SB 954 - Under the act, manufacturers and dealers of manufactured homes or modular units, as defined in the act, are required to have a written agreement signed by both parties. The act specifies requirements for manufacturers with regard to dealers' exclusive sales areas, product advertisement and pricing, and termination and renewal of dealer agreements. (Section 700.203). The act requires manufacturers to provide dealers with written notice prior to terminating a dealer agreement, as detailed in the act. Dealers are given an opportunity to notify the manufacturer of their intention to cure any alleged deficiencies, extending the time period after which the dealer agreement will be terminated, and if the deficiencies are cured, the manufacturer's notice shall be void. The act specifies certain grounds for termination allowing manufacturers to terminate dealer agreements within a shorter notice period or immediately, and provides that a dealer may terminate a dealer agreement at any time with 30 days written notice. (Section 700.206).
Under certain circumstances specified in the act, manufacturers shall repurchase certain items from dealers, including inventory, accessories and parts, equipment, special tools, and signage, at costs detailed in the act. (Section 700.209).
Lastly, the act enacts a framework for how manufacturers and dealers are required to address certain damages that may occur to manufactured homes or modular units prior to delivery, including a requirement to obtain written acknowledgment from the consumer, requirements for providing notice that damage has occurred, and the respective duties of the dealer and manufacturer. (Section 700.213).
This act is substantially similar to HB 2325 (2024).
ERIC VANDER WEERD