Second Regular Session H.B. 2348
COMMITTEE ON TRANSPORTATION
SENATE AMENDMENTS TO H.B. 2348
(Reference to House engrossed bill)
Page 1, line 20, strike “product DEFECT or”
Line 21, strike “INCLUDING ANY”
Line 37, strike “ESTABLISH” insert “DECLARE”; strike “RATE” insert “RATES”
Line 38, after “FOR” insert “PARTS,”; after “LABOR” insert “OR both PARTS AND LABOR”
Line 39, strike “ALL”; strike “COVERING” insert “OR NINETY CONSECUTIVE DAYS OF CUSTOMER PAID SERVICE REPAIR ORDERS FOR WARRANTY-LIKE”
Line 40, strike “DURING THE MONTH” insert “NOT MORE THAN ONE HUNDRED EIGHTY DAYS”; strike “AND” insert “. THE NEW MOTOR VEHICLE DEALER’S RETAIL LABOR RATE SHALL BE DETERMINED BY”
Line 41, after “SALES” insert “CONTAINED IN the SUBMITTED REPAIR ORDERS”; strike “NUMBER OF”; after the second “TOTAL” insert “NUMBER OF”
Line 42, strike “THE RESULTING AVERAGE LABOR RATE IS” insert “THE NEW MOTOR VEHICLE DEALER’S RETAIL RATE FOR PARTS SHALL BE A PERCENTAGE DETERMINED BY DIVIDING THE TOTAL SALES FOR PARTS IN the SUBMITTED REPAIR ORDERS BY THE NEW MOTOR VEHICLE DEALER’S TOTAL COST FOR THOSE PARTS, MINUS ONE, AND THEN MULTIPLIED BY ONE HUNDRED TO PRODUCE A PERCENTAGE. DECLARED RATES SHALL BE”
Line 44, after “AFTER” insert “RECEIVING THE NEW MOTOR VEHICLE DEALER’S”
Line 45, after “RATE” strike remainder of line
Page 2, strike line 1
Line 2, strike “SAME LINE-MAKE VEHICLES” insert “OR RATES ARE INACCURATE OR UNREASONABLE COMPARED TO OTHER SIMILARLY SITUATED SAME LINE MAKE NEW MOTOR VEHICLE DEALERS IN THE STATE”; strike “AVERAGE” insert “NEW MOTOR VEHICLE DEALER’S DECLARED PARTS, LABOR OR both PARTS AND”; strike “RATE” insert “RATES”
Page 2, line 3, after “FOLLOWING” insert “THE MANUFACTURER’S OR DISTRIBUTOR’S RECEIPT OF”; strike “SUBJECT TO THE RIGHT OF” insert “UNLESS”
Line 4, strike “TO REBUT” insert “TIMELY SENDS A REBUTTAL OF”; after the first “RATE” insert “OR RATES TO THE NEW MOTOR VEHICLE DEALER”; after “IF” insert “ANY OF”; strike “RATE IS” insert “RATES ARE”
Line 5, strike “AVERAGE”
Line 6, strike “LABOR” insert “REBUTTED”; strike “BASED ON THE REBUTTAL” insert “OR RATES”; after “AFTER” insert “RECEIVING THE NEW MOTOR VEHICLE DEALER’S”
Line 7, strike “AVERAGE LABOR RATE”
Line 8, strike “THE DEALER” insert “ADJUSTED RATE OR RATES, IT”
Line 12, after “PROTEST” strike remainder of line
Strike lines 13 through 40, insert “if ANY AVAILABLE MANUFACTURER OR DISTRIBUTOR MEDIATION OPPORTUNITY HAS BEEN used AND WAS UNSUCCESSFUL IN REACHING AN AGREEMENT BETWEEN THE PARTIES.”
Reletter to conform
Line 41, after “RATE” insert “OR RATES”; after “A” insert “NEW MOTOR VEHICLE”
Line 42, strike “AND” insert “OR”
Page 3, line 2, after the second “ASSEMBLIES” insert “, IF THE NEW MOTOR VEHICLE DEALER AGREES TO BE COMPENSATED FOR THOSE ASSEMBLIES WITH A HANDLING CHARGE INSTEAD OF A RETAIL PARTS MARKUP”
Strike line 7
Renumber to conform
Line 13, strike “six” insert “TWELVE”
Line 15, after “fraud” insert “, FACTORY BRANCH, DISTRIBUTOR OR”; after “DISTRIBUTOR” strike remainder of line
Strike line 16
Line 17, strike “FRAUDULENT” insert “BRANCH REASONABLY SUSPECTS FRAUD”
Line 20, strike “ALL”
Line 21, strike “FRANCHISOR INTERNAL APPELLATE” insert “ANY AVAILABLE MANUFACTURER OR DISTRIBUTOR MEDIATION”; strike the second “PROCESSES” insert “APPEALS HAVE BEEN EXHAUSTED IF MEDIATION FAILED TO RESULT IN AN AGREEMENT”
Line 27, after “MANUFACTURER” insert “, FACTORY BRANCH, DISTRIBUTOR”
Page 3, line 28, after “DISTRIBUTOR” strike remainder of line
Line 29, strike “motor vehicle dealer is intentionally false or fraudulent” insert “BRANCH REASONABLY SUSPECTS FRAUD”
Line 33, strike “ALL FRANCHISOR INTERNAL APPELLATE” insert “ANY AVAILABLE MANUFACTURER OR DISTRIBUTOR MEDIATION”
Line 34, strike “PROCESSES” insert “APPEALS HAVE BEEN EXHAUSTED IF MEDIATION FAILED TO RESULT IN AN AGREEMENT”
Line 35, after “BY” insert “NEW MOTOR VEHICLE”
Page 4, line 6, strike “AVERAGE MARKUP” insert “RETAIL PARTS RATE”; after the second “THE” insert “WHOLESALE”
Line 7, after the second “THE” insert “WHOLESALE”
Line 10, strike “RATE” insert “RATES”
Line 11, strike “AND” insert “OR”
Line 14, after “A” insert “NEW MOTOR VEHICLE”; after “DECLARE” strike remainder of line
Line 15, strike “AVERAGE LABOR RATE” insert “ANY NEW RETAIL RATE”; strike “TWICE IN ONE CALENDAR YEAR” insert “ONCE IN ANY TWELVE MONTH PERIOD. A MANUFACTURER OR DISTRIBUTOR MAY USE THE REPAIR ORDERS SUBMITTED BY A NEW MOTOR VEHICLE DEALER UNDER SECTION E OF THIS SECTION TO VALIDATE ANY OR ALL OF A NEW MOTOR VEHICLE DEALER’S CURRENT WARRANTY REIMBURSEMENT RATES OR REQUIRE A NEW MOTOR VEHICLE DEALER, NOT MORE THAN ONCE EVERY TWELVE MONTHS, TO SUBMIT REPAIR ORDERS pursuant to THIS SECTION TO VALIDATE THE NEW MOTOR VEHICLE DEALER’S RETAIL RATE OR RATES. IF A MANUFACTURER OR DISTRIBUTOR FINDS THAT ANY OF A NEW MOTOR VEHICLE DEALER’S RETAIL RATES HAVE BEEN DECLINED, THE MANUFACTURER OR DISTRIBUTOR MAY PROSPECTIVELY REDUCE THE RESPECTIVE WARRANTY REIMBURSEMENT RATE”
Strike lines 16 through 27, insert:
“M. if THE NEW MOTOR VEHICLE DEALER HAS OTHERWISE PROPERLY SUBMITTED THE CLAIM pursuant to THE MANUFACTURER’S OR DISTRIBUTOR’S WARRANTY OR INCENTIVE PROGRAM GUIDELINES, A MANUFACTURER OR DISTRIBUTOR MAY NOT DENY A CLAIM BY A NEW MOTOR VEHICLE DEALER FOR REIMBURSEMENT OF ANY WARRANTY PARTS OR SERVICE COMPENSATION OR ANY CONSUMER OR DEALER INCENTIVE COMPENSATION BASED SOLELY ON A NEW MOTOR VEHICLE DEALER’S INCIDENTAL FAILURE TO COMPLY WITH A SPECIFIC CLAIM PROCESSING REQUIREMENT, SUCH AS A CLERICAL ERROR OR MISSING SIGNATURES, THAT DOES NOT PUT INTO QUESTION THE LEGITIMACY OF THE CLAIM. IF A CLAIM IS REJECTED FOR SUCH AN INCIDENTAL REQUIREMENT, A CLERICAL ERROR OR MISSING SIGNATURES, THE NEW MOTOR VEHICLE DEALER MAY CORRECT OR COMPLETE AND RESUBMIT A PREVIOUSLY SUBMITTED WARRANTY OR INCENTIVE CLAIM FOR A PERIOD OF UP TO SIXTY DAYS FOLLOWING THE NEW MOTOR VEHICLE DEALERS RECEIPT OF FIRST NOTICE OF the FAILURE FROM THE MANUFACTURER OR DISTRIBUTOR. a MANUFACTURER OR DISTRIBUTOR is not REQUIRED TO APPROVE ANY SUCH WARRANTY OR INCENTIVE CLAIM IF ALL CLAIM PROCESSING REQUIREMENTS, INCLUDING THE PROVISION OF ALL REQUIRE SIGNATURES, ARE NOT COMPLIED WITH BY THE NEW MOTOR VEHICLE DEALER WITHIN THE TIME PERIODS prescribed by this section.”
Page 5, strike lines 43 and 44
Page 6, strike lines 1 and 2
Page 11, line 9, after the period insert “THIS SUBSECTION does NOT PROHIBIT A MANUFACTURER OR DISTRIBUTOR FROM INCREASING THE WHOLESALE PRICE OF A VEHICLE OR PART IN THE ORDINARY COURSE OF BUSINESS.”
Amend title to conform