AB 1112

Under current law, recreational vehicle (RV) dealers must be licensed by the

Department of Transportation. An RV dealer license may be denied, suspended, or

revoked for a number of reasons, including failure to comply with licensing

requirements, committing certain types of fraud, or engaging in unconscionable

business practices. In addition, persons who violate the statutes governing RV

dealer licensure may be required to forfeit between $25 and $100 for a first offense

and may be fined between $25 and $100 for a second or subsequent offense within

three years.

This bill provides additional regulation of RV dealers and regulates various

aspects of the relationship between RV dealers and RV manufacturers or

distributors. Specifically, among other things, the bill does all of the following:

1. Requires a dealer agreement between each RV dealer and the manufacturer

or distributor of the RVs the dealer sells. The bill further specifies certain contents

of the agreement, including an exclusive sales area for each RV dealer.

2. Prohibits RV manufacturers and distributors from terminating or failing to

renew a dealer agreement without good cause. The bill provides criteria that must

be considered when assessing whether good cause exists.

3. Requires an RV manufacturer or distributor to provide notice before

terminating or nonrenewing a dealer agreement and provides that a termination or

nonrenewal must be rescinded upon certain actions by an RV dealer.

4. Provides that an RV dealer may terminate or nonrenew an agreement with

an RV manufacturer upon 30 days' notice.

5. In certain cases, requires an RV manufacturer to repurchase certain

products provided to RV dealers, including new RVs, certain RV accessories, and

certain repair equipment, upon termination of a dealer agreement.

6. Requires an RV manufacturer or distributor to allow an RV dealer to

designate a family member as a successor to its dealer agreement.

7. Specifies obligations with regard to warranty repairs.

8. Provides that DOT may administratively fine any person who violates the

provisions of the bill up to $1,000 for each violation.

Because this bill creates a new crime or revises a penalty for an existing crime,

the Joint Review Committee on Criminal Penalties may be requested to prepare a

report.