The bill amends Chapter 31-5.1 of the General Laws, which regulates the relationships between motor vehicle manufacturers, distributors, and dealers. It introduces new definitions, including "common entity," and expands the definition of "new motor vehicle" to include vehicles that have never been the subject of a completed, successful, or conditional sale, except between new motor vehicle dealers or between a manufacturer and a new motor vehicle dealer of the same franchise. The bill clarifies that any person engaged in motor vehicle-related business in the state must adhere to its provisions.

Key protections for dealers are established, prohibiting manufacturers and distributors from engaging in arbitrary or bad faith actions, coercing dealers to order vehicles, or forcing participation in advertising campaigns. Violations of these provisions can lead to penalties. Additionally, certain zero-emission vehicle dealers licensed prior to January 1, 2020, may buy from and sell to consumers without a traditional franchise agreement, provided they meet specific operational criteria.

The bill enhances protections for dealers by placing the burden of proof on manufacturers regarding franchise terminations, cancellations, or non-renewals, requiring written notice at least 180 days in advance, and ensuring fair compensation upon termination for unsold vehicles. It also allows dealers to service and supply parts for discontinued product lines for a minimum of five years. Furthermore, the bill prohibits manufacturers, distributors, factory branches, or common entities licensed after January 1, 2020, from selling directly to the public. Overall, the legislation aims to create a more equitable environment for motor vehicle dealers, ensuring accountability from manufacturers and protecting dealers from unfair practices.