SB 608

ON MARCH 2, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 608, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, prohibit the motor vehicle commission ("commission"") from denying an application for a license, or revoking or suspending the license, of a manufacturer, distributor, distributor branch or factory branch or off icer, agent or other representative because such person has failed to deliver motor vehicles within 60 days of a dealer's order due to an act of God, a work stoppage or delay due to a strike or other labor action, a lack of available manufacturing capacity, a freight embargo, or other cause or material issue over which the person has no control . Present law authorizes the commission to deny an application for a license, or revoke or suspend the license, of a manufacturer, distributor, distributor branch or factory branch or officer, agent or other representative because such person refused to de liver to a motor vehicle dealer having a franchise or contractual arrangement for the retail sale of new and unused motor vehicles sold or distributed by the person, a motor vehicle publicly advertised for immediate delivery within 60 days after the dealer' s order was received . Present law provides the grounds for which the commission may deny an application for a license, or revoke or suspend the license, of a manufacturer, distributor, distributor branch, factory branch or officer, agent or other representative. This amendme nt adds to those grounds by authorizing the commission to deny an application for a license, or revoke or suspend the license, of a manufacturer, distributor, distributor branch, factory branch or officer, agent or other representative who has engaged in an y of the following actions:  Required, coerced, or attempted to coerce a motor vehicle dealer to change the location of the motor vehicle dealer, or to make a substantial alteration or investment to the dealer premises or facilities when doing so would be unreasonable in light of current market and economic conditions, fi nancial expectations, and such dealer's market for the sale of vehicles.  Required, coerced, or attempted to coerce the use of a vendor of goods or services selected by the manufacturer, factory branch, factory representative, distributor, wholesaler, distributor branch, or distributor representative for construction or substantial alterations if the dealer, with approval of the manufacturer, factory branch, factory representative, distributor, wholesaler, distributor branch, or distributor representative selects an alternative vendor of goods and services that are of the same design, quality, and kind. However, this provision does not eliminate, impair, damage, or otherwise limit a manufacturer's intellectual property, trademark, or trade dress rights in any way, and does not apply to goods or services paid for substantially by a manufacturer, factory branch, factory representative, distributor, or wholesaler .  Required the construction of, or substantial alteration to a facility or premises if the same item or design component, consisting of interior or exterior elements of the sales, service, administrative, or parts components, was constructed or substantially altered within the prior 10 years and that construction or alteration was required and approved by the manufacturer, factory branch, factory representative, distributor, or wholesaler, distributor branch, or distributor representative. However, this provision does not authorize a dealer to impair or eliminate the intellectual property or trademark rights of the manufacturer, factory branch, factory representative, distributor, wholesaler, distributor branch, or distributor representative, or their affiliates or initial design or architectural review service, or to permit a dealer to erect or maintain signs that do not conform to the intellectual property usage guidelines of the same, and does not apply to construction or a substantial alteration made to comply with health or safety laws or a technology requirement that is essential to the sale or service of a motor vehicle that the new motor vehicle dealer is authorized by the franchisor to sell or service .  Required, coerced, or attempted to coerce adherence to performance standards that are not fair, reasonable, and equitable or that are not applied uniformly to other similarly situated dealers.  Adopted, changed, established, or implemented a plan or system for the allocation and distribution of new vehicles to dealers that is arbitrary, capricious, or unreasonably discriminatory or modified an existing plan so as to cause the same to be arbitrary, capricious, or unreasonably discriminatory .  Failed or refused to advise or disclose to a dealer having a franchise agreement, upon written request therefor, the basis upon which new motor vehicles of the same line make are allocated or distributed to dealers in the state and the basis upon which the current allocation or distribution is being made or will be made to the dealer."