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, allowing a designated family member of a deceased or incapacitated dealership owner to succeed to the dealership's 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 of the grounds for refusal within 60 days.

Additionally, section 31-5.1-4.2 introduces requirements for notifying existing dealers before establishing or relocating a dealership, enabling them to protest such decisions.

The bill also enhances compensation obligations for manufacturers, distributors, and factory branches, ensuring dealers are paid for parts and labor used in recall repairs at retail rates. It prohibits manufacturers from imposing burdensome methods for establishing retail rates and prevents cost recovery through price increases related to warranty reimbursements. Clear timelines for claim approvals and payments are established, with claims not addressed within thirty days deemed approved.

Furthermore, the bill mandates compensation for dealers holding used vehicles under safety or emissions recalls when parts are unavailable and clarifies liability for damages during transportation. Overall, the legislation aims to create a fairer regulatory environment for motor vehicle dealers while upholding consumer safety standards.