HB1789 amends Oklahoma’s motor vehicle dealer law governing dealer sales responsibility areas and off-premises sales events, with a focus on recreational vehicles. The bill preserves the general rule that a manufacturer assigns a dealer’s area of sales responsibility and cannot unilaterally change it during the dealer agreement term, but it creates specific exemptions for certain off-premises events held at municipal, county, state-owned, or fairground facilities. It also distinguishes between a dealer’s own private off-premises event and sponsored events involving multiple dealers, and it sets conditions under which recreational vehicles may be displayed or sold outside a dealer’s assigned territory.
For sponsored recreational vehicle shows, the bill authorizes participation if at least 67% of RV dealers within a 60-mile radius participate, requires permits from the Oklahoma New Motor Vehicle Commission, and allows dealers whose manufacturer-approved territory includes the event location to participate even if the event is within another dealer’s market area. For private recreational vehicle shows, it allows limited off-premises sales subject to permit fees, location limits, duration limits, annual participation caps, mileage restrictions on private property, manufacturer approval, and written permission from the property sponsor. The bill also allows off-premises display events for promotional purposes, but bars sales activity, financing, credit applications, and participation by sales or finance personnel at those displays.
HB1789 also adds a dealer-agreement succession provision, requiring the agreement to identify a principal and allowing a family member successor or succession plan to be included. A dealer may change that designation or plan by written notice to the manufacturer. The bill takes effect November 1, 2025, and would modify the statutory framework in 47 O.S. Section 596.3 governing dealer/manufacturer territorial rights and event-based sales exceptions.
The overall sentiment reflected in the voting history is strongly favorable and largely noncontroversial. The bill advanced unanimously through House and Senate committee and floor votes, with only one dissenting vote on final House consideration. That pattern suggests broad support for clarifying and expanding limited off-premises RV sales opportunities while maintaining regulatory controls and manufacturer-dealer notice requirements.
The main points of contention, to the extent they appear in the text and vote pattern, involve balancing dealer territorial protections against expanded event-based sales access. Dealers and event sponsors may favor the new flexibility for RV shows and displays, while manufacturers or nonparticipating dealers could be concerned about sales occurring near their market areas, the exemption from territorial restrictions at certain public facilities, and the ability of dealers to sell at events outside their assigned responsibility area under specified conditions.
The bill amends 47 O.S. 2021, Section 596.3, which governs dealer sales responsibility areas and manufacturer-dealer territorial rules. It creates new statutory exceptions for off-premises recreational vehicle sales and displays, adds permit and fee requirements administered by the Oklahoma New Motor Vehicle Commission, and establishes conditions for sponsored and private RV shows. It also affects dealer agreements by requiring a designated principal and allowing succession planning language, which could influence manufacturer-dealer contract terms and dealer succession practices.
The bill appears to have enjoyed broad bipartisan support and little visible opposition. It passed House and Senate committees unanimously, cleared both chambers with overwhelming margins, and received only one no vote on final House consideration. The vote history suggests the measure was viewed as a practical adjustment to RV dealer event rules rather than a controversial policy change.
The central policy tension is between protecting a dealer’s assigned sales territory and allowing off-premises RV sales at shows and displays. Manufacturers and nonparticipating dealers may object to sales activity occurring outside a dealer’s designated area, especially where events are exempted at public facilities or allowed near another dealer’s market area. On the other hand, RV dealers and event sponsors likely support the bill’s expanded event opportunities, while the commission’s permit system and event limits appear designed to address concerns about unfair competition and unregulated sales activity.