The bill amends several sections of Chapter 31-5.1 of the General Laws, which regulates the relationships and practices among motor vehicle manufacturers, distributors, and dealers. Key updates include the introduction of the term "common entity," which refers to entities controlled by manufacturers or distributors, and a revised definition of "new motor vehicle" to clarify that it must not have been the subject of a completed, successful, or conditional sale outside of dealer-to-dealer or manufacturer-to-dealer transactions.

Additionally, the bill allows certain zero-emission vehicle dealers, licensed prior to January 1, 2020, to buy from and sell, offer to sell, or deal to a consumer a zero-emission vehicle without the requirement of operating a retail facility for servicing these vehicles, provided they meet specific conditions.

The legislation establishes strict prohibitions against unfair practices by manufacturers and distributors, including actions that are arbitrary, in bad faith, or coercive. It mandates that manufacturers cannot terminate or fail to renew a franchise without good cause, which must be communicated to the dealer, and requires that performance criteria be reasonable, taking into account the dealer's inventory levels and vehicle allocation.

Furthermore, the bill ensures that dealers receive written notice regarding franchise terminations and mandates fair compensation for unsold inventory upon termination. The provisions aim to reinforce the role of dealers and promote equitable treatment within the motor vehicle industry.