Section 818.326 - Limitations on establishing or relocating dealers(a)Additional or relocation of new vehicle dealers.-- (1) In the event that a manufacturer seeks to enter into a franchise establishing an additional new vehicle dealer or relocating an existing new vehicle dealer within or into a relevant market area where the same line-make is then represented, the manufacturer shall in writing first notify the board and each new vehicle dealer in such line-make in the relevant market area of the intention to establish an additional dealer or to relocate an existing dealer within or into that market area. Within 20 days after the end of any appeal procedure provided by the manufacturer, any such new vehicle dealer may file with the board a protest to the establishing or relocating of the new vehicle dealer. When such a protest is filed, the board shall inform the manufacturer that a timely protest has been filed, and that the manufacturer shall not establish the proposed new vehicle dealer or relocate the new vehicle dealer until the board has held a hearing, nor thereafter, if the board has determined that there is just cause for not permitting the addition or relocation of such new vehicle dealer.(2) The notice required by this subsection shall include the following information: (i) The location of the proposed additional or relocating new vehicle dealer.(ii) An explanation of the appeal procedure provided by the manufacturer or distributor, if any, to the establishment of the proposed additional new vehicle dealer or relocation of the new vehicle dealer.(iii) An explanation of the existing new vehicle dealer's rights to file a protest with the board to the establishment of the proposed new vehicle dealer or the relocation of the new vehicle dealer.(3) Under this subsection, relocating an existing new vehicle dealer shall include any instance where an existing dealer sells or otherwise transfers all or substantially all of its business to a new owner and the new owner, who has been approved by the manufacturer or distributor to enter into a franchise agreement, seeks to relocate the ongoing, operating dealership franchise from its current licensed address to a site within the relevant market area of the existing dealer which is not within five miles of another licensed new vehicle dealer for the same line-make of vehicle as set forth in subsection (b)(1).(4)(i) Where an automobile, motorcycle or truck manufacturer or distributor seeks to enter into an agreement or franchise establishing an additional vehicle warranty service facility or seeks to relocate an existing vehicle warranty service facility within or into a radius of five miles surrounding where an existing new vehicle dealer vehicle warranty service facility of the same line-make is then represented, except in cases involving a franchised new medium or heavy-duty truck dealer, in which case the affected radius shall be the relevant market area or the area of responsibility as defined in the dealer's franchise, whichever is greater, the automobile, motorcycle or truck manufacturer shall in writing first notify the board and each affected new vehicle dealer vehicle warranty service facility of such line-make of the intention to establish an additional vehicle warranty service facility or to relocate an existing vehicle warranty service facility within or into the affected market areas.(ii) The notice required by subparagraph (i) shall include the following information: (A) The location of the proposed additional or relocating vehicle warranty service facility.(B) An explanation of the appeal procedure provided by the automobile, motorcycle or truck manufacturer or distributor, if any, to the establishment of the proposed additional vehicle warranty service facility or relocation of the vehicle warranty service facility.(C) An explanation of the existing new vehicle dealer's or vehicle warranty service facility's rights to file a protest with the board to the establishment of the proposed vehicle warranty service facility or the relocation of the vehicle warranty service facility.(iii) Within 20 days after the end of any appeal procedure provided by the automobile, motorcycle or truck manufacturer, any such new vehicle warranty dealer vehicle service facility may file with the board a protest to the establishment or relocation of the vehicle warranty service facility.(iv) When such a protest is filed, the board shall inform the automobile, motorcycle or truck manufacturer that a timely protest has been filed and that the automobile, motorcycle or truck manufacturer shall not establish the proposed vehicle warranty service facility or relocate the vehicle warranty service facility until the board has held a hearing nor thereafter if the board has determined that there is just cause for not permitting the addition or relocation of such vehicle warranty service facility.(v) In determining whether just cause exists to allow for the establishment or relocation of a vehicle warranty service facility, the board shall consider the same type of circumstances as established in subsection (c).(b)Nonapplicability of section.--This section does not apply: (1) To the relocation of an existing dealer within that dealer's relevant market area, provided that the relocation not be at a site within five miles of a licensed new vehicle dealer for the same line-make of vehicles.(2) If the proposed new vehicle dealer is to be established at or within two miles of a location at which a former licensed new vehicle dealer for the same line-make of new vehicle had ceased operating within the previous two years. For purposes of this section, a former vehicle dealer shall have ceased operations on the date on which the franchise or agreement shall have been finally terminated.(3) To the relocation of an existing dealer to a site that is further away from the nearest dealer of the same line-make.(4) To manufactured housing or recreational vehicle dealers.(c) Board to consider existing circumstances.--In determining whether just cause has been established for not entering into or relocating an additional new vehicle dealer for the same line-make, the board shall take into consideration the existing circumstances, including, but not limited to: (1) Permanency of the investment of both the existing and proposed new vehicle dealers.(2) Growth or decline in population and new vehicle registrations in the relevant market area.(3) Effect on the consuming public in the relevant market area.(4) Whether it is injurious or beneficial to the public welfare for an additional new vehicle dealer to be established.(5) Whether the new vehicle dealers of the same line-make in that relevant market area are providing adequate competition and convenient customer care for the vehicles of the line-make in the market area which shall include the adequacy of vehicle sales and service facilities, equipment, supply of vehicle parts and qualified service personnel.(6) Whether the establishment of an additional new vehicle dealer would increase competition and whether such increased competition would be in the public interest.(7) The effect the denial of relocation will have on a relocating dealer.Amended and Renumbered by P.L. TBD 2018 No. 134, § 18, eff. 10/24/2019.1983, Dec. 22, P.L. 306, No. 84, §18 [ 63 P.S. § 818.18], effective 1/1/1984. Renumbered as § 27 [63 P.S. § 818.27] and amended 1996 , April 19, P.L. 104, No. 27, § 13, effective in 60 days. Amended 2000, Oct. 18, P.L. 577, No. 75, § 4, effective in 60 days.