Bill would set event, dealer, and warranty rules for recreational vehicle businesses

Recreational vehicle events would have set time limits and participation rules. An event would involve more than one recreational vehicle dealer, distributor, manufacturer, or factory representative displaying or selling vehicles for a limited time. The rules cover in-state and out-of-state participants. Out-of-state dealers would need to register, post a $30,000 bond unless they already have a qualifying bond on file with the Department of Transportation, and meet one of the stated event participation paths. They would also need to conduct at least four listed business activities at a facility in a neighboring state. An event could last up to 10 days in a calendar month, 20 days in three consecutive calendar months, and 60 days in a calendar year. Setup, teardown, and closed days would not count.

Manufacturers and distributors would need just cause to end or refuse to renew a dealer agreement. These rules would apply to manufacturer or distributor agreements with recreational vehicle dealers. In most cases, the dealer would have to tell the manufacturer within 30 days that it plans to fix the claimed problems, then fix them within 120 days. Some listed reasons would allow the notice period to be shortened to 30 days. On renewal, a manufacturer could not add inventory requirements or raise sales targets beyond local market growth. The usual written notice period would be at least 120 days. If the dealer gives timely notice that it plans to fix the problems and fixes them within 120 days, the notice would be void.

Warrantors would pay dealers directly for covered warranty parts and labor. The rules would apply to warrantors and dealers handling recreational vehicle warranty repairs, including parts bought from another supplier. Labor pay would use the dealer's hourly retail rate, based on recent repair orders. Parts reimbursement would include at least a 30% handling charge and shipping costs; free parts would still receive a handling charge. A dealer unable or unwilling to perform major or repeated warranty repairs would have to notify the warrantor as soon as reasonably possible.

Recreational vehicle dealers could sign final sales contracts at events on Sundays. This would cover recreational vehicle dealers holding events and manufactured housing dealers. Manufactured housing dealers would also be allowed to sign final sales contracts on Sundays.

Some dealers ending agreements for just cause could require the manufacturer to repurchase eligible inventory. The rule covers eligible new, untitled recreational vehicles acquired from the manufacturer or distributor within 18 months before the termination notice, if they were not used beyond demonstrations, altered, or damaged. The dealer could choose repurchase when ending the agreement for just cause if the manufacturer failed to give notice or fix the claimed problems as required. The manufacturer would have to pay in full before removing a vehicle. The manufacturer would have 45 days after termination to repurchase the eligible property. The dealer would surrender it after receiving full payment.