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HB 5645

AN ACT CONCERNING THE DIRECT SALES OF MOTOR VEHICLES.

2025 Regular Session Introduced by Tony Scott

HB 5645 would regulate direct-to-consumer car sales by manufacturers, setting showroom licensing and safeguarding dealer protections and consumer rights.

REF. TO JOINT COMM. ON Transportation
#motorvehiclesales
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Bill Summary · HB 5645

Summary — HB 5645: "An Act Concerning the Direct Sales of Motor Vehicles"

Status: Referred to Joint Committee on Transportation (filed Mar 14, 2025).
Note: The bill text was not provided. This summary is based on the bill title and public legislative actions; where the bill’s text is unknown, I describe likely subject matter and the typical provisions and impacts such a bill would involve. Speculative sections are clearly marked.

Purpose (from title)

HB 5645 is intended to address the regulation of "direct sales" of motor vehicles — i.e., situations where vehicle manufacturers (or their affiliates) sell new motor vehicles directly to consumers rather than through independent, franchised dealerships. The bill likely seeks to clarify, expand, or restrict the legal framework governing such direct manufacturer-to-consumer sales.

Key topics the bill is likely to cover (speculative)

Because the actual bill language is not provided, below are commonly addressed elements in direct-sales legislation that HB 5645 may contain:
- Whether manufacturers may operate retail storefronts or showrooms and sell new vehicles directly to consumers within the state.
- Licensing and registration requirements for manufacturer-owned retail locations (dealer licenses, sales-tax registration, consumer disclosure requirements).
- Limits on the number of direct-sales outlets a manufacturer may operate and whether certain manufacturers (e.g., electric vehicle startups) are treated differently.
- Provisions on vehicle servicing, warranty repairs, and authorized service facilities (consumer protection and safety standards).
- Franchise law modifications or explicit carve-outs to existing franchise protections for independent dealers.
- Transitional/ grandfathering rules for existing franchise agreements and prohibition on termination or nonrenewal of franchises without cause.
- Local zoning and land-use considerations for manufacturer showrooms.
- Enforcement mechanisms, penalties, and the state agency (likely Department of Motor Vehicles or equivalent) responsible for oversight.

Who would be affected

  • Vehicle manufacturers (incumbent and new entrants, particularly EV manufacturers that favor direct sales).
  • Independent franchised dealerships and dealer associations.
  • Consumers (in terms of purchase options, pricing, service access, and consumer protections).
  • State regulatory agencies (enforcement, licensing) and local governments (zoning enforcement).
  • Service providers and parts suppliers connected to dealer networks.

Potential impacts (speculative / typical outcomes)

  • Expansion of direct sales could increase consumer choice and potentially lower prices for some buyers, while disrupting the traditional franchised dealer model.
  • Restrictions or preservation of dealer franchise protections could limit manufacturer direct-sales expansion, protecting local dealers but potentially limiting competition.
  • Changes to service and warranty rules could affect vehicle maintenance access, especially in areas with fewer independent repair options.

Legislative actions & procedural status

  • 2025-01-21: Referred to Joint Comm. on Transportation (notation).
  • 2025-03-14: Bill filed.
  • 2025-04-07: Read first time; referred to subcommittee on County & Regional Government.
  • 2025-05-05: Subcommittee public hearing; testimony recorded; left pending in subcommittee.
  • 2025-05-06: Recalled from subcommittee; considered in public hearing; reported favorably without amendment.
  • 2025-05-12: Committee report filed and distributed; report sent to Calendars (now awaiting floor scheduling).

Current status: Reported favorably by committee and placed on the legislative calendar — next step is likely floor consideration by the chamber of introduction.

For stakeholders / next steps

  • Obtain the full bill text and committee report for precise provisions (the legislative website or committee clerk can provide).
  • Review testimony and exhibits from the May 5–6 subcommittee hearings to see stakeholder positions and identified fiscal/administrative impacts.
  • Monitor the legislative calendar for floor scheduling and possible amendments.

If you want, I can:
- Search for and summarize the full bill text and committee report (if you provide a source or allow me to look it up), or
- Produce a side-by-side list of likely provisions and their pros/cons for specific stakeholders (manufacturers, dealers, consumers).

Compiled from official sources — confirm details with the bill’s official record.

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