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
18vehicle dealership trading solely in motor vehicles having a

1gross vehicle weight less than 8,500 pounds that are of the
2same line-make franchised by the manufacturer, provided that
3each of the following conditions are met:

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

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

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

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

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

28(vi) As of the effective date of this subsection,
29the manufacturer shall have continuously owned, directly
30or indirectly, for a period of not less than 18 months,

1one or more new motor vehicle dealerships in this
2Commonwealth of the same line-make as the manufacturer.]
3The following shall apply:

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

12(A) Each of the new vehicle dealerships selling
13the manufacturer's new 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 determined to be in compliance with
19this act.

20(C) Either of the following apply:

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

26(II) If a controlling interest is acquired,
27the manufacturer, distributor or a subsidiary,
28affiliate or controlled entity may not continue
29to operate or control a new vehicle dealership
30under this subsection for a period not more than

112 months from the date it acquired the
2controlling 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 continue to operate or control a
15new vehicle dealership under this subsection for
16a period not more than 12 months from the date it
17acquired the controlling interest.

18(E) The manufacturer shall have continuously 
19offered electric vehicles for sale for a period of 
20not less than 12 months prior to the effective date 
21of this clause.

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 obtained as a result of a
29trade or return of a vehicle during the purchase of a new
30vehicle under paragraph (6) at a manufacturer's licensed

1location.

2* * *

3Section 2. This act shall take effect immediately.