Recreational Vehicle Manufacture & Dealer Act
SB287 creates a new standalone “Recreational Vehicle Manufacturer and Dealer Act” and carves new recreational vehicles out of the existing Motor Vehicle Dealer Act. The bill defines recreational vehicles broadly to include motor homes, travel trailers, fifth-wheel trailers, truck campers, and folding camping trailers, and then sets a separate legal framework governing the relationship between RV manufacturers, distributors, and dealers. It requires a written manufacturer-dealer agreement before new recreational vehicles may be sold, and it requires those agreements to specify their duration and an exclusive area of sales responsibility for the dealer.
The bill also regulates how those agreements may be terminated, canceled, or not renewed. Manufacturers and distributors may do so only for good cause, must generally provide 120 days’ written notice, and must give dealers an opportunity to cure deficiencies in many cases. It further establishes repurchase obligations for inventory, accessories, proprietary parts, and certain equipment when an agreement ends, and it protects dealer succession and ownership transfers by limiting when manufacturers may object to a sale or family succession. The bill adds rules for damaged or over-mileage RV deliveries, prohibits coercion by manufacturers or distributors, and sets detailed warranty reimbursement and indemnification requirements for both warrantors and dealers.
SB287 would significantly change state law by exempting RV dealers, manufacturers, component manufacturers, and distributors from the current Chapter 57, Article 16 framework and replacing part of that coverage with a specialized RV-specific regime. It also repeals an existing section of law that applies to recreational vehicle manufacturers and distributors, and it authorizes enforcement through civil actions, mandatory mediation before suit, administrative penalties, and possible license suspension or revocation by the Taxation and Revenue Department. The act would take effect on January 1, 2026.
Because no committee transcripts or recorded votes were provided, there is no documented public debate or vote history to gauge sentiment directly. Based on the bill text alone, the measure appears strongly pro-dealer and pro-contract certainty, with extensive protections for dealers against termination, coercion, and uncompensated warranty work. The structure suggests it is intended to address perceived bargaining imbalances in the RV market and to create clearer rules for franchise-style relationships in that sector.
The main points of contention likely involve the bill’s restrictions on manufacturer discretion, especially the exclusive territory provisions, the good-cause termination standard, mandatory repurchase obligations, and limits on objections to ownership transfers or family succession. Manufacturers and distributors may view these provisions as burdensome and costly, while dealers are likely to support them as necessary protections for investment-backed businesses. Warranty reimbursement rates, mediation requirements, and the prohibition on forcing arbitration or waiver of statutory rights are additional areas that could draw debate.
The bill would remove new recreational vehicles from the general motor vehicle dealer franchise provisions in Chapter 57, Article 16 and replace them with a separate statutory scheme tailored to RV sales and service. It would impose new contractual, notice, repurchase, warranty, transfer, and dispute-resolution obligations on RV manufacturers, distributors, warrantors, and dealers, while also creating enforcement tools including administrative penalties, license actions, and civil remedies. Existing law governing recreational vehicle manufacturers and distributors would be partially repealed, and the new framework would become effective January 1, 2026.
No committee discussion or vote record was provided, so there is no direct evidence of legislative sentiment from hearings or roll calls. The bill’s text indicates a policy choice favoring dealer protections, contractual stability, and compensation for warranty and repurchase obligations. Overall, the measure appears designed to address dealer concerns in the recreational vehicle market and would likely be viewed positively by dealers and more cautiously or negatively by manufacturers and distributors.
The likely areas of contention are the bill’s limits on manufacturer and distributor control over dealership relationships. In particular, the exclusive area of sales responsibility, the requirement for good cause and lengthy notice before termination or nonrenewal, mandatory repurchase of inventory and equipment, and restrictions on objections to ownership transfers or family succession could be disputed by manufacturers and distributors as overly restrictive. Dealers, by contrast, would likely support these provisions as protections for their investments, business continuity, and bargaining position. Warranty reimbursement standards, anti-coercion rules, and the ban on forcing arbitration or waiver of statutory rights are also likely to be debated.