Senate Bill 287 (SB 287):  This legislation establishes a dedicated framework for recreational vehicle manufacturer-dealer relationships in New Mexico. It prescribes specific rules and protections for both RV dealers and manufacturers, including exclusive sales territories, restrictions on termination, repurchase obligations, warranty requirements, and a mediation process to resolve disputes before going to court. This bill supersedes certain aspects of the existing franchise law for RVs, ensuring that dealerships and manufacturers of new RVs operate under a tailored legal scheme. 

 Senate Bill 287 (SB 287):  This bill creates a new legal framework—the Recreational Vehicle Manufacturer and Dealer Act—that governs the relationship between manufacturers (and distributors) of new recreational vehicles (RVs) and the dealerships that sell them. It exempts RV dealers and manufacturers from certain provisions of existing motor vehicle franchise laws (Chapter 57, Article 16 NMSA 1978) and replaces them with rules tailored for the recreational vehicle industry.
1.	Exemption from Existing Motor Vehicle Franchise Laws
•	Section 57-16-2 is amended so that the existing Motor Vehicle Dealers Franchising Act no longer applies to dealers, manufacturers, or distributors selling new recreational vehicles.
•	Section 57-16-3 updates definitions, removing RVs from some of the existing statutory language and clarifying that “recreational vehicle” is to be defined and governed separately in the new law.
2.	Creation of the Recreational Vehicle Manufacturer and Dealer Act
•	Sections 3 through 13 of the bills introduce a new chapter called the Recreational Vehicle Manufacturer and Dealer Act, which includes specific rules for manufacturer-dealer agreements, warranty obligations, transfers of ownership, dispute resolution, and penalties. Below are the key components:
3.	Scope and Key Definitions:
•	Recreational Vehicle - A vehicle, either self-propelled or towed, designed as temporary living quarters for recreational, camping, or travel use (motor homes, travel trailers, fifth wheels, truck campers, folding camping trailers).
•	Manufacturer-Dealer Agreement - A written contract between an RV manufacturer (or distributor) and a dealer that grants the dealer the right to sell new RVs in a particular “area of sales responsibility.”
•	Area of Sales Responsibility - A geographic area in which a dealer has an exclusive right to sell a particular RV line-make.
•	Line-Make - A specific series of RV products with a particular market segment, features, and chassis design that distinguish it from others.
4.	Requirements for Selling New RVs - (Section 5)
•	Written Agreement Required - A manufacturer or distributor must have a written agreement with a dealer before selling new RVs through that dealer.
5.	Exclusivity of Sales Area- 
•	Each manufacturer-dealer agreement designates an exclusive area of sales responsibility.
•	The manufacturer or distributor cannot add another dealer for the same line-make in the same area during the agreement term unless all parties agree in writing.
6.	No Unilateral Policy Changes
•	A manufacturer or distributor may not issue policies that substantially alter the existing agreement without the dealer’s written consent.
7.	Fair Distribution
•	The manufacturer or distributor must distribute RVs among dealers in a fair and equitable manner.
•	They must also provide adequate technical data and support for service/repairs.
8.	Termination, Cancellation, and Nonrenewal of Agreements (Section 6):
•	Good Cause Required - A manufacturer or distributor may only terminate, cancel, or fail to renew a line-make agreement for “good cause” (e.g., consistent poor performance, violation of the contract, insolvency, fraud, license revocation).
•	Advance Written Notice - Typically, a terminating party must give the dealer at least 120 days’ notice before ending an agreement.
•	In certain serious cases—like felony convictions, abandonment of the business, or misrepresentation—this notice can be reduced to 30 days.
•	Dealer Rights to Cure - The dealer usually has 30 days to respond to a notice of termination and may have up to 120 days to fix any stated problems.
•	Dealer-Initiated Termination - A dealer may terminate with or without cause on 30 days’ notice, though “good cause” must be shown for certain legal protections to apply (e.g., if the manufacturer is insolvent or commits a major violation).
9.	Repurchase Obligations Upon Termination (Section 7) - Inventory Buyback
•	If a dealer validly terminates or if a manufacturer wrongfully terminates an agreement, the manufacturer or distributor must repurchase:  New, untitled RVs bought within 18 months (unused except for demos).
•	Undamaged accessories/proprietary parts purchased within 12 months (at cost plus a handling charge).
•	Special tools/signage acquired within 5 years, if no longer usable in the dealer’s ordinary course of business.
•	Payment Timing - Payment to the dealer is due before removal of the inventory from the dealership.
10.	Transfer of Ownership and Family Succession (Section 8) - Manufacturer’s Limited Right to Object
•	If a dealer plans to sell or transfer the dealership, it must notify the manufacturer/distributor.
•	A manufacturer/distributor can object only for specific reasons (e.g., the new owner has a criminal history or serious financial instability).
•	Family Succession - Dealers can designate a family member as a successor if the dealer dies, retires, or becomes incapacitated.
•	The manufacturer may only object under the limited grounds outlined above (e.g., license ineligibility, felony conviction, etc.).
11.	 Dealer Inspection, Rejection of Damaged RVs (Section 9) - Damage Prior to Dealer Receipt
•	If a new RV is damaged before or during transit (when the manufacturer chose the carrier), the dealer can either:
•	Request authorization for repair; or Reject the RV within the period specified in the contract (at least 2 business days after delivery).
•	Odometer Reading - A dealer may reject a new RV that arrives with an unreasonable amount of mileage.  A mileage threshold includes a factory-to-dealer distance plus 100 miles.
12.	 Prohibition on Coercion (Section 10) - A manufacturer or distributor cannot coerce or force a dealer to: Purchase products not ordered, take any illegal or unreasonable action, or Sign onto binding arbitration or give up legal rights without the dealer’s voluntary consent.
•	Warranty Obligations (Section 11) - Warrantor’s Duties
•	Must clearly spell out dealer obligations for prepping/delivering and performing warranty service.
•	Must reimburse dealers for warranty labor and parts at reasonable rates.
•	Must not misrepresent that a dealer is a co-warrantor or require a dealer to provide warranties on the manufacturer’s behalf.
13.	Dealer’s Duties
•	Must do warranty work timely and competently.
•	Must submit warranty claims within 45 days of completing work.
•	Must not misrepresent warranty terms.
14.	Claims Approval
•	Warranty claims are deemed approved if not specifically disapproved by the warrantor within 45 days.
•	Indemnification - Both the manufacturer and the dealer must indemnify each other for damages caused by their own negligence or misconduct.
15.	Dispute Resolution—Mediation Before Civil Suit (Section 12) - Mediation First:
•	Before filing a lawsuit under this Act, the injured party must attempt mediation—unless seeking immediate injunctive relief.
•	A demand for mediation stays any court action until the mediation is completed or a party refuses to participate.
•	Venue - Any civil suit must generally be filed in the county where the dealership is located.
•	Court-Ordered Relief - A prevailing party may recover actual damages and attorney fees.  Temporary or permanent injunctions may be granted to stop unlicensed or illegal activities.
16.	J. Penalties (Section 13) - Administrative Penalties
•	The Taxation and Revenue Department may suspend or revoke licenses for violations.
It may also impose up to $1,000 per violation in administrative fines.
•	Right to Appeal - A person subject to penalties may appeal to the Administrative Hearings Office and then to district court if still aggrieved.
•	Repeal of Existing Section on RV Manufacturers
•	Section 14 repeals an existing portion of the law (Section 57-16-6.2 NMSA 1978) that dealt with RV manufacturers and distributors, removing it from coverage under the old law in favor of the new legislation.
The Act’s provisions go into effect on January 1, 2026.
 

 As used in Chapter 57, Article 16 NMSA 1978:  
A. "motor vehicle" means every self-propelled vehicle, having two or more wheels, by 
which a person or property may be transported on a public highway, and includes 
recreational vehicles;  
B. "motor vehicle dealer" or "dealer" means any person who sells or solicits or 
advertises the sale of new or used motor vehicles. "Motor vehicle dealer" or "dealer" 
shall not include:  
(1) receivers, trustees, administrators, executors, guardians or other persons appointed 
by or acting under judgment, decree or order of any court;  
(2) public officers while performing their duties as such officers;  
(3) persons making casual sales of their own vehicles duly registered and licensed to 
them by the state; or  
(4) finance companies, banks and other lending institutions covering sales of 
repossessed vehicles;  
C. "person" means every natural person, partnership, corporation, association, trust, 
estate or any other legal entity;  
D. "prospective purchaser" means a person who has a bona fide written agreement to 
purchase a franchise;  
E. "manufacturer" means any person who manufactures or assembles new motor 
vehicles either within or outside of this state;  
F. "distributor" means any person who distributes or sells new or used motor vehicles to 
dealers and who is not a manufacturer;  
G. "representative" means any person who is or acts as an agent, employee or 
representative of a manufacturer or distributor and who performs any duties in this state 
relating to promoting the distribution or sale of new or used motor vehicles or contacts 
dealers in this state on behalf of a manufacturer or distributor;  
H. "franchise" means an oral or written arrangement for a definite or indefinite period in 
which a manufacturer, distributor or representative grants to a motor vehicle dealer a 
license to use a trade name, service mark or related characteristic and in which there is 
a community of interest in the marketing of motor vehicles or services related to 
marketing, service or repair of motor vehicles at wholesale, retail, leasing or otherwise;  
I. "fraud" includes, in addition to its normal legal connotation, the following:  
(1) a misrepresentation in any manner, whether intentionally false or due to gross 
negligence, of a material fact;  
(2) a promise or representation not made honestly and in good faith; and  
(3) an intentional failure to disclose a material fact;  
J. "sale" includes:  
(1) the issuance, transfer, agreement for transfer, exchange, pledge, hypothecation or 
mortgage in any form, whether by transfer in trust or otherwise, of any motor vehicle or 
interest therein or of any franchise related thereto; and  
(2) any option, subscription or other contract or solicitation looking to a sale or offer or 
attempt to sell in any form, whether spoken or written. A gift or delivery of any motor 
vehicle or franchise with respect thereto with, or as, a bonus on account of the sale of 
anything shall be deemed a sale of such motor vehicle or franchise;  
K. "motorcycle" means any motor vehicle used on or off a public highway that has an 
unladen weight of less than one thousand five hundred pounds;  
L. "recreational vehicle" means any motor vehicle with a camping body that either has 
its own motive power or is drawn by another vehicle;  
M. "designated family member" means a spouse, child, grandchild, parent, brother or 
sister of a deceased or incapacitated dealer who is entitled to inherit the dealer's 
ownership interest in the dealership under the terms of a will or the laws of intestate 
succession in this state. In the case of an incapacitated dealer, the term means the 
person appointed by a court as the legal representative of the dealer's property. The 
term also includes the appointed and qualified personal representative and the 
testamentary trustee of a deceased dealer. However, the term shall be limited to mean 
only that individual designated by the motorcycle dealer in a written document filed with 
the manufacturer, distributor or representative in the event that such a document has 
been filed;  
N. "current price" means an amount equal to the price listed in the manufacturer's or 
distributor's printed price list in effect when the franchise is terminated, less applicable 
trade and cash discounts;  
O. "dealer cost" means an amount equal to the sum of the original invoice price that the 
dealer paid for inventory and the cost of the delivery of the inventory from the 
manufacturer or distributor to the dealer, less applicable discounts;  
P. "inventory" means new or unused motorcycles, motorcycle attachments and repair 
parts that are provided by a manufacturer or distributor to a dealer under a franchise 
agreement and that are purchased within thirty-six months of the termination of the 
franchise or are listed in the manufacturer's or distributor's current sales manual or price 
list at the time that the franchise is terminated; and  
Q. "relevant market area" means an area of a size specified in this subsection around 
an existing motor vehicle dealer's place of business. The size of the area shall be the 
greater of the area of responsibility specified in the dealer's franchise or a circle with a 
center at the dealer's place of business and a radius of:  
(1) seven miles, if the population of the county in which the dealership is located is two 
hundred fifty thousand or more;  
(2) fifteen miles, if the population of the county in which the dealership is located is less 
than two hundred fifty thousand but is thirty-five thousand or more; or  
(3) twenty miles in all other cases.  
If the existing and proposed dealerships are in different counties, the lesser of the 
applicable mileage limitations shall be used. For purposes of this subsection, the 
population of any area shall be determined in accordance with the most recent 
decennial census or the most recent population update from the national planning data 
corporation or other similar recognized source, whichever is later.  
History: 1953 Comp., § 64-37-3, enacted by Laws 1973, ch. 6, § 3; 1977, ch. 100, § 1; 
1985, ch. 213, § 1; 1991, ch. 49, § 1; 1995, ch. 19, § 1; 1997, ch. 31, § 1.
 

 Committee Substitute on February 28, 2025 in STBTC.

STBTCcs/SB 287: The purpose an scope of this bills applies to manufacturers, distributors, and dealers of new recreational vehicles (RVs).  An RV is defined as a self-propelled or towed vehicle designed to provide temporary living quarters for recreational, camping, or travel use. Examples include motor homes, travel trailers, fifth wheels, truck campers, and folding camping trailers.
Manufacturer-Dealer Agreements - Written Agreement Required:
•	A manufacturer or distributor must have a written agreement with a dealer before selling new RVs to that dealer.
•	The agreement must fix the rights and responsibilities of both parties and designate an exclusive area of sales responsibility for the dealer.
Duration & Exclusivity:
•	The written agreement states a term (length) and an assigned geographic sales area.
•	The manufacturer or distributor cannot add another dealer in that same territory to sell the same line-make during the agreement’s term, unless all parties agree in writing.
Restrictions:
•	A manufacturer or distributor may not impose policy changes that contradict or substantially alter the agreement unless the dealer consents in writing.
Distribution Fairness:
•	A manufacturer/distributor must allocate new units fairly and give dealers adequate technical data for repairs.
Termination, Cancellation, Nonrenewal - “Good Cause” Standard:
•	A manufacturer or distributor can only end (terminate) or refuse to renew a model, line-make, or entire agreement with good cause. Factors to determine good cause include (for example):
•	Dealer’s market penetration, investment, facilities, service quality, etc.
•	If termination is without good cause, the manufacturer/distributor must repurchase certain inventory from the dealer.
Advance Notice:
•	Generally, a manufacturer/distributor must give 120 days’ written notice before termination, cancellation, or nonrenewal of the agreement.
•	The dealer then has 30 days to provide written intent to cure any stated deficiencies and up to 120 days to fix them.
Short Notice Exceptions:
•	In certain severe circumstances (like dealer’s felony conviction or license revocation), the notice may be 30 days (or even immediate in some cases).
Dealer Rights:
•	A dealer can also terminate/cancel the agreement at any time with 30 days’ notice — good cause or not.
•	If it’s with good cause (e.g., manufacturer’s felony, abandonment, material misrepresentation, violation of the Act), the manufacturer must repurchase certain vehicles and inventory.
Required Repurchase - When Repurchase Occurs:
•	If the dealer ends the agreement with good cause, or if the manufacturer/distributor ends the agreement without good cause, the manufacturer/distributor must buy back certain unsold vehicles, accessories, and tools from the dealer.
Repurchase Terms:
•	New, untitled RVs bought within 18 months prior to termination: repurchase at 100% of original invoice (minus rebates or discount), plus certain charges.
•	Certain accessories & proprietary parts purchased within 12 months: 105% of invoice cost.
•	Certain tools/equipment within 5 years: 100% of invoice cost plus shipping/taxes.
•	Payment is due before the vehicle/equipment is taken from the dealership.
Change in Ownership / Family Succession - Ownership Transfer:
•	A dealer must give the manufacturer or distributor written notice of a proposed sale or change in ownership at least 10 business days before closing.
•	The manufacturer or distributor can object only if the prospective new owner:
•	Has a prior termination with the manufacturer/distributor for good cause,
•	Lacks sufficient licensing, credit, or has a felony conviction, etc.
Family Succession:
•	A dealer can designate a family member as a successor in case of death, retirement, or incapacity.
•	The manufacturer or distributor has 10 business days to object in writing (on limited grounds) or else the succession stands.
Inspection and Rejection of Damaged RVs - Delivery Damage:
•	If an RV arrives damaged (pre-transit or in transit by manufacturer’s chosen carrier), the dealer must notify the manufacturer/distributor.
•	The dealer can request authorization to repair or choose to reject the vehicle within the specified timeframe.
Excessive Miles:
•	A dealer can reject an RV if it arrives with unreasonably high odometer miles, typically more than the distance from factory + 100 miles.
Ownership Reverts:
•	If an RV is rejected or the manufacturer won’t authorize repairs, the RV returns to the manufacturer/distributor.
Prohibiting Coercion:
•	A manufacturer or distributor shall not coerce or attempt to coerce a dealer into taking specific actions, like signing an agreement with unfavorable terms or waiving any legal rights.
•	“Coercion” includes threatening termination or withholding product unless the dealer complies with certain demands.
8. Warranty Obligations - Warrantor Responsibilities:
•	Provide written warranty policies to dealers, including a schedule of compensation for labor and parts.
•	Pay at least the dealer’s retail labor rate if that’s the normal rate for similar non-warranty work.
•	Pay for parts at wholesale cost + 30% for handling.
•	Approve or reject warranty claims within 45 days or they’re considered approved. Payment is due within 60 days.
•	Indemnify a dealer for claims arising from manufacturer negligence or willful misconduct.
Dealer Responsibilities:
•	Submit warranty claims within 45 days of completing work.
•	Provide timely, competent warranty repairs.
•	Service any transient customer of the same line-make.
Consumer Protection—Dealer Duties
•	Prohibited Practices for Dealers
•	Cannot require a retail buyer to buy unwanted features, use false or misleading advertising, or defraud a buyer.
•	Cannot sell a used RV as new.
•	Enforcement & Damages
•	A harmed consumer can sue for actual damages, plus potential injunctive relief.
•	Courts may award punitive damages (up to 3× actual damages) for malicious conduct, plus attorney fees and costs if appropriate.
Time Limits:
•	A consumer has 4 years to bring an action, with certain tolling if there’s fraudulent concealment or ongoing government proceedings.
Dispute Resolution & Mediation - Mediation Requirement:
•	Before filing a civil suit (except consumer suits under Section 10 or emergency injunctions), a dealer, manufacturer, or distributor must attempt mediation in good faith.
•	The party demanding mediation sends a written notice to the responding party. They select a neutral mediator and meet within 30 days.
Civil Action:
•	If mediation fails or no response is provided within 30 days, the harmed party may sue in district court.
•	Courts can order injunctions, damages, attorney fees.
•	Venue
•	Suit is filed where the dealership is located (or if multiple dealers, in any relevant county).
Administrative Penalties:
•	If the taxation and revenue department finds that a dealer violated the Act, it may suspend or revoke the dealer’s license.
•	The department may also assess an administrative penalty up to $1,000 per violation on anyone (dealer, manufacturer, or other) who violates the Act.
•	Appeals go to the administrative hearings office, and further appeal to district court is possible.
Exemption from Existing Motor Vehicle Franchise Law:
•	Dealers and manufacturers who only manufacture or sell new recreational vehicles are excluded from the franchise protections and restrictions of Chapter 57, Article 16 NMSA 1978 (the existing Motor Vehicle Dealers Franchising Act).
•	A separate definition for “recreational vehicle” is now recognized, removing them from certain previous definitions.
13. Effective Date - The law becomes effective January 1, 2026.