Pennsylvania has become the latest state to enact an RV specific franchise law, bringing the total number of states with unique laws dealing only with RVs to 20. The Pennsylvania bill, SB 764, removes RVs from the auto franchise section of code and creates a new section of code with provisions better suited for the RV industry. The new law in Pennsylvania will take effect on October 24, 2019.
In a number of states, RVs are covered by auto franchise laws even though auto dealers and RV dealers operate under different business models. Unlike the automobile industry, there are no true franchises in the RV industry. The RV industry is not vertically integrated among manufacturers, parts and suppliers like the auto industry, which creates a substantive difference in warranty obligations between the two industries.
RV specific laws, like the one enacted in Pennsylvania, provide consistency for manufacturers to develop and manage dealer agreements across the states while providing reciprocal advantages for RV dealers.
The RV Industry Association thanks the industry partners and legislators the who supported SB 764 throughout the legislative process, especially the Pennsylvania Recreation Vehicle & Camping Association. Special thanks to bill sponsors Senator John Gordner (R-27), Senator John Rafferty Jr. (R-44), Senator Christine Tartaglione (D-2) and Senator David Argall (R-29).
With the passage and implementation of SB 764, 14 states have enacted the RV Industry Association’s model franchise law. Six additional states have enacted laws that are not based on the RV Industry Association’s model but still move RVs out of the automobile law and into a separate RV code section.
SOURCE: RVIA News & Insights