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RVIA Opposes Delaware Bill Expanding RV Franchise Law to ATVs, Off-Highway Vehicles

The RV Industry Association (RVIA) testified before a Delaware House committee in opposition to Senate Bill 286, warning that the measure would expand the state’s RV franchise law to products not traditionally covered under such regulations.

Gaby Gilbeau, the association’s director of state affairs, appeared before the Delaware House Economic Development/Banking/Insurance & Commerce Committee to present the organization’s concerns about the legislation, which would amend Delaware’s RV-specific franchise law governing manufacturer-dealer agreements.

According to the association, Senate Bill 286 would broaden the definition of “covered vehicles” by adding products that have not been regulated under RV franchise laws in other states. 

The proposal would include off-highway vehicles, side-by-sides and all-terrain vehicles within the definition of “new recreational vehicle.”

The legislation would also revise provisions governing warranty reimbursement, dealer obligations and other aspects of the manufacturer-dealer relationship. The association said those changes would adversely affect the current framework.

Despite Gilbeau’s testimony, members of the House Economic Development/Banking/Insurance & Commerce Committee voted to advance the measure out of committee.

RVIA said it plans to continue working with committee members and the bill’s sponsors in an effort to amend the legislation or delay further action until the next legislative session. Additional time would allow concerns raised during the hearing to be addressed.

Gilbeau represented the association during the June 16 hearing, outlining objections to the expansion of the RV franchise framework and the proposed revisions affecting manufacturer-dealer agreements.

Senate Bill 286 focuses on Delaware’s RV-specific franchise law and seeks to redefine what constitutes a new recreational vehicle under state regulations. Under the proposal, off-highway vehicles, side-by-sides and ATVs would be brought under the same framework currently applied to recreational vehicles.

The committee’s vote to release the bill keeps the measure moving through the legislative process while discussions between industry representatives and lawmakers continue.

According to a News and Insights report of RVIA on June 23, video of the committee hearing and Gilbeau’s testimony is available online. The discussion of Senate Bill 286 begins at 1:00:55, and Gilbeau’s testimony begins at 1:02:19.

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