A04066 Summary:
| BILL NO | A04066B |
| SAME AS | SAME AS S05085-C |
| SPONSOR | Burgos |
| COSPNSR | Sillitti, Gallagher, Fahy, Braunstein, Clark, Fall, Septimo, Mamdani, Rivera, Durso, Miller, Lunsford, Darling, Santabarbara, DeStefano, Giglio JA, Smith, Brown K, Ramos, Lavine, McMahon, Jacobson, Shimsky, Cunningham, Shrestha, Rosenthal L, Thiele, De Los Santos, Meeks, McDonough, Williams, Colton, Joyner, Dinowitz, Hevesi, Gunther, Burke, Tapia, Cook, Stern, Walker, Weprin, Benedetto, Simone, Jean-Pierre, Norris, Jensen, Beephan, Epstein, Slater, Gray, Conrad, McDonald, Seawright, Burdick, Bores, Brabenec, Hyndman, Zaccaro, Aubry, Stirpe, Reilly, Dilan, Solages, Sayegh, Cruz, Carroll, Tague, Alvarez, Lupardo, Levenberg, Flood, Gonzalez-Rojas, Morinello, Bronson, Woerner, Zebrowski, Brown E, Reyes, Ardila, Gallahan, Simpson, Gandolfo, Bendett, McGowan, Steck, Wallace, Maher, Walsh, Raga, Lee, Kelles, Mitaynes, Forrest, Kim, Gibbs, Davila |
| MLTSPNSR | Simon |
| Amd §465, V & T L | |
| Requires motor vehicle dealer franchisors to fully compensate franchised motor vehicle dealers for warranty service agreements. | |
A04066 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
TITLE OF BILL: An act to amend the vehicle and traffic law, in relation to requiring motor vehicle dealer franchisors to fully compensate franchised motor vehicle dealers for warranty service agreements PURPOSE OR GENERAL IDEA OF BILL: This bill amends the Vehicle and Traffic Law to change the way dealers are reimbursed by manufacturers; provides that manufacturers must pay a dealer reasonable compensation for warranty work based off the amount a retail customer pays the dealer for the same services; applies to warranty work and factory recalls; establishes a manner of determining effective labor rates; prOvides additional' guarantees clarifying when warranty work is covered. SUMMARY OF PROVISIONS: Section 1 amends the Vehicle and Traffic Law to require that all vehicle franchisors adequately fulfill any warranty agreement, including recalls, voluntary stop-sell repairs, extended warranties, and similar items. Warranties will now cover all diagnostic work, as well as ensure adequate reasonable compensation for the work performed. The bill would ensure. adequate reasonable compensation for all warranty work and ensures no franchisor shall reject a vehicle brought in when warranty work should have been honored due to lack of availability of parts. Section 2 contains the effective date. JUSTIFICATION: The licensing and supervision of motor vehicle dealers is necessary for the protection of consumers. This legislation ensures that the regu- lation of motor vehicle manufacturers, distributors, wholesalers, facto- ry branches, distributor branches and representatives will enable compliance with manufacturer warranties so that consumers can keep their motor vehicles properly functioning and safe. PRIOR LEGISLATIVE HISTORY: New bill FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None EFFECTIVE DATE: This act shall take effect immediately.