The bill amends Section 49-1613 of the Idaho Code to enhance protections for licensed dealers in the motor vehicle industry against unfair practices by manufacturers and distributors. Key provisions include a prohibition on manufacturers or distributors competing with their licensed dealers in the sale, lease, or warranty service of new motor vehicles to retail consumers. It also exempts manufacturers or distributors with a dealership operating in Idaho as of January 1, 2026, from certain competitive restrictions. Additionally, the bill clarifies that manufacturers cannot coerce dealers into selling specific service contracts or transferring retail installment sales contracts to designated finance companies.

The legislation aims to establish fair practices by prohibiting unfair discrimination in warranty reimbursements and requiring timely responses from manufacturers to dealer requests. It declares actions that lessen competition or create monopolies as unlawful and restricts manufacturers from using written agreements to circumvent these provisions. The bill mandates a 60-day notice period for any proposed modifications to dealer agreements, allowing dealers to contest changes, with the burden of proof resting on the manufacturer. Furthermore, it explicitly prohibits coercive practices related to the installation of charging stations while permitting reasonable requirements for infrastructure and training. The act is set to take effect on July 1, 2026.

Statutes affected:
Bill Text: 49-1613