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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
SENATE
SENATE
BILL
NO.
1424
BY
STATE
AFFAIRS
COMMITTEE
AN
ACT
1
RELATING
TO
MOTOR
VEHICLES;
AMENDING
SECTION
49
-
1613,
IDAHO
CODE,
TO
RE
-
2
VISE
PROVISIONS
REGARDING
UNLAWFUL
ACTS
BY
A
LICENSEE;
AND
DECLARING
AN
3
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
4
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
5
SECTION
1.
That
Section
49
-
1613,
Idaho
Code,
be,
and
the
same
is
hereby
6
amended
to
read
as
follows:
7
49
-
1613.
UNLAWFUL
ACTS
BY
LICENSEE.
(1)
It
shall
be
unlawful
for
the
8
holder
of
any
license
issued
under
the
provisions
of
this
chapter
to:
9
(a)
Intentionally
publish
or
circulate
any
advertising
that
is
mis
-
10
leading
or
inaccurate
in
any
material
particular
or
that
misrepresents
1
1
any
of
the
products
sold
or
furnished
by
a
licensed
dealer;
12
(b)
Violate
any
of
the
provisions
of
this
chapter
or
any
of
the
applica
-
13
ble
rules;
14
(c)
Knowingly
purchase,
sell
or
otherwise
acquire
or
dispose
of
a
15
stolen
vehicle;
16
(d)
Violate
any
law
respecting
commerce
in
vehicles
or
any
lawful
rule
17
respecting
commerce
in
vehicles
promulgated
by
any
licensing
or
regu
-
18
lating
authority
now
existing
or
hereafter
created
by
the
laws
of
the
19
state;
20
(e)
Engage
in
the
business
for
which
the
dealer
is
licensed
without
at
21
all
times
maintaining
a
principal
place
of
business;
22
(f)
Engage
in
a
type
of
business
respecting
the
selling
or
exchanging
of
23
vehicles
for
which
he
is
not
licensed;
24
(g)
Knowingly
purchase
a
vehicle
that
has
an
altered
or
removed
vehicle
25
identification
number
plate
or
alter
or
remove
a
vehicle
identification
26
number
plate;
27
(h)
Violate
any
provision
of
this
title
or
any
rules
promulgated;
28
(i)
Violate
any
provision
of
the
federal
motor
vehicle
safety
stan
-
29
dards,
federal
odometer
laws
or
regulations;
30
(j)
Display
for
sale,
exchange,
or
sell
any
vehicle
for
which
the
vehi
-
31
cle
dealer
does
not
hold
title
or
consignment
agreement
or
other
docu
-
32
mentary
evidence
of
his
right
to
the
possession
of
every
vehicle
in
his
33
possession;
or
34
(k)
Issue
more
than
one
(1)
temporary
permit
per
vehicle
sale
pursuant
35
to
the
provisions
set
forth
in
section
49
-
504(6),
Idaho
Code.
36
(2)
It
shall
be
unlawful
for
any
manufacturer
or
distributor
licensed
37
under
this
chapter
to
require,
attempt
to
require,
coerce,
or
attempt
to
co
-
38
erce,
any
new
vehicle
dealer
in
this
state
to:
39
(a)
Order
or
accept
delivery
of
any
new
vehicle,
part
or
accessory,
40
equipment
or
any
other
commodity
not
required
by
law
that
shall
not
have
41
been
voluntarily
ordered
by
the
new
vehicle
dealer.
This
paragraph
is
42
2
not
intended
to
modify
or
supersede
any
terms
or
provisions
of
a
fran
-
1
chise
requiring
dealers
to
market
a
representative
line
of
vehicles
2
that
the
manufacturer
or
distributor
is
publicly
advertising.
3
(b)
Order
or
accept
delivery
of
any
new
vehicle
with
special
features,
4
accessories
or
equipment
not
included
in
the
list
price
of
such
vehicles
5
as
publicly
advertised
by
the
manufacturer
or
distributor.
6
(c)
Participate
monetarily
in
an
advertising
campaign
or
contest,
or
7
to
purchase
any
promotional
materials,
training
materials,
showroom
or
8
other
display
decorations
or
materials
at
the
expense
of
the
dealer.
9
(d)
Enter
into
any
agreement
with
the
manufacturer
or
distributor
or
to
10
do
any
other
act
prejudicial
to
the
dealer
by
threatening
to
terminate
1
1
or
cancel
a
franchise
or
any
contractual
agreement
existing
between
12
the
dealer
and
the
manufacturer
or
distributor.
This
paragraph
is
not
13
intended
to
preclude
the
manufacturer
or
distributor
from
insisting
14
on
compliance
with
reasonable
terms
or
provisions
of
the
franchise
or
15
other
contractual
agreement,
and
notice
in
good
faith
to
any
dealer
of
16
the
dealer's
violation
of
those
terms
or
provisions
shall
not
consti
-
17
tute
a
violation
of
the
provisions
of
this
chapter.
18
(e)
Change
the
capital
structure
of
the
dealer
or
the
means
by
or
19
through
which
the
dealer
finances
the
operation
of
the
dealership,
20
provided
that
the
dealer
at
all
times
meets
any
reasonable
capital
stan
-
21
dards
determined
by
the
manufacturer
or
distributor
in
accordance
with
22
uniformly
applied
criteria.
No
change
in
the
capital
structure
shall
23
cause
a
change
in
the
principal
management
or
have
the
effect
of
a
sale
24
of
the
franchise
without
the
consent
of
the
manufacturer
or
distribu
-
25
tor.
Consent
shall
not
be
unreasonably
withheld.
26
(f)
Refrain
from
participation
in
the
management
of,
investment
in,
or
27
the
acquisition
of
any
other
line
of
new
vehicle
or
related
products.
28
This
paragraph
does
not
apply
unless
the
dealer
maintains
a
reasonable
29
line
of
credit
for
each
make
or
line
of
new
vehicle,
and
the
dealer
re
-
30
mains
in
compliance
with
any
reasonable
facilities
requirements
of
the
31
manufacturer
or
distributor,
and
no
change
is
made
in
the
principal
man
-
32
agement
of
the
dealership.
33
(g)
Prospectively
assent
to
a
release,
assignment,
novation,
waiver
or
34
estoppel
that
would
relieve
any
person
from
liability
to
be
imposed
by
35
this
chapter
or
to
require
any
controversy
between
a
dealer
and
a
man
-
36
ufacturer,
distributor,
or
representatives,
to
be
referred
to
any
per
-
37
son
other
than
the
duly
constituted
courts
of
the
state
or
the
United
38
States,
or
to
the
director,
if
that
referral
would
be
binding
upon
the
39
dealer.
40
(h)
Either
establish
or
maintain
exclusive
facilities,
personnel,
or
41
display
space.
42
(i)
Expand
facilities
without
a
written
guarantee
of
a
sufficient
sup
-
43
ply
of
new
vehicles
so
as
to
justify
an
expansion,
in
light
of
the
market
44
and
economic
conditions.
45
(j)
Make
significant
modifications
to
an
existing
dealership
or
to
46
construct
a
new
vehicle
dealership
facility
without
providing
a
writ
-
47
ten
guarantee
of
a
sufficient
supply
of
new
vehicles
so
as
to
justify
48
modification
or
construction,
in
light
of
the
market
and
economic
con
-
49
ditions.
50
3
(3)
It
shall
be
unlawful
for
any
manufacturer
or
distributor
licensed
1
under
this
chapter
to:
2
(a)
Delay,
refuse,
or
fail
to
deliver
new
vehicles
or
new
vehicle
parts
3
or
accessories
in
a
reasonable
time,
and
in
reasonable
quantity,
rela
-
4
tive
to
the
dealer's
facilities
and
sales
potential
in
the
dealer's
rel
-
5
evant
market
area,
after
acceptance
of
an
order
from
a
dealer
having
a
6
franchise
for
the
retail
sale
of
any
new
vehicle
sold
or
distributed
by
7
the
manufacturer
or
distributor,
any
new
vehicle,
parts
or
accessories
8
to
new
vehicles
as
are
covered
by
the
franchise,
if
the
vehicle,
parts,
9
or
accessories
are
publicly
advertised
as
being
available
for
delivery
10
or
actually
being
delivered.
These
provisions
are
not
violated,
how
-
1
1
ever,
if
failure
is
caused
by
acts
or
causes
beyond
the
control
of
the
12
manufacturer
or
distributor.
13
(b)
Refuse
to
disclose
to
any
dealer
handling
the
same
line,
the
manner
14
and
mode
of
distribution
of
that
line
within
this
state.
15
(c)
Obtain
money,
goods,
service,
or
any
other
benefit
from
any
other
16
person
with
whom
the
dealer
does
business,
on
account
of,
or
in
relation
17
to,
the
transaction
between
the
dealer
and
other
person,
other
than
for
18
compensation
for
services
rendered,
unless
the
benefit
is
promptly
ac
-
19
counted
for
and
transmitted
to
the
dealer.
20
(d)
Increase
prices
of
new
vehicles
that
the
dealer
had
ordered
for
21
consumers
prior
to
the
dealer's
receipt
of
the
written
official
price
22
increase
notification.
A
sales
contract
signed
by
a
consumer
shall
23
constitute
evidence
of
each
such
order,
provided
that
the
vehicle
is
in
24
fact
delivered
to
that
customer.
In
the
event
of
manufacturer
or
dis
-
25
tributor
price
reductions
or
cash
rebates
paid
to
the
dealer,
the
amount
26
of
any
reduction
or
rebate
received
by
a
dealer
shall
be
passed
on
to
the
27
private
retail
consumer
by
the
dealer.
Price
reductions
shall
apply
to
28
all
vehicles
in
the
dealer's
inventory
that
were
subject
to
the
price
29
reduction.
Price
differences
applicable
to
new
model
or
series
shall
30
not
be
considered
a
price
increase
or
price
decrease.
Price
changes
31
caused
by
the
addition
to
a
vehicle
of
required
or
optional
equipment,
32
or
revaluation
of
the
United
States
dollar,
in
the
case
of
foreign
-
make
33
vehicles
or
components,
or
an
increase
in
transportation
charges
due
to
34
increased
rates
imposed
by
a
carrier,
shall
not
be
subject
to
the
provi
-
35
sions
of
this
subsection.
36
(e)
Release
to
any
outside
party,
except
under
subpoena
or
as
other
-
37
wise
required
by
law
or
in
an
administrative,
judicial
or
arbitration
38
proceeding
involving
the
manufacturer
or
distributor
or
dealer,
any
39
business,
financial,
or
personal
information
which
may
be
provided
from
40
time
to
time
by
the
dealer
to
the
manufacturer
or
distributor
without
41
the
express
written
consent
of
the
dealer.
42
(f)
Deny
any
dealer
the
right
of
free
association
with
any
other
dealer
43
for
any
lawful
purpose.
44
(g)
Compete
with
their
franchised
licensed
dealers
in
this
state
in
the
45
sale,
lease,
or
warranty
service
of
new
motor
vehicles
to
retail
con
-
46
sumers.
However,
nothing
in
this
section
shall
limit
or
apply
to
a
man
-
47
ufacturer's
or
a
distributor's
fleet
sales
or
leases
with
a
fleet
cus
-
48
tomer
that
has
a
designation
as
such
by
the
manufacturer
or
distribu
-
49
tor
as
long
as
such
sales
or
leases
are
conducted
with
the
involvement
50
4
of
a
dealer
of
the
same
line
make.
Nothing
in
this
section
shall
limit
1
or
prohibit
a
manufacturer
or
distributor
from
authorizing
or
assist
-
2
ing
a
fleet
customer
that
has
a
designation
as
such
by
the
manufacturer
3
or
distributor
to
perform
warranty
service
on
vehicles
owned
or
oper
-
4
ated
by
such
fleet
customer.
It
is
not
a
violation
of
this
paragraph
for
5
a
manufacturer
or
distributor,
or
an
affiliate
of
a
manufacturer
or
dis
-
6
tributor,
to
directly
provide
an
update
to
or
repair
of
motor
vehicle
7
software
if
such
update
or
repair
is
provided
over
-
the
-
air
at
no
cost
8
or
when
creating
a
new
line
of
motor
vehicles
and
using
franchised
deal
-
9
ers
to
sell
and
service
those
vehicles.
A
manufacturer
or
distributor
10
may
operate
a
dealership
for
a
reasonable
period
not
to
exceed
one
(1)
1
1
year
without
violating
this
paragraph
if
such
dealership
is
for
sale
to
12
any
qualified
independent
person
at
a
fair
and
reasonable
price,
or
in
a
13
relationship
in
which
an
independent
person
has
made
a
significant
in
-
14
vestment
subject
to
loss
in
the
dealership
and
can
reasonably
expect
to
15
acquire
full
ownership
of
that
dealership
on
reasonable
terms
and
con
-
16
ditions.
Upon
a
showing
of
good
cause
by
the
manufacturer
or
distribu
-
17
tor
to
the
department,
the
period
of
temporary
ownership
may
be
extended
18
up
to
one
(1)
additional
year,
resulting
in
a
maximum
temporary
owner
-
19
ship
period
of
two
(2)
years.
A
manufacturer
or
distributor
with
a
man
-
20
ufacturer
-
owned
or
distributor
-
owned
dealership
operating
in
Idaho
as
21
of
January
1,
2026,
shall
be
exempt
from
the
provisions
of
this
para
-
22
graph.
23
(h)
Unfairly
discriminate
among
its
dealers
with
respect
to
warranty
24
reimbursement.
25
(i)
Unreasonably
withhold
consent
to
the
sale,
transfer,
or
exchange
of
26
the
franchise
to
a
qualified
buyer
capable
of
being
licensed
as
a
dealer
27
in
this
state
or
to
condition
the
sale,
transfer,
or
exchange
of
a
fran
-
28
chise
agreement
upon
site
control
or
an
agreement
to
renovate
or
make
29
improvements
to
a
facility,
unless
required
by
the
technology
of
a
motor
30
vehicle
being
sold
at
the
facility.
Provided
however,
that
a
voluntary
31
acceptance
of
such
conditions
by
the
dealer
in
writing
including
but
not
32
limited
to
a
written
agreement
for
which
the
dealer
has
accepted
sepa
-
33
rate
and
valuable
consideration,
shall
not
constitute
a
violation.
34
(j)
Fail
to
respond
in
writing
to
a
request
for
consent
as
specified
in
35
paragraph
(i)
of
this
subsection
within
sixty
(60)
days
of
receipt
of
a
36
written
request
on
the
forms,
if
any,
generally
utilized
by
the
manufac
-
37
turer
or
distributor
for
those
purposes
and
containing
the
required
in
-
38
formation.
Failure
to
respond
shall
be
deemed
to
be
consent
to
the
re
-
39
quest.
40
(k)
Prevent
or
attempt
to
prevent,
by
contract
or
otherwise,
any
dealer
41
from
changing
the
executive
management
control
of
the
dealership
unless
42
the
manufacturer
or
distributor,
having
the
burden
of
proof,
can
show
43
that
the
change
of
executive
management
will
result
in
executive
man
-
44
agement
or
control
by
a
person
or
persons
who
are
not
of
good
moral
char
-
45
acter
or
who
do
not
meet
reasonable,
preexisting
and,
with
considera
-
46
tion
given
to
the
volume
of
sales
and
service
of
the
dealership,
uni
-
47
formly
applied
minimum
business
experience
standards.
Where
the
manu
-
48
facturer
or
distributor
rejects
a
proposed
change
in
executive
manage
-
49
ment
control,
the
manufacturer
or
distributor
shall
give
written
notice
50
5
of
his
reasons
to
the
dealer
within
sixty
(60)
days
of
notice
to
the
man
-
1
ufacturer
or
distributor
by
the
dealer
of
the
proposed
change;
other
-
2
wise,
the
change
in
the
executive
management
of
the
dealership
shall
be
3
presumptively
considered
approved.
4
(l)
Terminate,
cancel
or
fail
to
renew
any
franchise
solely
because
of
5
the
death
or
incapacity
of
an
owner
who
is
not
listed
in
the
franchise
6
as
one
on
whose
expertise
and
abilities
the
manufacturer
or
distributor
7
relied
in
the
granting
of
the
franchise.
8
(m)
Prevent
or
attempt
to
prevent
the
dealer,
by
written
instrument
9
or
otherwise,
from
either
receiving
the
fair
market
value
of
the
deal
-
10
ership
in
a
sale
transaction
or
from
transferring
the
dealership
to
a
1
1
spouse
or
legal
heir,
as
specified
in
this
chapter.
12
(n)
Engage
in
any
predatory
practice
or
discrimination
against
any
13
dealer.
14
(o)
Resort
to
or
to
use
any
false
or
misleading
advertisement
in
the
15
conducting
of
his
business
as
a
manufacturer
or
distributor
in
this
16
state.
17
(p)
Make
any
false
or
misleading
statement,
either
directly
or
through
18
any
agent
or
employee,
in
order
to
induce
any
dealer
to
enter
into
any
19
agreement
or
franchise
or
to
take
any
action
that
is
prejudicial
to
that
20
dealer
or
his
business.
21
(q)
Require
or
coerce
dealers
to
participate
in
local
or
national
ad
-
22
vertising
campaigns
or
contests
or
to
require
or
coerce
dealers
to
pur
-
23
chase
promotional
or
display
materials.
24
(r)
Charge
back,
deny
motor
vehicle
allocation,
withhold
payments,
or
25
take
other
actions
against
a
dealer,
or
to
condition
a
franchise
agree
-
26
ment,
or
renewal
of
a
franchise
agreement,
or
to
condition
sales,
ser
-
27
vice,
parts,
or
finance
incentives
upon
site
control
or
an
agreement
to
28
renovate
or
make
improvements
to
a
facility
unless
required
by
the
tech
-
29
nology
of
a
motor
vehicle
being
sold
at
the
facility.
Provided
however,
30
that
a
voluntary
acceptance
of
such
conditions
by
the
dealer
in
writing
31
including
but
not
limited
to
a
written
agreement
for
which
the
dealer
32
has
accepted
separate
and
valuable
consideration,
shall
not
constitute
33
a
violation.
34
(s)
Charge
back,
deny
motor
vehicle
allocation,
withhold
payments,
or
35
take
other
actions
against
a
motor
vehicle
dealer
if
a
motor
vehicle
36
sold
by
the
motor
vehicle
dealer
is
exported
from
Idaho
or
the
dealer's
37
assigned
area
of
responsibility
unless
the
manufacturer,
distributor,
38
or
manufacturer
representative
proves
that
the
motor
vehicle
dealer
39
knew
or
reasonably
should
have
known
a
motor
vehicle
was
intended
to
40
be
exported,
which
shall
operate
as
a
rebuttable
presumption
that
the
41
motor
vehicle
dealer
did
not
have
such
knowledge.
This
paragraph
does
42
not
apply
if
exporting
of
motor
vehicles
outside
of
the
state
of
Idaho
is
43
provided
for
by
the
manufacturer
or
distributor.
44
(t)
Withhold
or
threaten
to
withhold
consent
or
approval
of
the
sale,
45
transfer,
exchange,
or
issuance
of
a
dealer
sales
and
service
agreement
46
to
an
otherwise
qualified
buyer
capable
of
being
licensed
as
a
dealer
47
in
this
state
or
to
condition
approval
of
such
buyer
upon
the
selling
48
dealer
executing
a
release
of
all
claims
or
similar
instrument
releas
-
49
ing
or
waiving
any
and
all
claims
the
selling
dealer
has
or
may
have
50
6
arising
from
the
franchise
relationship
with
the
manufacturer
unless
1
separate
material
consideration
is
paid
contemporaneously
by
the
manu
-
2
facturer
to
the
dealer
for
such
release.
Nothing
in
this
section
shall
3
preclude
the
application
of
a
manufacturer's
reasonable
and
uniform
4
standards
and
policies.
5
(4)
It
is
unlawful
for
any
manufacturer
or
distributor
or
any
offi
-
6
cer,
agent
or
representative
to
coerce,
or
attempt
to
coerce,
any
dealer
7
in
this
state
to
offer
to
sell
or
sell
any
extended
service
contract
or
ex
-
8
tended
maintenance
plan
that
is
offered,
sold,
backed
by
or
sponsored
by
9
the
manufacturer
or
distributor
or
to
sell,
assign
or
transfer
any
retail
10
installment
sales
contract,
obtained
by
the
dealer
in
connection
with
the
1
1
sale
by
him
in
this
state
of
new
vehicles,
manufactured
or
sold
by
the
man
-
12
ufacturer
or
distributor,
to
a
specified
finance
company
or
class
of
such
13
companies,
or
to
any
other
specified
person,
by
any
of
the
acts
or
means
set
14
forth,
namely
by:
15
(a)
Any
statement,
suggestion,
promise
or
threat
that
the
manufac
-
16
turer
or
distributor
will,
in
any
manner,
benefit
or
injure
the
dealer,
17
whether
the
statement,
suggestion,
threat
or
promise
is
express
or
im
-
18
plied
or
made
directly
or
indirectly;
19
(b)
Any
act
that
will
benefit
or
injure
the
dealer;
20
(c)
Any
contract,
or
any
express
or
implied
offer
of
contract,
made
21
directly
or
indirectly
to
a
dealer
for
handling
new
vehicles,
on
the
22
condition
that
the
dealer
shall
offer
to
sell
or
sell
any
extended
23
service
contract
or
extended
maintenance
plan
that
is
offered,
sold,
24
backed
by,
or
sponsored
by
the
manufacturer
or
distributor
or
sell,
as
-
25
sign
or
transfer
his
retail
installment
sales
contract
in
this
state
to
26
a
specified
finance
company
or
class
of
such
companies,
or
to
any
other
27
specified
person;
or
28
(d)
Any
express
or
implied
statement
or
representation
made
directly
or
29
indirectly
that
the
dealer
is
under
any
obligation
whatsoever
to
offer
30
to
sell
or
sell
any
extended
service
contract
or
extended
maintenance
31
plan
that
is
offered,
sold,
backed
by,
or
sponsored
by
the
manufacturer
32
or
distributor
or
to
sell,
assign
or
transfer
any
of
his
retail
sales
33
contracts,
in
this
state,
on
new
vehicles
manufactured
or
sold
by
that
34
manufacturer
or
distributor
to
a
finance
company
or
class
of
companies,
35
or
other
specified
person,
because
of
any
relationship
or
affiliation
36
between
the
manufacturer
or
distributor
and
a
finance
company
or
compa
-
37
nies,
or
a
specified
person
or
persons.
38
(e)
Nothing
contained
in
this
subsection
shall
prohibit
a
manufacturer
39
or
distributor
from
offering
or
providing
incentive
benefits
or
bonus
40
programs
to
a
retail
motor
vehicle
dealer
or
prospective
retail
motor
41
vehicle
dealer
in
this
state
who
makes
the
voluntary
decision
to
offer
42
to
sell
or
sell
any
extended
service
contract
or
extended
maintenance
43
plan
offered,
sold,
backed
by
or
sponsored
by
the
manufacturer
or
dis
-
44
tributor
to
sell,
assign
or
transfer
any
retail
installment
sale
or
45
lease
by
him
in
this
state
of
motor
vehicles
manufactured
or
sold
by
the
46
manufacturer
or
distributor
to
a
specified
finance
company
or
leasing
47
company
controlled
by
or
affiliated
with
the
manufacturer
or
distribu
-
48
tor.
49
7
Any
statement,
threats,
promises,
acts,
contracts
or
offers
of
con
-
1
tracts,
when
the
effect
may
be
to
lessen
or
eliminate
competition
or
tend
to
2
create
a
monopoly,
are
declared
unfair
trade
practices
and
unfair
methods
of
3
competition,
against
the
policy
of
this
state,
and
are
unlawful.
4
(5)
It
is
unlawful
for
any
manufacturer
or
distributor
or
agent
or
em
-
5
ployee
of
a
manufacturer
or
distributor
to
use
a
written
instrument,
agree
-
6
ment,
or
waiver
to
attempt
to
nullify
any
of
the
provisions
of
this
section,
7
and
such
agreement,
written
instrument
or
waiver
shall
be
null
and
void.
8
(6)
It
shall
be
unlawful,
directly
or
indirectly,
to
impose
unrea
-
9
sonable
restrictions
on
the
dealer
relative
to
the
sale,
transfer,
right
10
to
renew,
termination
discipline,
noncompetition
covenants,
site
control
1
1
(whether
by
sublease,
collateral
pledge
of
lease,
or
otherwise),
right
of
12
first
refusal
to
purchase,
option
to
purchase,
compliance
with
subjective
13
standards
and
assertion
of
legal
or
equitable
rights.
14
(7)
The
provisions
of
this
chapter
shall
apply
to
all
written
franchise
15
agreements
between
a
manufacturer
or
distributor
and
a
dealer,
including
16
the
franchise
offering,
the
franchise
agreement,
sales
of
goods,
services
17
or
advertising,
leases
or
mortgages
of
real
or
personal
property,
promises
18
to
pay,
security
interests,
pledges,
insurance
contract,
advertising
con
-
19
tract,
construction
or
installation
contract,
servicing
contracts
and
all
20
other
agreements
where
the
manufacturer
or
distributor
has
any
direct
or
21
indirect
interest.
22
(8)(a)
It
shall
be
unlawful
for
any
manufacturer
or
distributor,
23
whether
by
agreement,
program,
incentive
provision,
or
provision
for
24
loss
of
incentive
payments
or
other
benefits,
to
establish
or
implement
25
a
franchise
agreement
for
the
sales
and
leasing
of
new
motor
vehicles
26
under
which
the
manufacturer
or
distributor
reserves
the
right
to:
27
(i)
Maintain
a
website
or
other
electronic
or
digital
means
of
28
communication
for
the
manufacturer
or
distributor
to
negotiate
29
binding
terms
of
sale
or
leasing
of
new
motor
vehicles
directly
30
with
the
retail
buyer
or
lessee
without
the
involvement
of
a
dealer
31
on
prices
or
other
substantive
terms
of
sale
or
leasing
of
new
ve
-
32
hicles;
33
(ii)
Retain
ownership
of
new
motor
vehicles
until
they
are
sold
or
34
leased
to
the
retail
buyer
or
lessee;
35
(iii)
Except
for
the
sale
or
lease
of
a
vehicle
to
a
bona
fide
em
-
36
ployee
or
relative
of
such
manufacturer
or
distributor
or
in
con
-
37
nection
with
a
replacement
or
buyback,
or
to
a
bona
fide
employee
38
or
relative
of
a
dealer
under
an
employee
pricing
or
similar
pro
-
39
gram,
consign
new
motor
vehicles
to
dealers
for
dealer
inventory
40
or
for
sale
or
lease
to
a
retail
buyer
or
lessee;
41
(iv)
Negotiate
binding
terms
of
sale
directly
with
retail
buy
-
42
ers
or
lessees
of
new
motor
vehicles
without
the
involvement
of
a
43
dealer,
provided
that
displaying
on
a
website
or
other
electronic
44
or
digital
means
of
communication
conditional
prices,
available
45
financing
sources,
or
conditional
trade
-
in
values
that
are
not
46
binding
on
a
dealer
shall
not
be
considered
negotiating;
47
(v)
Enforce
or
seek
to
enforce
a
right
in
any
franchise
agreement
48
for
the
manufacturer
or
distributor
to
unilaterally
amend
or
mod
-
49
ify
the
franchise
agreement;
or
50
8
(vi)
Amend
or
modify
or
attempt
to
amend
or
modify
any
dealer
sales
1
and
service
agreement,
including
but
not
limited
to
the
dealer's
2
relevant
market
area
if
the
amendment
or
modification
substan
-
3
tially
and
adversely
affects
the
dealer's
rights,
obligations,
4
investment
or
return
on
investment,
without
giving
sixty
(60)
days
5
advance
written
notice
of
the
proposed
amendment
or
modification
6
to
the
dealer.
7
(b)
Nothing
in
this
subsection
shall
prevent
a
manufacturer
or
distrib
-
8
utor
from:
9
(i)
Participating
in
fleet
sales
or
leasing
with
a
fleet
customer
10
that
has
a
designation
as
such
by
the
manufacturer
or
distributor
1
1
as
long
as
such
sales
or
leases
are
conducted
with
the
involvement
12
of
a
dealer
of
the
same
line
make;
13
(ii)
Authorizing
or
assisting
a
fleet
customer
that
has
a
des
-
14
ignation
as
such
by
the
manufacturer
or
distributor
to
perform
15
warranty
service
on
vehicles
owned
or
operated
by
such
fleet
cus
-
16
tomers;
17
(iii)
Offering,
providing,
and
applying
the
terms
of
an
employee
18
pricing
or
similar
program
with
participating
dealers;
19
(iv)
Negotiating
binding
terms
of
sale
relating
to
the
sale
or
20
lease
of
a
vehicle
to
a
bona
fide
employee
or
relative
of
such
manu
-
21
facturer
or
distributor;
22
(v)
Negotiating
binding
terms
of
sale
relating
to
the
sale
or
23
lease
of
a
vehicle
to
a
bona
fide
employee
or
relative
of
a
fran
-
24
chised
dealer
under
an
employee
pricing
program
or
similar
pro
-
25
gram;
26
(vi)
Negotiating
binding
terms
of
sale
relating
to
the
sale
or
27
lease
of
a
vehicle
in
connection
with
a
vehicle
replacement
or
buy
-
28
back;
29
(vii)
Purchasing
from
a
consumer
a
vehicle
in
connection
with
a
ve
-
30
hicle
replacement
or
buyback;
31
(viii)
Maintaining
a
website
or
other
electronic
or
digital
means
32
of
communication
if
the
final
selling
or
leasing
price
of
the
new
33
vehicle
is
determined
by
eligible
dealers;
or
34
(ix)
Setting
or
advertising
a
manufacturer's
suggested
retail
35
price
or
lease
example
pricing
based
on
a
manufacturer's
suggested
36
retail
price,
special
financing,
or
lease
offers.
37
(9)(a)
Within
the
sixty
(60)
day
notice
period
provided
for
in
subsec
-
38
tion
(8)(a)(vi)
of
this
section,
the
dealer
may
pursue
remedies
under
39
section
49
-
1617,
Idaho
Code,
and
file
with
the
department
and
serve
upon
40
the
respondent
a
petition
to
determine
whether
good
cause
exists
for
41
permitting
the
proposed
modification.
Multiple
complaints
pertaining
42
to
the
same
proposed
modification
may
be
consolidated
for
hearing.
The
43
proposed
modification
may
not
take
effect
pending
the
determination
44
of
any
protest
filed
by
a
dealer.
In
making
a
determination
of
whether
45
there
is
good
cause
for
permitting
a
proposed
modification
of
a
dealer
46
sales
and
service
agreement,
including
but
not
limited
to
a
dealer's
47
relevant
market
area,
the
burden
of
proof
shall
be
on
the
manufacturer
48
or
distributor,
except
that
the
burden
of
proof
with
regard
to
the
fac
-
49
9
tor
set
forth
in
subparagraph
(iii)
of
this
paragraph
shall
be
on
the
1
dealer.
The
department
shall
consider
any
relevant
factor,
including:
2
(i)
The
reasons
for
the
proposed
modification;
3
(ii)
Whether
the
proposed
modification
is
applied
to
or
affects
4
all
motor
vehicle
dealers
in
a
nondiscriminatory
manner;
5
(iii)
The
degree
to
which
the
proposed
modification
will
have
6
a
substantial
and
adverse
effect
on
the
motor
vehicle
dealer's
7
rights,
investment,
or
return
on
investment;
and
8
(iv)
Whether
the
proposed
modification
is
in
the
public
interest.
9
(b)
With
respect
to
a
proposed
modification
of
a
dealer's
relevant
mar
-
10
ket
area
the
department
shall
also
consider:
1
1
(i)
The
traffic
patterns
between
consumers
and
the
same
line
-
12
make
franchised
dealers
of
the
affected
manufacturer
or
distrib
-
13
utor
who
are
located
within
the
market;
14
(ii)
The
pattern
of
new
vehicle
sales
and
registrations
of
the
af
-
15
fected
manufacturer
or
distributor
within
various
portions
of
the
16
relevant
market
area
and
within
the
market
as
a
whole;
17
(iii)
The
growth
or
decline
in
population,
density
of
population,
18
and
new
car
registrations
in
the
market;
19
(iv)
The
presence
or
absence
of
natural
geographical
obstacles
or
20
boundaries;
21
(v)
The
proximity
of
census
tracts
or
other
geographic
units
used
22
by
the
affected
manufacturer
or
distributor
in
determining
the
23
same
line
-
make
dealers'
respective
relevant
market
area;
and
24
(vi)
The
reasonableness
of
the
change
or
proposed
change
to
the
25
dealer's
relevant
market
area,
considering
the
benefits
and
harm
26
to
the
petitioning
dealer,
other
same
line
-
make
dealers,
and
the
27
manufacturer
or
distributor.
28
(10)
It
shall
be
unlawful
for
any
manufacturer
or
distributor
to
imple
-
29
ment
a
program
or
policy
that
coerces
or
requires
the
franchisee
to
install
30
direct
current
fast
charging
stations
for
public
access
or
use
or
any
simi
-
31
lar
public
-
facing
infrastructure
relating
to
charging,
fueling,
or
powering
32
a
vehicle.
For
purposes
of
this
section,
the
term
"coerce"
means
the
use
of
33
force
or
threats
to
compel
a
dealer
to
take
a
specific
action.
"Coerce"
in
-
34
cludes
threatening
to
withhold
vehicles
or
parts
from
a
franchisee
or
charg
-
35
ing
a
franchisee
a
higher
price
for
vehicles
or
parts
on
the
basis
of
the
36
franchisee
refusing,
declining,
or
failing
to
perform
a
specific
behavior.
37
Provided,
however,
that
nothing
contained
in
this
subsection
shall
be
deemed
38
to
prohibit
or
prevent
a
manufacturer
or
distributor
from
requiring
a
fran
-
39
chisee
to
purchase
special
tools
or
equipment,
install
reasonable
charging
40
infrastructure,
stock
reasonable
quantities
of
certain
parts,
or
partici
-
41
pate
in
training,
reasonable
sales
and
service
programs,
or
policies
that
42
are
reasonably
necessary
for
such
franchisee
to
sell
or
service
any
model
or
43
series
of
vehicles.
44
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
45
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
46
July
1,
2026.
47