Bill Text: IA SF290 | 2015-2016 | 86th General Assembly | Introduced


Bill Title: A bill for an act relating to the regulation of agreements between manufacturers or distributors, and dealers relating to the sale of recreational vehicles and including applicability provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-02-24 - Subcommittee, Danielson, Bowman, and Breitbach. S.J. 375. [SF290 Detail]

Download: Iowa-2015-SF290-Introduced.html
Senate File 290 - Introduced




                                 SENATE FILE       
                                 BY  DANIELSON

                                      A BILL FOR

  1 An Act relating to the regulation of agreements between
  2    manufacturers or distributors, and dealers relating to the
  3    sale of recreational vehicles and including applicability
  4    provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 2019SS (2) 86
    av/nh

PAG LIN



  1  1                           DIVISION I
  1  2                   RECREATIONAL VEHICLE SALES
  1  3    Section 1.  NEW SECTION.  322E.1  Definitions.
  1  4    When used in this chapter, unless the context otherwise
  1  5 requires:
  1  6    1.  "Area of sales responsibility" means the geographical
  1  7 area, agreed to by a dealer and a manufacturer or distributor
  1  8 in a manufacturer and dealer agreement, within which area
  1  9 the dealer has the exclusive right to display and sell the
  1 10 manufacturer's or distributor's new recreational vehicles of a
  1 11 particular line=make to a consumer.
  1 12    2.  "Consumer" means a person who is offered or purchases a
  1 13 new recreational vehicle in a retail transaction.
  1 14    3.  "Dealer" means any person, firm, corporation, or business
  1 15 entity licensed or required to be licensed as a motor vehicle
  1 16 dealer pursuant to chapter 322 or as a travel trailer dealer
  1 17 pursuant to chapter 322C.
  1 18    4.  "Distributor" means any person, firm, corporation, or
  1 19 business entity that purchases new recreational vehicles for
  1 20 resale to a dealer.
  1 21    5.  "Factory campaign" means an effort on the part of a
  1 22 warrantor to contact a recreational vehicle owner or dealer in
  1 23 order to address a part or equipment issue.
  1 24    6.  "Family member" means a person who is the spouse, child,
  1 25 grandchild, parent, sibling, niece, or nephew of a recreational
  1 26 vehicle owner or the spouse of such a person.
  1 27    7.  "Fifth=wheel trailer" means a vehicle, mounted on wheels,
  1 28 designed to provide temporary living quarters for recreational,
  1 29 camping, or travel use, of such size and weight as to not
  1 30 require a special highway movement permit and designed to be
  1 31 towed by a motorized vehicle that contains a towing mechanism
  1 32 mounted above or forward of the tow vehicle's rear axle.
  1 33    8.  "Folding camping trailer" means a vehicle mounted on
  1 34 wheels and constructed with collapsible partial side walls
  1 35 that fold for towing by another vehicle and unfold to provide
  2  1 temporary living quarters for recreational, camping, or travel
  2  2 use.
  2  3    9.  "Line=make" means a specific series of recreational
  2  4 vehicles that include all of the following:
  2  5    a.  Are identified by a common series trade name or
  2  6 trademark.
  2  7    b.  Are targeted to a particular market segment, as
  2  8 determined by the recreational vehicle's decor, features,
  2  9 equipment, size, weight, and price range.
  2 10    c.  Have lengths and interior floor plans that distinguish
  2 11 the recreational vehicle from other recreational vehicles
  2 12 with substantially the same decor, features, equipment, size,
  2 13 weight, and price range.
  2 14    d.  Belong to a single, distinct classification of
  2 15 recreational vehicle product type having a substantial degree
  2 16 of commonality in the construction of the chassis, frame, and
  2 17 body, and in price range.
  2 18    e.  Are authorized for sale by a dealer pursuant to a
  2 19 manufacturer and dealer agreement.
  2 20    10.  "Manufacturer" means any person, firm, corporation,
  2 21 or business entity that engages in the manufacturing of
  2 22 recreational vehicles.
  2 23    11.  "Manufacturer and dealer agreement" means a written
  2 24 agreement or contract entered into between a manufacturer
  2 25 or distributor and a dealer that fixes the rights and
  2 26 responsibilities of the parties and pursuant to which the
  2 27 dealer sells new recreational vehicles.
  2 28    12.  "Motor home" means a motorized vehicle which is either
  2 29 self=propelled or towed by a consumer=owned vehicle, and
  2 30 is primarily designed to provide temporary living quarters
  2 31 for recreational, camping, or travel use.  A "motor home"
  2 32 contains at least four of the following permanently installed
  2 33 independent life=support systems which meet the national fire
  2 34 protection association standard for recreational vehicles:
  2 35    a.  A cooking facility with an on=board fuel source.
  3  1    b.  A potable water supply system that includes at least
  3  2 a sink, a faucet, and a water tank with an exterior service
  3  3 supply connection.
  3  4    c.  A toilet with exterior evacuation.
  3  5    d.  A gas or electric refrigerator.
  3  6    e.  A heating or air conditioning system with an on=board
  3  7 power or fuel source separate from the vehicle engine.
  3  8    f.  A one hundred ten to one hundred twenty volt power
  3  9 supply.
  3 10    13.  "Park model recreational vehicle" means a vehicle that
  3 11 is all of the following:
  3 12    a.  Designed and marketed primarily not for use as a
  3 13 permanent dwelling but as temporary living quarters for
  3 14 recreational, camping, travel, or seasonal use.
  3 15    b.  Between three hundred twenty and four hundred square
  3 16 feet in size based on the exterior dimensions of the vehicle
  3 17 measured at the largest horizontal projections when erected on
  3 18 site including all space which has a ceiling height of more
  3 19 than five feet, and any expandable room, slide=out, tip=out,
  3 20 or tag=along unit.
  3 21    c.  Built on a single chassis and not designed to accept
  3 22 additional structures, add=ons, or other additions that will
  3 23 increase the area as determined in paragraph "b" in excess of
  3 24 four hundred square feet.
  3 25    d.  Built pursuant to a third=party inspection and
  3 26 certification process.
  3 27    e.  Built to the American national standards institute A119.5
  3 28 park model recreational vehicle standard.
  3 29    14.  "Proprietary part" means any part manufactured by or for
  3 30 and sold exclusively by a manufacturer.
  3 31    15.  "Recreational vehicle" means a vehicle which is
  3 32 either self=propelled or towed by a consumer=owned vehicle,
  3 33 primarily designed to provide temporary living quarters for
  3 34 recreational, camping, or travel use that complies with all
  3 35 applicable federal vehicle regulations and does not require a
  4  1 special highway movement permit to legally use the highways.
  4  2 "Recreational vehicle" includes a "motor home" and a "travel
  4  3 trailer".
  4  4    16.  "Supplier" means any person, firm, corporation, or
  4  5 business entity that engages in the manufacture of recreational
  4  6 vehicle parts, accessories, or components.
  4  7    17.  "Transient consumer" means a consumer who is temporarily
  4  8 traveling through a dealer's area of sales responsibility.
  4  9    18.  "Travel trailer" means a vehicle, mounted on wheels,
  4 10 designed to provide temporary living quarters for recreational,
  4 11 camping, or travel use of such size and weight as to not
  4 12 require a special highway movement permit when towed by a
  4 13 motorized vehicle.  "Travel trailer" includes a fifth=wheel
  4 14 travel trailer, folding camping trailer, truck camper, and a
  4 15 park model recreational vehicle, but does not include a vehicle
  4 16 that is so designed as to permit it to be towed exclusively by
  4 17 a motorcycle.
  4 18    19.  "Truck camper" means a vehicle designed to be placed in
  4 19 the bed of a pickup truck to provide temporary living quarters
  4 20 for recreational, camping, or travel use.
  4 21    20.  "Warrantor" means any person, firm, corporation, or
  4 22 business entity, including any manufacturer or supplier, that
  4 23 provides a written warranty to a consumer in connection with
  4 24 a new recreational vehicle or a part, accessory, or component
  4 25 of a new recreational vehicle.  "Warrantor" does not include
  4 26 a dealer, supplier, or other person, firm, corporation, or
  4 27 business entity not controlled by a manufacturer that provides
  4 28 a service contract, mechanical or other insurance, or extended
  4 29 warranties sold for separate consideration to a consumer.
  4 30    Sec. 2.  NEW SECTION.  322E.2  Manufacturer and dealer
  4 31 agreements ==== area of sales responsibility.
  4 32    1.  A manufacturer or distributor shall not sell a new
  4 33 recreational vehicle in this state to or through a dealer
  4 34 without first entering into a written manufacturer and dealer
  4 35 agreement with the dealer that has been signed by both parties.
  5  1 A dealer shall not sell a new recreational vehicle in this
  5  2 state without first entering into a written manufacturer and
  5  3 dealer agreement with a manufacturer or distributor that has
  5  4 been signed by both parties.
  5  5    2.  A manufacturer and dealer agreement shall designate the
  5  6 area of sales responsibility exclusively assigned to a dealer
  5  7 by the manufacturer or distributor and the manufacturer or
  5  8 distributor shall not change that area or contract with another
  5  9 dealer for sale of the same line=make in the designated area
  5 10 for the duration of the agreement.
  5 11    3.  If, subsequent to entering into a manufacturer and
  5 12 dealer agreement, a dealer enters into an agreement with
  5 13 another manufacturer or distributor to sell recreational
  5 14 vehicles, or enters into an agreement to increase the dealer's
  5 15 preexisting commitment to sell recreational vehicles of another
  5 16 manufacturer or distributor, the manufacturer or distributor
  5 17 may revise the area of sales responsibility designated in the
  5 18 manufacturer and dealer agreement, upon a determination by the
  5 19 manufacturer or distributor that the market penetration of the
  5 20 manufacturer's or distributor's products is jeopardized by the
  5 21 dealer's subsequent agreement to sell or increase the sales of
  5 22 another manufacturer's or distributor's recreational vehicles.
  5 23    4.  Except as otherwise provided in subsection 3, the area of
  5 24 sales responsibility designated in a manufacturer and dealer
  5 25 agreement shall not be reviewed or changed until at least one
  5 26 year after execution of the agreement without the consent of
  5 27 both parties to the agreement.
  5 28    Sec. 3.  NEW SECTION.  322E.3  Manufacturer and dealer
  5 29 agreements ==== termination, cancellation, nonrenewal, and
  5 30 alteration.
  5 31    1.  Termination by manufacturer or distributor.  A
  5 32 manufacturer or distributor, directly or through any authorized
  5 33 officer, agent, or employee, may terminate, cancel, or fail to
  5 34 renew a manufacturer and dealer agreement with or without good
  5 35 cause as follows:
  6  1    a.  If the manufacturer or distributor terminates, cancels,
  6  2 or fails to renew a manufacturer and dealer agreement without
  6  3 good cause, the manufacturer or distributor shall comply with
  6  4 the provisions of section 322E.4.
  6  5    b.  If the manufacturer or distributor terminates, cancels,
  6  6 or fails to renew a manufacturer and dealer agreement with
  6  7 good cause, the manufacturer or distributor is not required to
  6  8 comply with the provisions of section 322E.4.
  6  9    c.  The manufacturer or distributor has the burden of showing
  6 10 good cause for terminating, canceling, or failing to renew a
  6 11 manufacturer and dealer agreement.  For purposes of determining
  6 12 whether good cause exists for such termination, cancellation,
  6 13 or nonrenewal of the agreement, any of the following factors
  6 14 may be considered:
  6 15    (1)  The extent of the affected dealer's penetration in the
  6 16 area of sales responsibility.
  6 17    (2)  The nature and extent of the dealer's investment in the
  6 18 dealer's business.
  6 19    (3)  The adequacy of the dealer's service facilities,
  6 20 equipment, parts, supplies, and personnel.
  6 21    (4)  The effect of the proposed termination, cancellation,
  6 22 or nonrenewal of the agreement on the community.
  6 23    (5)  The extent and quality of the dealer's service under the
  6 24 warranties of the recreational vehicles sold.
  6 25    (6)  The dealer's failure to follow agreed upon procedures or
  6 26 standards related to the overall operation of the dealership.
  6 27    (7)  The dealer's performance under the terms of the
  6 28 manufacturer and dealer agreement.
  6 29    d.  (1)  Except as otherwise provided in this paragraph
  6 30 "d", a manufacturer or distributor shall provide a dealer with
  6 31 at least ninety days' prior written notice of termination,
  6 32 cancellation, or nonrenewal of the manufacturer and dealer
  6 33 agreement if the agreement is being terminated, canceled, or
  6 34 nonrenewed with or without good cause.
  6 35    (2)  (a)  If the proposed termination, cancellation, or
  7  1 nonrenewal of the agreement is for good cause, the notice shall
  7  2 state all of the reasons for the termination, cancellation, or
  7  3 nonrenewal and shall further state that if, within thirty days
  7  4 following receipt of the notice, the dealer provides to the
  7  5 manufacturer or distributor a written notice of intent to cure
  7  6 all claimed deficiencies, the dealer shall then have ninety
  7  7 days following receipt of the notice to cure the deficiencies.
  7  8 If the dealer fails to provide notice of intent to cure the
  7  9 deficiencies within thirty days following receipt of the
  7 10 notice,  the termination, cancellation, or nonrenewal of the
  7 11 agreement for good cause takes effect thirty days following the
  7 12 dealer's receipt of the notice.
  7 13    (b)  If the dealer provides notice of intent to cure the
  7 14 deficiencies stated and the deficiencies are cured by the
  7 15 dealer within ninety days following receipt of the notice,
  7 16 the manufacturer's or distributor's notice to the dealer is
  7 17 voided.  If the dealer provides notice of intent to cure the
  7 18 deficiencies stated and fails to cure the deficiencies within
  7 19 ninety days following receipt of the notice, the termination,
  7 20 cancellation, or nonrenewal of the agreement for good cause
  7 21 takes effect ninety days following the dealer's receipt of the
  7 22 notice.
  7 23    (c)  If the dealer has new and untitled inventory of
  7 24 recreational vehicles on hand at the time the termination,
  7 25 cancellation, or nonrenewal of the agreement takes effect for
  7 26 good cause, the inventory may be sold by the dealer as provided
  7 27 in section 322E.4, subsection 2, paragraph "b".
  7 28    e.  Notwithstanding paragraph "d", the notice period for
  7 29 termination, cancellation, or nonrenewal of a manufacturer
  7 30 and dealer agreement for good cause may be reduced to thirty
  7 31 days if the grounds for such termination, cancellation, or
  7 32 nonrenewal are due to any of the following factors:
  7 33    (1)  The dealer or one of the dealer's owners has been
  7 34 convicted of or has entered a plea of nolo contendere to a
  7 35 felony.
  8  1    (2)  The dealer has abandoned or closed the dealer's business
  8  2 operations for ten consecutive business days, unless the
  8  3 closing is due to an act of God, a strike, a labor difficulty,
  8  4 or other cause over which the dealer has no control.
  8  5    (3)  The dealer has made a significant misrepresentation
  8  6 that materially affects the business relationship of the
  8  7 manufacturer or distributor and the dealer.
  8  8    (4)  The dealer's license has been suspended, revoked,
  8  9 denied, or not renewed.
  8 10    (5)  The dealer has committed a material violation of this
  8 11 chapter which is not cured within thirty days after receipt of
  8 12 written notice of the violation.
  8 13    f.  Notwithstanding paragraphs "d" and "e", the manufacturer
  8 14 and dealer agreement may be terminated, canceled, or nonrenewed
  8 15 for good cause at any time if the reason for the termination,
  8 16 cancellation, or nonrenewal is the dealer's insolvency, the
  8 17 dealer's declaration of an assignment for the benefit of
  8 18 creditors, or the dealer's declaration of bankruptcy.
  8 19    2.  Termination by dealer.  A dealer may terminate, cancel,
  8 20 or fail to renew a manufacturer and dealer agreement with or
  8 21 without good cause as follows:
  8 22    a.  If the dealer terminates, cancels, or fails to renew
  8 23 a manufacturer and dealer agreement without good cause, the
  8 24 dealer shall comply with the provisions of section 322E.4.
  8 25    b.  If the dealer terminates, cancels, or fails to renew a
  8 26 manufacturer and dealer agreement with good cause, the dealer
  8 27 is not required to comply with the provisions of section
  8 28 322E.4.
  8 29    c.  (1)  Except as otherwise provided in this paragraph "c",
  8 30 a dealer shall provide a manufacturer or distributor with at
  8 31 least ninety days' notice of termination, cancellation, or
  8 32 nonrenewal of the manufacturer and dealer agreement if the
  8 33 agreement is being terminated, canceled, or nonrenewed with or
  8 34 without good cause.
  8 35    (2)  (a)  If the termination, cancellation, or nonrenewal
  9  1 of the agreement is for good cause, the dealer has the burden
  9  2 of showing good cause and the notice shall state all of
  9  3 the reasons for the proposed termination, cancellation, or
  9  4 nonrenewal.  The notice shall further state that if, within
  9  5 thirty days following receipt of the notice, the manufacturer
  9  6 or distributor provides to the dealer a written notice of
  9  7 intent to cure all claimed deficiencies, the manufacturer or
  9  8 distributor shall then have ninety days following receipt of
  9  9 the notice to cure the deficiencies.  If the manufacturer or
  9 10 distributor fails to provide notice of intent to cure the
  9 11 deficiencies to the dealer within thirty days following receipt
  9 12 of the notice, the termination, cancellation, or nonrenewal of
  9 13 the agreement for good cause takes effect thirty days following
  9 14 the manufacturer's or distributor's receipt of the notice.
  9 15    (b)  If the deficiencies stated in the notice are cured by
  9 16 the manufacturer or distributor within ninety days following
  9 17 receipt of the notice, the dealer's notice to the manufacturer
  9 18 or distributor is voided.  If the manufacturer or distributor
  9 19 provides notice of intent to cure the deficiencies stated and
  9 20 fails to cure the deficiencies within ninety days following
  9 21 receipt of the notice, the termination, cancellation, or
  9 22 nonrenewal of the agreement for good cause takes effect ninety
  9 23 days following the manufacturer's or distributor's receipt of
  9 24 the notice.
  9 25    d.  Notwithstanding paragraph "c", the notice period for
  9 26 termination, cancellation, or nonrenewal of a manufacturer and
  9 27 dealer agreement by a dealer may be reduced to thirty days if
  9 28 there is good cause for such termination, cancellation, or
  9 29 nonrenewal due to any of the following factors:
  9 30    (1)  The manufacturer or distributor has been convicted of or
  9 31 has entered a plea of nolo contendere to a felony.
  9 32    (2)  The business operations of the manufacturer or
  9 33 distributor have been abandoned or closed for ten consecutive
  9 34 business days, unless the closing is due to an act of God,
  9 35 a strike, a labor difficulty, or other cause over which the
 10  1 manufacturer or distributor has no control.
 10  2    (3)  The manufacturer or distributor has made a significant
 10  3 misrepresentation that materially affects the business
 10  4 relationship of the manufacturer or distributor and the dealer.
 10  5    (4)  The manufacturer or distributor has committed a
 10  6 material violation of this chapter which is not cured within
 10  7 thirty days after receipt of written notice of the violation.
 10  8    (5)  The manufacturer or distributor has declared bankruptcy
 10  9 or insolvency, or an assignment for the benefit of creditors or
 10 10 bankruptcy has occurred.
 10 11    Sec. 4.  NEW SECTION.  322E.4  Repurchase or sale of
 10 12 inventory.
 10 13    1.  If the manufacturer and dealer agreement is terminated,
 10 14 canceled, or not renewed by the manufacturer or distributor
 10 15 without good cause as provided in section 322E.3, subsection
 10 16 1, or if the dealer terminates, cancels, or does not renew
 10 17 the manufacturer and dealer agreement with good cause as
 10 18 provided in section 322E.3, subsection 2, and the manufacturer
 10 19 or distributor fails to provide notice of intent to cure the
 10 20 claimed deficiencies or fails to cure the claimed deficiencies
 10 21 as provided in section 322E.3, subsection 2, the manufacturer
 10 22 or distributor shall, at the dealer's option, and within
 10 23 forty=five days after termination, cancellation, or nonrenewal
 10 24 of the agreement, repurchase all of the following:
 10 25    a.  (1)  All new, untitled recreational vehicles that
 10 26 were acquired from the manufacturer or distributor within
 10 27 twelve months prior to the effective date of the notice of
 10 28 termination, cancellation, or nonrenewal of the agreement, that
 10 29 have not been used except for demonstration purposes, and that
 10 30 have not been altered or damaged, at one hundred percent of the
 10 31 net invoice cost, including transportation, less applicable
 10 32 rebates and discounts to the dealer.
 10 33    (2)  In the event that any of the recreational vehicles
 10 34 repurchased pursuant to this paragraph "a" are damaged, but
 10 35 do not trigger a consumer disclosure requirement, the amount
 11  1 due to the dealer shall be reduced by the cost to repair the
 11  2 vehicle.  Damage incurred prior to delivery to the dealer that
 11  3 was disclosed at the time of delivery does not disqualify
 11  4 repurchase  pursuant to this paragraph "a".
 11  5    b.  All undamaged accessories and proprietary parts sold
 11  6 to the dealer for resale within twelve months prior to the
 11  7 effective date of termination, cancellation, or nonrenewal
 11  8 of the agreement, if accompanied by the original invoice, at
 11  9 one hundred five percent of the original net price paid to the
 11 10 manufacturer or distributor, to compensate the dealer for the
 11 11 cost of handling, packing, and shipping the parts for return to
 11 12 the manufacturer or distributor.
 11 13    c.  All properly functioning diagnostic equipment, special
 11 14 tools, current signage, or other equipment and machinery
 11 15 that was purchased by the dealer upon the request of the
 11 16 manufacturer or distributor within five years prior to the
 11 17 effective date of the termination, cancellation, or nonrenewal
 11 18 of the agreement, and that can no longer be used in the normal
 11 19 course of the dealer's ongoing business.
 11 20    2.  a.  A dealer is not prohibited from selling the remaining
 11 21 inventory of a particular line=make that is in stock after
 11 22 a dealer and manufacturer agreement has been terminated,
 11 23 canceled, or nonrenewed by a manufacturer or distributor
 11 24 without good cause as provided in section 322E.3, subsection 1.
 11 25    b.  If recreational vehicles of a particular line=make
 11 26 are not returned or required to be returned by the dealer to
 11 27 the manufacturer or distributor pursuant to the terminated,
 11 28 canceled, or nonrenewed manufacturer and dealer agreement, the
 11 29 dealer may continue to sell all line=makes that were subject to
 11 30 the agreement and are currently in stock until those line=makes
 11 31 are no longer in the dealer's inventory.
 11 32    Sec. 5.  NEW SECTION.  322E.5  Transfer of ownership ==== family
 11 33 succession ==== objections.
 11 34    1.  a.  If a dealer desires to make a change in ownership
 11 35 of a dealership by sale of the business assets, a stock
 12  1 transfer, or otherwise, the dealer shall give the manufacturer
 12  2 or distributor that is a party to a manufacturer and dealer
 12  3 agreement written notice of the proposed change at least
 12  4 fifteen business days before the change is effective, including
 12  5 all supporting documentation as may be reasonably required by
 12  6 the manufacturer or distributor to determine whether to make an
 12  7 objection to the sale, transfer, or other change in ownership.
 12  8 In the absence of a breach by the dealer of the manufacturer
 12  9 and dealer agreement or a violation of this chapter, the
 12 10 manufacturer or distributor shall not object to the proposed
 12 11 change in ownership unless the objection to the prospective
 12 12 transferee is due to any of the following factors:
 12 13    (1)  The transferee has previously been a party to a
 12 14 manufacturer and dealer agreement with the manufacturer or
 12 15 distributor that was terminated, canceled, or nonrenewed by the
 12 16 manufacturer or distributor for good cause.
 12 17    (2)  The transferee has been convicted of a felony or any
 12 18 crime of fraud, deceit, or moral turpitude.
 12 19    (3)  The transferee lacks any license required by law.
 12 20    (4)  The transferee does not have an active line of credit
 12 21 sufficient to purchase the manufacturer's or distributor's
 12 22 products.
 12 23    (5)  The transferee has undergone bankruptcy, insolvency,
 12 24 a general assignment for the benefit of creditors, or the
 12 25 appointment of a receiver, trustee, or conservator to take
 12 26 possession of the transferee's business or property within the
 12 27 previous ten years.
 12 28    b.  If a manufacturer or distributor objects to a proposed
 12 29 change in ownership of a dealership, the manufacturer or
 12 30 distributor shall give written notice of its reasons for the
 12 31 objection to the dealer within ten business days after receipt
 12 32 of the dealer's notification and supporting documentation of
 12 33 the proposed change.  The manufacturer or distributor has
 12 34 the burden of proof to show that its objection complies with
 12 35 the requirements of this subsection.  If the manufacturer or
 13  1 distributor does not give the dealer timely notice of its
 13  2 objection, the proposed change in ownership of the dealership
 13  3 shall be deemed approved.
 13  4    2.  a.  It is unlawful for a manufacturer or distributor to
 13  5 fail to provide a dealer with the opportunity to designate,
 13  6 in writing, a family member as a successor to ownership of
 13  7 the dealership in the event of the death, incapacity, or
 13  8 retirement of the dealer. If a dealer desires to designate
 13  9 a family member as a successor to a dealership, the dealer
 13 10 shall give the manufacturer or distributor that is a party
 13 11 to the manufacturer and dealer agreement with the dealer
 13 12 written notice of the proposed designation or modification of
 13 13 a previous designation  at least fifteen business days before
 13 14 the designation or proposed modification of a designation is
 13 15 effective, including all supporting documentation as may be
 13 16 reasonably required by the manufacturer or distributor to
 13 17 determine whether to make an objection to the succession plan.
 13 18 In the absence of a breach by the dealer of the manufacturer
 13 19 and dealer agreement or a violation of this chapter, the
 13 20 manufacturer or distributor shall not object to the designated
 13 21 successor unless the objection is due to any of the following
 13 22 factors:
 13 23    (1)  The designated successor has previously been a party to
 13 24 a manufacturer and dealer agreement with the manufacturer or
 13 25 distributor that was terminated, canceled, or nonrenewed by the
 13 26 manufacturer or distributor for good cause.
 13 27    (2)  The designated successor has been convicted of a felony
 13 28 or any crime of fraud, deceit, or moral turpitude.
 13 29    (3)  The designated successor lacks any license required by
 13 30 law at the time of succession.
 13 31    (4)  The designated successor does not have an active
 13 32 line of credit sufficient to purchase the manufacturer's or
 13 33 distributor's products at the time of succession.
 13 34    (5)  The designated successor has undergone bankruptcy,
 13 35 insolvency, a general assignment for the benefit of creditors,
 14  1 or the appointment of a receiver, trustee, or conservator to
 14  2 take possession of the designated successor's business or
 14  3 property within the previous ten years.
 14  4    b.  It is unlawful for a manufacturer or distributor to
 14  5 prevent or refuse to honor the succession of a designated
 14  6 family member to ownership of a dealership when the dealer
 14  7 is deceased, incapacitated, or has retired, unless the
 14  8 manufacturer or distributor has provided to the dealer written
 14  9 notice of the manufacturer's or distributor's objections to
 14 10 the succession within ten days after receipt of the dealer's
 14 11 designation of a successor or modification of the dealer's
 14 12 succession plan. If a manufacturer or distributor objects
 14 13 to the proposed succession of a designated family member of
 14 14 the dealer to the dealership, the manufacturer or distributor
 14 15 shall give written notice of its reasons for the objection
 14 16 to the dealer within ten business days after receipt of the
 14 17 dealer's notification and supporting documentation of the
 14 18 proposed succession or modification of the  succession plan.
 14 19 The manufacturer or distributor has the burden of proof to
 14 20 show that the objection complies with the requirements of
 14 21 this subsection.  If the manufacturer or distributor does not
 14 22 give the dealer timely notice of its objection, the proposed
 14 23 succession plan for ownership of the dealership shall be
 14 24 deemed approved.  However, a family member of the dealer may
 14 25 not succeed to ownership of the dealership if the succession
 14 26 involves, without the manufacturer's or distributor's consent,
 14 27 a relocation of the dealership or alteration of the terms and
 14 28 conditions of the manufacturer and dealer agreement.
 14 29    Sec. 6.  NEW SECTION.  322E.6  Warranty obligations.
 14 30    1.  A warrantor shall do all of the following:
 14 31    a.  Specify in writing to each dealer what obligations
 14 32 the dealer has, if any, for preparation and delivery of, and
 14 33 warranty services on, the warrantor's products.
 14 34    b.  Compensate the dealer for warranty services required of
 14 35 the dealer by the warrantor.
 15  1    c.  Provide the dealer with a schedule of compensation and
 15  2 time allowances for the performance of warranty services.  The
 15  3 schedule of compensation shall include reasonable compensation
 15  4 for diagnostic services performed as well as warranty services.
 15  5    2.  Time allowances for the diagnosis and performance of
 15  6 warranty services shall be reasonable for the service to
 15  7 be performed.  In determining what constitutes reasonable
 15  8 compensation under this section, the principle factors to be
 15  9 given consideration are the actual wage rates being paid by the
 15 10 dealer and the actual retail wage rates being charged by other
 15 11 dealers in the community in which the dealer is doing business.
 15 12 The compensation of a dealer for warranty services shall not be
 15 13 less than the lowest actual retail wage rates charged by the
 15 14 dealer for like nonwarranty services as long as such actual
 15 15 wage rates are reasonable.
 15 16    3.  A warrantor shall reimburse a dealer for any warranty
 15 17 part, accessory, or complete component at actual wholesale cost
 15 18 plus a minimum of a thirty percent handling charge, up to a
 15 19 maximum of one hundred fifty dollars and the cost, if any, of
 15 20 freight to return such part, component, or accessory to the
 15 21 warrantor.
 15 22    4.  Warranty audits of dealer records may be conducted by a
 15 23 warrantor on a reasonable basis, and dealer claims for warranty
 15 24 compensation shall not be denied except for cause, such as
 15 25 performance of nonwarranty repairs, material noncompliance with
 15 26 the warrantor's published policies and procedures, lack of
 15 27 material documentation, fraud, or misrepresentation.
 15 28    5.  A dealer shall submit claims for compensation for the
 15 29 performance of warranty services to the warrantor within
 15 30 forty=five days after completion of the warranty services.
 15 31    6.  A dealer shall immediately notify a warrantor verbally
 15 32 or in writing if the dealer is unable to perform diagnostic
 15 33 services and warranty services within ten days of receipt of a
 15 34 verbal or written complaint from a consumer.
 15 35    7.  A warrantor shall disapprove a claim submitted by
 16  1 a dealer for compensation for the performance of warranty
 16  2 services, in writing, within forty=five days after submission
 16  3 of the claim in the manner and form prescribed by the
 16  4 warrantor.   A claim not specifically disapproved as required
 16  5 by this subsection shall be deemed approved and shall be paid
 16  6 within sixty days of submission of the claim.
 16  7    8.  A warrantor shall not do any of the following:
 16  8    a.  Fail to perform any of the warrantor's obligations with
 16  9 respect to its warranted products.
 16 10    b.  Fail to include, in written notices of a factory campaign
 16 11 to recreational vehicle owners and dealers, the expected date
 16 12 by which necessary parts and equipment, including tires and
 16 13 chassis or chassis parts, will be available to dealers to
 16 14 perform the factory campaign work.  The warrantor may ship
 16 15 parts to a dealer to effect factory campaign work, and, if such
 16 16 parts are in excess of the dealer's requirements, the dealer
 16 17 may return unused parts to the warrantor for credit after
 16 18 completion of the factory campaign.
 16 19    c.  Fail to compensate the warrantor's dealers for authorized
 16 20 repairs effected by the dealer on merchandise damaged in
 16 21 manufacture or in transit to the dealer by a carrier designated
 16 22 by the warrantor, factory branch, distributor, or distributor
 16 23 branch.
 16 24    d.  Fail to compensate the warrantor's dealers in accordance
 16 25 with the schedule of compensation provided to the dealer
 16 26 pursuant to this section if the warranty services for which
 16 27 compensation is claimed are performed in a timely and competent
 16 28 manner as required in this section.
 16 29    e.  Intentionally  misrepresent in any way to consumers that
 16 30 warranties with respect to the manufacture, performance, or
 16 31 design of recreational vehicles are made by the dealer as
 16 32 warrantor or co=warrantor.
 16 33    f.  Require the warrantor's dealers to make warranties to a
 16 34 consumer that are in any manner related to the manufacture of
 16 35 the recreational vehicle.
 17  1    9.  A dealer shall not do any of the following:
 17  2    a.  Fail to perform predelivery inspection functions in a
 17  3 competent and timely manner, as specified by the warrantor.
 17  4    b.  Fail to perform warranty services authorized by the
 17  5 warrantor in a competent and timely manner on any transient
 17  6 consumer's recreational vehicle of a line=make sold or serviced
 17  7 by that dealer.
 17  8    c.  Fail to accurately document the time spent completing
 17  9 each repair, the total number of repair attempts conducted on
 17 10 a single unit, and the number of repair attempts for the same
 17 11 repair conducted on a single recreational vehicle.
 17 12    d.  Fail to notify the warrantor within ten days of a second
 17 13 repair attempt on a recreational vehicle which impairs the use,
 17 14 value, or safety of the vehicle.
 17 15    e.  Fail to maintain written records, including a consumer's
 17 16 signature, regarding the amount of time a unit is stored for
 17 17 the consumer's convenience during a repair.
 17 18    f.  Make fraudulent warranty claims or misrepresent the terms
 17 19 of any warranty.
 17 20    Sec. 7.  NEW SECTION.  322E.7  Indemnification.
 17 21    1.  a.  Notwithstanding the terms of a manufacturer and
 17 22 dealer agreement, a warrantor shall indemnify and hold harmless
 17 23 the warrantor's dealer against any losses or damages to the
 17 24 extent that the losses or damages are caused by the negligence
 17 25 or willful misconduct of the warrantor.
 17 26    b.  A dealer shall not be denied indemnification for failure
 17 27 to discover, disclose, or remedy a defect in the design or
 17 28 manufacturing of a new recreational vehicle.  A dealer may
 17 29 be denied indemnification if the dealer fails to remedy a
 17 30 known and announced defect in accordance with the written
 17 31 instructions of the warrantor for whom the dealer is obligated
 17 32 to perform warranty services.
 17 33    c.  A dealer shall provide to the warrantor a copy of any
 17 34 pending lawsuit in which allegations are made that are covered
 17 35 by the provisions of this subsection within ten days after
 18  1 receiving notice of such lawsuit.
 18  2    d.  Notwithstanding any provision to the contrary, this
 18  3 subsection continues to apply even after a new recreational
 18  4 vehicle is titled.
 18  5    2.  a.  Notwithstanding the terms of a manufacturer and
 18  6 dealer agreement, a dealer shall indemnify and hold harmless
 18  7 the dealer's warrantor against any losses or damages to the
 18  8 extent that the losses or damages are caused by the negligence
 18  9 or willful misconduct of the dealer.
 18 10    b.  A warrantor shall provide to the dealer a copy of any
 18 11 pending lawsuit in which allegations are made that are covered
 18 12 by the provisions of this subsection within ten days after
 18 13 receiving notice of such lawsuit.
 18 14    c.  Notwithstanding any provision to the contrary, this
 18 15 subsection continues to apply even after a new recreational
 18 16 vehicle is titled.
 18 17    Sec. 8.  NEW SECTION.  322E.8  Inspection and rejection by
 18 18 dealer.
 18 19    1.  Whenever a new recreational vehicle is damaged prior
 18 20 to transit or is damaged in transit to the dealer and the
 18 21 carrier or means of transportation has been selected by the
 18 22 manufacturer or distributor, the dealer shall notify the
 18 23 manufacturer or distributor of the damage within the time frame
 18 24 specified in the manufacturer and dealer agreement and shall do
 18 25 either of the following:
 18 26    a.  Request from the manufacturer or distributor
 18 27 authorization to replace the components, parts, or accessories
 18 28 damaged or otherwise repair the vehicle.
 18 29    b.  Reject the vehicle within the time frame set forth in
 18 30 subsection 4.
 18 31    2.  If the manufacturer or distributor refuses to authorize
 18 32 repair of the damage within ten days after receipt of
 18 33 notification, or if the dealer rejects the new recreational
 18 34 vehicle because of damage, ownership of the vehicle shall
 18 35 revert to the manufacturer or distributor.
 19  1    3.  The dealer shall exercise due care when in custody of a
 19  2 damaged new recreational vehicle, but the dealer shall have no
 19  3 other obligations, financial or otherwise, with respect to that
 19  4 vehicle.
 19  5    4.  The time frame for inspection and rejection of a damaged
 19  6 new recreational vehicle by a dealer shall be included in the
 19  7 manufacturer and dealer agreement and shall not be less than
 19  8 two business days after the physical delivery of the vehicle
 19  9 to the dealer.
 19 10    5.  Any new recreational vehicle that has, at the time of
 19 11 delivery to the dealer, an unreasonable amount of miles on the
 19 12 vehicle's odometer, as determined by the dealer, may be subject
 19 13 to rejection by the dealer and ownership of the vehicle shall
 19 14 revert to the manufacturer or distributor.  In no instance
 19 15 shall a dealer deem an amount less than the distance between
 19 16 the dealer and the manufacturer's factory or between the dealer
 19 17 and the distributor's point of distribution, plus one hundred
 19 18 miles, as an unreasonable amount of miles.
 19 19    Sec. 9.  NEW SECTION.  322E.9  Civil actions ==== mediation.
 19 20    1.  A dealer, manufacturer, distributor, or warrantor
 19 21 injured by another party's violation of this chapter may bring
 19 22 a civil action in district court to recover actual damages
 19 23 resulting from such violation.  The court shall award attorney
 19 24 fees and costs to the prevailing party in such an action.
 19 25 Venue for a civil action authorized by this section shall be
 19 26 exclusively in the county in which the dealer's business is
 19 27 located.  In an action involving more than one dealer, venue
 19 28 may be in any county in which any dealer that is a party to the
 19 29 action is located.
 19 30    2.  Prior to bringing suit under this section, the party
 19 31 alleging a violation of this chapter shall serve a written
 19 32 demand for mediation upon the alleged offending party.
 19 33    a.  The demand for mediation shall be served upon the alleged
 19 34 offending party via certified mail at the address stated in the
 19 35 manufacturer and dealer agreement between the parties.
 20  1    b.  The demand for mediation shall contain a brief statement
 20  2 of the dispute or violation alleged and relief sought by the
 20  3 party filing the demand.
 20  4    c.  Within twenty days after service of a demand for
 20  5 mediation, the parties shall mutually select an independent
 20  6 certified mediator and shall meet with that mediator for
 20  7 the purpose of attempting to resolve the dispute or alleged
 20  8 violation.  The meeting place for the mediation shall be
 20  9 in this state at a location selected by the mediator.  The
 20 10 mediator may extend the date for the meeting for good cause
 20 11 shown by either party or upon stipulation of both parties.
 20 12    d.  The service of a demand for mediation under this
 20 13 section shall toll the time for the filing of any complaint,
 20 14 petition, protest, or other action under this chapter until
 20 15 representatives of both parties have met with the mutually
 20 16 selected mediator for the purpose of attempting to resolve
 20 17 the dispute or alleged violation.  If a complaint, petition,
 20 18 protest, or other action has been filed before that meeting,
 20 19 the court shall enter an order suspending any proceeding or
 20 20 action on such complaint, petition, protest, or other action
 20 21 until the mediation meeting has occurred and may, upon written
 20 22 stipulation of all parties to the proceeding or action that
 20 23 they wish to continue mediation under this section, enter an
 20 24 order suspending the proceeding or action for as long a period
 20 25 of time as the court considers appropriate.
 20 26    e.  Each party to the mediation shall bear their own costs
 20 27 for attorney fees and shall divide equally among them the cost
 20 28 of the mediator.
 20 29    3.  In addition to the remedies provided in this section,
 20 30 and notwithstanding the existence of any additional remedy at
 20 31 law, a manufacturer, distributor, warrantor, or dealer may
 20 32 apply to the district court for the grant, upon a hearing and
 20 33 for cause shown, of a temporary or permanent injunction, or
 20 34 both, restraining any person from acting as a dealer without
 20 35 being properly licensed, from violating or continuing to
 21  1 violate any of the provisions of this chapter, or from failing
 21  2 or refusing to comply with the requirements of this chapter.
 21  3 Such injunction shall be issued without bond.  A single act in
 21  4 violation of the provisions of this chapter shall be sufficient
 21  5 cause to authorize the issuance of an injunction pursuant to
 21  6 this subsection.
 21  7                           DIVISION II
 21  8                     COORDINATING AMENDMENTS
 21  9    Sec. 10.  Section 321.1, subsection 36C, paragraphs b and c,
 21 10 Code 2015, are amended to read as follows:
 21 11    b.  "Travel trailer" means a vehicle without motive power
 21 12 used, manufactured, or constructed to permit its use as a
 21 13 conveyance upon the public streets and highways and designed
 21 14 to permit its use as a place of human habitation by one or more
 21 15 persons. The vehicle may be up to eight feet six inches in
 21 16 width and its overall length shall not exceed forty forty=five
 21 17  feet. The vehicle shall be customarily or ordinarily used for
 21 18 vacation or recreational purposes and not used as a place of
 21 19 permanent habitation. If the vehicle is used in this state as
 21 20 a place of human habitation for more than ninety consecutive
 21 21 days in one location it shall be classed as a manufactured or
 21 22 mobile home regardless of the size limitations provided in this
 21 23 paragraph.
 21 24    c.  "Fifth=wheel travel trailer" means a type of travel
 21 25 trailer which is towed by a pickup by a connecting device known
 21 26 as a fifth wheel. However, this type of travel trailer may
 21 27 have an overall length which shall not exceed forty forty=five
 21 28  feet.
 21 29    Sec. 11.  Section 322.2, subsection 13, Code 2015, is amended
 21 30 to read as follows:
 21 31    13.  "Motor vehicle" means any self=propelled vehicle subject
 21 32 to registration under chapter 321, including a motor home as
 21 33 defined in section 322E.1.
 21 34    Sec. 12.  Section 322.3, subsection 1, Code 2015, is amended
 21 35 to read as follows:
 22  1    1.  A person shall not engage in this state in the business
 22  2 of selling at retail new motor vehicles of any make or
 22  3 represent or advertise that the person is engaged or intends
 22  4 to engage in such business in this state unless the person
 22  5 is authorized to do so by a contract in writing with the
 22  6 manufacturer or distributor of such make of new motor vehicles
 22  7 and unless the department has licensed the person as a motor
 22  8 vehicle dealer in this state in motor vehicles of such make
 22  9 and has issued to the person a license in writing as provided
 22 10 in this chapter.  A person shall not engage in this state in
 22 11 the business of selling at retail new motor vehicles that are
 22 12 recreational vehicles as defined in section 322E.1, unless the
 22 13 person is authorized to do so by a manufacturer and dealer
 22 14 agreement as provided in chapter 322E.
 22 15    Sec. 13.  Section 322A.1, subsection 8, Code 2015, is amended
 22 16 to read as follows:
 22 17    8.  "Motor vehicle" means "motor vehicles" as defined in
 22 18 chapter 321 which are subject to registration pursuant to the
 22 19 provisions thereof, except those motor vehicles defined as
 22 20 recreational vehicles in section 322E.1.
 22 21    Sec. 14.  Section 322C.2, subsection 4, Code 2015, is amended
 22 22 by striking the subsection and inserting in lieu thereof the
 22 23 following:
 22 24    4.  "Fifth=wheel trailer" means the same as defined in
 22 25 section 322E.1.
 22 26    Sec. 15.  Section 322C.2, Code 2015, is amended by adding the
 22 27 following new subsections:
 22 28    NEW SUBSECTION.  4A.  "Folding camping trailer" means the
 22 29 same as defined in section 322E.1.
 22 30    NEW SUBSECTION.  6A.  "Park model recreational vehicle" means
 22 31 the same as defined in section 322E.1.
 22 32    Sec. 16.  Section 322C.2, subsection 10, Code 2015, is
 22 33 amended by striking the subsection and inserting in lieu
 22 34 thereof the following:
 22 35    10.  "Travel trailer" means the same as defined in section
 23  1 322E.1.
 23  2    Sec. 17.  Section 322C.3, subsection 1, Code 2015, is amended
 23  3 to read as follows:
 23  4    1.  A person shall not engage in this state in the business
 23  5 of selling at retail new travel trailers of any make, or
 23  6 represent or advertise that the person is engaged or intends
 23  7 to engage in such business in this state, unless the person is
 23  8 authorized by a contract in writing between that person and the
 23  9 manufacturer or distributor of that make of new travel trailers
 23 10 to sell the trailers in this state as provided in chapter 322E,
 23 11 and unless the department has issued to the person a license as
 23 12 a travel trailer dealer for the same make of travel trailer.
 23 13    Sec. 18.  Section 322C.3, subsections 5 and 7, Code 2015, are
 23 14 amended by striking the subsections.
 23 15                          DIVISION III
 23 16                          APPLICABILITY
 23 17    Sec. 19.  APPLICABILITY.  The provisions of this Act apply
 23 18 to manufacturer and dealer agreements that are entered into or
 23 19 renewed on or after July 1, 2016.
 23 20                           EXPLANATION
 23 21 The inclusion of this explanation does not constitute agreement with
 23 22 the explanation's substance by the members of the general assembly.
 23 23    This bill regulates agreements between manufacturers or
 23 24 distributors, and dealers relating to the sale of recreational
 23 25 vehicles and includes coordinating amendments and applicability
 23 26 provisions.
 23 27    DIVISION I.  New Code chapter 322E regulates manufacturer
 23 28 and dealer agreements fixing the rights and responsibilities of
 23 29 each party pertaining to the sale of new recreational vehicles
 23 30 in the state.  A "recreational vehicle" is a vehicle that is
 23 31 either self=propelled or towed by a consumer=owned tow vehicle
 23 32 and is primarily designed to provide temporary living quarters
 23 33 for recreational, camping, or travel use.  A "recreational
 23 34 vehicle" includes a "motor home" which is a motorized vehicle,
 23 35 and a "travel trailer" such as a fifth=wheel trailer, folding
 24  1 camping trailer, truck camper, or a park model recreational
 24  2 vehicle, which is nonmotorized and towable.
 24  3    A manufacturer or distributor, and a dealer are required
 24  4 to enter into a written manufacturer and dealer agreement
 24  5 before selling new recreational vehicles in the state.  The
 24  6 agreement must designate the dealer's exclusive area of sales
 24  7 responsibility.  A manufacturer or distributor, or a dealer
 24  8 may terminate, cancel, or fail to renew the agreement with or
 24  9 without cause and the bill specifies notification requirements,
 24 10 what factors may be considered in determining whether good
 24 11 cause exists, and requirements concerning repurchase or sale of
 24 12 remaining inventory of recreational vehicles and outstanding
 24 13 financial obligations between the parties to the agreement.
 24 14 The party that terminates, cancels, or fails to renew the
 24 15 agreement for good cause has the burden of showing cause.
 24 16    The bill requires that a dealer that desires to make a change
 24 17 in ownership of the dealership give notice to the manufacturer
 24 18 or distributor of the proposed change.  The manufacturer or
 24 19 distributor is not allowed to object to the proposal unless the
 24 20 objection is due to factors specified in the bill concerning
 24 21 the proposed transferee.  The manufacturer must make a written
 24 22 objection and has the burden of proving that the objection
 24 23 complies with the bill's requirements.
 24 24    A manufacturer or distributor is prohibited from failing to
 24 25 provide a dealer with the opportunity to designate a family
 24 26 member as a successor to the dealership in the event of the
 24 27 dealer's death, incapacity, or retirement so long as the
 24 28 dealer gives written notice of the designation before it takes
 24 29 effect.  The manufacturer or distributor cannot object to the
 24 30 designation unless the dealer is in breach of the manufacturer
 24 31 and dealer agreement or in violation of the provisions of new
 24 32 Code chapter 322E or the objection is due to other specified
 24 33 factors.  A manufacturer or distributor is prohibited from
 24 34 refusing to honor the succession of the designated family
 24 35 member unless the manufacturer or distributor has provided the
 25  1 dealer with written notice of an objection to the dealer's
 25  2 designation after receiving notice of the designation.
 25  3    In regards to warranty obligations on new recreational
 25  4 vehicles, the bill requires the warrantor, that person
 25  5 providing a written warranty on the vehicles, to specify the
 25  6 dealer's obligations for preparation, delivery, and warranty
 25  7 services on the warrantor's products and how the dealer will
 25  8 be compensated for provision of those services.  The bill
 25  9 specifies the warrantor's and dealer's obligations to each
 25 10 other concerning warranties.
 25 11    The bill provides that both the warrantor and the dealer have
 25 12 duties to indemnify and hold each other harmless to the extent
 25 13 that losses or damages are caused by the negligence or willful
 25 14 misconduct of the other.  These duties continue even after a
 25 15 new recreational vehicle is titled.
 25 16    The bill specifies the rights and obligations of a dealer and
 25 17 a manufacturer or distributor when a new recreational vehicle
 25 18 is damaged in transit.  The bill specifies a time frame for a
 25 19 dealer to inspect a delivered vehicle and to either reject or
 25 20 request to repair the damaged vehicle.
 25 21    A dealer, manufacturer, distributor, or warrantor injured
 25 22 by another party's violation of the provisions of new Code
 25 23 chapter 322E may bring a civil action in district court to
 25 24 recover actual damages and the prevailing party in the action
 25 25 is entitled to attorney fees and costs.  However, prior to
 25 26 bringing suit, the party alleging the violation is required
 25 27 to serve a demand for mediation upon the alleged offending
 25 28 party.  The parties must mutually select and share the cost of
 25 29 retaining an independent mediator to attempt to resolve the
 25 30 dispute or alleged violation.  Service of the mediation demand
 25 31 tolls the time for filing any other proceeding or action and
 25 32 the district court is required to suspend any proceeding or
 25 33 action until the mediation meeting occurs.  In addition to any
 25 34 other remedy, either party may apply to the district court for
 25 35 a temporary or permanent injunction.
 26  1 DIVISION II.  Division II of the bill includes coordinating
 26  2 amendments.
 26  3    Code chapter 321 (motor vehicles and law of the road) is
 26  4 amended to provide that travel trailers and fifth=wheel travel
 26  5 trailers shall not exceed 45 feet, instead of 40 feet in
 26  6 length.
 26  7    Code chapter 322 (motor vehicle manufacturers, distributors,
 26  8 wholesalers, and dealers) is amended to provide that "motor
 26  9 vehicle" includes a "motor home" as defined in new Code chapter
 26 10 322E.  Code section 322.3(1) is amended to prohibit a person
 26 11 from selling a motor vehicle that also meets the definition
 26 12 of a "recreational vehicle" pursuant to new Code chapter
 26 13 322E, unless the person is authorized to do so pursuant to a
 26 14 manufacturer and dealer agreement that meets the requirements
 26 15 of new Code chapter 322E.
 26 16    Code chapter 322A (motor vehicle franchisors) is amended
 26 17 to provide that Code chapter 322A does not apply to a motor
 26 18 vehicle that is defined as a "recreational vehicle" pursuant to
 26 19 new Code chapter 322E.
 26 20    Code chapter 322C (travel trailer dealers, manufacturers,
 26 21 and distributors) is amended to include definitions of
 26 22 recreational vehicles that are consistent with the definitions
 26 23 in new Code chapter 322E.  Code section 322C.3(1) is amended
 26 24 to provide that the required manufacturer or distributor and
 26 25 dealer agreement must be made in accordance with the provisions
 26 26 of new Code chapter 322E.  Code section 322C.3 is amended to
 26 27 strike two provisions concerning manufacturers or distributors,
 26 28 and dealers of travel trailers that are inconsistent with
 26 29 provisions contained in new Code chapter 322E.
 26 30    DIVISION III.  The provisions of the bill apply to
 26 31 manufacturer and dealer agreements pertaining to the sale of
 26 32 new recreational vehicles that are entered into or renewed on
 26 33 or after July 1, 2016.
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