LCO No. 6317 1 of 2
General Assembly Committee Bill No. 5267
January Session, 2019
LCO No. 6317
Referred to Committee on GENERAL LAW
Introduced by:
(GL)
AN ACT CONCERNING FA IR REIMBURSEMENT TO RET AIL
DEALERS OF POWER EQU IPMENT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 42-351 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective January 1, 2020): 2
(a) Whenever a supplier and a dealer enter into a dealer agreement 3
that provides for consumer warranties, the supplier shall pay any 4
warranty claim made for parts and service not later than thirty days 5
after receipt and approval of such claim by the supplier. The supplier 6
shall approve or disapprove a warranty claim not later than thirty days 7
after receipt of such claim by the supplier. If a warranty claim is not 8
disapproved in writing by the thirtieth day after receipt of such claim 9
by the supplier, it shall be deemed to be approved and payment shall 10
be made by the supplier not later than thirty days thereafter. 11
(b) A supplier that pays a warranty claim pursuant to subsection (a) 12
of this section shall pay the dealer the current net price plus eighteen 13
per cent for any parts and the hourly posted labor rate the dealer 14
charges consumers for nonwarranty repair work for service that has 15
Committee Bill No. 5267
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been previously made known to the supplier. 16
(c) The wholesale price on which a dealer's markup reimbursement 17
is based for any parts used in performance of a warranty, recall or 18
campaign shall not be less than the highest wholesale price listed in the 19
supplier's wholesale price catalogue during the twelve-month period 20
prior to the start of the recall or campaign. 21
(d) A supplier shall not deny a warranty claim made by a dealer 22
pursuant to subsection (a) of this section or charge-back such a claim 23
following a timely audit based solely on the dealer's failure to comply 24
with a claim processing procedure, a clerical error or other 25
administrative technicality, provided the failure to comply does not 26
call into question the legitimacy of the claim. The supplier shall allow 27
the dealer to resubmit a denied claim according to reasonable supplier 28
guidelines not later than thirty days after the initial claim denial or 29
charge-back. 30
This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2020 42-351
Statement of Purpose:
To extend post-sale warranty work reimbursement that is afforded to
the automobile industry to power equipment dealers.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]
Co-Sponsors: REP. ORANGE, 48th Dist.; REP. PETIT, 22nd Dist.
SEN. MCCRORY, 2nd Dist.
H.B. 5267