House Bill 4925, sponsored by State Senator Dale Fowler (R-Harrisburg), has been signed into law, providing significant protections for local motorcycle dealerships across Illinois. The new legislation amends the Motor Vehicle Franchise Act, specifically targeting burdensome mandates that could impose substantial costs on dealerships.
Under the new law, vehicle manufacturers, distributors, or wholesalers are prohibited from requiring motorcycle dealers to make expensive upgrades or improvements to their facilities. These mandates, which could previously be enforced without consideration for the financial impact on smaller dealerships, often placed undue stress on local businesses trying to remain competitive in a challenging market.
Senator Fowler, speaking on the importance of the bill, highlighted the need to support small businesses by reducing unnecessary financial burdens. "My hope when bringing this proposal before the Senate was to protect our smaller dealers from substantial costs that they could incur due to mandates from manufacturers,” Fowler stated. "We should be looking at ways to alleviate the burdens placed on small businesses, not upholding unnecessary and costly mandates that make it harder to operate here in Illinois."
Additionally, the law prevents manufacturers from making aspects of the manufacturer-dealer relationship contingent on the dealer complying with potentially unreasonable demands. This ensures a more balanced and fair relationship, allowing dealerships to focus on serving their communities without being pressured into costly changes. The bill was signed into law on August 9 and took effect immediately.
