The proposed "Recreational Vehicle Manufacturer and Dealer Act" establishes a comprehensive regulatory framework governing the relationship between manufacturers and dealers of new recreational vehicles. It requires a formal manufacturer-dealer agreement that outlines the rights and responsibilities of both parties, including sales territories and conditions for termination or nonrenewal, which must be executed with good cause and written notice. The bill also introduces consumer protection measures, warranty obligations, and procedures for handling damaged vehicles, along with a right of action for violations of the Act. Additionally, it addresses dealer ownership transfers, prohibits coercive practices by manufacturers, and ensures fair compensation for unsold inventory upon agreement termination.

The legislation further clarifies definitions related to motor vehicles and dealers, including terms like "manufacturer," "motor vehicle," and "recreational vehicle," while specifying the conditions for issuing "stop sale orders" for vehicles with safety defects. It repeals Section 57-16-6.2 NMSA 1978 and sets an effective date for the new provisions as January 1, 2026. The bill aims to create a balanced marketplace for recreational vehicle sales, protecting the interests of both dealers and consumers while modernizing existing regulations for clarity and fairness.

Statutes affected:
introduced version: 57-16-2, 57-16-3, 57-16-6.2
CT substitute: 39-3-1.1, 57-16-3, 57-16-6.2