It is enacted by the General Assembly as follows:

SECTION 1. Title 5 of the General Laws entitled "Businesses and Professions" is hereby amended by adding thereto the following chapter:

{ADD 5-38.3-1. Statement of purpose. -- ADD} {ADD The purposes of this act are to further highway safety by promoting the proper and efficient repair of malfunctioning or disabled motor vehicles and to protect the consumers from dishonest, deceptive and fraudulent practices in the repair of motor vehicles. That further, the purpose of this act is to protect the motoring public from improper repairs made to its vehicles to set standards for quality repairs to be made to motor vehicles for fair and reasonable fees and to eliminate unqualified automotive repair shops from engaging in the business of automotive repair to malfunctioning or disabled vehicles. ADD}

{ADD 5-38.3-2. Definitions. -- ADD} {ADD As used in this chapter:

(1) The term "motor vehicle" shall mean every vehicle operated or driven upon a public highway which is propelled by any power other than muscular power, except

(a) electrically-driven mobility assistance devices operated or driven by a person with a disability;

(b) vehicles which run only upon rails or tracks;(c) snowmobiles;

(d) farm type tractors and all terrain vehicles used exclusively for agricultural purposes, and

(e) towed vehicles designed and primarily used for some other purpose other than transporting people or property.

The term "motor vehicle" shall exclude fire and police vehicles other than ambulances.

(2) The term "motor vehicle repair shop" or "repair shop" shall mean any person who, for compensation, is wholly or partially engaged in the business of repairing or diagnosing motor vehicle malfunctions, except that such term does not include:

(a) any employee of a motor vehicle repair shop who engages in the business of repairing motor vehicles solely by reason of his employment;

(b) any person who is solely engaged in the business of repairing the motor vehicles of a single commercial or industrial establishment, or of the federal, state or local government or any agency thereof; or

(c) any person whose activities consist solely of fueling, changing oil, water, batteries or tires, replacing fan belts, air filters or oil filters, installing windshield wiper blades or light bulbs, or such other minor repair and servicing functions as the director shall by rule prescribe; or

(d) any person solely engaged in the business of repairing farm or road building machines, or such other utility vehicles as the director may by regulation designate.

(e) any person who is governed by the provisions of chapter 5 and 5.1 of title 31;

The term "motor vehicle repair shop" shall also include any shop, drive-in station, or garage operated by any person, firm, corporation or association at which motor vehicles are inspected for the purposes of appraising, evaluating or estimating the cost of motor vehicle repairs, and the repairs are actually performed.

(3) The term "day" shall mean calendar day except that if the last day is a Saturday, Sunday or holiday there shall be an extension of time to the conclusion of the next business day.

(4) The term "estimate" shall mean the repair shop's determination of the cost of parts and the cost of labor needed to perform offered services. If a teardown is needed to determine the services required to repair a motor vehicle malfunction, the estimate which includes the cost of teardown and re-assembly shall clearly state that such estimate does not include the cost of repairs.

(5) The term "guarantee" shall mean an obligation undertaken by a repair shop to re-repair a vehicle at no charge or at a reduced charge for parts or labor or both.

(6) The term "invoice" shall mean a bill in writing listing the details of the transaction between the repair shop and the customer as required by this part.

(7) The term "reasonable fee for making an estimate" shall mean an amount based on no more than the shop's labor charge, calculated by clock hours, or one dollar ($1.00), whichever is greater.

(8) The term "repair" shall mean any alteration or adjustment to a motor vehicle, or diagnosing a malfunction.

(9) The term "timely written demand" shall mean a request in writing made to the repair shop operator by the customer before any work is done on the vehicle.

(10) The term "warranty" shall mean a promise made by a manufacturer that a vehicle will be repaired at no charge or at a reduced charge for parts or labor or both.

(11) The term "work order" shall mean an authorization, either oral or written, on the part of the customer for the repair shop to perform a service.

(12) The term "diagnostic center" shall mean a business which examines motor vehicles to determine the cause or location of malfunctions in motor vehicles.

(13) The term "flat rate" shall mean relevant time allocated to a job as indicated in the manual used. These times may differ from actual time.

(14) The term "deceptive practice" shall mean a deceptive act or practice as defined in title 6, chapter 13.1.

(15) "Consumer protection unit" shall mean the consumer protection unit of the department of attorney general.

(16) The term "documentary material" shall mean the original or a copy of any book, record, report, memorandum, paper, communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording wherever situate.

(17) "Examination" of documentary material shall include the inspection, study, or copying of any documentary material, and the taking of testimony under oath or acknowledgement in respect of any documentary material or copy thereof.

(18) "Trade" and "commerce" shall mean the advertising, offering for sale, sale, or distribution of any services and any property, tangible or intangible, real, personal, or mixed, and any other article, commodity, or thing of value wherever situate, and shall include any trade or commerce directly or indirectly affecting the people of this state. ADD}

{ADD 5-38.3-3. Obligations of motor vehicle repair shop. -- ADD} {ADD The repair shop shall: (a) Upon request of any customer make an estimate in writing of the parts and labor necessary for each specific repair or service offered and shall not charge for work done or parts supplied in excess of the estimate without the consent of such customer. The repair shop may charge a reasonable fee for making an estimate. The repair shop may elect to apply the estimate fee to services actually performed. The estimate shall contain the following information: the customer's name, the name of the repair shop, the date of the estimate, a list of parts necessary for each specific repair together with the costs for each part, indicating any parts which are not new parts of at least original equipment quality, the labor charge for each repair together with the costs of each labor charge, year and make of vehicle, registration plate number or vehicle identification number, a description of the problem reported by the customer, and a statement informing the customer of his or her right to receive replaced parts if the customer makes a written request for such return. All information on an estimate must be legible;

(i) Written estimates must indicate the hourly labor charge and how it is computed, i.e., by clock hours or flat rate. If flat rate, the manual used must be specified. However, a repair shop may utilize a job rate which covers both labor and parts on mechanical and electrical repairs costing less than two hundred dollars ($200). When a job rate is used, a list of parts must be included in the estimate and invoice.

(ii) If flat rate is used, the consumer shall be shown relevant time rates as listed in the manual, on request;

(iii) A customer may not be charged for storage or automotive repair unless notice in writing is given. Notice may given by a statement on an estimate or other document given the customer, by letter or by other written means which gives the customer actual notice. Storage may not be charged during the period from which the customer has authorized repairs to one (1) business day after the repair shop has notified the customer to pick up the repaired vehicle.

(iv) Upon reasonable notice, a customer may remove a vehicle from a repair shop during the shop's business hours upon paying for: (1) labor actually performed; (2) parts actually installed; (3) parts ordered specifically for the customer's car if the order is not cancellable or the parts not returnable for cash or credit; and (4) storage charges imposed in accordance with subdivision (iii) of this section.

(b) Not perform any services not authorized by the customer by a work order. If a repair shop prepares a written work order, a copy shall be given to the customer. If a written work order is prepared by the customer, such work order shall be attached to the invoice. If the customer gives an oral work order, the oral work order shall be noted on the invoice and shall include the date, time and manner of authorization and by whom such authorization was given;

(c) Provide the customer with an invoice. An invoice shall contain the following information: the name and address of the repair shop, the date of the invoice, the date the vehicle was presented to the repair shop for repair or services, a list of all parts supplied and labor performed, including the cost for each such part and labor, a notation indicating the status of any part used which is not new and of at least original quality (i.e., used, rebuilt, etc.), the odometer reading on the vehicle at the time it was left with the repair shop and the odometer reading at the time the invoice was prepared, a promised date of delivery, if any such date was given, the name of the customer, year and make of the vehicle, the terms and time limit of any guarantee for the repair work performed, a description of the problem reported by the customer. A repair performed under warranty requires an invoice which complies with this subdivision. All information on an invoice must be legible;

(d) Return replaced parts if a timely written demand is made by the customer. If work is authorized over the telephone, it shall be presumed that the customer wants his parts returned and the repair shop shall keep such parts until the customer or his agent appears to retrieve the motor vehicle at which time the replaced parts shall be given to the customer if he so directs. This subdivision does not apply to parts, components or equipment normally sold on an exchange basis or subject to a manufacturer's warranty;

(e) Operate the vehicle while in its possession only in accordance with the direction of the customer or as is necessary to repair or road test the vehicle;

(f) Make repairs covered by guarantee;

(g) Not commit fraud or engage in deceptive practices. ADD}

{ADD 5-38.3-4. Powers and duties of the attorney general. -- ADD} {ADD (a) Under this act, the department of attorney general's consumer protection unit shall have the power to make and conduct such investigations as it deems proper to effectuate the purposes of this act. The consumer protection unit will accept complaints against a repair shop up to ninety (90) days or three thousand (3,000) miles after completion of the repairs, whichever comes first. All complaints that are signed shall be reviewed or investigated except those that fall outside the jurisdiction of the act. The consumer protection unit may assist in settlement of disputes between the repair shop and the complainant.

(b) The attorney general may establish, by rule or regulation, criteria upon which the necessity for investigation or complaints shall be determined. Such criteria may include but not be limited to the alleged financial loss to the complainant, the indication of a recurring incidence of fraud or deceptive practices, or the essential nature of the service provided to the safe operation of the vehicle.

The attorney general may prescribe such rules and regulations as he shall deem necessary to effectuate the purpose of this act. ADD}

{ADD 5-38.3-5. Investigation -- Procedure -- Remedies for failure to comply. -- ADD} {ADD (a) When it appears to the attorney general that a person has engaged in, is engaging in, or is about to engage in any act or practice declared to be unlawful by this chapter, or when the attorney general believes it to be in the public interest that an investigation should be made to ascertain whether a person in fact has engaged in, is engaging in, or is about to engage in any act or practice declared to be unlawful by this chapter, he or she may execute in writing and cause to be served, upon any person who is believed to have information, documentary material, or physical evidence relevant to the alleged or suspected violation, an investigative demand, stating the general subject matter of the investigation and the statute and section the alleged or suspected violation of which is under investigation and requiring the person to furnish, under oath or otherwise, a report in writing setting forth the relevant facts and circumstances of which the person has knowledge, or to appear and testify or to produce relevant documentary material or physical evidence for examination, at such reasonable time and place as may be stated in the investigative demand, concerning the deceptive and/or fraudulent practice in the repair of motor vehicles or the conduct of any trade or commerce that is the subject matter of the investigation. All civil investigative demands shall be filed in the superior court of the county in which the person served with the demand shall dwell or have his principal place of business.

(b) At any time before the return date specified in an investigative demand, or within twenty (20) days after the demand has been served, whichever period is shorter, a petition to extend the return date or to modify or set aside the demand, stating good cause, may be filed in the superior court in which the person served with the demand shall dwell or have his or her principal place of business, or in the superior court of Providence county.

(c) To accomplish the objectives and to carry out the duties prescribed by this chapter, the attorney general, in addition to other powers conferred upon him or her by this chapter, may issue subpoenas to any person, administer an oath or affirmation to any person, conduct hearings in aid of any investigation or inquiry; provided that none of the powers conferred by this chapter shall be used for the purpose of compelling any natural person to furnish testimony or evidence which might tend to incriminate the person or subject him or her to a penalty or forfeiture; and provided further that information obtained pursuant to the powers conferred by this chapter shall not be made public or disclosed by the attorney general or his or her employees beyond the extent necessary for law enforcement purposes in the public interest.

(d) Service of any notice, demand, or subpoena under this chapter shall be made personally within this state, but if personal service cannot be obtained, substituted service therefor may be made in the following manner:

(1) Personal service thereof without this state; or

(2) The mailing thereof by registered or certified mail to the last known place of business, residence, or abode within or without this state of the person for whom the service is intended; or

(3) As to any person other than a natural person, in the manner provided in the rules of civil procedure as if a complaint or other pleading which institutes a civil proceeding had been filed; or

(4) Such service as the superior court may direct in lieu of personal service within this state.

(e) A person upon whom a demand is served pursuant to the provisions of this section shall comply with the terms thereof unless otherwise provided. Subject to the protections provided for in subsection (c) of this section relating to self incrimination, any person who, with intent to avoid, evade, or prevent compliance, in whole or in part, with any civil investigative demand under this section, removes from any place, conceals, withholds, or destroys, mutilates, alters, or by any other means falsifies any documentary material in the possession, custody, or control of any person subject of any demand, or knowingly conceals any relevant information, shall be fined not more than two thousand five hundred dollars ($2,500).

(f) If any person fails or refuses to file any statement or report, or obey any subpoena or investigative demand issued by the attorney general, the attorney general may file in the superior court of the county in which the person shall dwell or be found, or has his or her principal place of business, or of Providence county, if the superior court at the aforesaid county shall not be in session, or if the person is a nonresident or has no principal place of business in this state, or of the other county as may be agreed upon by the parties to the petition, and serve upon the person a petition for an order of the court for the enforcement of this section, and the petition may request and the court shall have jurisdiction to grant after notice and hearing, an order:

(1) Granting injunctive relief to restrain the person from engaging in the deceptive and/or fraudulent practice in the repair of motor vehicles or the conduct of any trade or commerce that is involved in the alleged or suspected violation;

(2) Vacating, annulling, or suspending the corporate charter of a corporation created by or under the laws of this state or revoking or suspending the certificate of authority to do business in this state of a foreign corporation or revoking or suspending any other licenses, permits, or certificates issued pursuant to law to the person which are used to further the allegedly unlawful practice; and

(3) Granting such other relief as may be required, until the person files the statement or report, or obeys the subpoena or investigative demand.

(g) Any final order so entered shall be subject to appeal to the state supreme court. Any disobedience of any final order entered under this section by any court shall be punished as a contempt thereof. ADD}

{ADD 5-58.3-6. Injunctive relief and civil penalties. -- ADD} {ADD (a) The superior court of this state shall have jurisdiction to prevent and restrain violations of this act. In addition to granting prohibitory injunctive and other restraints for a period of time and upon terms and conditions necessary to deter and insure against, the committing of future violations of this act, the court may grant injunctive relief reasonably necessary to dissipate the ill effects of the violation. The court may issue appropriate decrees upon consent and stipulation by the parties. The court may also issue restraining orders. Under no circumstances shall the state be required to post bond in any action hereunder.

(b) The attorney general may institute proceedings to prevent and restrain violations of this chapter as provided in subsection (a) of this section.

(c) Any person may institute proceedings for injunctive relief, temporary or permanent, as provided in subsection (a) of this section against threatened loss or damage to his or her property by a violation of this act. A preliminary injunction may be issued upon a showing that the danger of irreparable loss or damage is immediate and, within the court's discretion, the execution of property bond against damages for an injunction improvidently granted. If the court issues a permanent injunction, the plaintiff shall be awarded reasonable attorney's fees, filing fees, and reasonable costs of the suit. Reasonable costs for the suit may include but shall not be limited to the expenses of discovery and document production.

(d) In addition to injunctive relief authorized pursuant to subsection (a) of this section, any person, firm, corporation or other entity in violation of this act may be liable for a civil penalty in a suit by the attorney general of this state of not more than one thousand dollars ($1,000) for each violation. ADD}

{ADD 5-38.3-7. Severability. -- ADD} {ADD If any part or provision of this chapter or the application thereof to any person or circumstances be adjudged invalid by a court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision or application directly involved in the controversy in which such judgment shall have been rendered and shall not affect or impair the validity of the remainder of this act or the application thereof to other persons or circumstances. ADD}

SECTION 2. Section 31-5.1-4 of the General Laws is hereby amended to read as follows:

{ADD 31-5.1-4. Violations. -- ADD} (A) It shall be deemed a violation of this chapter for any manufacturer, or motor vehicle dealer to engage in any action which is arbitrary, in bad faith, or unconscionable and which causes damage to any of said parties or to the public.

(B) It shall be deemed a violation of this chapter for a manufacturer, or officer, agent or other representative thereof, to coerce, or attempt to coerce, any motor vehicle dealer:

(1) To order or accept delivery of any motor vehicle or vehicles, equipment, parts or accessories therefor, or any other commodity or commodities which such motor vehicle dealer has not voluntarily ordered.

(2) To order or accept delivery of any motor vehicle with special features, accessories or equipment not included in the list price of said motor vehicles as publicly advertised by the manufacturer thereof.

(3) To participate monetarily in an advertising campaign or contest, or to purchase any promotional materials, training materials, showroom or other display decorations or materials at the expense of the new motor vehicle dealership.

(4) To enter into any agreement with the manufacturer or to do any other act prejudicial to the new motor vehicle dealer by threatening to terminate or cancel a franchise or any contractual agreement existing between the dealer and the manufacturer; except that this subsection is not intended to preclude the manufacturer or distributor from insisting on compliance with the reasonable terms or provisions of the franchise or other contractual agreement, and notice in good faith to any new motor vehicle dealer of the new motor vehicle dealer's violation of such terms or provisions shall not constitute a violation of the chapter.

(5) To refrain from participation in the management of, investment in, or the acquisition of any other line of new motor vehicle or related products; provided, however, that this subsection does not apply unless the new motor vehicle dealer maintains a reasonable line of credit for each make or line of new motor vehicle, the new motor vehicle dealer remains in compliance with any reasonable facilities requirements of the manufacturer, and no change is made in the principal management of the new motor vehicle dealer.

(6) To prospectively assent to a release, assignment, novation, waiver or estoppel which would relieve any person from liability to be imposed by this law or to require any controversy between a new motor vehicle dealer and a manufacturer, distributor, or representative, to be referred to any person other than the duly constituted courts of this state or of the United States of America, or to the department of transportation, if such referral would be binding upon the new motor vehicle dealer.

(7) To order for any person any parts, accessories, equipment, machinery, tools or any commodities whatsoever.

(C) It shall be deemed a violation of this chapter for a manufacturer, or officer, agent or other representative thereof:

(1)(a) To refuse to deliver in reasonable quantities and within a reasonable time after receipt of dealer's order, to any motor vehicle dealer having a franchise or contractual arrangement for the retail sale of new motor vehicles sold or distributed by such manufacturer, any such motor vehicles as are covered by such franchise or contract specifically publicly advertised by such manufacturer to be available for immediate delivery; provided, however, the failure to deliver any motor vehicle shall not be considered a violation of this chapter if such failure be due to an act of God, work stoppage or delay due to a strike or labor difficulty, shortage of materials, freight embargo or other cause over which the manufacturer, distributor or wholesaler, or any agent thereof, shall have no control.

(b) To refuse to deliver or otherwise deny to any motor vehicle dealer having a franchise or contractual arrangement for the retail sale of new motor vehicles sold or distributed by such manufacturer any particular new motor vehicle model made or distributed by such manufacturer under the name of the division of said manufacturer of which said dealer is an authorized franchise.

It shall be deemed a prima facie violation of this chapter for any automotive vehicle division manufacturer to require any separate franchise or contractual arrangement with any new motor vehicle dealer already a party to a franchise or contractual arrangement with such automotive vehicle division for the retail sale of any particular new motor vehicle model made or distributed by such division of such manufacturer.

(2) To coerce, or attempt to coerce, any motor vehicle dealer to enter into any agreement with such manufacturer, or officer, agent or other representative thereof, or to do any other act prejudicial to said dealer by threatening to cancel any franchise or any contractual agreement existing between such manufacturer, and said dealer; provided, however, that notice in good faith to any motor vehicle dealer of said dealer's violation of any terms or provisions of such franchise or contractual agreement shall not constitute a violation of this chapter.

(3) To resort to or use any false or misleading advertisement in connection with his business as such manufacturer, or officer, agent or other representative thereof.

(4)(a) To sell or lease any new motor vehicle to, or through, any new motor vehicle dealer at a lower actual price therefore than the actual price offered to any other new motor vehicle dealer for the same model vehicle similarly equipped or to utilize any device including but not limited to, sales promotion plans or programs which result in such lesser actual price; provided, however, that the provisions of this paragraph shall not apply to sales to a new motor vehicle dealer for resale to any unit of the United States government, the state or any of its political subdivisions.

(b) To sell or lease any new motor vehicle to any person, except a manufacturer's employee at a lower actual price therefor than the actual price offered and charged to a new motor vehicle dealer for the same model vehicle similarly equipped or to utilize any device which results in such lesser actual price; provided, however, that the provisions of this paragraph shall not apply to sales to a new motor vehicle dealer for resale to any unit of the United States government the state or any of its political subdivisions.

(c) To offer in connection with the sale of any new motor vehicle or new motor vehicles directly or indirectly to a fleet purchaser within or without this state terms, discounts, refunds or other similar types of inducements to that purchaser without making the same offer or offers available to all of its new motor vehicle dealers in this state. No manufacturer may impose or enforce any restrictions against new motor vehicle dealers in this state or their leasing, rental or fleet divisions or subsidiaries that is not imposed or enforced against any other direct or indirect purchaser from such manufacturer, provided, however, that the provisions of this paragraph shall not apply to sales to a new motor vehicle dealer for resale to any unit of the United States government the state or any of its political subdivisions.

(5) To offer to sell or to sell parts or accessories to any new motor vehicle dealer for use in his own business for the purpose of repairing or replacing the same or a comparable part or accessory, at a lower actual price therefor than the actual price charged to any other new motor vehicle dealer for similar parts or accessories to use in his own business; provided, however, in those cases where new motor vehicle dealers operate or serve as wholesalers of parts and accessories to retail outlets nothing herein contained shall be construed to prevent a manufacturer, or any agent thereof, from selling to a new motor vehicle dealer who operates and services as a wholesaler of parts and accessories, such parts and accessories as may be ordered by such new motor vehicle dealer for resale to retail outlets, at a lower actual price than the actual price charged a new motor vehicle dealer who does not operate or serve as a wholesaler of parts and accessories.

(6) To prevent or attempt to prevent by contract or otherwise any new motor vehicle dealer from changing the capital structure of his dealership or the means by which or through which he finances the operation of his dealership, provided the new motor vehicle dealer at all times meets any reasonable capital standards agreed to between the dealership and the manufacturer, and provided such change by the new motor vehicle dealer does not result in a change in the executive management control of the dealership.

(7) To prevent or attempt to prevent by contract or otherwise any new motor vehicle dealer or any officer, partner or stockholder of any new motor vehicle dealer from selling or transferring any part of the interest of any partner or stockholder of any motor vehicle dealer from selling or transferring any part of the interest of any of them to any other person or persons or party or parties; provided, however, that no dealer, officer, partner or stockholder shall have the right to sell, transfer or assign the franchise or power of management or control thereunder without the consent of the manufacturer, except that such consent shall not be unreasonably withheld.

(8) To obtain money, goods, services, anything of value, or any other benefit from any other person with whom the new motor vehicle dealer does business, on account of or in relation to the transactions between the dealer and said other person, unless such benefit is promptly accounted for and transmitted to the new motor vehicle dealer.

(9) To compete with a new motor vehicle dealer operating under an agreement or franchise from such manufacturer in the relevant market area, such area to be determined exclusively by equitable principles; provided, however, that a manufacturer shall not be deemed to be competing when operating a dealership either temporarily for a reasonable period in any case not to exceed one (1) year or in a bona fide relationship in which an independent person had made a significant investment subject to loss in the dealership and can reasonably expect to acquire full ownership of said dealership on reasonable terms and conditions .

(10) To refuse to disclose to any new motor vehicle dealer, handling the same line make, the manner and mode of distribution of that line make within the relevant market area.

(11) To increase prices of new motor vehicles which the new motor vehicle dealer had ordered for private retail consumers prior to the new motor vehicle dealer's receipt of the written official price increase notification. A sales contract signed by a private retail consumer shall constitute evidence of each such order provided that the vehicle is in fact delivered to that customer. In the event of manufacturer price reductions or cash rebates paid to the new motor vehicle dealer, the amount of any such reduction or rebate received by a new motor vehicle dealer shall be passed on to the private retail consumer by the new motor vehicle dealer. Price reductions shall apply to all vehicles in the dealer's inventory which were subject to the price reduction. Price differences applicable to new model or series motor vehicles at the time of the introduction of new models or series shall not be considered a price increase or price decrease. Price changes caused by either: (a) the addition to a motor vehicle of required or optional equipment; or (b) revaluation of the United States dollar, in the case of foreign-make vehicles or components; or (c) an increase in transportation charges due to increased rates imposed by common carriers shall not be subject to the provisions of this subsection.

(12) To release to any outside party, except under subpoena or as otherwise required by law or in an administrative, judicial or arbitration proceeding involving the manufacturer or new motor vehicle dealer, any business, financial, or personal information which may be from time-to-time provided by the new motor vehicle dealer to the manufacturer, without the express written consent of the new motor vehicle dealer.

(13) To unfairly discriminate among its new motor vehicle dealers with respect to warranty reimbursement.

(14) To unreasonably withhold consent to the sale, transfer, or exchange of the franchise to a qualified buyer capable of being licensed as a new motor vehicle dealer in this state.

(15) To fail to respond in writing to a request for consent as specified in subsection (14) above within sixty (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 therein. Such failure to respond shall be deemed to be consent to the request.

(16) To unfairly prevent a new motor vehicle dealer from receiving fair and reasonable compensation for the value of the new motor vehicle dealership.

(17) To require that a new motor vehicle dealer execute a written franchise agreement that does not contain substantially the same provisions as the franchise agreement being offered to other new motor vehicle dealers handling the same line make. In no instance, shall the term of said franchise agreement be of a duration of less than three (3) years.

(18) To require that a new motor vehicle dealer provide exclusive facilities, personnel, or display space.

(19) To require that a dealer expand facilities without a guarantee of a sufficient supply of new motor vehicles to justify such an expansion or to require that a dealer expand facilities to a greater degree than is necessary to sell and service the number of vehicles that said dealer sold and serviced in the most recent calendar year.

(20) To prevent a dealer from adjusting his facilities to permit a relocation of office space, showroom space, and service facilities so long as the relocation is within 500 yards of the present location.

(21) To engage in any predatory practice against a new motor vehicle dealer.

(D) It shall be a violation of this chapter for a manufacturer to terminate, cancel, or fail to renew the franchise of a new motor vehicle dealer except as provided in this subsection:

(1) Notwithstanding the terms, provisions or conditions of any franchise, whether entered into before or after the enactment of this chapter or any of its provisions, or notwithstanding the terms or provisions of any waiver, whether entered into before or after the enactment of this chapter or any of its provisions, no manufacturer shall cancel, terminate or fail to renew any franchise with a licensed new motor vehicle dealer unless the manufacturer has:

(a) satisfied the notice requirement of paragraph (4) herein; and(b) has good cause for the cancellation, termination or nonrenewal; and has not committed any violations set forth in subsection B of this section; and

(c) has acted in good faith as defined in this chapter and has complied with all provisions of this chapter.

(2) Notwithstanding the terms, provisions or conditions of any franchise or the terms or provisions of any waiver, good cause shall exist for the purposes of a termination, cancellation or nonrenewal when:

(a) There is a failure by the new motor vehicle dealer to comply with a provision of the franchise which provision is both reasonable and of material significance to the franchise relationship, provided that the dealer has been notified in writing of the failure within one hundred eighty (180) days after the manufacturer first acquired knowledge of such failure.

(b) If the failure by the new motor vehicle dealer, defined in (a) hereinabove, relates to the performance of the new motor vehicle dealer in sales or service, then good cause shall be defined as the failure of the new motor vehicle dealer to comply with reasonable performance criteria established by the manufacturer if the new motor vehicle dealer was apprised by the manufacturer in writing of such failure; and

(i) said notification stated that notice was provided of failure of performance pursuant to section (a) of this subsection; and

(ii) the new motor vehicle dealer was afforded a reasonable opportunity, for a period of not less than six (6) months, to comply with such criteria; and

(iii) the new motor vehicle dealer did not demonstrate substantial progress towards compliance with the manufacturer's performance criteria during such period.

(3) The manufacturer shall have the burden of proof for showing that the notice requirements have been complied with, that there was good cause for the franchise termination, cancellation or nonrenewal, and that the manufacturer has acted in good faith.

(4) Notification of termination, cancellation and nonrenewal.

(a) Notwithstanding the terms, provisions or conditions of any franchise, prior to the termination, cancellation or nonrenewal of any franchise, the manufacturer shall furnish notification of such termination, cancellation or nonrenewal to the new motor vehicle dealer as follows:

(i) in the manner described in section (D)(4)(b) of this subsection; and

(ii) not less than ninety (90) days prior to the effective date of such termination, cancellation or nonrenewal; or

(iii) not less than fifteen (15) days prior to the effective date of such termination, cancellation or nonrenewal for any of the following reasons;

(aa) insolvency of the new motor vehicle dealer, or filing of any petition by or against the new motor vehicle dealer under any bankruptcy or receivership law;

(bb) failure of the new motor vehicle dealer to conduct his customary sales and service operations during his customary business hours for seven (7) consecutive business days;

(cc) final conviction of the new motor vehicle dealer, or any owner or operator thereof, of a crime which is associated with or related to the operation of said dealership;

(dd) revocation of any license which the new motor vehicle dealer is required to have to operate a dealership;

(iv) not less than one hundred eighty (180) days prior to the effective date of such termination or cancellation where the manufacturer or distributor is discontinuing the sale of the product line.

(b) Notification under this section shall be in writing, shall be by certified mail or personally delivered to the new motor vehicle dealer, and shall contain;

(i) a statement of intention to terminate, cancel or not to renew the franchise; and

(ii) a statement of the reasons for the termination, cancellation or nonrenewal; and

(iii) the date on which such termination, cancellation or nonrenewal shall take effect.

(5) Payments.

(a) Upon the involuntary or voluntary termination, nonrenewal or cancellation of any franchise, by either the manufacturer or the new motor vehicle dealer, notwithstanding the terms of any franchise whether entered into before or after the enactment of this chapter or any of its provisions, the new motor vehicle dealer shall be allowed fair and reasonable compensation by the manufacturer for the following:

(i) new motor vehicle inventory which has been acquired from the manufacturer;

(ii) supplies and parts which have been acquired from the manufacturer;

(iii) equipment and furnishings, provided the new motor vehicle dealer purchased the same from the manufacturer or its approved sources; and

(iv) special tools.

Such fair and reasonable compensation for the above shall in no instance be less than the acquisition price and shall be paid by the manufacturer within ninety (90) days of the effective date of the termination, cancellation or nonrenewal, provided the new motor vehicle dealer has clear title to the inventory and other items and is in a position to convey that title to the manufacturer.

(b) In the event the termination, cancellation or nonrenewal is involuntary and,

(i) the new motor vehicle dealer is leasing the dealership facilities from a lessor other than the manufacturer, the manufacturer shall pay the new motor vehicle dealer a sum equivalent to the rent for the unexpired term of the lease or one (1) year's rent, whichever is less, or

(ii) if the new motor vehicle dealer owns the facilities, the manufacturer shall pay the new motor vehicle dealer a sum equivalent to the reasonable rental value of the facilities for one (1) year.

(iii) the new motor vehicle dealer is unable to reasonably utilize the facilities for another purpose, and

(iv) the new motor vehicle dealer, or the manufacturer acting as his agent, is unable to make arrangements for the cancellation or assumption of its lease obligations by another party in the case of leased facilities, or sell owned facilities, and

(v) only to the extent such facilities were required as a condition of the franchise and used to conduct sales and service operations related to the franchise product.

(c) In addition to any injunctive relief and any other damages allowable by this chapter, if the manufacturer fails to prove that there was good cause for the termination, cancellation or nonrenewal or if the manufacturer fails to prove that the manufacturer acted in good faith, then the manufacturer shall pay the new motor vehicle dealer fair and reasonable compensation for the value of the dealership as an ongoing business.

(E) It shall be deemed a violation of this chapter for a motor vehicle dealer:

(1) To require a purchaser of a new motor vehicle, as a condition of sale and delivery thereof, to also purchase special features, equipment, parts or accessories not desired or requested by the purchaser; provided, however, that this prohibition shall not apply as to special features, equipment, parts or accessories which are already installed on the car before sale by the dealer.

(2) To represent and sell as a new motor vehicle any motor vehicle which is a used motor vehicle.

(3) To resort to or use any false or misleading advertisement in connection with his business as such motor vehicle dealer.

{ADD (4) To engage in any deception or fraudulent practice in the repair of motor vehicles. ADD}

SECTION 3. This act shall take effect upon passage.