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Maryland General Assembly· SB0345Approved by the Governor - Chapter 463 (Chapter 463)

Vehicle Manufacturers and Dealers - Dealer and Manufacturer Associations - Administrative Hearings, the official text

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WES MOORE, Governor                                 Ch. 463

Chapter 463

                   (Senate Bill 345)

AN ACT concerning

Vehicle Manufacturers and Dealers – Dealer and Manufacturer Associations –
                                         Administrative Hearings

FOR the purpose of authorizing a vehicle dealer association and a vehicle manufacturer
         association to request an administrative hearing on certain matters, subject to
         certain requirements; and generally relating to vehicle dealer and vehicle
         manufacturer associations.

BY repealing and reenacting, without amendments,
         Article – Transportation
         Section 15–201(a)
         Annotated Code of Maryland
         (2020 Replacement Volume and 2025 Supplement)

BY adding to
         Article – Transportation
         Section 15–201(a–1) and (f)
         Annotated Code of Maryland
         (2020 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, with amendments,
         Article – Transportation
         Section 15–201(f) and 15–214
         Annotated Code of Maryland
         (2020 Replacement Volume and 2025 Supplement)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

                   Article – Transportation

15–201.

(a) In this subtitle the following words have the meanings indicated.

(A–1) “DEALER ASSOCIATION” MEANS A BUSINESS ENTITY THAT:

                (1) IS PRIMARILY OWNED BY OR COMPOSED OF DEALERS THAT

COLLECTIVELY REPRESENT A MAJORITY OF THE FRANCHISED DEALERS IN THE

STATE; AND

                                                           –1–
Ch. 463            2026 LAWS OF MARYLAND

         (2) PRIMARILY REPRESENTS THE INTERESTS OF DEALERS.

(F) “MANUFACTURER ASSOCIATION” MEANS A BUSINESS ENTITY THAT:

                (1) IS PRIMARILY OWNED BY OR COMPOSED OF MANUFACTURERS

THAT COLLECTIVELY REPRESENT A MAJORITY OF THE MANUFACTURERS IN THE

STATE; AND

         (2) PRIMARILY REPRESENTS THE INTERESTS OF MANUFACTURERS.

        [(f)] (G)  “Second–stage manufacturer” has the meaning stated in § 13–113.2 of
this article.

15–214.

        (A) [In] EXCEPT AS PROVIDED IN SUBSECTION (B) SUBJECT TO SUBSECTION
(B) OF THIS SECTION AND EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS
SECTION, IN addition to any other right to request a hearing under this subtitle and
notwithstanding any provisions of the franchise agreement to the contrary, a dealer,
designated dealer successor as provided in § 15–211.1 of this subtitle, DEALER
ASSOCIATION ON BEHALF OF ITSELF, A DEALER, OR A GROUP OF DEALERS,
manufacturer, MANUFACTURER ASSOCIATION ON BEHALF OF ITSELF, A
MANUFACTURER, OR A GROUP OF MANUFACTURERS, distributor, or factory branch may
request a hearing under Title 12, Subtitle 2 of this article to:

                (1) Resolve a dispute under any provision of this title between a dealer [or],
a designated dealer successor, OR A DEALER ASSOCIATION and a manufacturer,
MANUFACTURER ASSOCIATION, distributor, or factory branch; or

         (2) Seek clarification or interpretation of any provision of this [subtitle]

TITLE.

        (B) A DEALER ASSOCIATION MAY REQUEST A HEARING UNDER SUBSECTION
(A)(1) OF THIS SECTION ONLY IF:

                (1) AT LEAST ONE MEMBER OF THE DEALER ASSOCIATION HAS A
DISPUTE UNDER ANY PROVISION OF THIS TITLE WITH A MANUFACTURER,
DISTRIBUTOR, OR FACTORY BRANCH;

                (2) THE INTERESTS THAT THE DEALER ASSOCIATION SEEKS TO
PROTECT ARE GERMANE TO THE PURPOSE OF THE DEALER ASSOCIATION; AND

                   –2–
WES MOORE, Governor  Ch. 463

                (3) THE CLAIM ASSERTED AND THE RELIEF REQUESTED DO NOT
REQUIRE THE PARTICIPATION OF EACH OF THE INDIVIDUAL MEMBERS.

        (C) SUBSECTION (A)(1) OF THIS SECTION DOES NOT APPLY TO A DISPUTE
INVOLVING A MANUFACTURER, DISTRIBUTOR, OR FACTORY BRANCH THAT DOES
NOT HAVE AT LEAST ONE FRANCHISED DEALER IN THIS STATE.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2026.

Approved by the Governor, May 12, 2026.

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