Pennsylvania has become the latest state to enact an RV specific franchise law, bringing the total number of states with unique laws dealing only with RVs to 20. The Pennsylvania bill, SB 764, removes RVs from the auto franchise section of code and creates a new section of code with provisions better suited for the RV industry. The new law in Pennsylvania will take effect on Oct. 24, 2019.
In a number of states, RVs are covered by auto franchise laws even though auto dealers and RV dealers operate under different business models. Unlike the automobile industry, there are no true franchises in the RV industry, the RV Industry Association stated. 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.
RV specific laws, like the one enacted in Pennsylvania, provide consistency for manufacturers to develop and manage dealer agreements across the states while providing reciprocal advantages for RV dealers.
RVIA thanked the industry partners and legislators who supported SB 764 throughout the legislative process, especially the Pennsylvania Recreation Vehicle & Camping Association. It also thanked bill sponsors Senators John Gordner (R-27), John Rafferty Jr. (R-44), Christine Tartaglione (D-2) and David Argall (R-29).
With the passage and implementation of SB 764, fourteen states have enacted RVIA’s model franchise law. Six additional states have enacted laws that are not based on RVIA’s model but still move RVs out of the automobile law and into a separate RV code section.