RV dealers in Tennessee will need to post a surety bond following the passage of Senate Bill 1980. Section 10 of the bill, which contains the new requirement as well as licensing procedures, takes effect on July 1, 2017. The rest of SB 1980 becomes effective on January 1, 2017.
Currently, there is no separate licensing process or surety bond required for RV dealers in the state. SB 1980 will require RV manufacturers, factory representatives, dealers and salespersons to obtain a license. An individual who engages in more than one of those activities, or who conducts business at more than one location, will need to obtain separate licenses.
RV dealers will also need to obtain a $50,000 surety bond, the same amount required of the state’s motor vehicle dealers. It protects consumers from financial loss in case the dealer does not pay the necessary fees and taxes on the sale. The bond can be cancelled with 60 days’ notice to the Tennessee Motor Vehicle Commission.
Applicants for RV dealer licenses will need to submit the following information to the Commission:
- Applicant’s name, address and trade name, if applicable
- Names and addresses of any business partners, and the names they will do business under
- If applicant is a corporation, names of all principal officers and anyone owning more than a 5% share in the company
- Names of any inventory financers
- Complete descriptions and addresses of all locations where business will be conducted
- Licensing fee to be set by the Commission
Licenses are valid for two years after being issued. Applicants must maintain a surety bond and notify the Commission if ownership or location of the dealership changes, or they could face civil charges and license revocation. Licenses submitted for renewal after already expiring will be assessed a fee that is 50% of the original licensing fee. If a renewal application is submitted more than 90 days after expiring, it will not be accepted and the individual will need to submit a new application.
Contact the Commission at (615) 741-2711 with questions about the changing regulations. SuretyBonds.com can answer all your bonding questions and help you purchase a Tennessee surety bond.
