The attendance of out-of-state dealers is vital to FMCA international conventions. An existing Georgia law prohibits out-of-state dealers from selling a new RV in Georgia unless they have a franchise dealership agreement to do so.

If approved, HB 297 would take effect July 1, 2008. An FMCA convention is scheduled for March 2009 in Perry, Ga.

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FMCA has held five international conventions at the Georgia National Fairgrounds & Agricenter (GNFA) in Perry, but a current law would make it impractical to hold a sixth confab in the Peach State.

The legislation, enacted in August 2005, prohibits out-of-state dealers from selling a new RV in Georgia unless they have a franchise dealership agreement to do so.

In late April 2007, the General Assembly passed HB 117, which would have allowed certain franchise agreement exemptions for rallies or conventions involving more than 2,500 RVs. Attendance at FMCA conventions typically exceeds 3,000 motorhomes, so HB 117 would have paved the way for out-of-state RV dealers to sell at these events.

Gov. Sonny Perdue, on May 30, vetoed HB 117. According to a press release issued by his office, the RV franchise agreement provision did not prompt his action. The governor stated:

“HB 117 would subject dealerships of motorcycles, all-terrain vehicles and utility vehicles to franchise regulation: dealers that are not franchisees would be prohibited from selling such vehicles in Georgia. One provision would limit franchise opportunities to established places of business. This result provides a new barrier to entry into the marketplace that I cannot support. Regrettably, another provision cleaning up language from the recreational vehicle franchise law introduced as HB 297, was tacked on to this bill. While I support the intent behind HB 297, I veto HB 117.”

In June, Rep. John Heard, sponsor of HB 117, told FMCA he planned to meet with House leaders to determine whether to seek a veto override. The next legislative session begins in January 2008. “If all this fails, then yes, we will reproduce the bill and run it again,” Rep. Heard said.

Out-of-state dealer sales are vital to the success of FMCA conventions. The practice was permitted at the association's conventions at the GNFA in 1996, 1999, 2002 and in March 2005.

At FMCA’s most recent convention at the GNFA, in March 2007, the current law prohibiting out-of-state sales was in place. Jerry Yeatts, FMCA’s director of conventions and commercial services, said FMCA had signed the convention contract with the Agricenter in June 2005, prior to that law taking effect.

The law caused several cancellations by out-of-state dealers, Yeatts said. “But FMCA continued to work up to the date of the convention with legislators, the GNFA leadership, as well as legal counsel in an effort to continue to have a convention uninterrupted, while pending corrective legislation was in process.”

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Georgia General Assembly
www.legis.state.ga.us