The bill amends Chapter 31-5.1 of the General Laws, which regulates the relationships between motor vehicle manufacturers, distributors, factory branches, and dealers. It introduces key definitions, such as "common entity," and revises the definition of "new motor vehicle" to clarify that it must not have been the subject of a completed, successful, or conditional sale outside of transactions between new motor vehicle dealers or between a manufacturer and a new motor vehicle dealer of the same franchise.

Additionally, the bill allows motor vehicle dealers exclusively manufacturing zero-emission vehicles to buy from and sell, offer to sell, or deal to a consumer a zero-emission vehicle without the requirement of a retail facility, provided they meet certain conditions. It establishes prohibitions against manufacturers, distributors, and factory branches from engaging in arbitrary or bad faith actions, ensuring that dealers are not forced into unfair agreements or advertising campaigns without their consent.

The bill enhances protections for dealers by requiring manufacturers and distributors to provide written notification regarding franchise terminations, cancellations, or nonrenewals, along with a demonstration of good cause for such actions. It mandates fair compensation for dealers upon termination, including reimbursement for unsold inventory and continued service support for five years after a product line is discontinued.

Furthermore, the legislation prohibits manufacturers, distributors, or factory branches licensed after January 1, 2020, from selling directly to the public, except under specific circumstances. It outlines penalties for deceptive practices by dealers and reinforces the role of dealers in the motor vehicle sales process. Overall, the bill aims to create a more equitable and fair business environment for motor vehicle dealers.