HB444 Alabama 2015 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2015

Title

Motor vehicles, powersports vehicles, to regulate manufacturer's and dealer's agreement, Sec. 8-20-2 am'd.

Summary

HB444 would require powersports vehicle manufacturers, distributors, and dealers in Alabama to use signed dealer agreements and establish rules for sales, termination, transfers, and warranties, while expanding protections for dealers and consumers.

What This Bill Does

It mandates that manufacturers, distributors, and dealers may not sell powersports vehicles without a signed dealer agreement. It defines key terms, lays out unfair trade practices, and sets standards for how agreements can be terminated, canceled, modified, or nonrenewed, including required notices and compensation to dealers. It introduces rules for repurchasing inventory, transferring ownership or succession, and the obligations of warrantors, including warranty compensation and audits. It also amends the Alabama Motor Vehicle Franchise Act (8-20-2) to clarify scope and applicability and sets a June 1, 2015 effective date for these provisions.

Who It Affects

• Powersports vehicle dealers in Alabama: must obtain and operate under signed dealer agreements, are protected by minimum fair dealing standards, and may receive compensation and repurchase terms when their agreements end.
• Manufacturers and distributors of powersports vehicles: must enter dealer agreements, adhere to good-faith and fair-dealing requirements, provide warranty schedules and compensation, and follow enhanced notice and transfer procedures.

Key Provisions

• Section 3: After June 1, 2015, a powersports dealer cannot sell vehicles without a signed dealer agreement; both parties must sign.
• Section 4: Establishes unfair and deceptive trade practices and enumerates prohibited actions (coercion, discriminatory allocations, improper pricing, etc.).
• Section 5: Sets procedures for termination, cancellation, nonrenewal, or noncontinuance of dealership agreements, including notice requirements, good-faith standards, and fair compensation for inventory, parts, and tools upon termination.
• Section 6: Requires warrantors to specify dealer obligations, compensate dealers for warranty-related work, provide compensation schedules, allow warranty audits, and permit timely claim approvals or disapprovals.
• Section 7: Allows civil actions for damages related to violations, with a two-year statute of limitations.
• Section 8: Amends Section 8-20-2 to tailor the Franchise Act’s applicability to powersports, including carve-outs and scope limitations.
• Section 9: Specifies that the act applies to dealer agreements entered into on or after June 1, 2015, with related transitional provisions.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles