Vehicle Laws - Licensing of Manufacturers and Distributors as Dealers - Requirements

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0824*

SENATE BILL 824
R4 6lr3210

By: Senator Smith
Introduced and read first time: February 6, 2026
Assigned to: Judicial Proceedings

A BILL ENTITLED

AN ACT concerning 1

Vehicle Laws – Licensing of Manufacturers and Distributors as Dealers – 2
Requirements 3

FOR the purpose of altering certain requirements for vehicle manufacturers or distributors 4
to be licensed as vehicle dealers; and generally relating to manufacturers and 5
dealers. 6

BY repealing and reenacting, without amendments, 7
Article – Transportation 8
Section 15–305(b) and (f) 9
Annotated Code of Maryland 10
(2020 Replacement Volume and 2025 Supplement) 11

BY repealing and reenacting, with amendments, 12
Article – Transportation 13
Section 15–305(e)(2) 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2025 Supplement) 16

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18

Article – Transportation 19

15–305. 20

(b) A license to deal in new vehicles may be issued only for a dealer in new vehicles 21
who holds a franchise from: 22

(1) The manufacturer of the vehicles; or 23

2 SENATE BILL 824

(2) A distributor who is authorized by the manufacturer or the 1
manufacturer’s authorized importer of the vehicles. 2

(e) (2) (i) Notwithstanding subsections (b) and (f) of this section and 3
subject to [subparagraph (ii) ] SUBPARAGRAPHS (II) AND (III) of this paragraph, a 4
manufacturer or distributor may be licensed as a dealer if: 5

1. The manufacturer or distributor [deals] MANUFACTURES 6
OR DISTRIBUTES only [in electric ] BATTERY–ELECTRIC or nonfossil –fuel burning 7
vehicles; 8

2. No dealer in the State holds a franchise from the 9
manufacturer or distributor; 10

3. The manufacturer or d istributor[, or a subsidiary, an 11
affiliate, or a controlled entity of the manufacturer or distributor, does not hold a controlling 12
interest in another manufacturer or distributor, or a subsidiary, an affiliate, or a controlled 13
entity of the other manufactu rer or distributor, that is licensed as a dealer under this 14
paragraph] IS NOT OWNED BY, CONTROLLED BY, UNDER COMMON CONTROL WITH, OR 15
AFFILIATED, DIRECTLY OR INDIRECT LY, WITH ANY OTHER MANUF ACTURER OR 16
DISTRIBUTOR THAT HAS FRANCHISED DEALERS; and 17

4. [No other manufacturer or distributor, or subsidiary, 18
affiliate, or controlled entity of the other manufacturer or distributor, that is licensed as a 19
dealer under this paragraph, holds a controlling interest in the manufacturer or distributor, 20
or a subsidiary, an affiliate, or a controlled entity of the manufacturer or distributor] THE 21
MANUFACTURER OR DISTRIBUTOR IS NOT A SUBSIDIARY, AN AFFILIATE, A DIVISION, 22
A BRAND, A JOINT VENTURE WITH, OR SUCCESSOR TO ANY OTHER MANUFACTURER 23
OR DISTRIBUTOR THAT HAS FRANCHISED DEALERS. 24

(ii) A MANUFACTURER OR DIST RIBUTOR SEEKING A DE ALER 25
LICENSE SHALL DEMONS TRATE TO THE SATISFA CTION OF THE ADMINISTRATION 26
THAT IT COMPLIES WIT H THE REQUIREMENTS O F SUBPARAGRAPH (I) OF THIS 27
PARAGRAPH. 28

(III) No more than four licenses may be issued under this paragraph. 29

[(iii)] (IV) The Administration shall adopt regulations to implement 30
this paragraph. 31

(f) A manufacturer or distributor, or a person who is acting for a partnership or 32
corporation that is owned or controlled by or under common control with a manufacturer 33
or distributor, may not sell a new vehicle to a retail buyer. 34

SENATE BILL 824 3

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2026. 2