Signed by Governor Brad Little

Vote Smart's Synopsis:

Vote to pass a bill that amends and adds to current Idaho laws and statutes governing state manufacturers.

Highlights:

• Amends the manner and mode of distribution from the “relevant market area” to this state (Sec. 2). 

• Prohibits any manufacturer or distributor licensed under this chapter to compete with their franchised dealers in this state in the sale, lease, or warranty service of new motor vehicles to retail consumers (Sec. 2G). 

• Specifies nothing in this section shall limit a manufacturer or distributor fleet sales or leases that have a designation by the manufacturer or distributors as long as the sales or leases are conducted with the same line make; 

• Specifies nothing in this section shall limit a manufacturer or distributors from authorizing or assisting a fleet customer that has been designated to perform warranty services on vehicles operated by such fleet customer; 

• Specifies it is not a violation of this section for a manufacturer or distributor to provide an update or repair of motor vehicle software if it is provided at no cost or when creating a new line of motor vehicles; 

• Authorizes a manufacturer or distributor to operate a dealership for a period of time not exceeding one year without violating this paragraph; 

• Prohibits any manufacturer or distributor from withholding or threatening to withhold approval of the sale, transfer, exchange, or issuance a dealer sales and service agreement to a qualified buyer capable of being licensed as a dealer in this state (Sec. 2T). 

• Prohibits conditioning approval of a buyer upon the selling dealer executing a release of all claims they may have arising from the franchise relationship with the manufacturer (Sec. 2T). 

• Exempts shown when separate material consideration is paid contemporaneously by the manufacturer to the dealer for such release; 

• Specifies nothing in this section shall preclude the application of a manufacturer's standard policies (Sec. 2T). 

• Prohibits any manufacturer or distributor from establishing or implementing a franchise agreement for the sales and leasing of new motor vehicles under which they reserve the right to the following (Sec. 2.8A)

• Maintain a website or digital means of communication to negotiate terms of sales or leasing; 

• Retain ownership of new motor vehicles until they are sold or leased to the retail buyer or lessee; 

• Cosign new motor vehicles to dealers for dealer inventory or for retail sale;

• Exempts the cosigning to a bona fide employee or relative;

• Negotiate terms of sale directly with the buyer without involvement with a dealer;

• Enforce or seek to enforce a right in any franchise agreement to unilaterally amend or modify the terms of the franchise agreement; and

• Amend the dealer's relevant market area or anything that affects the dealer's rights without giving 60 days written notice; 

• Specifies that nothing from this subsection shall prevent a manufacturer or distributor from the following (Sec. 2.8B):

• Participating in fleet sales or leasing with a fleet customer; 

• Authorizing a fleet customer that has a designation by the manufacturer or distributor to perform warranty services on a motor vehicle;

• Offering, providing, and applying the terms of an employee pricing program with participating dealers;

• Negotiating binding terms of sale relating to the sale or lease with a bona fide employee or relative of such manufacturer or distributor; 

• Negotiating binding terms of sale relating to the sale or lease with a vehicle replacement or buyback; 

• Purchasing a vehicle from a consumer in connection with a replacement or buyback; and

• Maintaining digital means of communication if the final selling price is determined by eligible dealers or setting or advertising a manufacturer's suggested retail price or offers; 

• Authorizes that within a 60-day notice period provided the dealer may pursue remedies under this section, file with the department, and serve the respondent a petition to determine whether good cause exists for permitting the proposed modification (Sec. 2.9):

• Specifies multiple complaints may be consulted for hearing; 

• The modification may not take effect pending the determination of the dealer; 

• Specifies the burden of proof be on the manufacturer or distributor;

• Establishes the department to consider relevant factors such as reasoning, manor, degree of impact, and public interest (Sec. 2 i-iv). 

• Specifies the department to also consider the following factors (Sec. 2.9B):

• Traffic patterns;

• Pattern of new vehicle sales;

• Growth or decline in population and new car registrations;

• Presence or absence of natural geographical obstacles;

• Proximity of census tracts; and

• The reasonableness of the change to the dealer-relevant market area; 

• Prohibits any manufacturer or distributor from implementing a program that coerces the franchise to install direct current fast charging stations for public use and defines coerce to mean threatens or compels (Sec. 2.10).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends and adds to current Idaho laws and statutes governing state manufacturers.

Highlights:

• Amends the manner and mode of distribution from the “relevant market area” to this state (Sec. 2). 

• Prohibits any manufacturer or distributor licensed under this chapter to compete with their franchised dealers in this state in the sale, lease, or warranty service of new motor vehicles to retail consumers (Sec. 2G). 

• Specifies nothing in this section shall limit a manufacturer or distributor fleet sales or leases that have a designation by the manufacturer or distributors as long as the sales or leases are conducted with the same line make; 

• Specifies nothing in this section shall limit a manufacturer or distributors from authorizing or assisting a fleet customer that has been designated to perform warranty services on vehicles operated by such fleet customer; 

• Specifies it is not a violation of this section for a manufacturer or distributor to provide an update or repair of motor vehicle software if it is provided at no cost or when creating a new line of motor vehicles; 

• Authorizes a manufacturer or distributor to operate a dealership for a period of time not exceeding one year without violating this paragraph; 

• Prohibits any manufacturer or distributor from withholding or threatening to withhold approval of the sale, transfer, exchange, or issuance a dealer sales and service agreement to a qualified buyer capable of being licensed as a dealer in this state (Sec. 2T). 

• Prohibits conditioning approval of a buyer upon the selling dealer executing a release of all claims they may have arising from the franchise relationship with the manufacturer (Sec. 2T). 

• Exempts shown when separate material consideration is paid contemporaneously by the manufacturer to the dealer for such release; 

• Specifies nothing in this section shall preclude the application of a manufacturer's standard policies (Sec. 2T). 

• Prohibits any manufacturer or distributor from establishing or implementing a franchise agreement for the sales and leasing of new motor vehicles under which they reserve the right to the following (Sec. 2.8A)

• Maintain a website or digital means of communication to negotiate terms of sales or leasing; 

• Retain ownership of new motor vehicles until they are sold or leased to the retail buyer or lessee; 

• Cosign new motor vehicles to dealers for dealer inventory or for retail sale;

• Exempts the cosigning to a bona fide employee or relative;

• Negotiate terms of sale directly with the buyer without involvement with a dealer;

• Enforce or seek to enforce a right in any franchise agreement to unilaterally amend or modify the terms of the franchise agreement; and

• Amend the dealer's relevant market area or anything that affects the dealer's rights without giving 60 days written notice; 

• Specifies that nothing from this subsection shall prevent a manufacturer or distributor from the following (Sec. 2.8B):

• Participating in fleet sales or leasing with a fleet customer; 

• Authorizing a fleet customer that has a designation by the manufacturer or distributor to perform warranty services on a motor vehicle;

• Offering, providing, and applying the terms of an employee pricing program with participating dealers;

• Negotiating binding terms of sale relating to the sale or lease with a bona fide employee or relative of such manufacturer or distributor; 

• Negotiating binding terms of sale relating to the sale or lease with a vehicle replacement or buyback; 

• Purchasing a vehicle from a consumer in connection with a replacement or buyback; and

• Maintaining digital means of communication if the final selling price is determined by eligible dealers or setting or advertising a manufacturer's suggested retail price or offers; 

• Authorizes that within a 60-day notice period provided the dealer may pursue remedies under this section, file with the department, and serve the respondent a petition to determine whether good cause exists for permitting the proposed modification (Sec. 2.9):

• Specifies multiple complaints may be consulted for hearing; 

• The modification may not take effect pending the determination of the dealer; 

• Specifies the burden of proof be on the manufacturer or distributor;

• Establishes the department to consider relevant factors such as reasoning, manor, degree of impact, and public interest (Sec. 2 i-iv). 

• Specifies the department to also consider the following factors (Sec. 2.9B):

• Traffic patterns;

• Pattern of new vehicle sales;

• Growth or decline in population and new car registrations;

• Presence or absence of natural geographical obstacles;

• Proximity of census tracts; and

• The reasonableness of the change to the dealer-relevant market area; 

• Prohibits any manufacturer or distributor from implementing a program that coerces the franchise to install direct current fast charging stations for public use and defines coerce to mean threatens or compels (Sec. 2.10).

Full Bill Text