The bill amends several sections of 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," to clarify ownership structures within dealership operations. The definition of "new motor vehicle" is revised to ensure it has never 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. The term "sell" is expanded to cover various retail and leasing activities, including accepting deposits, reservations, and negotiating terms.

The bill establishes that any person engaging in purposeful contacts within the state related to motor vehicle business must adhere to its provisions. It emphasizes good faith in business dealings and prohibits arbitrary or coercive practices against dealers. Additionally, it requires manufacturers and distributors to provide written notice regarding franchise terminations, cancellations, or non-renewals, along with justifications based on good cause. It mandates fair compensation for dealers upon termination, including reimbursement for unsold inventory and continued service support for a minimum of five years after a product line is discontinued.

Furthermore, the bill prohibits any motor vehicle manufacturers, common entities, affiliates, or joint ventures licensed after January 1, 2020, from directly selling to the public. Overall, these amendments aim to create a more equitable and transparent regulatory framework for motor vehicle business practices in Rhode Island.