New Mexico 2025 Regular Session

New Mexico Senate Bill SB287 Compare Versions

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

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28	28	SENATE BILL 287
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
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35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Linda M. Trujillo
48	48	AN ACT
49	49	RELATING TO TRADE PRACTICES; EXEMPTING FROM THE PROVISIONS OF
50	50	CHAPTER 57, ARTICLE 16 NMSA 1978 DEALERS, MANUFACTURERS AND
51	51	DISTRIBUTORS THAT MANUFACTURE OR SELL NEW RECREATIONAL
52	52	VEHICLES; ENACTING THE RECREATIONAL VEHICLE MANUFACTURER AND
53	53	DEALER ACT; REQUIRING A MANUFACTURER-DEALER AGREEMENT TO SELL A
54	54	NEW RECREATIONAL VEHICLE; PROVIDING REQUIREMENTS FOR
55	55	MANUFACTURER-DEALER AGREEMENTS; PROVIDING LIMITATIONS TO THE
56	56	TERMINATION, CANCELLATION OR NONRENEWAL OF A MANUFACTURER-
57	57	DEALER AGREEMENT AND REQUIRING WRITTEN NOTICE; REQUIRING NOTICE
58	58	FOR THE TRANSFER OF DEALER OWNERSHIP AND PROVIDING A PROCEDURE
59	59	FOR OBJECTION TO TRANSFER OF OWNERSHIP; PROVIDING WARRANTY
60	60	OBLIGATIONS ON THE WARRANTOR AND DEALER; PROVIDING INSPECTION
61	61	AND REJECTION PROCEDURES FOR DAMAGED RECREATIONAL VEHICLES;
62	62	REQUIRING ALTERNATIVE DISPUTE RESOLUTION PRIOR TO AN INJURED
63	63	PARTY BRINGING A CIVIL ACTION FOR A VIOLATION OF THE
64	64	.228930.1 underscored material = new
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91	91	RECREATIONAL VEHICLE MANUFACTURER AND DEALER ACT; PROVIDING
92	92	PENALTIES; REPEALING A SECTION OF CHAPTER 57, ARTICLE 16 NMSA
93	93	1978 THAT APPLIES TO MANUFACTURERS AND DISTRIBUTORS OF
94	94	RECREATIONAL VEHICLES.
95	95	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
96	96	SECTION 1. Section 57-16-2 NMSA 1978 (being Laws 1973,
97	97	Chapter 6, Section 2) is amended to read:
98	98	"57-16-2. APPLICATION OF ACT.--
99	99	A. Except as provided in Subsection B of this
100	100	section, the provisions of [this act ] Chapter 57, Article 16
101	101	NMSA 1978 shall apply to all persons, manufacturers,
102	102	representatives, distributors and dealers and to all written or
103	103	oral agreements between the manufacturer, distributor or
104	104	representative with a motor vehicle dealer, including [but not
105	105	limited to] the franchise offering, the franchise agreement,
106	106	sales of goods, services or advertising, leases or mortgages of
107	107	real or personal property, promises to pay, security interest,
108	108	pledges, insurance contracts, advertising contracts,
109	109	construction or installation contracts, servicing contracts and
110	110	all other such agreements in which the manufacturer,
111	111	distributor or representative has any direct or indirect
112	112	interest.
113	113	B. The provisions of Chapter 57, Article 16 NMSA
114	114	1978 shall not apply to a dealer, manufacturer, component
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143	143	manufacturer or distributor that manufactures or sells new
144	144	recreational vehicles. "
145	145	SECTION 2. Section 57-16-3 NMSA 1978 (being Laws 1973,
146	146	Chapter 6, Section 3, as amended) is amended to read:
147	147	"57-16-3. DEFINITIONS.--As used in Chapter 57, Article 16
148	148	NMSA 1978:
149	149	A. "current price" means an amount equal to the
150	150	price listed in the manufacturer's or distributor's printed
151	151	price list in effect when the franchise is terminated, less
152	152	applicable trade and cash discounts;
153	153	B. "dealer cost" means an amount equal to the sum
154	154	of the original invoice price that the dealer paid for
155	155	inventory and the cost of the delivery of the inventory from
156	156	the manufacturer or distributor to the dealer, less applicable
157	157	discounts;
158	158	C. "designated family member" means a spouse,
159	159	child, grandchild, parent, brother or sister of a deceased or
160	160	incapacitated dealer who is entitled to inherit the dealer's
161	161	ownership interest in the dealership under the terms of a will
162	162	or the laws of intestate succession in this state. In the case
163	163	of an incapacitated dealer, the term means the person appointed
164	164	by a court as the legal representative of the dealer's
165	165	property. The term also includes the appointed and qualified
166	166	personal representative and the testamentary trustee of a
167	167	deceased dealer. However, the term shall be limited to mean
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196	196	only that individual designated by a dealer in a written
197	197	document filed with the manufacturer, distributor or
198	198	representative in the event that such a document has been
199	199	filed;
200	200	D. "distributor" means any person who distributes
201	201	or sells new or used motor vehicles to dealers and who is not a
202	202	manufacturer;
203	203	E. "do not drive order" means a notice advising a
204	204	motor vehicle dealer or an owner of a motor vehicle not to
205	205	drive the vehicle until the vehicle has been repaired because
206	206	the vehicle has a safety defect, fails to comply with a federal
207	207	motor vehicle safety standard or fails to comply with a federal
208	208	requirement;
209	209	F. "former franchisee":
210	210	(1) means a dealer that has entered into a
211	211	franchise agreement with a manufacturer and that has:
212	212	(a) entered into a termination agreement
213	213	or deferred termination agreement with the manufacturer related
214	214	to the franchise; or
215	215	(b) has had the franchise canceled,
216	216	terminated or otherwise ended; and
217	217	(2) includes the designated successor of the
218	218	former franchisee in the event the former franchisee is
219	219	deceased or disabled;
220	220	G. "franchise" means an oral or written arrangement
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249	249	for a definite or indefinite period in which a manufacturer,
250	250	distributor or representative grants to a motor vehicle dealer
251	251	a license to use a trade name, service mark or related
252	252	characteristic and in which there is a community of interest in
253	253	the marketing of motor vehicles or services related to
254	254	marketing, service or repair of motor vehicles at wholesale,
255	255	retail, leasing or otherwise;
256	256	H. "fraud" includes, in addition to its normal
257	257	legal connotation, the following:
258	258	(1) a misrepresentation in any manner, whether
259	259	intentionally false or due to gross negligence, of a material
260	260	fact;
261	261	(2) a promise or representation not made
262	262	honestly and in good faith; and
263	263	(3) an intentional failure to disclose a
264	264	material fact;
265	265	I. "inventory" means new or unused motorcycles,
266	266	motor vehicles, motorcycle attachments and motorcycle and motor
267	267	vehicle repair parts that are provided by a manufacturer or
268	268	distributor to a dealer under a franchise agreement and that
269	269	are purchased within thirty-six months of the termination of
270	270	the franchise or are listed in the manufacturer's or
271	271	distributor's current sales manual or price list at the time
272	272	that the franchise is terminated;
273	273	J. "manufacturer" means any person who manufactures
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302	302	or assembles new motor vehicles either within or outside of
303	303	this state and may include a predecessor manufacturer or a
304	304	successor manufacturer;
305	305	K. "motorcycle" means any motor vehicle used on or
306	306	off a public highway that has an unladen weight of less than
307	307	one thousand five hundred pounds;
308	308	L. "motor vehicle" means every self-propelled
309	309	vehicle, having two or more wheels, by which a person or
310	310	property may be transported on a public highway [and includes
311	311	recreational vehicles ];
312	312	M. "motor vehicle dealer" or "dealer" means a
313	313	person who sells or solicits or advertises the sale of new or
314	314	used motor vehicles and is licensed as a dealer pursuant to the
315	315	Motor Vehicle Code. "Motor vehicle dealer" or "dealer" shall
316	316	not include:
317	317	(1) receivers, trustees, administrators,
318	318	executors, guardians or other persons appointed by or acting
319	319	under judgment, decree or order of any court;
320	320	(2) public officers while performing their
321	321	duties as such officers;
322	322	(3) persons making casual sales of their own
323	323	vehicles duly registered and licensed to them by the state; or
324	324	(4) finance companies, banks and other lending
325	325	institutions covering sales of repossessed vehicles;
326	326	N. "person" means every natural person,
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355	355	partnership, corporation, association, trust, estate or any
356	356	other legal entity;
357	357	O. "predecessor manufacturer" means a manufacturer
358	358	that is acquired, succeeded by or assumed by a successor
359	359	manufacturer;
360	360	P. "prospective purchaser" means a person who has a
361	361	bona fide written agreement to purchase a franchise;
362	362	Q. "recall claim" includes a claim for
363	363	reimbursement for the parts and labor required for a dealer to
364	364	repair a motor vehicle subject to a do not drive order or stop
365	365	sale order;
366	366	R. "recreational vehicle" means [any motor vehicle
367	367	with a camping body that either has its own motive power or is
368	368	drawn by another vehicle ] a vehicle that is either self-
369	369	propelled or towed by a consumer-owned tow vehicle and that is
370	370	designed to provide temporary living quarters for recreational,
371	371	camping or travel use, and includes motor homes, travel
372	372	trailers, fifth wheel travel trailers, truck campers and
373	373	folding camping trailers ;
374	374	S. "relevant market area" means an area of a size
375	375	specified in this subsection around an existing motor vehicle
376	376	dealer's place of business. The size of the area shall be the
377	377	greater of the area of responsibility specified in the dealer's
378	378	franchise or a circle with a center at the dealer's place of
379	379	business and a radius of:
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408	408	(1) seven miles, if the population of the
409	409	county in which the dealership is located is two hundred fifty
410	410	thousand or more;
411	411	(2) fifteen miles, if the population of the
412	412	county in which the dealership is located is less than two
413	413	hundred fifty thousand but is thirty-five thousand or more; or
414	414	(3) twenty miles in all other cases.
415	415	If the existing and proposed dealerships are in different
416	416	counties, the lesser of the applicable mileage limitations
417	417	shall be used. For purposes of this subsection, the population
418	418	of any area shall be determined in accordance with the most
419	419	recent decennial census or the most recent population update
420	420	from the national planning data corporation or other similar
421	421	recognized source, whichever is later;
422	422	T. "representative" means any person who is or acts
423	423	as an agent, employee or representative of a manufacturer or
424	424	distributor and who performs any duties in this state relating
425	425	to promoting the distribution or sale of new or used motor
426	426	vehicles or contacts dealers in this state on behalf of a
427	427	manufacturer or distributor;
428	428	U. "sale" includes:
429	429	(1) the issuance, transfer, agreement for
430	430	transfer, exchange, pledge, hypothecation or mortgage in any
431	431	form, whether by transfer in trust or otherwise, of any motor
432	432	vehicle or interest therein or of any franchise related
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461	461	thereto; and
462	462	(2) any option, subscription or other contract
463	463	or solicitation looking to a sale or offer or attempt to sell
464	464	in any form, whether spoken or written. A gift or delivery of
465	465	any motor vehicle or franchise with respect thereto with, or
466	466	as, a bonus on account of the sale of anything shall be deemed
467	467	a sale of such motor vehicle or franchise;
468	468	V. "stop sale order" means a notice prohibiting a
469	469	motor vehicle dealer from leasing or selling and delivering at
470	470	wholesale or retail a used motor vehicle in the inventory of
471	471	the dealer until the vehicle has been repaired because the
472	472	vehicle has a safety defect, fails to comply with a federal
473	473	motor vehicle safety standard or fails to comply with a federal
474	474	requirement;
475	475	W. "successor manufacturer" means a motor vehicle
476	476	manufacturer that, on or after January 1, 2010, acquires,
477	477	succeeds to or assumes any part of the business of a
478	478	predecessor manufacturer as the result of:
479	479	(1) a change in ownership, operation or
480	480	control of the predecessor manufacturer;
481	481	(2) the termination, suspension or cessation
482	482	of all or a part of the business operation of the predecessor
483	483	manufacturer;
484	484	(3) the discontinuance of the sale of a
485	485	product line; or
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514	514	(4) a change in the distribution system by the
515	515	predecessor manufacturer, whether through a change in
516	516	distributor or the predecessor manufacturer's decision to cease
517	517	conducting business through a distributor; and
518	518	X. "value of the used motor vehicle" means the
519	519	average trade-in value indicated in an independent third party
520	520	guide for a used motor vehicle of the same year, make and
521	521	model."
522	522	SECTION 3. [NEW MATERIAL] SHORT TITLE.--Sections 3
523	523	through 13 of this act may be cited as the "Recreational
524	524	Vehicle Manufacturer and Dealer Act".
525	525	SECTION 4. [NEW MATERIAL] DEFINITIONS.--As used in the
526	526	Recreational Vehicle Manufacturer and Dealer Act:
527	527	A. "area of sales responsibility" means the
528	528	geographical area agreed to by a dealer and a manufacturer in a
529	529	manufacturer-dealer agreement within which the dealer has the
530	530	exclusive right to display or sell the manufacturer's new
531	531	recreational vehicles of a particular line-make;
532	532	B. "coercion" means threatening to terminate,
533	533	cancel or not renew a manufacturer-dealer agreement without
534	534	good cause or threatening to withhold product lines or delay
535	535	product delivery as an inducement to amending the agreement;
536	536	C. "component manufacturer" means a person,
537	537	corporation or business entity that engages in the
538	538	manufacturing of components, accessories or parts used in
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567	567	manufacturing recreational vehicles;
568	568	D. "dealer" means a person, corporation or business
569	569	entity licensed or required to be licensed to sell new
570	570	recreational vehicles under the Motor Vehicle Code;
571	571	E. "distributor" means a person, corporation or
572	572	business entity that purchases new recreational vehicles for
573	573	resale to dealers;
574	574	F. "factory campaign" means the effort of a
575	575	warrantor to contact recreational vehicle owners or dealers to
576	576	address an issue with a part or equipment;
577	577	G. "family member" means a spouse, child,
578	578	grandchild, parent, sibling, niece or nephew;
579	579	H. "line-make" means a specific series of
580	580	recreational vehicle products that:
581	581	(1) are targeted to a particular market
582	582	segment, as determined by decor, features, equipment, size,
583	583	weight and price range;
584	584	(2) have lengths and interior floor plans that
585	585	distinguish the recreational vehicles from other recreational
586	586	vehicles with substantially the same decor, features,
587	587	equipment, weight and price; and
588	588	(3) belong to a single, distinct
589	589	classification of recreational vehicle product type having a
590	590	substantial degree of commonality in the construction of the
591	591	chassis, frame and body;
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620	620	I. "manufacturer" means a person, corporation or
621	621	business entity that engages in the manufacturing of
622	622	recreational vehicles;
623	623	J. "manufacturer-dealer agreement" means a written
624	624	agreement or contract entered into between a manufacturer and a
625	625	dealer that fixes the rights and responsibilities of the
626	626	parties and pursuant to which the dealer sells new recreational
627	627	vehicles;
628	628	K. "model" means a subset of a line-make that
629	629	consists of a series of recreational vehicle products
630	630	identified by a common series trade name or trademark;
631	631	L. "proprietary part" means any part manufactured
632	632	by or for and sold exclusively by a manufacturer;
633	633	M. "recreational vehicle" means a vehicle that is
634	634	either self-propelled or towed by a consumer-owned tow vehicle
635	635	and that is designed to provide temporary living quarters for
636	636	recreational, camping or travel use, and includes motor homes,
637	637	travel trailers, fifth wheel travel trailers, truck campers and
638	638	folding camping trailers;
639	639	N. "transient customer" means a customer who is
640	640	temporarily traveling through a dealer's area of sales
641	641	responsibility; and
642	642	O. "warrantor" means a person, corporation or
643	643	business entity that gives a warranty in connection with a new
644	644	recreational vehicle or parts, accessories or components of a
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673	673	recreational vehicle, and excludes service contracts, insurance
674	674	or extended warranties sold for separate consideration by a
675	675	dealer or person not controlled by a manufacturer.
676	676	SECTION 5. [NEW MATERIAL] MANUFACTURER-DEALER AGREEMENT--
677	677	REQUIREMENTS--AREA OF SALES RESPONSIBILITY.--
678	678	A. A manufacturer or distributor shall not sell a
679	679	new recreational vehicle to or through a dealer without first
680	680	entering into a manufacturer-dealer agreement with the dealer.
681	681	B. A dealer shall not sell a new recreational
682	682	vehicle without first entering into a manufacturer-dealer
683	683	agreement with a manufacturer or distributor.
684	684	C. A manufacturer-dealer agreement shall state the
685	685	duration of the terms of the agreement and designate an area of
686	686	sales responsibility exclusively assigned to a dealer. For the
687	687	duration of the manufacturer-dealer agreement, the area of
688	688	sales responsibility shall not change, and the manufacturer or
689	689	distributor shall not contract with another dealer for sale of
690	690	the same model or line-make, as specified in the manufacturer-
691	691	dealer agreement, in the designated area of sales
692	692	responsibility, unless agreed to by written consent of all
693	693	parties to the agreement.
694	694	D. A manufacturer, distributor or dealer shall not
695	695	issue a policy or procedure that violates or substantially
696	696	alters a provision of the manufacturer-dealer agreement during
697	697	the duration of the agreement, unless agreed to by written
698	698	.228930.1
699	699	- 13 - underscored material = new
700	700	[bracketed material] = delete
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702	702	2
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722	722	22
723	723	23
724	724	24
725	725	25
726	726	consent of all parties to the agreement.
727	727	E. A manufacturer or distributor shall:
728	728	(1) distribute new recreational vehicles to
729	729	its dealers in a fair and equitable manner;
730	730	(2) if requested by a dealer, provide
731	731	information on its manner of distribution; and
732	732	(3) if requested by a dealer, provide a dealer
733	733	pursuant to a manufacturer-dealer agreement with adequate
734	734	technical data to perform proper service and repairs.
735	735	F. When taking on an additional recreational
736	736	vehicle of a particular line-make, a dealer shall notify in
737	737	writing a manufacturer or distributor with which the dealer has
738	738	a manufacturer-dealer agreement of the same line-make at least
739	739	thirty days prior to entering into a new manufacturer-dealer
740	740	agreement with the manufacturer or distributor of the
741	741	additional recreational vehicle.
742	742	SECTION 6. [NEW MATERIAL] TERMINATION, CANCELLATION AND
743	743	NONRENEWAL OF A MANUFACTURER-DEALER AGREEMENT--GOOD CAUSE--
744	744	NOTICE--REQUIRED REPURCHASE.--
745	745	A. A manufacturer or distributor, directly or
746	746	through an officer, agent or employee, shall terminate, cancel
747	747	or fail to renew a model, line-make or manufacturer-dealer
748	748	agreement only with good cause, and upon renewal, shall not
749	749	require additional inventory stocking requirements or increased
750	750	retail sales targets in excess of the market growth in the
751	751	.228930.1
752	752	- 14 - underscored material = new
753	753	[bracketed material] = delete
754	754	1
755	755	2
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775	775	22
776	776	23
777	777	24
778	778	25
779	779	dealer's area of sales responsibility. For the purposes of
780	780	determining whether there is good cause for an action to
781	781	terminate, cancel or fail to renew a model, line-make or
782	782	manufacturer-dealer agreement, the following factors may be
783	783	considered:
784	784	(1) the extent of the affected dealer's
785	785	penetration in the relevant market area for the relevant model
786	786	or line-make;
787	787	(2) the nature and extent of the dealer's
788	788	investment in the dealer's business;
789	789	(3) the adequacy of the dealer's service
790	790	facilities, equipment, parts, supplies and personnel;
791	791	(4) the effect of the proposed action on the
792	792	relevant community;
793	793	(5) the extent and quality of the dealer's
794	794	service under recreational vehicle warranties;
795	795	(6) any failures by the dealer to follow
796	796	procedures or standards of operation pursuant to the
797	797	manufacturer-dealer agreement and the law; and
798	798	(7) a dealer's violation of the terms of the
799	799	manufacturer-dealer agreement or the Recreational Vehicle
800	800	Manufacturer and Dealer Act.
801	801	B. Except as otherwise provided in this section and
802	802	unless the reason for termination, cancellation or nonrenewal
803	803	of a model, line-make or manufacturer-dealer agreement is
804	804	.228930.1
805	805	- 15 - underscored material = new
806	806	[bracketed material] = delete
807	807	1
808	808	2
809	809	3
810	810	4
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830	830	24
831	831	25
832	832	insolvency, bankruptcy or the occurrence of an assignment for
833	833	the benefit of creditors, a manufacturer or distributor shall
834	834	provide a dealer with at least one hundred twenty days of
835	835	written notice of termination, cancellation or nonrenewal of a
836	836	model, line-make or manufacturer-dealer agreement. The written
837	837	notice shall state all reasons for the proposed termination,
838	838	cancellation or nonrenewal.
839	839	C. If, within thirty days following receipt of a
840	840	notice pursuant to Subsection B of this section, the dealer
841	841	provides to the manufacturer or distributor a written notice of
842	842	intent to cure all stated deficiencies, the dealer shall have
843	843	one hundred twenty days following receipt of the notice to
844	844	rectify the deficiencies.
845	845	D. The notice period for a manufacturer's or
846	846	distributor's termination, cancellation or nonrenewal may be
847	847	reduced to thirty days if the grounds for termination,
848	848	cancellation or nonrenewal are due to:
849	849	(1) a dealer or one of the dealer's owners
850	850	being convicted of or entering a plea of nolo contendere to a
851	851	felony;
852	852	(2) a dealer abandoning or closing business
853	853	operations for at least ten consecutive business days, unless
854	854	the abandoning or closing is due to force majeure or a strike,
855	855	labor difficulty or other cause over which the dealer has no
856	856	control;
857	857	.228930.1
858	858	- 16 - underscored material = new
859	859	[bracketed material] = delete
860	860	1
861	861	2
862	862	3
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885	885	(3) a misrepresentation by the dealer that
886	886	materially affects the business relationship;
887	887	(4) a material violation by the dealer of a
888	888	provision of the Recreational Vehicle Manufacturer and Dealer
889	889	Act that is not cured within thirty days after written notice;
890	890	or
891	891	(5) a suspension or revocation of the dealer's
892	892	license, or the refusal to renew the dealer's license, by the
893	893	taxation and revenue department.
894	894	E. A dealer may terminate, cancel or not renew a
895	895	model, line-make or manufacturer-dealer agreement with a
896	896	manufacturer or distributor with or without good cause at any
897	897	time by giving thirty days of written notice to the
898	898	manufacturer or distributor. If the termination, cancellation
899	899	or nonrenewal is for good cause, the dealer shall state all
900	900	reasons for the proposed termination, cancellation or
901	901	nonrenewal and has the burden of showing good cause. The
902	902	following factors may be considered for the purposes of
903	903	determining whether there is good cause:
904	904	(1) a manufacturer or distributor being
905	905	convicted of or entering a plea of nolo contendere to a felony;
906	906	(2) a manufacturer or distributor abandoning
907	907	or closing business operations for at least ten consecutive
908	908	business days, unless the closing is due to force majeure or a
909	909	strike, labor difficulty or other cause over which the
910	910	.228930.1
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912	912	[bracketed material] = delete
913	913	1
914	914	2
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937	937	25
938	938	manufacturer or distributor has no control;
939	939	(3) a misrepresentation by a manufacturer or
940	940	distributor that materially affects the business relationship;
941	941	(4) a material violation of a provision of the
942	942	Recreational Vehicle Manufacturer and Dealer Act that is not
943	943	cured within thirty days after written notice by the dealer to
944	944	the manufacturer or distributor;
945	945	(5) a declaration by the manufacturer or
946	946	distributor of bankruptcy or insolvency or the occurrence of
947	947	an assignment by the manufacturer or distributor for the
948	948	benefit of creditors or bankruptcy;
949	949	(6) a material violation by the manufacturer
950	950	or distributor of the manufacturer-dealer agreement that is
951	951	not cured within one hundred twenty days after written notice
952	952	is provided by the dealer to the manufacturer or distributor;
953	953	and
954	954	(7) coercion of the dealer by the manufacturer
955	955	or distributor.
956	956	SECTION 7. [NEW MATERIAL] REQUIRED REPURCHASE--
957	957	TERMINATION, CANCELLATION AND NONRENEWAL OF A MANUFACTURER-
958	958	DEALER AGREEMENT.--
959	959	A. If a manufacturer-dealer agreement is
960	960	terminated, canceled or not renewed by a dealer for good cause,
961	961	the manufacturer or distributor shall, at the election of the
962	962	dealer within forty-five days after the termination,
963	963	.228930.1
964	964	- 18 - underscored material = new
965	965	[bracketed material] = delete
966	966	1
967	967	2
968	968	3
969	969	4
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988	988	23
989	989	24
990	990	25
991	991	cancellation or nonrenewal, repurchase:
992	992	(1) new, untitled recreational vehicles that
993	993	were sold to the dealer within the eighteen months prior to the
994	994	date of the notice of termination, cancellation or nonrenewal
995	995	that have not been used, except for demonstration purposes, and
996	996	that have not been altered or damaged, at one hundred percent
997	997	of the original invoice cost, including transportation, less
998	998	applicable rebates and discounts to the dealer. If a vehicle
999	999	repurchased is damaged, the amount paid to the dealer shall be
1000	1000	reduced by the cost to repair the damaged vehicle. Damage
1001	1001	prior to the original delivery to the dealer does not
1002	1002	disqualify repurchase pursuant to this subsection;
1003	1003	(2) undamaged accessories and proprietary
1004	1004	parts that were sold to the dealer for resale within the twelve
1005	1005	months prior to the termination, cancellation or nonrenewal if
1006	1006	accompanied by the original invoice, at one hundred five
1007	1007	percent of the original invoice cost; and
1008	1008	(3) properly functioning diagnostic equipment,
1009	1009	special tools, current signage and other equipment and
1010	1010	machinery that were sold to the dealer within the five years
1011	1011	prior to the termination, cancellation or nonrenewal at one
1012	1012	hundred percent of the original invoice cost plus the dealer's
1013	1013	freight, destination, delivery and distribution charges and
1014	1014	sales taxes, if any, if the diagnostic equipment, special
1015	1015	tools, current signage and other equipment can no longer
1016	1016	.228930.1
1017	1017	- 19 - underscored material = new
1018	1018	[bracketed material] = delete
1019	1019	1
1020	1020	2
1021	1021	3
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1041	1041	23
1042	1042	24
1043	1043	25
1044	1044	be used in the normal course of the dealer's ongoing business.
1045	1045	B. If the manufacturer-dealer agreement is
1046	1046	terminated, canceled or not renewed by the manufacturer or
1047	1047	distributor without good cause, in violation of Subsection A of
1048	1048	this section, the manufacturer or distributor shall repurchase
1049	1049	vehicles, accessories and equipment in accordance with this
1050	1050	section.
1051	1051	C. A vehicle, accessory or equipment that is
1052	1052	repurchased pursuant to this section shall be paid for in full
1053	1053	before it is removed from dealer's premises, and upon payment,
1054	1054	must be immediately surrendered to the manufacturer or
1055	1055	distributor.
1056	1056	D. A dealer is not prohibited from selling the
1057	1057	remaining in-stock inventory of a particular model or line-make
1058	1058	after a dealer agreement has been terminated, canceled or not
1059	1059	renewed by the manufacturer, including recreational vehicles of
1060	1060	a model or line-make subject to the manufacturer-dealer
1061	1061	agreement that are not repurchased or required to be
1062	1062	repurchased by the manufacturer.
1063	1063	SECTION 8. [NEW MATERIAL] TRANSFER OF OWNERSHIP--FAMILY
1064	1064	SUCCESSION--OBJECTIONS--WRITTEN NOTICE.--
1065	1065	A. If a dealer desires to make a change in dealer
1066	1066	ownership by the sale of the business assets, stock transfer or
1067	1067	otherwise, the dealer shall provide written notice to a
1068	1068	manufacturer or distributor with which the dealer has an active
1069	1069	.228930.1
1070	1070	- 20 - underscored material = new
1071	1071	[bracketed material] = delete
1072	1072	1
1073	1073	2
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1096	1096	25
1097	1097	manufacturer-dealer agreement at least ten business days before
1098	1098	the closing, including all supporting documentation as may be
1099	1099	reasonably required by the manufacturer or distributor to
1100	1100	determine if an objection to the sale may be made.
1101	1101	B. In the absence of a breach by a selling dealer
1102	1102	of a manufacturer-dealer agreement or the provisions of the
1103	1103	Recreational Vehicle Manufacturer and Dealer Act, a
1104	1104	manufacturer or distributor shall not object to a proposed
1105	1105	change in ownership unless the manufacturer or distributor has
1106	1106	previously terminated with good cause a manufacturer-dealer
1107	1107	agreement with the prospective owner or the prospective owner:
1108	1108	(1) has been convicted of a felony or any
1109	1109	crime of fraud, deceit or moral turpitude;
1110	1110	(2) lacks a license required by law;
1111	1111	(3) does not have an active line of credit
1112	1112	sufficient to purchase a manufacturer's or distributor's
1113	1113	product; or
1114	1114	(4) has undergone in the last ten years
1115	1115	bankruptcy, insolvency, a general assignment for the benefit of
1116	1116	creditors or the appointment of a receiver, trustee or
1117	1117	conservator to take possession of the prospective owner's
1118	1118	business or property.
1119	1119	C. If the manufacturer or distributor objects to a
1120	1120	proposed change of ownership, the manufacturer or distributor
1121	1121	shall provide written notice to the dealer stating the reasons
1122	1122	.228930.1
1123	1123	- 21 - underscored material = new
1124	1124	[bracketed material] = delete
1125	1125	1
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1147	1147	23
1148	1148	24
1149	1149	25
1150	1150	pursuant to Subsection B of this section within seven business
1151	1151	days after receipt of the dealer's notification and
1152	1152	documentation. The manufacturer or distributor bears the
1153	1153	burden of proving its objection.
1154	1154	D. A manufacturer or distributor shall provide a
1155	1155	dealer an opportunity to designate in writing a family member
1156	1156	as a successor to the dealership in the event of the death,
1157	1157	incapacity or retirement of the dealer, and a manufacturer or
1158	1158	distributor shall honor the succession unless the manufacturer
1159	1159	or distributor provides to the dealer or the dealer's successor
1160	1160	written notice of its objections within ten business days after
1161	1161	receipt of the dealer's succession plan. A manufacturer or
1162	1162	distributor shall only object for the reasons listed pursuant
1163	1163	to Subsection B of this section or if the succession involves a
1164	1164	relocation of the dealer's business or an alteration of the
1165	1165	terms and conditions of the manufacturer-dealer agreement.
1166	1166	SECTION 9. [NEW MATERIAL] DEALER INSPECTION AND
1167	1167	REJECTION--DAMAGED RECREATIONAL VEHICLE--NEW RECREATIONAL
1168	1168	VEHICLE ODOMETER.--
1169	1169	A. If a new recreational vehicle is damaged prior
1170	1170	to transit to the dealer or is damaged in transit to the dealer
1171	1171	when the carrier or means of transportation has been selected
1172	1172	by the manufacturer or distributor, the dealer shall notify the
1173	1173	manufacturer or distributor of the damage within the time frame
1174	1174	specified in the manufacturer-dealer agreement and:
1175	1175	.228930.1
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1178	1178	1
1179	1179	2
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1184	1184	7
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1199	1199	22
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1203	1203	(1) request from the manufacturer or
1204	1204	distributor authorization to replace the damaged components,
1205	1205	parts or accessories or otherwise correct the damage; or
1206	1206	(2) reject the damaged vehicle within the time
1207	1207	frame specified in the manufacturer-dealer agreement, which
1208	1208	shall not be less than two business days after physical
1209	1209	delivery of the recreational vehicle.
1210	1210	B. If a manufacturer or distributor refuses or
1211	1211	fails to authorize repair of the damage in accordance with the
1212	1212	provisions of Subsection A of this section within ten days
1213	1213	after receipt of notification or if a dealer rejects the
1214	1214	recreational vehicle because of damage, ownership of the new
1215	1215	recreational vehicle shall revert to the manufacturer or
1216	1216	distributor.
1217	1217	C. A dealer may reject a manufacturer's or
1218	1218	distributor's new recreational vehicle that has, at the time of
1219	1219	delivery to the dealer, an unreasonable amount of miles on its
1220	1220	odometer, as determined by the dealer. An unreasonable amount
1221	1221	of miles shall not be equal to an amount less than the distance
1222	1222	between the dealer and the manufacturer's factory or a
1223	1223	distributor's point of distribution, plus one hundred miles.
1224	1224	If a dealer rejects a new recreational vehicle pursuant to this
1225	1225	subsection, ownership of the recreational vehicle shall revert
1226	1226	to the manufacturer or distributor.
1227	1227	D. A dealer shall exercise due care in custody of a
1228	1228	.228930.1
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1256	1256	damaged or rejected recreational vehicle but shall have no
1257	1257	other obligations, financial or otherwise, with respect to that
1258	1258	recreational vehicle.
1259	1259	SECTION 10. [NEW MATERIAL] COERCION OF DEALER
1260	1260	PROHIBITED.--
1261	1261	A. A manufacturer or distributor shall not coerce
1262	1262	or attempt to coerce a dealer to:
1263	1263	(1) purchase a product that the dealer did not
1264	1264	order;
1265	1265	(2) enter into an agreement with the
1266	1266	manufacturer or distributor;
1267	1267	(3) take any illegal action or action that is
1268	1268	unfair or unreasonable to the dealer;
1269	1269	(4) enter into an agreement that requires the
1270	1270	dealer to submit its disputes to binding arbitration or
1271	1271	otherwise waive rights or responsibilities provided under the
1272	1272	Recreational Vehicle Manufacturer and Dealer Act; or
1273	1273	(5) forego exercising a right authorized by a
1274	1274	manufacturer-dealer agreement or any law governing the
1275	1275	relationship between the manufacturer or distributor and the
1276	1276	dealer.
1277	1277	B. A dealer bears the burden of proving unlawful
1278	1278	coercion pursuant to this section.
1279	1279	SECTION 11. [NEW MATERIAL] WARRANTY OBLIGATIONS.--
1280	1280	A. A warrantor shall:
1281	1281	.228930.1
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1309	1309	(1) specify in writing to its dealers any
1310	1310	obligations for preparation, delivery and warranty service on
1311	1311	its products;
1312	1312	(2) provide a dealer with the warrantor's
1313	1313	schedule of compensation to be paid and reasonable time
1314	1314	allowances for the diagnosis and performance of any work and
1315	1315	service. The schedule of compensation shall include reasonable
1316	1316	compensation for diagnostic work and warranty labor. If the
1317	1317	schedule of compensation does not include a particular repair,
1318	1318	the warrantor shall reimburse the dealer for warranty service
1319	1319	for the actual time expended unless the warrantor demonstrates
1320	1320	that the actual time was not reasonable, in which case the
1321	1321	warrantor shall pay a reasonable sum based on industry averages
1322	1322	for pay rate and time;
1323	1323	(3) compensate its dealers for warranty
1324	1324	service covered by the warranty in accordance with the provided
1325	1325	schedule and time allowances if the service is performed in a
1326	1326	timely and competent manner;
1327	1327	(4) compensate its dealers for authorized
1328	1328	repairs effected by the dealer of merchandise damaged in
1329	1329	manufacture or transit to the dealer if the carrier is
1330	1330	designated by the warrantor, factory branch, distributor or
1331	1331	distributor branch;
1332	1332	(5) compensate a dealer for warranty labor in
1333	1333	an amount not less than the lowest retail labor rate actually
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1362	1362	charged by the dealer in the ordinary course of business for
1363	1363	like nonwarranty labor; provided that the rate is reasonable;
1364	1364	(6) reimburse a dealer for any warranty part,
1365	1365	accessory or complete component at actual wholesale cost plus a
1366	1366	minimum thirty percent handling charge and any cost of freight
1367	1367	to return the part to the warrantor or, if a part is sent to
1368	1368	the dealer at no cost, reimburse the dealer in an amount equal
1369	1369	to thirty percent of the wholesale cost of the part from the
1370	1370	warrantor as a handling charge, with a maximum handling charge
1371	1371	for a part of three hundred dollars ($300);
1372	1372	(7) conduct warranty audits of dealer records
1373	1373	on a reasonable basis;
1374	1374	(8) not deny dealer claims for warranty
1375	1375	compensation except for good cause, such as performance of
1376	1376	nonwarranty repairs, material noncompliance with the
1377	1377	warrantor's published policies and procedures, lack of material
1378	1378	documentation, fraud or misrepresentation;
1379	1379	(9) approve or disapprove of warranty claims
1380	1380	in writing within forty-five days after the date of submission
1381	1381	by a dealer;
1382	1382	(10) include, in written notices of factory
1383	1383	campaigns to recreational vehicle owners and dealers, the
1384	1384	expected date by which necessary parts and equipment, including
1385	1385	tires and chassis or chassis parts, will be available to
1386	1386	dealers to perform the factory campaign work. A warrantor may
1387	1387	.228930.1
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1415	1415	ship parts to a dealer to affect the factory campaign work,
1416	1416	and, if such parts are in excess of the dealer's requirements,
1417	1417	the dealer may return unused parts to the warrantor for credit
1418	1418	after completion of the factory campaign;
1419	1419	(11) not intentionally misrepresent to
1420	1420	purchasers of recreational vehicles that warranties with
1421	1421	respect to the manufacture, performance or design of the
1422	1422	vehicle are made by the dealer as warrantor or co-warrantor;
1423	1423	(12) not require its dealers to make
1424	1424	warranties to customers in any manner related to the
1425	1425	manufacture of the recreational vehicle; and
1426	1426	(13) perform its warranty obligations with
1427	1427	respect to its warranted products.
1428	1428	B. A dealer shall:
1429	1429	(1) submit warranty claims within forty-five
1430	1430	days after completing work;
1431	1431	(2) notify a warrantor as soon as is
1432	1432	reasonably possible, verbally or in writing, if the dealer is
1433	1433	unable or unwilling to perform material or repetitive warranty
1434	1434	repairs;
1435	1435	(3) perform pre-delivery inspection functions,
1436	1436	as specified by the warrantor, in a competent and timely
1437	1437	manner;
1438	1438	(4) perform warranty service work authorized
1439	1439	by the warrantor in a competent and timely manner on any
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1468	1468	transient customer's vehicle of the same line-make unless the
1469	1469	dealer determines that the customer is acting in a manner
1470	1470	detrimental to its business;
1471	1471	(5) track actual time spent performing
1472	1472	warranty work not governed by time allowances in the
1473	1473	warrantor's schedule of compensation;
1474	1474	(6) not claim an agency relationship with a
1475	1475	warrantor or manufacturer; and
1476	1476	(7) not misrepresent the terms of any
1477	1477	warranty.
1478	1478	C. Warranty claims not specifically disapproved by
1479	1479	a warrantor in writing within forty-five days after the date of
1480	1480	submission by a dealer shall be construed to be approved and
1481	1481	shall be paid within sixty days; provided that the dealer
1482	1482	submits the warranty claim in the manner and form prescribed by
1483	1483	the warrantor.
1484	1484	D. Notwithstanding the terms of any manufacturer-
1485	1485	dealer agreement, a warrantor shall indemnify, defend and hold
1486	1486	harmless its dealers against any losses or damages to the
1487	1487	extent such losses or damages are caused by the negligence or
1488	1488	willful misconduct of the warrantor, including a dealer that
1489	1489	fails to discover, disclose or remedy a defect in the design or
1490	1490	manufacture of the relevant recreational vehicle. A dealer
1491	1491	shall provide to the warrantor a copy of any suit in which
1492	1492	allegations are made pursuant to this subsection within ten
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1521	1521	days after receiving the suit. This subsection shall continue
1522	1522	to apply even after a recreational vehicle is titled.
1523	1523	E. Notwithstanding the terms of any manufacturer-
1524	1524	dealer agreement, a dealer shall indemnify, defend and hold
1525	1525	harmless its warrantor against any losses or damages to the
1526	1526	extent such losses or damages are caused by the negligence or
1527	1527	willful misconduct of the dealer. The warrantor shall provide
1528	1528	to the dealer a copy of any suit in which allegations are made
1529	1529	pursuant to this subsection within ten days after receiving the
1530	1530	suit. This subsection shall continue to apply even after a
1531	1531	recreational vehicle is titled.
1532	1532	F. Indemnification pursuant to Subsection D or E of
1533	1533	this section shall include court costs, reasonable attorney
1534	1534	fees and expert witness fees incurred by the dealer or
1535	1535	warrantor.
1536	1536	SECTION 12. [NEW MATERIAL] DISPUTE RESOLUTION--MEDIATION
1537	1537	REQUIRED BEFORE CIVIL ACTION--VENUE--RELIEF.--
1538	1538	A. A dealer, manufacturer, distributor or warrantor
1539	1539	injured by another party's violation of the Recreational
1540	1540	Vehicle Manufacturer and Dealer Act may bring a civil action to
1541	1541	recover actual damages. The court shall award attorney fees
1542	1542	and costs to the prevailing party. Venue for any civil action
1543	1543	authorized by this section shall be in the county in which the
1544	1544	dealership is located. In an action involving more than one
1545	1545	dealer, venue may be in any county in which a dealer that is
1546	1546	.228930.1
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1574	1574	party to the action is located.
1575	1575	B. Prior to bringing suit for an alleged violation
1576	1576	pursuant to this section, a party shall make a good faith
1577	1577	effort to mediate the dispute, including serving upon the
1578	1578	responding party a written demand for mediation, selecting a
1579	1579	mediator, scheduling a mediation and participating in the
1580	1580	mediation. This provision does not apply to a proceeding for
1581	1581	injunctive relief.
1582	1582	C. A written demand for mediation shall contain a
1583	1583	brief statement of the dispute and the relief sought by the
1584	1584	party filing the demand, and the written demand for mediation
1585	1585	shall be served upon the responding party via certified mail at
1586	1586	the address stated in the agreement between the parties or, if
1587	1587	the address is not contained in the agreement or the address is
1588	1588	no longer valid, the address on the responding party's license
1589	1589	filed with the state. In the event of a civil action between
1590	1590	two dealers, the demand shall be mailed to the address on the
1591	1591	dealer's license filed with the state.
1592	1592	D. Within thirty days after the date a demand for
1593	1593	mediation is served, the parties shall mutually select an
1594	1594	independent mediator and meet with the mediator for the purpose
1595	1595	of attempting to resolve the dispute. The mediator shall
1596	1596	select a location in New Mexico, and the mediator may extend
1597	1597	the date of the meeting for good cause shown by either party or
1598	1598	upon stipulation of both parties.
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1627	1627	E. If a responding party does not reply within
1628	1628	thirty days after the demand for mediation is served, the party
1629	1629	initiating the action may proceed to a civil action without
1630	1630	mediating.
1631	1631	F. The service of a demand for mediation pursuant
1632	1632	to this subsection stays the time for the filing of any
1633	1633	complaint, petition, protest or action pursuant to the
1634	1634	Recreational Vehicle Manufacturer and Dealer Act until
1635	1635	representatives of the involved parties complete a mediation
1636	1636	with a mutually selected mediator for the purpose of attempting
1637	1637	to resolve the dispute. If a complaint, petition, protest or
1638	1638	action is filed before the mediation, a court shall enter an
1639	1639	order suspending the proceeding or action until the meeting has
1640	1640	occurred and may, upon written stipulation of all parties to
1641	1641	the proceeding or action that the parties wish to continue to
1642	1642	mediate pursuant to this subsection, enter an order suspending
1643	1643	the proceeding or action for as long a period as the court
1644	1644	considers appropriate. The suspension order issued may be
1645	1645	revoked by the court.
1646	1646	G. The parties to a mediation pursuant to this
1647	1647	section shall bear their own costs for attorney fees and divide
1648	1648	equally the cost of the mediator.
1649	1649	H. In addition to the remedies provided by this
1650	1650	section and notwithstanding the existence of any additional
1651	1651	remedy at law, a dealer, manufacturer or distributor may apply
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1680	1680	to the relevant court for the grant, upon a hearing and for
1681	1681	cause shown, of a temporary or permanent injunction to restrain
1682	1682	a person from acting as a dealer, manufacturer or distributor
1683	1683	without being properly licensed or from violating the
1684	1684	provisions of the Recreational Vehicle Manufacturer and Dealer
1685	1685	Act. The injunction shall be issued without bond.
1686	1686	SECTION 13. [NEW MATERIAL] PENALTIES.--
1687	1687	A. If the taxation and revenue department finds
1688	1688	that a dealer, manufacturer or distributor has violated a
1689	1689	provision of the Recreational Vehicle Manufacturer and Dealer
1690	1690	Act, the department may suspend or revoke the license of the
1691	1691	dealer, manufacturer or distributor.
1692	1692	B. If the taxation and revenue department finds
1693	1693	that a person has violated a provision of the Recreational
1694	1694	Vehicle Manufacturer and Dealer Act, the department may assess
1695	1695	and collect an administrative penalty against the person in an
1696	1696	amount not to exceed one thousand dollars ($1,000) for each
1697	1697	violation.
1698	1698	C. A person, dealer, manufacturer or distributor
1699	1699	aggrieved by a decision of the taxation and revenue department
1700	1700	made pursuant to the provisions of this section may appeal to
1701	1701	the administrative hearings office for a hearing. A person,
1702	1702	dealer, manufacturer or distributor that continues to be
1703	1703	aggrieved after the decision made by a hearing officer may
1704	1704	appeal that decision to a district court pursuant to the
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1733	1733	provisions of Section 39-3-1.1 NMSA 1978.
1734	1734	SECTION 14. REPEAL.--Section 57-16-6.2 NMSA 1978 (being
1735	1735	Laws 1995, Chapter 19, Section 2, as amended) is repealed.
1736	1736	SECTION 15. EFFECTIVE DATE.--The effective date of the
1737	1737	provisions of this act is January 1, 2026.
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