Maryland 2024 Regular Session

Maryland House Bill HB695 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0695
6	6
7	7	HOUSE BILL 695
8	8	I3 4lr2159
9	9
10	10	By: Delegate Bagnall
11	11	Introduced and read first time: January 25, 2024
12	12	Assigned to: Economic Matters
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Consumer Protection – Notice to Consumers by Manufacturers and Dealers of 2
19	19	Motor Vehicles 3
20	20
21	21	FOR the purpose of requiring a dealer of used motor vehicles sold or leased in the State to 4
22	22	establish procedures under which each consumer, before completing a transaction to 5
23	23	purchase or lease a used motor vehicle from the dealer, is notified and provided with 6
24	24	a copy of certain information pertaining to the condition of the motor vehicle and any 7
25	25	manufacturer adjustment program applicable to the motor vehicle being purchased 8
26	26	or leased by the consumer; altering a certain provision of law to require, without a 9
27	27	request from a consumer, a certain manufacturer of a motor vehicle to provide 10
28	28	certain information to the consumer; and generally relating to consumer protection 11
29	29	and the purchase and lease of motor vehicles. 12
30	30
31	31	BY repealing and reenacting, with amendments, 13
32	32	Article – Commercial Law 14
33	33	Section 14–1401 through 14–1403 15
34	34	Annotated Code of Maryland 16
35	35	(2013 Replacement Volume and 2023 Supplement) 17
36	36
37	37	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
38	38	That the Laws of Maryland read as follows: 19
39	39
40	40	Article – Commercial Law 20
41	41
42	42	14–1401. 21
43	43
44	44	(a) In this subtitle the following words have the meanings indicated. 22
45	45
46	46	(b) (1) “Adjustment program” means a program or policy: 23
47	47
48	48	(i) That expands or extends a warranty beyond its stated limit; or 24 2 HOUSE BILL 695
49	49
50	50
51	51
52	52	(ii) Under which a manufacturer undertakes or offers to pay or 1
53	53	reimburse a consumer, whether directly or indirectly, for all or a part of the cost of repairing 2
54	54	a condition that may substantially affect the durability, reliability, or performance of a 3
55	55	motor vehicle. 4
56	56
57	57	(2) “Adjustment program” does not include: 5
58	58
59	59	(i) Service provided under a safety or emissions related recall 6
60	60	campaign; or 7
61	61
62	62	(ii) Adjustments made by a manufacturer on a case–by–case basis. 8
63	63
64	64	(c) “Consumer” means: 9
65	65
66	66	(1) The purchaser, other than for purposes of resale, of a new OR USED 10
67	67	motor vehicle; 11
68	68
69	69	(2) A lessee of a NEW OR USED motor vehicle; 12
70	70
71	71	(3) A person to whom a new motor vehicle is transferred during the 13
72	72	duration of the warranty applicable to the motor vehicle; or 14
73	73
74	74	(4) A person who is entitled under the terms of the warranty to enforce its 15
75	75	obligations. 16
76	76
77	77	(d) “Dealer” means a person who sells or leases [motor]: 17
78	78
79	79	(1) MOTOR vehicles under a retail agreement with a manufacturer or 18
80	80	distributor, or an agent of a manufacturer or distributor; OR 19
81	81
82	82	(2) USED MOTOR VEHICLES . 20
83	83
84	84	(e) “Lessee” means a consumer who leases a motor vehicle under a written lease 21
85	85	that provides that the lessee is responsible for repairs to the motor vehicle. 22
86	86
87	87	(f) “Manufacturer” means a person who: 23
88	88
89	89	(1) Manufactures or assembles new motor vehicles for sale or distribution; 24
90	90	or 25
91	91
92	92	(2) Is engaged in the business of importing new motor vehicles for sale or 26
93	93	distribution to dealers or through distributors or factory branches. 27
94	94
95	95	(g) “Motor vehicle” means a vehicle that: 28
96	96	HOUSE BILL 695 3
97	97
98	98
99	99	(1) Is used for the private transportation of individuals and their personal 1
100	100	belongings; and 2
101	101
102	102	(2) Has a maximum capacity of 10 individuals, including the driver. 3
103	103
104	104	14–1402. 4
105	105
106	106	(a) (1) A manufacturer of motor vehicles sold in the State shall establish 5
107	107	procedures under which each consumer in the State who owns or leases a motor vehicle to 6
108	108	which an adjustment program of the manufacturer applies: 7
109	109
110	110	[(1)] (I) Is notified of the adjustment program; 8
111	111
112	112	[(2)] (II) [On request, is] IS provided with a copy of any service bulletin 9
113	113	or any other document issued by the manufacturer pertaining to an adjustment program 10
114	114	or to a condition that may substantially affect motor vehicle durability, reliability, or 11
115	115	performance; and 12
116	116
117	117	[(3)] (III) Within 90 days after the establishment of a new adjustment 13
118	118	program, is sent written notice by first–class mail of the terms and conditions of the 14
119	119	adjustment program. 15
120	120
121	121	(2) A DEALER OF USED MOTOR VEHICLES SOLD OR LEASED IN THE 16
122	122	STATE SHALL ESTABLISH PROCEDURES UNDER WHI CH EACH CONSUMER , BEFORE 17
123	123	COMPLETING A TRANSACTION TO PURCHASE OR LEASE A USED MOTOR VEHICLE 18
124	124	FROM THE DEALER , IS NOTIFIED AND PROVIDED WITH A COPY OF: 19
125	125
126	126	(I) ANY SERVICE BULLETIN O R ANY OTHER DOCUMENT ISSUED 20
127	127	BY THE MANUFACTURER OF THE MOTOR VEHICLE BEING PURCHASED OR LEASED BY 21
128	128	THE CONSUMER PERTAINING TO A COND ITION THAT MAY SUBST ANTIALLY AFFECT 22
129	129	MOTOR VEHICLE DURABI LITY, RELIABILITY, OR PERFORMANCE ; AND 23
130	130
131	131	(II) INFORMATION ABOUT ANY ADJUSTMENT PROGRAM O F A 24
132	132	MANUFACTURER PROVIDE D TO THE DEALER UNDE R SUBSECTION (C) OF THIS 25
133	133	SECTION PERTAINING TO THE MOTOR VEHICLE BEING PURCHASED OR LEASED BY 26
134	134	THE CONSUMER . 27
135	135
136	136	(b) (1) A manufacturer of motor vehicles sold in the State shall ensure that the 28
137	137	purchaser of a new motor vehicle receives, at the time of purchase, a written notice 29
138	138	describing the rights and remedies provided under this section. 30
139	139
140	140	(2) The written notice shall be considered sufficient if stated in 31
141	141	substantially the following form: 32
142	142	4 HOUSE BILL 695
143	143
144	144
145	145	“Sometimes (insert manufacturer’s name) offers a special adjustment program to pay all or 1
146	146	part of the cost of certain repairs beyond the terms of the warranty. Check with your dealer 2
147	147	to determine whether any adjustment program is applicable to your motor vehicle.” 3
148	148
149	149	(c) A manufacturer shall provide to its dealers information about each 4
150	150	adjustment program of the manufacturer in a format that facilitates the disclosure of the 5
151	151	terms and conditions of the adjustment program to a consumer seeking repairs at the 6
152	152	dealer’s repair facility. 7
153	153
154	154	(d) (1) A manufacturer that establishes an adjustment program shall 8
155	155	implement procedures to ensure reimbursement of each consumer who: 9
156	156
157	157	(i) Is eligible under the adjustment program; and 10
158	158
159	159	(ii) Incurs expenses for the repair of a condition subject to the 11
160	160	adjustment program before the consumer knows about the adjustment program. 12
161	161
162	162	(2) Reimbursement under this subsection shall be consistent with the 13
163	163	terms and conditions of the particular adjustment program. 14
164	164
165	165	(3) (i) A consumer shall make a claim for reimbursement under this 15
166	166	subsection in writing to the manufacturer within the later of: 16
167	167
168	168	1. 2 years after the date of the consumer’s payment for the 17
169	169	repair of the condition; or 18
170	170
171	171	2. 1 year after the date the manufacturer sends the notice 19
172	172	required under subsection (a)(3) of this section. 20
173	173
174	174	(ii) The manufacturer shall notify the consumer within 21 business 21
175	175	days after receiving a claim for reimbursement whether the claim will be approved or 22
176	176	denied. 23
177	177
178	178	(iii) If the claim is denied, the manufacturer shall state in writing the 24
179	179	specific reasons for the denial. 25
180	180
181	181	14–1403. 26
182	182
183	183	A violation of this subtitle is: 27
184	184
185	185	(1) An unfair, ABUSIVE, or deceptive trade practice within the meaning of 28
186	186	Title 13 of this article; and 29
187	187
188	188	(2) Subject to the enforcement and penalty provisions contained in Title 13 30
189	189	of this article. 31
190	190	HOUSE BILL 695 5
191	191
192	192
193	193	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
194	194	October 1, 2024. 2