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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