Senate Bill No. 377 amends the Fair Practices of Equipment Manufacturers, Distributors, Wholesalers, and Dealers Act by updating definitions, statutory references, and prohibited actions. Key changes include replacing "catalogue" with "catalog," adjusting consent requirements, and clarifying the definition of "good cause" for terminating dealer agreements. The bill introduces new provisions that govern the relationship between dealers and suppliers, particularly regarding the sale of competing product lines and the conditions under which suppliers can refuse to deliver equipment. It also revises definitions for terms like "single-line dealer" and "threshold amount" to ensure clarity and compliance with fair practices.

Furthermore, the bill establishes specific requirements for terminating dealer agreements, mandating that suppliers provide at least 180 days' written notice before termination, along with reasons for the action and a 60-day period for dealers to address deficiencies. It prohibits suppliers from terminating agreements based on performance standards without a two-year notice period and requires them to respond to requests for the sale or transfer of a dealer's business within 60 days, with automatic approval if they fail to do so. Additionally, the bill outlines provisions for the transfer of ownership interests, ensuring that consent cannot be unreasonably withheld and that the dealer's estate has 180 days to request a transfer in the event of the dealer's death. The provisions do not apply to single-line dealer agreements and will take effect on November 1, 2025.

Statutes affected:
Introduced: 15-245
Committee Substitute: 15-245
Floor (House): 15-245
Floor (Senate): 15-245
Engrossed: 15-245
Enrolled (final version): 15-245