HB 1912 Modifies provisions requiring recreational vehicle (RV) manufacturers to repurchase RVs and certain associated items from dealers upon the termination of an RV dealer agreement

Current Bill Summary

- Prepared by Senate Research -


HCS/HB 1912 - This act modifies provisions requiring recreational vehicle (RV) manufacturers to repurchase RVs and certain associated items from dealers upon the termination of an RV dealer agreement.

In addition to the circumstances already specified by law, the act provides that the dealer may elect for the manufacturer to repurchase vehicles, parts, and equipment if the dealer voluntarily terminates the agreement in a manner permitted under the agreement, or if the manufacturer terminates or discontinues a franchise by discontinuing a line-make, by ceasing to do business in the state, or by changing the distributor or method of distribution of its products in the state.

The act also replaces repurchase item categories for current model-year RVs, and for prior model year RVs drafted on the dealer's financing source or paid within 120 days prior to the end of the dealer agreement, with a single category consisting of all new untitled RV inventory acquired from the manufacturer in the past 18 months. The new category eliminates the specific requirement that the vehicles have not been used, and provides that the vehicles shall be repurchased at "one hundred percent of net invoice cost, including transportation, less applicable rebates and discounts to the dealer", rather than specifying that the repurchase price shall be reduced by the cost to repair any damages not required by law to be disclosed.

The manufacturer shall pay the dealer within 30 days of receipt of all items returned for repurchase as provided by law.

This act is similar to SB 982 (2020), provisions in the truly agreed to and finally passed SS#3/SCS/HB 1963 (2020), provisions in HCS/SB 782 (2020), provisions in HCS/SCS/SB 867 (2020), and provisions in HCS/SB 686 (2020).

ERIC VANDER WEERD


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