Our friends at VADA have provided us the following update on a signature piece of legislation that they are sponsoring. The purpose of the bills described below is to give dealers more predictability and objectivity in buy/sell transactions. The House version (HB191) passed the full Senate last week. The Senate version (SB534) passed the House Transportation Committee on Thursday. It now proceeds to the House floor.
Assuming the House passes that bill, both pieces of legislation must be engrossed — where final language is formalized by the Senate President and Speaker of the House — before heading to the Governor.
An Automotive News editorial called the legislation “good for dealers” and goes on to say: “More states should follow Virginia’s lead and spell out when automakers can exercise their right of first refusal on proposed dealership sales, so people who want to exit or enter the auto retailing world can do so in a clear, timely and efficient manner.”
We will update you as we learn more. The General Assembly adjourns March 9.
If you’d like more details on the buy/sell bill or other legislation the VADA team has tracked this session, here’s a full report.
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