MaineLD 2104132nd Maine Legislature (2025-2026)House

An Act to Clarify Contractual Rights of Personal Sports Mobile Dealers

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 8 benefits, 0 costs, 0 mixed.

Dealers can challenge harmful contract changes

Manufacturers must give 90 days’ written notice by certified mail before franchise changes that substantially harm dealers’ rights, duties, or investments. Changes required by law are exempt. Dealers can protest within 90 days after receiving notice or after a manufacturer threatens or attempts the change. Manufacturers must prove good cause, and the change cannot take effect while the decision is pending. Dealers count as winners for attorney-fee purposes when a judgment or final order in the same case grants court-ordered equitable relief.

Dealers get help with renovation costs

Before requiring major renovations, manufacturers must give written assurance of enough vehicle supply to justify expansion under current market conditions. If they require a specific product or service provider, they must repay at least 55% of that provider’s cost. Dealers can use an approved provider offering a substantially similar product or service; approval cannot be unreasonably withheld. Manufacturers must provide a dealer-specific economic analysis on request, but it does not guarantee a return on investment. Required major renovations are limited to once every 10 years, with existing health, safety, zoning, technology, and intellectual-property limits retained.

Dealers protected from manufacturer competition

Manufacturers face limits on competing with their own Maine personal sports mobile dealers within the dealers’ relevant market areas. Those areas are determined only through Maine’s legal principles of fairness. An exception allows a temporary manufacturer-run dealership for a reasonable period of no more than 1 year. Another allows an independent owner with a significant investment at risk who reasonably expects full ownership on reasonable terms.

Fairer inventory and pricing for dealers

Manufacturers must fairly allocate each model to new Maine personal sports mobile dealers established under the law’s dealer-establishment rules. Manufacturers must prove their allocation system is fair and provide products in reasonable quantities and timeframes without discrimination. They cannot charge one dealer less than another for the same similarly equipped new model. This includes discounts created through renovation, market-share, sales-promotion, or similar programs. Exceptions remain for specified federal-government sales and offers made to all dealers at the same price.

Fairer warranty repair pay for dealers

For required or allowed warranty and recall work, manufacturers must pay Maine personal sports mobile dealers their usual retail parts rate. For manufacturer-supplied parts, they must pay the difference between dealer cost and full retail price. That difference cannot be less than the cost of a matching part already in the dealer’s inventory. Labor pay covers actual time, including reasonable, recorded diagnostic time, at no less than the usual non-warranty retail rate. Dealers must follow their time manual and post their non-warranty labor rate where service customers can see it. Manufacturers cannot restrict parts or labor in ways that prevent competent repairs meeting generally accepted standards.

Faster warranty claim payments for dealers

Manufacturers must approve or deny dealer warranty parts and labor claims within 30 days after receiving them. Approved claims must be paid within 30 days after approval. For denied claims, manufacturers must give specific reasons within 30 days after denial. Dealers who win lawsuits to collect denied claims receive court costs and reasonable attorney fees. Fees are based on reasonable attorney time, not the amount recovered.

Fewer model contract demands for dealers

Manufacturers cannot require a separate model agreement when a dealer’s existing agreement already covers that model. They can still require reasonable quantities of tools, equipment, parts, and promotional materials, plus reasonably necessary training. Technician training must be available remotely. Dealers can return covered unused tools, parts, or signs within 2 years of receipt for a full refund.

More protection when dealer franchises end

Manufacturers must usually give licensed dealers 180 days’ written notice before ending or not renewing a franchise, up from 90 days. Notice must be delivered personally or by certified mail and state the decision, reasons, and effective date. Specified exceptions allow at least 15 days’ notice for insolvency, bankruptcy, receivership, certain serious criminal cases, or qualifying abandonment or closure. The abandonment or closure trigger is 14 consecutive business days, subject to the law’s exceptions. Inadequate prior supply creates a rebuttable presumption against good cause for sales-based termination; supply reviews include separate dealer designations. Dealers who end their own franchise get the same rights as when manufacturers end it.

Sponsors & Cosponsors

Sponsor

Cassie Julia
Democratic • House

Cosponsors

Chip Curry
Democratic • Senate
John Eder
Republican • House
Katrina Smith
Republican • House
Richard Bradstreet
Republican • Senate
Traci Gere
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 18 • No: 13

Senate vote • 3/10/2026

ACCEPT REPORT