House advances changes to auto‑franchise rules to give dealers earlier market data

The Utah House voted to pass first substitute House Bill 149, which adjusts the automobile franchise act to require manufacturers to provide more detailed market information earlier in the notice process when a new dealer is proposed. The bill passed by recorded vote 57‑6 and will be forwarded to the Senate.

Sponsor Representative Curtis said the bill requires franchisors (manufacturers) to provide the board and each franchisee in the relevant market area with economic data, motor‑vehicle registration data, market‑penetration and demographic information and written documentation used to justify opening a new dealership. Curtis described the change as a timing and transparency fix so existing dealers can make a more informed decision about whether to protest a proposed new dealer.

Curtis said the bill includes exceptions in subsection 3(c) so manufacturers would not be required to disclose privileged documents, proprietary information, materials protected by privacy law, or certain correspondence among franchisors and existing franchisees. He described the measure as a negotiated compromise reached with manufacturers and dealers after meetings during drafting.

Questions from floor members focused on whether the change would stifle competition; the sponsor said the change was not intended to do so but to provide existing dealers with earlier information to determine whether to contest a new location. After floor discussion the House adopted the first substitute by roll call.

What happens next

HB 149 will be sent to the Utah Senate. If enacted, the law would shift the timeline and information disclosure around dealer‑location notices and hearings; exceptions for privileged or privacy‑protected materials remain in the text for manufacturers.