Connecticut 2020 Regular Session

Connecticut Senate Bill SB00253 Compare Versions

Only one version of the bill is available at this time.
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55 General Assembly Raised Bill No. 253
66 February Session, 2020
77 LCO No. 2010
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1010 Referred to Committee on GENERAL LAW
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1313 Introduced by:
1414 (GL)
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1919 AN ACT CONCERNING FA IR REIMBURSEMENT TO RETAIL
2020 DEALERS OF POWER EQU IPMENT.
2121 Be it enacted by the Senate and House of Representatives in General
2222 Assembly convened:
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2424 Section 1. Section 42-351 of the general statutes is repealed and the 1
2525 following is substituted in lieu thereof (Effective January 1, 2021): 2
2626 (a) Whenever a supplier and a dealer enter into a dealer agreement 3
2727 that provides for consumer warranties, the supplier shall pay any 4
2828 warranty claim made for parts and service not later than thirty days 5
2929 after receipt and approval of such claim by the supplier. The supplier 6
3030 shall approve or disapprove a warranty claim not later than thirty days 7
3131 after receipt of such claim by the supplier. If a warranty claim is not 8
3232 disapproved in writing by the thirtieth day after receipt of such claim 9
3333 by the supplier, it shall be deemed to be approved and payment shall be 10
3434 made by the supplier not later than thirty days thereafter. 11
3535 (b) A supplier that pays a warranty claim pursuant to subsection (a) 12
3636 of this section shall pay the dealer the current net price plus eighteen 13
3737 per cent for any parts and the posted hourly labor rate the dealer charges 14
3838 consumers for nonwarranty repair work for service that has been 15
3939 Raised Bill No. 253
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4545 previously made known to the supplier, provided such rate is 16
4646 reasonable, as compared to other same brand dealers of similar size in 17
4747 the geographic vicinity of the dealer. 18
4848 (c) A supplier shall not deny a warranty claim made by a dealer 19
4949 pursuant to subsection (a) of this section or charge-back such a claim 20
5050 following a timely audit based solely on the dealer's failure to comply 21
5151 with a claim processing procedure, a clerical error or other 22
5252 administrative technicality, provided the failure to comply does not call 23
5353 into question the legitimacy of the claim without allowing the dealer an 24
5454 opportunity to resubmit a denied claim according to reasonable 25
5555 supplier guidelines not later than thirty days after the initial claim 26
5656 denial or charge-back. A reasonable deadline to submit claims or 27
5757 supporting materials required by the supplier shall not be considered a 28
5858 claim processing procedure or administrative technicality. 29
5959 This act shall take effect as follows and shall amend the following
6060 sections:
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6262 Section 1 January 1, 2021 42-351
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6464 Statement of Purpose:
6565 To ensure fair reimbursement to retail dealers of power equipment
6666 regarding certain warranty claims.
6767
6868 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
6969 that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
7070 underlined.]
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