Regulatory framework proposed for recreational vehicles

The Transportation and Telecommunications Committee heard testimony Feb. 9 on a measure intended to ensure certain RV dealers in Nebraska are treated fairly by manufacturers.

LB1121, sponsored by Lincoln Sen. Beau Ballard, would regulate franchise agreements between manufacturers and dealers of RVs, which the bill defines as motor homes, travel trailers, fifth-wheel travel trailers, truck campers and folding camping trailers.

Unlike motor homes, Ballard said, towable RVs are not regulated as motor vehicles, meaning manufacturers are not required to sign franchise agreements with dealers.

“This leaves local dealers of those vehicles unprotected from manufacturers and manufacturers who have no forcible guarantee for dealers,” he said. “There is no way to police disputes between the two.”

LB1121 would authorize the Nebraska Motor Vehicle Industry Licensing Board to regulate the issuance and revocation of licenses to dealers, manufacturers and distributors of new RVs.

Beginning Jan. 1, 2027, a manufacturer or distributor could not sell a new RV in Nebraska to or through a dealer without first entering into a manufacturer-dealer agreement specifying the parties’ rights and responsibilities.

An agreement would include a designation of the area of sales responsibility within which the dealer would have the exclusive right to display or sell the manufacturer’s new RVs of a particular line-make. A manufacturer or distributor would be prohibited from terminating an agreement unless they can show that good cause exists.

Among other provisions, LB1121 would create requirements for dealers and manufacturers related to warranty service and compensation.

The bill also would add one licensed RV dealer and one licensed RV manufacturer to the nine-member Motor Vehicle Industry Licensing Board.

Nicholas Staab, a Grand Island RV dealer, testified in support of the measure. He said his dealership sells mostly travel trailers and fifth-wheel trailers under “handshake” agreements with various manufacturers.

Requiring manufacturers to sign franchise agreements outlining a specific sales territory would protect established dealers that have purchased millions of dollars’ worth of inventory from upstart dealers looking to sell the same models, Staab said.

No one testified in opposition to LB1121 and the committee took no immediate action on it.