House Bill 2518 (H-2853.1), introduced in the 69th Legislature, 2026 Regular Session and read first on 01/15/26, amends RCW 46.96.185 to add and clarify many dealer protections and limits on manufacturers, distributors, factory branches, and factory representatives and related entities. The bill prohibits differential pricing to dealers for the same model or parts, discriminatory promotion or allocation practices, use of dealer confidential information to compete, and certain terminations or nonrenewals; it also restricts manufacturers from competing with dealers by operating dealerships or service facilities except under enumerated exceptions and conditions. The amendment includes detailed conditions for temporary manufacturer operation of dealerships, ownership thresholds, distance and historical conditions for certain ownership arrangements, and limits on manufacturer aggregate ownership in single-line dealerships. The bill establishes procedural requirements and limits: manufacturers may enter exclusive written contracts for a single facility for separate consideration but breach damages are capped at the consideration paid plus reasonable interest; manufacturers may not coerce dealers from acquiring other lines absent reasonable business justification (manufacturer bears the burden of proof); manufacturers must give 90 days’ written notice before modifying franchise agreements and 60 days’ written reasons when rejecting proposed changes in dealer executive management; dealers may return certain nonvoluntarily ordered items for a full refund within 90 days (or longer by agreement). The section defines terms such as "actual price," "control," "own/ownership," and excludes certain large trucks and recreational vehicles from the term "motor vehicles." Violations are treated as unlawful and unfair practices under chapter 19.86 RCW, and aggrieved parties may seek adjudicative proceedings under chapter 34.05 RCW. The bill cross-references other statutes and rules for terms like trade secrets (RCW 19.108.010), "electric vehicles" (WAC 173-424-110), "good cause" (RCW 46.96.060), relocation and market area rules (RCW 46.96.140 and 46.96.150), and the definition of recreational vehicles (RCW 43.22.335). The extracted text ends mid-sentence in subsection (1)(j)(i)(D) and omits earlier or later subsections and the specific identity of the "department" referenced in adjudicative proceedings, so the full scope of the section and some procedural details are uncertain from these facts alone.

If enacted, the bill would strengthen dealer protections and limit what manufacturers and their related entities can force or withhold. Dealers would be less likely to face discriminatory pricing or unequal allocations, could refuse coerced relocations or major facility work for at least ten years (with “substantial renovation” defined as costs over $5,000), and would have rights to return unwanted, nonrequired items for full refund within 90 days. Manufacturers would be restricted from competing directly with dealers except under narrow, time‑ and ownership‑limited exceptions, would have to give written reasons within set timeframes when rejecting new dealer management or modifying franchises, and would face a clearer path for dealers to challenge actions through adjudicative proceedings and unfair‑practice claims. The people most affected are new motor vehicle dealers and manufacturers/distributors/factory representatives. Dealers are likely to see lower immediate capital and facility risk, greater control over management and sourcing of image elements, and stronger legal recourse. Manufacturers will face tighter limits on how they allocate, price, and control dealer operations, greater documentation and proof burdens, potential limits on ownership and temporary dealership operation, and higher risk of disputes or liability under unfair‑practice law. Some key implementation details remain unclear from the excerpt provided, including the identity of the administering “department,” the rest of subsection (j), and how terms like “good cause” and “relevant market area” will be applied.