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SB 286 DE
Passed Legislature

AN ACT TO AMEND TITLE 21 OF THE DELAWARE CODE RELATING TO COMMERCE AND TRADE.

DE · session 153 · Senate · bill

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Introduced Apr 21, 2026

Latest action (Jun 24, 2026) Passed By Senate. Votes: 21 YES

Summary

This bill clarifies and updates Delaware's regulations for manufacturer-dealer agreements involving recreational vehicles, vessels, and trailers. The bill requires manufacturers to specify in writing their dealers' obligations for services such as pre-delivery preparation, maintenance, warranties, and recall work, and mandates that manufacturers provide written compensation schedules and reasonable time allowances for these services. The bill establishes minimum compensation requirements for warranty work and warranty parts, requiring compensation at least equal to rates for non-warranty services plus costs for handling and freight. The bill also requires dealers to notify manufacturers within 180 days if they cannot perform warranty repairs and allows industry associations representing multiple dealers to have legal standing to file suit against manufacturers. The bill adds definitions for various types of vehicles and makes technical corrections to conform with Delaware drafting standards.

AI-generated plain-language summary of the bill (from the OpenStates abstract — no full text available yet) — neutral, and may be imperfect.

Official abstract

This Act clarifies portions of Chapter 84 of Title 21 of the Delaware Code pertaining to new recreational vehicle, vessel, or new recreational trailer manufacturer-dealer agreements. The Act includes the following provisions: Definitions. The Act amends § 8401 of Title 21 and clarifies the definitions of "new recreational trailer" and "new recreational vehicle" and adds definitions of "all-terrain vehicle," "off-highway vehicle," "side-by-side vehicle," and "vessel." Written agreements. Manufacturers are required to specify in writing to their new recreational vehicle dealers licensed in the state the dealers' obligations for pre-delivery preparation, manufacturer-sponsored maintenance programs, manufacturer extended warranty, certified pre-owned warranty, manufacturer-issued service contracts, parts exchange programs, recall, and warranted service on the dealers' products. In addition, manufacturers must compensate their new recreational vehicle dealers for these services and provide the dealers with a schedule of compensation and the time allowances for the performance of the work and services. Termination, cancellation, nonrenewal, or alteration of a dealership. In the event a new recreational vehicle dealer terminates, cancels, or fails to renew a manufacturer-dealer agreement for good cause, and the manufacturer fails to cure the deficiencies, at the new recreational vehicle dealer's election and within 45 days of the termination, cancellation, or nonrenewal, the manufacturer must, in addition to its existing obligations, compensate the dealer for any transporting, handling, packing, storing, and loading of any returned parts, tools, and equipment. Warranty obligations. With respect to parts reimbursement, reasonable compensation to a new recreational vehicle dealer may not be less than the rate charged by the dealer for like services to nonwarranty customers for nonwarranty parts, service, or actual wholesale cost, plus a minimum 40% handling and the cost of any freight to return the warranty parts to the warrantor. A new recreational vehicle dealer must notify the warrantor within 180 days if it is unable to perform any warranty repairs. In addition, a schedule of compensation for warranty services must include reasonable compensation for diagnostic work, parts, repair service, and labor. Time allowances for the diagnosis and performance of warranty work and services must be reasonable and adequate. With respect to manufacturer-sponsored maintenance programs, manufacturer extended warranty, certified pre-owned warranty, manufacturer-issued service contracts, parts exchange programs, recall and warranty parts, and labor reimbursement, reasonable compensation may not be less than the rate charged by the dealer for like service to non-warranty customers for nonwarranty parts, services, and repairs. If a manufacturer furnishes a part of a component to a dealer at no or a reduced cost, the manufacturer must compensate the dealer in the same manner as warranty parts compensation, less the dealer cost for the part or component as listed in the manufacturer's price schedule. Association standing. An association that has at least 4 recreational vehicle dealers as members, substantially all of whom are new recreational vehicle dealers within the State, and that represents the collective interests of its members, has standing to file a petition or civil action against a manufacturer regulated under this chapter for itself or on behalf of any or all of its members. Such an association also has standing to intervene in an action against a manufacturer regulated under this chapter previously filed by an individual member or members of the association to enforce the provisions of this chapter. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Sponsors (22)

Action history (9)

  1. Apr 21, 2026 Introduced and Assigned to Banking, Business, Insurance & Technology Committee in Senate · upper
  2. May 5, 2026 Reported Out of Committee (Banking, Business, Insurance & Technology) in Senate with 5 On Its Merits · upper
  3. May 14, 2026 Passed By Senate. Votes: 21 YES · upper
  4. May 19, 2026 Assigned to Economic Development/Banking/Insurance & Commerce Committee in House · lower
  5. Jun 16, 2026 Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 8 On Its Merits · lower
  6. Jun 23, 2026 Amendment HA 1 to SB 286 - Introduced and Placed With Bill · upper
  7. Jun 23, 2026 Amendment HA 1 to SB 286 - Passed In House by Voice Vote · lower
  8. Jun 23, 2026 Passed By House. Votes: 40 YES 1 ABSENT · lower
  9. Jun 24, 2026 Passed By Senate. Votes: 21 YES · upper

Full text

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