Connecticut 2021 Regular Session

Connecticut Senate Bill SB00264 Compare Versions

Version 1 (Old)

Version 2 (New)

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	3	+	LCO 1326 \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00264-R01-
	4	+	SB.docx
	5	+	1 of 2
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	7	+	General Assembly Raised Bill No. 264
	8	+	January Session, 2021
	9	+	LCO No. 1326
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	11	+
	12	+	Referred to Committee on GENERAL LAW
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	14	+
	15	+	Introduced by:
	16	+	(GL)
1	17
2	18
3	19
4		-	Senate Bill No. 264
5		-
6		-	Public Act No. 21-127
7		-
8		-
9		-	AN ACT CONCERNING REIMBURSEMENT FOR WARRANTY
10		-	CLAIMS TO RETAIL DEALERS OF POWER EQUIPMENT.
	20	+	AN ACT CONCERNING FA IR REIMBURSEMENT TO RETAIL
	21	+	DEALERS OF POWER EQUIPMENT.
11	22		Be it enacted by the Senate and House of Representatives in General
12	23		Assembly convened:
13	24
14		-	Section 1. Section 42-351 of the general statutes is repealed and the
15		-	following is substituted in lieu thereof (Effective January 1, 2022):
16		-	(a) As used in this section, "current net price" means the price listed
17		-	in a supplier's price list or catalog in effect at the time a warranty claim
18		-	is made under this section, less any applicable discounts allowed.
19		-	Whenever a supplier and a dealer enter into a dealer agreement that
20		-	provides for consumer warranties, the supplier shall pay any warranty
21		-	claim made for parts and service not later than thirty days after receipt
22		-	and approval of such claim by the supplier. The supplier shall approve
23		-	or disapprove a warranty claim not later than thirty days after receipt of
24		-	such claim by the supplier. If a warranty claim is not disapproved in
25		-	writing by the thirtieth day after receipt of such claim by the supplier, it
26		-	shall be deemed to be approved and payment shall be made by the
27		-	supplier not later than thirty days thereafter.
28		-	(b) A supplier that pays a warranty claim pursuant to subsection (a)
29		-	of this section shall pay the dealer the current net price plus eighteen
30		-	per cent for any parts and the posted hourly labor rate the dealer charges Senate Bill No. 264
	25	+	Section 1. Section 42-351 of the general statutes is repealed and the 1
	26	+	following is substituted in lieu thereof (Effective January 1, 2022): 2
	27	+	(a) Whenever a supplier and a dealer enter into a dealer agreement 3
	28	+	that provides for consumer warranties, the supplier shall pay any 4
	29	+	warranty claim made for parts and service not later than thirty days 5
	30	+	after receipt and approval of such claim by the supplier. The supplier 6
	31	+	shall approve or disapprove a warranty claim not later than thirty days 7
	32	+	after receipt of such claim by the supplier. If a warranty claim is not 8
	33	+	disapproved in writing by the thirtieth day after receipt of such claim 9
	34	+	by the supplier, it shall be deemed to be approved and payment shall be 10
	35	+	made by the supplier not later than thirty days thereafter. 11
	36	+	(b) A supplier that pays a warranty claim pursuant to subsection (a) 12
	37	+	of this section shall pay the dealer the current net price plus eighteen 13
	38	+	per cent for any parts and the posted hourly labor rate the dealer charges 14 Raised Bill No. 264
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32		-	Public Act No. 21-127 2 of 2
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34		-	consumers for nonwarranty repair work for service that has been
35		-	previously made known to the supplier, provided such rate is
36		-	reasonable, as compared to other same brand dealers of similar size in
37		-	the geographic vicinity of the dealer.
38		-	(c) A supplier who denies a warranty claim made by a dealer
39		-	pursuant to subsection (a) of this section or charges back such a claim
40		-	following a timely audit based solely on the dealer's failure to comply
41		-	with a claim processing procedure, a clerical error or other
42		-	administrative technicality, provided such failure to comply does not
43		-	call into question the legitimacy of the claim, shall allow the dealer an
44		-	opportunity to resubmit such claim according to reasonable supplier
45		-	guidelines not later than thirty days after the initial claim denial or
46		-	charge-back. A reasonable deadline to submit claims or supporting
47		-	materials required by the supplier shall not be considered a claim
48		-	processing procedure or administrative technicality for purposes of this
49		-	subsection.
	41	+	LCO 1326 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00264-
	42	+	R01-SB.docx }
	43	+	2 of 2
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	45	+	consumers for nonwarranty repair work for service that has been 15
	46	+	previously made known to the supplier, provided such rate is 16
	47	+	reasonable, as compared to other same brand dealers of similar size in 17
	48	+	the geographic vicinity of the dealer. 18
	49	+	(c) A supplier shall not deny a warranty claim made by a dealer 19
	50	+	pursuant to subsection (a) of this section or charge-back such a claim 20
	51	+	following a timely audit based solely on the dealer's failure to comply 21
	52	+	with a claim processing procedure, a clerical error or other 22
	53	+	administrative technicality, provided the failure to comply does not call 23
	54	+	into question the legitimacy of the claim without allowing the dealer an 24
	55	+	opportunity to resubmit a denied claim according to reasonable 25
	56	+	supplier guidelines not later than thirty days after the initial claim 26
	57	+	denial or charge-back. A reasonable deadline to submit claims or 27
	58	+	supporting materials required by the supplier shall not be considered a 28
	59	+	claim processing procedure or administrative technicality. 29
	60	+	This act shall take effect as follows and shall amend the following
	61	+	sections:
	62	+
	63	+	Section 1 January 1, 2022 42-351
	64	+
	65	+	GL Joint Favorable
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