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 to honor this succession, they must provide written notice within 60 days, detailing the grounds for their refusal.

Furthermore, the bill introduces section 31-5.1-4.2, which requires manufacturers, distributors, or factory branches to notify existing dealers in writing by certified mail about the establishment or relocation of dealerships and allows for protests against such actions.

The legislation also enhances the obligations of manufacturers, distributors, and factory branches regarding compensation for dealers, particularly concerning parts and labor related to recalls. It ensures that dealers are reimbursed at retail rates for warranty repairs and prohibits manufacturers from recovering costs through price increases or surcharges related to recall reimbursements. The bill outlines specific claims processing requirements, including timelines for approval and payment, and protects dealers from chargebacks for clerical errors.

Additionally, it mandates that all agreements between manufacturers, distributors, and dealers comply with these updated protocols, promoting transparency and fairness in the motor vehicle industry. The act will take effect upon passage.