An Act amending the act of December 22, 1983 (P.L.306, No.84), known as the Board of Vehicles Act, further providing for title of act; in preliminary provisions, further providing for definitions; and, in vehicles, further providing for license to engage in business, for reimbursement for all parts and service required by the manufacturer or distributor and reimbursement audits, for unlawful acts by manufacturers or distributors and for manufacturer or distributor repurchase of inventory and equipment and providing for consumer data protection.

PRIOR PRINTER'S NOS. 1432 PRINTER'S NO. 1866
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1182
Session of
2026
INTRODUCED BY YAW, BOSCOLA, LANGERHOLC, VOGEL, KANE,
SANTARSIERO, LAUGHLIN, KEEFER, MILLER, PISCIOTTANO,
PENNYCUICK, HUTCHINSON, J. WARD, ARGALL, BAKER, FLYNN,
BARTOLOTTA, KIM, HUGHES, COSTA, COLEMAN, TARTAGLIONE,
PHILLIPS-HILL, CULVER, COLLETT, FARRY, ROTHMAN, KEARNEY,
SCHWANK, ROBINSON, BROWN AND BROOKS, FEBRUARY 13, 2026
AS AMENDED ON THIRD CONSIDERATION, JUNE 29, 2026
AN ACT
Amending the act of December 22, 1983 (P.L.306, No.84), entitled
"An act providing for the State Board of Vehicle
Manufacturers, Dealers and Salespersons; and providing
penalties," further providing for title of act; in
preliminary provisions, further providing for definitions;
and, in vehicles, further providing for license to engage in
business, for reimbursement for all parts and service
required by the manufacturer or distributor and reimbursement
audits, for unlawful acts by manufacturers or distributors
and for manufacturer or distributor repurchase of inventory
and equipment and providing for consumer data protection.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title of the act of December 22, 1983
(P.L.306, No.84), known as the Board of Vehicles Act, is amended
to read:
AN ACT
Providing for the State Board of Vehicle Manufacturers, Dealers
and Salespersons; requiring a license to engage in the
business as a salesperson, dealer, branch lot, wholesale
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vehicle auction, public or retail vehicle auction,
manufacturer, factory branch, distributor , OR distributor
branch , factory representative or distributor ; regulating the
relationship between recreational vehicle dealers,
manufacturers and suppliers; and providing penalties.
Section 2. The definitions of "branch lot," "buying, selling
or exchanging" and "dealer" in section 102 of the act are
amended and the section is amended by adding definitions to
read:
Section 102. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Affiliate." A person that directly or indirectly controls,
is controlled by or is under common control with another person.
* * *
"Authorized integrator." A third party that enters into a
contract with a dealer to perform a specific function for the
dealer and allows the third party to access protected dealer
data or to import data into a dealer data system to carry out a
specified function.
* * *
"Branch lot." [An] A dealership with an office and lot
maintained in addition to the main office and lot of a licensed
vehicle dealer used for the display or sale of vehicles.
* * *
"Buying, selling or exchanging." Includes listing, offering,
auctioning, advertising, representing or soliciting, offering or
attempting to solicit or negotiate on behalf of another a sale,
purchase or exchange or any similar or related activity[.],
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including:
(1) Accepting a deposit or receiving a payment for the
retail purchase, lease or other use of a vehicle. A related
activity does not include facilitating a vehicle dealer's
acceptance of a deposit or receipt of a payment from a
consumer or receiving payment under a retail installment sale
contract OR LEASE .
(2) Accepting a reservation from a retail consumer for a
specific vehicle identified by a vehicle identification
number or other product identifier.
(3) Setting the retail price for the purchase, lease or
other use of a vehicle. The related activity does not include
setting a manufacturer's suggested retail price OR SUGGESTED
LEASE PRICE .
(4) Offering or negotiating with a retail consumer terms
for the purchase, lease or other use of a vehicle.
(5) Offering or negotiating with a retail consumer a
value for a vehicle being traded in as part of the purchase,
lease or other use of a vehicle. A related activity does not
include a website or other means of electronic communication
that identifies to a consumer a conditional trade-in value
and that contains language informing the consumer that the
trade-in value is not binding on any vehicle dealer.
(6) A transaction where the title of a vehicle is
transferred to a retail consumer.
(7) A retail lease transaction where a retail consumer
leases a vehicle for a period of at least 12 months. A
related activity does not include administering lease
agreements, taking assignments of leases, performing required
actions pursuant to leases or receiving payments under a
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lease agreement that was originated by a vehicle dealer.
* * *
"Consumer data." The term shall mean the same as "nonpublic
personal information" as defined under 15 U.S.C. § 6809(4)
(relating to definitions) as of January 1, 2024.
"Controls, is controlled by or is under common control." The
possession, directly or indirectly, of the power to participate
in, influence or cause the direction of the management and
policies whether through ownership of securities or partnership
or other ownership interests, by contract or otherwise.
"Dealer." A person required to be licensed under this act
who is engaged in the business of buying, selling or exchanging
new or used vehicles or an interest in new or used vehicles,
regardless of whether the vehicles are owned by that person. The
term includes persons engaged in consignment sales for a seller,
but does not include a person issued an identification number by
the Department of Transportation, unless the board has also
issued a dealer license to the person. Vehicle dealers shall be
classified as one or more of the following:
(1) A new vehicle dealer, who is a person engaged in the
business of buying, selling or exchanging new and used
vehicles, trailers or semitrailers for commission,
compensation or other consideration.[, who holds a franchise
with a manufacturer or distributor, giving the dealer selling
rights for that particular line-make of new vehicles,
trailers or semitrailers, or who is a distributor of new
vehicles, trailers or semitrailers who holds a franchise with
a manufacturer or distributor of vehicles, trailers and
semitrailers.]
(2) A used vehicle dealer, who is a person engaged in
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the business of buying, selling or exchanging used vehicles,
trailers or semitrailers for commission, compensation or
other consideration. The term includes fleet owners who
engage directly in the retail sale of its fleet vehicles.
(3) A new manufactured housing dealer, who is a person
engaged in the business of selling new manufactured housing
and buying, selling or exchanging used manufactured housing
or mobile homes for commission, compensation or other
consideration and who holds a franchise with a manufacturer
or distributor giving the dealer selling rights for a
particular line-make of new manufactured housing.
(4) A used manufactured housing or mobile home dealer,
who is a person engaged in the business of buying, selling or
exchanging used manufactured housing or mobile homes for
commission, compensation or other consideration.
(5) A new recreational vehicle dealer, who is a person
engaged in the business of buying, selling or exchanging new
and used recreational vehicles for commission, compensation
or other consideration and who holds a franchise with a
manufacturer or distributor giving the dealer selling rights
for a particular line of new recreational vehicles.
(6) A used recreational vehicle dealer, who is a person
engaged in the business of buying, selling or exchanging used
recreational vehicles for commission, compensation or other
consideration.
(7) A mobility vehicle dealer.
"Dealer data system." A software, hardware or firmware
system that is owned, leased or licensed by a dealer, that
includes a system of web-based applications, computer software
or computer hardware, whether located at the dealer's dealership
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or hosted remotely, and stores or provides access to protected
dealer data, a dealership management system or a consumer
relationship management system.
"Dealer data vendor." A third-party dealer data system
provider, consumer relationship management system provider or
third-party vendor providing similar services that store
protected dealer data pursuant to a contract with the dealer.
* * *
"Other generally accepted standards." Security standards
that are at least as comprehensive AND STRINGENT as STAR
standards.
"Ownership interest." As follows:
(1) Either:
(i) with respect to a privately held person, the
legal or beneficial ownership of any class of security,
including convertible debts, or the right to participate
in the earnings of the person; or
(ii) with respect to a person that equity securities
are publicly traded on any national exchange in the
United States, 5% or more of any class of equity
security, including convertible debts, or the right to
participate in the earnings.
(2) For purposes of this definition, security shall
include any interest, whether the interest is that of a
shareholder, partner, limited partner, limited liability
company member convertible debt holder or otherwise.
(3) To hold an ownership interest means to have
possession of, title to or control of the ownership interest,
whether directly or indirectly through a fiduciary or an
agent.
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* * *
"Protected dealer data." Any personal , financial or other
data pertaining to a consumer DATA provided to a dealer by a
consumer or otherwise obtained by a dealer, and any other data
related to a dealer's business operations, that is stored or
maintained by a dealer in that dealer's data system or in any
other manner.
* * *
"REQUIRED MANUFACTURER DATA." DATA THAT IS REQUIRED TO BE
OBTAINED BY THE MANUFACTURER OR DISTRIBUTOR UNDER FEDERAL OR
STATE LAW OR TO COMPLETE OR VERIFY A TRANSACTION BETWEEN THE
DEALER AND THE MANUFACTURER OR DISTRIBUTOR. THE TERM INCLUDES
INFORMATION THAT IS REASONABLY NECESSARY FOR ANY OF THE
FOLLOWING:
(1) A SAFETY RECALL OR OTHER LEGAL NOTICE OBLIGATION.
(2) THE SALE AND DELIVERY OF A NEW MOTOR VEHICLE OR A
CERTIFIED USED MOTOR VEHICLE TO A CONSUMER.
(3) THE VALIDATION AND PAYMENT OF CONSUMER OR DEALER
INCENTIVES.
(4) CLAIMS FOR DEALER-SUPPLIED SERVICES RELATING TO
PARTS OR REPAIRS FOR WARRANTY, SERVICE CONTRACTS, RECALLS,
SUBSCRIPTIONS AND CONNECTED SERVICES.
* * *
"STAR standards." Applicable security standards published by
the Standards for Technology in Automotive Retail as published
on the effective date of this definition.
* * *
"Third party." Includes service providers, vendors,
including dealer data vendors and authorized integrators, a
manufacturer or affiliate of a manufacturer acting in the
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capacity of a vendor, service provider or dealer data vendor, or
any other individual or entity other than the dealer. The term
does not include a governmental entity acting under Federal,
State or local law, or any third party acting pursuant to a
valid court order.
* * *
Section 3. Section 303(a) of the act is amended by adding a
paragraph to read:
Section 303. License to engage in business.
(a) License required.--
* * *
(4) The board shall deny a vehicle dealer license
application that, if granted by the board, would allow a
manufacturer, or any parent, subsidiary, affiliate or any
other person affiliated with the manufacturer or distributor,
to maintain an ownership interest, operate or control a
vehicle dealer, unless the applicant qualifies for an
exception under section 310(c).
* * *
Section 4. Section 307(a) of the act is amended and
subsection (b.1) is amended by adding a paragraph to read:
Section 307. Reimbursement for all parts and service required
by the manufacturer or distributor; reimbursement
audits.
(a) Manufacturers or distributors to notify dealers of their
obligations.--
(1) Each new vehicle manufacturer or distributor shall:
(i) specify in writing to each of its new vehicle
dealers licensed in this Commonwealth the dealer's
obligations for predelivery preparation and warranty
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service on its products[, shall compensate];
(ii) compensate according to this section, any
dealer that furnishes labor, parts and materials under
the warranty or extended warranty, certified preowned
warranty, manufacturer-sponsored maintenance program,
manufacturer-directed component installation or assembly,
parts exchange program, predelivery preparation,
diagnostic work or a service contract issued by a
manufacturer or distributor or its common entity;
(iii) compensate the new vehicle dealer for service
required of the dealer by the manufacturer or
distributor; and [shall]
(iv) provide the dealer with a schedule of
compensation to be paid the dealer for parts, work and
service[,] and the time allowance for the performance of
such work and service.
(2) Compensation for parts, including major assemblies
and electric vehicle batteries used in warranty service,
extended warranty, certified preowned warrant y, manufacturer-
sponsored maintenance program, manufacturer-directed
component installation or assembly, parts exchange program or
a service contract shall be at the dealer's retail rate. The
following shall apply:
(i) The dealer's retail rate for parts shall be
established by the dealer's submitting to the
manufacturer or distributor a declaration of the average
percentage markup which shall be the lesser of the
following orders which cover repairs made no more than
180 days before the submission:
(A) One hundred sequential nonwarranty customer-
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paid service repair orders which contain parts that
are used in warranty-like service or repair.
(B) Ninety consecutive days of nonwarranty
customer-paid service repair orders which contain
parts that are used in warranty-like service or
repair.
(ii) The declaration under subparagraph (i) shall be
presumed to be [reasonable] accurate, except that a
manufacturer or distributor may, not later than 60 days
after submission, rebut the presumption by substantiating
that the declaration is [unreasonable or] materially
inaccurate.
(iii) The retail rate shall go into effect 60 days
following the declaration under subparagraph (i), unless
the franchisor audits the submitted repair orders and a
rebuttal under subparagraph (ii) occurs.
(iv) If the declared retail rate is rebutted, the
manufacturer or distributor shall propose an adjustment
of the markup based on the rebuttal no later than 60 days
after submission.
(v) A manufacturer shall provide written support to
the dealer for the rebuttal retail rate that is proposed.
If the dealer does not agree with the proposed markup,
the dealer may file a protest after receipt of the
proposal by the manufacturer or distributor. If a protest
is filed, the board shall inform the manufacturer or
distributor that a protest has been filed and that a
hearing will be held on the protest. In a hearing held
under this subparagraph, the manufacturer or distributor
shall have the burden of proving that:
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(A) the retail rate declared by the dealer was
[unreasonable or] materially inaccurate; and
(B) the manufacturer's or distributor's proposed
adjustment of the markup is [reasonable] accurate.
(3) Compensation for labor used in warranty service,
extended warranty, certified preowned warranty, manufacturer-
sponsored maintenance program, manufacturer-directed
component installation or assembly, parts exchange program or
a service contract shall be at the dealer's retail rate. The
following shall apply:
(i) The dealer's hourly retail rate for labor shall
be established by submitting [the following] a
declaration with the following calculations to the
manufacturer or distributor:
(A) [A declaration of the average labor rate
calculated by dividing the amount of the dealer's
total labor sales by the number of total labor hours
that generated the sales.] The retail rate for labor
that shall be equal to the dealer's effective
nonwarranty labor rate multiplied by the number of
hours allowed for the repair under the manufacturer's
or distributor's time allowances used in compensating
the dealer for warranty work.
(B) [The] The retail rate for labor that shall
be equal to the dealer's effective nonwarranty labor
rate multiplied by the number of hours allowed for
the repair under the manufacturer's or distributor's
time allowances used in compensating the dealer for
warranty work. THE EFFECTIVE NONWARRANTY LABOR RATE
SHALL BE DETERMINED, USING THE SUBMITTED
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SUBSTANTIATING ORDERS UNDER CLAUSE (C), BY DIVIDING
THE TOTAL CUSTOMER LABOR CHARGES FOR QUALIFYING
NONWARRANTY REPAIRS IN THE REPAIR ORDERS BY THE TOTAL
NUMBER OF HOURS THAT WOULD BE ALLOWED FOR THE REPAIRS
IF THE REPAIRS WERE MADE UNDER THE MANUFACTURER'S OR
DISTRIBUTOR'S TIME ALLOWANCES USED IN COMPENSATING
THE DEALER FOR WARRANTY WORK.
(C) The lesser of the following orders which
cover repairs made no more than 180 days before the
submission:
(I) One hundred sequential nonwarranty
customer-paid service repair orders.
(II) Ninety consecutive days of nonwarranty
customer-paid service repair orders.
(ii) The declaration under subparagraph [(i)(A)] (i)
shall be presumed to be [reasonable] accurate, except
that a manufacturer or distributor may, no later than 60
days after submission, rebut the presumption by
substantiating that the rate is [unreasonable or]
materially inaccurate.
(iii) The average labor rate shall go into effect 60
days following the declaration under subparagraph [(i)
(A)] (i), unless the franchisor audits the submitted
repair orders and a rebuttal under subparagraph (ii)
occurs.
(iv) If the declared rate is rebutted, the
manufacturer or distributor shall propose an adjustment
of the labor rate based on the rebuttal not later than 60
days after submission.
(v) A manufacturer shall provide written support to
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the dealer for the rebuttal rate that is proposed. If the
dealer does not agree with the proposed labor rate, the
dealer may file a protest after receipt of the proposal
by the manufacturer or distributor. If a protest is
filed, the board shall inform the manufacturer or
distributor that a protest has been filed and that a
hearing will be held on the protest. In a hearing held
under this subparagraph, the manufacturer or distributor
shall have the burden of proving that:
(A) the retail rate declared by the dealer was
[unreasonable or] materially inaccurate; and
(B) the manufacturer's or distributor's proposed
adjustment of the retail rate is [reasonable]
accurate.
(vi) The retail rate for labor shall be equal to the
dealer's effective nonwarranty labor rate multiplied by
the number of hours allowed for the repair under the
manufacturer's or distributor's time allowances used in
compensating the dealer for warranty work.
(vii) The effective nonwarranty labor rate shall be
determined, using the submitted substantiating orders
under subparagraph (v), by dividing the total customer
labor charges for qualifying nonwarranty repairs in the
repair orders by the total number of hours that would be
allowed for the repairs if the repairs were made under
the manufacturer's or distributor's time allowances used
in compensating the dealer for warranty work.
(4) This subsection shall not apply to manufacturers or
distributors of manufactured housing.
(b.1) Exceptions.--When calculating the retail rate
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customarily charged by the dealer for parts and labor under this
section, the following work shall not be included:
* * *
(7) Repairs of conditions caused by a collision, a road
hazard, the force of the elements, vandalism, theft or owner,
operational or third-party negligence or deliberate act.
* * *
Section 5. Section 310(a) introductory paragraph and (8.2),
(b) introductory paragraph and (5) and (c)(1), (5) and (6) of
the act are amended and subsection (b) is amended by adding
paragraphs to read:
Section 310. Unlawful acts by manufacturers or distributors.
(a) Unlawful coercive acts.--It shall be a violation for any
manufacturer, factory branch, distributor, field representative,
officer, agent, subsidiary, affiliate, controlled entity or any
representative whatsoever of such manufacturer, factory branch
or distributor licensed under this chapter to require, attempt
to require, coerce or attempt to coerce any new vehicle dealer
in this Commonwealth to:
* * *
(8.2) (i) Purchase a good or service of any nature from
a vendor selected, identified or designated by a
manufacturer, factory branch, distributor, distributor
branch or an affiliate of a manufacturer, factory branch,
distributor, distributor branch by agreement, program,
incentive provision or other method [if expanding,
constructing or significantly modifying a facility]
without allowing the dealer the option to obtain a good
or service of substantially similar quality from a vendor
chosen by the dealer and approved by the manufacturer,
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which approval may not be unreasonably withheld.
(ii) Nothing under this paragraph shall be construed
to:
(A) Allow a dealer or vendor to eliminate or
impair a manufacturer's intellectual property rights,
including a manufacturer's intellectual property
rights in a trademark.
(B) Permit a dealer to erect or maintain signs
that do not conform to the intellectual property
usage guidelines of the manufacturer. If the goods or
services to be supplied to the dealer by a vendor
selected, identified or designated by the
manufacturer or distributor are signs or other
franchisor image elements to be purchased or leased
to the dealer, the dealer shall have the right to
purchase or lease the signs or other franchisor image
elements of similar quality and design from the
manufacturer or a vendor selected by the dealer. This
clause shall NOT be construed to allow a dealer or
vendor to violate directly or indirectly the
intellectual property rights of the manufacturer or
distributor, including the manufacturer's or
distributor's intellectual property rights in any
trademarks or trade dress, or other intellectual
property interests owned or controlled by the
manufacturer or distributor, or to permit a dealer to
erect or maintain signs that do not conform to the
reasonable intellectual property right or trademark
and trade dress usage guidelines of the manufacturer
or distributor.
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* * *
(b) Violations.--It shall be a violation of this chapter for
any manufacturer, factory branch, distributor, field
representative, officer, agent, subsidiary, affiliate,
controlled entity or any representative whatsoever of such
manufacturer, factory branch or distributor licensed or required
to be licensed under this chapter to:
* * *
(5) Fail to respond in writing to a request for consent
as specified in paragraphs (3) and (4) within 60 days of
receipt of a written request. [on the forms, if any,
generally utilized by the manufacturer or distributor for
such purposes and containing the information required. The
failure to respond within the time period set forth in this
paragraph shall be deemed to be approval of the request, and
the manufacturer or distributor shall execute and deliver a
franchise to the applicant within 30 days of the expiration
of this time period. A manufacturer or distributor shall
acknowledge in writing to the applicant the receipt of the
forms, and, if the manufacturer or distributor requires
additional information to complete its review, the
manufacturer or distributor shall notify the applicant within
15 days of the receipt of the forms. If the manufacturer or
distributor fails to request additional information from the
applicant within 15 days after receipt of the initial forms,
the 60-day time period for approval shall be deemed to run
from the initial receipt date. Otherwise, the 60-day time
period for approval shall run from receipt of the
supplemental requested information. In no event shall the
total time period for approval exceed 75 days from the date
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of the receipt of the initial forms.] The following apply:
(i) A written request under this paragraph shall be
deemed complete if the request includes:
(A) the applicant's name, address, financial
qualifications and business experience during the
previous five years;
(B) a certification that the applicant meets the
standards required to be licensed as a new vehicle
dealer in this Commonwealth; and
(C) a copy of the full agreement for the
proposed transaction in the form existing as of the
date of the notice.
(ii) Subsequent additions, modifications or
amendments to an agreement shall not toll the time in
which the manufacturer or distributor is required to
provide a response under this paragraph.
(iii) The manufacturer or distributor may request
additional supporting documentation as may be reasonably
required by the manufacturer or distributor to determine
if an objection to the sale or transfer may be made, and
the applicant shall provide the requested documentation
within 10 business days. A request shall not toll the
time in which the manufacturer or distributor is required
to provide notice.
(iv) The manufacturer or distributor and the
applicant may, but are not required to, mutually agree to
toll any of the time periods provided under this
paragraph to facilitate the exchange of information.
(v) Failure of the manufacturer or distributor to
notify the applicant within the 60-day period of a
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rejection shall be deemed an approval of the transfer and
the manufacturer or distributor shall execute and deliver
a franchise to the applicant within 30 days of the
expiration of this time period. An objection shall not be
sufficient unless the failure to approve is reasonable.
(vi) Grounds that may be considered reasonable for a
failure to approve include an individual who is the
applicant or is in control of an entity that is an
applicant:
(A) lacks good moral character;
(B) lacks motor vehicle dealership management
experience;
(C) lacks financial ability to be the dealer; or
(D) fails to meet the standards required to be
licensed as a new vehicle dealer in this
Commonwealth.
(vii) An objection shall not prevent the sale,
transfer, assignment or change, if requested in writing
by the applicant, if the board has determined within 30
days after receipt of an objection to the proposed sale,
transfer or change and after a hearing on the matter,
that the failure to permit or honor the sale, transfer,
assignment or change is unreasonable under the
circumstances.
* * *
(20) Sell or activate for a fee any permanent or
temporary motor vehicle accessory, option, add-on, service,
feature, improvement or upgrade on or to any motor vehicle
owned or leased by a retail customer located in this
Commonwealth, through over-the-air or remote means, unless
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the manufacturer or distributor complies with all of the
following requirements:
(i) The manufacturer or distributor permits all of
its franchised same line-make dealers that are located in
this Commonwealth to sell the same motor vehicle
accessory, option, add-on, service, upgrade, feature or
improvement to retail customers on the same terms offered
by the manufacturer or distributor.
(ii) The permanent or temporary motor vehicle
accessory, option, add-on, service, upgrade, feature or
improvement is activated or installed directly on the
retail customer's motor vehicle through remote electronic
transmission.
(iii) If the sale or activation of the permanent or
temporary motor vehicle accessory, option, add-on,
service, upgrade, feature or improvement by either the
manufacturer or the direct involvement of the dealer who
sells or leases the vehicle to the retail customer occurs
at the time of the new motor vehicle sale or lease or
within a five-year period immediately following the sale
or lease of the new motor vehicle by a franchised motor
vehicle dealer in this Commonwealth, the manufacturer or
distributor provides the franchised motor vehicle dealer
that sold the new motor vehicle at least 12% of the gross
payment received by the manufacturer or distributor for
the sale or activation of the accessory, option, add-on,
service, upgrade, feature or improvement to the original
vehicle owner or lessee.
(iv) The manufacturer or distributor provides
compensation consistent with section 307 to an authorized
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dealer for providing assistance or repair at the
dealership for a failed, damaged, nonfunctioning or
defective over-the-air or remote accessory, option, add-
on, service, upgrade, feature or improvement, change or
repair administered by the vehicle manufacturer to any
part, system, accessory or function of the customer's
vehicle at the request of the customer.
(v) When providing a new vehicle to a dealer for
offer or sale to the public, the manufacturer or
distributor shall provide to the dealer:
(A) A written disclosure that may be furnished
by the dealer to a potential purchaser or lessee of
the new motor vehicle identifying each permanent or
temporary motor vehicle accessory, option, add-on,
service, upgrade, feature or improvement of the
vehicle that may be initiated, updated, changed or
maintained by the manufacturer or distributor through
over-the-air or remote means.
(B) T he A WRITTEN DISCLOSURE CONTAINING THE
CURRENT cost to the retail customer at the time of
the new motor vehicle sale or lease, AND A STATEMENT
that all accessories, options, add-ons, services,
upgrades, features or improvements may be purchased
directly from the dealer. Every manufacturer or
distributor that, through over-the-air or remote
means, provides any permanent or temporary motor
vehicle accessory, option, add-on, service, feature,
improvement or upgrade on or to any motor vehicle
owned or leased by a retail customer located in this
Commonwealth shall provide to each of its franchised
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dealers within this Commonwealth, on a basis no less
frequently than monthly, a statement itemizing the
type, volume and gross receipts generated from the
sale of over-the- air or remotely activated products
and services that were sold to the dealer's customers
and calculating the fees and commissions to which the
dealer is entitled under this subparagraph. A
manufacturer or distributor may comply with this
subparagraph by notifying the dealer that the
information is available on a publicly accessible
Internet website or by other digital means.
(21) Fail to reimburse a dealer located in this
Commonwealth in full:
(i) For the actual cost, including applicable taxes
and third-party fees, of providing a loaner or rental
vehicle to any customer who is having a vehicle serviced
at the dealership if the provision of a loaner or rental
vehicle is required by the manufacturer.
(ii) Whether or not the dealer provides the customer
with a model vehicle similar to the vehicle the customer
brought in for service, in the event the dealer does not
have a similar model loaner or rental vehicle available,
or if the provision of a rental or loaner vehicle to a
customer is required or approved by the manufacturer or
distributor.
(iii) All or any portion of the time the dealer has
provided the customer with a loaner or rental vehicle due
to the unavailability of one or more parts sold or
distributed by the manufacturer or through a supplier
designated or approved by the manufacturer.
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(22) Impose unreasonable restrictions on a new vehicle
dealer relative to transfer, sale, right to renew,
termination, discipline, noncompetition covenants, site-
control, whether by sublease, collateral pledge of lease or
otherwise, right of first refusal to purchase, option to
purchase, compliance with subjective standards and assertion
of legal or equitable rights.
(c) Restriction on ownership of dealer.--
(1) Except as otherwise provided in this subsection, and
regardless of whether the person has ever been a franchise
dealer in this Commonwealth, a manufacturer [or],
distributor, factory branch, subsidiary, affiliate or
controlled entity of a manufacturer or distributor or any
representative of a manufacturer, distributor or factory
branch shall not:
(i) own or hold an interest, other than a passive,
minority interest in a publicly traded dealer held for
investment purposes, in a dealer licensed or required to
be licensed under this chapter which is engaging in the
business of buying, selling or exchanging vehicles; or
(ii) operate or control a dealer licensed or
required to be licensed under this chapter which is
engaging in the business of buying, selling or exchanging
vehicles.
* * *
(5) A manufacturer or distributor shall not unfairly
discriminate or compete in terms of any sales, service or
operational activities with a new vehicle dealer of the same
or an affiliate line-make when a manufacturer or distributor
operates a new vehicle dealer under this subsection.
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(6) The following shall apply:
(i) A manufacturer [or], distributor, factory
branch, subsidiary, affiliate or controlled entity of a
manufacturer, distributor or any representative the
manufacturer, distributor or factory branch may own,
operate or control not more than five new vehicle
dealerships trading solely in electric vehicles, as
defined in 75 Pa.C.S. § 102 (relating to definitions),
that are not sold as new vehicles by a licensed
independent new vehicle dealer pursuant to an existing
franchise with a manufacturer or distributor, if each of
the following conditions are met:
(A) Each of the new vehicle dealerships selling
the manufacturer's new motor vehicles in this
Commonwealth trade exclusively in the manufacturer's
line-make.
(B) Each of the new vehicle dealerships selling
the manufacturer's motor vehicles in this
Commonwealth are determined to be in compliance with
this chapter.
(C) Either of the following apply:
(I) The manufacturer, distributor, factory
branch or a subsidiary, affiliate or controlled
entity of the manufacturer or distributor has not
acquired, nor does it hold [a controlling],
either directly or indirectly, any ownership
interest in another manufacturer or distributor,
required to be licensed under this chapter that
sells new vehicles to a licensed independent new
vehicle dealer pursuant to an existing franchise
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with the manufacturer or distributor.
(II) If [a controlling] any ownership
interest is acquired, the manufacturer,
distributor or a subsidiary, affiliate or
controlled entity may not continue to operate or
control a new vehicle dealership under this
subsection for a period not more than 12 months
from the date it acquired the [controlling]
ownership interest.
(D) Either of the following apply:
(I) [A controlling interest in the original
manufacturer, distributor or any subsidiary,
affiliate or controlled entity was not
transferred, sold or conveyed to another
manufacturer, distributor, person or entity
required to be licensed under this chapter.] A
manufacturer or distributor that sells new
vehicles to a licensed independent new vehicle
dealer pursuant to an existing franchise with the
manufacturer or distributor does not, directly or
indirectly, including through a subsidiary,
affiliate or a controlled entity, hold any
ownership interest or acquire any ownership
interest in a manufacturer or distributor owning,
operating or controlling a vehicle dealership
trading solely in electric vehicles pursuant to
this subsection.
(II) If [a controlling interest is
transferred, sold or conveyed to another
manufacturer, distributor, person or entity
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required to be licensed under this chapter, the
entity] any ownership interest is acquired by a
manufacturer or distributor that sells new
vehicles by a licensed independent new vehicle
dealer pursuant to an existing franchise with the
manufacturer or distributor, the manufacturer or
distributor owning, operating or controlling a
vehicle dealership trading solely in electric
vehicles pursuant to this section may not
continue to operate or control a new vehicle
dealership under this subsection for a period not
more than 12 months from the date it acquired the
[controlling] ownership interest.
(E) The manufacturer shall have continuously
offered electric vehicles for sale for a period of
not less than 12 months prior to [the effective date
of this clause] JULY 9, 2014.
(ii) Nothing under this chapter shall prohibit a
manufacturer operating or controlling a new vehicle
dealership under this paragraph from owning, operating or
controlling a warranty facility for warranty repairs on
the manufacturer's line-make of vehicles.
* * *
Section 6. Section 316(c) of the act is amended to read:
Section 316. Manufacturer or distributor repurchase of
inventory and equipment.
* * *
(c) Limited applicability.--This section shall not apply to
manufacturers, distributors or dealers of recreational vehicles
or manufactured housing[, nor shall it apply to motorcycle
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manufacturers, distributors or dealers except when the
unilateral termination or failure to renew is by the
manufacturer or distributor].
Section 7. The act is amended by adding a section to read:
Section 334. Consumer data protection.
(a) Data submission to manufacturers or third parties.--
(1) A manufacturer or third party may not require a
dealer to grant to the manufacturer, third party or other
person or party acting on behalf of the manufacturer or third
party, direct or indirect access to the dealer's dealer data
system.
(2) A dealer may submit data or information to a
manufacturer or third party through an electronic file format
or protocol if the electronic file format or protocol is
widely accepted and complies with STAR standards or other
generally accepted standards THAT ARE AT LEAST AS
COMPREHENSIVE AND STRINGENT AS THE STAR STANDARDS .
(3) A manufacturer or third party may not:
(i) access, share, use or transmit protected dealer
data without prior express written consent;
(ii) engage in any act of cyber ransom or take
action to prohibit or limit a dealer's ability to
protect, store, copy, share or use protected dealer data;
(iii) impose a fee or other restriction on the
dealer or authorized integrator for accessing or sharing
protected dealer data, writing data to a dealer data
system or submitting data or information to the
manufacturer or third party;
(iv) prohibit a third party or authorized integrator
that satisfies STAR standards from integrating into the
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dealer's dealer data system; or
(v) place an unreasonable restriction on integration
by an authorized integrator or third party.
(4) A dealer may unilaterally revoke the dealer's prior
express written consent under paragraph (3)(i) with 30 days'
notice to a manufacturer without cause or immediately for
cause. A manufacturer may not seek or require prior express
written consent as a condition of or fact for consideration
or eligibility for a manufacturer program, a standard or
policy or a benefit to the dealer. For purposes of this
paragraph, the dealer's data contained in or on a dealer data
system owned, leased or licensed by a dealer in this
Commonwealth is the property of the dealer.
(B) DATA SUBMISSION TO MANUFACTURERS OR DISTRIBUTORS.--
(1) A MANUFACTURER OR DISTRIBUTOR MAY NOT ACCESS, SHARE,
SELL, COPY, USE, TRANSMIT OR REQUIRE A DEALER TO SHARE OR
PROVIDE ACCESS TO PROTECTED DEALER DATA BEYOND THE REQUIRED
MANUFACTURER DATA WITHOUT PRIOR EXPRESS WRITTEN CONSENT. A
DEALER MAY UNILATERALLY REVOKE THE DEALER'S PRIOR EXPRESS
WRITTEN CONSENT WITHOUT CAUSE WITH 60-DAY NOTICE OR
IMMEDIATELY FOR CAUSE.
(2) A MANUFACTURER OR DISTRIBUTOR MAY NOT UNREASONABLY
REQUIRE PRIOR EXPRESS WRITTEN CONSENT AS A CONDITION FOR
ELIGIBILITY FOR ANY MANUFACTURER OR DISTRIBUTOR PROGRAM,
STANDARD OR POLICY, INCLUDING ONE THAT OFFERS A BONUS,
INCENTIVE, REBATE OR OTHER PAYMENT OR BENEFIT TO A DEALER.
(3) THIS ACT SHALL NOT BE CONSTRUED TO RESTRICT OR LIMIT
A MANUFACTURER'S OR DISTRIBUTOR'S RIGHT TO OBTAIN REQUIRED
MANUFACTURER DATA, USE REQUIRED MANUFACTURER DATA FOR ANY OF
THE PURPOSES IDENTIFIED IN THE DEFINITION OF REQUIRED
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MANUFACTURER DATA OR USE OR CONTROL DATA THAT IS PROPRIETARY
TO THE MANUFACTURER OR DISTRIBUTOR, CREATED BY THE
MANUFACTURER OR DISTRIBUTOR, OBTAINED FROM A SOURCE OTHER
THAN THE DEALER OR THAT IS PUBLIC INFORMATION.
(4) A MANUFACTURER OR DISTRIBUTOR MAY NOT ENGAGE IN AN
ACT OF CYBER RANSOM OR TAKE AN ACTION BY CONTRACT, TECHNICAL
MEANS OR ANY OTHER MEANS TO PROHIBIT OR LIMIT A DEALER'S
ABILITY TO PROTECT, STORE, COPY, SHARE OR USE PROTECTED
DEALER DATA.
(b) (C) Responsibilities and restrictions.--
(1) A manufacturer or a third party acting on behalf of
a manufacturer shall do all of the following:
(i) Comply with all and not knowingly cause a dealer
to violate any applicable restrictions on reuse or
disclosure of the consumer data established by Federal or
State law and provide a written statement to the dealer
upon request describing the established procedures
adopted by the manufacturer or third party acting on
behalf of the manufacturer which meet or exceed any
Federal or State requirements to safeguard consumer data,
including those established under 15 U.S.C. Ch. 94
(relating to privacy).
(ii) Indemnify the dealer for any third-party claims
asserted against or damages incurred by the dealer to the
extent the claims or damages are related to or caused by
the access to and disclosure of protected dealer data
resulting from a breach caused by the manufacturer or
third party to which the manufacturer has provided the
consumer data and proprietary data .
(iii) After written request of the dealer, provide a
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written list of the consumer data and proprietary data
obtained from the dealer and all persons to whom any data
has been provided by the manufacturer or a third party
acting on behalf of a manufacturer during the preceding
six months. The dealer may make a request no more than
once every six months. The list must indicate the
specific fields of consumer or proprietary data that were
provided to each person. The list need not include any
person to whom consumer data and proprietary data was
provided if the dealer has previously consented in
writing to the person receiving the consumer or
proprietary data and the dealer has not withdrawn consent
in writing. INCLUDE:
(A) A PERSON TO WHOM CONSUMER DATA AND
PROPRIETARY DATA WAS PROVIDED IF THE DEALER HAS
PREVIOUSLY CONSENTED IN WRITING TO THE PERSON
RECEIVING THE CONSUMER OR PROPRIETARY DATA AND THE
DEALER HAS NOT WITHDRAWN CONSENT IN WRITING;
(B) A PERSON TO WHOM CONSUMER DATA WAS PROVIDED,
OR THE SPECIFIC CONSUMER DATA PROVIDED TO THE PERSON,
IF THE PERSON WAS, AT THE TIME THE CONSUMER DATA WAS
PROVIDED, A SERVICE PROVIDER, SUBCONTRACTOR OR
CONSULTANT ACTING IN THE COURSE OF PERFORMANCE OF
SERVICES ON BEHALF OF OR FOR THE BENEFIT OF THE
DEALER, MANUFACTURER, DISTRIBUTOR, THIRD PARTY OR
AFFILIATE, PROVIDED THAT THE DEALER, MANUFACTURER,
DISTRIBUTOR, THIRD PARTY OR AFFILIATE HAS ENTERED
INTO AN AGREEMENT WITH THE PERSON REQUIRING THAT THE
PERSON COMPLY WITH THE SAFEGUARD REQUIREMENTS OF
APPLICABLE FEDERAL AND STATE LAW, INCLUDING, BUT NOT
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LIMITED TO, THOSE ESTABLISHED UNDER 15 U.S.C. § 6801
(RELATING TO PROTECTION OF NONPUBLIC PERSONAL
INFORMATION); OR
(C) A PERSON TO WHOM CONSUMER DATA WAS PROVIDED
OR THE SPECIFIC CONSUMER DATA PROVIDED TO THE PERSON,
IF THAT REQUIRES A MANUFACTURER, DISTRIBUTOR OR
AFFILIATE OF THE PERSON TO VIOLATE ANY APPLICABLE
RESTRICTIONS ON REUSE OR DISCLOSURE OF THE CONSUMER
DATA ESTABLISHED BY FEDERAL OR STATE LAW.
(2) A dealer data vendor shall do all of the following:
(i) Adopt and make available a standardized
framework for the exchange, integration and sharing of
data from dealer data systems and authorized integrators
and retrieval of such data by authorized integrators. Use
of the STAR standards or the standards compatible with
the STAR standards shall be deemed to be in compliance
with this requirement.
(ii) Provide access to open application interfaces
to authorized integrators. In the event that application
interfaces are no longer the reasonable commercial or
technical standard for secure data integration, a similar
open access integration method may be provided, to the
extent it provides the same or better access to
authorized integrators as an application interface and
utilizes the required standardized framework.
(3) A dealer data vendor and authorized integrators:
(i) May access, use, store or share protected dealer
data or any other data from a dealer data system only to
the extent permitted in the written agreement with the
dealer.
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(ii) Must make any agreement regarding access to,
sharing or selling of, copying, using or transmitting
protected dealer data terminable after no more than 30
days notice from the dealer.
(iii) Shall, after notice of the dealer's intent to
terminate a contract, in order to prevent any risk of
consumer harm or inconvenience, work to ensure a secure
transition of all protected dealer data to a successor
dealer data vendor or authorized integrator, including:
(A) providing unrestricted access to all
protected dealer data and all other data stored in
the dealer data system in a commercially reasonable
time and format that a successor dealer data vendor
or authorized integrator can access and use; and
(B) deleting or returning to the dealer all
protected dealer data prior to termination of the
contract under any written directions of the dealer.
(iv) Shall provide a dealer, upon request, with a
listing of all entities with whom the dealer data vendor
or authorized integrator is sharing protected dealer data
or with whom the dealer data vendor and authorized
integrator has allowed access to protected dealer data.
(v) Shall allow a dealer to audit the dealer data
vendor or authorized integrator's access to and use of
any protected dealer data.
(4) This subsection shall not apply to any financial
institution or data subject to 15 U.S.C. Ch. 94. The rights
conferred on dealers in this subsection are not waivable and
may not be reduced or otherwise modified by any contract or
agreement. This subsection shall be interpreted and enforced
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in accordance with the laws of this Commonwealth without
giving effect to any choice of law or conflict of laws
principles that would require the application of laws in any
other jurisdiction.
(D) LIMITATIONS.--NOTHING IN THIS SECTION SHALL BE CONSTRUED
TO PROHIBIT A MANUFACTURER, VENDOR SELECTED BY A MANUFACTURER OR
A THIRD PARTY FROM DISCHARGING ITS OBLIGATION AS A SERVICE
PROVIDER OR OTHERWISE UNDER FEDERAL, STATE OR LOCAL LAW TO
PROTECT AND SECURE PROTECTED DEALER DATA OR TO OTHERWISE LIMIT
THOSE RESPONSIBILITIES.
Section 8. This act shall take effect in 60 days.
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