RVIA: Maryland Passes RV-Specific Franchise Legislation – RVBusiness – Breaking RV Industry News
The Maryland General Assembly on April 3 passed legislation HB 605 to create an RV-specific franchise law which governs the manufacturer-dealer relationship for RVs, according to a News & Insights report by the RV Industry Association (RVIA). The bill now heads to Maryland Gov. Wes Moore for his signature. Passage of the bill was possible thanks to the leadership of Delegate Dana Stein (Baltimore) and Senator Mike McKay (Allegany, Garrett, & Washington), the report continued.
“This legislation modernizes the regulatory structure governing recreational dealer vehicle agreements,” said Delegate Stein. “The bill is based on a nationally negotiated RV-specific model law that the national RV manufacturers’ and the national RV dealers’ associations agreed upon three years ago. I was very pleased to be the House sponsor of this legislation.”
Senator McKay adds that he is “proud that this bill is moving forward and hopes that this will bring fairness to our recreational vehicle industry.”
This legislation, like the ones recently passed in Wisconsin and Washington, creates a system that better reflects the relationship between RV manufacturers and dealers. It is the product of negotiation between the RV Industry Association and RV dealers in Maryland, both of whom strongly support its approval.
RVIA’s Government Affairs department has advocated for this legislation. Sophie de la Torre, RVIA’s Senior Manager of State Affairs, testified in support of the bill in the Maryland House Committee on Environment and Transportation on Feb. 15. Likewise, Michael Ochs, RVIA’s Director of State Affairs, testified in its favor in the Judicial Proceedings Committee on Feb. 22.
“Passage of this legislation will strengthen the viability of the RV industry in Maryland to the state’s benefit and that of consumers, manufacturers, and dealers alike,” stated Sophie de la Torre during her testimony. “This bill would place the RV industry in a separate chapter from the auto industry, finally allowing these two industries to operate separately under law as they do in reality. HB 605 and SB 504 are designed to be fair, reciprocal, and reasonable to all stakeholders.”
Greg Merkel, president of Leo’s Vacation Center in Gambrills, Md., adds: “It is great to know that Maryland will finally have a law between the manufacturers and the dealers to define the requirements between them. This will benefit all parties including the RV consumer. I would like to thank the RV Industry Association and the RV Dealers Association for their support in getting this law passed.”
Over the years, the RV industry has worked to establish exemptions from parts of the automobile franchise law because many provisions do not pertain to the RV industry or are handled differently by RV manufacturers and dealers than by the automobile industry. As an extension of these efforts, the RV Industry Association advocated for an RV-specific franchise law to place the manufacturer-dealer relationship for RVs in a separate chapter of law, creating more clarity for RV business and consumers.
For questions on this legislation, please contact Senior Manager of State Affairs Sophie de la Torre at [email protected].
