All Roll Calls
Yes: 159 • No: 20
Rhode IslandH82132026 Regular SessionHouse
AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- REGULATION OF BUSINESS PRACTICES AMONG MOTOR VEHICLE MANUFACTURERS, DISTRIBUTORS, AND DEALERS .
Sponsored By: Patricia A. Serpa (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 2 benefits, 0 costs, 5 mixed.
Family can take over the dealership
A named family member can succeed to the dealership if they give written notice within 120 days, agree to franchise terms, and meet current dealer‑operator qualifications. The maker may ask for reasonable personal and financial information. A maker can refuse for good cause, but must give written notice with reasons within 60 days and cannot end the franchise sooner than 90 days after that notice.
Dealers can protest new or moved stores
Before opening, adding, or moving a same‑make store in a market, the maker must send certified notice to the department and each same‑line dealer. Dealers have 30 days to protest. The department must hold a hearing, and the applicant must prove good cause using listed factors like investment, consumer care, market support, five‑year trends, distance, and promised deliveries. Any party can ask a court to review the decision.
Faster pay and fair repair rates
Manufacturers must pay dealers for warranty and recall work at the dealer’s retail rate, including diagnostics. Dealers can set parts markup using 100 repair orders or 60 days of orders from the past 180 days, and set labor rate from last month’s non‑warranty work; the rate takes effect in 30 days unless rebutted. Some items do not count in these rate calculations, and dealers may update declared rates no more than twice a year. Claims must be allowed for at least 180 days, decided in 30 days (or they are approved), and paid within 30 days after approval. Chargebacks are limited to one year, cannot be for small clerical errors, and dealers get at least 60 days to fix documents after certified notice. If a maker supplies a part at no cost, it must pay the dealer the average markup, and it cannot add a special surcharge or raise wholesale prices just to claw back these reimbursements.
Monthly pay for used cars under stop‑sale
If recall parts are not available within 30 days and a Stop‑Sale or Do‑Not‑Drive order is in place, the maker must pay at least 1.5% of the used vehicle’s value per month while the order lasts. Value is the average trade‑in from an independent guide, measured at the later of the stop‑sale date or when the vehicle entered inventory. Total pay cannot be more than that average trade‑in value, and this state remedy is exclusive. Makers cannot reduce other compensation or incentives because you claimed these payments.
Written notice for major new‑car damage
Dealers must give you written notice before delivery if a new car has uncorrected damage or repaired damage costing over 6% of MSRP. Glass, tires, and bumpers replaced with identical parts do not count in the 6% rule. Repaired damage at or under 6% is not a reason to cancel after you accept delivery.
Broader dealer protections and fair public offers
These protections apply to all written or oral maker‑dealer agreements, including franchises, sales, leases, security interests, insurance, construction, and service contracts. People who convert or modify vehicles before retail sale must follow these rules too. If a maker offers discounts or refunds tied to a state or local government sale, it must offer the same deal to all dealers in the area and give notice at the same time.
Clear rules on shipping damage and risk
Makers must give dealers written pre‑delivery tasks and file them and a pay schedule with the department; this filing defines the dealer’s product‑liability duty as between the parties. If the dealer chose the carrier or method, risk of loss passes to the dealer when the vehicle is delivered to the carrier; otherwise, the maker keeps the risk until dealer acceptance. Makers are liable for damage before delivery to a carrier; dealers are liable after accepting from the carrier until delivery to the buyer, with liability after carrier delivery tied to who chose the carrier.
Sponsors & Cosponsors
Sponsor
Patricia A. Serpa
Democratic • House
Cosponsors
Deborah A. Fellela
Democratic • House
Earl A. Read, III
Democratic • House
Roll Call Votes
House vote • 6/11/2026
REGULATION OF PRACTICES VEHICLE PASSAGE IN CONCURRENCE
Yes: 62 • No: 7
Senate vote • 6/10/2026
MOTOR/OTHER VEHICLES--REGULATION BUSINESS PRACTICES MANUFACTURER Passage
Yes: 34 • No: 4
House vote • 5/5/2026
REGULATION OF BUSINESS PRACTICES PASSAGE
Yes: 63 • No: 9
Bill Text
H8213 - As Introduced
2/27/2026
H8213 - Substitute
2/27/2026
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