House OKs dealer relief measure, citing harms from automaker restructurings

Lawmakers on March 9 approved Senate Bill 157, which provides certain remedies for motor-vehicle dealers whose franchises were terminated amid automaker restructurings. The sponsor told the House the bill "enacts a provision authorizing a reinstated franchisee to resume operating as a franchisee under certain circumstances" and creates a private cause of action to seek damages after arbitration.

Members described the chapter of events that spurred the legislation: several dealerships were closed following GM and Chrysler restructurings, costing local small businesses and communities jobs and charitable support. The sponsor pointed to a Wall Street Journal account and said dealers invested "millions and millions of dollars" in facilities and were damaged by abrupt terminations.

During Q&A, members asked about a 90‑day notice provision in the amended bill and whether the language targeted Chrysler rather than General Motors. The sponsor said General Motors dealerships had been largely reinstated and that the amendment was principally aimed at circumstances involving short notice and rapid termination. Some members expressed concern about the bill applying to a single business entity or relying on arbitration outcomes; supporters replied it is consistent with remedies adopted in other states and is designed to provide some relief to dealers who prevail in arbitration.

The House voted to pass SB157 by a recorded voice announcement in the transcript; the roll-call is recorded in the chamber as 72 yes and 0 no. The bill was returned to the Senate for signature.