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OregonHB 21272025 Regular SessionHouseWALLET

Relating to motor vehicle dealer franchises.

Sponsored By: Sponsor information unavailable

Became Law

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 7 benefits, 0 costs, 1 mixed.

Franchisors must indemnify Oregon dealers

The law requires franchisors to cover dealers’ damages, attorney fees, and court costs for certain claims. Covered areas include vehicle defects, harm from franchisor-required systems used properly, and misuse of protected dealer data. This protection can apply to current and former franchisees and some successors. These indemnity rules and related changes apply to franchise agreements signed or renewed on or after the law’s effective date.

Stronger dealer pay for warranty and recalls

Manufacturers must pay dealers for all labor and parts they require for recall repairs. When the maker supplies a part but does not sell it to the dealer, it must pay the dealer’s average markup; full engines, transmissions, and electric batteries are paid at 30% of catalog price. For recalled used vehicles under a do not drive or stop sale, dealers get at least 1.5% of the vehicle’s value per month, starting 30 days after the recall if parts are not reasonably available. Makers cannot recover warranty costs by reducing dealer payments or adding fees, and cannot punish or offset because a dealer claimed recall compensation.

Fair allocation and no dealer coercion

If the maker controls the selling or leasing system, it must use customer dealer choice or other objective rules to allocate vehicles. Dealers must get written reservation rules at least 30 days before a new system or any change. Makers cannot coerce dealers to sell add‑on products, install public‑use EV chargers, or accept unfair allocation plans. Threats, withholding cars or parts, or cutting incentives to force actions are banned.

Limits on dealer remodels and vendor choice

Dealers cannot be forced to build or materially remodel again within seven years if the last project met brand standards. A franchisor may still require changes for safety or needed technology, if it proves reasonableness, or if it pays all or a substantial part under a separate agreement. Dealers can pick substantially similar vendors, and the franchisor must approve or deny in 20 business days or it is approved. A franchisor cannot require a site‑control agreement to grant, renew, move, or transfer a franchise, unless it is voluntary with separate valuable consideration.

Warranty repairs stay with local dealers

Makers cannot pay non‑dealers for warranty repairs inside a dealer’s market area. Fleet repairs under 8,500 pounds are allowed. For vehicles 8,500 pounds or more, non‑dealer work is allowed only with dealer permission or owner authorization as specified. This protects dealer service revenue in their local market.

No fees for built-in car features

The law bans makers from charging retail customers to activate features that already work in the car without a data network. It covers some subscription-like, safety, or comfort functions such as heated seats. It does not cover services that rely on cellular or other data networks, like connected navigation, satellite radio, or roadside assistance. Dealers can still offer free trials and allowed promotions.

Faster, fairer dealer ownership transfers

When a dealer seeks to sell or transfer, the franchisor must mail an approval or denial within 60 days after a complete notice. If it does not respond in 60 days, the transfer is approved. If a right of first refusal applies to a sale of more than 50% ownership, the franchisor has 60 days to act, must match or beat the deal’s terms, and must pay the buyer’s reasonable pre‑exercise expenses. The right cannot be used against certain family, manager, related partnership, or trust transferees.

Updated dealer and vehicle definitions

The law updates key terms for dealers, franchises, market areas, qualified vendors, and site‑control agreements. It defines motor homes and changes what counts as a motor vehicle, excluding motor homes and including self‑propelled construction devices and some heavy trailers (20,000 pounds GVWR or more) used for commercial transport. These changes affect which vehicles and parties fall under Oregon’s franchise rules.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 148 • No: 1

House vote • 5/1/2025

House concurred in Senate amendments and repassed bill.

Yes: 54 • No: 0

Senate vote • 4/29/2025

Third reading. Carried by Bonham. Passed.

Yes: 27 • No: 1

Senate vote • 4/17/2025

Labor and Business: Heard and Reported Out with Amendments

Yes: 4 • No: 0

House vote • 4/10/2025

Third reading. Carried by Sosa. Passed.

Yes: 55 • No: 0

House vote • 4/1/2025

Commerce and Consumer Protection: Heard and Reported Out with Amendments

Yes: 8 • No: 0

Actions Timeline

  1. Chapter 50, (2025 Laws): Effective date January 1, 2026.

    6/6/2025House

  2. Governor signed.

    5/12/2025House

  3. President signed.

    5/5/2025Senate

  4. Speaker signed.

    5/5/2025House

  5. House concurred in Senate amendments and repassed bill.

    5/1/2025House

  6. Third reading. Carried by Bonham. Passed.

    4/29/2025Senate

  7. Carried over to 04-29 by unanimous consent.

    4/28/2025Senate

  8. Carried over to 04-28 by unanimous consent.

    4/24/2025Senate

  9. Carried over to 04-24 by unanimous consent.

    4/23/2025Senate

  10. Second reading.

    4/22/2025Senate

  11. Recommendation: Do pass with amendments to the A-Eng. bill. (Printed B-Eng.)

    4/21/2025Senate

  12. Work Session held.

    4/17/2025Senate

  13. Public Hearing held.

    4/15/2025Senate

  14. Referred to Labor and Business.

    4/10/2025Senate

  15. First reading. Referred to President's desk.

    4/10/2025Senate

  16. Third reading. Carried by Sosa. Passed.

    4/10/2025House

  17. Rules suspended. Carried over to April 10, 2025 Calendar.

    4/9/2025House

  18. Rules suspended. Carried over to April 9, 2025 Calendar.

    4/8/2025House

  19. Second reading.

    4/7/2025House

  20. Recommendation: Do pass with amendments and be printed A-Engrossed.

    4/4/2025House

  21. Work Session held.

    4/1/2025House

  22. Public Hearing held.

    2/4/2025House

  23. Referred to Commerce and Consumer Protection.

    1/17/2025House

  24. First reading. Referred to Speaker's desk.

    1/13/2025House

Bill Text

  • Enrolled

    5/1/2025

    PDF

  • B-Engrossed

    4/21/2025

    PDF

  • Senate Amendments to A-Engrossed

    4/21/2025

    PDF

  • SLB Amendment -A3 (Adopted)

    4/17/2025

    PDF

  • A-Engrossed

    4/4/2025

    PDF

  • House Amendments to Introduced

    4/4/2025

    PDF

  • HCCP Amendment -1 (Adopted)

    4/1/2025

    PDF

  • HCCP Amendment -1 (Proposed)

    3/27/2025

    PDF

  • HCCP Amendment -1 (Proposed)

    3/25/2025

    PDF

  • Introduced

    1/10/2025

    PDF

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