PRINTER'S NO. 2175
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1907
Session of
2021
INTRODUCED BY LAWRENCE, BERNSTINE, R. BROWN, CIRESI, EMRICK,
HILL-EVANS, JAMES, MALONEY, MILLARD, MOUL, N. NELSON, ROWE,
RYAN, STRUZZI, THOMAS, VITALI, WHEELAND AND ZIMMERMAN,
SEPTEMBER 27, 2021
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE,
SEPTEMBER 27, 2021
AN ACT
Amending the act of December 22, 1983 (P.L.306, No.84), entitled
"An act providing for the State Board of Vehicle
Manufacturers, Dealers and Salespersons; and providing
penalties," in vehicles, further providing for unlawful acts
by manufacturers or distributors.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 310(c)(6) of the act of December 22, 1983
(P.L.306, No.84), known as the Board of Vehicles Act, is amended
to read:
Section 310. Unlawful acts by manufacturers or distributors.
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(c) Restriction on ownership of dealer.--
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(6) The following shall apply:
[(i) A manufacturer or distributor may own, operate
or control not more than five new vehicle dealerships
trading solely in electric vehicles, as defined in 75
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Pa.C.S. ยง 102 (relating to definitions), that are not
sold as new vehicles by a licensed independent new
vehicle dealer pursuant to an existing franchise with a
manufacturer or distributor, if each of the following
conditions are met:
(A) Each of the new vehicle dealerships selling
the manufacturer's new motor vehicles in this
Commonwealth trade exclusively in the manufacturer's
line-make.
(B) Each of the new vehicle dealerships selling
the manufacturer's motor vehicles in this
Commonwealth are determined to be in compliance with
this chapter.
(C) Either of the following apply:
(I) The manufacturer, distributor or a
subsidiary, affiliate or controlled entity has
not acquired, nor does it hold a controlling
interest in another manufacturer or distributor,
required to be licensed under this chapter.
(II) If a controlling interest is acquired,
the manufacturer, distributor or a subsidiary,
affiliate or controlled entity may not continue
to operate or control a new vehicle dealership
under this subsection for a period not more than
12 months from the date it acquired the
controlling interest.
(D) Either of the following apply:
(I) A controlling interest in the original
manufacturer, distributor or any subsidiary,
affiliate or controlled entity was not
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transferred, sold or conveyed to another
manufacturer, distributor, person or entity
required to be licensed under this chapter.
(II) If a controlling interest is
transferred, sold or conveyed to another
manufacturer, distributor, person or entity
required to be licensed under this chapter, the
entity may not continue to operate or control a
new vehicle dealership under this subsection for
a period not more than 12 months from the date it
acquired the controlling interest.
(E) The manufacturer shall have continuously
offered electric vehicles for sale for a period of
not less than 12 months prior to the effective date
of this clause.
(ii) Nothing under this chapter shall prohibit a
manufacturer operating or controlling a new vehicle
dealership under this paragraph from owning, operating or
controlling a warranty facility for warranty repairs on
the manufacturer's line-make of vehicles.]
(i) A manufacturer or distributor may own, operate
or control new vehicle dealerships trading solely in
electric vehicles, as defined in 75 Pa.C.S. ยง 102
(relating to definitions), that are not sold as new
vehicles by licensed independent new vehicle dealers
pursuant to an existing franchise with a manufacturer or
distributor, if each of the following conditions are met:
(A) Each of the new vehicle dealerships selling
the manufacturer's new motor vehicles in this
Commonwealth trades exclusively in the manufacturer's
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line-make.
(B) Each of the new vehicle dealership selling
the manufacturer's motor vehicles in this
Commonwealth is determined to be in compliance with
this act.
(C) Either of the following apply:
(I) The manufacturer, distributor or a
subsidiary, affiliate or controlled entity has
not acquired, nor does it hold a controlling
interest in, another manufacturer or distributor
required to be licensed under this act.
(II) If a controlling interest is acquired,
the manufacturer, distributor or a subsidiary,
affiliate or controlled entity may not continue
to operate or control the new vehicle dealerships
under this subsection for a period not more than
12 months from the date it acquired the
controlling interest.
(D) Either of the following apply:
(I) A controlling interest in the original
manufacturer, distributor or any subsidiary,
affiliate or controlled entity was not
transferred, sold or conveyed to another
manufacturer, distributor, person or entity
required to be licensed under this act.
(II) If a controlling interest is
transferred, sold or conveyed to another
manufacturer, distributor, person or entity
required to be licensed under this act, the
entity may not continue to operate or control the
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new vehicle dealerships under this subsection for
a period not more than 12 months from the date it
acquired the controlling interest.
(ii) Nothing under this act shall prohibit a
manufacturer operating or controlling new vehicle
dealerships under this paragraph from owning, operating
or controlling a warranty facility for warranty repairs
on the manufacturer's line-make of vehicles.
* * *
Section 2. This act shall take effect immediately.
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