1Amending the act of December 22, 1983 (P.L.306, No.84), entitled
2"An act providing for the State Board of Vehicle
3Manufacturers, Dealers and Salespersons; and providing
4penalties," further providing for unlawful acts by
5manufacturers or distributors.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Section 12(c)(6) of the act of December 22, 1983
9(P.L.306, No.84), known as the Board of Vehicles Act, amended
10September 3, 2009 (P.L.378, No.41), is amended and the
11subsection is amended by adding a paragraph to read:

12Section 12. Unlawful acts by manufacturers or distributors.

13* * *

14(c) Restriction on ownership of dealer.--

15* * *

16(6) [A manufacturer may own, directly or indirectly, an
17interest in an entity that owns, operates or controls a motor

1vehicle dealership trading solely in motor vehicles having a
2gross vehicle weight less than 8,500 pounds that are of the
3same line-make franchised by the manufacturer, provided that
4each of the following conditions are met:

5(i) All of the motor vehicle dealerships selling
6such manufacturer's motor vehicles in this Commonwealth
7trade exclusively in the manufacturer's line-make.

8(ii) All of the manufacturer's franchise agreements
9confer rights on the dealer of the line-make to develop
10and operate, within a defined geographic territory or
11area, as many dealership facilities as the dealer and
12manufacturer shall agree are appropriate.

13(iii) Not fewer than half of the dealers of the
14line-make within this Commonwealth own and operate two or
15more dealership facilities in the geographic territory or
16area covered by the franchise agreement with the
17manufacturer.

18(iv) During any period in which the manufacturer has
19such an ownership interest, the manufacturer has no more
20than 12 franchise agreements with new motor vehicle
21dealers licensed by the board to do business within this
22Commonwealth.

23(v) Except as otherwise permitted under other
24provisions of this act, the manufacturer does not acquire
25or hold, either directly or indirectly, an ownership
26interest of more than 45% in any motor vehicle dealership
27that the manufacturer did not already own, directly or
28indirectly, as of the effective date of this subsection.

29(vi) As of the effective date of this subsection,
30the manufacturer shall have continuously owned, directly

1or indirectly, for a period of not less than 18 months,
2one or more new motor vehicle dealerships in this
3Commonwealth of the same line-make as the manufacturer.]
4The following shall apply:

5(i) A manufacturer or distributor may own, operate
6or control a new vehicle dealership trading solely in
7electric vehicles, as defined in 75 Pa.C.S. § 102
8(relating to definitions), that are not sold as new
9vehicles by a licensed independent new vehicle dealer
10pursuant to a franchise with the manufacturer or
11distributor, if each of the following conditions are met:

12(A) Each of the new vehicle dealerships selling
13the manufacturer's motor vehicles in this
14Commonwealth trade exclusively in the manufacturer's
15line-make.

16(B) Each of the new vehicle dealerships selling
17the manufacturer's motor vehicles in this
18Commonwealth are in compliance with this act and 49
19Pa. Code Ch. 19 (relating to State Board of Vehicle
20Manufacturers, Dealers and Salespersons).

21(C) Either of the following apply:

22(I) The manufacturer, distributor or a
23subsidiary, affiliate or controlled entity has
24not acquired, nor does it hold a controlling
25interest in another manufacturer or distributor,
26required to be licensed under this act.

27(II) If a controlling interest is acquired,
28the manufacturer, distributor or a subsidiary,
29affiliate or controlled entity may not operate or
30control a new vehicle dealership under this

1subsection for a period exceeding 12 months from
2the date it acquired the controlling interest.

3(D) Either of the following apply:

4(I) A controlling interest in the original
5manufacturer, distributor or any subsidiary,
6affiliate or controlled entity was not
7transferred, sold or conveyed to another
8manufacturer, distributor, person or entity
9required to be licensed under this act.

10(II) If a controlling interest is
11transferred, sold or conveyed to another
12manufacturer, distributor, person or entity
13required to be licensed under this act, the
14entity may not operate or control a new vehicle
15dealership under this subsection for a period
16exceeding 12 months from the date it acquired the
17controlling interest.

18(E) On the effective date of this subclause, the
19manufacturer shall have continuously held a new
20vehicle dealer license for a period of not less than
2112 months.

22(ii) Nothing under this act shall prohibit a
23manufacturer operating or controlling a new vehicle
24dealership under this paragraph from owning, operating or
25controlling a warranty facility for warranty repairs on
26the manufacturer's line-make of vehicles.

27(7) Nothing under this subsection shall prohibit the
28sale or lease of used vehicles at a manufacturer's licensed
29location.

30* * *

1Section 2. This act shall take effect in 60 days.