State legislation in Nebraska that would change the way RV dealerships operate went in front of the Nebraska Senate Committee on Transportation and Telecommunication on Monday.
RVIA Director of State Government Affairs Michael Ochs was there to testify on behalf of the RV industry.
“According to an economic impact study done by John Dunham and Associates, the total annual economic output of the RV industry in Nebraska is $647 million,” Ochs testified. “There are approximately 300 RV-related businesses in the state, paying total taxes of $42 million.”
RVIA said LB1121 would create a framework that better reflects the relationship between RV manufacturers and dealers.
“LB 1121 is based on the RVIA-RVDA Model Manufacturer-Dealer Agreement Bill, which was approved by the two organizations in 2020,” RVIA said. “It would also place one RV dealer and one RV manufacturer on the Nebraska Motor Vehicle Licensing Board.”
RV industry-related jobs pay approx. $180 million in wages and are responsible for nearly 3,500 jobs, according to Ochs. Also testifying in support of the bill were State Senator Beau Ballard, Nick Staab of Rich & Sons RV in Grand Island, Nebraska and Andy Mullins of AC Nelson RV World in Omaha.
“Over the years, the RV industry has worked to establish exemptions from parts of the automobile franchise law because many provisions do not pertain to the RV industry or are handled differently by RV manufacturers and dealers than by the automobile industry,” RVIA said. “As an extension of these efforts, the RVIA has advocated for an RV-specific franchise law to place the manufacturer-dealer relationship for RVs in a separate chapter of law, creating more clarity for RV business and consumers.”
RVIA said an undeniable difference between the RV and automobile industries is the role suppliers and warranties have.
“LB1121 is designed to be fair, reciprocal, and reasonable to all stakeholders – and in the RV industry, that includes not only the dealer and the manufacturer, but also suppliers to manufacturers who provide a written warranty on their products directly to those who purchase and enjoy RVs,” RVIA said. “These suppliers must also treat dealers fairly under LB1121 in warranty matters – a major difference from the automobile industry.”
The legislation was introduced on Jan. 16 of this year and now sits before the Nebraska Legislature Transportation and Telecommunications Committee.
“We urge all members of this committee to vote yes on this important legislation,” Ochs said, “and advance LB1121 to the full senate.”
