The proposed "Recreational Vehicle Manufacturer and Dealer Act" aims to regulate the relationships between dealers, manufacturers, and distributors of new recreational vehicles by establishing specific requirements for manufacturer-dealer agreements. Key provisions include stipulations for the sale of vehicles, limitations on the termination, cancellation, or nonrenewal of agreements, and the necessity of written notice for such actions. The bill also introduces new definitions pertinent to the industry, outlines warranty obligations, and mandates alternative dispute resolution before civil actions can be initiated. Additionally, it emphasizes fair distribution practices and requires good cause for termination actions.

The bill further amends existing provisions by allowing a reduced notice period for termination under certain circumstances and mandates manufacturers to repurchase unsold inventory if agreements are terminated for good cause. It prohibits coercive practices by manufacturers and establishes a mediation process prior to civil actions. The legislation also introduces penalties for violations, including the suspension or revocation of licenses and administrative fines, while allowing for appeals against decisions made by the taxation and revenue department. Notably, Section 57-16-6.2 NMSA 1978 is repealed, and the act is set to take effect on January 1, 2026.

Statutes affected:
introduced version: 57-16-2, 57-16-3, 57-16-6.2