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Testimony Given on Maryland RV-Specific Franchise Bill

By RV Industry Association Staff

RV Industry Association Senior Manager of Government Affairs Nick Rudowich recently testified on a bill in Maryland that governs the relationship between RV dealers and manufacturers. The bill, MD HB 1173, is based on the RV-specific model law negotiated and agreed to by the RV Industry Association and the national RV Dealers Association and it will provide consistency for manufacturers to develop and manage dealer agreements across the states.

“In many states, RVs are covered by automobile franchise laws even though auto dealers and RV dealers operate under very different business models,” explains Rudowich in his testimony. “Unlike the automobile industry, there are no true franchises in the RV industry. The unique character of the RV sales and distribution model is based on one-dealer-to-many-manufacturers, versus the auto industry’s one-dealer-to-one-manufacturer model. Furthermore, the RV industry is not vertically integrated among manufacturers, parts, and suppliers like the auto industry, which creates a substantive difference in warranty obligations between the two industries.”

If passed, HB 1173 would enact an industry negotiated and agreed upon model law which would govern the relationship between RV Dealers and RV Manufacturers. RV-specific laws allow the RV industry to pursue its business model without interfering in the auto industry.

“These laws provide reciprocal advantages for RV dealers and benefit consumers,” continues Rudowich. “Enactment of an RV-specific law does not disrupt state business licensing laws and state agency oversight of RV dealer/ manufacturer interactions.”

Once passed out of committee, HB 1173 will need to receive approval from the full Maryland House of Delegates before moving to the Maryland Senate for approval. For questions, contact Nick Rudowich at nrudowich@rvia.org.

 

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