CERTIFICATION OF ENROLLMENT
SUBSTITUTE HOUSE BILL 1996
Chapter 87, Laws of 2024
68th Legislature
2024 Regular Session
RECREATIONAL VEHICLE MANUFACTURERS AND DEALERS
EFFECTIVE DATE: June 6, 2024
Passed by the House February 13, 2024 CERTIFICATE
Yeas 97 Nays 0
I, Bernard Dean, Chief Clerk of the
House of Representatives of the
LAURIE JINKINS State of Washington, do hereby
Speaker of the House of certify that the attached is
Representatives SUBSTITUTE HOUSE BILL 1996 as
passed by the House of
Representatives and the Senate on
the dates hereon set forth.
Passed by the Senate February 29,
2024
Yeas 49 Nays 0 BERNARD DEAN
Chief Clerk
DENNY HECK
President of the Senate
Approved March 14, 2024 11:18 AM FILED
March 14, 2024
Secretary of State
JAY INSLEE State of Washington
Governor of the State of Washington
 SUBSTITUTE HOUSE BILL 1996
Passed Legislature - 2024 Regular Session
State of Washington 68th Legislature 2024 Regular Session
By House Consumer Protection & Business (originally sponsored by
Representatives Robertson, Chapman, and Graham)
READ FIRST TIME 01/26/24.
1 AN ACT Relating to establishing the Washington recreational
2 vehicle manufacturer and dealer law; reenacting and amending RCW
3 46.96.020; adding a new chapter to Title 46 RCW; and prescribing
4 penalties.
5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
6 NEW SECTION. Sec. 1. The definitions in this section apply
7 throughout this chapter unless the context clearly requires
8 otherwise.
9 (1) "Area of sales responsibility" means the geographical area
10 agreed to by the dealer and the manufacturer in the manufacturer/
11 dealer agreement within which the dealer has the exclusive right to
12 display or sell the manufacturer's new recreational vehicles of a
13 particular line-make.
14 (2) "Component manufacturer" means any person, firm, corporation,
15 or business entity that engages in the manufacturing of components,
16 accessories, or parts used in manufacturing recreational vehicles.
17 (3) "Dealer" means any person, firm, corporation, or business
18 entity licensed or required to be licensed that sells new
19 recreational vehicles at retail in the state of Washington.
p. 1 SHB 1996.SL
 1 (4) "Distributor" means any person, firm, corporation, or
2 business entity that purchases new recreational vehicles for resale
3 to dealers.
4 (5) "Factory campaign" means an effort on the part of a warrantor
5 to contact recreational vehicle owners or dealers in order to address
6 a part or equipment issue.
7 (6) "Family member" means a spouse, child, grandchild, parent,
8 sibling, niece, or nephew, or the spouse thereof.
9 (7) "Line-make" means a specific series of recreational vehicle
10 products that:
11 (a) Are targeted to a particular market segment as determined by
12 their décor, features, equipment, size, weight, and price range;
13 (b) Have lengths and interior floor plans that distinguish the
14 recreational vehicles from other recreational vehicles with
15 substantially the same décor, equipment, features, price, and weight;
16 (c) Belong to a single, distinct classification of recreational
17 vehicle product type having a substantial degree of commonality in
18 the construction of the chassis, frame, and body; and
19 (d) The manufacturer/dealer agreement authorizes a dealer to
20 sell.
21 (8) "Manufacturer" means any person, firm, corporation, or
22 business entity that engages in the manufacturing of recreational
23 vehicles.
24 (9) "Manufacturer/dealer agreement" means a written agreement or
25 contract entered into between a manufacturer and a dealer that fixes
26 the rights and responsibilities of the parties and pursuant to which
27 the dealer sells new recreational vehicles.
28 (10) "Model" is a series of recreational vehicle products
29 identified by a common series trade name or trademark that is a
30 subset of a line-make.
31 (11) "Proprietary part" means any part manufactured by or for and
32 sold exclusively by the manufacturer.
33 (12) "Recreational vehicle" means a vehicle that is towed by a
34 consumer-owned tow vehicle and designed to provide temporary living
35 quarters for recreational, camping, or travel use, including only
36 travel trailers, fifth-wheel travel trailers, truck campers, and
37 folding camping trailers.
38 (13) "Transient customer" means a customer who is temporarily
39 traveling through a dealer's area of sales responsibility.
p. 2 SHB 1996.SL
1 (14) "Warrantor" means any person, firm, corporation, or business
2 entity that gives a warranty in connection with a new recreational
3 vehicle or parts, accessories, or components thereof. "Warrantor"
4 does not include service contracts, mechanical or other insurance, or
5 extended warranties sold for separate consideration by a dealer or
6 other person not controlled by a manufacturer.
7 Requirement for a Written Manufacturer/Dealer Agreement; Area of
8 Sales Responsibility
9 NEW SECTION. Sec. 2. (1) A manufacturer or distributor may not
10 sell a new recreational vehicle in this state to or through a dealer
11 without having first entered into a manufacturer/dealer agreement
12 with a dealer that has been signed by both parties.
13 (2) The manufacturer shall designate the area of sales
14 responsibility exclusively assigned to a dealer in the manufacturer/
15 dealer agreement and may not change such area or contract with
16 another dealer for sale of the same line-make in the designated area
17 during the duration of the agreement.
18 (3) The terms of the manufacturer/dealer agreement, including the
19 area of sales responsibility, may not be reviewed or changed during
20 the duration of the manufacturer/dealer agreement without the written
21 mutual consent of the parties. The duration of the manufacturer/
22 dealer agreement must be stated in the dealer agreement.
23 (4) A recreational vehicle dealer may not sell a new recreational
24 vehicle in this state without having first entered into a
25 manufacturer/dealer agreement with a manufacturer or distributor and
26 may not sell outside of the area of sales responsibility designated
27 in the agreement.
28 (5) A manufacturer may not unilaterally issue a policy or
29 procedure that violates or substantially alters a provision of the
30 manufacturer/dealer agreement during the duration of such agreement.
31 (6) A manufacturer will distribute new recreational vehicles to
32 its dealers in a fair and equitable manner. If requested, a
33 manufacturer will provide information on its manner of distribution.
34 (7) A manufacturer agrees to provide the dealer with adequate
35 technical data to perform proper service and repairs.
36 Termination, Cancellation, and Nonrenewal of a Manufacturer/Dealer
37 Agreement
p. 3 SHB 1996.SL
 1 NEW SECTION. Sec. 3. (1) A manufacturer or distributor,
2 directly or through any officer, agent, or employee, may only
3 terminate, cancel, or fail to renew a model, line-make, or entire
4 manufacturer/dealer agreement with good cause, and, upon renewal, may
5 not require additional inventory stocking requirements or increased
6 retail sales targets in excess of the market growth in the dealer's
7 area of sales responsibility.
8 (a) The manufacturer or distributor has the burden of showing
9 good cause for terminating, canceling, or failing to renew a model,
10 line-make, or manufacturer/dealer agreement with a dealer. For
11 purposes of determining whether there is good cause for the proposed
12 action, any of the following factors may be considered:
13 (i) The extent of the affected dealer's penetration in the
14 relevant market area for the relevant model or line-make;
15 (ii) The nature and extent of the dealer's investment in its
16 business;
17 (iii) The adequacy of the dealer's service facilities, equipment,
18 parts, supplies, and personnel;
19 (iv) The effect of the proposed action on the community;
20 (v) The extent and quality of the dealer's service under
21 recreational vehicle warranties;
22 (vi) The failure to follow agreed-upon, reasonable procedures or
23 standards related to the overall operation of the dealership
24 consistent with the law and the manufacturer/dealer agreement; or
25 (vii) The dealer's performance under the terms of its
26 manufacturer/dealer agreement.
27 (b) Except as otherwise provided in this section, a manufacturer
28 or distributor shall provide a dealer with at least 120 days prior
29 written notice of termination, cancellation, or nonrenewal of a
30 model, line-make, or the entire manufacturer/dealer agreement.
31 (i) The notice must state all reasons for the proposed
32 termination, cancellation, or nonrenewal and must further state that
33 if, within 30 days following receipt of the notice, the dealer
34 provides to the manufacturer or distributor a written notice of
35 intent to cure all claimed deficiencies, the dealer will then have
36 120 days following receipt of the notice to rectify the deficiencies.
37 If the deficiencies are rectified within 120 days, the manufacturer's
38 or distributor's notice is voided. If the dealer fails to provide the
39 notice of intent to cure the deficiencies in the prescribed time
40 period, the termination, cancellation, or nonrenewal takes effect 30
p. 4 SHB 1996.SL
 1 days after the dealer's receipt of the notice unless the dealer has
2 new and untitled inventory on hand that may be disposed of pursuant
3 to subsection (3) of this section.
4 (ii) The notice period may be reduced to 30 days if the grounds
5 for termination, cancellation, or nonrenewal are due to:
6 (A) A dealer or one of its owners being convicted of, or entering
7 a plea of nolo contendere to, a felony;
8 (B) The abandonment or closing of the business operations of the
9 dealer for 10 consecutive business days unless the closing is due to
10 an act of God, strike, labor difficulty, or other cause over which
11 the dealer has no control;
12 (C) A significant misrepresentation by the dealer materially
13 affecting the business relationship; or
14 (D) A suspension or revocation of the dealer's license, or
15 refusal to renew the dealer's license, by the department.
16 (iii) The notice provisions of this subsection (1)(b) do not
17 apply if the reason for termination, cancellation, or nonrenewal is
18 insolvency, the occurrence of an assignment for the benefit of
19 creditors, or bankruptcy.
20 (2) A dealer may terminate, cancel, or not renew a model, line-
21 make, or the entire manufacturer/dealer agreement with a manufacturer
22 or distributor with or without good cause at any time by giving 30
23 days written notice to the manufacturer. If the termination,
24 cancellation, or nonrenewal is for good cause, the dealer has the
25 burden of showing good cause. Any of the following items, among
26 others, may be deemed good cause for the proposed action by a dealer:
27 (a) A manufacturer being convicted of, or entering a plea of nolo
28 contendere to, a felony;
29 (b) The business operations of the manufacturer have been
30 abandoned or closed for 10 consecutive business days, unless the
31 closing is due to an act of God, strike, labor difficulty, or other
32 cause over which the manufacturer has no control;
33 (c) A significant misrepresentation by the manufacturer
34 materially affecting the business relationship;
35 (d) A material violation of this act, which is not cured within
36 30 days after written notice by the dealer;
37 (e) A declaration by the manufacturer of bankruptcy, insolvency,
38 or the occurrence of an assignment for the benefit of creditors or
39 bankruptcy;
p. 5 SHB 1996.SL
 1 (f) A material violation of the manufacturer/dealer agreement
2 that is not cured within 120 days after written notice by the dealer;
3 (g) Manufacturer coercion of dealer; or
4 (h) A manufacturer violation of area of sales responsibility
5 protections, or allowing other dealers to violate such protections.
6 (3) If the manufacturer/dealer agreement is terminated, canceled,
7 or not renewed by the dealer for good cause, the manufacturer shall,
8 at the election of the dealer and within 45 days after termination,
9 cancellation, or nonrenewal, repurchase:
10 (a) All new, untitled recreational vehicles that were acquired
11 from the manufacturer or distributor within 18 months before the date
12 of the notice of termination, cancellation, or nonrenewal that have
13 not been used, except for demonstration purposes, and that have not
14 been altered or damaged, at 100 percent of the net invoice cost,
15 including transportation, less applicable rebates and discounts to
16 the dealer. If any of the recreational vehicles repurchased are
17 damaged, the amount due to the dealer shall be reduced by the cost to
18 repair the damaged recreational vehicle. Damage prior to delivery to
19 the dealer will not disqualify repurchase under this subsection. Any
20 repurchased recreational vehicle must be paid in full before the
21 vehicle is removed from the dealer's premises. Upon payment, the
22 recreational vehicle must be immediately surrendered to the
23 manufacturer;
24 (b) All undamaged accessories and proprietary parts sold to the
25 dealer for resale within the 12 months prior to termination,
26 cancellation, or nonrenewal, if accompanied by the original invoice,
27 at 105 percent of the original net price paid to the manufacturer or
28 distributor to compensate the dealer for handling, packing, and
29 shipping the parts; and
30 (c) Any properly functioning diagnostic equipment, special tools,
31 current signage, and other equipment and machinery at 100 percent of
32 the dealer's net cost, plus freight, destination, delivery, and
33 distribution charges and sales taxes, if any, if it was purchased by
34 the dealer within five years before termination, cancellation, or
35 nonrenewal and upon the manufacturer's or distributor's request and
36 can no longer be used in the normal course of the dealer's ongoing
37 business.
38 (4) If the manufacturer/dealer agreement is terminated, canceled,
39 or not renewed by the manufacturer or distributor without good cause,
40 in violation of subsection (1) of this section, then the manufacturer
p. 6 SHB 1996.SL
 1 or distributor shall repurchase dealer inventory, equipment, parts,
2 etc. as provided in subsection (3) of this section.
3 (5) When selling the remaining inventory after termination:
4 (a) A dealer is not prohibited from selling the remaining in-
5 stock inventory of a particular line-make after a manufacturer/dealer
6 agreement has been terminated, canceled, or not renewed by the
7 manufacturer or distributor.
8 (b) If recreational vehicles of a line-make subject to the
9 terminated manufacturer/dealer agreement are not repurchased or
10 required to be repurchased by the manufacturer or distributor, the
11 dealer may continue to sell such recreational vehicles that are
12 subject to the terminated manufacturer/dealer agreement and are
13 currently in stock until those recreational vehicles are no longer in
14 the dealer's inventory.
15 (6) When taking on an additional line-make of a recreational
16 vehicle, a dealer shall notify in writing any manufacturer with whom
17 the dealer has a manufacturer/dealer agreement of the same line-make
18 at least 30 days prior to entering into a manufacturer/dealer
19 agreement with the manufacturer of the additional line-make.
20 Transfer of Ownership; Family Succession
21 NEW SECTION. Sec. 4. (1) If a dealer desires to make a change
22 in ownership by the sale of the business assets, stock transfer, or
23 otherwise, the dealer shall give the manufacturer or distributor
24 written notice at least 10 business days before the closing,
25 including all supporting documentation as may be reasonably required
26 by the manufacturer or distributor to determine if an objection to
27 the sale may be made. In the absence of a breach by the selling
28 dealer of its dealer agreement or this chapter, the manufacturer or
29 distributor shall not object to the proposed change in ownership
30 unless the prospective transferee:
31 (a) Has previously been terminated for cause by the manufacturer;
32 (b) Has