SPONSOR: |
Rep. Lynn & Sen. Lockman & Sen. Townsend |
Reps. Baumbach, Michael Smith; Sens. Gay, S. McBride, Sokola |
HOUSE OF REPRESENTATIVES
151st GENERAL ASSEMBLY
HOUSE SUBSTITUTE NO. 1
FOR
HOUSE BILL NO. 239
AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO MOTOR VEHICLE DEALERSHIPS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 4902, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:
() “Non-franchised zero-emission vehicle manufacturer” means a manufacturer that meets all of the following:
a. Only manufactures zero-emission vehicles, including plug-in electric vehicles.
b. Only sells or leases directly to consumers new or used zero-emission vehicles that it manufactures or vehicles that have been traded in in conjunction with a new zero-emission vehicle sale.
c. Does not currently sell or lease, and has never sold or leased, motor vehicles in this State through a franchisee.
d. Has not sold or transferred a combined or indirect ownership interest of greater than 30 % in such non-franchised zero-emission vehicle manufacturer to a franchisor, subsidiary, or other entity controlled by a franchisor or has not acquired a combined direct or indirect ownership interest of greater than 30 percent in a franchisor, subsidiary, or other entity controlled by a franchisor.
e. Is a dealer registered under Chapter 63 of Title 21.
Section 2. Amend § 4913, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 4913. Unlawful acts by manufacturers.
(b) It shall be a violation of this chapter for any manufacturer:
(14) To directly or indirectly own an interest in a dealer or dealership; or operate or control a dealer or dealership; or act in the capacity of a dealer except as provided by this section. under one of the following:
a. A manufacturer or distributor may own an interest in a franchised dealer, or otherwise control a dealership for a period not to exceed 24 months from the date the manufacturer or distributor acquires the dealership if the dealership is for sale by the manufacturer or distributor at a reasonable price and on reasonable terms and conditions.
b. A manufacturer or distributor may temporarily own an interest in a dealership if the manufacturer’s or distributor’s participation in the dealership is a bona fide relationship with a franchised dealer who:
1. Is required to make a significant investment in the dealership, subject to loss;
2. Has an ownership interest in the dealership; and
3. Operates the dealership under a plan to acquire full ownership of the dealership within a reasonable time and under reasonable terms and conditions.
c. A non-franchised zero-emission vehicle manufacturer may own, operate, or control dealerships.
SYNOPSIS
This Act creates an exception to the restriction on manufacturers operating vehicle dealerships in Delaware to allow a manufacturer of zero-emission vehicles that does not operate any franchises to own, control or operate dealerships in Delaware.