The bill seeks to amend Montana's motor vehicle laws by prohibiting manufacturers and distributors from mandating that new motor vehicle dealers purchase or sell electric vehicles or plug-in hybrid electric vehicles, labeling such practices as contrary to public policy. Any contractual agreements that violate this prohibition will be rendered void. The bill also clarifies definitions for "electric vehicle" and "plug-in hybrid electric vehicle" to align with existing legal standards. Additionally, it amends Section 61-4-208 of the Montana Code Annotated to explicitly prohibit coercive practices by manufacturers and distributors, thereby safeguarding the rights of franchisees and ensuring they are not compelled into unfair agreements.

Moreover, the legislation introduces regulations concerning the ownership and operation of motor vehicle dealerships by manufacturers and distributors. It stipulates that these entities cannot operate a dealership without a legitimate business relationship with an independent investor who has made a financial commitment and anticipates full ownership under reasonable conditions. The bill also allows for temporary dealership operations during ownership transitions, provided that manufacturers do not unreasonably withhold approval for the sale of the dealership. Lastly, the bill includes a codification instruction to integrate these new provisions into Title 61, chapter 4 of the current law, ensuring their formal recognition within the existing legal framework.

Statutes affected:
LC Text: 61-4-208