This Act clarifies portions of Chapter 49 of Title 6 and Chapter 63 of Title 21 of the Delaware Code pertaining to motor vehicle dealers. These additions and modifications are intended to further improve our State’s franchise laws and ensure that Delaware consumers have a stable, reliable, convenient, and competitive retail network for automobile sales and service. This Act is an effort to continue to ensure that the relationship between dealers and the manufacturers and distributors is as fair and equitable as possible and provides the highest level of consumer protection. The Act includes the following provisions: Definition Clarifications. The Act clarifies the definitions of “motor vehicle”, “new motor vehicle” and “dealer” to reflect technological advances and changes in industry business practices in the state. The Act also recognizes the limited circumstances issuance of a dealer license to a direct-selling electric motor vehicle manufacturer in 2023. Further, the Act defines motor vehicle selling activities that require licensing and regulation by the state. Fair Compensation for Required Repairs. Dealers are required by contract to perform warranty work for manufacturers. The Act ensures that dealers are fairly paid for performing manufacturer-directed repairs related to warranty repairs, maintenance programs and recall work. Intrusive Audits. Dealers are required by existing law to wait up to 30 days for payment for motor vehicle warranty repairs in order to allow the manufacturer to review and approve payment submissions. Manufacturers are also allowed to later audit such repairs and payments. The Act affords manufacturers a full 6 months to audit warranty claims but will reasonably prevent intrusive and time-consuming audits after 180 days, unless the audit involves cases of alleged fraud. Franchise Termination Compensation. Under existing law, manufacturers must repurchase certain motor vehicles, parts and special tools in the event of the termination of the dealer’s franchise agreement. The Act specifies a 90-day timeframe for payment and clarifies that it is the manufacturer’s responsibility to cover the cost of returns. Return of Unnecessary Tools & Equipment. The Act allows a dealer a limited opportunity to return and be reimbursed for the cost of certain tools and equipment that were required as a part of an electric vehicle program or agreement between that dealer and the manufacturer, if the dealer determines within two years after receipt that such tools and equipment are unnecessary or that sales volume and utilization are low enough to prevent the dealer from realizing a reasonable return on those forced investments. Sale & Subscription of Over-the-Air Features. The Act allows manufacturers to directly sell options, add-ons, features, improvements and upgrades by remote transmission to consumers, provided that the dealers are afforded an equal opportunity to sell the same products and services, and further provided that the manufacturer reasonably compensates the dealer for direct sales or subscriptions to the dealer’s customers for a specified period of time. Association Standing. Franchise laws have been enacted in all 50 states to recognize compelling state interests in protecting consumers and in regulating the disparity in bargaining power between motor vehicle manufacturers and their franchised dealers. Since dealers have a single source for their new motor vehicles, parts and accessories, many are reluctant to raise a single voice to object to unlawful activity by their manufacturer. The Act grants statutory standing to a large association of dealers to bring a legal action, in very limited circumstances, to ensure compliance with applicable law. Licensing. The Act provides that a manufacturer or distributor who was licensed as a motor vehicle dealer on or before May 15, 2023 is not eligible to receive any additional licenses. The Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. The Act is supported by the Delaware Automobile and Truck Dealers’ Association, Inc.
Sponsored bills
This Concurrent Resolution designates April 24, 2024, as "4-H Day" in the State of Delaware and calls upon Delaware's citizens to recognize the many contributions of the State's 4-H programs.
This Senate Concurrent Resolution recognizes the 80th Anniversary of the Sussex Conservation District and its commitment to provide technical guidance and financial assistance to enhance, maintain, protect, and improve land and water resources.
This Resolution pays tribute to the men and women of the Delaware National Guard for their service and sacrifices in support of defending our state and nation, and recognizes the outstanding advocacy provided by the National Guard Association of Delaware.
This Concurrent Resolution observes April 2024, as the "2024 Month of the Military Child" in the State of Delaware.
This Senate Concurrent Resolution recognizes April 18, 2024, as "National Line Worker Appreciation Day" in the State of Delaware.
This bill adds optometrists to those health care providers eligible for the Health Care Provider Loan Repayment Program.
This Act expands the crime of “criminal mischief” to include damaging an authorized emergency vehicle, defining them as vehicles of a fire department, fire company, police vehicles, ambulances, as well as vehicles used by a fire chief, chief engineer, or fire police officer of any duly organized fire company in performance of their duties. This Act also makes it a class E felony when the person intentionally damages an authorized emergency vehicle.
The Constitution of the State of Delaware creates 3 branches of State Government, the Legislative, Executive, and Judiciary, each having certain delineated responsibilities or powers within a framework that limits and separates the powers of each branch from the other. The doctrine of separation of powers is a fundamental part of constitutional government. The Justices of the Delaware Supreme Court have, in quoting William Blackstone, recognized that "whenever the [legislative and executive] powers are united together, there can be no public liberty". In re Request of Governor for Advisory Opinion, 722 A. 2d 307 (1998). This Act's purpose is to require the legislative branch to reasonably restrict or confirm the executive branch in its exercise of emergency powers, thereby maintaining a balance or separation of powers between the executive and legislative branches of state government. This Act recognizes the statutory authority of the Governor to act in the event of an emergency or disaster. During protracted emergencies and disasters, particularly those lasting more than 180 days, good governance requires participation by the General Assembly in person or virtually to approve extensions of Emergency Orders. This approval requirement may be waived only when it is not possible for both houses of the General Assembly in person or virtually to convene a quorum. The Governor retains the authority to terminate Emergency Orders without approval when the emergency or disaster has passed. Any new non-weather related emergency order issued within 6 months of the termination of a prior order and based upon substantially similar reasons shall be invalid unless approved by the General Assembly. Additionally, any non-weather related emergency order that requires the closure of any business, industry, religious, or non-profit facility must specifically delineate which type of business or facilities are to be closed. The time limits proposed by this Act are similar to those limits applicable to emergency regulations under the Administrative Procedures Act, 29 Del. C. § 10119. This Act shall become effective immediately upon the ending of the Governor's term of office next occurring after the enactment of this Act.
This Act establishes a residential drinking water purification system program to be administered through the Department of Health and Social Services.