume of electric
3096	3029		motor vehicles sales or service is no longer adequate
3097	3030		to allow the dealer to realize a positive return on
3098	3031		the investment over the useful life of the parts,
3099	3032		tools, equipment, chargers, or other returnable items,
3100	3033		and
3101	3034		b. the dealer submits its request to the manufacturer or
3102	3035		distributor in writing and within twenty -four (24)
3103	3036		months of the dealer ’s receipt of the parts, tools,
3104	3037		equipment, chargers, or other returnable items .
3105	3038		B. Notwithstanding the terms of any franchise agreement, in the
3106	3039		event of a proposed sale or transfer of a dealership, the
3107	3040		manufacturer or distributor shall be permitted to exercise a right
3108	3041		of first refusal to acquire the assets or ownership interest of the
3109	3042		dealer of the new motor vehicle or new powersports vehicle
3110	3043		dealership, if such sale or transfer is conditioned upon the
3111	3044
3112		-	SB604 HFLR Page 62
3113		-	BOLD FACE denotes Committee Amendments. 1
	3045	+	ENGR. S. B. NO. 604 Page 62 1
3114	3046		2
3115	3047		3
3116	3048		4
3117	3049		5
3118	3050		6
3119	3051		7
3120	3052		8
3121	3053		9
3122	3054		10
3123	3055		11
3124	3056		12
3125	3057		13
3126	3058		14
3127	3059		15
3128	3060		16
3129	3061		17
3130	3062		18
3131	3063		19
3132	3064		20
3133	3065		21
3134	3066		22
3135	3067		23
3136	3068		24
3137	3069
3138	3070		manufacturer or dealer enter ing into a dealer agreement with the
3139	3071		proposed new owner or transferee, only if all the following
3140	3072		requirements are met:
3141	3073		1. To exercise its right of first refusal, the factory must
3142	3074		notify the new motor vehicle dealer or new powersports vehicle
3143	3075		dealer in writing within sixty (60) days of receipt of the completed
3144	3076		proposal for the proposed sale transfer;
3145	3077		2. The exercise of the right of first refusal will result in
3146	3078		the new motor vehicle dealer or new powersports vehicle dealer and
3147	3079		the owner of the dealership re ceiving the same or greater
3148	3080		consideration as they have cont racted to receive in connection with
3149	3081		the proposed change of ownership or transfer;
3150	3082		3. The proposed sale or transfer of the dealership does not
3151	3083		involve the transfer or sale to a member or members of the family of
3152	3084		one or more dealer owners, or to a qualifie d manager or a
3153	3085		partnership or corporation controlled by such persons; and
3154	3086		4. The factory agrees to pay the reasonable expenses, including
3155	3087		attorney fees which do not exceed the usual, customary, an d
3156	3088		reasonable fees charged for similar work done for other c lients
3157	3089		incurred by the proposed new owner and transferee prior to the
3158	3090		exercise by the factory of its right of first refusal in negotiating
3159	3091		and implementing the contract for the proposed sale or transfer of
3160	3092		the dealership or dealership assets. Notwithstand ing the foregoing,
3161	3093		no payment of expenses and attorney fees shall be required if the
3162	3094
3163		-	SB604 HFLR Page 63
3164		-	BOLD FACE denotes Committee Amendments. 1
	3095	+	ENGR. S. B. NO. 604 Page 63 1
3165	3096		2
3166	3097		3
3167	3098		4
3168	3099		5
3169	3100		6
3170	3101		7
3171	3102		8
3172	3103		9
3173	3104		10
3174	3105		11
3175	3106		12
3176	3107		13
3177	3108		14
3178	3109		15
3179	3110		16
3180	3111		17
3181	3112		18
3182	3113		19
3183	3114		20
3184	3115		21
3185	3116		22
3186	3117		23
3187	3118		24
3188	3119
3189	3120		proposed new dealer or transferee has not submitted or caused to be
3190	3121		submitted an accounting of those expenses wi thin thirty (30) days of
3191	3122		receipt of the written request of the factory for such an
3192	3123		accounting. The accounting may be requested by a factory before
3193	3124		exercising its right of first refusal.
3194	3125		C. Nothing in this section shall prohibit, limit, restrict, or
3195	3126		impose conditions on:
3196	3127		1. Business activities, including without limitation the
3197	3128		dealings with motor vehicle manufacturers and the representatives
3198	3129		and affiliates of motor vehicle manufacturers, of any person that is
3199	3130		primarily engaged in the business of short -term, not to exceed
3200	3131		twelve (12) months, rental of motor vehicl es and industrial and
3201	3132		construction equipment and activities incidental to that business,
3202	3133		provided that:
3203	3134		a. any motor vehicle or powersports vehicle sold by that
3204	3135		person is limited to used motor vehicles or
3205	3136		powersports vehicles that have been previously used
3206	3137		exclusively and regularly by that person in the
3207	3138		conduct of business and used motor vehicles or used
3208	3139		powersports vehicles traded in on motor vehicles or
3209	3140		powersports vehicles sold by that person,
3210	3141		b. warranty repairs performed by that person on motor
3211	3142		vehicles or powersports vehicles are limited to those
3212	3143
3213		-	SB604 HFLR Page 64
3214		-	BOLD FACE denotes Committee Amendments. 1
	3144	+	ENGR. S. B. NO. 604 Page 64 1
3215	3145		2
3216	3146		3
3217	3147		4
3218	3148		5
3219	3149		6
3220	3150		7
3221	3151		8
3222	3152		9
3223	3153		10
3224	3154		11
3225	3155		12
3226	3156		13
3227	3157		14
3228	3158		15
3229	3159		16
3230	3160		17
3231	3161		18
3232	3162		19
3233	3163		20
3234	3164		21
3235	3165		22
3236	3166		23
3237	3167		24
3238	3168
3239	3169		vehicles that the person owns, previously owned, or
3240	3170		takes in trade, and
3241	3171		c. motor vehicle or powersports vehicle financing
3242	3172		provided by that person to retail consumers for motor
3243	3173		vehicles or powersports vehicles is limited to used
3244	3174		vehicles sold by that person in the conduct of
3245	3175		business; or
3246	3176		2. The direct or indirect ownership, affiliation, or control of
3247	3177		a person described in paragraph 1 of this subsection.
3248	3178		D. As used in this section:
3249	3179		1. “Substantially relates ” means the nature of criminal conduct
3250	3180		for which the person was convicted has a direct bearing on the
3251	3181		fitness or ability to perform one or more of the duties or
3252	3182		responsibilities necessarily related to the occupation; and
3253	3183		2. “Poses a reasonable threat ” means the nature of criminal
3254	3184		conduct for which the person was convicted involved an act or threat
3255	3185		of harm against another and has a bearing on the fitness or ability
3256	3186		to serve the public or work with othe rs in the occupation.
3257	3187		E. Nothing in this section shall pro hibit a manufacturer or
3258	3188		distributor from requiring a dealer to be in compliance with the
3259	3189		franchise agreement and authorized to sell a make and model based on
3260	3190		applicable reasonable standards and requirements that include but
3261	3191		are not limited to any facility, technology, or training
3262	3192		requirements necessary to sell or service a vehicle, in order to be
3263	3193
3264		-	SB604 HFLR Page 65
3265		-	BOLD FACE denotes Committee Amendments. 1
	3194	+	ENGR. S. B. NO. 604 Page 65 1
3266	3195		2
3267	3196		3
3268	3197		4
3269	3198		5
3270	3199		6
3271	3200		7
3272	3201		8
3273	3202		9
3274	3203		10
3275	3204		11
3276	3205		12
3277	3206		13
3278	3207		14
3279	3208		15
3280	3209		16
3281	3210		17
3282	3211		18
3283	3212		19
3284	3213		20
3285	3214		21
3286	3215		22
3287	3216		23
3288	3217		24
3289	3218
3290	3219		eligible for delivery or allotment of a make or model of a new motor
3291	3220		vehicle or new powersports vehicle or an incentive.
3292	3221		SECTION 5. This act shall become effective November 1, 2025.
3293		-
3294		-	COMMITTEE REPORT BY: OVERSIGHT COMMITTEE ON JUDICIARY AND PUBLIC
3295		-	SAFETY, dated - 04/17/2025 – DO PASS.
	3222	+	Passed the Senate the 26th day of March, 2025.
	3223	+
	3224	+
	3225	+
	3226	+	Presiding Officer of the Senate
	3227	+
	3228	+
	3229	+	Passed the House of Representatives the ____ day of __________,
	3230	+	2025.
	3231	+
	3232	+
	3233	+
	3234	+	Presiding Officer of the House
	3235	+	of Representatives
	3236	+