What's happening
This bill creates new rules regulating relationships, agreements, and consumer protections between recreational vehicle dealers, manufacturers, and suppliers in New York.
Why it matters
Shifts the power dynamics between RV dealers and manufacturers. By requiring written agreements, setting strict rules for terminating dealer contracts, and mandating exclusive sales territories, the bill gives dealers more negotiating leverage and predictability, which may help stabilize local businesses and affect the availability/pricing of RVs for consumers.
Establishes robust consumer and dealer protections. The legislation lays out detailed requirements for warranty repairs, inventory repurchase, and fair compensation to dealers, which could lead to faster, more reliable service for RV owners and reduce the risk of disputes leaving consumers stranded with unresolved issues.
Creates clear dispute resolution and enforcement mechanisms. With defined procedures for mediation, adjudication, and judicial review, along with the authority for the Commissioner of Motor Vehicles to assess penalties, the bill ensures both dealers and manufacturers have avenues for resolving conflicts without resorting to costly litigation, potentially expediting resolutions and safeguarding business interests.
Addresses succession, ownership transfers, and market integrity. By setting rules for family succession and dealership sales, the bill helps ensure continuity for family-owned dealerships, while provisions against coercion and unauthorized sales protect both market competition and consumer choice in the RV market.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Protect RV Dealer Rights
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Recommit, enacting clause stricken
- Referred to consumer protection
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Protect RV Dealer Agreements
In Assembly Committee · Consumer Affairs And Protection · Sponsor Angelo Santabarbara
Full text
14 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
200
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to establishing the recreational vehicle dealer agreements
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. It is the intent of the legislature to protect the public health, safety, and welfare of the residents of the state by regulating the relationship between recreation vehicle dealers, manufacturers and suppliers, maintaining competition, and providing consumer protection and fair trade.
§ 2. The general business law is amended by adding a new article 42 to read as follows:
ARTICLE 42
RECREATIONAL VEHICLE DEALER AGREEMENTS Section 1100. Definitions.
1101. Written agreements/designated territories.
1102. Manufacturer initiated termination, cancellation, and
alteration of a dealership.
1103. Dealer initiated termination, cancellation, and alteration
of a dealership.
1104. Repurchase of inventory.
1105. Transfer of dealership/family succession.
1106. Warranty obligations.
1107. Indemnification.
1108. Inspection and rejection by the dealer.
1109. Coercion of dealer prohibited.
1110. Preservation of consumer protection statutes.
1111. Private actions.
1112. Powers of the commissioner of motor vehicles.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02690-01-9
S. 200 2
1113. Construction of article.
1114. Notice requirement.
1115. Adjudicatory proceedings.
1116. Judicial review.
1117. Separability.
1118. Savings clause.
§ 1100. Definitions. As used in this article, the following terms shall have the following meanings: 1. "Area of sales responsibility" means the geographical area, agreed to by the dealer and the manufacturer or distributor in the manufacturer/dealer agreement, within which area the dealer has the exclusive right to display or sell the manufacturer's or distributor's new recreation vehicles of a particular linemake to the retail public.
2. "Dealer" means any person, firm, corporation, or business entity licensed or required to be licensed under this article to sell new recreation vehicles to the retail public and who maintains a permanent business establishment including a service and repair facility which offers mechanical services for the recreation vehicles it sells.
3. "Distributor" means any person, firm, corporation, or business entity that purchases new recreation vehicles from manufacturers for resale to dealers.
4. "Factory campaign" means an effort on the part of a warrantor to contact recreation vehicle owners or dealers in order to address a part or equipment issue.
5. "Family member" means a spouse, child, grandchild, parent, sibling, niece, or nephew, or the spouse thereof.
6. "Line-make" means a specific series of recreation vehicle products that:
(a) are identified by a common series trade name or trademark;
(b) are targeted to a particular market segment, as determined by their decor, features, equipment, size, weight, and price range;
(c) have lengths and interior floor plans that distinguish the recreation vehicles from other recreation vehicles with substantially the same decor, equipment, features, price, and weight;
(d) belong to a single, distinct classification of recreation vehicle product type having a substantial degree of commonality in the construction of the chassis, frame, and body; and
(e) the manufacturer/dealer agreement authorizes a dealer to sell.
7. "Manufacturer" means any person, firm, corporation, or business entity that engages in the manufacturing of recreation vehicles.
8. "New recreation vehicle" means a recreation vehicle that has never been sold to the retail public nor titled nor registered in any state.
9. "Manufacturer/dealer agreement" means a written agreement or contract entered into between a manufacturer or distributor and a dealer that fixes the rights and responsibilities of the parties and pursuant to which the dealer sells new recreation vehicles.
10. "Proprietary part" means any part manufactured by or for and sold exclusively by the manufacturer or distributor.
11. "Recreational vehicle" means a motor home or trailer used for recreational camping or seasonal use, that is equipped with a cooking facility with an on-board fuel source; a potable water supply system that includes at least a sink, a faucet and a water tank with an exterior service supply connection, a toilet with exterior evacuation, a gas or electric refrigerator, a heating or air conditioning system with an on-board power or fuel source separate from the vehicle engine, and an electric power system. Recreational vehicle types include the motor
S. 200 3
home, travel trailer, folding camping trailer, truck camper or park model RV as defined in this subdivision.
(a) "Motor home" means a self-propelled recreation vehicle, designed to provide temporary living quarters for recreational, camping or travel use that complies with all the applicable federal vehicle regulations. The unit must contain at least four of the following permanently installed independent life support systems which meet the National Fire Protection Association (NFPA) 1192 Standard for Recreational Vehicles:
(i) a cooking facility with an on-board fuel source;
(ii) a potable water supply system that includes at least a sink, a faucet and a water tank with an exterior service supply connection;
(iii) a toilet with exterior evacuation;
(iv) a gas or electric refrigerator;
(v) a heating or air conditioning system with an on-board power or fuel source separate from the vehicle engine; or
(vi) an electric power system.
(b) "Travel trailer" means a recreation vehicle mounted on wheels, designed to provide temporary living quarters for recreational, camping or travel use that complies with all the applicable federal vehicle regulations and is of such size and weight as to not require a special highway movement permit when towed by a motorized vehicle.
(c) "Fifth wheel trailer" means a recreation vehicle mounted on wheels, designed to provide temporary living quarters for recreational, camping or travel use that complies with all the applicable federal vehicle regulations and is of such size and weight as to not require a special highway movement permit when towed by a motorized vehicle equipped with a towing mechanism that is mounted above or forward of the tow vehicle's rear axle.
(d) "Folding camping trailer" means a recreation vehicle mounted on wheels, designed to provide temporary living quarters for recreational, camping or travel use that complies with all the applicable federal vehicle regulations and is constructed with collapsible partial side walls that fold for towing by another vehicle and unfold at the campsite.
(e) "Truck camper" means a recreation vehicle designed to be loaded onto the back of a pickup truck to provide temporary living quarters for recreational, camping or travel use; provided, however, that nothing in this paragraph shall authorize a dealer to sell or lease new pickup trucks, or include pickup trucks within the definition of "recreation vehicle", and provided, further, that nothing in this paragraph shall remove a dealer of new pickup trucks from subdivision seven of section four hundred sixty-two of the vehicle and traffic law.
(f) "Park model RV" means a recreation vehicle that is:
(i) designed and marketed as temporary living quarters for recreational, camping, travel, or seasonal use;
(ii) not permanently affixed to real property for use as a permanent dwelling;
(iii) built on a single chassis mounted on wheels; and
(iv) certified by the manufacturer as complying with the ANSI A119.5, Park Model RV Standard.
12. "Supplier" means any person, firm, corporation or business entity that engages in the manufacturing of recreation vehicle parts, accessories or components.
13. "Transient customer" means a customer who is temporarily traveling through a dealer's area of sales responsibility.
S. 200 4
14. "Warrantor" means any person, firm, corporation, or business entity, including any manufacturer, distributor or supplier that provides a written warranty to the consumer in connection with a new recreation vehicle or parts, accessories, or components thereof. The term does not include service contracts, mechanical or other insurance or extended warranties sold for separate consideration by a dealer or other person not controlled by a manufacturer or distributor.
§ 1101. Written agreements/designated territories. 1. A manufacturer or distributor may not sell a recreation vehicle in this state to or through a dealer without having first entered into a manufacturer/dealer agreement with a dealer which has been signed by both parties.
2. The manufacturer or distributor shall designate the area of sales responsibility exclusively assigned to a dealer in the manufacturer/dealer agreement and may not change such area or contract with another dealer for sale of the same line-make in the designated area during the duration of the agreement.
3. The area of sales responsibility may not be reviewed or changed without the consent of both parties until one year after the execution of the manufacturer/dealer agreement.
4. A recreation vehicle dealer may not sell a new recreation vehicle in this state without having first entered into a manufacturer/dealer agreement with a manufacturer or distributor which has been signed by both parties.
§ 1102. Manufacturer initiated termination, cancellation, and alteration of a dealership. 1. A manufacturer or distributor, directly or through any authorized officer, agent or employee, may not terminate, cancel or fail to renew a manufacturer/dealer agreement without good cause. If the manufacturer or distributor terminates, cancels or fails to renew the manufacturer/dealer agreement with good cause section eleven hundred four of this article does not apply.
2. The manufacturer or distributor has the burden of showing good cause for terminating, canceling, or failing to renew a manufacturer/dealer agreement with a dealer. For purposes of determining whether there is good cause for the proposed action, any of the following factors may be considered:
(a) The extent of the affected dealer's penetration in the area of sales responsibility.
(b) The nature and extent of the dealer's investment in its business.
(c) The adequacy of the dealer's service facilities, equipment, parts, supplies, and personnel.
(d) The effect of the proposed action on the community.
(e) The extent and quality of the dealer's service under recreation vehicle warranties.
(f) The dealer's failure to follow agreed-upon procedures or standards related to the overall operation of the dealership.
(g) The dealer's performance under the terms of its manufacturer/dealer agreement.
(h) Violation of the manufacturer/dealer agreement.
3. Except as otherwise provided in this section, a manufacturer or distributor shall provide a dealer with at least ninety days prior written notice of termination, cancellation, or nonrenewal of the manufacturer/dealer agreement in the event the dealer is being terminated for good cause.
(a) The notice must state all reasons for the proposed termination, cancellation, or nonrenewal and if the termination, cancellation or nonrenewal is based on lack of performance, the dealer's stocking histo-
S. 200 5
ry and reasonable market performance must be given consideration. A dealer's duty to cure and evaluation of same will include consideration of seasonal volatility of the market. The notice must further state that if, within thirty days following receipt of the notice, the dealer provides to the manufacturer or distributor a written notice of intent to cure all claimed deficiencies, the dealer will then have ninety days following receipt of the original notice to rectify the deficiencies.
(b) If the deficiencies are rectified within ninety days, the manufacturer's or distributor's notice is voided. If the dealer fails to provide the notice of intent to cure the deficiencies or fails to cure the deficiencies in the prescribed time period, the termination, cancellation, or nonrenewal takes effect as provided in the original notice.
(c) The notice period may be reduced to thirty days if the manufacturer's or distributor's grounds for termination, cancellation, or nonrenewal are due to any of the following good cause factors:
(i) a dealer or one of its owners being convicted of, or entering a plea of nolo contendere to, a felony;
(ii) the abandonment or closing of the business operations of the dealer for ten consecutive business days unless the closing is due to an act of God, strike, labor difficulty, or other cause over which the dealer has no control;
(iii) a significant misrepresentation by the dealer materially affecting the business relationship;
(iv) a suspension or revocation of the dealer's license, or refusal to renew the dealer's license, by the department;
(v) a material violation of this article which is not cured within thirty days after the written notice by the manufacturer; or
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to establishing the recreational vehicle dealer agreements
Purpose or general idea of the bill
To regulate the recreation vehicle (RV) market for the purposes of insuring fair business interactions between manufacturers and dealers, to incent competition which will benefit the retail market, and to foster sales of rationally-priced, safe RVs in New York.
This legislation would define the various types of RVs, as well as certain common industry terms generally applicable to manufacturer-deal- er contractual relationships. The legislation will prohibit certain specified anti-competitive, market-disruptive practices by either manufacturers and / or dealers. The Act would provide enforcement mech- anisms analogous to those presently applicable to automobile manufactur- ers and dealers pursuant to Article 17-A of the Vehicle and Traffic Law, although the RV-Dealer Agreements would be contained within the General Business Law, similar to the Vessel Dealer Agreements Law.
Summary of provisions
Section one of the bill is a statement of legislative intent.
Section two of the bill adds a new Article 42 of the General Business Law to establish the terms of Recreation Vehicle Dealer Agreements.
Section three is the effective date; one hundred eighty days after enactment.
Justification
Recreation vehicle manufacturers and dealers do not enter into tradi- tional franchisor-franchisee relationships which are common in the retail automobile sales industry. As a result, the statutory market protections presently, provided to recreation vehicle manufacturers and recreation vehicle dealers in Article 17-A of the Vehicle and Traffic Law are inappropriate. The automobile dealers and manufacturers are governed by the Franchise law in New York State. RV dealers and manufac- turers business relationship is contractual thus the desire to create a new and separate law that better fits the less complicated RV business. It addresses all the key elements of a franchise law with similar rights and protections - just in a simple and more RV centric way. The concept of this legislation is patterned after Chapter 686 of the Laws of 2004 which regulates the terms of vessel dealer agreements.
Sixteen other states presently have statutes that take the uniqueness of recreation vehicles into consideration in their fair marketing laws. The benefits of such protections include, a financially-stable market which insures that consumers will be able to obtain reasonably-priced recre- ation vehicles and do business with recreation vehicle dealers which can provide or facilitate the provision of services and warranty protections. Protections afforded to both recreation vehicle manufactur- ers and recreation vehicle dealers will make New York, a state attrac- tive for recreation vehicle tourism and, a more stable, attractive market environment in which recreational vehicles can and will be sold. This legislation would remove RVs from the automobile franchise statutes because the business models for the auto and RV industries are suffi- ciently different that they should not be governed by the same statute. While both motorhomes and RV trailers make up "recreation vehicles," only motorhomes are covered by the auto franchise law. This legislation would create a separate chapter and cover all RV products.
Legislative history
S. 6030B of 2017/2018; Advanced to Third Reading
Fiscal implications
None.
Effective date
The bill would take effect one hundred days after enactment and apply to all contracts entered into on or after that date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.