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 in 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 reasons for their 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 protections for dealers by ensuring 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 these rates. The legislation establishes clear timelines for claim approvals, mandating that claims not addressed within thirty days are automatically deemed approved.

The bill introduces obligations during recalls, including compensation for dealers holding used vehicles under Stop-Sale or Do-Not-Drive orders, and clarifies liability for damages during transportation. Overall, the bill aims to create a more equitable and transparent environment for motor vehicle dealers, ensuring compliance with updated recall and warranty obligations.