MOTOR VEHICLE FRANCHISE-SALES
Summary
Amends the Motor Vehicle Franchise Act. Provides that it shall be deemed a violation for a manufacturer, a distributor, a wholesaler, or other specified entity to distribute new motor vehicles directly to consumers or to circumvent franchise distribution obligations under the Act. Provides that it shall be deemed a violation for any manufacturer with an established franchise dealer network in the State to engage in the sale, lease, or servicing of new motor vehicles in a manner that bypasses or competes with the manufacturer's existing franchisee network. Makes conforming and other changes. Defines terms.
Bill status
passed
3 of 5 stages cleared
Introduction
Apr 2025
Committee Review
Mar 2026
Senate Passage
Apr 2025
House Passage
Governor
Introduced Apr 10, 2025
Last action Jun 22, 2026
Maddy AI version diff · 1 comparison
What changed between versions
Introduced
→
Engrossed
·
5 edits
·
Apr 10, 2025
MODERATE
The bill was amended to clarify definitions and expand protections for existing franchise dealers. The changes remove ambiguous language regarding corporate entities and add specific definitions for 'factory repurchase vehicles' and 'late model vehicles' to prevent manufacturers from bypassing franchise rules by selling these specific cars directly to consumers.
Scope change
The bill's scope remains focused on the Motor Vehicle Franchise Act, but the applicability is tightened by explicitly defining which vehicles are subject to franchise restrictions and clarifying which corporate structures count as manufacturers.
DEFINITION
Removed complex language about parent companies and affiliates from the 'Manufacturer' definition to eliminate ambiguity about who is subject to the law.
Added a new definition for 'Factory repurchase vehicle' to ensure cars bought back from fleets or returned due to defects are still sold through franchise dealers.
Added a new definition for 'Late model vehicle' to clarify that current and recent model year cars must be sold through established franchise networks.
Added a new definition for 'Person' to explicitly include officers and directors in active control of corporate entities.
Expanded the definition of 'Fraud' to include intentional failures to disclose material facts and promises not made in good faith.
Floor votes · Senate Apr 10, 2025
How they voted
54–0
Passed · 4 other
Total votes 58
Apr 10, 2025
D
Democratic39
92% Yea
R
Republican19
94% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
50
Key actions
4
Committee
10
Amendments
8
Mar 20, 2026
Committee
Re-assigned to Rules Committee
lower
Mar 18, 2026
Committee
Assigned to Judiciary - Civil Committee
lower
May 9, 2025
Committee
Rule 19(a) / Re-referred to Rules Committee
lower
Apr 17, 2025
Committee
Assigned to Judiciary - Civil Committee
lower
Apr 11, 2025
Committee
Referred to Rules Committee
lower
Apr 10, 2025
Introduced
Arrived in House
lower
Apr 10, 2025
Upper · Passed
Third Reading - Passed; 055-000-000
upper
Apr 10, 2025
Upper · Passed
Senate Floor Amendment No. 2 Adopted; Villivalam
upper
Apr 10, 2025
Upper · Passed
Senate Floor Amendment No. 1 Adopted; Villivalam
upper
Apr 9, 2025
Introduced
Senate Floor Amendment No. 2 Recommend Do Adopt Judiciary; 008-000-000
upper
Apr 9, 2025
Introduced
Senate Floor Amendment No. 1 Recommend Do Adopt Judiciary; 008-000-000
upper
Apr 9, 2025
Introduced
Senate Floor Amendment No. 2 Assignments Refers to Judiciary
upper
Apr 9, 2025
Committee
Senate Floor Amendment No. 2 Referred to Assignments
upper
Apr 9, 2025
Introduced
Senate Floor Amendment No. 2 Filed with Secretary by Sen. Ram Villivalam
upper
Apr 8, 2025
Introduced
Senate Floor Amendment No. 1 Assignments Refers to Judiciary
upper
Apr 4, 2025
Committee
Senate Floor Amendment No. 1 Referred to Assignments
upper
Apr 4, 2025
Introduced
Senate Floor Amendment No. 1 Filed with Secretary by Sen. Ram Villivalam
upper
Mar 19, 2025
Upper · Passed
Do Pass Judiciary; 009-000-000
upper
Mar 12, 2025
Committee
Assigned to Judiciary
upper
Feb 6, 2025
Committee
Referred to Assignments
upper
2 primary · 18 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Larry Walsh
DDemocratic
P
Ram Villivalam
DDemocratic
Co
Andrew Chesney
RRepublican
Co
Celina Villanueva
DDemocratic
Co
Chris Balkema
RRepublican
Co
Cristina Castro
DDemocratic
Co
Dave Koehler
DDemocratic
Co
Don DeWitte
RRepublican
Co
Javier Cervantes
DDemocratic
Co
Jay Hoffman
DDemocratic
Co
Kimberly Lightford
DDemocratic
Co
Laura Murphy
DDemocratic
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