SB5945

SB5945 – Prohibiting direct retail sales or leases of vehicles & some subscription services; limiting manufacturers’ ability to get dealers to install fast chargers.
Prime Sponsor – Senator Conway (D; 29th District; Tacoma)
Current status – Referred to the Senate Committee on Business, Financial Services, Gaming & Trade; passed out of committee January 9th (without ever having a hearing, as far as I know), and referred to Labor and Commerce. Had a hearing there on  January 25th and passed out of committee January 29th. Referred to Rules.
Next step would be – Action by the Rules Committee.
Legislative tracking page for the bill.
HB2028 is a companion bill in the House.

Comment –
SB6304 would authorize direct sales by EV manufacturers.

Summary –
The bill would prohibit direct sales or leases of vehicles to retail customers. (Tesla sells directly to customers like this, without dealers, and Rivian and other new EV companies are adopting this model.)

The bill would prohibit offering consumers a subscription service for any vehicle feature that uses components and hardware that are already on the vehicle when it’s purchased or leased and that is typically offered to a consumer as an upgrade at that point, if it would function after activation without ongoing costs to or support by a dealer, manufacturer, distributor, or a third-party service provider. (The prohibition doesn’t apply to navigation system updates, satellite radio, roadside assistance, software-dependent driver assistance or driver automation features, or services that rely on cellular or other data networks.)

It would prevent manufacturers and distributors from creating programs or policies encouraging or requiring dealers to install direct current fast charging stations, unless those required public access to the stations and  they reimbursed the dealer for half of the cost of installing and maintaining them when the dealer gave them half the net income from charging. They wouldn’t be allowed to encourage or require a dealer to install DC fast charging if the dealer could obtain access to stations that satisfied the program or policy within five miles of the dealership. A program or policy would have to be reasonable in light of all existing circumstances including local conditions; supply and time constraints; and advances in vehicle technology and grid integration. They would have to allow a new dealer to purchase or lease goods or services of like kind and quality from an alternative vendor if goods or services are to be supplied by a vendor chosen by the manufacturer or distributor.

It would also prohibit manufacturers from implementing an incentive program that did not provide an equal opportunity for all dealers to qualify because of their location or sales volume, that predetermined the price of a vehicle, that limited eligibility based on nonvehicle product penetration, or that required use of specific software or service vendors to qualify. If manufacturers provided parts for repairs to dealers free or at a reduced rate, they’d be required to compensate the dealers for using those at the same rate that they’d have compensated them for parts supplied to do repairs under warranty. The bill also changes the method for calculating the rate at which manufacturers compensate dealers for the labor and diagnostic work involved in warranty repairs.