Trial Engrossment of Amendment A05180 to Senate Bill 0764 P.N. 1322, Regular Session 2017-2018

A05180

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

764

Session of

2017

INTRODUCED BY GORDNER, RAFFERTY, TARTAGLIONE AND ARGALL,

JUNE 14, 2017

SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL

LICENSURE, AS AMENDED, NOVEMBER 14, 2017

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," providing for preliminary provisions, further

providing for short title, for definitions, for State Board

of Vehicle Manufacturers, Dealers and Salespersons, for

powers and duties of board, for license to engage in

business, for biennial renewal, for enforcement, for protest

hearing decision within 120 days unless waived by the

parties, for reimbursement for all parts and service required

by the manufacturer or distributor and reimbursement audits,

for damage disclosure, for mediation and arbitration, for

unlawful acts by manufacturers or distributors, for area of

responsibility, for termination of franchises, for industry

reorganization, for succession to franchise ownership, for

manufacturer right of first refusal, for manufacturer or

distributor repurchase of inventory and equipment, for

reimbursement of rental costs for dealer facility, for

grounds for disciplinary proceedings, for administrative

liability of employer, copartnership, association or

corporation, for reinstatement, for application for license,

for refusal of license, for change of salesperson's license

to indicate new employer, for termination of employment or

business, for exemption from licensure and registration, for

limitations on establishing or relocating dealers, for

licensing cost, for penalties, for civil actions for

violations, for fees, for disposition of fees and fines, for

vehicle shows, off-premise sales and exhibitions and for off-

premise sales, shows, exhibitions or rallies on Sundays;

providing for recreational vehicles and for miscellaneous

provisions; further providing for savings provision, for

repeals, expiration of terms of board members and for

existing rules and regulations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of December 22, 1983 (P.L.306, No.84),

known as the Board of Vehicles Act, is amended by adding a

chapter heading to read:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 2. Section 1 of the act is renumbered to read:

Section [1] 101. Short title.

This act shall be known and may be cited as the Board of

Vehicles Act.

Section 3. The definitions of "motor home," "recreational

vehicle" and "recreational vehicle park trailer" in section 2 of

the act are amended and the section is renumbered and amended by

adding a definition DEFINITIONS to read:

Section [2] 102. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"FIFTH WHEEL TRAILER." A VEHICLE MOUNTED ON WHEELS DESIGNED

TO PROVIDE TEMPORARY LIVING QUARTERS FOR RECREATIONAL, CAMPING

OR TRAVEL USE WHICH IS A SIZE AND WEIGHT WHICH DOES NOT REQUIRE

A SPECIAL HIGHWAY MOVEMENT PERMIT AND IS DESIGNED TO BE TOWED BY

A MOTORIZED VEHICLE THAT CONTAINS A TOWING MECHANISM MOUNTED

ABOVE OR FORWARD OF THE TOW VEHICLE'S REAR AXLE.

* * *

"FOLDING CAMPING TRAILER." A VEHICLE MOUNTED ON WHEELS AND

CONSTRUCTED WITH COLLAPSIBLE SIDE WALLS THAT FOLD FOR TOWING BY

ANOTHER VEHICLE AND UNFOLD AT THE CAMPSITE TO PROVIDE TEMPORARY

A05180 - 2 -

LIVING QUARTERS FOR RECREATIONAL, CAMPING OR TRAVEL USE.

* * *

"Motor home." [A vehicle designed to provide temporary

living quarters, built into an integral part of, or permanently

attached to, a self-propelled vehicle chassis or van.] A

motorized vehicle designed to provide temporary living quarters

for recreational, camping or travel use . The unit must contain

CONTAINING at least four of the following permanently installed

independent life support systems:

(1) A cooking facility with an on-board fire source.

(2) A potable water supply system that includes at least

a sink, a faucet and a water tank with an exterior service

supply connection.

(3) A toilet with exterior evacuation.

(4) A gas or electric refrigerator.

(5) A heating or air conditioning system with an on-

board power or fuel source separate from the vehicle engine.

(6) An electric power system separate from the vehicle.

"Park model RV." A vehicle that:

(1) Is designed and marketed as temporary living

quarters for recreational camping, travel or seasonal use.

(2) Is not permanently affixed to real property for use

as a permanent dwelling.

(3) Is built on a single chassis mounted on wheels with

a gross trailer area not exceeding 400 square feet in the

set-up mode.

(4) Is certified by the manufacturer as complying with

the ANSI A119.5 Park Model Recreational Vehicle Standard.

* * *

"Recreational vehicle." [A vehicle primarily designed as

A05180 - 3 -

temporary living quarters for recreational, camping or travel

use, which either has its own power or is mounted on or drawn by

another vehicle. The term includes a travel trailer,

recreational vehicle park trailer, slide-in camper, camping

trailer and motor home.] A vehicle which is either self-

propelled or towed by a consumer-owned tow vehicle and designed

to provide temporary living quarters for recreational, camping

or travel use that complies with all applicable Federal vehicle

regulations and , does not require a special-movement permit to

legally use on highways . The products are AND IS certified by

the manufacturer as complying with NFPA 1192 Standard on

Recreational Vehicles or ANSI A119.5 Park Model Recreational

Vehicle Standard and include the following types:

(1) Motor home.

(2) Travel trailer.

(3) Fifth wheel travel trailer.

(4) Folding camping trailer.

(5) Truck camper.

(6) Park model RV.

["Recreational vehicle park trailer." A recreational vehicle

that is built on a single chassis mounted on wheels, has a gross

trailer area not exceeding 400 square feet in the set-up mode

and is certified by the manufacturer as complying with ANSI

A119.5.]

* * *

"RECREATIONAL VEHICLE WARRANTOR." AN INDIVIDUAL, FIRM,

CORPORATION OR BUSINESS ENTITY, INCLUDING A MANUFACTURER OR

SUPPLIER THAT PROVIDES A WRITTEN WARRANTY TO A CONSUMER IN

CONNECTION WITH A NEW RECREATIONAL VEHICLE OR A PART, ACCESSORY

OR COMPONENT OF A NEW RECREATIONAL VEHICLE. THE TERM DOES NOT

A05180 - 4 -

INCLUDE SERVICE CONTRACTS, MECHANICAL OR OTHER INSURANCE OR

EXTENDED WARRANTIES SOLD FOR SEPARATE CONSIDERATION BY A DEALER

OR OTHER PERSON NOT CONTROLLED BY A MANUFACTURER.

* * *

"TRAVEL TRAILER." A VEHICLE MOUNTED ON WHEELS AND TOWED BY A

CONSUMER'S MOTORIZED VEHICLE DESIGNED TO PROVIDE TEMPORARY

LIVING QUARTERS FOR RECREATIONAL, CAMPING OR TRAVEL USE OF A

SIZE AND WEIGHT AS TO NOT REQUIRE A SPECIAL HIGHWAY MOVEMENT

PERMIT WHEN TOWED BY A MOTORIZED VEHICLE.

"TRUCK CAMPER." A VEHICLE DESIGNED TO BE PLACED IN THE BED

OF A PICKUP TRUCK TO PROVIDE TEMPORARY LIVING QUARTERS FOR

RECREATIONAL, CAMPING OR TRAVEL USE.

* * *

Section 4. The act is amended by adding a chapter heading to

read:

CHAPTER 3

VEHICLES

Section 5. Sections 3 and 4 of the act are amended to read:

Section [3] 301. State Board of Vehicle Manufacturers, Dealers

and Salespersons.

(a) Board.--The State Board of Vehicle Manufacturers,

Dealers and Salespersons shall consist of 17 members, one of

whom shall be the Commissioner of Professional and Occupational

Affairs, or his designee, one of whom shall be the Secretary of

the Department of Transportation, or his designee, one of whom

shall be the Director of Consumer Protection in the Office of

Attorney General, or his designee, and the remaining 14 of whom

shall be appointed by the Governor as follows:

(1) Three members shall be new vehicle dealers who have

been actively engaged as such for a period of five years

A05180 - 5 -

immediately preceding their appointment.

(2) Three members shall be used vehicle dealers who have

been actively engaged as such for a period of five years

immediately preceding their appointment. One used vehicle

dealer member beginning with the first vacancy for a used

vehicle dealer after the effective date of this amendment

shall also be an owner, partner or officer of a corporation

or business which is licensed as a vehicle auction and which

has been actively engaged as such for a period of five years

immediately preceding the appointment.

(3) One shall be a manufactured housing or mobile home

dealer who has been actively engaged as such for a period of

five years immediately preceding appointment.

(4) One shall be a salesperson who has been actively

engaged in the sale of new or used vehicles for a period of

five years immediately preceding appointment. The member

shall not be a dealer or an officer of a corporation or a

member of a partnership engaged in the business of a dealer

at the time of appointment.

(5) One shall be a recreational vehicle dealer who has

been actively engaged as such for a period of five years

immediately preceding appointment.

(6) One shall be a motorcycle dealer who has been

actively engaged as such for a period of five years

immediately preceding appointment.

(6.1) One member shall be a mobility vehicle dealer who

has been actively engaged as such for a period of five years

immediately preceding appointment.

(7) Three shall be members of the general public having

no connection with the vehicle business.

A05180 - 6 -

(b) Terms of members.--The terms of the members of the board

shall be four years for members appointed after the effective

date of this amendment from the respective date of their

appointment, provided that a member may continue for a period

not to exceed six months beyond the expiration of his term if a

successor has yet to be duly appointed and qualified according

to law. The maximum number of consecutive terms a member shall

serve shall be two consecutive four-year terms. In the event

that any member shall die, resign or be removed from office, his

successor shall be appointed and hold office for the unexpired

term.

been appointed and confirmed shall constitute a quorum. Motions,

questions and decisions of the board shall require the

affirmative vote of a majority of a quorum for adoption. The

board shall select, from among their number, a chairman and a

secretary.

(d) Reimbursement of expenses.--Each member of the board,

excepting the Commissioner of Professional and Occupational

Affairs or his designee, the Director of the Bureau of Consumer

Protection in the Office of Attorney General or his designee,

and the Secretary of the Department of Transportation or his

designee, shall be paid reasonable traveling, hotel and other

necessary expenses and per diem compensation at the rate of $60

for each day of actual service while on board business.

(e) Attendance.--A member who fails to attend three

consecutive meetings shall forfeit his seat unless the

Commissioner of Professional and Occupational Affairs, upon

written request from the member, finds that the member should be

excused from a meeting because of illness or the death of an

A05180 - 7 -

immediate family member.

Section [4] 302. Powers and duties of board.

(a) Powers and duties.--The board shall have the power and

its duty shall be to:

(1) Provide for and regulate the licensing of

salespersons, dealers, vehicle auctions, manufacturers,

factory branches, distributors, distributor branches and

factory or distributor representatives as defined in [this

act] section 102.

(2) Review and pass upon the qualifications of

applicants for licensure and to issue, except as otherwise

provided herein, a license to engage in the said businesses

to any applicant who is approved by the board and who meets

the requirements of this [act] chapter and regulations

promulgated in accordance with this [act] chapter.

(3) Investigate on its own initiative, upon complaint of

the Department of Transportation, Department of Community and

Economic Development, Department of Revenue or the Office of

the Attorney General, any law enforcement officer or upon the

verified complaint in writing of any person, any allegations

of the wrongful act or acts of any licensee or person

required to be licensed [hereunder] under this chapter. Duly

authorized agents of the Bureau of Professional and

Occupational Affairs shall be authorized to issue

administrative citations for violations of this [act] chapter

in accordance with section 5 of the act of July 2, 1993

(P.L.345, No.48), entitled "An act empowering the General

Counsel or his designee to issue subpoenas for certain

licensing board activities; providing for hearing examiners

in the Bureau of Professional and Occupational Affairs;

A05180 - 8 -

providing additional powers to the Commissioner of

Professional and Occupational Affairs; and further providing

for civil penalties and license suspension."

(4) Administer and enforce this [act] chapter and to

impose appropriate administrative discipline upon licensees

found to be in violation of this [act] chapter.

(5) Bring criminal prosecutions for unauthorized,

unlicensed or unlawful practice and bring an action to enjoin

such practices. Duly authorized agents of the bureau shall be

authorized to issue citations in accordance with section 5(a)

of the act of July 2, 1993 (P.L.345, No.48), entitled "An act

empowering the General Counsel or his designee to issue

subpoenas for certain licensing board activities; providing

for hearing examiners in the Bureau of Professional and

Occupational Affairs; providing additional powers to the

Commissioner of Professional and Occupational Affairs; and

further providing for civil penalties and license

suspension," for violations of this [act] chapter.

(6) Require each licensee to register biennially with

the board.

(7) Keep a record showing the names and addresses of all

licensees licensed under this [act] chapter.

(8) Keep minutes and records of all its transactions and

proceedings especially with relation to the issuance, denial,

registration, formal reprimand, suspension and revocation of

licenses. In all actions or proceedings in any court, a

transcript of any board record or any part thereof, which is

certified to be a true copy by the board, shall be entitled

to admission in evidence.

(9) Adopt, promulgate and enforce such rules and

A05180 - 9 -

regulations consistent with this [act] chapter as are deemed

necessary and proper to effectuate the provisions of this

[act] chapter.

(10) Submit annually, to the Consumer Protection and

Professional Licensure Committee of the Senate and the

Professional Licensure Committee of the House of

Representatives, a description of the types of complaints

received, status of the cases, board action which has been

taken and length of time from the initial complaint to final

board resolution.

(11) Submit annually to the department an estimate of

the financial requirements of the board for its

administrative, investigative, legal and miscellaneous

expenses.

(12) Submit annually to the House and Senate

Appropriations Committees, 15 days after the Governor has

submitted his budget to the General Assembly, a copy of the

budget request for the upcoming fiscal year which the board

previously submitted to the department.

(b) Summary proceedings.--All law enforcement officers in

this Commonwealth may institute summary criminal proceedings in

accordance with the Pennsylvania Rules of Criminal Procedure for

violations of this act. Any person who violates this [act]

chapter shall be subject to criminal prosecution as provided in

section [28] 328.

Section 6. Section 5 of the act, amended December 17, 2015

(P.L.450, No.78), is renumbered and amended to read:

Section [5] 303. License to engage in business.

(a) License required.--

(1) To promote the public safety and welfare, it shall

A05180 - 10 -

be unlawful for any person to engage in the business as a

salesperson, dealer, branch lot, wholesale vehicle auction,

public or retail vehicle auction, manufacturer, factory

branch, distributor, distributor branch, factory

representative or distributor representative within this

Commonwealth unless the person has secured a license as

required under this [act] chapter.

(2) A person, including, but not limited to,

salespersons, shall not engage in the business for his own

benefit or profit unless he is licensed in accordance with

this [act] chapter.

(3) A person shall not act as, offer to act as or hold

himself out to be a broker in the advertising, buying or

selling of any new or used vehicle.

(b) Mobile home parks.--

(1) It shall be unlawful for any person, for a

commission, compensation or other consideration, to sell or

act as salesperson, broker or sales agent in connection with

the sale of one or more mobile homes located in a mobile home

park, as provided for in section 11 of the act of November

24, 1976 (P.L.1176, No.261), known as the Mobile Home Park

Rights Act, unless such person shall be licensed under this

[act] chapter, except as provided for in paragraph (2).

(2) Any real estate salesperson or broker licensed under

the act of February 19, 1980 (P.L.15, No.9), known as the

Real Estate Licensing and Registration Act, may list for sale

any preowned mobile home as defined by the Mobile Home Park

Rights Act, whether or not the mobile home is located in a

mobile home park, without being licensed under the provisions

of this [act] chapter. No mobile home park rule shall prevent

A05180 - 11 -

the placement of a "for sale" sign on the home and on the

property on which the home is located. Nothing in this

paragraph shall authorize the listing for sale of preowned

mobile homes at a sales lot by a licensed real estate

salesperson or broker unless the salesperson or broker is

also licensed under this [act] chapter and has obtained a

sales tax license from the Department of Revenue.

any salesperson who has not been issued a salesperson's license

number by the board to engage in any activity related to the

buying, selling or exchanging of a vehicle for a commission,

compensation or other consideration. Any sale must be conducted

pursuant to and as part of the normal business activities of the

dealer by a person who is a licensed salesperson of the dealer,

unless that person is the dealer. The salesperson shall be

presently employed by the currently licensed vehicle dealer for

whom the salesperson is buying, selling or exchanging.

(1) Any salesperson licensed [hereunder] under this

chapter shall be licensed to sell only for one dealer at a

time and his license shall indicate the name of that dealer.

(2) A licensed salesperson who is employed by a dealer

who holds a dealer license in more than one category or at

more than one facility may sell for each such dealer or at

each such facility, provided there is common ownership.

(d) Display of license.--Each person to whom a license is

issued shall keep the license conspicuously displayed in his

principal office or place of business and shall, when required,

exhibit such license to any member or authorized representative

of the board.

(e) Facility requirements for dealers.--

A05180 - 12 -

(1) Dealers engaged in the business of buying, selling

or exchanging new and used vehicles, trailers or semitrailers

shall maintain an established place of business with a

salesroom devoted principally to the vehicle business, and

new vehicle dealers shall hold a franchise in writing with a

manufacturer or distributor authorizing a new vehicle dealer

to sell a particular line-make of vehicles from the address

of the licensed facility.

(i) A vehicle auction shall not be required to meet

the facility requirements [contained in] under this

subsection.

(ii) A branch lot shall be a separately licensed

location which meets the facility requirements [defined

herein] under this section and by the regulations as a

main lot, unless used solely for the storage of vehicles.

(2) Dealers engaged in the business of buying, selling

or exchanging used vehicles, trailers or semitrailers shall

maintain an established place of business with a salesroom

devoted principally to the vehicle business which is a

building or portion of a building where books and records are

kept.

(3) Dealers engaged in the business of buying, selling

or exchanging new manufactured housing and used mobile homes

or manufactured housing shall maintain a minimum usable

display area of 5,000 square feet devoted principally to the

mobile home or manufactured housing business, maintain an

established place of business and hold a contract in writing

with a buyer, seller or manufacturer giving such person

buying or selling rights for new manufactured housing of that

particular line from the address of the licensed facility.

A05180 - 13 -

(i) Dealers engaged in the business of buying,

selling or exchanging new manufactured housing, in lieu

of maintaining the minimum usable display area

requirements of this section, shall be authorized to

display, sell, list or offer for sale new manufactured

housing if the new manufactured housing is located on-

site in a mobile home park or new manufactured housing is

on real property owned or rented by a person who through

a written agreement with the dealer authorizes the dealer

to locate the new manufactured housing on the real

property and the dealer is authorized to display, sell,

list or offer the new manufactured housing at the real

property location. Such dealers must maintain an

established place of business and hold a contract in

writing with a buyer, seller or manufacturer giving such

person buying or selling rights for such new manufactured

housing.

(ii) A display, sale, listing or offer for sale from

a site or location as permitted by subparagraph (i) shall

not require the issuance of a branch lot license.

(4) Dealers engaged in the business of buying, selling

or exchanging used mobile homes or manufactured housing shall

maintain a place of business and a building, or a portion of

a building, where books and records are kept and which is

devoted principally to the mobile home or manufactured

housing business. There shall be no minimum square footage

display area requirement for a used mobile home or

manufactured housing dealer.

(i) Dealers engaged in the business of buying,

selling or exchanging new manufactured housing or used

A05180 - 14 -

mobile homes or manufactured housing in addition to

maintaining the business facility requirements of this

section shall be authorized to display, sell, list or

offer for sale used manufactured housing or mobile homes

if the used manufactured housing or mobile homes are

located on-site in a mobile home park or used

manufactured housing or mobile homes are located on real

property owned or rented by the person who owns the used

manufactured housing or mobile home and the dealer

possesses a written agreement with the person authorizing

the dealer to sell, list or offer the used manufactured

housing or mobile home on behalf of the person from the

real property location.

(ii) A display, sale, listing or offer for sale from

a site or location as permitted by subparagraph (i) shall

not require the issuance of a branch lot license.

(5) Dealers engaged in the business of buying, selling

or exchanging new or used recreational vehicles shall

maintain an established place of business with a minimum

usable display area of 5,000 square feet devoted principally

to the recreational vehicle business and hold a franchise in

writing with a buyer, seller or manufacturer giving such

person buying or selling rights for new recreational vehicles

of that particular line from the address of the licensed

facility.

(f) Wholesale vehicle auction activities.--

(1) Wholesale vehicle auctions in wholesale vehicle

auction sales transactions shall permit only the following

persons to sell vehicles at the auction: vehicle dealers

licensed under this [act] chapter or by any other state or

A05180 - 15 -

jurisdiction, manufacturers, leasing companies, rental

companies, financial institutions, insurance companies,

charitable nonprofit organizations; persons who sell vehicles

owned by their business which are utilized to accomplish

their main business purpose and who do not engage in any

vehicle buying, sales or repair business; and fleet owners.

(2) Only vehicle dealers licensed under this [act]

chapter or by any other state or jurisdiction shall be

permitted to purchase vehicles at wholesale vehicle auctions.

In addition to dealers licensed under this [act] chapter or

by any other state or jurisdiction, a vehicle business,

except for repair and towing, transporter, service, financier

or collector/repossessor businesses, registered with the

Department of Transportation and issued a Department of

Transportation identification number or licensed or

registered by any other state or jurisdiction for a similar

activity without being licensed under this [act] chapter

shall be authorized at wholesale vehicle auctions only to

buy, sell or exchange vehicles of the type for which the

business is authorized to engage by the Department of

Transportation or any other state or jurisdiction, provided

that upon buying such vehicle, application for an appropriate

certificate of title or certificate of salvage is made for

the vehicle.

(3) A dealer licensed under this [act] chapter without

possessing a wholesale vehicle auction or public or retail

vehicle auction license shall be permitted to sell vehicles

on consignment.

(4) A vehicle auction shall only permit a person who is

currently employed and licensed as a salesperson for a dealer

A05180 - 16 -

who holds a license issued under this [act] chapter or by any

other state or jurisdiction to buy, sell or exchange vehicles

at an auction on behalf of a dealer. This paragraph shall not

apply to a salesperson who is buying, selling or exchanging

vehicles at:

(i) wholesale vehicle auctions which are either

fleet sales or manufacturer's sales; or

(ii) sales of vehicles for salvage, where the

salesperson shall be permitted to buy, sell or exchange

vehicles for no more than five dealers during the sale.

(5) Any person who has had his license under this [act]

chapter or authority to engage as a dealer or salesperson in

any other state or jurisdiction suspended or revoked shall

not be authorized, while the license or authority is

suspended or revoked, to be physically present at a wholesale

vehicle auction during the auctioning of vehicles.

(g) Public or retail vehicle auction activities.--

(1) Public or retail vehicle auctions shall not be

limited as to who may commission them to sell vehicles or who

may buy vehicles at public or retail auctions, provided that

any buyer or seller is not engaging in the business as a

dealer without a license or as any other person who would be

required to be licensed under this [act] chapter. Any person

who has had his license under this [act] chapter or authority

to engage as a dealer or salesperson in any other state or

jurisdiction suspended or revoked shall not be authorized,

while the license or authority is suspended or revoked, to be

physically present at a public or retail vehicle auction

during the auctioning of vehicles. Public or retail vehicle

auctions shall not be required to take title to the vehicles

A05180 - 17 -

they offer for sale or have their auctioneers licensed as

salespersons under this [act] chapter. Public or retail

vehicle auctions shall inquire of the seller of the vehicle

and, if applicable, disclose to potential purchasers material

information obtained from the seller regarding the vehicle

being offered for sale as is required of all sellers under

applicable Federal and Pennsylvania laws.

(2) Public or retail vehicle auctions shall ensure all

purchasers at the vehicle auction:

(i) show proof of identification at the time of

transfer of ownership;

(ii) sign the identified name to the transfer of

ownership documents;

(iii) pay any applicable tax imposed under Article

II of the act of March 4, 1971 (P.L.6, No.2), known as

the Tax Reform Code of 1971, unless otherwise exempted by

law; and

(iv) submit transfer of ownership documents to the

Department of Transportation as required under 75 Pa.C.S.

(relating to vehicles).

(g.1) Mobility vehicle dealers.--

(1) A licensed dealer classified as a mobility vehicle

dealer may do all of the following:

(i) Display, inventory, advertise, solicit,

demonstrate, sell, offer for sale or deliver new and used

mobility vehicles.

(ii) Arrange, negotiate and assist a customer

regarding the purchase of a mobility vehicle.

(iii) Sell and install equipment and accessories in

and provide services for mobility vehicles, in order to

A05180 - 18 -

meet the needs of persons with disabilities as drivers or

passengers.

(iv) Provide maintenance and repair services for

mobility vehicles.

(v) Acquire a new vehicle with a lowered floor or

frame or a raised roof and door in order to fit or equip

the vehicle for retail sale as a new mobility vehicle.

(2) A licensed dealer that is classified only as a

mobility vehicle dealer may not offer for sale or sell

vehicles which are not mobility vehicles.

(h) Notification of unlicensed persons.--Vehicle auctions

shall post a listing supplied by the board containing the names

of all licensees who are currently revoked or suspended and

persons who were penalized for unlicensed activity within the

past year.

Section 7. Sections 6, 7, 8, 9(a)(4) and (e)(3)(ii), 10, 11,

12, 12.1, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,

26, 27, 27.1, 28, 29, 30, 31 and 32, 32 AND 32.1 of the act are

amended and section 9 is amended by adding a subsection to read:

Section [6] 304. Biennial renewal.

Each license holder shall be required to renew his license

biennially; as a condition precedent to biennial renewal, the

license holder shall pay a biennial renewal fee and, in the case

of a salesperson or manufacturer's or distributor's

representative, he must be presently employed with a dealer,

manufacturer or distributor which has a current license. The

license holder shall comply with all requirements as set forth

through regulation by the board.

Section [7] 305. Enforcement.

Notwithstanding the enforcement powers granted to law

A05180 - 19 -

enforcement officers to institute summary criminal proceedings

pursuant to section [4(b)] 302(b), the enforcement of the laws

and rules and regulations governing practice under this [act]

chapter is primarily vested in the board with the following

additional powers and duties to:

(1) Inspect all license holders.

(2) Authorize investigations of alleged violations.

(3) Review and inspect all business records, documents

and files relating to practice under this [act] chapter.

(4) Subpoena witnesses.

(5) Take depositions of witnesses in the manner provided

for in civil actions in courts of record.

(6) Bring criminal prosecutions for unauthorized,

unlicensed and unlawful practice in accordance with the terms

and provisions of the act of October 15, 1980 (P.L.950,

No.164), known as the Commonwealth Attorneys Act.

(7) Obtain injunctions from a court of competent

jurisdiction against persons acting in violation of this

[act] chapter.

Section [8] 306. Protest hearing decision within 120 days

unless waived by the parties.

(a) Franchise protest hearings to be decided within 120 days

unless waived by the parties.--Any franchise establishment,

relocation, termination or failure to renew hearing based on a

protest by a dealer or distributor of any action by a

manufacturer or distributor alleged to be in violation of a

provision of this [act] chapter must be conducted and the final

determination made within 120 days after the protest is filed.

Unless waived by the parties, failure to do so will be deemed

the equivalent of a determination that the manufacturer or

A05180 - 20 -

distributor acted with [good] JUST cause and, in the case of a

protest of a proposed establishment or relocation of a dealer

under section [27] 326, that [good] JUST cause does not exist

for refusing to permit the proposed additional or relocated new

vehicle dealer unless such delay is caused by acts of the

manufacturer, distributor or the additional or relocating

dealer. Any parties to such a hearing shall have a right of

review of the decision in a court of competent jurisdiction

pursuant to 2 Pa.C.S. § 701 (relating to scope of subchapter).

If the board determined that [good] JUST cause does not exist

for refusing to permit the proposed additional or relocated new

vehicle dealer and the manufacturer or distributor thereafter

enters into a franchise establishing that new vehicle dealer,

the manufacturer or distributor shall not be liable for damages

based upon such establishment even if a court reverses the

determination of the board.

(b) Procedure.--The procedure at the hearing shall be

governed by 1 Pa. Code Pt. II (relating to general rules of

administrative practice and procedure) with the following

exceptions:

(1) In the event that the protest involves a termination

or failure to renew the franchise of a new vehicle dealer,

the dealer shall be permitted to review a manufacturer's or

distributor's files related to that dealer upon written

request.

(2) The board may order on its own initiative, or

pursuant to a party's request, that part of the evidence for

hearing be submitted to it in the form of depositions.

is remanded by a court of competent jurisdiction for further

A05180 - 21 -

action by the board, the board shall consider the action and

issue a final determination, not later than 120 days following

receipt of the record from such court, unless the 120-day time

period for the board to issue a final determination is waived or

extended by the parties.

(d) Dealer protest of automobile, motorcycle or truck

manufacturer act or omission.--

(1) Except for protests authorized under section [13 or

27] 312 or 326 and notwithstanding any other remedy available

under this [act] chapter, any new vehicle dealer who believes

that an automobile, motorcycle or truck manufacturer or

distributor with whom the new vehicle dealer holds a

franchise agreement has violated or is violating any

provision of this [act] chapter may file a protest with the

board setting forth the factual and legal basis for such

violation.

(2) The board shall issue a final determination within

120 days after the protest is filed, unless the 120-day time

period for the board to issue a final determination is waived

or extended by the parties.

(3) It shall be the burden of the automobile, motorcycle

or truck manufacturer to prove it has not violated any

provision of this [act] chapter as set forth in the protest

filed by the new vehicle dealer.

(4) The protested action shall not become effective

until the final determination is issued by the board and

shall not be effective thereafter if the board has determined

that there is [good] JUST cause for not permitting the

protested action.

(5) The board shall be empowered to direct or require

A05180 - 22 -

the automobile, motorcycle or truck manufacturer or

distributor to perform such acts as necessary in order for

the manufacturer or distributor to comply with the provisions

of this [act] chapter.

(E) APPLICABILITY.--THE PROTEST PROVISIONS OF THIS SECTION

APPLY TO CHAPTER 5 ACTIVITIES AND ACTIONS BETWEEN RV

recreational vehicle DEALERS, MANUFACTURERS, DISTRIBUTORS AND

SUPPLIERS.

Section [9] 307. Reimbursement for all parts and service

required by the manufacturer or distributor;

reimbursement audits.

(a) Manufacturers or distributors to notify dealers of their

obligations.--

* * *

(4) This subsection shall not apply to manufacturers or

distributors of manufactured housing [or recreational

vehicles].

* * *

(e) Warranty reimbursement and incentive or reimbursement

program approval and audits.--

* * *

(3) * * *

(ii) During the 30-day time period under

subparagraph (i), a new vehicle dealer may file with the

board a protest of the charge-backs as provided for

under section [8] 306. When such a protest is filed, the

board shall inform the manufacturer or distributor that a

timely protest has been filed and that the manufacturer

or distributor shall not charge back the new vehicle

dealer:

A05180 - 23 -

(A) until the board has held a hearing; or

(B) if the board has determined that there is

good cause for not permitting the charge-back of such

new vehicle dealer.

* * *

(g) Applicability.--This section shall not apply to

manufacturers RECREATIONAL VEHICLE WARRANTORS or dealers of

recreational vehicles .

Section [10] 308. Damage disclosure.

(a) Notice to dealer.--Each manufacturer or distributor of

new vehicles sold or transferred to a new vehicle dealer shall

notify the new vehicle dealer in writing prior to delivery of

the vehicle of any material damage to the vehicle which is known

to the manufacturer or distributor which was sustained or

incurred by the vehicle at any time after the manufacturing

process is complete but prior to delivery of the vehicle to the

dealer. A dealer may reject the delivery of a nonconforming

vehicle under the provisions of 13 Pa.C.S. (relating to

commercial code).

(b) Notice to purchaser.--When selling a new vehicle, each

new vehicle dealer shall notify the purchaser in writing at the

time of sale of any material damage sustained or incurred by the

vehicle at any time after the manufacturing process is complete

which is disclosed by the manufacturer to the new vehicle

dealer.

manufacturers and dealers of manufactured housing or to

manufacturers, distributors or dealers of motorcycles or

recreational vehicles.

(d) Other statutes and decisions.--Nothing in this section

A05180 - 24 -

shall be construed to diminish any obligation to provide notice

to the purchaser of a new vehicle which obligation is imposed by

any other provision of law or by any judicial decision,

including, but not limited to, the act of December 17, 1968

(P.L.1224, No.387), known as the Unfair Trade Practices and

Consumer Protection Law.

Section [11] 309. Mediation and arbitration.

(a) Mediation of disputes between licensees.--

(1) A dealer or distributor may not file a complaint,

petition or protest or bring an action in a court of

competent jurisdiction against a manufacturer or distributor

based on an alleged violation of this [act] chapter or in a

protest action under this [act] chapter regarding an

establishment, relocation or termination of a franchise

agreement unless the dealer or distributor serves a demand

for mediation upon the manufacturer or distributor before or

contemporaneous with the filing of the complaint, petition or

protest or the bringing of an action. A demand for mediation

shall be in writing and served upon the manufacturer or

distributor by certified mail at an address designated for

that manufacturer or distributor within records of the dealer

or distributor. The demand for mediation shall contain a

brief statement of the dispute and the relief sought by the

dealer or distributor filing the demand.

(2) Within 20 days after the date a demand for mediation

is served, the parties shall mutually select an independent

mediator and meet with that mediator for the purpose of

attempting to resolve the dispute. The meeting place shall be

in this Commonwealth in a location selected by the mediator.

The mediator may extend the date of the meeting for [good]

A05180 - 25 -

JUST cause shown by either party or upon stipulation of both

parties.

(3) The service of a demand for mediation under

paragraph (1) shall stay the time for the filing of any

complaint, petition, protest or action under this [act]

chapter until representatives of both parties have met with a

mutually selected mediator for the purpose of attempting to

resolve the dispute. If a complaint, petition, protest or

action is filed before the meeting, the board or court shall

enter an order suspending the proceeding or action until the

meeting has occurred and may, upon written stipulation of all

parties to the proceeding or action that they wish to

continue to mediate under this subsection, enter an order

suspending the proceeding or action for as long a period as

the board or court considers appropriate. A suspension order

issued under this paragraph may be revoked upon motion of any

party or upon motion of the board or the court.

(4) The board shall encourage dealers, manufacturers and

distributors to establish, maintain and administer a panel of

mediators who have the character, ability and training to

serve as mediators and who have knowledge of the vehicle

industry.

(5) Mandatory mediation under this section shall not be

required of any of the following:

(i) A dealer seeking to dual two or more franchises

or a dealer seeking a relocation involving a request to

dual two or more franchises unless another dealer of the

same line-make has a right to protest the proposed

relocation under section [27] 326.

(ii) Manufacturers, distributors or dealers of

A05180 - 26 -

motorcycles.

(b) Arbitration of disputes between licensees.--After a

dispute arises, the licensees may voluntarily agree to submit a

dispute arising under this [act] chapter pertaining to a

complaint, petition, protest or action to binding or nonbinding

arbitration. Any arbitration proceeding shall be voluntary,

initiated by serving a written demand for arbitration on the

other party, and shall be conducted under the provisions of 42

Pa.C.S. Ch. 73 Subch. A (relating to statutory arbitration) and

administered by representatives of dealers, manufacturers or

distributors.

arbitrators.--A mediator or arbitrator is immune from civil

liability for any good faith act or omission within the scope of

the mediator's or arbitrator's performance of his powers and

duties under this section. Every act or omission of a mediator

or arbitrator is presumed to be a good faith act or omission.

This presumption may be overcome only by clear and convincing

evidence.

(d) Recreational vehicles exempted.--This section shall not

apply to recreational vehicle manufacturers, distributors or

dealers.

Section [12] 310. Unlawful acts by manufacturers or

distributors.

(a) Unlawful coercive acts.--It shall be a violation for any

manufacturer, factory branch, distributor, field representative,

officer, agent or any representative whatsoever of such

manufacturer, factory branch or distributor licensed under this

[act] chapter to require, attempt to require, coerce or attempt

to coerce any new vehicle dealer in this Commonwealth to:

A05180 - 27 -

(1) Order or accept delivery of any new vehicle, part or

accessory thereof, equipment or any other commodity not

required by law which shall not have been voluntarily ordered

by the new vehicle dealer, except that this paragraph is not

intended to modify or supersede any terms or provisions of

the franchise requiring new vehicle dealers to market a

representative line of those vehicles which the manufacturer

or distributor is publicly advertising.

(2) Order or accept delivery of any new vehicle with

special features, accessories or equipment not included in

the list price of such vehicles as publicly advertised by the

manufacturer or distributor.

(3) Participate monetarily in an advertising campaign or

contest or to purchase unnecessary or unreasonable quantities

of any promotional materials, training materials, showroom or

other display decorations or materials at the expense of the

new vehicle dealer.

(4) Enter into any agreement with the manufacturer or to

do any other act prejudicial to the new vehicle dealer by

threatening to terminate or not renew a franchise or any

contractual agreement existing between the dealer and the

manufacturer or distributor, except that this paragraph is

not intended to preclude the manufacturer or distributor from

insisting on compliance with the reasonable terms or

provisions of the franchise or other contractual agreement

and notice in good faith to any new vehicle dealer of the new

vehicle dealer's violation of such terms or provisions shall

not constitute a violation of [the act] this chapter.

(5) Change the capital structure of the new vehicle

dealer or the means by or through which the new vehicle

A05180 - 28 -

dealer finances the operation of the dealership, provided

that the new vehicle dealer at all times meets any reasonable

capital standards determined by the manufacturer or

distributor in accordance with uniformly applied criteria,

and also provided that no change in the capital structure

shall cause a change in the principal management or have the

effect of a sale of the franchise without the consent of the

manufacturer or distributor. The consent shall be granted or

denied within 60 days of receipt of a written request from

the new vehicle dealer.

(6) (i) Refrain from participation in the management

of, investment in or the acquisition of any other line of

new vehicle or related products. This paragraph does not

apply unless the new vehicle dealer maintains a

reasonable line of credit for each make or line of new

vehicle, the new vehicle dealer remains in compliance

with the reasonable terms of the franchise agreement and

any reasonable facilities requirements of the

manufacturer or distributor, and no change is made in the

principal management of the new vehicle dealer. The

reasonable facilities requirements shall not include any

requirement that a new vehicle dealer establish or

maintain exclusive facilities, personnel or display space

when such requirements or any of them would be

unreasonable in light of economic conditions and would

not otherwise be justified by reasonable business

considerations.

(ii) (A) Nothing in this paragraph shall permit the

dualing or relocation and addition of a line-make to

the dealership facilities without the new vehicle

A05180 - 29 -

dealer providing written certification to the

manufacturer or distributor that the new vehicle

dealer, with the addition of a line-make by the new

vehicle dealer, will maintain a reasonable line of

credit for each make or line of new vehicle and the

new vehicle dealer will remain in compliance with the

reasonable terms of the franchise agreement and any

reasonable facilities requirements of the

manufacturer or distributor, excluding any exclusive

facility or nondualing requirements.

(B) The dealer shall provide the following

information:

(I) the address of the proposed new

location, if applicable;

(II) a brief description of the proposed

facility; and

(III) the owner of the proposed new

location.

distributor with regard to the dualing or relocation

and dualing of two or more franchises shall be

delivered to the dealer within 45 days of receipt of

the written certification from the new vehicle

dealer. Failure on the part of the manufacturer or

distributor to timely respond to a dualing or

relocation and dualing certification shall be deemed

to be an approval of the new vehicle dealer's

certification notice of dualing or relocation and

dualing of two or more franchises. The manufacturer

or distributor shall execute and deliver a franchise

A05180 - 30 -

reflecting the relocated address of the dealership

facilities to the new vehicle dealer within 30 days

of the date of the deemed approval.

(iii) A dealer may file a complaint, petition or

protest, or bring an action in a court of competent

jurisdiction against a manufacturer or distributor, based

on a denial of a request by a dealer to dual or relocate

and dual two or more franchises without first going

through mediation required under section [11] 309. If a

dualing or relocation and dualing denial protest is filed

with the board, a hearing shall be held within 45 days of

the protest's filing and a final determination issued by

the board within 90 days of the protest filing. The

burden of proof shall be on the manufacturer or

distributor to show that the dualing or relocation and

dualing is unreasonable. No automobile, motorcycle or

truck manufacturer or distributor may limit or restrict

the addition of a line-make to the dealership facilities

if the new vehicle dealer maintains a reasonable line of

credit for each make or line of new vehicle and the new

vehicle dealer remains in compliance with the reasonable

terms of the franchise agreement and any reasonable

facilities requirements of an automobile, motorcycle or

truck manufacturer or distributor. This paragraph shall

also apply if the dealer seeks to dual two or more line-

makes and no relocation will occur. This paragraph shall

not impair the rights of another dealer of the same line-

make to protest a proposed relocation under section [27]

326.

(7) Prospectively assent to a release, assignment,

A05180 - 31 -

novation, waiver or estoppel which would relieve any person

from liability to be imposed by this [act] chapter or to

require any controversy between a new vehicle dealer and a

manufacturer, distributor or representative to be referred to

any person other than the duly constituted courts of the

Commonwealth or the United States of America, if such

referral would be binding upon the new vehicle dealer. A

dealer and the manufacturer, distributor or representative,

by themselves or through their respective counsel, are

permitted to agree to execute a written agreement or to

arbitrate in a binding or nonbinding manner after a

controversy arises.

(8) Expand, construct or significantly modify facilities

without assurances that the manufacturer or distributor will

provide a reasonable supply of new vehicles within a

reasonable time so as to justify such an expansion in light

of the market and economic conditions.

(8.1) Unreasonably expand, construct or significantly

modify facilities in light of the market and economic

conditions or require a separate facility for the sale or

service of a line-make of a new vehicle if the market and

economic conditions do not clearly justify the separate

facility.

(8.2) (i) Purchase a good or service from a vendor

selected, identified or designated by a manufacturer,

factory branch, distributor, distributor branch or an

affiliate of a manufacturer, factory branch, distributor,

distributor branch by agreement, program, incentive

provision or other method if expanding, constructing or

significantly modifying a facility without allowing the

A05180 - 32 -

dealer the option to obtain a good or service of

substantially similar quality from a vendor chosen by the

dealer and approved by the manufacturer, which approval

may not be unreasonably withheld.

(ii) Nothing under this paragraph shall be construed

to:

(A) Allow a dealer or vendor to eliminate or

impair a manufacturer's intellectual property rights,

including a manufacturer's intellectual property

rights in a trademark.

(B) Permit a dealer to erect or maintain signs

that do not conform to the intellectual property

usage guidelines of the manufacturer.

(9) Agree as a condition to granting or renewing a

franchise to waive, limit or disclaim a right that the dealer

may have to protest the establishment or relocation of

another vehicle dealer in the relevant market area as

provided in section [27] 326, unless such agreement is

voluntary.

(10) (i) Sell, offer to sell or sell exclusively an

extended service contract, extended maintenance plan or

similar product, such as gap products, offered, endorsed

or sponsored by the manufacturer or distributor by the

following means:

(A) By an act or statement that the manufacturer

or distributor will in any manner impact the dealer,

whether it is express or implied or made directly or

indirectly.

(B) By a contract, or an express or implied

offer of contract, made to the dealer on the

A05180 - 33 -

condition that the dealer shall sell, offer to sell

or sell exclusively an extended service contract,

extended maintenance plan or similar product offered,

endorsed or sponsored by the manufacturer or

distributor.

the franchise based on the sale of extended service

contracts, extended maintenance plans or similar

products offered, endorsed or sponsored by the

manufacturer or distributor.

(D) By requiring the dealer to actively promote

the sale of extended service contracts, extended

maintenance plans or similar products offered,

endorsed or sponsored by the manufacturer or

distributor.

(ii) Nothing in this paragraph shall prohibit a

manufacturer or distributor from providing incentive

programs to a new vehicle dealer who makes the voluntary

decision to offer to sell, sell or sell exclusively an

extended service contract, extended maintenance plan or

similar product offered, endorsed or sponsored by the

manufacturer or distributor.

(b) Violations.--It shall be a violation of this [act]

chapter for any manufacturer, factory branch, distributor, field

representative, officer, agent or any representative whatsoever

of such manufacturer, factory branch or distributor licensed

under this [act] chapter to:

(1) Delay, refuse or fail to deliver new vehicles or new

vehicle parts or accessories in a reasonable time and in

reasonable quantity relative to the new vehicle dealer's

A05180 - 34 -

facilities and sales potential after acceptance of an order

from a new vehicle dealer having a franchise for the retail

sale of any new vehicle sold or distributed of an order from

a new vehicle dealer having a franchise for the retail sale

of any new vehicle sold or distributed by the manufacturer or

distributor as are covered by such franchise, if such

vehicle, parts or accessories are publicly advertised as

being available for immediate delivery. There is no violation

if the failure is caused by acts or causes beyond the control

of the manufacturer or distributor.

(2) Unfairly discriminate among its new vehicle dealers

with respect to warranty, recall, service contract or any

other service required by the manufacturer or distributor

with regard to labor or parts reimbursement.

(3) Unreasonably withhold consent to the sale, transfer

or exchange of the franchise to a qualified buyer capable of

being licensed as a new vehicle dealer in this Commonwealth

who meets the manufacturer's or distributor's reasonable

requirements for appointment as a dealer.

(4) Unreasonably withhold consent to the relocation of

an existing new vehicle dealer. If the relocation involves

dualing of two or more franchises, the requirements of

subsection (a)(6)(ii) and (iii) shall apply and paragraph (5)

shall not apply.

(5) Fail to respond in writing to a request for consent

as specified in paragraphs (3) and (4) within 60 days of

receipt of a written request on the forms, if any, generally

utilized by the manufacturer or distributor for such purposes

and containing the information required. The failure to

respond within the time period set forth in this paragraph

A05180 - 35 -

shall be deemed to be approval of the request, and the

manufacturer or distributor shall execute and deliver a

franchise to the applicant within 30 days of the expiration

of this time period. A manufacturer or distributor shall

acknowledge in writing to the applicant the receipt of the

forms, and, if the manufacturer or distributor requires

additional information to complete its review, the

manufacturer or distributor shall notify the applicant within

15 days of the receipt of the forms. If the manufacturer or

distributor fails to request additional information from the

applicant within 15 days after receipt of the initial forms,

the 60-day time period for approval shall be deemed to run

from the initial receipt date. Otherwise, the 60-day time

period for approval shall run from receipt of the

supplemental requested information. In no event shall the

total time period for approval exceed 75 days from the date

of the receipt of the initial forms.

(6) Prevent or attempt to prevent by contract or

otherwise, any new vehicle dealer from changing the executive

management control of the new vehicle dealer unless the

manufacturer or distributor, having the burden of proof, can

show that such change of executive management will result in

executive management or control by a person or persons who

are not of good moral character or who do not meet

reasonable, preexisting, and, with consideration given to the

volume of sales and service of the dealership, uniformly

applied minimum business experience standards. Where the

manufacturer or distributor rejects a proposed change in

executive management control, the manufacturer or distributor

shall give written notice of its reasons to the dealer within

A05180 - 36 -

60 days of notice to the manufacturer by the dealer of the

proposed change; otherwise the change in the executive

management of the new vehicle dealer shall be presumptively

deemed approved.

(7) Offer in connection with a sale of a new vehicle or

vehicles to the Federal Government, the Commonwealth or any

political subdivision thereof, any discounts, refunds or any

other type of inducement to any new vehicle dealer without

making the same offer or offers available to all other of its

new vehicle dealers within this Commonwealth. This paragraph

shall not be construed to prevent the offering of incentive

programs or other discounts if the discounts are equally

available to all franchised vehicle dealers in this

Commonwealth on a proportionally equal basis.

(8) Fail to indemnify its franchised dealers,

notwithstanding the terms of any franchise agreement, against

any judgment for damages or settlement approved in writing by

the manufacturer or distributor, including, but not limited

to, court costs and reasonable attorney fees of the new

vehicle dealer, arising out of complaints, claims or

lawsuits, including, but not limited to, strict liability,

negligence, misrepresentation, express or implied warranty or

rescission of the sale as defined in 13 Pa.C.S. § 2608

(relating to revocation of acceptance in whole or in part) to

the extent that the judgment or settlement relates solely to

the alleged defective or negligent functions by the

manufacturer or distributor beyond the control of the dealer.

(9) Sell or exchange with a second or final stage

manufacturer, retail consumer or end user except through a

licensed new vehicle dealer. This paragraph shall not apply

A05180 - 37 -

to manufacturer or distributor sales of new vehicles to the

Federal Government, charitable organizations and employees of

the manufacturer.

(10) [(i)] Modify a franchise during the term of the

franchise or upon its renewal if the modification

substantially and adversely affects the new vehicle

dealer's rights, obligations, investment or return on

investment without giving 60 days' written notice of the

proposed modification to the new vehicle dealer unless

the modification is required by law, court order or the

board. Within the 60-day notice period, the new vehicle

dealer may file with the board and serve notice upon the

manufacturer or distributor a protest requesting a

determination of whether there is [good] JUST cause for

permitting the proposed modification. The board shall

promptly schedule a hearing and decide the matter within

180 days from the date the protest is filed. Multiple

protests pertaining to the same proposed modification

shall be consolidated for hearing. The proposed

modification shall not take effect pending the

determination of the matter. In determining whether there

is [good] JUST cause for permitting a proposed

modification, the board shall consider any relevant

factors, including, but not limited to:

[(A)] (i) The reasons for the proposed

modification.

[(B)] (ii) Whether the proposed modification is

applied to or affects all new vehicle dealers in a

nondiscriminatory manner.

[(C)] (iii) Whether the proposed modification

A05180 - 38 -

will have a substantial and adverse effect upon the

new vehicle dealer's investment or return on

investment.

[(D)] (iv) Whether the proposed modification is

in the public interest.

[(E)] (v) Whether the proposed modification is

necessary to the orderly and profitable distribution

of products by the manufacturer or distributor.

[(F)] (vi) Whether the proposed modification is

offset by other modifications beneficial to the new

vehicle dealer.

[(ii) This paragraph shall not apply to recreational

vehicle manufacturers, distributors or dealers.]

(11) Fail or refuse to offer to its new vehicle dealers

all new model vehicles manufactured for that line-make

franchise or require any of its new vehicle dealers to pay an

unreasonable fee, unreasonably remodel or renovate the new

vehicle dealer's existing facilities, unreasonably purchase

or construct a new facility, unreasonably purchase parts,

supplies, tools, equipment, operational services, other

merchandise or unreasonably participate in training programs

in order to receive any new model vehicles, parts or

accessories. It shall not be a violation of this paragraph if

the manufacturer or distributor fails to supply new vehicle

dealers with model vehicles, parts or accessories due to

circumstances beyond the control of the manufacturer or

distributor, including, but not limited to, strike or labor

difficulty, shortage of materials, freight embargo or

temporary lack of capacity.

(12) Operate a system for the allocation of new vehicles

A05180 - 39 -

which is not reasonable or fair to a new vehicle dealer. Upon

the written request of any of its new vehicle dealers, a

manufacturer or distributor shall disclose to the new vehicle

dealer the method on which new vehicles are allocated among

the new vehicle dealers of the same line-make. The

manufacturer distributor has the burden of establishing the

fairness of its allocation.

(13) Own, operate or control, either directly or

indirectly, any vehicle warranty facility. Nothing in this

subsection shall prohibit any manufacturer or distributor

from owning, operating or controlling any warranty facility

for warranty repairs on vehicles owned or operated by the

manufacturer or distributor.

(14) Compel a dealer through a finance subsidiary of the

manufacturer or distributor to agree to unreasonable

operating requirements or to directly or indirectly terminate

a new vehicle dealer through the actions of a finance

subsidiary of the manufacturer or distributor. This paragraph

shall not limit the right of a financing entity to engage in

business practices in accordance with the trade of retail or

wholesale vehicle financing.

(15) Use any subsidiary corporation, affiliated

corporation or any other controlled corporation, partnership,

association, entity or person to accomplish what would

otherwise be illegal conduct under this [act] chapter on the

part of the manufacturer or distributor.

(16) Release to any third party any customer information

which has been provided by the new vehicle dealer to the

manufacturer or distributor if the customer objects in

writing to releasing the information, unless the information

A05180 - 40 -

is necessary for the manufacturer or distributor to meet its

obligations to customers or new vehicle dealers under

requirements imposed by Federal or State law.

(17) Require or coerce or attempt to require or coerce a

new vehicle dealer to pay attorney fees of the manufacturer

or distributor related to hearings and appeals brought under

this [act] chapter.

(18) Vary the price charged to any of its new vehicle

dealers, which has the effect of causing a difference in the

price of any similarly equipped new vehicle to its new

vehicle dealers or to the ultimate purchaser. This paragraph

shall not be construed to prevent the offering of incentive

programs or other discounts if the incentive or discounts are

available to all competing new vehicle dealers of the same

line-make in this Commonwealth on a proportionately equal

basis.

(19) Directly or indirectly condition any of the

following actions on a dealer, prospective dealer or owner of

an interest in a dealership franchise or facility to enter

into a site-control agreement or exclusive use agreement:

(i) awarding of a franchise to a prospective dealer;

(ii) adding of a line-make or franchise to an

existing dealer's franchise or facility;

(iii) renewing of an existing dealer's franchise;

(iv) approving of the relocation of an existing

dealer's franchise or facility; or

(v) approving of the sale or transfer of a dealer's

ownership of a franchise or facility.

Nothing in this paragraph prohibits a dealer, prospective

dealer or owner of an interest in a dealership franchise or

A05180 - 41 -

facility from voluntarily entering into such an agreement for

other consideration. However, a provision contained in an

agreement which is not voluntarily entered into by a dealer,

prospective dealer or owner of an interest in a dealership

franchise or facility on or after the effective date of this

paragraph that is inconsistent with the provisions of this

section shall be a violation of this [act] chapter.

(1) Except as otherwise provided in this subsection, a

manufacturer or distributor shall not:

(i) own or hold an interest, other than a passive,

minority interest in a publicly traded dealer held for

investment purposes, in a dealer licensed under this

[act] chapter which is engaging in the business of

buying, selling or exchanging vehicles; or

(ii) operate or control a dealer licensed under this

[act] chapter which is engaging in the business of

buying, selling or exchanging vehicles.

(2) A manufacturer or distributor may own or hold an

interest in a dealer or otherwise operate or control a dealer

for a period not to exceed 12 months from the date the

manufacturer or distributor acquires an interest in the

dealer if:

(i) The person from whom the manufacturer or

distributor acquired the dealer was a franchised dealer.

(ii) The dealer is for sale by the manufacturer or

distributor at a reasonable price and on reasonable terms

and conditions.

(3) On a showing by a manufacturer or distributor of

[good] JUST cause, the board may extend the time limit set

A05180 - 42 -

forth in paragraph (2). An extension under this paragraph may

not exceed 12 months. Where an extension under this paragraph

is sought, the manufacturer or distributor shall provide

notice delivered 30 days before the extension request is

filed with the board to all the same line-make dealers within

a ten-mile radius of the manufacturer or distributor owned,

operated or controlled dealer. An application for an

extension is subject to protest by a dealer of the same line-

make who is within the ten-mile radius of the manufacturer or

distributor owned, operated or controlled dealer.

(4) For the primary purpose of broadening the diversity

of its dealer body and enhancing opportunities for qualified

persons who are part of a group who have historically been

underrepresented in its dealer body or other qualified

persons who lack the resources to purchase a dealer outright,

a manufacturer or distributor may temporarily own an interest

in a dealer if the manufacturer's or distributor's

participation in the dealer is in a bona fide relationship

with a franchised dealer who:

(i) At or prior to the time the prospective dealer

takes an equity interest in the dealer, the prospective

dealer is obligated to make a significant investment in

the dealer, subject to loss.

(ii) Has an ownership interest in the dealer.

(iii) Operates the dealer under a written agreement

to acquire full ownership of the dealer within a

reasonable time and under reasonable terms and

conditions.

(5) A manufacturer or distributor shall not unfairly

discriminate or compete in terms of any sales, service or

A05180 - 43 -

operational activities with a new vehicle dealer of the same

line-make when a manufacturer or distributor operates a new

vehicle dealer under this subsection.

(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

Pa.C.S. § 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 [act] chapter.

(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] 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

A05180 - 44 -

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] chapter.

(II) If a controlling interest is

transferred, sold or conveyed to another

manufacturer, distributor, person or entity

required to be licensed under this [act] 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 [act] 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.

(7) Nothing under this subsection shall prohibit the

sale or lease of used vehicles obtained as a result of a

trade or return of a vehicle during the purchase of a new

A05180 - 45 -

vehicle under paragraph (6) at a manufacturer's licensed

location.

(d) Applicability.--

(1) Subsections (b)(11) through (17) and (c) shall not

apply to manufacturers, distributors or dealers of

manufactured housing [or recreational vehicles].

(1.1) This section shall not apply to manufacturers,

distributors or dealers of recreational vehicles.

(2) Subsections (b)(13) and (15) and (c) shall not apply

to the ownership or activities of a manufacturer in the

operation of a licensed dealer or a licensed dealer that

fulfills the following conditions:

(i) The manufacturer maintains an ownership interest

in, operates or controls a licensed dealer whose primary

business purpose is the rental of vehicles.

(ii) Vehicles sold by the licensed dealer primarily

engaged in the business of rental vehicles are limited to

those vehicles used for rental purposes or vehicles

obtained in trade for such vehicles.

(iii) Any warranty repairs are limited to those

repairs conducted on the vehicles used in the vehicle

rental business or vehicles sold by the licensed dealer.

Section [12.1] 311. Area of responsibility.

(a) General rule.--It shall be a violation of this [act]

chapter for any manufacturer or distributor, officer, agent or

any representative of a manufacturer or distributor to

unreasonably alter a new vehicle dealer's area of

responsibility. The following shall apply:

(1) Advance notice from the manufacturer of an

alteration of a dealer's area of responsibility shall be

A05180 - 46 -

given at least 60 days before the effective date of the

alteration. The notice shall include an explanation of the

basis for the alteration.

(2) At any time before the effective date of such

alteration of a dealer's area of responsibility, and after

the completion of any internal appeal process pursuant to the

manufacturer's or distributor's policy manual, the dealer may

file a protest as provided for under section [8] 306. In the

event a protest is filed, no such alteration of a dealer's

area of responsibility shall become effective until final

determination by the board.

(3) If a dealer protests under paragraph (2), the burden

of proof shall be on the manufacturer to show that the

dealer's area of responsibility is reasonable and justifiable

in light of the market conditions.

(4) If a new vehicle dealer's area of responsibility is

altered, the manufacturer shall allow 18 months for the

dealer to penetrate the market and to become sales effective

prior to taking negative legal action claiming a breach or

nonperformance of the dealer's sales performance

responsibilities against the dealer.

(b) Exception.--This section shall not apply to recreational

vehicle manufacturers, distributors or dealers.

Section [13] 312. Termination of franchises.

(a) Terminations.--It shall be a violation of this [act]

chapter for any manufacturer or distributor, officer, agent or

any representative whatsoever to unfairly, without due regard to

the equities of said dealer and without just cause, terminate or

fail to renew the franchise of any vehicle dealer; or being a

manufacturer, to unfairly, without due regard to the equities of

A05180 - 47 -

a distributor and without just cause, terminate or fail to renew

the franchise of any distributor. The manufacturer or

distributor shall not meet its burden of proof to terminate or

fail to renew the franchise if the acts of the manufacturer or

distributor, in whole or in significant part, caused the dealer

or distributor to be unable to comply substantially with the

reasonable and material requirements of the franchise.

(b) Mutual agreement of termination filing.--All existing

dealers' franchises shall continue in full force and operation

under a newly appointed distributor on the termination of an

existing distributor unless a mutual agreement of termination is

filed with the board between the newly appointed distributor and

such dealer.

advance notice of such termination or failure to renew shall be

given the dealer or distributor prior to the effective date

thereof unless the nature or character of the reason for

termination or failure to renew is such that the giving of such

notice would not be in the public interest. A copy of the notice

shall also be provided to the board.

(1) The 60-day notice period required by this subsection

may be reduced to not less than 15 consecutive business days

if the ground for termination or failure to renew is:

(i) insolvency of the dealer or filing of any

petition by or against the dealer under any bankruptcy or

receivership law;

(ii) failure of the dealer to conduct customary

sales and service operations during business hours for

seven consecutive business days, except in circumstances

beyond the direct control of the dealer;

A05180 - 48 -

(iii) conviction of the dealer, or any owner

thereof, of any felony which is punishable by

imprisonment;

(iv) suspension or revocation of any license which

the new vehicle dealer is required to have to operate a

dealership; or

(v) based on a determination that there was a

fraudulent misrepresentation by the dealer to the

manufacturer or distributor which is material to the

franchise.

(2) The 60-day notice period under this subsection is

not required if the new vehicle dealer or distributor waives

it voluntarily in writing.

(d) Appeals.--At any time before the effective date of such

termination or failure to renew, the dealer or distributor may

appeal to the board for a hearing on the merits, and following

due notice to all parties concerned, such hearing shall be

promptly held. No such termination or failure to renew shall

become effective until final determination of the issue by the

board.

(e) Burden of proof and just cause terminations on appeal.--

In the event of a dealer or distributor appeal of the

termination or failure to renew of its franchise, the burden of

proof shall be on the manufacturer or distributor to show that

such termination or failure to renew was for just cause. Any

termination or failure to renew which is subject to section [14]

313 shall not be subject to this subsection.

(f) Exception.--This section shall not apply to recreational

vehicle manufacturers, distributors or dealers.

Section [14] 313. Industry reorganization.

A05180 - 49 -

(a) Violation.--

(1) It shall be a violation of this [act] chapter for a

manufacturer or distributor directly or indirectly or through

any officer, agent or employee to terminate or fail to renew

a franchise of a new vehicle dealer in connection with:

(i) any change in ownership or control of all or any

part of the manufacturer's or distributor's business

whether by sale or transfer of assets, corporate stock or

other equity interest; assignment; merger; consolidation;

combination; joint venture; redemption; operation of law;

or otherwise; or

(ii) the termination, suspension or cessation of all

or any part of the manufacturer's or distributor's

business operations except for a termination of a part of

the manufacturer's or distributor's business operations

throughout the United States that is not otherwise part

of any change in ownership or control of the

manufacturer's or distributor's business.

(2) Paragraph (1) shall not apply if:

(i) a manufacturer or distributor offers a dealer a

replacement franchise with reasonable terms or

conditions; or

(ii) the manufacturer or distributor, within 90 days

of the effective date of the termination or failure to

renew, compensates the dealer in an amount at least

equivalent to the higher of the fair market value of the

franchise or portion of the franchise terminated or

failed to be renewed on the date the manufacturer or

distributor announces the act that results in the

termination or nonrenewal of the franchise or the date on

A05180 - 50 -

which the notice of termination or nonrenewal of the

franchise is issued.

(3) If the manufacturer or distributor either or both:

(i) authorizes the dealer to continue servicing and

supplying parts, including warranty service and parts,

for any goods or services marketed by the dealer pursuant

to the franchise for a period of not less than five years

from the effective date of the termination or failure to

renew and continues to reimburse the dealer for warranty

parts and service at the same prices and terms as

franchised dealers for the manufacturer or distributor;

(ii) continues to supply the dealer with replacement

parts for any goods or services marketed by the dealer

pursuant to the franchise for a period of not less than

five years from the effective date of the termination or

failure to renew at the same prices and terms as

franchised dealers for the manufacturer or distributor;

and if a dealer chooses to continue either or both such parts

and service operation under subparagraph (i) or (ii), the

fair market value compensation of the franchise shall be

reduced to reflect the value of continuing either or both

such parts and service operation.

(b) Acts affecting franchise.--For purposes of subsection

(a), the termination or discontinuation of a series, line, brand

or class of new vehicle marketed by a manufacturer or

distributor as a distinct series, line, brand or class shall be

deemed to be the termination or nonrenewal of a franchise even

if said series, line, brand or class of new vehicle is part of a

franchise including other series, lines, brands or classes of

new vehicle, provided that nothing in this subsection shall be

A05180 - 51 -

construed as prohibiting a manufacturer or distributor from

changing, adding or deleting models, specifications, model

names, numbers or identifying marks or similar characteristics

of the new vehicles it markets, provided that such change,

addition or deletion does not result in the termination or

discontinuance of a distinct series, line, brand or class of new

vehicle.

distributor and a dealer under this section involving the

determination of the fair market valuation of a franchise shall

be determined by a court of competent jurisdiction and not by

the board.

(d) Exemption.--This section shall not apply to motorcycle

or recreational vehicle manufacturers, distributors or dealers.

Section [15] 314. Succession to franchise ownership.

(a) Succession of ownership interest.--Notwithstanding the

terms of any franchise, any owner of a new vehicle dealership

may appoint, by will or any other written instrument, a

designated family member, the spouse, child or grandchild,

spouse of a child or grandchild, brother, sister or parent of

the dealer owner, or qualified manager, who has been employed at

the dealership for at least two years, to succeed to the

ownership interest of such owner in the new vehicle dealership.

(b) Consent to succession on part of manufacturer or

distributor.--Notwithstanding the terms of any franchise, unless

there exists [good] JUST cause to withhold consent to succession

on the part of the manufacturer or distributor, any designated

family member or qualified manager of the franchise location in

question of a retiring, deceased or incapacitated owner of a new

vehicle dealership may succeed to the ownership interest of such

A05180 - 52 -

owner under the existing franchise, provided:

(1) The designated family member or qualified manager

furnishes written notice to the manufacturer or distributor

of his or her intention to succeed to the ownership of the

new vehicle dealership within 60 days after the owner's

retirement, death or incapacity.

(2) The designated family member or qualified manager

agrees to be bound by all then existing terms and conditions

of the franchise.

manufacturer or distributor may request, and the designated

family member or qualified manager shall promptly provide, such

personal and financial information as is reasonably necessary to

determine whether the succession will be honored.

(d) Withholding consent to succession.--If a manufacturer or

distributor believes that [good] JUST cause exists to withhold

consent to the succession to the ownership of a new vehicle

dealership by a designated family member or qualified manager of

a retiring, deceased or incapacitated owner of a new vehicle

dealership under the existing franchise, the manufacturer or

distributor must serve written notice on the designated family

member or qualified manager and on the board of its refusal to

honor the succession and intent to discontinue the existing

franchise with the new vehicle dealer. Such notice shall be

served no later than 60 days after the manufacturer's or

distributor's receipt of:

(1) notice of the designated family member's or

qualified manager's intent to succeed to the ownership of the

new vehicle dealer; or

(2) any personal or financial information requested by

A05180 - 53 -

the manufacturer or distributor.

(e) Notice requirements.--The notice in subsection (d) shall

state the specific grounds to withhold consent to honor the

succession and the manufacturer's or distributor's intent to

discontinue the franchise with the new vehicle dealer no sooner

than 60 days after the date the notice is served. The reasons

given for the disapproval or any explanation of those reasons by

the manufacturer or distributor shall not subject the

manufacturer or distributor to any civil liabilities unless the

reasons given or explanations made are malicious and published

with the sole intent to cause harm to the dealer or successor.

If the notice of refusal and discontinuance is not timely and

properly served, the franchise shall continue in effect, subject

to termination only as otherwise provided under this [act]

chapter.

(f) Protest requirements upon withholding of consent.--

Within 30 days after receipt of such notice or within 30 days

after the end of any appeal procedure provided by the

manufacturer or distributor, whichever is greater, the

designated family member or qualified manager may file with the

board to protest the withholding the consent to honor the

succession. When a protest is filed, the board shall promptly

notify the manufacturer or distributor that a timely protest has

been filed and that such manufacturer or distributor shall not

terminate or discontinue the existing franchise until the board

has held a hearing and issued a written decision within 120 days

of the filing of the protest nor thereafter, unless the board

determines that there is [good] JUST cause for not permitting

the succession.

(g) Conflicts.--This [act] chapter shall not preclude the

A05180 - 54 -

owner of a new vehicle dealership from designating any person as

his or her successor by written instrument filed with the

manufacturer or distributor. In the event of any conflict

between such a written instrument which has not been revoked by

written notice from the owner to the manufacturer or

distributor, and this section, the written instrument shall

govern.

(h) Restriction.--This section shall not apply if the

successor will not agree to comply with an existing agreement

pertaining to transfer of ownership made between the

manufacturer or distributor and the dealer transferor or with a

new agreement containing substantially the same terms.

(i) Exception.--This section shall not apply to recreational

vehicle manufacturers, distributors or dealers.

Section [16] 315. Manufacturer right of first refusal.

A manufacturer or distributor shall be permitted to enact a

right of first refusal to acquire the new vehicle dealer's

assets or ownership in the event of a proposed change of all or

substantially all ownership or transfer of all or substantially

all dealership assets if all of the following requirements are

met:

(1) To exercise its right of first refusal, the

manufacturer or distributor must notify the dealer in writing

within the 60-day or 75-day time limitations established

under section [12(b)(5)] 310(b)(5).

(2) The exercise of the right of first refusal will

result in the dealer and dealer's owners receiving the same

or greater consideration as they have contracted to receive

in connection with the proposed change of all or

substantially all ownership or transfer of all or

A05180 - 55 -

substantially all dealership assets. In that regard, the

following shall apply:

(i) The manufacturer or distributor shall have the

right to and shall assume the dealer's lease for, or

acquire the real property on which the franchise is

conducted, on the same terms as those on which the real

property or lease was to be sold or transferred to the

proposed new owner in connection with the sale of the

franchise, unless otherwise agreed to by the dealer and

manufacturer or distributor. The manufacturer or

distributor shall have the right to assign the lease or

to convey the real property.

(ii) The manufacturer or distributor shall assume

all of the duties, obligations and liabilities contained

in the agreements that were to be assumed by the proposed

new owner and with respect to which the manufacturer or

distributor exercised the right of first refusal,

including the duty to honor all time deadlines in the

underlying agreements, provided that the manufacturer or

distributor has knowledge of such obligations at the time

of the exercise of the right of first refusal. Failure by

an assignee of the manufacturer or distributor to

discharge such obligations shall be deemed a failure by

the manufacturer or distributor under this subsection.

(3) The proposed change of all or substantially all

ownership or transfer of all or substantially all dealership

assets does not involve the transfer of assets or the

transfer or issuance of stock by the dealer or one or more

dealer owners to a designated family member or members, the

spouse, child or grandchild, spouse of a child or grandchild,

A05180 - 56 -

brother, sister or parent of the dealer owner, of one or more

dealer owners or to a qualified manager or to a partnership

or corporation controlled by such persons.

(4) The manufacturer or distributor agrees to pay the

reasonable expenses, including reasonable attorney fees which

do not exceed the usual, customary and reasonable fees

charged for similar work done for other clients, incurred by

the proposed new owner and transferee prior to the

manufacturer's or distributor's exercise of its right of

first refusal in negotiating and implementing the contract

for the proposed change of all or substantially all ownership

or transfer of all or substantially all dealership assets.

Notwithstanding the foregoing, no payment of such expenses

and attorney fees shall be required if the dealer has not

submitted or caused to be submitted an accounting of those

expenses within 20 days of the dealer's receipt of the

manufacturer's or distributor's written request for such an

accounting. Such an accounting may be requested by a

manufacturer or distributor before exercising its right of

first refusal.

Section [17] 316. Manufacturer or distributor repurchase of

inventory and equipment.

(a) Return of property for repurchase.--A new vehicle dealer

shall return property, including, but not limited to, vehicle

inventory, parts, equipment, tools and signs, as permitted under

this section or as set forth in the franchise agreement, to the

manufacturer or distributor within 90 days of the effective date

of any termination or nonrenewal of a franchise or upon a

termination or cessation of a part of a manufacturer's or

distributor's business operations throughout the United States

A05180 - 57 -

which is not part of any change in ownership, operation or

control of all or any part of the manufacturer's or

distributor's business under section [14] 313. The manufacturer

or distributor shall supply the new vehicle dealer with

instructions on the method by which the new vehicle dealer must

return the property to the manufacturer or distributor. Within

60 days of tender of the property to the manufacturer or

distributor, the manufacturer or distributor, including medium

and heavy-duty truck component and engine manufacturers or

distributors who provide integral parts of vehicles or provide

major components by selling directly to dealers, shall

repurchase from the new vehicle dealer and remit payment to the

new vehicle dealer in accordance with their respective interest

in:

(1) Any new, undamaged and unsold vehicle inventory,

whether acquired from the manufacturer or distributor or from

another dealer of the same line-make in the ordinary course

of business within 18 months of the termination date,

provided the vehicle has less than 750 miles registered on

the odometer, not including mileage incurred in delivery from

the manufacturer or in transporting the vehicle between

dealers for sale, at the dealer's net acquisition cost, plus

any cost to the dealer for returning the vehicle inventory to

the manufacturer or distributor. A dealer shall be entitled

to the payment under this paragraph for new and undamaged

motor vehicles having a gross vehicle weight rating of at

least 10,001 pounds of current and two prior model years as

determined on a model-by-model basis within the line-make.

(2) All new, unused, undamaged parts listed in the

current price catalog acquired from a manufacturer or

A05180 - 58 -

distributor or a source approved or recommended by the

manufacturer or distributor at the dealer price listed in the

current parts catalog, less applicable allowances, plus 5% of

the catalog price of the part for the cost of packing and

returning the parts to the manufacturer or distributor.

Reconditioned or core parts shall be valued at their core

value, the price listed in the current parts catalog or the

amount paid for expedited return of core parts, whichever is

higher.

(3) Any special tools or equipment offered for sale

during the three years preceding termination or nonrenewal

and each trademark or trade name bearing signs which was

recommended or required by the manufacturer or distributor at

fair market value at the time the notice of termination or

nonrenewal is given.

In the event the inventory is subject to a security interest,

the manufacturer may make payment jointly to the dealer and the

holder of the security interest.

(b) Failure to pay sums due.--A manufacturer or distributor

who fails to pay those sums due the dealer within the prescribed

time or at such time as the dealer proffers good title prior to

the prescribed time for payment is liable to the new vehicle

dealer for:

(1) the greater of dealer net acquisition cost, fair

market value or current price of inventory;

(2) interest on the amount due, calculated at the rate

applicable to a judgment of court; and

(3) reasonable attorney fees and costs.

manufacturers, distributors or dealers of recreational vehicles

A05180 - 59 -

or manufactured housing, nor shall it apply to motorcycle

manufacturers, distributors or dealers except when the

unilateral termination or failure to renew is by the

manufacturer or distributor.

Section [18] 317. Reimbursement of rental costs for dealer

facility.

(a) Reimbursement of rental costs.--In the event of a

termination or nonrenewal under this [act] chapter, except for

termination or nonrenewal under section [14] 313, the

manufacturer or distributor shall, at the request and option of

the new vehicle dealer, also pay to the new vehicle dealer:

(1) a sum equivalent to rent for the unexpired term of

the lease or one year, whichever is less, or such longer term

as provided in the franchise, if the new vehicle dealer is

leasing the new vehicle dealership facilities from a lessor

other than the manufacturer or distributor; or

(2) a sum equivalent to the reasonable rental value of

the new vehicle dealership facilities for one year or until

the facilities are leased or sold, whichever is less, if the

new vehicle dealer owns the new vehicle dealership

facilities.

(b) Extent of requirement.--The rental payment required

under subsection (a) is only required to the extent that the

facilities were used for activities under the franchise and only

to the extent the facilities were not leased for unrelated

purposes. If payment under subsection (a) is made, the

manufacturer or distributor is entitled to possession and use of

the new vehicle dealership facilities for the period rent is

paid.

A05180 - 60 -

or recreational vehicle manufacturers, distributors or dealers.

Section [19] 318. Grounds for disciplinary proceedings.

In addition to any criminal or civil penalties otherwise

provided in this act, the board shall have the power to formally

reprimand, suspend or revoke any license or refuse to issue or

renew any license of an applicant or licensee or a person

required to be licensed under this act, if after due notice of

and hearing, the person charged is found in violation of or

fails to carry out the acts and procedures set forth in this act

or is found guilty of committing or attempting to commit any of

the acts set forth in section [23] 322 or any of the following

acts:

(1) Having had a license revoked or suspended by the

Commonwealth or another state based on grounds similar to

those which in this Commonwealth allow disciplinary

proceedings, in which case the record of such revocation or

suspension shall be conclusive evidence.

(2) Make any substantial misrepresentation of material

facts.

(3) Make any false promise of a character likely to

influence, persuade or induce the sale of a vehicle.

(4) Being a vehicle dealer or salesperson, having within

five years prior to the application for or issuance of a

license or while his current license is in force pleaded

guilty, entered a plea of nolo contendere or been found

guilty in a court of competent jurisdiction in this or any

other state or Federal jurisdiction of forgery, embezzlement,

obtaining money under false pretenses, extortion, conspiracy

to defraud, bribery, odometer tampering or any other crime

involving moral turpitude.

A05180 - 61 -

(5) Having failed or refused to account for moneys or

other valuables belonging to others which have come into his

possession arising out of the sale of vehicles.

(6) Having engaged in false, deceptive or misleading

advertising of vehicles.

(7) Having committed any act or engaged in conduct in

connection with the sale of vehicles which clearly

demonstrates unprofessional conduct or incompetency to

operate as a licensee under this act.

(8) Having made a material misstatement in application

for licensure.

(9) Having set up, promoted or aided in promotion of a

plan by which vehicles are sold to a person for consideration

and upon the further consideration that the purchaser agrees

to secure one or more persons to participate in the plan by

respectively making a similar purchase and in turn agreeing

to secure one or more persons likewise to join in said plan,

each purchaser being given the right to secure money,

credits, goods or something of value, depending upon the

number of persons joining in the plan.

(10) Having engaged in the buying, selling, exchanging,

trading or otherwise dealing in vehicles on Sunday in

violation of 18 Pa.C.S. § 7365 (relating to trading in motor

vehicles and trailers).

(i) Manufactured housing is permitted to be sold on

Sundays by licensed manufactured housing dealers without

being subject to prosecution under this paragraph.

(ii) Licensed motorcycle dealers are permitted to

buy, sell, exchange, trade or otherwise deal in

motorcycles on Sunday without being subject to

A05180 - 62 -

prosecution under this paragraph.

(11) Being a dealer or broker who advertises or

otherwise holds out to the public that he is selling new

vehicles for which he does not hold a franchise agreement in

writing with a manufacturer or distributor giving the dealer

authority to sell the particular line-make of new vehicles.

(12) Being a dealer or broker who sells new vehicles for

which he does not hold a franchise agreement in writing with

a manufacturer or distributor giving the dealer authority to

sell the particular line-make of new vehicles.

(13) Failing to take immediate remedial action when the

dealer knows that someone in his direct employ or someone who

renders vehicle-related services to the dealer for

consideration, has unlawfully tampered with the odometer of a

vehicle in his care, custody or control or which has been

sold or exchanged by the dealer. For the purpose of this

paragraph, remedial action shall be defined as at least

reporting the incident in writing to the Pennsylvania State

Police or the board.

(14) Engaging in the business for which such licensee is

licensed without at all times maintaining an established

place of business as required.

(15) Employing any person as a salesperson who has not

been licensed as required.

(16) Having had his vehicle business registration plates

(dealer identification number) suspended or revoked by the

Department of Transportation pursuant to 75 Pa.C.S. § 1374(a)

(relating to suspension or revocation of vehicle business

registration plates). A certified copy of the decision and

order of the Department of Transportation will constitute

A05180 - 63 -

conclusive evidence.

(17) Being a new car dealer whose franchise agreement

with a manufacturer or distributor, which gives the subject

dealer selling rights for that line-make, has been finally

terminated, but who continues to sell new vehicles. A

recreational vehicle or manufactured housing dealer, whose

franchise was terminated or failed to be renewed by either

the manufacturer or the dealer, who owned new vehicles prior

to the termination or nonrenewal and sold them subsequent to

the termination or nonrenewal is exempt from prosecution

under this paragraph. Such dealers shall be authorized to

sell as new all new vehicles that remain on their lot after a

franchise is terminated or failed to be renewed.

(18) Willfully failing to display a license.

(19) Failing to obey any order of the board entered

pursuant to the act.

(20) Permitting or allowing another individual or

organization not licensed by the board to use that

individual's license for the purpose of operating in this

Commonwealth in a capacity for which the individual or

organization should have held a license.

(21) Willfully having made any false statement as to a

material matter in any oath or affidavit which is required by

this act.

(22) Failing to collect a tax or fee due the

Commonwealth upon a sale of a vehicle as defined in 75

Pa.C.S. § 102 (relating to definitions).

(23) Collecting a tax or fee and failing to issue a true

copy of the tax report to the purchaser as required by law.

(24) Issuing a false or fraudulent tax report or copy

A05180 - 64 -

thereof.

(25) Failing to pay over taxes or fees collected for the

Commonwealth at the time and in the manner required by law.

(26) Violating any provision of this act.

(27) Being an unlicensed salesperson, dealer, vehicle

auction, branch lot, manufacturer or any other person or

business where a license is required under this act.

(28) Any violation of the regulations promulgated by the

board.

(29) Being a wholesale vehicle auction who permits

dealers who are not currently licensed in this Commonwealth

or any other state or jurisdiction or a vehicle business

registered with the Department of Transportation and issued a

Department of Transportation identification number or

licensed or registered by any other state or jurisdiction for

a similar activity who during the time their licenses or

registrations are suspended or revoked by the Commonwealth or

any other state to sell, represent or purchase vehicles at an

auction.

(29.1) Being a wholesale vehicle auction who permits a

vehicle business as described under paragraph (29), which is

restricted to certain vehicle buys, sales or exchanges as set

forth in section [5(f)(2)] 303(f)(2), to buy, sell or

exchange vehicles of a type which the vehicle business is not

authorized to engage in.

(30) Being a dealer which permits salespersons who are

not currently licensed in this Commonwealth or any other

state or who during the time their licenses are suspended or

revoked by the Commonwealth or any other state to sell,

represent or purchase vehicles at an auction.

A05180 - 65 -

(31) Being a public or retail vehicle auction who

knowingly and willfully permits any buyer or seller to buy or

sell vehicles which results in engaging in the business as

dealer without a license or permitting any other person to

engage in any activity which would require licensure under

this act.

(32) Being a dealer which willfully permits an

individual or salesperson to buy, sell or exchange a vehicle

for his own benefit or profit under the dealer's license.

(33) Being a dealer which willfully permits any person

who is not a licensed salesperson or owner of the dealership

to use the dealer's dealer identification number issued by

the Department of Transportation, vehicle dealer's license

number or dealer's vehicle registration plates for the

purpose of buying, selling or exchanging vehicles.

(34) Being a dealer which conducts its business under

any name other than the name in which it is registered or at

any other location than that authorized by its license.

(35) Being a dealer, agent of a dealer or a salesperson

who buys, sells or exchanges vehicles with a person who is

required to be licensed under this act if the dealer, agent

or salesperson knew or should have known that the person is

not licensed.

(36) Accepting an order of purchase or a contract from a

buyer, which offer of purchase or contract is subject to

subsequent acceptance by the seller, if such arrangement

results in the practice of bushing.

(37) Failing to produce business records when an

authorized agent of the board reasonably requests the

licensee to produce business records.

A05180 - 66 -

(38) Being a person whose license under this act or

authority to engage as a dealer or salesperson in any other

state or jurisdiction was suspended or revoked and, while the

license or authority was suspended or revoked, was physically

present at a wholesale vehicle auction or public or retail

vehicle auction during the auctioning of vehicles. A vehicle

auction shall not be subject to prosecution for a violation

of a person being physically present under this paragraph.

(39) Being an out-of-State recreational vehicle dealer

who, while buying, selling, titling, registering, financing

or exchanging recreational vehicles in this Commonwealth,

violates a Pennsylvania law or regulation or a law or

regulation of the state or jurisdiction of licensure or the

state or jurisdiction of domicile regarding the buying,

selling, titling, registering, financing or exchanging of

recreational vehicles.

(40) Being an out-of-State recreational vehicle dealer

who fails to demonstrate, upon direction of or investigation

by the board or its agents, that the out-of-State

recreational vehicle dealer satisfies the provisions of

section 32.1(c) regarding participation in this Commonwealth

in a recreational vehicle show, recreational vehicle off-

premise sale, recreational vehicle exhibition or recreational

vehicle rally.

Section [20] 319. Administrative liability of employer,

copartnership, association or corporation.

In the event of the revocation of the license issued to any

member of a partnership or to any officer of an association or

corporation, the license issued to a partnership, association or

corporation shall be revoked by the board unless, within a time

A05180 - 67 -

fixed by the board, in the case of a partnership, the connection

of the member whose license has been revoked shall be severed

and his interest in the partnership and his share in its

activities brought to an end, or in the case of an association

or corporation, the offending officer shall be discharged and

shall have no further participation in its activities.

Section [21] 320. Reinstatement.

(a) Suspension.--Upon application in writing and after a

hearing pursuant to notice, the board may reissue or modify the

suspension of any license which has been suspended.

(b) Revocation.--Unless ordered to do so by a court, the

board shall not reinstate the license of a person that has been

revoked and such person shall be required to apply for a license

after a period of five years in accordance with section [22] 321

if he desires to resume operating as a licensee at any time

after such revocation.

Section [22] 321. Application for license.

(a) Dealer's or vehicle auction's license.--Application for

license as a dealer or vehicle auction shall be made in writing

to the board, signed by the applicant, setting forth the

following:

(1) Name of applicant and location of principal place of

business to which the license will be issued.

(2) Name or style under which business is to be

conducted and, if a corporation, the state of incorporation.

(3) Name and address of each owner or partner and, if a

corporation, the names of principal officers and directors.

(4) Locations in which the business is to be conducted

if the dealer has more than one place of business.

(5) If new vehicles are to be sold, the line-make or

A05180 - 68 -

line-makes to be handled.

(6) A statement of the previous history, record and

association of the applicant and of each owner, partner,

officer and director, which statement shall be sufficient to

establish to the satisfaction of the board the reputation in

business of the applicant.

(7) A statement showing whether the applicant has

previously applied for a license and the result of such

application and whether the applicant has ever been the

holder of either a dealer, vehicle auction or salesperson

license which was revoked or suspended.

(8) If the applicant is a corporation or partnership, a

statement showing whether any of the partners, employees,

officers or directors have been refused a dealer's, vehicle

auction's or salesperson's license or have been the holder of

such a license which was revoked or suspended.

(9) A statement by the applicant that he has met all

facility requirements as noted herein and as required by

regulation.

(b) Salesperson's license.--Application for license as a

salesperson shall be made in writing to the board, signed by the

applicant, setting forth the following:

(1) The applicant's name and address.

(2) The period of time, if any, during which he has been

engaged in the occupation of salesperson.

(3) The name and address of his last employer.

(4) The name and address of the dealer then employing

him or into whose employ he is about to enter. If the

applicant is to be licensed for a dealer who is licensed in

more than one category or at more than one location and the

A05180 - 69 -

applicant desires to sell for each of the dealer's licensed

entities, the name and address of the primary location and of

each other entity shall be supplied.

(5) The recommendation of his employer or prospective

employer certifying that the applicant is honest, trustworthy

and of good repute and recommending that a license be

granted. In the case of an applicant who is himself a dealer,

an officer of a corporation which is a dealer or a member of

a partnership which is a dealer, the foregoing recommendation

shall be made by another dealer, bank or sales finance

company which has personal knowledge concerning the

reputation and fitness of the applicant.

(6) A statement showing whether the applicant has

previously applied for a license and the result of such

application and whether the applicant has ever been the

holder of a salesperson's license which was revoked or

suspended or the subject of disciplinary action by this board

or that of any other jurisdiction.

(7) The application shall be made upon a form prepared

by the board containing such other reasonable information as

the board shall require.

auction or salesperson.--Application for license other than as a

dealer, vehicle auction or salesperson shall be made in writing

to the board accompanied by the required fee. The board may

require, in such application or otherwise, information relating

to the applicant's background and his financial standing, all of

which may be considered by the board in determining the fitness

of said applicant to engage in the business for which he desires

to be licensed.

A05180 - 70 -

(d) Manufacturer's or distributor's license.--Application

for license as a manufacturer or distributor shall be made in

writing to the board, signed by the applicant, setting forth or

attaching the following:

(1) Name of applicant and location of principal place of

business for the license which is the subject of the

application and the location of any other place of business

within this Commonwealth.

(2) Name or style under which business is to be

conducted and, if a corporation, the state of incorporation.

(3) The line-make or line-makes of new vehicles which

are to be manufactured or distributed.

(4) A statement showing whether the applicant has

previously applied for a license and the result of such

application.

(e) Change of ownership.--A dealer or vehicle auction shall

supply the board with information regarding any change in named

owners. The information shall include a statement of the

previous history, record and reputation in the business of the

new owner. Where the same business name and address is to be

retained, any change in owners shall only require the licensee

to inform the board of the change in owners but shall not

require the licensee to submit to the entire license application

process as set forth by this act or corresponding regulations.

Section [23] 322. Refusal of license.

The board may refuse to issue a license if the applicant has

committed any of the acts set forth as grounds for the

suspension or revocation of a license or the board finds that

the applicant continued to engage in an activity in violation of

this act during the suspension or revocation period. The board

A05180 - 71 -

may also refuse to issue a license when it determines:

(1) That the applicant was previously the holder of a

license issued under this act, which license was revoked for

cause or which license was suspended for cause and the terms

of the suspension have not been fulfilled.

(2) That the applicant was previously a limited or

general partner, stockholder, director or officer of a

partnership or corporation whose license issued under the

authority of this act was revoked for cause and never

reissued or was suspended for cause and the terms of

suspension have not been fulfilled.

(3) If the applicant is a partnership or corporation,

that one or more of the limited or general partners,

stockholders, directors or officers of the partnership or

corporation was previously the holder of a license issued

under the authority of this act which was revoked for cause

or was suspended for cause and the terms of the suspension

have not been fulfilled, or that by reason of the facts and

circumstances touching the organization, control and

management of the partnership or corporation business, the

policy of such business will be directed, controlled or

managed by individuals who, by reason of their conviction of

violations of the provisions of this act, would be ineligible

for a license and that by licensing such corporation or

partnership, the purposes of this act would likely be

defeated.

(4) That the applicant is a vehicle dealer, vehicle

auction or salesperson who, having within five years prior to

the application for or issuance of a license or while a

current license is in force, pleaded guilty, entered a plea

A05180 - 72 -

of nolo contendere or has been found guilty in a court of

competent jurisdiction in Federal or in this or any other

state jurisdiction of forgery, embezzlement, obtaining money

under false pretenses, extortion, conspiracy to defraud,

bribery, odometer tampering or any other crime involving

moral turpitude.

Section [24] 323. Change of salesperson's license to indicate

new employer.

Whenever a licensed salesperson desires to change his

employment from one licensed dealer to another, he shall notify

the board in writing using the appropriate form, which is

completed in its entirety and is accurate, no later than ten

days after the date of change, pay the required fee and return

the current license if not previously returned. The board shall

issue a new license upon receipt of a complete and accurate

salesperson's transfer application. In the interim at such time

as the change in affiliation of the salesperson occurs, he shall

maintain a copy of the notification sent to the board as his

temporary license pending receipt of his new current license.

This temporary transfer license shall expire at the end of 45

days from the date on the transfer application. It shall be the

duty of the applicant to notify the board if a new license or

other pertinent communication is not received from the board

within 30 days of the submission of the transfer application.

The new license shall be issued for the remainder of the period

covered by the previous license. The fee for the issuance of

such changed license shall be determined by regulation.

Section [25] 324. Termination of employment or business.

(a) Salesperson's license to be surrendered after

termination of employment.--Within ten days after termination of

A05180 - 73 -

employment, the dealer shall surrender that salesperson's

license to the board. If the license is not in the dealer's

possession, then it will be the responsibility of the

salesperson to return the license to the board.

(b) Dealer's, branch lot or vehicle auction license to be

surrendered after termination of business.--Within ten days

after termination of business activities, the dealer, branch lot

or vehicle auction shall surrender to the board all of its

licenses and its salespersons' licenses issued by the board.

Section [26] 325. Exemption from licensure and registration.

This act shall not be construed to require licensure and

registration in the following cases:

(1) Public officers in the conduct of sales of vehicles

in the performance of their official duties.

(2) Sales finance companies and banks licensed under the

provisions of the act of June 28, 1947 (P.L.1110, No.476),

known as the Motor Vehicle Sales Finance Act, in the conduct

of sales of vehicles which have been repossessed by them.

(3) The sale, exchange or purchase by a person in one

calendar year of fewer than five vehicles, except

manufactured housing or mobile homes, on which sales tax has

been paid at the purchase of the vehicle by that person.

Where such a vehicle is authorized under Article II of the

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

Code of 1971, to be transferred from the person who paid the

sales tax to another without being subject to sales tax, such

as, but not limited to, wife and husband transfers or

disbursements from an estate to a beneficiary, the recipient

of the vehicle shall be permitted to sell such vehicle

without paying sales tax prior to his sale of the vehicle.

A05180 - 74 -

(4) The sale, exchange or purchase of fewer than five

manufactured housing or mobile homes by a person in one

calendar year.

Section [27] 326. Limitations on establishing or relocating

dealers.

(a) Additional or relocation of new vehicle dealers.--

(1) In the event that a manufacturer seeks to enter into

a franchise establishing an additional new vehicle dealer or

relocating an existing new vehicle dealer within or into a

relevant market area where the same line-make is then

represented, the manufacturer shall in writing first notify

the board and each new vehicle dealer in such line-make in

the relevant market area of the intention to establish an

additional dealer or to relocate an existing dealer within or

into that market area. Within 20 days after the end of any

appeal procedure provided by the manufacturer, any such new

vehicle dealer may file with the board a protest to the

establishing or relocating of the new vehicle dealer. When

such a protest is filed, the board shall inform the

manufacturer that a timely protest has been filed, and that

the manufacturer shall not establish the proposed new vehicle

dealer or relocate the new vehicle dealer until the board has

held a hearing, nor thereafter, if the board has determined

that there is [good] JUST cause for not permitting the

addition or relocation of such new vehicle dealer.

(2) The notice required by this subsection shall include

the following information:

(i) The location of the proposed additional or

relocating new vehicle dealer.

(ii) An explanation of the appeal procedure provided

A05180 - 75 -

by the manufacturer or distributor, if any, to the

establishment of the proposed additional new vehicle

dealer or relocation of the new vehicle dealer.

(iii) An explanation of the existing new vehicle

dealer's rights to file a protest with the board to the

establishment of the proposed new vehicle dealer or the

relocation of the new vehicle dealer.

(3) Under this subsection, relocating an existing new

vehicle dealer shall include any instance where an existing

dealer sells or otherwise transfers all or substantially all

of its business to a new owner and the new owner, who has

been approved by the manufacturer or distributor to enter

into a franchise agreement, seeks to relocate the ongoing,

operating dealership franchise from its current licensed

address to a site within the relevant market area of the

existing dealer which is not within five miles of another

licensed new vehicle dealer for the same line-make of vehicle

as set forth in subsection (b)(1).

(4) (i) Where an automobile, motorcycle or truck

manufacturer or distributor seeks to enter into an

agreement or franchise establishing an additional vehicle

warranty service facility or seeks to relocate an

existing vehicle warranty service facility within or into

a radius of five miles surrounding where an existing new

vehicle dealer vehicle warranty service facility of the

same line-make is then represented, except in cases

involving a franchised new medium or heavy-duty truck

dealer, in which case the affected radius shall be the

relevant market area or the area of responsibility as

defined in the dealer's franchise, whichever is greater,

A05180 - 76 -

the automobile, motorcycle or truck manufacturer shall in

writing first notify the board and each affected new

vehicle dealer vehicle warranty service facility of such

line-make of the intention to establish an additional

vehicle warranty service facility or to relocate an

existing vehicle warranty service facility within or into

the affected market areas.

(ii) The notice required by subparagraph (i) shall

include the following information:

(A) The location of the proposed additional or

relocating vehicle warranty service facility.

(B) An explanation of the appeal procedure

provided by the automobile, motorcycle or truck

manufacturer or distributor, if any, to the

establishment of the proposed additional vehicle

warranty service facility or relocation of the

vehicle warranty service facility.

dealer's or vehicle warranty service facility's

rights to file a protest with the board to the

establishment of the proposed vehicle warranty

service facility or the relocation of the vehicle

warranty service facility.

(iii) Within 20 days after the end of any appeal

procedure provided by the automobile, motorcycle or truck

manufacturer, any such new vehicle warranty dealer

vehicle service facility may file with the board a

protest to the establishment or relocation of the vehicle

warranty service facility.

(iv) When such a protest is filed, the board shall

A05180 - 77 -

inform the automobile, motorcycle or truck manufacturer

that a timely protest has been filed and that the

automobile, motorcycle or truck manufacturer shall not

establish the proposed vehicle warranty service facility

or relocate the vehicle warranty service facility until

the board has held a hearing nor thereafter if the board

has determined that there is [good] JUST cause for not

permitting the addition or relocation of such vehicle

warranty service facility.

(v) In determining whether [good] JUST cause exists

to allow for the establishment or relocation of a vehicle

warranty service facility, the board shall consider the

same type of circumstances as established in subsection

(c).

(b) Nonapplicability of section.--This section does not

apply:

(1) To the relocation of an existing dealer within that

dealer's relevant market area, provided that the relocation

not be at a site within five miles of a licensed new vehicle

dealer for the same line-make of vehicles.

(2) If the proposed new vehicle dealer is to be

established at or within two miles of a location at which a

former licensed new vehicle dealer for the same line-make of

new vehicle had ceased operating within the previous two

years. For purposes of this section, a former vehicle dealer

shall have ceased operations on the date on which the

franchise or agreement shall have been finally terminated.

(3) To the relocation of an existing dealer to a site

that is further away from the nearest dealer of the same

line-make.

A05180 - 78 -