IndianaSB 484First Regular Session 124th General Assembly (2025)Senate

Recreational vehicle dealers.

Sponsored By: Blake Doriot (Republican)

Signed by Governor

Summary

Sets forth requirements for recreational vehicle dealer agreements for the sale of recreational vehicles in Indiana. Makes conforming changes.

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 3 benefits, 0 costs, 8 mixed.

Sunday vehicle purchases allowed at shows

Beginning July 1, 2025, Indiana recreational vehicle dealers can sell or offer vehicles on Sundays at qualifying shows. Shows must include at least two dealers and take place away from a dealer’s business. Dealers can display or sell only vehicle lines within their assigned sales areas. The local dealer has exclusive participation rights unless the manufacturer reassigns them because the dealer fails to provide adequate representation.

Inventory buybacks protect departing vehicle dealers

Dealers ending agreements for good cause can elect inventory buybacks, generally within 45 days; suppliers ending agreements without good cause also owe buybacks. New, untitled, unaltered vehicles bought within 18 months before notice qualify if unused except for demonstrations. Payment is 100% of net invoice cost, including transportation and less rebates or discounts; damage repair costs can reduce payment. Undamaged accessories and proprietary parts bought within 12 months before termination receive 105% of original net price with original invoices. Working equipment bought within five years qualifies if supplier-requested and no longer usable in the business; payment includes net cost, freight, delivery, distribution charges, and sales tax, with invoices. Full payment comes before surrender, and dealers can keep selling inventory that is not bought back.

Vehicle dealers gain protection against pressure

Beginning July 1, 2025, recreational vehicle manufacturers cannot issue policies that violate or substantially change active dealer agreements. Manufacturers must also distribute new vehicles fairly among dealers. Manufacturers and distributors cannot pressure dealers to buy unordered products, accept agreements, or take unfair or unreasonable actions. They also cannot force dealers to accept binding arbitration or give up legal or contract rights. Dealers bear the burden of proving coercion.

Clearer ownership transfers for vehicle dealers

Dealers must give suppliers written notice and supporting documents at least 10 business days before an ownership change closes. Suppliers have seven business days to explain objections; silence means approval, and suppliers must prove their objections. Grounds are limited to listed prior terminations, convictions, license or credit problems, and specified financial failures within 10 years. A designated family member can succeed a deceased or incapacitated dealer when the supplier determines the existing agreement should continue. Suppliers must prove specified good cause to object; succession cannot change the location or agreement without consent, and this path does not apply when a written agreement names a different successor.

Minimum warranty payments for vehicle dealers

Warranty providers must give dealers written duties, pay schedules, and reasonable time allowances for covered work. Labor pay cannot fall below the dealer’s lowest ordinary retail rate for similar nonwarranty work. Unlisted repairs receive actual-time payment unless the provider proves the time unreasonable. Parts reimbursement includes wholesale cost plus at least 30% for handling; free supplied parts receive 30% handling, capped at $300. Providers also pay required return freight, and dealers can return excess unused warranty and campaign parts for credit.

Protected sales areas for vehicle dealers

Beginning July 1, 2025, Indiana recreational vehicle dealers and their suppliers need written agreements for new vehicle sales. Each agreement must name the dealer’s sales area. Suppliers cannot change that area without both sides’ consent or appoint another dealer for the same vehicle line there. Dealers cannot sell outside their areas. Dealers must also give current suppliers 30 days’ written notice before agreeing to add a directly competing vehicle line.

Vehicle businesses face lawsuits and penalties

Dealers, manufacturers, distributors, and warranty providers harmed by chapter violations can sue for actual damages in the dealer’s county. Before seeking damages, claimants must demand mediation; parties select an independent mediator and meet within 20 days, unless extended for good cause or agreement. Cases pause until that meeting, but dealers, manufacturers, and distributors can seek injunctions after a hearing for good cause without posting bond. Indiana’s Secretary of State can suspend or revoke manufacturer, distributor, or dealer licenses for chapter violations; chapter, rule, or order violations carry penalties up to $1,000 each. Penalties fund the new Dealer Enforcement Account, which has ongoing spending authority subject to budget agency approval and retains investment interest.

Vehicle businesses share fault-based legal costs

After a recreational vehicle is titled, dealers and warranty providers must cover each other’s losses caused by their own negligence or intentional wrongdoing. This includes a duty to defend the other party against covered claims. Dealers cannot lose protection for failing to find, disclose, or fix a design or manufacturing defect. Each party must share covered lawsuits within 10 days after receiving notice. Coverage for dealers includes court costs and reasonable attorney and expert witness fees.

Vehicle dealers gain contract exit protections

Manufacturers and distributors must prove good cause to end or refuse to renew a recreational vehicle dealer agreement. Usually, they must give 120 days’ written notice stating all reasons. Dealers have 30 days after receipt to declare intent to fix the problem and up to 120 days after receipt to fix it; a successful fix blocks termination. Notice drops to 30 days for listed felony, misrepresentation, license, or closure events, including closure for 10 consecutive business days, subject to exceptions. No written notice is required for insolvency, assignment for creditors, or bankruptcy. Dealers can end all or part of an agreement with 30 days’ written notice, but must prove any claimed good cause, including a material breach left unfixed for 120 days after written notice.

Vehicle dealers gain delivery damage protections

Dealers owe transit damage costs only when they chose both the transportation method and carrier; otherwise, manufacturers or distributors pay. Dealers get at least two business days after physical delivery to inspect and reject damaged new vehicles. Ownership returns to the supplier upon rejection or failure to authorize repairs within 10 days after damage notice. Dealers must use due care while holding damaged vehicles but have no other obligations for them. Dealers can also reject unreasonable mileage; the factory-or-distributor-to-dealer distance plus 100 miles counts as reasonable.

Warranty service deadlines for vehicle businesses

Dealers must file warranty claims within 45 days after work ends and promptly report when they cannot or will not repair. Providers have 45 days after a properly submitted claim to reject it in writing for good cause; otherwise it is approved. Approved claims must be paid within 60 days after receipt, and providers may reasonably audit records. Manufacturers must agree to supply adequate repair data; warranty providers must honor warranties, pay covered authorized work, and include expected parts dates in factory-campaign notices. Dealers must promptly and competently perform predelivery inspections and authorized warranty work, including same-line service for traveling customers unless their conduct harms the business. Dealers must track actual time without scheduled allowances and cannot misstate warranties or claim agency; providers cannot label dealers as warrantors or require manufacturing warranties.

Sponsors & Cosponsors

Sponsor

  • Blake Doriot

    Republican • Senate

Cosponsors

  • Dave Heine

    Republican • House

  • Doug Miller

    Republican • House

  • Ed Charbonneau

    Republican • Senate

  • Gary Byrne

    Republican • Senate

  • James Tomes

    Republican • Senate

  • Joanna King

    Republican • House

  • Linda Rogers

    Republican • Senate

  • Stacey Donato

    Republican • Senate

  • Susan Glick

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 192 • No: 1

Senate vote • 3/27/2025

Senate concurred with House amendments

Yes: 49 • No: 0

House vote • 3/17/2025

Third reading: passed

Yes: 96 • No: 0

Senate vote • 1/27/2025

Third reading: passed

Yes: 47 • No: 1

Actions Timeline

  1. Public Law 42

    4/9/2025Senate
  2. Signed by the Governor

    4/9/2025Senate
  3. Signed by the President of the Senate

    4/3/2025Senate
  4. Signed by the Speaker

    4/1/2025House
  5. Signed by the President Pro Tempore

    3/27/2025Senate
  6. Senate concurred with House amendments; Roll Call 304: yeas 49, nays 0

    3/27/2025Senate
  7. Motion to concur filed

    3/18/2025Senate
  8. Third reading: passed; Roll Call 271: yeas 96, nays 0

    3/17/2025House
  9. Returned to the Senate with amendments

    3/17/2025House
  10. Second reading: ordered engrossed

    3/13/2025House
  11. Committee report: amend do pass, adopted

    3/10/2025House
  12. First reading: referred to Committee on Roads and Transportation

    3/3/2025House
  13. Referred to the House

    1/28/2025Senate
  14. Third reading: passed; Roll Call 25: yeas 47, nays 1

    1/27/2025Senate
  15. Cosponsors: Representatives King and Heine

    1/27/2025Senate
  16. House sponsor: Representative Miller D

    1/27/2025Senate
  17. Second reading: ordered engrossed

    1/23/2025Senate
  18. Senators Donato and Glick added as coauthors

    1/23/2025Senate
  19. Senator Byrne added as second author

    1/23/2025Senate
  20. Senator Rogers added as coauthor

    1/23/2025Senate
  21. Senator Charbonneau added as coauthor

    1/23/2025Senate
  22. Senator Tomes added as third author

    1/23/2025Senate
  23. Committee report: do pass, adopted

    1/21/2025Senate
  24. First reading: referred to Committee on Homeland Security and Transportation

    1/13/2025Senate
  25. Authored by Senator Doriot

    1/13/2025Senate

Bill Text

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

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