Maryland 2024 Regular Session

Maryland Senate Bill SB350 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0350
6	6
7	7	SENATE BILL 350
8	8	R4 4lr1069
9	9	SB 930/23 – JPR
10	10	By: Senator McKay
11	11	Introduced and read first time: January 15, 2024
12	12	Assigned to: Judicial Proceedings
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Motor Vehicles – Recreational Vehicle Dealer Agreements 2
19	19
20	20	FOR the purpose of requiring recreational vehicle dealers to hold a dealer agreement with 3
21	21	a recreational vehicle manufacturer to sell the manufacturer’s recreational vehicles 4
22	22	in the State; altering the required terms and conditions of a recreational dealer 5
23	23	agreement, including terms and conditions related to termination and nonrenewal 6
24	24	of an agreement, transfer of dealer ownership, warranty obligations, dealer 7
25	25	inspection and rejection of recreational vehicles, and prohibited acts, dispute 8
26	26	resolution, and penalties; and generally relating to recreational vehicle dealer 9
27	27	agreements. 10
28	28
29	29	BY adding to 11
30	30	Article – Transportation 12
31	31	Section 15–201.1 and 15–301.1; and 15–1001 through 15–1009 to be under the new 13
32	32	subtitle “Subtitle 10. Recreational Vehicle Dealer Agreements” 14
33	33	Annotated Code of Maryland 15
34	34	(2020 Replacement Volume and 2023 Supplement) 16
35	35
36	36	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
37	37	That the Laws of Maryland read as follows: 18
38	38
39	39	Article – Transportation 19
40	40
41	41	15–201.1. 20
42	42
43	43	THIS SUBTITLE DOES NO T APPLY TO MANUFACTU RERS OF RECREATIONAL 21
44	44	VEHICLES. 22
45	45
46	46	15–301.1. 23
47	47	2 SENATE BILL 350
48	48
49	49
50	50	THIS SUBTITLE DOES NO T APPLY TO DEALERS O F RECREATIONAL VEHIC LES. 1
51	51
52	52	SUBTITLE 10. RECREATIONAL VEHICLE DEALER AGREEMENTS . 2
53	53
54	54	15–1001. 3
55	55
56	56	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 4
57	57	INDICATED. 5
58	58
59	59	(B) “AREA OF SALES” MEANS THE GEOGRAPHIC AL AREA AGREED TO BY THE 6
60	60	DEALER AND THE MANUF ACTURER IN AN AGREEM ENT THAT GRANTS THE DEALER 7
61	61	THE EXCLUSIVE RIGHT TO DISPLAY OR SELL THE MANUF ACTURER’S NEW 8
62	62	RECREATIONAL VEHICLE S OF A PARTICULAR LI NE–MAKE. 9
63	63
64	64	(C) “DEALER” MEANS ANY PERSON , FIRM, CORPORATION , OR BUSINESS 10
65	65	ENTITY LICENSED OR R EQUIRED TO BE LICENS ED TO SELL RECREATIO NAL 11
66	66	VEHICLES. 12
67	67
68	68	(D) “DEALER AGREEMENT ” MEANS A WRITTEN AGRE EMENT OR CONTRACT 13
69	69	ENTERED INTO BETWEEN A DEALER AND A MANUF ACTURER OR DISTRIBUT OR: 14
70	70
71	71	(1) THAT STATES THE RIGHT S AND RESPONSIBILITI ES OF THE 15
72	72	PARTIES; AND 16
73	73
74	74	(2) UNDER WHICH THE DEALE R MAY SELL NEW RECRE ATIONAL 17
75	75	VEHICLES. 18
76	76
77	77	(E) “DISTRIBUTOR” MEANS ANY PERSON THA T PURCHASES NEW 19
78	78	RECREATIONAL VEHICLE S FOR RESALE TO DEAL ERS. 20
79	79
80	80	(F) “FACTORY CAMPAIGN ” MEANS AN EFFORT ON T HE PART OF A 21
81	81	WARRANTOR TO CONTACT RECREATIONAL VEHICLE OWNERS OR DEALERS TO 22
82	82	ADDRESS A PART OR EQ UIPMENT ISSUE. 23
83	83
84	84	(G) “FAMILY MEMBER ” MEANS A SPOUSE , CHILD, GRANDCHILD , PARENT, 24
85	85	SIBLING, NIECE, OR NEPHEW , OR A SPOUSE OF A CHI LD, GRANDCHILD , PARENT, 25
86	86	SIBLING, NIECE, OR NEPHEW. 26
87	87
88	88	(H) “LINE–MAKE” MEANS A SPECIFIC SER IES OF RECREATIONAL VEHICLES 27
89	89	THAT: 28
90	90	SENATE BILL 350 3
91	91
92	92
93	93	(1) IS TARGETED TO A PARTICULAR MARKET SEGMENT , AS 1
94	94	DETERMINED BY ITS DE COR, FEATURES, EQUIPMENT, SIZE, WEIGHT, AND PRICE 2
95	95	RANGE; 3
96	96
97	97	(2) HAS LENGTHS AND INTER IOR FLOOR PLANS THAT DISTINGUISH 4
98	98	THE RECREATIONAL VEH ICLES FROM OTHER SIM ILAR MODELS; AND 5
99	99
100	100	(3) BELONGS TO A S INGLE DISTINCT CLASS IFICATION OF 6
101	101	RECREATIONAL VEHICLE PRODUCT TYPE THAT HA S A SUBSTANTIAL DEGR EE OF 7
102	102	COMMONALITY IN THE C ONSTRUCTION , CHASSIS, FRAME, AND BODY STYLE . 8
103	103
104	104	(I) “MANUFACTURER ” MEANS ANY PERSON ENG AGED IN THE 9
105	105	MANUFACTURING OF REC REATIONAL VEHICLES . 10
106	106
107	107	(J) “MODEL” MEANS A SERIES OF RE CREATIONAL VEHICLE P RODUCTS 11
108	108	IDENTIFIED BY A COMM ON SERIES TRADE NAME OR TRADEMARK . 12
109	109
110	110	(K) “PROPRIETARY PART ” MEANS ANY PART MANUF ACTURED BY, FOR, OR 13
111	111	SOLD EXCLUSIVELY BY THE MANUFACTURER . 14
112	112
113	113	(L) (1) “RECREATIONAL VEHICLE ” MEANS A VEHICLE THAT IS: 15
114	114
115	115	(I) EITHER SELF–PROPELLED OR TOWED B Y A TOW VEHICLE ; 16
116	116	AND 17
117	117
118	118	(II) DESIGNED TO PROVIDE T EMPORARY LIVING QUAR TERS 18
119	119	FOR RECREATIONAL , CAMPING, OR TRAVEL USE . 19
120	120
121	121	(2) “RECREATIONAL VEHICLE ” INCLUDES: 20
122	122
123	123	(I) A MOTOR HOME ; 21
124	124
125	125	(II) A TRAVEL TRAILER ; 22
126	126
127	127	(III) A FIFTH–WHEEL TRAVEL TRAILER ; 23
128	128
129	129	(IV) A TRUCK CAMPER ; AND 24
130	130
131	131	(V) A FOLDING CAMPING TRAI LER. 25
132	132
133	133	(M) “TRANSIENT CUSTOMER ” MEANS A CUSTOMER WHO IS TEMPORARILY 26
134	134	TRAVELING THROUGH A DEALER’S AREA OF SALES. 27
135	135	4 SENATE BILL 350
136	136
137	137
138	138	(N) (1) “WARRANTOR” MEANS ANY PERSON THAT GIVE S A WARRANTY IN 1
139	139	CONNECTION WITH NEW RECREATIONAL VEHICLE PARTS, ACCESSORIES, OR 2
140	140	COMPONENTS . 3
141	141
142	142	(2) “WARRANTOR” DOES NOT INCLUDE SER VICE CONTRACTS , 4
143	143	INSURANCE, OR EXTENDED WARRANTI ES SOLD FOR SEPARATE CONSIDERATION BY 5
144	144	A DEALER OR PERSON N OT AFFILIATED WITH A MANUFACTURER OR DIST RIBUTOR. 6
145	145
146	146	15–1002. 7
147	147
148	148	(A) A MANUFACTURER OR DIST RIBUTOR MAY NOT SELL A RECREATIONAL 8
149	149	VEHICLE IN THE STATE TO OR THROUGH A DEALER WITHOUT HAVIN G FIRST 9
150	150	ENTERED INTO A WRITT EN DEALER AGREEMENT THAT HAS BEEN SIGNED BY BOTH 10
151	151	PARTIES. 11
152	152
153	153	(B) (1) EXCEPT AS SPECIFIED I N PARAGRAPH (2) OF THIS SUBSECTION , 12
154	154	THE MANUFACTURER SHA LL DESIGNATE THE ARE A OF SALES EXCLUSIVE LY 13
155	155	ASSIGNED TO A DEALER IN THE DEALER AGREEM ENT AND MAY NOT MAKE CHANGES 14
156	156	TO THE TERMS SPECIFI ED IN THE AGREEMENT . 15
157	157
158	158	(2) THE TERMS SPECIFIED I N THE DEALER AGREEME NT MAY BE 16
159	159	ALTERED WITH WRITTEN MUTUAL CONSENT OF BO TH PARTIES. 17
160	160
161	161	(C) A DEALER MAY NOT SELL A NEW RECREATIONAL V EHICLE: 18
162	162
163	163	(1) IN THE STATE WITHOUT HAVING ENTERED INTO A DEALE R 19
164	164	AGREEMENT ; AND 20
165	165
166	166	(2) OUTSIDE THE AREA OF SALES DESIGN ATED IN THE DEALER 21
167	167	AGREEMENT . 22
168	168
169	169	(D) (1) A MANUFACTURER OR DIST RIBUTOR SHALL DISTRI BUTE 23
170	170	RECREATIONAL VEHICLE S TO ITS DEALERS IN A FAIR AND EQUITABLE MANNER. 24
171	171
172	172	(2) ON REQUEST , A MANUFACTURER OR DI STRIBUTOR SHALL 25
173	173	PROVIDE INFORMATION ON ITS MANNER OF DISTRIB UTION TO DEALERS . 26
174	174
175	175	(E) A MANUFACTURER OR DIST RIBUTOR SHALL PROVID E ADEQUATE 27
176	176	REPAIR INSTRUCTIONS TO ITS LICENSED DEAL ERS TO FACILITATE TH E DEALERS 28
177	177	PERFORMING PROPER SE RVICE AND REPAIRS ON RECREATIONAL VEHICLE S. 29
178	178
179	179	15–1003. 30
180	180	SENATE BILL 350 5
181	181
182	182
183	183	(A) (1) A MANUFACTURER OR DISTRIB UTOR MAY TERMINATE , CANCEL, 1
184	184	OR FAIL TO RENEW A M ODEL, LINE–MAKE, OR DEALER AGREEMENT WITH A DEALER 2
185	185	ONLY FOR GOOD CAUSE . 3
186	186
187	187	(2) (I) THE MANUFACTURER OR D ISTRIBUTOR HAS THE B URDEN 4
188	188	OF SHOWING GOOD CAUS E FOR THE TERMINATIO N CANCELLATION , OR FAILURE TO 5
189	189	RENEW A MODEL , LINE–MAKE, OR DEALER AGREEMENT WITH A DEALER. 6
190	190
191	191	(II) THE DETERMINATION OF GOOD CAUSE SHALL BE BASED ON: 7
192	192
193	193	1. THE EXTENT OF THE DEA LER’S PENETRATION INTO 8
194	194	THE RELEVANT MARKET AREA FOR THE RELEVAN T MODEL OR LINE –MAKE; 9
195	195
196	196	2. THE ADEQUACY OF THE D EALER’S SERVICE 10
197	197	FACILITIES, EQUIPMENT, PARTS, SUPPLIES, AND PERSONNEL ; 11
198	198
199	199	3. THE EFFECT OF THE PRO POSED ACTION ON THE 12
200	200	COMMUNITY ; 13
201	201
202	202	4. THE EXTENT AND QUALIT Y OF THE DEALER’S SERVICE 14
203	203	UNDER RECREATIONAL V EHICLE WARRANTIES ; AND 15
204	204
205	205	5. THE DEALER’S PERFORMANCE UNDER THE TERMS OF 16
206	206	THE DEALER AGREEMENT . 17
207	207
208	208	(B) ON RENEWAL OF A DEALE R AGREEMENT , A MANUFACTURER OR 18
209	209	DISTRIBUTOR MAY NOT REQUIRE ADDITIONAL I NVENTORY STOCKING 19
210	210	REQUIREMENTS OR INCR EASED SALES TARGETS IN EXCESS OF THE MAR KET 20
211	211	GROWTH IN THE DEALER’S AREA OF SALES. 21
212	212
213	213	(C) (1) EXCEPT AS OTHERWISE P ROVIDED IN THIS SUBS ECTION, A 22
214	214	MANUFACTURER OR DIST RIBUTOR SHALL PROVID E A DEALER WITH WRIT TEN 23
215	215	NOTICE AT LEAST 120 DAYS BEFORE THE TERM INATION, CANCELLATION , OR 24
216	216	NONRENEWAL OF A MODE L, LINE–MAKE, OR DEALER AGREEMENT . 25
217	217
218	218	(2) THE NOTICE SHALL STAT E ALL REASONS FOR TH E PROPOSED 26
219	219	TERMINATION , CANCELLATION , OR NONRENEWAL . 27
220	220
221	221	(3) (I) WITHIN 30 DAYS FOLLOWING RECEI PT OF THE NOTICE , A 28
222	222	DEALER MAY PROVIDE W RITTEN NOTICE OF INT ENT TO RECTIFY ALL C LAIMED 29
223	223	DEFICIENCIES. 30
224	224	6 SENATE BILL 350
225	225
226	226
227	227	(II) IF THE DEFICIENCIES A RE RECTIFIED BY THE DEALER 1
228	228	WITHIN 120 DAYS FOLLOWING THE N OTICE OF INTENT TO R ECTIFY, THE 2
229	229	MANUFACTURER ’S OR DISTRIBUTOR ’S NOTICE OF TERMINAT ION IS VOID. 3
230	230
231	231	(III) SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION , IF A 4
232	232	DEALER FAILS TO PROVIDE T IMELY WRITTEN NOTICE OF INTENT TO RECTIFY OR 5
233	233	FAILS TO RECTIFY WIT HIN 120 DAYS AFTER NOTICE OF INTENT TO RECTIFY , THE 6
234	234	TERMINATION , CANCELLATION , OR NONRENEWAL OF THE DEALER AGREEMENT 7
235	235	SHALL TAKE EFFECT . 8
236	236
237	237	(4) THE 120–DAY NOTICE PERIOD SH ALL BE REDUCED TO 30 DAYS IF 9
238	238	THE TERMINATION , CANCELLATION , OR NONRENEWAL IS DUE TO: 10
239	239
240	240	(I) A DEALER OR ONE OF THE DEALER’S OWNERS BEING 11
241	241	CONVICTED OF , OR ENTERING A PLEA O F NOLO CONTENDERE TO , A FELONY; 12
242	242
243	243	(II) THE ABANDONMENT OR CL OSING OF THE BUSINES S 13
244	244	OPERATIONS OF THE DE ALER FOR 10 CONSECUTIVE BUSINESS DAYS, UNLESS THE 14
245	245	CLOSING IS DUE TO A CAUSE THAT IS OUT OF THE DEALER’S CONTROL; 15
246	246
247	247	(III) A SIGNIFICANT MISREPRE SENTATION BY A DEALE R 16
248	248	MATERIALLY AFFECTING THE BUSINESS RELATIO NSHIP; OR 17
249	249
250	250	(IV) A SUSPENSION OR REVOCA TION OF A DEALER ’S LICENSE, 18
251	251	OR FAILURE BY A DEAL ER TO RENEW A DEALER ’S LICENSE. 19
252	252
253	253	(5) THE NOTICE PROVISIONS OF THIS SECTION DO N OT APPLY IF THE 20
254	254	REASON FOR TERMINATI ON, CANCELLATION , OR NONRENEWAL IS INS OLVENCY, THE 21
255	255	OCCURRENCE OF AN ASS IGNMENT FOR THE BENE FIT OF CREDITORS , OR 22
256	256	BANKRUPTCY . 23
257	257
258	258	(D) (1) A DEALER MAY TERMINATE , CANCEL, OR NOT RENEW A MODEL , A 24
259	259	LINE–MAKE, OR THE DEALER AGREEM ENT WITH A MANUFACTU RER OR 25
260	260	DISTRIBUTOR WITH OR WITHOUT GOOD CAUSE A T ANY TIME BY GIVING 30 DAYS’ 26
261	261	WRITTEN NOTICE TO THE MANUFAC TURER OR DISTRIBUTOR . 27
262	262
263	263	(2) A DETERMINATION OF GOO D CAUSE MAY BE BASED ON: 28
264	264
265	265	(I) A MANUFACTURER OR DIST RIBUTOR BEING CONVIC TED OF, 29
266	266	OR ENTERING A PLEA O F NOLO CONTENDERE TO , A FELONY; 30
267	267	SENATE BILL 350 7
268	268
269	269
270	270	(II) THE BUSINESS OPERATIO NS HAVING BEEN ABAND ONED OR 1
271	271	CLOSED FOR 10 CONSECUTIVE DAYS , UNLESS THE CLOSING I S DUE TO A CAUSE THA T 2
272	272	IS OUT OF THE CONTRO L OF THE MANUFACTURE R OR DISTRIBUTOR ; 3
273	273
274	274	(III) A SIGNIFICANT MISREPRE SENTATION BY THE 4
275	275	MANUFACTURER OR DIST RIBUTOR THAT MATERIA LLY AFFECTS THE BUSI NESS 5
276	276	RELATIONSHIP; 6
277	277
278	278	(IV) A DECLARATION BY THE M ANUFACTURER OR DISTR IBUTOR 7
279	279	OF INSOLVENCY , THE OCCURRENCE OF AN ASSIGNMENT FOR THE B ENEFIT OF 8
280	280	CREDITORS, OR BANKRUPTCY ; 9
281	281
282	282	(V) A MANUFACTURER ’S OR DISTRIBUTOR ’S MATERIAL 10
283	283	VIOLATION OF THE DEA LER AGREEMENT THAT I S NOT CURED WITHIN 120 DAYS 11
284	284	AFTER WRITTEN NOTICE TO THE DEALER ; OR 12
285	285
286	286	(VI) A MANUFACTURER OR DIST RIBUTOR VIOLATING AN AREA 13
287	287	OF SALES PROTECTION OR ALLOWING OTHER DE ALERS TO VIOLATE AN AREA OF 14
288	288	SALES PROTECTION . 15
289	289
290	290	(E) IF THE DEALER AGREEME NT IS TERMINATED , CANCELED, OR NOT 16
291	291	RENEWED BY THE DEALE R FOR GOOD CAUSE , WITHIN 45 DAYS AFTER THE 17
292	292	TERMINATION , CANCELLATION , OR NONRENEWAL , THE MANUFACTURER OR 18
293	293	DISTRIBUTOR SHALL , AT REQUEST OF THE DE ALER, REPURCHASE : 19
294	294
295	295	(1) ALL NEW , UNALTERED , UNDAMAGED , AND UNTITLED 20
296	296	RECREATION AL VEHICLES THAT WER E ACQUIRED FROM THE MANUFACTURER OR 21
297	297	DISTRIBUTOR WITHIN 18 MONTHS BEFORE THE TE RMINATION, CANCELLATION , OR 22
298	298	NONRENEWAL , AT 100% OF THE INVOICE COST , INCLUDING TRANSPORTA TION 23
299	299	COSTS, EXCEPT THAT IF ANY R ECREATIONAL VEHICLE IS DAMAGED, THE AMOUNT 24
300	300	DUE TO THE DEALER SH ALL BE REDUCED BY TH E COST TO REPAIR THE DAMAGE; 25
301	301
302	302	(2) ALL NEW, UNDAMAGED ACCESSORIE S AND PROPRIETARY PA RTS 26
303	303	WITH THE ORIGINAL IN VOICE SOLD TO THE DE ALER FOR RESALE WITH IN 12 MONTHS 27
304	304	BEFORE THE TERMINATI ON, CANCELLATION , OR NONRENE WAL OF THE DEALER 28
305	305	AGREEMENT , AT 105% OF THE DEALER ’S ORIGINAL PRICE PAI D; AND 29
306	306
307	307	(3) ANY PROPERLY FUNCTION ING DIAGNOSTIC EQUIP MENT, 30
308	308	SPECIALTY TOOLS , CURRENT SIGNAGE , OR OTHER EQUIPMENT A ND MACHINERY 31
309	309	THAT WAS PURCHASED W ITHIN 5 YEARS BEFORE THE TER MINATION, 32
310	310	CANCELLATION , OR NONRENEWAL AND CA N NO LONGER BE USED IN THE NORMAL 33
311	311	COURSE OF BUSINESS , AT 100% OF THE DEALER ’S ORIGINAL PRICE PAI D, PLUS 34
312	312	FREIGHT, DESTINATION, DELIVERY, AND ANY APPLICABLE T AX. 35 8 SENATE BILL 350
313	313
314	314
315	315
316	316	(F) IF THE DEALER AGREEME NT IS TERMINATED , CANCELED, OR NOT 1
317	317	RENEWED BY THE MANUF ACTURER OR DISTRIBUT OR WITHOUT GOOD CAUS E, THE 2
318	318	MANUFACTURER OR DIST RIBUTOR SHALL REPURC HASE DEALER INVENTOR Y AS 3
319	319	PROVIDED IN SUBSECTI ON (E) OF THIS SECTION. 4
320	320
321	321	(G) A DEALER IS NOT PROHIB ITED FROM SELLING TH E REMAINING 5
322	322	IN–STOCK INVENTORY OF A PARTICULAR MODE L OR LINE–MAKE AFTER A DEALER 6
323	323	AGREEMENT HAS BEEN T ERMINATED, CANCELED, OR NOT RENEWED BY TH E 7
324	324	MANUFACTURER OR DIST RIBUTOR. 8
325	325
326	326	(H) WHEN TAKING ON AN ADD ITIONAL LINE–MAKE OF A RECREATION AL 9
327	327	VEHICLE, A DEALER SHALL NOTIF Y IN WRITING ANY MAN UFACTURER OR 10
328	328	DISTRIBUTOR WITH WHO M THE DEALER HAS A D EALER AGREEMENT OF T HE SAME 11
329	329	LINE–MAKE AT LEAST 30 DAYS BEFORE ENTERING INTO A DEALER AGREEM ENT FOR 12
330	330	THE ADDITIONAL LINE –MAKE. 13
331	331
332	332	15–1004. 14
333	333
334	334	(A) (1) IF A DEALER DESIRES T O MAKE A TRANSFER IN OWNERSHIP BY 15
335	335	SALE OF THE BUSINESS AS SETS, STOCK TRANSFER , OR ANY OTHER METHOD , THE 16
336	336	DEALER SHALL GIVE A MANUFACTURER OR DIST RIBUTOR THAT HAS ENT ERED INTO 17
337	337	A DEALER AGREEMENT W ITH THE DEALER WRITT EN NOTICE AT LEAST 10 BUSINESS 18
338	338	DAYS BEFORE THE TRAN SFER, INCLUDING ALL SUPPOR TING DOCUMENTATION AS 19
339	339	MAY BE REASONABLY RE QUIRED BY THE MANUFA CTURER OR DISTRIBUTO R TO 20
340	340	DETERMINE WHETHER AN OBJECTION TO THE TRANSFER MAY BE MADE . 21
341	341
342	342	(2) A MANUFACTURER OR DIST RIBUTOR MAY NOT OBJE CT TO THE 22
343	343	PROPOSED TRANSFER OF OWNERSHIP UNLESS THE PROSPECTIV E TRANSFEREE 23
344	344	WITHIN THE PRIOR 10 YEARS: 24
345	345
346	346	(I) HAS BEEN TERMINATED F OR CAUSE BY THE 25
347	347	MANUFACTURER OR DIST RIBUTOR; 26
348	348
349	349	(II) HAS BEEN CONVICTED OF A FELONY OR ANY CRIM E OF 27
350	350	MORAL TURPITUDE ; 28
351	351
352	352	(III) LACKS ANY DEALER LICE NSE REQUIRED BY LAW ; 29
353	353
354	354	(IV) LACKS AN ACTIVE LINE OF CREDI T SUFFICIENT TO 30
355	355	PURCHASE THE MANUFAC TURER’S OR DISTRIBUTOR ’S PRODUCT; OR 31
356	356	SENATE BILL 350 9
357	357
358	358
359	359	(V) HAS UNDERGONE BANKRUP TCY, INSOLVENCY, A GENERAL 1
360	360	ASSIGNMENT FOR THE B ENEFIT OF CREDITORS , OR THE APPOINTMENT O F A 2
361	361	RECEIVER, TRUSTEE, OR CONSERVATOR TO TA KE POSSESSION OF THE 3
362	362	TRANSFEREE ’S BUSINESS PROPERTY . 4
363	363
364	364	(B) (1) IF THE MANUFACTURER O R DISTRIBUTOR OBJECT S TO A 5
365	365	PROPOSED CHANGE OF O WNERSHIP, THE MANUFACTURER OR DISTRIBUTOR SHALL 6
366	366	GIVE WRITTEN NOTICE TO THE DEALER WITHIN 7 BUSINESS DAYS AFTER RECEIPT 7
367	367	OF THE DEALER’S NOTIFICATION AND C OMPLETE DOCUMENTATIO N. 8
368	368
369	369	(2) IF THE MANUFACTURER O R DISTRIBUTOR DOES N OT GIVE TIMELY 9
370	370	NOTICE OF THE OBJECT ION, THE TRANSFER SHALL B E DEEMED APPROVED . 10
371	371
372	372	(C) (1) A DEALER SHALL HAVE AN OPPORTUNITY TO DESIG NATE, IN 11
373	373	WRITING, A FAMILY MEMBER AS A SUCCESSO R TO THE DEALER ’S BUSINESS IN THE 12
374	374	EVENT OF DEATH , INCAPACITY, OR RETIREMENT OF THE DEALER. 13
375	375
376	376	(2) A MANUFACTURER OR DIST RIBUTOR MAY ONLY OBJ ECT TO THE 14
377	377	SUCCESSOR WITHIN 10 BUSINESS DAYS AFTER RECEIPT OF THE DEALE R’S 15
378	378	SUCCESSION PLAN IF T HE SUCCESSOR : 16
379	379
380	380	(I) WAS CONVICTED OF A FE LONY OR CRIME OF MOR AL 17
381	381	TURPITUDE; 18
382	382
383	383	(II) DECLARED BANKRUPTCY O R INSOLVENCY WITHIN THE 19
384	384	PRIOR 10 YEARS; 20
385	385
386	386	(III) LACKS AN ACTIVE LINE OF CREDIT SUFFICIENT TO 21
387	387	PURCHASE THE MANUFAC TURER’S OR DISTRIBUTOR ’S PRODUCT; 22
388	388
389	389	(IV) LACKS ANY DEALER ’S LICENSE REQUIRED B Y LAW; OR 23
390	390
391	391	(V) WOULD CAUSE OR HAS CA USED A BREACH OF THE DEALER 24
392	392	AGREEMENT . 25
393	393
394	394	15–1005. 26
395	395
396	396	(A) (1) EACH WARRANTOR SHALL : 27
397	397
398	398	(I) SPECIFY IN WRITING EA CH DEALER’S OBLIGATIONS FOR 28
399	399	PREPARATION , DELIVERY, AND WARRA NTY SERVICE FOR THE WARRANTOR ’S 29
400	400	PRODUCTS; 30
401	401	10 SENATE BILL 350
402	402
403	403
404	404	(II) COMPENSATE THE DEALER FOR WARRANTY SERVICE 1
405	405	PERFORMED BY THE DEA LER THAT IS COVERED BY THE WARRANTY ; AND 2
406	406
407	407	(III) PROVIDE THE DEALER A SCHEDULE OF COMPENSA TION TO 3
408	408	BE PAID AND THE REAS ONABLE TIME ALLOWANC E FOR THE PERFORMANCE OF ANY 4
409	409	SERVICE AND REPAIRS UNDER A WARRANTY . 5
410	410
411	411	(2) IF THE SCHEDULE OF CO MPENSATION DOES NOT INCLUDE A 6
412	412	PARTICULAR SERVICE O R REPAIR, A WARRANTOR SHALL RE IMBURSE THE DEALER 7
413	413	A REASONABLE AMOUNT FOR THE SERVICE OR R EPAIR. 8
414	414
415	415	(B) (1) A WARRANTOR SHALL REIM BURSE THE DEALER FOR ANY 9
416	416	WARRANTY PART AT WHO LESALE COST PLUS A 30% HANDLING CHARGE . 10
417	417
418	418	(2) THE MAXIMUM HANDLING CHARGE UNDER THIS SU BSECTION IS 11
419	419	$300. 12
420	420
421	421	(3) A WARRANTOR SHALL REIM BURSE A DEALER THE C OST OF 13
422	422	FREIGHT TO RETURN A WARRANTY PART, AN ACCESSORY , OR A COMPONENT TO TH E 14
423	423	WARRANTOR , IF THE RETURN IS REQ UESTED BY THE WARRAN TOR. 15
424	424
425	425	(C) WARRANTY AUDITS OF DE ALER RECORDS MAY BE CONDUCTED BY THE 16
426	426	WARRANTOR ON A REASO NABLE BASIS. 17
427	427
428	428	(D) (1) A DEALER SHALL SUBMIT A WARRANTY CLAIM WIT HIN 45 DAYS 18
429	429	AFTER COMPLETING THE WORK. 19
430	430
431	431	(2) A WARRANTOR MAY DISAPP ROVE WARRANTY CLAIMS ONLY: 20
432	432
433	433	(I) IN WRITING; 21
434	434
435	435	(II) WITHIN 45 DAYS AFTER THE DATE THE WARRANTY CLAIM 22
436	436	WAS SUBMITTED BY THE DEALER; AND 23
437	437
438	438	(III) IN THE MANNER PRESCRIBE D BY THE WARRANTOR . 24
439	439
440	440	(3) CLAIMS NOT DISAPPROVE D IN WRITING WITHIN 45 DAYS SHALL 25
441	441	BE DEEMED TO BE APPR OVED AND SHALL BE PA ID BY THE WARRANTOR WITHIN 60 26
442	442	DAYS. 27
443	443
444	444	(E) A DEALER SHALL GIVE NO TICE TO A WARRANTOR AS SOON AS 28
445	445	REASONABLY POSSIBLE IF THE DEALER IS UNA BLE OR UNWILLING TO PERFORM 29
446	446	MATERIAL OR REPETITI VE WARRANTY REPAIRS . 30 SENATE BILL 350 11
447	447
448	448
449	449
450	450	(F) IT IS A VIOLATION OF THIS SECTION FOR ANY WARRANTOR TO : 1
451	451
452	452	(1) FAIL TO PERFORM ANY O F ITS WARRANTY OBLIG ATIONS WITH 2
453	453	RESPECT TO ITS WARRA NTED PRODUCTS ; 3
454	454
455	455	(2) FAIL TO INCLUDE WRITT EN NOTICES OF FACTOR Y CAMPAIGNS TO 4
456	456	RECREATIONAL VEHICLE OWNERS AND DEALERS F OR THE EXPECTED DATE BY 5
457	457	WHICH PARTS AND EQUI PMENT WILL BE AVAILA BLE TO DEALERS TO PE RFORM THE 6
458	458	CAMPAIGN WORK ; 7
459	459
460	460	(3) IF THE CARRIER IS DES IGNATED BY THE MANUF ACTURER, 8
461	461	DISTRIBUTOR, OR WARRANTOR , FAIL TO COMPENSATE A DEALER F OR AUTHORIZED 9
462	462	REPAIRS PERFORMED BY A DEALER FOR A PRODU CT DAMAGED IN TRANSI T TO THE 10
463	463	DEALER; 11
464	464
465	465	(4) FAIL TO COMPENSATE AN Y DEALER FOR AUTHORI ZED WARRANTY 12
466	466	SERVICE IN ACCORDANC E WITH THE TIME ALLO WANCES SET FORTH IN THE 13
467	467	SCHEDULE OF COMPENS ATION, IF PERFORMED IN A TI MELY MANNER ; 14
468	468
469	469	(5) INTENTIONALLY MISREPR ESENT TO PURCHASERS OF 15
470	470	RECREATIONAL VEHICLE S THAT A DEALER IS A WARRANTOR OR CO –WARRANTOR ; 16
471	471	OR 17
472	472
473	473	(6) REQUIRE A DEALER TO M AKE WARRANTIES TO CU STOMERS IN 18
474	474	ANY MANNER RELATED T O THE MANUFACTU RING OF A RECREATION AL VEHICLE. 19
475	475
476	476	(G) IT IS A VIOLATION OF THIS SECTION FOR A D EALER TO: 20
477	477
478	478	(1) FAIL TO PERFORM PREDE LIVERY INSPECTION FU NCTIONS AS 21
479	479	SPECIFIED BY THE WAR RANTOR; 22
480	480
481	481	(2) FAIL TO PERFORM WARRA NTY SERVICE WORK AUT HORIZED BY 23
482	482	THE WARRANTOR IN A R EASONABLY TIMELY MANN ER ON ANY TRANSIENT 24
483	483	CUSTOMER’S RECREATIONAL VEHIC LE OF THE SAME LINE –MAKE; 25
484	484
485	485	(3) FAIL TO TRACK ACTUAL TIME EXPENDED TO PER FORM WARRANTY 26
486	486	WORK NOT GOVERNED BY TIME ALLOWANCE IN TH E SCHEDULE OF COMPEN SATION; 27
487	487
488	488	(4) CLAIM AN AGENCY RELAT IONSHIP WITH A WARRANT OR; OR 28
489	489
490	490	(5) MISREPRESENT THE TERM S OF A WARRANTY . 29
491	491	12 SENATE BILL 350
492	492
493	493
494	494	(H) UNLESS SPECIFIED IN T HE TERMS OF A DEALER AGREEMENT , IT IS A 1
495	495	VIOLATION OF THIS SE CTION FOR: 2
496	496
497	497	(1) A WARRANTOR TO FAIL TO INDEMNIFY, DEFEND, AND HOLD 3
498	498	HARMLESS A DEALER AG AINST ANY LOSSES OR DAMAGES TO THE EXTENT THE 4
499	499	LOSSES OR DAMAGES AR E CAUSED BY THE NEGL IGENCE OR MISCONDUCT OF THE 5
500	500	WARRANTOR ; OR 6
501	501
502	502	(2) A DEALER TO FAIL TO IN DEMNIFY, DEFEND, AND HOLD HARMLESS 7
503	503	A WARRANTOR AGAINST ANY LOSSES OR DAMAGE S TO THE EXTENT THE LOSSES OR 8
504	504	DAMAGES ARE CAUSED BY THE NEGLIGENCE OR MI SCONDUCT OF THE DEAL ER. 9
505	505
506	506	(I) INDEMNIFICATION UNDER THIS SUBSECTION SHAL L INCLUDE COURT 10
507	507	COSTS, REASONABLE ATTORNEY ’S FEES, AND EXPERT WITNESS F EES INCURRED BY 11
508	508	THE DEFENDING PARTY . 12
509	509
510	510	15–1006. 13
511	511
512	512	(A) WHEN A NEW RECREATION AL VEHICLE IS DAMAGE D BEFORE TRANSIT 14
513	513	TO THE DEALER , OR IS DAMAGED IN TRA NSIT TO THE DEALER A ND THE 15
514	514	MANUFACTURER OR DIST RIBUTOR WAS RESPONSI BLE FOR TRANSIT , THE DEALER 16
515	515	SHALL: 17
516	516
517	517	(1) NOTIFY THE MANUFACTUR ER OR DISTRIBUTOR OF THE DAMAGE 18
518	518	WITHIN THE TIME FRAME SPECIFIED IN THE DEA LER AGREEMENT ; 19
519	519
520	520	(2) REQUEST AUTHORIZATION TO REPLACE THE COMPO NENTS, 20
521	521	PARTS, OR ACCESSORIES DAMAG ED; AND 21
522	522
523	523	(3) REJECT THE RECREATION AL VEHICLE WITHIN 2 DAYS AFTER 22
524	524	PHYSICAL DELIVERY OF THE RECREATIONAL VEH ICLE. 23
525	525
526	526	(B) (1) IF A DEALER DETERMINE S THAT A RECREATIONA L VEHICLE AT 24
527	527	THE TIME OF DELIVERY HAS AN UNREASONABLE AMOUNT OF MILES ON T HE 25
528	528	ODOMETER , THE RECREATIONAL VEH ICLE MAY BE SUBJECT TO REJECTION BY THE 26
529	529	DEALER AND REVERSION OF THE RECREATIONAL VEHICLE TO THE MANUF ACTURER 27
530	530	OR DISTRIBUTOR . 28
531	531
532	532	(2) A DEALER MAY NOT DEEM LESS THAN THE DISTAN CE BETWEEN 29
533	533	THE DEALER AND THE M ANUFACTURER ’S FACTORY OR A DISTR IBUTOR’S POINT OF 30
534	534	DISTRIBUTION, AS APPROPRIATE , PLUS 100 MILES AS AN UNREASON ABLE AMOUNT 31
535	535	OF MILES. 32
536	536	SENATE BILL 350 13
537	537
538	538
539	539	15–1007. 1
540	540
541	541	(A) (1) IN THIS SECTION, “COERCE” MEANS TO COMPEL OR A TTEMPT TO 2
542	542	COMPEL BY THREAT OF HARM, BREACH OF CONTRACT , OR OTHER ADVERSE ACT ION 3
543	543	OR CONSEQUENCES , INCLUDING THE LOSS O F ANY INCENTIVE OR O THER BENEFIT 4
544	544	MADE AVAILABLE TO OT HER DEALERS OF THE S AME LINE–MAKE IN THE STATE. 5
545	545
546	546	(2) “COERCE” INCLUDES THREATENING TO TERMINATE , CANCEL, OR 6
547	547	NOT RENEW A DEALER A GREEMENT WITHOUT GOO D CAUSE, OR HOLD OR DELAY 7
548	548	PRODUCT DELIVERY . 8
549	549
550	550	(B) A MANUFACTURER OR DIST RIBUTOR, WHETHER DIRECTLY OR 9
551	551	THROUGH AN AGENT , AN EMPLOYEE , AN AFFILIATE, OR A REPRESENTATIVE , MAY 10
552	552	NOT COERCE OR ATTEMP T TO COERCE A DEALER TO: 11
553	553
554	554	(1) PURCHASE A PRODUCT TH E DEALER DID NOT ORD ER; 12
555	555
556	556	(2) ENTER INTO AN AGREEME NT WITH THE MANUFACT URER OR 13
557	557	DISTRIBUTOR; 14
558	558
559	559	(3) TAKE ACTION THAT IS U NFAIR OR UNREASONABL E TO THE 15
560	560	DEALER; OR 16
561	561
562	562	(4) FORGO EXERCISING A RI GHT AUTHORIZED BY A DEALER 17
563	563	AGREEMENT OR ANY LAW GOVERNING THE BUSINE SS RELATIONSHIP . 18
564	564
565	565	15–1008. 19
566	566
567	567	(A) NOTWITHSTANDING ANY A DMINISTRATIVE OR CRI MINAL SANCTIONS 20
568	568	IMPOSED BY THIS SUBT ITLE, IF A PERSON SUFFERS FINANCIAL INJURY OR OTHER 21
569	569	DAMAGE AS A RESULT O F A VIOLATION OF THI S SUBTITLE BY ANY OT HER PERSON, 22
570	570	WHETHER OR NOT THAT OTHER PERSON HAS BEE N FOUND GUILTY OF A CRIMINAL 23
571	571	VIOLATION, THE INJURED PERSON M AY RECOVER DAMAGES A ND REASONABLE 24
572	572	ATTORNEY’S FEES IN ANY COURT OF COMPETENT JUR ISDICTION. 25
573	573
574	574	(B) (1) BEFORE BRINGING A CIV IL ACTION UNDER THIS SECTION, THE 26
575	575	PARTY BRINGING THE A CTION SHALL SERVE A WRITTEN DEMAND FOR M EDIATION 27
576	576	ON THE OFFENDING PAR TY. 28
577	577
578	578	(2) THE PARTIES TO MEDIAT ION SHALL PAY THEIR OWN COSTS FOR 29
579	579	ATTORNEY’S FEES AND DIVID E THE MEDIATOR COST EQUALLY. 30
580	580	14 SENATE BILL 350
581	581
582	582
583	583	(3) THIS SUBSECTION DOES NOT APPLY TO AN ACTI ON FOR 1
584	584	INJUNCTIVE RELIEF . 2
585	585
586	586	(C) A DEALER, MANUFACTURER , DISTRIBUTOR, OR WARRANTOR MAY 3
587	587	APPLY FOR A GRANT OF INJUNCTIVE RELIEF FR OM A VIOLATION OF TH IS SUBTITLE 4
588	588	OR A REFUSAL TO COMP LY WITH A REQUIREMEN T OF THIS SUBTITLE. 5
589	589
590	590	15–1009. 6
591	591
592	592	(A) THE ADMINISTRATION MAY SU SPEND OR REVOKE ANY DEALER’S, 7
593	593	MANUFACTURER ’S, OR DISTRIBUTOR ’S LICENSE ON A FINDI NG THAT A PARTY 8
594	594	VIOLATED THIS SUBTIT LE. 9
595	595
596	596	(B) THE ADMINISTRATION MAY IM POSE A FINE NOT EXCE EDING $1,000 FOR 10
597	597	EACH VIOLATION OF TH IS SUBTITLE. 11
598	598
599	599	(C) A DEALER, MANUFACTURER , DISTRIBUTOR, OR WARRANTOR IS 12
600	600	ENTITLED TO A HEARIN G UNDER TITLE 12, SUBTITLE 2 OF THIS ARTICLE TO 13
601	601	CONTEST AN ACTION OR A FINE IMPOSED UNDER T HIS SECTION. 14
602	602
603	603	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
604	604	October 1, 2024. 16