Senate Bill No. 264
Public Act No. 21-127
AN ACT CONCERNING REIMBURSEMENT FOR WARRANTY
CLAIMS TO RETAIL DEALERS OF POWER EQUIPMENT.
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 Section 42-351 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective January 1, 2022):
(a) As used in this section, "current net price" means the price listed
in a supplier's price list or catalog in effect at the time a warranty claim
is made under this section, less any applicable discounts allowed.
Whenever a supplier and a dealer enter into a dealer agreement that
provides for consumer warranties, the supplier shall pay any warranty
claim made for parts and service not later than thirty days after receipt
and approval of such claim by the supplier. The supplier shall approve
or disapprove a warranty claim not later than thirty days after receipt of
such claim by the supplier. If a warranty claim is not disapproved in
writing by the thirtieth day after receipt of such claim by the supplier, it
shall be deemed to be approved and payment shall be made by the
supplier not later than thirty days thereafter.
(b) A supplier that pays a warranty claim pursuant to subsection (a)
of this section shall pay the dealer the current net price plus eighteen
per cent for any parts and the posted hourly labor rate the dealer charges Senate Bill No. 264
Public Act No. 21-127 2 of 2
consumers for nonwarranty repair work for service that has been
previously made known to the supplier, provided such rate is
reasonable, as compared to other same brand dealers of similar size in
the geographic vicinity of the dealer.
(c) A supplier who denies a warranty claim made by a dealer
pursuant to subsection (a) of this section or charges back such a claim
following a timely audit based solely on the dealer's failure to comply
with a claim processing procedure, a clerical error or other
administrative technicality, provided such failure to comply does not
call into question the legitimacy of the claim, shall allow the dealer an
opportunity to resubmit such claim according to reasonable supplier
guidelines not later than thirty days after the initial claim denial or
charge-back. A reasonable deadline to submit claims or supporting
materials required by the supplier shall not be considered a claim
processing procedure or administrative technicality for purposes of this
subsection.