Proposal sets licensing, warranty, and agreement rules for RV businesses

The proposed act would require licenses for recreational vehicle dealers, manufacturers, and distributors. The proposed licenses cover people or businesses that sell new recreational vehicles, make them, or buy them for resale to dealers. A dealer license would allow sales at the listed business location and certain nearby or county locations. Only a licensed dealer could sell a new recreational vehicle to a qualifying consumer in Nebraska. A manufacturer or distributor would need a written agreement signed by both parties before selling new vehicles to or through a dealer. The act would become operative October 1, 2026. The limits on who may sell new recreational vehicles would apply beginning January 1, 2027.

The proposed act would set rules for ending dealer agreements and changing dealership ownership. These rules would cover recreational vehicle dealers, manufacturers, and distributors with dealer agreements, including dealers changing ownership. A manufacturer or distributor would need good cause to end an agreement and would have to show that cause. The dealer could give notice that it intends to fix the stated problems and would have 90 days after the notice is received to do so. A manufacturer or distributor would not need to give notice if the dealer were insolvent, had assigned assets for creditors, or were in bankruptcy. Objections to an ownership change would be limited to listed reasons and would need written explanation. Most termination notices would be due at least 120 days before the proposed end date, or 30 days for certain listed reasons. A dealer who gives notice that it intends to fix the problems would have 90 days after the notice is received.

The proposed act would set payment rules for warranty repairs and require mediation before some lawsuits. These rules would cover warranty providers and recreational vehicle dealers doing warranty work. Warranty providers would have to give authorized dealers written duties and payment schedules. Labor payment could not be below the dealer’s lowest ordinary retail rate for similar nonwarranty work. Claims could be denied for cause, including fraud or missing important records. Before suing over an alleged violation, a party would have to demand mediation. Dealers would have to submit warranty claims within 45 days after completing the work. Claims not denied within 45 days after submission would be treated as approved and paid within 60 days after submission.