ASSEMBLY ACTION Initial and Date |SENATE ACTION Initial and Date
Adopted Lost | Adopted Lost
Concurred In Not |Concurred In Not
Receded Not | Receded Not
Amend sec. 3, page 1, line 9, after “a” by inserting “single-line”.
Amend sec. 3, page 2, line 3, by deleting “$20,000,000” and inserting “$10,000,000”.
Amend sec. 4, page 2, line 6, by deleting “a” and inserting:
“an oral or”.
Amend sec. 9, page 3, by deleting lines 8 through 12 and inserting:
“the requirements of the dealer agreement concerning the share of the market the dealer was required to obtain unless the supplier has, for not less than 1 year, provided assistance to the dealer in the dealer’s effort to obtain the required share of the market.
5. A supplier is not required to comply with the provisions of subsections 2 and 3 if the supplier terminates or refuses to renew a dealer agreement for any reason set forth in paragraphs (b) to (i), inclusive, of subsection 6.
6. As used in this section, “good cause” means:”.
Amend sec. 10, page 4, by deleting lines 35 and 36 and inserting:
“(a) Do not apply to a supplier that has established a program for its dealers for the return of surplus repair parts if the program provides credit of not less than 85 percent of the net price for the returned repair parts;”.
Amend sec. 12, page 6, by deleting lines 1 through 3 and inserting:
“(e) Repurchase any inventory which is owned by the supplier and leased, rented or used in demonstrations by the dealer if the supplier receives an allowance based on the use of such inventory. Inventory which is used in demonstrations for not more than a total of 50 hours shall be deemed new inventory. Inventory which is used in demonstrations for more than 50 hours and purchased from the supplier less than 36 months before the termination of the dealer’s agreement must be repurchased at its depreciated value, as determined by the supplier and dealer.”.
Amend the bill as a whole by deleting sec. 19 and inserting a new section designated sec. 19, following sec. 18, to read as follows:
“Sec. 19. 1. Except as otherwise provided in this section, any agreement entered into by a supplier and a dealer concerning reimbursement for work performed under a warranty, including, without limitation, a dealer agreement, must comply with the provisions set forth in this section.
2. A supplier who authorizes a dealer to perform work under a warranty shall reimburse a dealer who submits a warranty claim for such work. A dealer may submit a warranty claim to a supplier:
(a) During the period the dealer agreement is in effect; or
(b) After the termination of a dealer agreement if the warranty claim concerns work performed under a warranty during the period the dealer agreement was in effect.
3. A warranty claim which is submitted to a supplier must be paid within 30 days after the claim is approved by the supplier. The supplier shall approve or disapprove a warranty claim or any part thereof within 30 days after it receives the warranty claim. If the warranty claim is disapproved, the supplier shall, not later than 30 days after it receives the warranty claim, send written notice to the dealer setting forth the reasons for disapproval of the warranty claim. A warranty claim which is not disapproved by the supplier within the prescribed period shall be deemed approved.
4. The amount of a warranty claim must not be less than the amount equal to the sum of:
(a) The reasonable and customary time required by the dealer to complete the work, including diagnostic time, expressed in hours and fractions of hours, multiplied by the dealer’s hourly retail rate for labor;
(b) The dealer’s net price for any repair parts replaced, plus 20 percent of the net price for those parts; and
(c) If a warranty claim concerns repair work for any machinery or equipment which is performed by the dealer in accordance with a safety or modification order issued by a supplier, the costs incurred by the dealer to transport to the dealer’s place of business for repair any machinery or equipment which is within the dealer’s service area and subject to a safety or modification order.
5. After a supplier has paid a warranty claim, the supplier shall not charge back, set off or otherwise attempt to recover from a dealer any amount of the warranty claim unless:
(a) The warranty claim is fraudulent;
(b) The work was not performed properly or was not necessary to comply with the requirements of the warranty; or
(c) The dealer did not provide the records for the warranty claim as required by the agreement for work performed under the warranty.
6. A supplier shall not require a dealer to pay the costs incurred by the supplier in paying warranty claims by:
(a) Imposing a surcharge;
(b) Reducing any discounts provided to a dealer; or
(c) Imposing additional requirements for the certification of a dealer authorized to perform work under a warranty.
7. Except for a warranty claim where fraud is alleged, a supplier may not audit the records of a dealer relating to a warranty claim more than 1 year after the warranty claim is submitted to the supplier. A supplier may not audit a warranty claim more than once. The provisions of this subsection do not prohibit a supplier from requesting additional information from a dealer if the initial audit of the warranty claim indicates any errors, inconsistencies or fraud.
8. The provisions of this section do not apply to a written dealer agreement which provides compensation to a dealer for any labor required to be performed under a warranty before the labor is performed if the compensation is based on:
(a) A reduction of the price of the equipment sold to the dealer; or
(b) A lump-sum payment of not less than 5 percent of the suggested retail price of the equipment.
9. As used in this section:
(a) “Audit” means an examination by a supplier of the records of a warranty claim submitted by a dealer.
(b) “Net price” means the price a supplier charges a dealer for a repair part.
(c) “Warranty claim” means a request submitted by a dealer to a supplier for payment for work performed under a warranty or a safety or modification order issued by the supplier.”.