President’s Message By Jared Wyrick The 60-day regular legislative session began with an extraordinary session to help secure the largest investment in the state’s history. The specific intent of the package of bills addressed during the special session helped clinch the announced $2.7 billion Nucor investment in Mason County and the Northern Panhandle. The project is expected to bring about 1,000 construction jobs and 800 full-time jobs with benefits. The West Virginia Legislature adjourned Saturday, March 12, at midnight, having completed 293 bills, including all three WVADA priority bills, a budget bill, and an economic package to recruit new businesses and create hundreds of jobs. WVADA Priority Bills H.B. 4560 – Relating generally to motor vehicle dealers, distributors, wholesalers, and manufacturers, was our number one priority bill this session, and passed both chambers overwhelmingly. The bill was signed by the Governor and takes effect on June 10, 2022. This bill updates West Virginia’s current franchise law by doing the following: • Clarifies that this article of the West Virginia Code governs all agreements addressed in the article to modernize and acknowledge that dealers now sign numerous agreements, rather than just a single Sales and Service Agreement. • Further clarifies what it means to engage in the operation and business of a new motor vehicle dealership. • Clarifies that a dealership is entitled to be reimbursed by a manufacturer for diagnostic time on warranty and recall work, considering the complexity of the modern motor vehicle, including any assistance with over-the-air updates. • Allows a new motor vehicle dealer to submit a single set of repair orders for the purpose of calculating both the labor and parts mark-up, or a dealer may submit separate sets of repair orders for a labor rate and parts mark-up calculation. • Given the increase in manufacturer sales and service audits, it sets forth a procedure clarifying the procedure to be used by the manufacturer and motor vehicle dealer. • Provides additional protections for motor vehicle dealers for too frequent unreasonable image and facility mandates from manufacturers. Increases a dealer’s rights to such mandates from 10 to 15 years. • Prohibits a manufacturer from using motor vehicles in transit to count against a dealer’s sales effective or efficiency formula. The vehicle must be in the dealer’s physical possession. Legislative Wrap Up – 2022 Regular Session wvcar.com 6 WVADA
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