hb 1361

CHAPTER 215

HB 1361-FN - FINAL VERSION

AN ACT relative to the regulation of business practices between off highway recreational vehicle manufacturers, distributors, and dealers.

SPONSORS: Rep. Letourneau, Rock 13; Rep. R. L'Heureux, Hills 18; Sen. Johnson, Dist 3

This bill includes off highway recreational vehicles (OHRVs) in RSA 357-C, which regulates business practices between motor vehicle manufacturers, distributors, and dealers, and RSA 357-D, the state "lemon law."

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to the regulation of business practices between off highway recreational vehicle manufacturers, distributors, and dealers.

Be it Enacted by the Senate and House of Representatives in General Court convened:

215:1 New Motor Vehicle Arbitration; Off Highway Recreational Vehicle Added to Definition of Motor Vehicle. Amend RSA 357-D:2, X to read as follows:

(a) A motor vehicle, as defined in RSA 259:60, of the private passenger or station wagon type with a gross weight not exceeding 9,000 pounds that is purchased or leased by a consumer; or

(b) Any other 4-wheel motor vehicle with a gross weight not exceeding 9,000 pounds, except tractors, [~~off highway recreational vehicles,~~] and mopeds; or

215:2 New Motor Vehicle Arbitration; Enforcement of Warranties; OHRV Added. Amend RSA 357-D:3, V to read as follows:

V. If, after a reasonable number of attempts, the manufacturer, its agent or authorized dealer or its delegate is unable to conform the motor vehicle to any express warranty by repairing or correcting any defect or condition covered by the warranty which substantially impairs the use, market value, or safety of the motor vehicle to the consumer, the manufacturer shall, at the option of the consumer within 30 days of the effective date of the board's order, replace the motor vehicle with a new motor vehicle from the same manufacturer, if available, of comparable worth to the same make and model with all options and accessories with appropriate adjustments being allowed for any model year differences or shall accept return of the vehicle from the consumer and refund to the consumer the full purchase price or to the lessee, in the case of leased vehicles, as provided in paragraph IX. In those instances in which a refund is tendered, the manufacturer shall refund to the consumer the full purchase price as indicated in the purchase contract and all credits and allowances for any trade-in or down payment, license fees, finance charges, credit charges, registration fees, and any similar charges and incidental and consequential damages or, in the case of leased vehicles, as provided in paragraph IX. Refunds shall be made to the consumer and lienholder, if any, as their interests may appear, or to the motor vehicle lessor and lessee as provided in paragraph IX. A reasonable allowance for use shall be that amount directly attributable to use by the consumer prior to the first repair attempt and shall be calculated by multiplying the full purchase price of the vehicle by a fraction having as its denominator 100,000, or for a motorcycle or OHRV with an engine size of 250 cubic centimeters or smaller 20,000, or for a motorcycle or OHRV with an engine size greater than 250 cubic centimeters 40,000, and having as its numerator the number of miles that the vehicle traveled prior to the first attempt at repairing the vehicle.

215:3 New Motor Vehicle Arbitration; Enforcement of Warranties; OHRV Added. Amend RSA 357-D:3, IX (a) to read as follows:

(a) The manufacturer shall provide to the lessee the aggregate deposit and rental payments previously paid to the motor vehicle lessor by the lessee, and incidental and consequential damages, if applicable, minus a reasonable allowance for use. The aggregate deposit shall include, but not be limited to, all cash payments and trade-in allowances tendered by the lessee to the motor vehicle lessor under the lease agreement. The reasonable allowance for use shall be calculated by multiplying the aggregate deposit and rental payments made by the lessee on the motor vehicle by a fraction having as its denominator 100,000 or for a motorcycle or OHRV 20,000, and having as its numerator the number of miles that the vehicle traveled prior to the first attempt to repair the vehicle.

215:4 Regulation of Business Practices Between Motor Vehicle Manufacturers, Distributors and Dealers; Definition of Motor Vehicle Amended. Amend RSA 357-C:1, I to read as follows:

I. "Motor vehicle" means every self-propelled vehicle manufactured and designed primarily for use and operation on the public highways and required to be registered and titled under the laws of New Hampshire, not including farm tractors and other machines and tools used in the production, harvesting, and care of farm products. Except for RSA 357-C:3, I-b, and where otherwise specifically exempted from the provisions of this chapter, "motor vehicle" shall include off highway recreational vehicles.

215:5 Regulation of Business Practices Between Motor Vehicle Manufacturers, Distributors and Dealers; Definition of New Motor Vehicle Amended. Amend RSA 357-C:1, XV to read as follows:

XV. "New motor vehicle" means a motor vehicle which is in the possession of the manufacturer or distributor, or has been sold only to the holders of a valid sales and service agreement, franchise or contract granted by the manufacturer or distributor for the sale of that make of new motor vehicle and which is in fact new and on which the original title, to the extent a title is required by the state of New Hampshire, has not been issued from the franchised dealer.

215:6 New Paragraphs; Regulation of Business Practices Between Motor Vehicle Manufacturers, Distributors and Dealers; Definition of OHRV added. Amend RSA 357-C:1 by inserting after paragraph XXIII the following new paragraphs:

XXV. "Off highway recreational vehicle" means any mechanically propelled vehicle used for pleasure or recreational purposes running on rubber tires, belts, cleats, tracks, skis, or cushioned air and dependent on the ground or surface for travel, or other unimproved terrain whether covered by ice or snow or not, where the operator sits in or on the vehicle. All legally registered motorized vehicles when used for off highway recreational purposes shall fall within the meaning of this definition; provided that, when said OHRV is being used for transportation purposes only, it shall be deemed that said OHRV is not being used for recreational purposes. For purposes of this chapter OHRVs shall also include: "all terrain vehicle" as defined in RSA 215-A:1, I-b, "snow traveling vehicle" as defined in RSA 215-A:1, XIII, and "trail bike" as defined in RSA 215-A:1, XIV.

215:7 Regulation of Business Practices Between Motor Vehicle Manufacturers, Distributors and Dealers; Prohibited Conduct Relative to Disclosure Prior to Sale of Direct Import Vehicle; OHRVs Excluded. Amend the introductory paragraph of RSA 357-C:3, I-b to read as follows:

I-b. Distributor or motor vehicle dealer, in offering for sale a direct import vehicle other than an OHRV, not to disclose to the prospective buyer in writing the following:

215:8 Regulation of Business Practices Between Motor Vehicle Manufacturers, Distributors and Dealers; Prohibited Conduct Relative to Delivery of Motor Vehicles; Exception Added. Amend RSA 357-C:3, III(a) to read as follows:

(a) Refuse to deliver in reasonable quantities, and within a reasonable time after receipt of dealer's order, to any motor vehicle dealer having a franchise or contractual arrangement for the retail sale of new motor vehicles sold or distributed by such manufacturer, distributor, distributor branch or division, or factory branch or division, any motor vehicles covered by such franchise or contract and specifically advertised by such manufacturer, distributor, distributor branch or division, or factory branch or division to be available for immediate delivery; provided, however, that the failure to deliver any motor vehicle shall not be considered a violation of this subparagraph if such failure is due to an act of God, work stoppage or delay due to strike or labor difficulty, shortage of materials, the seasonal nature of the production and ordering of the new motor vehicles, freight embargo, or other cause over which the manufacturer, distributor, or any agent thereof, shall have no control;

215:9 Regulation of Business Practices Between Motor Vehicle Manufacturers, Distributors and Dealers; Limitations on Cancellations, Terminations and Nonrenewals; Failure of Performance Under Franchise Agreement. Amend RSA 357-C:7, II(b)(2) to read as follows:

(2)(A) Except with regard to OHRV dealers, such failure thereafter continued within the period which began not more than 180 days before the date notification of termination, cancellation, or nonrenewal was given pursuant to paragraph V; and

(B) With regard to OHRV dealers, such failure thereafter continued within the period which began not more than 365 days before the date notification of termination, cancellation, or nonrenewal was given pursuant to paragraph V; and