The bill amends Chapter 31-5.1 of the General Laws, which regulates business practices among motor vehicle manufacturers, distributors, and dealers. A significant addition is the new section 31-5.1-4.1, which allows a designated family member of a deceased or incapacitated dealership owner to succeed to ownership, provided they notify the manufacturer, distributor, or factory branch within 120 days and agree to the franchise's terms. If a manufacturer, distributor, or factory branch refuses this succession, they must provide written notice within 60 days, detailing the grounds for refusal.

The bill also introduces section 31-5.1-4.2, which requires manufacturers, distributors, or factory branches to notify existing dealers in writing by certified mail before establishing or relocating a dealership. This section includes criteria for determining "good cause" for such actions.

Additionally, the bill enhances the rights of dealership owners by mandating fair compensation for parts and labor related to recall repairs at the dealer's retail rate. It prohibits manufacturers, distributors, or factory branches from imposing burdensome methods for establishing retail rates. The bill establishes clear timelines for claim approvals, ensuring claims not addressed within thirty days are automatically approved.

New obligations during recalls include compensation for dealers holding used vehicles under Stop-Sale or Do-Not-Drive orders, and it clarifies liability for damages during vehicle transportation. The bill also includes provisions for promotional activities and establishes that manufacturers, distributors, or factory branches must compensate dealers for any incentive or reimbursement program sponsored by them. Overall, the legislation aims to create a more equitable and transparent environment for motor vehicle dealers, ensuring compliance with recall and warranty obligations.