SB 287 New Mexico Senate · 2025 Regular Session

RECREATIONAL VEHICLE MANUFACTURE & DEALER ACT

SB 287 creates a new "Recreational Vehicle Manufacturer and Dealer Act" to establish specific rules for the RV industry in New Mexico. It requires written agreements between RV manufacturers and dealers, sets clear rules for ending those agreements (including written notice for termination), and mandates alternative dispute resolution before lawsuits. The bill also defines warranty obligations, inspection procedures for damaged RVs, and procedures for transferring dealership ownership. This law directly affects RV manufacturers, dealers, and their contractual relationships, exempting them from standard motor vehicle dealer regulations under Chapter 57, Article 16 of New Mexico law. The bill was postponed indefinitely in June 2025 after committee review.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 5, 2025 Last action Jun 3, 2025

Maddy AI version diff · 1 comparison

What changed between versions

introduced version → CT substitute · 9 edits

MAJOR

This bill introduces a new 'Recreational Vehicle Manufacturer and Dealer Act' to protect RV dealers and consumers from unfair trade practices. It establishes clear rules for manufacturer-dealer agreements, including requirements for exclusive sales territories, good cause for termination, and mandatory repurchase of inventory if agreements end without cause. The act also adds protections against coercion, sets warranty obligations for manufacturers, and requires mediation before civil lawsuits can be filed.

Scope change

The bill creates a new comprehensive framework specifically for recreational vehicles, exempting RV dealers, manufacturers, and distributors from the general provisions of Chapter 57, Article 16 NMSA 1978 that apply to other motor vehicles.

REQUIREMENT

New manufacturer-dealer agreements must specify exclusive sales territories that cannot be changed during the agreement without written consent from all parties.

Manufacturers and distributors must terminate dealer agreements only for 'good cause' and must provide 120 days written notice, with exceptions for felony convictions, business abandonment, or license revocation.

If a manufacturer terminates a dealer agreement without good cause, they must repurchase all new, undamaged vehicles at 100% invoice cost plus accessories at 105%.

Manufacturers must compensate dealers for warranty service at rates not less than their lowest retail labor rates and must reimburse for warranty parts at wholesale cost plus handling fees.

Dealers must provide written notice to manufacturers at least 10 business days before transferring ownership or designating family members as successors.

DEFINITION

New definitions for 'area of sales responsibility,' 'coercion,' 'component manufacturer,' 'line-make,' 'model,' 'proprietary part,' 'transient customer,' and 'warrantor' specific to recreational vehicles.

Updated existing motor vehicle definitions to clarify recreational vehicle terminology and removed recreational vehicle references from general motor vehicle definitions.

ENFORCEMENT

Dealers must mediate disputes before filing civil lawsuits, and manufacturers are prohibited from coercing dealers into unfavorable agreements or arbitration clauses.

TIMELINE

The act becomes effective on January 1, 2026.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 28, 2025

Upper · Passed

DO NOT PASS, replaced with committee substitute

upper

Feb 5, 2025

Introduced

Sent to Senate Tax, Business and Transportation Committee & Senate Judiciary Committee

upper

1 primary · 0 co-sponsors