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2019 SESSION

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HB 2174 Motor vehicle dealers; manufacturers and factory branch transfers, etc.

Introduced by: Jason S. Miyares | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Motor vehicle dealers and manufacturers. Provides that if a motor vehicle manufacturer or factory branch discontinues, sells, or transfers its right to manufacture a line-make of motor vehicles, and the acquiring manufacturer or factory branch does not honor an existing franchise agreement with motor vehicle dealers in Virginia, such discontinuation, sale, or transfer shall constitute a termination of the franchise and such motor vehicle dealers shall be entitled to compensation pursuant to Virginia law. The bill provides that a manufacturer or distributor's right to first refusal in the event of a proposed sale or transfer of a dealership does not apply if such sale or transfer is not to a dealer licensed anywhere in the United States as a dealer holding a franchise from any manufacturer or to a distributor licensed as a manufacturer or distributor in the Commonwealth unless the exercise of such right of first refusal by a manufacturer or distributor with a program promoting minority dealers would lead to a minority dealer having a majority ownership of a dealership. The bill exempts certain manufacturers and distributors from the limitations on the right of first refusal.

SUMMARY AS PASSED HOUSE:

Motor vehicle dealers and manufacturers. Provides that if a motor vehicle manufacturer or factory branch discontinues, sells, or transfers its right to manufacture a line-make of motor vehicles, and the acquiring manufacturer or factory branch does not honor an existing franchise agreement with motor vehicle dealers in Virginia, such discontinuation, sale, or transfer shall constitute a termination of the franchise and such motor vehicle dealers shall be entitled to compensation pursuant to Virginia law. The bill provides that a manufacturer or distributor's right to first refusal in the event of a proposed sale or transfer of a dealership does not apply if such sale or transfer is not to a dealer licensed anywhere in the United States as a dealer holding a franchise from any manufacturer or to a distributor licensed as a manufacturer or distributor in the Commonwealth unless the exercise of such right of first refusal by a manufacturer or distributor with a program promoting minority dealers would lead to a minority dealer having a majority ownership of a dealership. The bill expands the events in which a manufacturer or distributor may exercise a right to first refusal to include when there is a proposed change in management of a dealership.

SUMMARY AS INTRODUCED:

Motor vehicle dealers and manufacturers. Provides that if a motor vehicle manufacturer or factory branch transfers or discontinues its right to manufacture a line-make of motor vehicles, all franchises granted to motor vehicle dealers by that manufacturer in the Commonwealth shall continue in full force, with modification to reflect that the new manufacturer of that line-make of motor vehicles will be substituted for the prior manufacturer. The bill provides that a manufacturer or distributor's right to first refusal in the event of a proposed sale or transfer of a dealership does not apply if such sale or transfer is not to a dealer licensed anywhere in the United States as a dealer holding a franchise from any manufacturer or to a distributor licensed as a manufacturer or distributor in the Commonwealth. The bill expands the events in which a manufacturer or distributor may exercise a right to first refusal to include when there is a proposed change in management of a dealership.