SB 764 — An Act amending the act of December 22, 1983 (P.L.306, No.84), known as the Board of Vehicles Act, providing for preliminary provisions, further providing for short title, for definitions, for State Board of Vehicle Manufacturers, Dealers and Salespersons, for powers and duties of board, for license to engage in business, for biennial renewal, for enforcement, for protest hearing decision within 120 days unless waived by the parties, for reimbursement for all parts and service required by the manufacturer or distributor and reimbursement audits, for vehicle recalls, for damage disclosure, for mediation and arbitration, for unlawful acts by manufacturers or distributors, for area of responsibility, for termination of franchises, for industry reorganization, for succession to franchise ownership, for manufacturer right of first refusal, for manufacturer or distributor repurchase of inventory and equipment, for reimbursement of rental costs for dealer facility, for grounds for disciplinary proceedings, for administrative liability of employer, copartnership, association or corporation, for reinstatement, for application for license, for refusal of license, for change of salesperson's license to indicate new employer, for termination of employment or business, for exemption from licensure and registration, for limitations on establishing or relocating dealers, for licensing cost, for penalties, for civil actions for violations, for fees, for disposition of fees and fines, for vehicle shows, off-premise sales and exhibitions, for recreational vehicle shows, recreational vehicle off-premise sales, recreational vehicle exhibitions and recreational vehicle rallies and for off-premise sales, shows, exhibitions or rallies on Sundays; providing for recreational vehicles and for miscellaneous provisions; further providing for savings provision, for repeals, expiration of terms of board members and for existing rules and regulations.

<-- (4) Subpoena witnesses.

<-- Section [8] 306.

Unless waived by the parties, failure to do so will be deemed the equivalent of a determination that the manufacturer or 20170SB0764PN132220170SB0764PN0956 - 2019 - distributor acted with [good]good JUST cause and, in the case of a <-- protest of a proposed establishment or relocation of a dealer under section [27] 326, that [good]good JUST cause does not exist <-- for refusing to permit the proposed additional or relocated new vehicle dealer unless such delay is caused by acts of the manufacturer, distributor or the additional or relocating dealer.

If the board determined that [good]good JUST cause does not exist <-- for refusing to permit the proposed additional or relocated new vehicle dealer and the manufacturer or distributor thereafter enters into a franchise establishing that new vehicle dealer, the manufacturer or distributor shall not be liable for damages based upon such establishment even if a court reverses the determination of the board.

(c) Reconsideration.--In the event a decision of the board is remanded by a court of competent jurisdiction for further 20170SB0764PN1322 - 21 - action by the board, the board shall consider the action and 20170SB0764PN0956 - 20 - issue a final determination, not later than 120 days following receipt of the record from such court, unless the 120-day time period for the board to issue a final determination is waived or extended by the parties.

(4) The protested action shall not become effective until the final determination is issued by the board and shall not be effective thereafter if the board has determined that there is [good]good JUST cause for not permitting the <-- protested action.

(5) The board shall be empowered to direct or require 20170SB0764PN1322 - 22 - the automobile, motorcycle or truck manufacturer or 20170SB0764PN0956 - 21 - distributor to perform such acts as necessary in order for the manufacturer or distributor to comply with the provisions of this [act] chapter.

(E) APPLICABILITY.--THE PROTEST PROVISIONS OF THIS SECTION <-- APPLY TO CHAPTER 5 ACTIVITIES AND ACTIONS BETWEEN RV DEALERS, MANUFACTURERS, DISTRIBUTORS AND SUPPLIERS.

or 20170SB0764PN1322 - 23 - (B) if the board has determined that there is good cause for not permitting the charge-back of such new vehicle dealer.

* * * 20170SB0764PN0956 - 22 - (g) Applicability.--This section shall not apply to manufacturers RECREATIONAL VEHICLE WARRANTORS or dealers of <-- recreational vehicles.

(d) Other statutes and decisions.--Nothing in this section shall be construed to diminish any obligation to provide notice 20170SB0764PN1322 - 24 - to the purchaser of a new vehicle which obligation is imposed by any other provision of law or by any judicial decision, including, but not limited to, the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law.

20170SB0764PN0956 - 23 - Section [11] 309.

The mediator may extend the date of the meeting for [good]good <-- JUST cause shown by either party or upon stipulation of both 20170SB0764PN1322 - 25 - parties.

(3) The service of a demand for mediation under paragraph (1) shall stay the time for the filing of any complaint, petition, protest or action under this [act] chapter until representatives of both parties have met with a 20170SB0764PN0956 - 24 - mutually selected mediator for the purpose of attempting to resolve the dispute.

20170SB0764PN1322 - 26 - (b) Arbitration of disputes between licensees.--After a dispute arises, the licensees may voluntarily agree to submit a dispute arising under this [act] chapter pertaining to a complaint, petition, protest or action to binding or nonbinding arbitration.

Any arbitration proceeding shall be voluntary, 20170SB0764PN0956 - 25 - initiated by serving a written demand for arbitration on the other party, and shall be conducted under the provisions of 42 Pa.C.S.

(d) Recreational vehicles exempted.--This section shall not <-- apply to recreational vehicle manufacturers, distributors or dealers.

(1) Order or accept delivery of any new vehicle, part or 20170SB0764PN1322 - 27 - accessory thereof, equipment or any other commodity not required by law which shall not have been voluntarily ordered by the new vehicle dealer, except that this paragraph is not intended to modify or supersede any terms or provisions of the franchise requiring new vehicle dealers to market a 20170SB0764PN0956 - 26 - representative line of those vehicles which the manufacturer or distributor is publicly advertising.

(5) Change the capital structure of the new vehicle dealer or the means by or through which the new vehicle dealer finances the operation of the dealership, provided 20170SB0764PN1322 - 28 - that the new vehicle dealer at all times meets any reasonable capital standards determined by the manufacturer or distributor in accordance with uniformly applied criteria, and also provided that no change in the capital structure shall cause a change in the principal management or have the 20170SB0764PN0956 - 27 - effect of a sale of the franchise without the consent of the manufacturer or distributor.

(ii) (A) Nothing in this paragraph shall permit the dualing or relocation and addition of a line-make to the dealership facilities without the new vehicle dealer providing written certification to the 20170SB0764PN1322 - 29 - manufacturer or distributor that the new vehicle dealer, with the addition of a line-make by the new vehicle dealer, will maintain a reasonable line of credit for each make or line of new vehicle and the new vehicle dealer will remain in compliance with the 20170SB0764PN0956 - 28 - reasonable terms of the franchise agreement and any reasonable facilities requirements of the manufacturer or distributor, excluding any exclusive facility or nondualing requirements.

The manufacturer or distributor shall execute and deliver a franchise reflecting the relocated address of the dealership 20170SB0764PN1322 - 30 - facilities to the new vehicle dealer within 30 days of the date of the deemed approval.

(iii) A dealer may file a complaint, petition or protest, or bring an action in a court of competent jurisdiction against a manufacturer or distributor, based 20170SB0764PN0956 - 29 - on a denial of a request by a dealer to dual or relocate and dual two or more franchises without first going through mediation required under section [11] 309.

(7) Prospectively assent to a release, assignment, novation, waiver or estoppel which would relieve any person 20170SB0764PN1322 - 31 - from liability to be imposed by this [act] chapter or to require any controversy between a new vehicle dealer and a manufacturer, distributor or representative to be referred to any person other than the duly constituted courts of the Commonwealth or the United States of America, if such 20170SB0764PN0956 - 30 - referral would be binding upon the new vehicle dealer.

(8.2) (i) Purchase a good or service from a vendor selected, identified or designated by a manufacturer, factory branch, distributor, distributor branch or an affiliate of a manufacturer, factory branch, distributor, distributor branch by agreement, program, incentive provision or other method if expanding, constructing or significantly modifying a facility without allowing the dealer the option to obtain a good or service of 20170SB0764PN1322 - 32 - substantially similar quality from a vendor chosen by the dealer and approved by the manufacturer, which approval may not be unreasonably withheld.

20170SB0764PN0956 - 31 - (A) Allow a dealer or vendor to eliminate or impair a manufacturer's intellectual property rights, including a manufacturer's intellectual property rights in a trademark.

(B) By a contract, or an express or implied offer of contract, made to the dealer on the condition that the dealer shall sell, offer to sell 20170SB0764PN1322 - 33 - or sell exclusively an extended service contract, extended maintenance plan or similar product offered, endorsed or sponsored by the manufacturer or distributor.

(C) By measuring the dealer's performance under 20170SB0764PN0956 - 32 - the franchise based on the sale of extended service contracts, extended maintenance plans or similar products offered, endorsed or sponsored by the manufacturer or distributor.

(1) Delay, refuse or fail to deliver new vehicles or new vehicle parts or accessories in a reasonable time and in reasonable quantity relative to the new vehicle dealer's facilities and sales potential after acceptance of an order 20170SB0764PN1322 - 34 - from a new vehicle dealer having a franchise for the retail sale of any new vehicle sold or distributed of an order from a new vehicle dealer having a franchise for the retail sale of any new vehicle sold or distributed by the manufacturer or distributor as are covered by such franchise, if such 20170SB0764PN0956 - 33 - vehicle, parts or accessories are publicly advertised as being available for immediate delivery.

The failure to respond within the time period set forth in this paragraph shall be deemed to be approval of the request, and the 20170SB0764PN1322 - 35 - manufacturer or distributor shall execute and deliver a franchise to the applicant within 30 days of the expiration of this time period.

A manufacturer or distributor shall acknowledge in writing to the applicant the receipt of the forms, and, if the manufacturer or distributor requires 20170SB0764PN0956 - 34 - additional information to complete its review, the manufacturer or distributor shall notify the applicant within 15 days of the receipt of the forms.

Where the manufacturer or distributor rejects a proposed change in executive management control, the manufacturer or distributor shall give written notice of its reasons to the dealer within 60 days of notice to the manufacturer by the dealer of the 20170SB0764PN1322 - 36 - proposed change;

(7) Offer in connection with a sale of a new vehicle or vehicles to the Federal Government, the Commonwealth or any 20170SB0764PN0956 - 35 - political subdivision thereof, any discounts, refunds or any other type of inducement to any new vehicle dealer without making the same offer or offers available to all other of its new vehicle dealers within this Commonwealth.

This paragraph shall not apply to manufacturer or distributor sales of new vehicles to the 20170SB0764PN1322 - 37 - Federal Government, charitable organizations and employees of the manufacturer.

(10) [(i)](i) Modify a franchise during the term of the <-- franchise or upon its renewal if the modification substantially and adversely affects the new vehicle 20170SB0764PN0956 - 36 - dealer's rights, obligations, investment or return on investment without giving 60 days' written notice of the proposed modification to the new vehicle dealer unless the modification is required by law, court order or the board.

Within the 60-day notice period, the new vehicle dealer may file with the board and serve notice upon the manufacturer or distributor a protest requesting a determination of whether there is [good]good JUST cause for <-- permitting the proposed modification.

In determining whether there is [good]good JUST cause for permitting a proposed <-- modification, the board shall consider any relevant factors, including, but not limited to:

[(C)] (iii) Whether the proposed modification will have a substantial and adverse effect upon the 20170SB0764PN1322 - 38 - new vehicle dealer's investment or return on investment.

[(E)] (v) Whether the proposed modification is 20170SB0764PN0956 - 37 - necessary to the orderly and profitable distribution of products by the manufacturer or distributor.

Upon 20170SB0764PN1322 - 39 - the written request of any of its new vehicle dealers, a manufacturer or distributor shall disclose to the new vehicle dealer the method on which new vehicles are allocated among the new vehicle dealers of the same line-make.

The manufacturer distributor has the burden of establishing the 20170SB0764PN0956 - 38 - fairness of its allocation.

(16) Release to any third party any customer information which has been provided by the new vehicle dealer to the manufacturer or distributor if the customer objects in writing to releasing the information, unless the information is necessary for the manufacturer or distributor to meet its 20170SB0764PN1322 - 40 - obligations to customers or new vehicle dealers under requirements imposed by Federal or State law.

(17) Require or coerce or attempt to require or coerce a new vehicle dealer to pay attorney fees of the manufacturer or distributor related to hearings and appeals brought under 20170SB0764PN0956 - 39 - this [act] chapter.

Nothing in this paragraph prohibits a dealer, prospective dealer or owner of an interest in a dealership franchise or facility from voluntarily entering into such an agreement for 20170SB0764PN1322 - 41 - other consideration.

However, a provision contained in an agreement which is not voluntarily entered into by a dealer, prospective dealer or owner of an interest in a dealership franchise or facility on or after the effective date of this paragraph that is inconsistent with the provisions of this 20170SB0764PN0956 - 40 - section shall be a violation of this [act] chapter.

(3) On a showing by a manufacturer or distributor of [good]good JUST cause, the board may extend the time limit set <-- forth in paragraph (2).

An extension under this paragraph may 20170SB0764PN1322 - 42 - not exceed 12 months.

Where an extension under this paragraph is sought, the manufacturer or distributor shall provide notice delivered 30 days before the extension request is filed with the board to all the same line-make dealers within a ten-mile radius of the manufacturer or distributor owned, operated or 20170SB0764PN0956 - 41 - controlled dealer.

An application for an extension is subject to protest by a dealer of the same line-line-make make who is within the ten-mile radius of the manufacturer or distributor owned, operated or controlled dealer.

(5) A manufacturer or distributor shall not unfairly discriminate or compete in terms of any sales, service or operational activities with a new vehicle dealer of the same 20170SB0764PN1322 - 43 - line-make when a manufacturer or distributor operates a new vehicle dealer under this subsection.

(i) A manufacturer or distributor may own, operate or control not more than five new vehicle dealerships 20170SB0764PN0956 - 42 - trading solely in electric vehicles, as defined in 75 Pa.C.S.

(II) If a controlling interest is acquired, the manufacturer, distributor or a subsidiary, affiliate or controlled entity may not continue to operate or control a new vehicle dealership under this subsection for a period not more than 20170SB0764PN1322 - 44 - 12 months from the date it acquired the controlling interest.

(I) A controlling interest in the original manufacturer, distributor or any subsidiary, 20170SB0764PN0956 - 43 - affiliate or controlled entity was not transferred, sold or conveyed to another manufacturer, distributor, person or entity required to be licensed under this [act] chapter.

(7) Nothing under this subsection shall prohibit the sale or lease of used vehicles obtained as a result of a trade or return of a vehicle during the purchase of a new vehicle under paragraph (6) at a manufacturer's licensed 20170SB0764PN1322 - 45 - location.

20170SB0764PN0956 - 44 - (1.1) This section shall not apply to manufacturers, distributors or dealers of recreational vehicles.

(1) Advance notice from the manufacturer of an alteration of a dealer's area of responsibility shall be given at least 60 days before the effective date of the 20170SB0764PN1322 - 46 - alteration.

(2) At any time before the effective date of such alteration of a dealer's area of responsibility, and after the completion of any internal appeal process pursuant to the 20170SB0764PN0956 - 45 - manufacturer's or distributor's policy manual, the dealer may file a protest as provided for under section [8] 306.

or being a manufacturer, to unfairly, without due regard to the equities of a distributor and without just cause, terminate or fail to renew 20170SB0764PN1322 - 47 - the franchise of any distributor.

The manufacturer or distributor shall not meet its burden of proof to terminate or fail to renew the franchise if the acts of the manufacturer or distributor, in whole or in significant part, caused the dealer or distributor to be unable to comply substantially with the 20170SB0764PN0956 - 46 - reasonable and material requirements of the franchise.

(iii) conviction of the dealer, or any owner 20170SB0764PN1322 - 48 - thereof, of any felony which is punishable by imprisonment;

or 20170SB0764PN0956 - 47 - (v) based on a determination that there was a fraudulent misrepresentation by the dealer to the manufacturer or distributor which is material to the franchise.

(a) Violation.-- 20170SB0764PN1322 - 49 - (1) It shall be a violation of this [act] chapter for a manufacturer or distributor directly or indirectly or through any officer, agent or employee to terminate or fail to renew a franchise of a new vehicle dealer in connection with:

(i) any change in ownership or control of all or any 20170SB0764PN0956 - 48 - part of the manufacturer's or distributor's business whether by sale or transfer of assets, corporate stock or other equity interest;

or (ii) the manufacturer or distributor, within 90 days of the effective date of the termination or failure to renew, compensates the dealer in an amount at least equivalent to the higher of the fair market value of the franchise or portion of the franchise terminated or failed to be renewed on the date the manufacturer or distributor announces the act that results in the termination or nonrenewal of the franchise or the date on which the notice of termination or nonrenewal of the 20170SB0764PN1322 - 50 - franchise is issued.

(i) authorizes the dealer to continue servicing and supplying parts, including warranty service and parts, for any goods or services marketed by the dealer pursuant 20170SB0764PN0956 - 49 - to the franchise for a period of not less than five years from the effective date of the termination or failure to renew and continues to reimburse the dealer for warranty parts and service at the same prices and terms as franchised dealers for the manufacturer or distributor;

(b) Acts affecting franchise.--For purposes of subsection (a), the termination or discontinuation of a series, line, brand or class of new vehicle marketed by a manufacturer or distributor as a distinct series, line, brand or class shall be deemed to be the termination or nonrenewal of a franchise even if said series, line, brand or class of new vehicle is part of a franchise including other series, lines, brands or classes of new vehicle, provided that nothing in this subsection shall be construed as prohibiting a manufacturer or distributor from 20170SB0764PN1322 - 51 - changing, adding or deleting models, specifications, model names, numbers or identifying marks or similar characteristics of the new vehicles it markets, provided that such change, addition or deletion does not result in the termination or discontinuance of a distinct series, line, brand or class of new 20170SB0764PN0956 - 50 - vehicle.

(b) Consent to succession on part of manufacturer or distributor.--Notwithstanding the terms of any franchise, unless there exists [good]good JUST cause to withhold consent to succession <-- on the part of the manufacturer or distributor, any designated family member or qualified manager of the franchise location in question of a retiring, deceased or incapacitated owner of a new vehicle dealership may succeed to the ownership interest of such owner under the existing franchise, provided:

20170SB0764PN1322 - 52 - (1) The designated family member or qualified manager furnishes written notice to the manufacturer or distributor of his or her intention to succeed to the ownership of the new vehicle dealership within 60 days after the owner's retirement, death or incapacity.

20170SB0764PN0956 - 51 - (2) The designated family member or qualified manager agrees to be bound by all then existing terms and conditions of the franchise.

(d) Withholding consent to succession.--If a manufacturer or distributor believes that [good]good JUST cause exists to withhold <-- consent to the succession to the ownership of a new vehicle dealership by a designated family member or qualified manager of a retiring, deceased or incapacitated owner of a new vehicle dealership under the existing franchise, the manufacturer or distributor must serve written notice on the designated family member or qualified manager and on the board of its refusal to honor the succession and intent to discontinue the existing franchise with the new vehicle dealer.

20170SB0764PN1322 - 53 - (e) Notice requirements.--The notice in subsection (d) shall state the specific grounds to withhold consent to honor the succession and the manufacturer's or distributor's intent to discontinue the franchise with the new vehicle dealer no sooner than 60 days after the date the notice is served.

The reasons 20170SB0764PN0956 - 52 - given for the disapproval or any explanation of those reasons by the manufacturer or distributor shall not subject the manufacturer or distributor to any civil liabilities unless the reasons given or explanations made are malicious and published with the sole intent to cause harm to the dealer or successor.

When a protest is filed, the board shall promptly notify the manufacturer or distributor that a timely protest has been filed and that such manufacturer or distributor shall not terminate or discontinue the existing franchise until the board has held a hearing and issued a written decision within 120 days of the filing of the protest nor thereafter, unless the board determines that there is [good]good JUST cause for not permitting <-- the succession.

(g) Conflicts.--This [act] chapter shall not preclude the owner of a new vehicle dealership from designating any person as 20170SB0764PN1322 - 54 - his or her successor by written instrument filed with the manufacturer or distributor.

In the event of any conflict between such a written instrument which has not been revoked by written notice from the owner to the manufacturer or distributor, and this section, the written instrument shall 20170SB0764PN0956 - 53 - govern.

In that regard, the 20170SB0764PN1322 - 55 - following shall apply:

(i) The manufacturer or distributor shall have the right to and shall assume the dealer's lease for, or acquire the real property on which the franchise is conducted, on the same terms as those on which the real 20170SB0764PN0956 - 54 - property or lease was to be sold or transferred to the proposed new owner in connection with the sale of the franchise, unless otherwise agreed to by the dealer and manufacturer or distributor.

(3) The proposed change of all or substantially all ownership or transfer of all or substantially all dealership assets does not involve the transfer of assets or the transfer or issuance of stock by the dealer or one or more dealer owners to a designated family member or members, the spouse, child or grandchild, spouse of a child or grandchild, brother, sister or parent of the dealer owner, of one or more 20170SB0764PN1322 - 56 - dealer owners or to a qualified manager or to a partnership or corporation controlled by such persons.

(4) The manufacturer or distributor agrees to pay the reasonable expenses, including reasonable attorney fees which do not exceed the usual, customary and reasonable fees 20170SB0764PN0956 - 55 - charged for similar work done for other clients, incurred by the proposed new owner and transferee prior to the manufacturer's or distributor's exercise of its right of first refusal in negotiating and implementing the contract for the proposed change of all or substantially all ownership or transfer of all or substantially all dealership assets.

(a) Return of property for repurchase.--A new vehicle dealer shall return property, including, but not limited to, vehicle inventory, parts, equipment, tools and signs, as permitted under this section or as set forth in the franchise agreement, to the manufacturer or distributor within 90 days of the effective date of any termination or nonrenewal of a franchise or upon a termination or cessation of a part of a manufacturer's or distributor's business operations throughout the United States which is not part of any change in ownership, operation or 20170SB0764PN1322 - 57 - control of all or any part of the manufacturer's or distributor's business under section [14] 313.

Within 20170SB0764PN0956 - 56 - 60 days of tender of the property to the manufacturer or distributor, the manufacturer or distributor, including medium and heavy-duty truck component and engine manufacturers or distributors who provide integral parts of vehicles or provide major components by selling directly to dealers, shall repurchase from the new vehicle dealer and remit payment to the new vehicle dealer in accordance with their respective interest in:

(2) All new, unused, undamaged parts listed in the current price catalog acquired from a manufacturer or distributor or a source approved or recommended by the 20170SB0764PN1322 - 58 - manufacturer or distributor at the dealer price listed in the current parts catalog, less applicable allowances, plus 5% of the catalog price of the part for the cost of packing and returning the parts to the manufacturer or distributor.

Reconditioned or core parts shall be valued at their core 20170SB0764PN0956 - 57 - value, the price listed in the current parts catalog or the amount paid for expedited return of core parts, whichever is higher.

(c) Limited applicability.--This section shall not apply to manufacturers, distributors or dealers of recreational vehicles or manufactured housing, nor shall it apply to motorcycle 20170SB0764PN1322 - 59 - manufacturers, distributors or dealers except when the unilateral termination or failure to renew is by the manufacturer or distributor.

20170SB0764PN0956 - 58 - (a) Reimbursement of rental costs.--In the event of a termination or nonrenewal under this [act] chapter, except for termination or nonrenewal under section [14] 313, the manufacturer or distributor shall, at the request and option of the new vehicle dealer, also pay to the new vehicle dealer:

20170SB0764PN1322 - 60 - Section [19] 318.

In addition to any criminal or civil penalties otherwise provided in this act, the board shall have the power to formally reprimand, suspend or revoke any license or refuse to issue or renew any license of an applicant or licensee or a person 20170SB0764PN0956 - 59 - required to be licensed under this act, if after due notice of and hearing, the person charged is found in violation of or fails to carry out the acts and procedures set forth in this act or is found guilty of committing or attempting to commit any of the acts set forth in section [23] 322 or any of the following acts:

(5) Having failed or refused to account for moneys or 20170SB0764PN1322 - 61 - other valuables belonging to others which have come into his possession arising out of the sale of vehicles.

(7) Having committed any act or engaged in conduct in 20170SB0764PN0956 - 60 - connection with the sale of vehicles which clearly demonstrates unprofessional conduct or incompetency to operate as a licensee under this act.

20170SB0764PN1322 - 62 - (11) Being a dealer or broker who advertises or otherwise holds out to the public that he is selling new vehicles for which he does not hold a franchise agreement in writing with a manufacturer or distributor giving the dealer authority to sell the particular line-make of new vehicles.

20170SB0764PN0956 - 61 - (12) Being a dealer or broker who sells new vehicles for which he does not hold a franchise agreement in writing with a manufacturer or distributor giving the dealer authority to sell the particular line-make of new vehicles.

20170SB0764PN1322 - 63 - (17) Being a new car dealer whose franchise agreement with a manufacturer or distributor, which gives the subject dealer selling rights for that line-make, has been finally terminated, but who continues to sell new vehicles.

A recreational vehicle or manufactured housing dealer, whose 20170SB0764PN0956 - 62 - franchise was terminated or failed to be renewed by either the manufacturer or the dealer, who owned new vehicles prior to the termination or nonrenewal and sold them subsequent to the termination or nonrenewal is exempt from prosecution under this paragraph.

20170SB0764PN1322 - 64 - (25) Failing to pay over taxes or fees collected for the Commonwealth at the time and in the manner required by law.

(27) Being an unlicensed salesperson, dealer, vehicle auction, branch lot, manufacturer or any other person or 20170SB0764PN0956 - 63 - business where a license is required under this act.

(31) Being a public or retail vehicle auction who 20170SB0764PN1322 - 65 - knowingly and willfully permits any buyer or seller to buy or sell vehicles which results in engaging in the business as dealer without a license or permitting any other person to engage in any activity which would require licensure under this act.

20170SB0764PN0956 - 64 - (32) Being a dealer which willfully permits an individual or salesperson to buy, sell or exchange a vehicle for his own benefit or profit under the dealer's license.

(38) Being a person whose license under this act or 20170SB0764PN1322 - 66 - authority to engage as a dealer or salesperson in any other state or jurisdiction was suspended or revoked and, while the license or authority was suspended or revoked, was physically present at a wholesale vehicle auction or public or retail vehicle auction during the auctioning of vehicles.

A vehicle 20170SB0764PN0956 - 65 - auction shall not be subject to prosecution for a violation of a person being physically present under this paragraph.

In the event of the revocation of the license issued to any member of a partnership or to any officer of an association or corporation, the license issued to a partnership, association or corporation shall be revoked by the board unless, within a time fixed by the board, in the case of a partnership, the connection 20170SB0764PN1322 - 67 - of the member whose license has been revoked shall be severed and his interest in the partnership and his share in its activities brought to an end, or in the case of an association or corporation, the offending officer shall be discharged and shall have no further participation in its activities.

20170SB0764PN0956 - 66 - Section [21] 320.

20170SB0764PN1322 - 68 - (6) A statement of the previous history, record and association of the applicant and of each owner, partner, officer and director, which statement shall be sufficient to establish to the satisfaction of the board the reputation in business of the applicant.

20170SB0764PN0956 - 67 - (7) A statement showing whether the applicant has previously applied for a license and the result of such application and whether the applicant has ever been the holder of either a dealer, vehicle auction or salesperson license which was revoked or suspended.

If the applicant is to be licensed for a dealer who is licensed in more than one category or at more than one location and the applicant desires to sell for each of the dealer's licensed 20170SB0764PN1322 - 69 - entities, the name and address of the primary location and of each other entity shall be supplied.

(5) The recommendation of his employer or prospective employer certifying that the applicant is honest, trustworthy and of good repute and recommending that a license be 20170SB0764PN0956 - 68 - granted.

(d) Manufacturer's or distributor's license.--Application 20170SB0764PN1322 - 70 - for license as a manufacturer or distributor shall be made in writing to the board, signed by the applicant, setting forth or attaching the following:

(1) Name of applicant and location of principal place of business for the license which is the subject of the 20170SB0764PN0956 - 69 - application and the location of any other place of business within this Commonwealth.

20170SB0764PN1322 - 71 - (1) That the applicant was previously the holder of a license issued under this act, which license was revoked for cause or which license was suspended for cause and the terms of the suspension have not been fulfilled.

(2) That the applicant was previously a limited or 20170SB0764PN0956 - 70 - general partner, stockholder, director or officer of a partnership or corporation whose license issued under the authority of this act was revoked for cause and never reissued or was suspended for cause and the terms of suspension have not been fulfilled.

(4) That the applicant is a vehicle dealer, vehicle auction or salesperson who, having within five years prior to the application for or issuance of a license or while a current license is in force, pleaded guilty, entered a plea of nolo contendere or has been found guilty in a court of 20170SB0764PN1322 - 72 - competent jurisdiction in Federal or in this or any other state jurisdiction of forgery, embezzlement, obtaining money under false pretenses, extortion, conspiracy to defraud, bribery, odometer tampering or any other crime involving moral turpitude.

20170SB0764PN0956 - 71 - Section [24] 323.

(a) Salesperson's license to be surrendered after termination of employment.--Within ten days after termination of employment, the dealer shall surrender that salesperson's 20170SB0764PN1322 - 73 - license to the board.

(b) Dealer's, branch lot or vehicle auction license to be surrendered after termination of business.--Within ten days 20170SB0764PN0956 - 72 - after termination of business activities, the dealer, branch lot or vehicle auction shall surrender to the board all of its licenses and its salespersons' licenses issued by the board.

(4) The sale, exchange or purchase of fewer than five 20170SB0764PN1322 - 74 - manufactured housing or mobile homes by a person in one calendar year.

(a) Additional or relocation of new vehicle dealers.-- 20170SB0764PN0956 - 73 - (1) In the event that a manufacturer seeks to enter into a franchise establishing an additional new vehicle dealer or relocating an existing new vehicle dealer within or into a relevant market area where the same line-make is then represented, the manufacturer shall in writing first notify the board and each new vehicle dealer in such line-make in the relevant market area of the intention to establish an additional dealer or to relocate an existing dealer within or into that market area.

When such a protest is filed, the board shall inform the manufacturer that a timely protest has been filed, and that the manufacturer shall not establish the proposed new vehicle dealer or relocate the new vehicle dealer until the board has held a hearing, nor thereafter, if the board has determined that there is [good]good JUST cause for not permitting the <-- addition or relocation of such new vehicle dealer.

(ii) An explanation of the appeal procedure provided by the manufacturer or distributor, if any, to the 20170SB0764PN1322 - 75 - establishment of the proposed additional new vehicle dealer or relocation of the new vehicle dealer.

(iii) An explanation of the existing new vehicle dealer's rights to file a protest with the board to the establishment of the proposed new vehicle dealer or the 20170SB0764PN0956 - 74 - relocation of the new vehicle dealer.

(4) (i) Where an automobile, motorcycle or truck manufacturer or distributor seeks to enter into an agreement or franchise establishing an additional vehicle warranty service facility or seeks to relocate an existing vehicle warranty service facility within or into a radius of five miles surrounding where an existing new vehicle dealer vehicle warranty service facility of the same line-make is then represented, except in cases involving a franchised new medium or heavy-duty truck dealer, in which case the affected radius shall be the relevant market area or the area of responsibility as defined in the dealer's franchise, whichever is greater, the automobile, motorcycle or truck manufacturer shall in 20170SB0764PN1322 - 76 - writing first notify the board and each affected new vehicle dealer vehicle warranty service facility of such line-make of the intention to establish an additional vehicle warranty service facility or to relocate an existing vehicle warranty service facility within or into 20170SB0764PN0956 - 75 - the affected market areas.

(iv) When such a protest is filed, the board shall inform the automobile, motorcycle or truck manufacturer 20170SB0764PN1322 - 77 - that a timely protest has been filed and that the automobile, motorcycle or truck manufacturer shall not establish the proposed vehicle warranty service facility or relocate the vehicle warranty service facility until the board has held a hearing nor thereafter if the board 20170SB0764PN0956 - 76 - has determined that there is [good]good JUST cause for not <-- permitting the addition or relocation of such vehicle warranty service facility.

(v) In determining whether [good]good JUST cause exists <-- to allow for the establishment or relocation of a vehicle warranty service facility, the board shall consider the same type of circumstances as established in subsection (c).

(4) To manufactured housing or recreational vehicle 20170SB0764PN1322 - 78 - dealers.

(c) Board to consider existing circumstances.--In determining whether [good]good JUST cause has been established for <-- not entering into or relocating an additional new vehicle dealer for the same line-make, the board shall take into consideration the 20170SB0764PN0956 - 77 - existing circumstances, including, but not limited to:

§ 7501 20170SB0764PN1322 - 79 - (relating to authorization of messenger and agent services) may charge the purchaser of a vehicle a licensing cost permissible under 75 Pa.C.S.

19 (relating to fees) and the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, and regulations 20170SB0764PN0956 - 78 - promulgated thereunder, to include any of the following:

(2) A dealer which does not provide electronic transaction services for document preparation under subsection (a)(2) may impose a maximum charge of $80 for calendar year 2008 and a maximum charge of $100 for calendar 20170SB0764PN1322 - 80 - year 2009.

(d) Adjustment.--Beginning in January 2010, and annually thereafter, the licensing cost for documentary preparation shall be adjusted in accordance with the Federal Consumer Price Index for All Urban Consumers (CPI-U) for all items as published by 20170SB0764PN0956 - 79 - the United States Department of Labor, Bureau of Labor Statistics, for the previous 12-month period on a cumulative basis.

(b) Criminal penalties for unlicensed activity.--Whoever engages in the business of vehicle dealer, manufacturer, factory branch, distributor, distributor branch, auction or broker or engages in the occupation of vehicle salesperson or factory or distributor representative without being licensed and registered as required or exempted from licensure as provided, or shall present or attempt to use as his own the license of another, 20170SB0764PN1322 - 81 - shall be guilty of a summary offense and, upon conviction, shall be sentenced to pay a fine of $1,000 or any higher amount equal to double the pecuniary gain derived from the offense.

20170SB0764PN0956 - 80 - (c) Additional remedy.--In addition to any other civil remedy or criminal penalty provided for in this act, the board by a vote of the majority of the authorized membership of the board as provided by law, or by a vote of the majority of the duly qualified and confirmed membership, may levy a civil penalty of up to $1,000 on any current licensee who violates any provision of this act or on any person who engages in an activity required to be licensed by this act.

(a) General rule.--All fees required under the provisions of 20170SB0764PN1322 - 82 - this act shall be fixed by the board by regulation and shall be subject to review in accordance with the act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act.

If the revenues generated by fees, fines and civil penalties imposed in accordance with the provisions of this act are not sufficient to 20170SB0764PN0956 - 81 - match expenditures over a two-year period, the board shall increase those fees by regulation, subject to review in accordance with the Regulatory Review Act, such that the projected revenues will meet or exceed projected expenditures.

(a) Participation.--Any licensed dealer, distributor or manufacturer may participate in public vehicle shows, off- 20170SB0764PN1322 - 83 - premise sales and exhibitions, provided that a dealer shall participate only in shows, off-premise sales and exhibitions held within the dealer's relevant market area.

20170SB0764PN0956 - 82 - (b) Application of section.--The provisions of this section relating to "relevant market area" shall not apply to vehicle shows held as part of, and in conjunction with, the following:

(e) Emergency vehicles.--Licensed manufacturers of firefighting or emergency service vehicles shall be authorized to buy, sell or exchange such vehicles to governmental agencies or emergency service providers at vehicle shows, off-premise 20170SB0764PN1322 - 84 - sales and exhibitions without possessing a dealer's license.

SECTION [32.1] 332.1.

RECREATIONAL VEHICLE SHOWS, RECREATIONAL <-- VEHICLE OFF-PREMISE SALES, RECREATIONAL VEHICLE EXHIBITIONS AND RECREATIONAL VEHICLE RALLIES.

(A) PARTICIPATION.--A RECREATIONAL VEHICLE DEALER, SALESPERSON, DISTRIBUTOR, MANUFACTURER OR MANUFACTURER'S REPRESENTATIVE LICENSED UNDER THIS ACT MAY PARTICIPATE IN A RECREATIONAL VEHICLE SHOW, RECREATIONAL VEHICLE OFF-PREMISE SALE, RECREATIONAL VEHICLE EXHIBITION OR RECREATIONAL VEHICLE RALLY.

A RECREATIONAL VEHICLE DEALER SHALL BE PERMITTED TO CONDUCT A RECREATIONAL VEHICLE SHOW, RECREATIONAL VEHICLE EXHIBITION OR RECREATIONAL VEHICLE RALLY AT ITS ESTABLISHED PLACE OF BUSINESS.

(B) BOND REQUIRED.--ANY PERSON ACTING AS A RECREATIONAL VEHICLE DEALER IN THIS COMMONWEALTH SHALL HAVE POSTED A BOND PAYABLE TO THE COMMONWEALTH IN THE AMOUNT OF $30,000 TO ENSURE COMPLIANCE WITH ALL COMMONWEALTH LAWS AND REGULATIONS.

THE BOND SHALL BE EXECUTED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS COMMONWEALTH.

THE BOND SHALL BE SECURITY FOR ANY CLAIM FILED BY AN AGENCY OF THE COMMONWEALTH, FOR MONEYS DUE, INCLUDING UNPAID TAXES, FEES, LICENSES, PAYMENT OF A CRIMINAL PENALTY OR FINE AFTER CONVICTION OR PAYMENT OF A CIVIL PENALTY OR MONETARY AMOUNT AFTER THE ENTRY OF JUDGMENT.

THE BOND SHALL REMAIN VALID UNTIL CANCELED IN WRITING BY THE ISSUER.

THIS PROVISION SHALL NOT LIMIT THE AUTHORITY OF ANY GOVERNMENT AGENCY OR PRIVATE INDIVIDUAL TO INSTITUTE CIVIL, CRIMINAL OR DISCIPLINARY ACTION AGAINST A PERSON FOR A VIOLATION OF A COMMONWEALTH LAW OR REGULATION.

A RECREATIONAL VEHICLE DEALER 20170SB0764PN1322 - 85 - WHO HAS A CURRENT BOND IN THE AMOUNT OF AT LEAST $30,000 ON FILE WITH THE DEPARTMENT OF TRANSPORTATION SHALL NOT BE REQUIRED TO POST A BOND UNDER THIS SUBSECTION.

(C) OUT-OF-STATE RECREATIONAL VEHICLE DEALERS.--AN OUT-OF- STATE RECREATIONAL VEHICLE DEALER LICENSED IN ANOTHER STATE OR JURISDICTION OR DOMICILED IN ANOTHER STATE OR JURISDICTION THAT DOES NOT REQUIRE LICENSURE SHALL REGISTER WITH THE BOARD ON A FORM PRESCRIBED BY THE BOARD BEFORE PARTICIPATING IN THIS COMMONWEALTH IN A RECREATIONAL VEHICLE SHOW, RECREATIONAL VEHICLE OFF-PREMISE SALE, RECREATIONAL VEHICLE EXHIBITION OR RECREATIONAL VEHICLE RALLY.

THE FOLLOWING APPLY:

(1) REGISTRATION SHALL INCLUDE ALL OF THE FOLLOWING:

(I) NOTIFICATION OF THE OUT-OF-STATE RECREATIONAL VEHICLE DEALER'S INTENT TO PARTICIPATE IN THIS COMMONWEALTH IN A RECREATIONAL VEHICLE SHOW, RECREATIONAL VEHICLE OFF-PREMISE SALE, RECREATIONAL VEHICLE EXHIBITION OR RECREATIONAL VEHICLE RALLY.

(II) AGREEMENT TO COMPLY WITH ALL FEDERAL AND STATE LAWS AND REGULATIONS RELATING TO THE BUYING, SELLING, EXCHANGING, TITLING, REGISTRATION OR FINANCING OF RECREATIONAL VEHICLES.

(III) AGREEMENT BY THE OUT-OF-STATE RECREATIONAL VEHICLE DEALER TO SUBMIT TO THE JURISDICTION OF THE COMMONWEALTH FOR PURPOSES OF DISCIPLINARY ACTION OF IMPOSITION OF A CIVIL OR CRIMINAL PENALTY OR ASSESSMENT UNDER SUBSECTION (B) RESULTING FROM A VIOLATION UNDER SUBPARAGRAPH (II).

(IV) EVIDENCE OF THE POSTING OF A BOND UNDER SUBSECTION (B).

(V) PAYMENT OF A PARTICIPATION FEE.

20170SB0764PN1322 - 86 - (VI) A LIST OF ALL INDIVIDUALS ENGAGED AS SALES PEOPLE FOR THE OUT-OF-STATE RECREATIONAL VEHICLE DEALER WHILE OPERATING IN THIS COMMONWEALTH.

(2) IF THE BOARD HAS TAKEN ACTION WITHIN THE LAST FIVE YEARS TO SANCTION AN OUT-OF-STATE RECREATIONAL VEHICLE DEALER, THE BOARD MAY:

(I) REFUSE TO ACCEPT THE REGISTRATION AND PARTICIPATION FEE OF THE OUT-OF-STATE RECREATIONAL VEHICLE DEALER PERMANENTLY OR FOR A FIXED PERIOD;

AND (II) ORDER THAT THE OUT-OF-STATE RECREATIONAL VEHICLE DEALER BE DENIED ACCESS TO ALL RECREATIONAL VEHICLE SHOWS, RECREATIONAL VEHICLE OFF-PREMISE SALES, RECREATIONAL VEHICLE EXHIBITIONS AND RECREATIONAL VEHICLE RALLIES IN THIS COMMONWEALTH.

(3) AN OUT-OF-STATE RECREATIONAL VEHICLE DEALER LICENSED IN ANOTHER STATE OR JURISDICTION OR DOMICILED IN A STATE OR JURISDICTION THAT DOES NOT REQUIRE LICENSURE MAY PARTICIPATE IN THIS COMMONWEALTH IN A RECREATIONAL VEHICLE SHOW, RECREATIONAL VEHICLE OFF-PREMISE SALE, RECREATIONAL VEHICLE EXHIBITION OR RECREATIONAL VEHICLE RALLY UNDER THE CIRCUMSTANCES SET FORTH EITHER IN SUBPARAGRAPH (I) OR (II):

(I) WHEN THE SHOW, SALE, EXHIBITION OR RALLY HAS LESS THAN A TOTAL OF 50 RECREATIONAL VEHICLE DEALERS PARTICIPATING WITH PERMISSION OF THE DEALER'S LICENSED MANUFACTURER AND MEETS ALL OF THE FOLLOWING REQUIREMENTS:

(A) A MINIMUM OF TEN RECREATIONAL VEHICLE DEALERS AT THE SHOW ARE LICENSED IN THIS COMMONWEALTH.

(B) MORE THAN 50% OF THE PARTICIPATING RECREATIONAL VEHICLE DEALERS ARE LICENSED IN THIS 20170SB0764PN1322 - 87 - COMMONWEALTH.

(C) THE STATE IN WHICH THE OUT-OF-STATE RECREATIONAL VEHICLE DEALER IS LICENSED IS CONTIGUOUS TO THIS COMMONWEALTH AND PERMITS RECREATIONAL VEHICLE DEALERS LICENSED IN THIS COMMONWEALTH TO PARTICIPATE IN RECREATIONAL VEHICLE SHOWS IN THAT STATE UNDER CONDITIONS SUBSTANTIALLY EQUIVALENT TO THE CONDITIONS IMPOSED UPON DEALERS FROM THAT STATE TO PARTICIPATE IN RECREATIONAL VEHICLE SHOWS IN THIS COMMONWEALTH.

(II) WHEN THE RECREATIONAL VEHICLE SHOW, SALE, EXHIBITION OR RALLY OPENS TO THE PUBLIC, IT HAS A TOTAL OF AT LEAST 50 RECREATIONAL VEHICLE DEALERS FROM THIS COMMONWEALTH AND FROM ANOTHER STATE PARTICIPATING WITH PERMISSION OF THE DEALER'S LICENSED MANUFACTURER AND MEETS ALL OF THE FOLLOWING REQUIREMENTS:

(A) THE SHOW, SALE, EXHIBITION OR RALLY IS TRADE ORIENTED AND PREDOMINANTLY FUNDED BY RECREATIONAL VEHICLE MANUFACTURERS.

(B) ALL OF THE PARTICIPATING DEALERS WHO ARE NOT LICENSED IN THIS COMMONWEALTH ARE FROM A STATE CONTIGUOUS TO THIS COMMONWEALTH WHICH PERMITS RECREATIONAL VEHICLE DEALERS LICENSED IN THIS COMMONWEALTH TO PARTICIPATE IN RECREATIONAL VEHICLE SHOWS IN THAT STATE UNDER CONDITIONS SUBSTANTIALLY EQUIVALENT TO THE CONDITIONS IMPOSED UPON DEALERS FROM THAT STATE TO PARTICIPATE IN RECREATIONAL VEHICLE SHOWS IN THIS COMMONWEALTH.

(4) THE BOARD SHALL REPORT A VIOLATION OF PENNSYLVANIA LAW OR REGULATION TO THE STATE OR JURISDICTION IN WHICH THE OUT-OF-STATE RECREATIONAL VEHICLE DEALER IS LICENSED OR 20170SB0764PN1322 - 88 - DOMICILED.

(5) FORMS FOR OUT-OF-STATE RECREATIONAL VEHICLE DEALERS SHALL BE PUBLISHED IN THE PENNSYLVANIA BULLETIN AND SHALL BE MAINTAINED ON THE BOARD'S INTERNET WEBSITE.

(6) THE BOARD MAY ACCEPT REGISTRATION INFORMATION AND PAYMENT ELECTRONICALLY.

(7) AN OUT-OF-STATE RECREATIONAL VEHICLE DEALER MAY NOT PARTICIPATE IN A RECREATIONAL VEHICLE SHOW, RECREATIONAL VEHICLE OFF-PREMISE SALE, RECREATIONAL VEHICLE EXHIBITION OR RECREATIONAL VEHICLE RALLY IN THIS COMMONWEALTH, UNLESS THE OUT-OF-STATE RECREATIONAL VEHICLE DEALER SATISFIES AT LEAST FOUR OF THE LISTED ACTIVITIES AT ITS FACILITY IN THE CONTIGUOUS STATE IN WHICH IT IS LICENSED OR DOMICILED THAT DOES NOT REQUIRE LICENSURE:

(I) ACCEPTING DELIVERY OF NEW RECREATIONAL VEHICLES FROM THE RECREATIONAL VEHICLE DEALER'S MANUFACTURER FOR WHICH THE RECREATIONAL VEHICLE DEALER POSSESSES AN AGREEMENT WITH THE MANUFACTURER TO SELL ITS NEW RECREATIONAL VEHICLES.

(II) MAINTAINING INVENTORY AND OFFERING RECREATIONAL VEHICLES FOR SALE TO THE PUBLIC.

(III) CONSUMMATING AND FINALIZING RECREATIONAL VEHICLE SALES.

(IV) SERVICING OR REPAIRING RECREATIONAL VEHICLES.

(V) DELIVERING RECREATIONAL VEHICLES TO PURCHASERS WITH RECREATIONAL VEHICLE TITLING, REGISTRATIONS ISSUED AND TAXES COLLECTED AND PAID TO THE DEALER'S APPROPRIATE HOME STATE AGENCIES.

Section 33 of the act is renumbered and amended 20170SB0764PN132220170SB0764PN0956 - 8983 - to read:

Off-premise vehicle sales, shows and exhibitions shall be <-- permitted to be open on Sundays.

(2) Except as provided in [paragraphs (3) and] paragraph <-- (4), normal vehicle business practices shall be allowed at off-premise sales, vehicle shows or exhibitions on Sunday except that no final sales contract may be consummated on a Sunday.

recreational RECREATIONAL <-- vehicle dealers are permitted to consummate final sales contracts on Sundays.

It is the intent of the General Assembly to protect the 20170SB0764PN1322 - 90 - public health, safety and welfare of the residents of this 20170SB0764PN0956 - 84 - Commonwealth by regulating the relationship between recreational vehicle dealers, manufacturers and suppliers, maintaining competition and providing consumer protection and fair trade.

"Dealer." A person, firm, corporation or business entity licensed or required to be licensed under this chapterchapter. CHAPTER <-- 3.

"Fifth wheel trailer." A vehicle mounted on wheels designed <-- to provide temporary living quarters for recreational, camping or travel use which is a size and weight which does not require a special highway movement permit and is designed to be towed by 20170SB0764PN1322 - 91 - a motorized vehicle that contains a towing mechanism mounted above or forward of the tow vehicle's rear axle.

20170SB0764PN0956 - 85 - "Folding camping trailer." A vehicle mounted on wheels and constructed with collapsible side walls that fold for towing by another vehicle and unfold at the campsite to provide temporary living quarters for recreational, camping or travel use.

20170SB0764PN1322 - 92 - "Proprietary part." A part manufactured by or for and sold exclusively by a manufacturer.

20170SB0764PN0956 - 86 - "Supplier." A person, firm, corporation or business entity that engages in the manufacturing of recreational vehicle parts, accessories or components.

"Travel trailer." A vehicle mounted on wheels designed to <-- provide temporary living quarters for recreational, camping or travel use of a size and weight as to not require a special highway movement permit when towed by a motorized vehicle.

(b) Area of sales responsibility.--The manufacturer shall designate the area of sales responsibility exclusively assigned to a dealer in the manufacturer/dealer agreement and may not 20170SB0764PN1322 - 93 - change the area or contract with another dealer for sale of the same line-make in the designated area for the duration of the 20170SB0764PN0956 - 87 - agreement.

<-- (1) If the manufacturer or distributor terminates, cancels or fails to renew the manufacturer/dealer agreement without good cause, the manufacturer or distributor must comply with section 506.

JUST(b) CAUSE.Burden of proof.--The manufacturer or distributor has the burden of showing good cause for terminating, canceling or failing to renew a manufacturer/dealer agreement with a dealer.

SECTIONFor 506purposes SHALLof NOTdetermining APPLYwhether TOthere THISis <--good SECTION.cause for the proposed action, any of the following factors may be considered:

(b)(1) BurdenThe extent of proof.--The manufacturer or distributor has the burdenaffected ofdealer's showingpenetration goodin JUST20170SB0764PN0956 cause- for88 terminating,- cancelingthe <--area orof failingsales toresponsibility. renew a manufacturer/dealer agreement with a 20170SB0764PN1322 - 94 - dealer.

For purposes of determining whether there is good JUST <-- cause for the proposed action, any of the following factors may be considered:

(1) The extent of the affected dealer's penetration in the area of sales responsibility COMPARED TO OTHER SIMILARLY <-- SITUATED DEALERS AND MARKET CONDITIONS.

(c) Written notice required.--Except as otherwise provided in this section, a manufacturer or distributor shall provide a dealer with at least 90 days' prior written notice of termination, cancellation or nonrenewal of the manufacturer/dealer agreement in the event the dealer is being terminated for good JUST cause.

<-- (1) The notice shall state all reasons for the proposed termination, cancellation or nonrenewal and shall state that, within 30 days following receipt of the notice, the dealer shall provide to the manufacturer or distributor written notice of intent to cure all claimed deficiencies.

The dealer shall have 90 days following receipt of the original notice 20170SB0764PN1322 - 95 - to rectify the deficiencies.

If the dealer fails to provide the notice of intent to cure the deficiencies in the prescribed time period or fails to 20170SB0764PN0956 - 89 - cure the deficiencies in the time period provided, the termination, cancellation or nonrenewal shall take effect 30 days after the dealer's receipt of the original notice.

(d) Time period of notice.--The notice period may be reduced to 30 days if the manufacturer's or distributor's grounds for termination, cancellation or nonrenewal are due to any of the following good JUST cause factors:

<-- (1) A dealer or one of its owners has been convicted of or has entered a plea of nolo contendere to a felony.

(e) Nonapplicability of notice.--The notice provisions of subsection (c) do not apply if the reason for termination, 20170SB0764PN1322 - 96 - cancellation or nonrenewal is the dealer's insolvency, the occurrence of an assignment for the benefit of creditors or bankruptcy.

20170SB0764PN0956 - 90 - (a) General rule.--A dealer may terminate or cancel its manufacturer/dealer agreement with a manufacturer or distributor with or without good JUST cause by giving 30 days' written <-- notice.

(1) If the termination or cancellation is for good JUST <-- cause, the notice shall state all reasons for the proposed termination or cancellation and shall state that if, within 30 days following receipt of the notice, the manufacturer or distributor provides to the dealer a written notice of intent to cure all claimed deficiencies, the manufacturer or distributor will then have 90 days following receipt of the original notice to rectify the deficiencies.

(b) Good JUST cause shown.--If the dealer terminates, <-- cancels or fails to renew the manufacturer/dealer agreement without good JUST cause, the provisions of section 506 shall not <-- apply.

If the dealer terminates, cancels or fails to renew the manufacturer/dealer agreement with good JUST cause, the <-- provisions of section 506 shall apply.

The dealer has the burden 20170SB0764PN1322 - 97 - of showing good JUST cause for the proposed termination, <-- cancellation or nonrenewal action by a dealer due to any of the following good JUST cause factors:

<-- (1) A manufacturer being convicted of or entering a plea of nolo contendere to a felony.

(2) The business operations of the manufacturer have 20170SB0764PN0956 - 91 - been abandoned or closed for 10 consecutive business days, unless the closing is due to an act of God, strike, labor difficulty or other cause over which the manufacturer has no control.

(a) General rule.--If the manufacturer/dealer agreement is terminated, canceled or not renewed by the manufacturer or <-- distributor without good cause, or if the dealer terminates or cancels the manufacturer/dealer agreement for good cause as defined in section 505(a)(1) and the manufacturer fails to provide notice or cure the claimed deficiencies as provided in section 505(a)(2), DEALER FOR JUST CAUSE AS DESCRIBED IN SECTION <-- 505(B) AND THE MANUFACTURER FAILS TO PROVIDE NOTICE OR CURE THE CLAIMED DEFICIENCIES AS PROVIDED IN SECTION 505(A), the manufacturer shall, at the dealer's option and within 45 days after termination, cancellation or nonrenewal, repurchase:

(1) All new, untitled recreational vehicles that were 20170SB0764PN1322 - 98 - acquired from the manufacturer or distributor within 12 months before the effective date of the notice of termination, cancellation or nonrenewal that have not been used, except for demonstration purposes, and that have not been altered or damaged, at 100% of the net invoice cost, including transportation, less applicable rebates and discounts to the dealer.

(2) In the event any of the vehicles repurchased under 20170SB0764PN0956 - 92 - this section are damaged, but do not trigger a consumer disclosure requirement, the amount due the dealer shall be reduced by the cost to repair the vehicle.

(b) Sale of remaining inventory after termination.-- (1) A dealer is not prohibited from selling the remaining in-stock inventory of a particular line-make after 20170SB0764PN1322 - 99 - a manufacturer/dealer agreement has been terminated or not renewed under section 504.

(2) If recreational vehicles of a line-make subject to the terminated agreement are not repurchased or required to be repurchased by the manufacturer or distributor, the dealer may continue to sell the recreational vehicles that are subject to the terminated manufacturer/dealer agreement and are currently in stock until those recreational vehicles are 20170SB0764PN0956 - 93 - no longer in the dealer's inventory.

(a) General rule.-- (1) If a dealer desires to make a change in ownership by the sale of the business assets, stock transfer or otherwise, the dealer shall give the manufacturer or distributor written notice at least 15 30 business days before the closing, <-- including all supporting documentation as may be reasonably required by the manufacturer or distributor to determine if an objection to the sale may be made.

or (v) has undergone in the last 10 years bankruptcy, 20170SB0764PN1322 - 100 - insolvency, a general assignment for the benefit of creditors or the appointment of a receiver, trustee or conservator to take possession of the transferee's business or property.

(2) If the manufacturer or distributor objects to a proposed change of ownership, the manufacturer or distributor shall give written notice of its reasons to the dealer within 10 business days after receipt of the dealer's notification 20170SB0764PN0956 - 94 - and complete documentation.

(iii) prior termination by the manufacturer of the 20170SB0764PN1322 - 101 - successor for breach of a dealer agreement;

A family member may not succeed to a 20170SB0764PN0956 - 95 - dealership if the succession involves, without the manufacturer's or distributor's consent, a relocation of the business or an alteration of the terms and conditions of the manufacturer/dealer agreement.

In the determination of what constitutes reasonable compensation under this section, the principal factors to be given consideration shall be the actual wage rates being paid by the dealer and the actual retail labor 20170SB0764PN1322 - 102 - rate being charged by the dealers in the community in which the dealer is doing business.

The compensation of a dealer for warranty labor may not be less than the lowest retail POSTED <-- labor rates actually charged by the dealer for similar nonwarranty labor as long as the rates are reasonable.

(c) Reimbursement.--The warrantor shall reimburse the dealer for warranty parts at actual wholesale cost plus a minimum 30% handling charge and the cost, if any, of freight to return 20170SB0764PN0956 - 96 - warranty parts to the warrantor.

(f) Inability to perform repairs.--The dealer shall <-- immediately notify the warrantor verbally or in writing if the dealer is unable to perform warranty repairs within 10 days of receipt of verbal or written complaints from a consumer.

(F)(g) WARRANTORDisapproval NOTIFICATION.--IFof Awarranty DEALERclaims.--The RECEIVESwarrantor Ashall WRITTENdisapprove <--warranty ORclaims VERBALin COMPLAINTwriting FROMwithin A45 CONSUMERdays RELATIVEafter TOthe Adate WARRANTYof REPAIR,submission THEby DEALERthe MUSTdealer NOTIFYin THEthe WARRANTORmanner ABOUTand THEform COMPLAINTprescribed INby WRITINGthe WITHINwarrantor. 10 DAYS OF RECEIVING THE COMPLAINT IF THE DEALER CANNOT SATISFY THE CONSUMER'S COMPLAINT.

(g) Disapproval of warranty claims.--The warrantor shall disapprove warranty claims in writing within 45 days after the date of submission by the dealer in the manner and form 20170SB0764PN1322 - 103 - prescribed by the warrantor.

The warrantor may ship parts to the dealer to effect the campaign 20170SB0764PN0956 - 97 - work, and, if the parts are in excess of the dealer's requirements, the dealer may return unused parts to the warrantor for credit after completion of the campaign.

(6) Require the dealer to make warranties to customers 20170SB0764PN1322 - 104 - in any manner related to the manufacture of the recreational vehicle.

(3) Fail to accurately document the time spent completing each repair, the total number of repair attempts conducted on a single unit and the number of repair attempts 20170SB0764PN0956 - 98 - for the same repair conducted on a single vehicle.

20170SB0764PN1322 - 105 - (2) A new recreational vehicle dealer to be denied indemnification for failing to discover, disclose or remedy a defect in the design or manufacturing of a new recreational vehicle or new recreational trailer.

(b) Denial of indemnification.--A new recreational vehicle dealer may be denied indemnification if the new recreational vehicle dealer fails to remedy a known and announced defect in accordance with the written instructions of a warrantor for whom 20170SB0764PN0956 - 99 - the new recreational vehicle dealer is obligated to perform warranty service.

(a) General rule.--Whenever a new recreational vehicle is 20170SB0764PN1322 - 106 - damaged prior to transit to the dealer or is damaged in transit to the dealer when the carrier or means of transportation has been selected by the manufacturer or distributor, the dealer shall notify the manufacturer or distributor of the damage within the time frame specified in the manufacturer/dealer agreement and:

(b) Refusal or failure to repair.--If the manufacturer or distributor refuses or fails to authorize repair of the damage 20170SB0764PN0956 - 100 - within 10 days after receipt of notification or if the dealer rejects the recreational vehicle because of damage, ownership of the new RV shall revert to the manufacturer or distributor.

In no instance shall a dealer deem an amount less than the distance between the dealer 20170SB0764PN1322 - 107 - and the manufacturer's factory or a distributor's point of distribution, plus 100 miles, as unreasonable.

(relating to commercial code) and the following shall 20170SB0764PN0956 - 101 - apply:

20170SB0764PN1322 - 108 - (1) purchase a product that the dealer did not order;

(b) Definition.--As used in this section, the term "coerce" includes, but is not limited to, threatening to terminate, cancel or not renew a manufacturer/dealer agreement without good <-- JUST cause or threatening to withhold product lines the dealer <-- is entitled to purchase under the manufacturer/dealer agreement or delay product delivery as an inducement to amending the manufacturer/dealer agreement.

20170SB0764PN0956 - 102 - Section 512.

<-- (a) General rule.--A dealer, manufacturer or warrantor injured by another party's violation of this chapter may bring a civil action in circuit court to recover actual damages.

(1) The demand for mediation shall be served upon the other party via certified mail at the address stated within 20170SB0764PN1322 - 109 - the manufacturer/dealer agreement between the parties.

(4) The service of a demand for mediation under this 20170SB0764PN0956 - 103 - section shall toll the time for the filing of a complaint, petition, protest or other action under this chapter until representatives of both parties have met with a mutually selected mediator for the purpose of attempting to resolve the dispute.

(c) Injunction.--In addition to the remedies provided in this section and notwithstanding the existence of any additional 20170SB0764PN1322 - 110 - remedy at law, a manufacturer, warrantor or a dealer is authorized to make application to a circuit court for the grant, upon a hearing and for cause shown, of a temporary or permanent injunction, or both, restraining a person from acting as a dealer without being properly licensed, from violating or continuing to violate any of the provisions of this chapter or from failing or refusing to comply with the requirements of this chapter.

SECTION 512.

APPLICABILITY.

<-- TO THE EXTENT THE PROVISIONS OF THIS CHAPTER ARE INCONSISTENT WITH ANY OTHER PROVISIONS OF THIS ACT AS APPLIED TO AN RV DEALER, MANUFACTURER, DISTRIBUTOR OR SUPPLIER THIS CHAPTER CONTROLS.

UNLESS INCONSISTENT WITH THE PROVISIONS IN THIS CHAPTER OR EXPRESSLY EXCLUDED, THE PROVISIONS OF THIS ACT APPLY TO RV DEALERS, MANUFACTURERS, DISTRIBUTORS AND SUPPLIERS.

If any provision of this chapter or its application to any person or 20170SB0764PN0956 - 104 - circumstance is held invalid, the invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application.

20170SB0764PN1322 - 111 - This act shall not be deemed to repeal, suspend, modify or revoke any of the provisions of 75 Pa.C.S.

Each rule and regulation of the board not inconsistent with this act shall remain in effect after such date until repealed 20170SB0764PN0956 - 105 - or amended by the board.

20170SB0764PN132220170SB0764PN0956 - 112106 -