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2 | 2 | | |
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3 | 3 | | LCO No. 2010 1 of 2 |
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4 | 4 | | |
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5 | 5 | | General Assembly Raised Bill No. 253 |
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6 | 6 | | February Session, 2020 |
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7 | 7 | | LCO No. 2010 |
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8 | 8 | | |
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9 | 9 | | |
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10 | 10 | | Referred to Committee on GENERAL LAW |
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11 | 11 | | |
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12 | 12 | | |
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13 | 13 | | Introduced by: |
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14 | 14 | | (GL) |
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15 | 15 | | |
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16 | 16 | | |
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17 | 17 | | |
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18 | 18 | | |
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19 | 19 | | AN ACT CONCERNING FA IR REIMBURSEMENT TO RETAIL |
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20 | 20 | | DEALERS OF POWER EQU IPMENT. |
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21 | 21 | | Be it enacted by the Senate and House of Representatives in General |
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22 | 22 | | Assembly convened: |
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23 | 23 | | |
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24 | 24 | | Section 1. Section 42-351 of the general statutes is repealed and the 1 |
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25 | 25 | | following is substituted in lieu thereof (Effective January 1, 2021): 2 |
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26 | 26 | | (a) Whenever a supplier and a dealer enter into a dealer agreement 3 |
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27 | 27 | | that provides for consumer warranties, the supplier shall pay any 4 |
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28 | 28 | | warranty claim made for parts and service not later than thirty days 5 |
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29 | 29 | | after receipt and approval of such claim by the supplier. The supplier 6 |
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30 | 30 | | shall approve or disapprove a warranty claim not later than thirty days 7 |
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31 | 31 | | after receipt of such claim by the supplier. If a warranty claim is not 8 |
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32 | 32 | | disapproved in writing by the thirtieth day after receipt of such claim 9 |
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33 | 33 | | by the supplier, it shall be deemed to be approved and payment shall be 10 |
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34 | 34 | | made by the supplier not later than thirty days thereafter. 11 |
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35 | 35 | | (b) A supplier that pays a warranty claim pursuant to subsection (a) 12 |
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36 | 36 | | of this section shall pay the dealer the current net price plus eighteen 13 |
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37 | 37 | | per cent for any parts and the posted hourly labor rate the dealer charges 14 |
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38 | 38 | | consumers for nonwarranty repair work for service that has been 15 |
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39 | 39 | | Raised Bill No. 253 |
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40 | 40 | | |
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41 | 41 | | |
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42 | 42 | | |
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43 | 43 | | LCO No. 2010 2 of 2 |
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44 | 44 | | |
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45 | 45 | | previously made known to the supplier, provided such rate is 16 |
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46 | 46 | | reasonable, as compared to other same brand dealers of similar size in 17 |
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47 | 47 | | the geographic vicinity of the dealer. 18 |
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48 | 48 | | (c) A supplier shall not deny a warranty claim made by a dealer 19 |
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49 | 49 | | pursuant to subsection (a) of this section or charge-back such a claim 20 |
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50 | 50 | | following a timely audit based solely on the dealer's failure to comply 21 |
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51 | 51 | | with a claim processing procedure, a clerical error or other 22 |
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52 | 52 | | administrative technicality, provided the failure to comply does not call 23 |
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53 | 53 | | into question the legitimacy of the claim without allowing the dealer an 24 |
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54 | 54 | | opportunity to resubmit a denied claim according to reasonable 25 |
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55 | 55 | | supplier guidelines not later than thirty days after the initial claim 26 |
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56 | 56 | | denial or charge-back. A reasonable deadline to submit claims or 27 |
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57 | 57 | | supporting materials required by the supplier shall not be considered a 28 |
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58 | 58 | | claim processing procedure or administrative technicality. 29 |
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59 | 59 | | This act shall take effect as follows and shall amend the following |
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60 | 60 | | sections: |
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61 | 61 | | |
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62 | 62 | | Section 1 January 1, 2021 42-351 |
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63 | 63 | | |
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64 | 64 | | Statement of Purpose: |
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65 | 65 | | To ensure fair reimbursement to retail dealers of power equipment |
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66 | 66 | | regarding certain warranty claims. |
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67 | 67 | | |
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68 | 68 | | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except |
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69 | 69 | | that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not |
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70 | 70 | | underlined.] |
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71 | 71 | | |
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