EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0350*
SENATE BILL 350
R4 4lr1069
SB 930/23 – JPR
By: Senator McKay
Introduced and read first time: January 15, 2024
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Motor Vehicles – Recreational Vehicle Dealer Agreements 2
FOR the purpose of requiring recreational vehicle dealers to hold a dealer agreement with 3
a recreational vehicle manufacturer to sell the manufacturer’s recreational vehicles 4
in the State; altering the required terms and conditions of a recreational dealer 5
agreement, including terms and conditions related to termination and nonrenewal 6
of an agreement, transfer of dealer ownership, warranty obligations, dealer 7
inspection and rejection of recreational vehicles, and prohibited acts, dispute 8
resolution, and penalties; and generally relating to recreational vehicle dealer 9
agreements. 10
BY adding to 11
Article – Transportation 12
Section 15–201.1 and 15–301.1; and 15–1001 through 15–1009 to be under the new 13
subtitle “Subtitle 10. Recreational Vehicle Dealer Agreements” 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2023 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Transportation 19
15–201.1. 20
THIS SUBTITLE DOES NO T APPLY TO MANUFACTU RERS OF RECREATIONAL 21
VEHICLES. 22
15–301.1. 23
2 SENATE BILL 350
THIS SUBTITLE DOES NO T APPLY TO DEALERS O F RECREATIONAL VEHIC LES. 1
SUBTITLE 10. RECREATIONAL VEHICLE DEALER AGREEMENTS . 2
15–1001. 3
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 4
INDICATED. 5
(B) “AREA OF SALES” MEANS THE GEOGRAPHIC AL AREA AGREED TO BY THE 6
DEALER AND THE MANUF ACTURER IN AN AGREEM ENT THAT GRANTS THE DEALER 7
THE EXCLUSIVE RIGHT TO DISPLAY OR SELL THE MANUF ACTURER’S NEW 8
RECREATIONAL VEHICLE S OF A PARTICULAR LI NE–MAKE. 9
(C) “DEALER” MEANS ANY PERSON , FIRM, CORPORATION , OR BUSINESS 10
ENTITY LICENSED OR R EQUIRED TO BE LICENS ED TO SELL RECREATIO NAL 11
VEHICLES. 12
(D) “DEALER AGREEMENT ” MEANS A WRITTEN AGRE EMENT OR CONTRACT 13
ENTERED INTO BETWEEN A DEALER AND A MANUF ACTURER OR DISTRIBUT OR: 14
(1) THAT STATES THE RIGHT S AND RESPONSIBILITI ES OF THE 15
PARTIES; AND 16
(2) UNDER WHICH THE DEALE R MAY SELL NEW RECRE ATIONAL 17
VEHICLES. 18
(E) “DISTRIBUTOR” MEANS ANY PERSON THA T PURCHASES NEW 19
RECREATIONAL VEHICLE S FOR RESALE TO DEAL ERS. 20
(F) “FACTORY CAMPAIGN ” MEANS AN EFFORT ON T HE PART OF A 21
WARRANTOR TO CONTACT RECREATIONAL VEHICLE OWNERS OR DEALERS TO 22
ADDRESS A PART OR EQ UIPMENT ISSUE. 23
(G) “FAMILY MEMBER ” MEANS A SPOUSE , CHILD, GRANDCHILD , PARENT, 24
SIBLING, NIECE, OR NEPHEW , OR A SPOUSE OF A CHI LD, GRANDCHILD , PARENT, 25
SIBLING, NIECE, OR NEPHEW. 26
(H) “LINE–MAKE” MEANS A SPECIFIC SER IES OF RECREATIONAL VEHICLES 27
THAT: 28
SENATE BILL 350 3
(1) IS TARGETED TO A PARTICULAR MARKET SEGMENT , AS 1
DETERMINED BY ITS DE COR, FEATURES, EQUIPMENT, SIZE, WEIGHT, AND PRICE 2
RANGE; 3
(2) HAS LENGTHS AND INTER IOR FLOOR PLANS THAT DISTINGUISH 4
THE RECREATIONAL VEH ICLES FROM OTHER SIM ILAR MODELS; AND 5
(3) BELONGS TO A S INGLE DISTINCT CLASS IFICATION OF 6
RECREATIONAL VEHICLE PRODUCT TYPE THAT HA S A SUBSTANTIAL DEGR EE OF 7
COMMONALITY IN THE C ONSTRUCTION , CHASSIS, FRAME, AND BODY STYLE . 8
(I) “MANUFACTURER ” MEANS ANY PERSON ENG AGED IN THE 9
MANUFACTURING OF REC REATIONAL VEHICLES . 10
(J) “MODEL” MEANS A SERIES OF RE CREATIONAL VEHICLE P RODUCTS 11
IDENTIFIED BY A COMM ON SERIES TRADE NAME OR TRADEMARK . 12
(K) “PROPRIETARY PART ” MEANS ANY PART MANUF ACTURED BY, FOR, OR 13
SOLD EXCLUSIVELY BY THE MANUFACTURER . 14
(L) (1) “RECREATIONAL VEHICLE ” MEANS A VEHICLE THAT IS: 15
(I) EITHER SELF–PROPELLED OR TOWED B Y A TOW VEHICLE ; 16
AND 17
(II) DESIGNED TO PROVIDE T EMPORARY LIVING QUAR TERS 18
FOR RECREATIONAL , CAMPING, OR TRAVEL USE . 19
(2) “RECREATIONAL VEHICLE ” INCLUDES: 20
(I) A MOTOR HOME ; 21
(II) A TRAVEL TRAILER ; 22
(III) A FIFTH–WHEEL TRAVEL TRAILER ; 23
(IV) A TRUCK CAMPER ; AND 24
(V) A FOLDING CAMPING TRAI LER. 25
(M) “TRANSIENT CUSTOMER ” MEANS A CUSTOMER WHO IS TEMPORARILY 26
TRAVELING THROUGH A DEALER’S AREA OF SALES. 27
4 SENATE BILL 350
(N) (1) “WARRANTOR” MEANS ANY PERSON THAT GIVE S A WARRANTY IN 1
CONNECTION WITH NEW RECREATIONAL VEHICLE PARTS, ACCESSORIES, OR 2
COMPONENTS . 3
(2) “WARRANTOR” DOES NOT INCLUDE SER VICE CONTRACTS , 4
INSURANCE, OR EXTENDED WARRANTI ES SOLD FOR SEPARATE CONSIDERATION BY 5
A DEALER OR PERSON N OT AFFILIATED WITH A MANUFACTURER OR DIST RIBUTOR. 6
15–1002. 7
(A) A MANUFACTURER OR DIST RIBUTOR MAY NOT SELL A RECREATIONAL 8
VEHICLE IN THE STATE TO OR THROUGH A DEALER WITHOUT HAVIN G FIRST 9
ENTERED INTO A WRITT EN DEALER AGREEMENT THAT HAS BEEN SIGNED BY BOTH 10
PARTIES. 11
(B) (1) EXCEPT AS SPECIFIED I N PARAGRAPH (2) OF THIS SUBSECTION , 12
THE MANUFACTURER SHA LL DESIGNATE THE ARE A OF SALES EXCLUSIVE LY 13
ASSIGNED TO A DEALER IN THE DEALER AGREEM ENT AND MAY NOT MAKE CHANGES 14
TO THE TERMS SPECIFI ED IN THE AGREEMENT . 15
(2) THE TERMS SPECIFIED I N THE DEALER AGREEME NT MAY BE 16
ALTERED WITH WRITTEN MUTUAL CONSENT OF BO TH PARTIES. 17
(C) A DEALER MAY NOT SELL A NEW RECREATIONAL V EHICLE: 18
(1) IN THE STATE WITHOUT HAVING ENTERED INTO A DEALE R 19
AGREEMENT ; AND 20
(2) OUTSIDE THE AREA OF SALES DESIGN ATED IN THE DEALER 21
AGREEMENT . 22
(D) (1) A MANUFACTURER OR DIST RIBUTOR SHALL DISTRI BUTE 23
RECREATIONAL VEHICLE S TO ITS DEALERS IN A FAIR AND EQUITABLE MANNER. 24
(2) ON REQUEST , A MANUFACTURER OR DI STRIBUTOR SHALL 25
PROVIDE INFORMATION ON ITS MANNER OF DISTRIB UTION TO DEALERS . 26
(E) A MANUFACTURER OR DIST RIBUTOR SHALL PROVID E ADEQUATE 27
REPAIR INSTRUCTIONS TO ITS LICENSED DEAL ERS TO FACILITATE TH E DEALERS 28
PERFORMING PROPER SE RVICE AND REPAIRS ON RECREATIONAL VEHICLE S. 29
15–1003. 30
SENATE BILL 350 5
(A) (1) A MANUFACTURER OR DISTRIB UTOR MAY TERMINATE , CANCEL, 1
OR FAIL TO RENEW A M ODEL, LINE–MAKE, OR DEALER AGREEMENT WITH A DEALER 2
ONLY FOR GOOD CAUSE . 3
(2) (I) THE MANUFACTURER OR D ISTRIBUTOR HAS THE B URDEN 4
OF SHOWING GOOD CAUS E FOR THE TERMINATIO N CANCELLATION , OR FAILURE TO 5
RENEW A MODEL , LINE–MAKE, OR DEALER AGREEMENT WITH A DEALER. 6
(II) THE DETERMINATION OF GOOD CAUSE SHALL BE BASED ON: 7
1. THE EXTENT OF THE DEA LER’S PENETRATION INTO 8
THE RELEVANT MARKET AREA FOR THE RELEVAN T MODEL OR LINE –MAKE; 9
2. THE ADEQUACY OF THE D EALER’S SERVICE 10
FACILITIES, EQUIPMENT, PARTS, SUPPLIES, AND PERSONNEL ; 11
3. THE EFFECT OF THE PRO POSED ACTION ON THE 12
COMMUNITY ; 13
4. THE EXTENT AND QUALIT Y OF THE DEALER’S SERVICE 14
UNDER RECREATIONAL V EHICLE WARRANTIES ; AND 15
5. THE DEALER’S PERFORMANCE UNDER THE TERMS OF 16
THE DEALER AGREEMENT . 17
(B) ON RENEWAL OF A DEALE R AGREEMENT , A MANUFACTURER OR 18
DISTRIBUTOR MAY NOT REQUIRE ADDITIONAL I NVENTORY STOCKING 19
REQUIREMENTS OR INCR EASED SALES TARGETS IN EXCESS OF THE MAR KET 20
GROWTH IN THE DEALER’S AREA OF SALES. 21
(C) (1) EXCEPT AS OTHERWISE P ROVIDED IN THIS SUBS ECTION, A 22
MANUFACTURER OR DIST RIBUTOR SHALL PROVID E A DEALER WITH WRIT TEN 23
NOTICE AT LEAST 120 DAYS BEFORE THE TERM INATION, CANCELLATION , OR 24
NONRENEWAL OF A MODE L, LINE–MAKE, OR DEALER AGREEMENT . 25
(2) THE NOTICE SHALL STAT E ALL REASONS FOR TH E PROPOSED 26
TERMINATION , CANCELLATION , OR NONRENEWAL . 27
(3) (I) WITHIN 30 DAYS FOLLOWING RECEI PT OF THE NOTICE , A 28
DEALER MAY PROVIDE W RITTEN NOTICE OF INT ENT TO RECTIFY ALL C LAIMED 29
DEFICIENCIES. 30
6 SENATE BILL 350
(II) IF THE DEFICIENCIES A RE RECTIFIED BY THE DEALER 1
WITHIN 120 DAYS FOLLOWING THE N OTICE OF INTENT TO R ECTIFY, THE 2
MANUFACTURER ’S OR DISTRIBUTOR ’S NOTICE OF TERMINAT ION IS VOID. 3
(III) SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION , IF A 4
DEALER FAILS TO PROVIDE T IMELY WRITTEN NOTICE OF INTENT TO RECTIFY OR 5
FAILS TO RECTIFY WIT HIN 120 DAYS AFTER NOTICE OF INTENT TO RECTIFY , THE 6
TERMINATION , CANCELLATION , OR NONRENEWAL OF THE DEALER AGREEMENT 7
SHALL TAKE EFFECT . 8
(4) THE 120–DAY NOTICE PERIOD SH ALL BE REDUCED TO 30 DAYS IF 9
THE TERMINATION , CANCELLATION , OR NONRENEWAL IS DUE TO: 10
(I) A DEALER OR ONE OF THE DEALER’S OWNERS BEING 11
CONVICTED OF , OR ENTERING A PLEA O F NOLO CONTENDERE TO , A FELONY; 12
(II) THE ABANDONMENT OR CL OSING OF THE BUSINES S 13
OPERATIONS OF THE DE ALER FOR 10 CONSECUTIVE BUSINESS DAYS, UNLESS THE 14
CLOSING IS DUE TO A CAUSE THAT IS OUT OF THE DEALER’S CONTROL; 15
(III) A SIGNIFICANT MISREPRE SENTATION BY A DEALE R 16
MATERIALLY AFFECTING THE BUSINESS RELATIO NSHIP; OR 17
(IV) A SUSPENSION OR REVOCA TION OF A DEALER ’S LICENSE, 18
OR FAILURE BY A DEAL ER TO RENEW A DEALER ’S LICENSE. 19
(5) THE NOTICE PROVISIONS OF THIS SECTION DO N OT APPLY IF THE 20
REASON FOR TERMINATI ON, CANCELLATION , OR NONRENEWAL IS INS OLVENCY, THE 21
OCCURRENCE OF AN ASS IGNMENT FOR THE BENE FIT OF CREDITORS , OR 22
BANKRUPTCY . 23
(D) (1) A DEALER MAY TERMINATE , CANCEL, OR NOT RENEW A MODEL , A 24
LINE–MAKE, OR THE DEALER AGREEM ENT WITH A MANUFACTU RER OR 25
DISTRIBUTOR WITH OR WITHOUT GOOD CAUSE A T ANY TIME BY GIVING 30 DAYS’ 26
WRITTEN NOTICE TO THE MANUFAC TURER OR DISTRIBUTOR . 27
(2) A DETERMINATION OF GOO D CAUSE MAY BE BASED ON: 28
(I) A MANUFACTURER OR DIST RIBUTOR BEING CONVIC TED OF, 29
OR ENTERING A PLEA O F NOLO CONTENDERE TO , A FELONY; 30
SENATE BILL 350 7
(II) THE BUSINESS OPERATIO NS HAVING BEEN ABAND ONED OR 1
CLOSED FOR 10 CONSECUTIVE DAYS , UNLESS THE CLOSING I S DUE TO A CAUSE THA T 2
IS OUT OF THE CONTRO L OF THE MANUFACTURE R OR DISTRIBUTOR ; 3
(III) A SIGNIFICANT MISREPRE SENTATION BY THE 4
MANUFACTURER OR DIST RIBUTOR THAT MATERIA LLY AFFECTS THE BUSI NESS 5
RELATIONSHIP; 6
(IV) A DECLARATION BY THE M ANUFACTURER OR DISTR IBUTOR 7
OF INSOLVENCY , THE OCCURRENCE OF AN ASSIGNMENT FOR THE B ENEFIT OF 8
CREDITORS, OR BANKRUPTCY ; 9
(V) A MANUFACTURER ’S OR DISTRIBUTOR ’S MATERIAL 10
VIOLATION OF THE DEA LER AGREEMENT THAT I S NOT CURED WITHIN 120 DAYS 11
AFTER WRITTEN NOTICE TO THE DEALER ; OR 12
(VI) A MANUFACTURER OR DIST RIBUTOR VIOLATING AN AREA 13
OF SALES PROTECTION OR ALLOWING OTHER DE ALERS TO VIOLATE AN AREA OF 14
SALES PROTECTION . 15
(E) IF THE DEALER AGREEME NT IS TERMINATED , CANCELED, OR NOT 16
RENEWED BY THE DEALE R FOR GOOD CAUSE , WITHIN 45 DAYS AFTER THE 17
TERMINATION , CANCELLATION , OR NONRENEWAL , THE MANUFACTURER OR 18
DISTRIBUTOR SHALL , AT REQUEST OF THE DE ALER, REPURCHASE : 19
(1) ALL NEW , UNALTERED , UNDAMAGED , AND UNTITLED 20
RECREATION AL VEHICLES THAT WER E ACQUIRED FROM THE MANUFACTURER OR 21
DISTRIBUTOR WITHIN 18 MONTHS BEFORE THE TE RMINATION, CANCELLATION , OR 22
NONRENEWAL , AT 100% OF THE INVOICE COST , INCLUDING TRANSPORTA TION 23
COSTS, EXCEPT THAT IF ANY R ECREATIONAL VEHICLE IS DAMAGED, THE AMOUNT 24
DUE TO THE DEALER SH ALL BE REDUCED BY TH E COST TO REPAIR THE DAMAGE; 25
(2) ALL NEW, UNDAMAGED ACCESSORIE S AND PROPRIETARY PA RTS 26
WITH THE ORIGINAL IN VOICE SOLD TO THE DE ALER FOR RESALE WITH IN 12 MONTHS 27
BEFORE THE TERMINATI ON, CANCELLATION , OR NONRENE WAL OF THE DEALER 28
AGREEMENT , AT 105% OF THE DEALER ’S ORIGINAL PRICE PAI D; AND 29
(3) ANY PROPERLY FUNCTION ING DIAGNOSTIC EQUIP MENT, 30
SPECIALTY TOOLS , CURRENT SIGNAGE , OR OTHER EQUIPMENT A ND MACHINERY 31
THAT WAS PURCHASED W ITHIN 5 YEARS BEFORE THE TER MINATION, 32
CANCELLATION , OR NONRENEWAL AND CA N NO LONGER BE USED IN THE NORMAL 33
COURSE OF BUSINESS , AT 100% OF THE DEALER ’S ORIGINAL PRICE PAI D, PLUS 34
FREIGHT, DESTINATION, DELIVERY, AND ANY APPLICABLE T AX. 35 8 SENATE BILL 350
(F) IF THE DEALER AGREEME NT IS TERMINATED , CANCELED, OR NOT 1
RENEWED BY THE MANUF ACTURER OR DISTRIBUT OR WITHOUT GOOD CAUS E, THE 2
MANUFACTURER OR DIST RIBUTOR SHALL REPURC HASE DEALER INVENTOR Y AS 3
PROVIDED IN SUBSECTI ON (E) OF THIS SECTION. 4
(G) A DEALER IS NOT PROHIB ITED FROM SELLING TH E REMAINING 5
IN–STOCK INVENTORY OF A PARTICULAR MODE L OR LINE–MAKE AFTER A DEALER 6
AGREEMENT HAS BEEN T ERMINATED, CANCELED, OR NOT RENEWED BY TH E 7
MANUFACTURER OR DIST RIBUTOR. 8
(H) WHEN TAKING ON AN ADD ITIONAL LINE–MAKE OF A RECREATION AL 9
VEHICLE, A DEALER SHALL NOTIF Y IN WRITING ANY MAN UFACTURER OR 10
DISTRIBUTOR WITH WHO M THE DEALER HAS A D EALER AGREEMENT OF T HE SAME 11
LINE–MAKE AT LEAST 30 DAYS BEFORE ENTERING INTO A DEALER AGREEM ENT FOR 12
THE ADDITIONAL LINE –MAKE. 13
15–1004. 14
(A) (1) IF A DEALER DESIRES T O MAKE A TRANSFER IN OWNERSHIP BY 15
SALE OF THE BUSINESS AS SETS, STOCK TRANSFER , OR ANY OTHER METHOD , THE 16
DEALER SHALL GIVE A MANUFACTURER OR DIST RIBUTOR THAT HAS ENT ERED INTO 17
A DEALER AGREEMENT W ITH THE DEALER WRITT EN NOTICE AT LEAST 10 BUSINESS 18
DAYS BEFORE THE TRAN SFER, INCLUDING ALL SUPPOR TING DOCUMENTATION AS 19
MAY BE REASONABLY RE QUIRED BY THE MANUFA CTURER OR DISTRIBUTO R TO 20
DETERMINE WHETHER AN OBJECTION TO THE TRANSFER MAY BE MADE . 21
(2) A MANUFACTURER OR DIST RIBUTOR MAY NOT OBJE CT TO THE 22
PROPOSED TRANSFER OF OWNERSHIP UNLESS THE PROSPECTIV E TRANSFEREE 23
WITHIN THE PRIOR 10 YEARS: 24
(I) HAS BEEN TERMINATED F OR CAUSE BY THE 25
MANUFACTURER OR DIST RIBUTOR; 26
(II) HAS BEEN CONVICTED OF A FELONY OR ANY CRIM E OF 27
MORAL TURPITUDE ; 28
(III) LACKS ANY DEALER LICE NSE REQUIRED BY LAW ; 29
(IV) LACKS AN ACTIVE LINE OF CREDI T SUFFICIENT TO 30
PURCHASE THE MANUFAC TURER’S OR DISTRIBUTOR ’S PRODUCT; OR 31
SENATE BILL 350 9
(V) HAS UNDERGONE BANKRUP TCY, INSOLVENCY, A GENERAL 1
ASSIGNMENT FOR THE B ENEFIT OF CREDITORS , OR THE APPOINTMENT O F A 2
RECEIVER, TRUSTEE, OR CONSERVATOR TO TA KE POSSESSION OF THE 3
TRANSFEREE ’S BUSINESS PROPERTY . 4
(B) (1) IF THE MANUFACTURER O R DISTRIBUTOR OBJECT S TO A 5
PROPOSED CHANGE OF O WNERSHIP, THE MANUFACTURER OR DISTRIBUTOR SHALL 6
GIVE WRITTEN NOTICE TO THE DEALER WITHIN 7 BUSINESS DAYS AFTER RECEIPT 7
OF THE DEALER’S NOTIFICATION AND C OMPLETE DOCUMENTATIO N. 8
(2) IF THE MANUFACTURER O R DISTRIBUTOR DOES N OT GIVE TIMELY 9
NOTICE OF THE OBJECT ION, THE TRANSFER SHALL B E DEEMED APPROVED . 10
(C) (1) A DEALER SHALL HAVE AN OPPORTUNITY TO DESIG NATE, IN 11
WRITING, A FAMILY MEMBER AS A SUCCESSO R TO THE DEALER ’S BUSINESS IN THE 12
EVENT OF DEATH , INCAPACITY, OR RETIREMENT OF THE DEALER. 13
(2) A MANUFACTURER OR DIST RIBUTOR MAY ONLY OBJ ECT TO THE 14
SUCCESSOR WITHIN 10 BUSINESS DAYS AFTER RECEIPT OF THE DEALE R’S 15
SUCCESSION PLAN IF T HE SUCCESSOR : 16
(I) WAS CONVICTED OF A FE LONY OR CRIME OF MOR AL 17
TURPITUDE; 18
(II) DECLARED BANKRUPTCY O R INSOLVENCY WITHIN THE 19
PRIOR 10 YEARS; 20
(III) LACKS AN ACTIVE LINE OF CREDIT SUFFICIENT TO 21
PURCHASE THE MANUFAC TURER’S OR DISTRIBUTOR ’S PRODUCT; 22
(IV) LACKS ANY DEALER ’S LICENSE REQUIRED B Y LAW; OR 23
(V) WOULD CAUSE OR HAS CA USED A BREACH OF THE DEALER 24
AGREEMENT . 25
15–1005. 26
(A) (1) EACH WARRANTOR SHALL : 27
(I) SPECIFY IN WRITING EA CH DEALER’S OBLIGATIONS FOR 28
PREPARATION , DELIVERY, AND WARRA NTY SERVICE FOR THE WARRANTOR ’S 29
PRODUCTS; 30
10 SENATE BILL 350
(II) COMPENSATE THE DEALER FOR WARRANTY SERVICE 1
PERFORMED BY THE DEA LER THAT IS COVERED BY THE WARRANTY ; AND 2
(III) PROVIDE THE DEALER A SCHEDULE OF COMPENSA TION TO 3
BE PAID AND THE REAS ONABLE TIME ALLOWANC E FOR THE PERFORMANCE OF ANY 4
SERVICE AND REPAIRS UNDER A WARRANTY . 5
(2) IF THE SCHEDULE OF CO MPENSATION DOES NOT INCLUDE A 6
PARTICULAR SERVICE O R REPAIR, A WARRANTOR SHALL RE IMBURSE THE DEALER 7
A REASONABLE AMOUNT FOR THE SERVICE OR R EPAIR. 8
(B) (1) A WARRANTOR SHALL REIM BURSE THE DEALER FOR ANY 9
WARRANTY PART AT WHO LESALE COST PLUS A 30% HANDLING CHARGE . 10
(2) THE MAXIMUM HANDLING CHARGE UNDER THIS SU BSECTION IS 11
$300. 12
(3) A WARRANTOR SHALL REIM BURSE A DEALER THE C OST OF 13
FREIGHT TO RETURN A WARRANTY PART, AN ACCESSORY , OR A COMPONENT TO TH E 14
WARRANTOR , IF THE RETURN IS REQ UESTED BY THE WARRAN TOR. 15
(C) WARRANTY AUDITS OF DE ALER RECORDS MAY BE CONDUCTED BY THE 16
WARRANTOR ON A REASO NABLE BASIS. 17
(D) (1) A DEALER SHALL SUBMIT A WARRANTY CLAIM WIT HIN 45 DAYS 18
AFTER COMPLETING THE WORK. 19
(2) A WARRANTOR MAY DISAPP ROVE WARRANTY CLAIMS ONLY: 20
(I) IN WRITING; 21
(II) WITHIN 45 DAYS AFTER THE DATE THE WARRANTY CLAIM 22
WAS SUBMITTED BY THE DEALER; AND 23
(III) IN THE MANNER PRESCRIBE D BY THE WARRANTOR . 24
(3) CLAIMS NOT DISAPPROVE D IN WRITING WITHIN 45 DAYS SHALL 25
BE DEEMED TO BE APPR OVED AND SHALL BE PA ID BY THE WARRANTOR WITHIN 60 26
DAYS. 27
(E) A DEALER SHALL GIVE NO TICE TO A WARRANTOR AS SOON AS 28
REASONABLY POSSIBLE IF THE DEALER IS UNA BLE OR UNWILLING TO PERFORM 29
MATERIAL OR REPETITI VE WARRANTY REPAIRS . 30 SENATE BILL 350 11
(F) IT IS A VIOLATION OF THIS SECTION FOR ANY WARRANTOR TO : 1
(1) FAIL TO PERFORM ANY O F ITS WARRANTY OBLIG ATIONS WITH 2
RESPECT TO ITS WARRA NTED PRODUCTS ; 3
(2) FAIL TO INCLUDE WRITT EN NOTICES OF FACTOR Y CAMPAIGNS TO 4
RECREATIONAL VEHICLE OWNERS AND DEALERS F OR THE EXPECTED DATE BY 5
WHICH PARTS AND EQUI PMENT WILL BE AVAILA BLE TO DEALERS TO PE RFORM THE 6
CAMPAIGN WORK ; 7
(3) IF THE CARRIER IS DES IGNATED BY THE MANUF ACTURER, 8
DISTRIBUTOR, OR WARRANTOR , FAIL TO COMPENSATE A DEALER F OR AUTHORIZED 9
REPAIRS PERFORMED BY A DEALER FOR A PRODU CT DAMAGED IN TRANSI T TO THE 10
DEALER; 11
(4) FAIL TO COMPENSATE AN Y DEALER FOR AUTHORI ZED WARRANTY 12
SERVICE IN ACCORDANC E WITH THE TIME ALLO WANCES SET FORTH IN THE 13
SCHEDULE OF COMPENS ATION, IF PERFORMED IN A TI MELY MANNER ; 14
(5) INTENTIONALLY MISREPR ESENT TO PURCHASERS OF 15
RECREATIONAL VEHICLE S THAT A DEALER IS A WARRANTOR OR CO –WARRANTOR ; 16
OR 17
(6) REQUIRE A DEALER TO M AKE WARRANTIES TO CU STOMERS IN 18
ANY MANNER RELATED T O THE MANUFACTU RING OF A RECREATION AL VEHICLE. 19
(G) IT IS A VIOLATION OF THIS SECTION FOR A D EALER TO: 20
(1) FAIL TO PERFORM PREDE LIVERY INSPECTION FU NCTIONS AS 21
SPECIFIED BY THE WAR RANTOR; 22
(2) FAIL TO PERFORM WARRA NTY SERVICE WORK AUT HORIZED BY 23
THE WARRANTOR IN A R EASONABLY TIMELY MANN ER ON ANY TRANSIENT 24
CUSTOMER’S RECREATIONAL VEHIC LE OF THE SAME LINE –MAKE; 25
(3) FAIL TO TRACK ACTUAL TIME EXPENDED TO PER FORM WARRANTY 26
WORK NOT GOVERNED BY TIME ALLOWANCE IN TH E SCHEDULE OF COMPEN SATION; 27
(4) CLAIM AN AGENCY RELAT IONSHIP WITH A WARRANT OR; OR 28
(5) MISREPRESENT THE TERM S OF A WARRANTY . 29
12 SENATE BILL 350
(H) UNLESS SPECIFIED IN T HE TERMS OF A DEALER AGREEMENT , IT IS A 1
VIOLATION OF THIS SE CTION FOR: 2
(1) A WARRANTOR TO FAIL TO INDEMNIFY, DEFEND, AND HOLD 3
HARMLESS A DEALER AG AINST ANY LOSSES OR DAMAGES TO THE EXTENT THE 4
LOSSES OR DAMAGES AR E CAUSED BY THE NEGL IGENCE OR MISCONDUCT OF THE 5
WARRANTOR ; OR 6
(2) A DEALER TO FAIL TO IN DEMNIFY, DEFEND, AND HOLD HARMLESS 7
A WARRANTOR AGAINST ANY LOSSES OR DAMAGE S TO THE EXTENT THE LOSSES OR 8
DAMAGES ARE CAUSED BY THE NEGLIGENCE OR MI SCONDUCT OF THE DEAL ER. 9
(I) INDEMNIFICATION UNDER THIS SUBSECTION SHAL L INCLUDE COURT 10
COSTS, REASONABLE ATTORNEY ’S FEES, AND EXPERT WITNESS F EES INCURRED BY 11
THE DEFENDING PARTY . 12
15–1006. 13
(A) WHEN A NEW RECREATION AL VEHICLE IS DAMAGE D BEFORE TRANSIT 14
TO THE DEALER , OR IS DAMAGED IN TRA NSIT TO THE DEALER A ND THE 15
MANUFACTURER OR DIST RIBUTOR WAS RESPONSI BLE FOR TRANSIT , THE DEALER 16
SHALL: 17
(1) NOTIFY THE MANUFACTUR ER OR DISTRIBUTOR OF THE DAMAGE 18
WITHIN THE TIME FRAME SPECIFIED IN THE DEA LER AGREEMENT ; 19
(2) REQUEST AUTHORIZATION TO REPLACE THE COMPO NENTS, 20
PARTS, OR ACCESSORIES DAMAG ED; AND 21
(3) REJECT THE RECREATION AL VEHICLE WITHIN 2 DAYS AFTER 22
PHYSICAL DELIVERY OF THE RECREATIONAL VEH ICLE. 23
(B) (1) IF A DEALER DETERMINE S THAT A RECREATIONA L VEHICLE AT 24
THE TIME OF DELIVERY HAS AN UNREASONABLE AMOUNT OF MILES ON T HE 25
ODOMETER , THE RECREATIONAL VEH ICLE MAY BE SUBJECT TO REJECTION BY THE 26
DEALER AND REVERSION OF THE RECREATIONAL VEHICLE TO THE MANUF ACTURER 27
OR DISTRIBUTOR . 28
(2) A DEALER MAY NOT DEEM LESS THAN THE DISTAN CE BETWEEN 29
THE DEALER AND THE M ANUFACTURER ’S FACTORY OR A DISTR IBUTOR’S POINT OF 30
DISTRIBUTION, AS APPROPRIATE , PLUS 100 MILES AS AN UNREASON ABLE AMOUNT 31
OF MILES. 32
SENATE BILL 350 13
15–1007. 1
(A) (1) IN THIS SECTION, “COERCE” MEANS TO COMPEL OR A TTEMPT TO 2
COMPEL BY THREAT OF HARM, BREACH OF CONTRACT , OR OTHER ADVERSE ACT ION 3
OR CONSEQUENCES , INCLUDING THE LOSS O F ANY INCENTIVE OR O THER BENEFIT 4
MADE AVAILABLE TO OT HER DEALERS OF THE S AME LINE–MAKE IN THE STATE. 5
(2) “COERCE” INCLUDES THREATENING TO TERMINATE , CANCEL, OR 6
NOT RENEW A DEALER A GREEMENT WITHOUT GOO D CAUSE, OR HOLD OR DELAY 7
PRODUCT DELIVERY . 8
(B) A MANUFACTURER OR DIST RIBUTOR, WHETHER DIRECTLY OR 9
THROUGH AN AGENT , AN EMPLOYEE , AN AFFILIATE, OR A REPRESENTATIVE , MAY 10
NOT COERCE OR ATTEMP T TO COERCE A DEALER TO: 11
(1) PURCHASE A PRODUCT TH E DEALER DID NOT ORD ER; 12
(2) ENTER INTO AN AGREEME NT WITH THE MANUFACT URER OR 13
DISTRIBUTOR; 14
(3) TAKE ACTION THAT IS U NFAIR OR UNREASONABL E TO THE 15
DEALER; OR 16
(4) FORGO EXERCISING A RI GHT AUTHORIZED BY A DEALER 17
AGREEMENT OR ANY LAW GOVERNING THE BUSINE SS RELATIONSHIP . 18
15–1008. 19
(A) NOTWITHSTANDING ANY A DMINISTRATIVE OR CRI MINAL SANCTIONS 20
IMPOSED BY THIS SUBT ITLE, IF A PERSON SUFFERS FINANCIAL INJURY OR OTHER 21
DAMAGE AS A RESULT O F A VIOLATION OF THI S SUBTITLE BY ANY OT HER PERSON, 22
WHETHER OR NOT THAT OTHER PERSON HAS BEE N FOUND GUILTY OF A CRIMINAL 23
VIOLATION, THE INJURED PERSON M AY RECOVER DAMAGES A ND REASONABLE 24
ATTORNEY’S FEES IN ANY COURT OF COMPETENT JUR ISDICTION. 25
(B) (1) BEFORE BRINGING A CIV IL ACTION UNDER THIS SECTION, THE 26
PARTY BRINGING THE A CTION SHALL SERVE A WRITTEN DEMAND FOR M EDIATION 27
ON THE OFFENDING PAR TY. 28
(2) THE PARTIES TO MEDIAT ION SHALL PAY THEIR OWN COSTS FOR 29
ATTORNEY’S FEES AND DIVID E THE MEDIATOR COST EQUALLY. 30
14 SENATE BILL 350
(3) THIS SUBSECTION DOES NOT APPLY TO AN ACTI ON FOR 1
INJUNCTIVE RELIEF . 2
(C) A DEALER, MANUFACTURER , DISTRIBUTOR, OR WARRANTOR MAY 3
APPLY FOR A GRANT OF INJUNCTIVE RELIEF FR OM A VIOLATION OF TH IS SUBTITLE 4
OR A REFUSAL TO COMP LY WITH A REQUIREMEN T OF THIS SUBTITLE. 5
15–1009. 6
(A) THE ADMINISTRATION MAY SU SPEND OR REVOKE ANY DEALER’S, 7
MANUFACTURER ’S, OR DISTRIBUTOR ’S LICENSE ON A FINDI NG THAT A PARTY 8
VIOLATED THIS SUBTIT LE. 9
(B) THE ADMINISTRATION MAY IM POSE A FINE NOT EXCE EDING $1,000 FOR 10
EACH VIOLATION OF TH IS SUBTITLE. 11
(C) A DEALER, MANUFACTURER , DISTRIBUTOR, OR WARRANTOR IS 12
ENTITLED TO A HEARIN G UNDER TITLE 12, SUBTITLE 2 OF THIS ARTICLE TO 13
CONTEST AN ACTION OR A FINE IMPOSED UNDER T HIS SECTION. 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
October 1, 2024. 16