By JARED WYRICK, President, WVADA PRESIDENT’S MESSAGE Legislative Wrap-Up T he 60-day legislative session has concluded, and all WVADA-supported bills passed! A special thank you to all dealers who attended committee hearings and reached out to their local representatives on behalf of WVADA’s legislative agenda. WVADA’s number one priority bill this session — SB 173: Modifying certain guidelines for motor vehicle dealers, distributors, wholesalers, and manufacturers, otherwise known as our franchise bill — has been signed by the governor and will take effect June 5, 2024. Senator Rupie Phillips was the lead sponsor of our franchise bill this session, and he absolutely delivered every step of the way. “The dealer franchise model has proven time and time again that it is the absolute best model for consumers,” said Phillips. “I was honored to be the lead sponsor and appreciate the local economic impacts franchise dealers bring to their communities.” Here’s a brief summary of SB 173: • Clarifies the timeline for manufacturers to dispute the motor vehicle dealer’s request for adjustment to parts and labor rates. • Clarifies that the 15-year period on dealer facilities applies to any subsequent dealer who obtains ownership. • Prohibits a manufacturer from amending the dealer agreement without the motor vehicle dealer’s consent. • Clarifies a manufacturer obligation to provide a dealer with all of its makes and models, regardless of whether the model is electric, hybrid, gas or other means of propulsion. • Prohibits a manufacturer from exercising a right of first refusal when a motor vehicle dealer enters into a transaction to sell. • Clarifies that a manufacturer may not interfere with or prejudice a dealer to set his own prices, trade-in values, financing terms and the price of voluntary protection products. • Prohibits a manufacturer from treating a franchised motor vehicle dealer as simply an agent for the manufacturer as it relates to the sale and lease of motor vehicles. Other WVADA Bills of Interest That Passed HB 5178 permits dealers to utilize the Insurance Verification System (IVS) to verify a consumer’s insurance in real-time. This system can be tied to the current Vehicles Registration System (VRS) which is the system that is administered by the DMV and currently utilized by every WV dealership. This bill will help assist dealerships and their employees with the verification of customers insurance, especially after hours and on weekends. Permitting car dealerships in this state to utilize a search engine to determine if buyers of vehicles have valid vehicle insurance will save time and assist in streamlining customer experience. SB 583 caps damages in a personal injury or wrongful death claim arising out of a vehicular accident with a commercial motor vehicle. Under current law, there is no cap on any type of damages in a personal injury or wrongful death claim involving a commercial motor vehicle. This bill places a $5 million cap on noneconomic damages against an employer defendant. Of note, WVADA News 6
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