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F I S C A L I M P A C T R E P O R T

SPONSOR:	Smith		DATE TYPED:	2/7/03		HB
SHORT TITLE:		Recreational Vehicle Franchise Agreements				SB	240
					ANALYST:		Wilson

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
	NFI

SOURCES OF INFORMATION

Responses Received From

Attorney General’s Office (AGO)

No Response From

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

Senate Bill 240 amends the Motor Vehicle Dealers Franchising Act NMSA, 57-16-1 et. seq. to require written franchise or sales agreements between recreational vehicle manufacturer or distributors and recreational vehicle dealers shall include the rates charged by a dealer for performing warranty services.

Significant Issues

SB 240 provides access to information regarding the amount charged by a dealer for warranty services in advance of the services needing to be performed.

The AGO notes that if the contract does not specify the amount charged for warranty work, the manufacturer and dealer may not agree on a price beforehand and dispute over the amount due, thereby causing a delay in the repair of a consumer’s vehicle.

ADMINISTRATIVE IMPLICATIONS

TRD will be able to ensure implementation of the provision of SB 240 with existing staff.

DW/yr