VADA Pushes Streamlining of Buy/Sell Transactions in Virginia General Assembly Bill on the Way to Governor’s Desk for Signing into Law VVADA’s 2024 legislative agenda was far lighter than in 2023 when we achieved historic franchise system protections. But we did introduce and advocate for an important bill to help entrepreneurial dealers buy and sell their businesses in a more straightforward manner. When it comes to buying or selling an auto dealership, Virginia’s existing statute was intended to create more predictable and objective transaction approvals. But manufacturers often delay or oppose dealership sales due to a lack of clarity in existing law. The bills VADA introduced and supported will: • Make dealership buy/sells more predictable, giving OEMs 60 days to object to a sale upon notification of a transaction and ending what can often become a lengthy transactional process by eliminating any misunderstanding around time limits. The bill requires dealers to include only specific, identified information about the sale. This notice starts the 60-day clock for approval. By specifying what the notice must include, OEMs will not be able to delay by claiming they still need more information about the sale. • Make the process more objective, limiting review of a proposed buyer’s experience as an objective measure of their years in the business, as opposed to subjective measures a manufacturer may attempt to use improperly. As of publication, both bills have passed and are headed to Gov. Glenn Youngkin’s desk for signing into law. VADA thanks Delegate Terry Austin (R-37th/Buchanan) for carrying House Bill 191 and Senator Lamont Bagby (D-14th/ Henrico) for carrying the identical Senate Bill 534. Virginia dealers on the steps of the new Virginia General Assembly Building in Richmond at Dealer Day at the Capitol, held Jan. 24, 2024. 26 Virginia Auto Dealer
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