EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0695*
HOUSE BILL 695
I3 4lr2159
By: Delegate Bagnall
Introduced and read first time: January 25, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Consumer Protection – Notice to Consumers by Manufacturers and Dealers of 2
Motor Vehicles 3
FOR the purpose of requiring a dealer of used motor vehicles sold or leased in the State to 4
establish procedures under which each consumer, before completing a transaction to 5
purchase or lease a used motor vehicle from the dealer, is notified and provided with 6
a copy of certain information pertaining to the condition of the motor vehicle and any 7
manufacturer adjustment program applicable to the motor vehicle being purchased 8
or leased by the consumer; altering a certain provision of law to require, without a 9
request from a consumer, a certain manufacturer of a motor vehicle to provide 10
certain information to the consumer; and generally relating to consumer protection 11
and the purchase and lease of motor vehicles. 12
BY repealing and reenacting, with amendments, 13
Article – Commercial Law 14
Section 14–1401 through 14–1403 15
Annotated Code of Maryland 16
(2013 Replacement Volume and 2023 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Commercial Law 20
14–1401. 21
(a) In this subtitle the following words have the meanings indicated. 22
(b) (1) “Adjustment program” means a program or policy: 23
(i) That expands or extends a warranty beyond its stated limit; or 24 2 HOUSE BILL 695
(ii) Under which a manufacturer undertakes or offers to pay or 1
reimburse a consumer, whether directly or indirectly, for all or a part of the cost of repairing 2
a condition that may substantially affect the durability, reliability, or performance of a 3
motor vehicle. 4
(2) “Adjustment program” does not include: 5
(i) Service provided under a safety or emissions related recall 6
campaign; or 7
(ii) Adjustments made by a manufacturer on a case–by–case basis. 8
(c) “Consumer” means: 9
(1) The purchaser, other than for purposes of resale, of a new OR USED 10
motor vehicle; 11
(2) A lessee of a NEW OR USED motor vehicle; 12
(3) A person to whom a new motor vehicle is transferred during the 13
duration of the warranty applicable to the motor vehicle; or 14
(4) A person who is entitled under the terms of the warranty to enforce its 15
obligations. 16
(d) “Dealer” means a person who sells or leases [motor]: 17
(1) MOTOR vehicles under a retail agreement with a manufacturer or 18
distributor, or an agent of a manufacturer or distributor; OR 19
(2) USED MOTOR VEHICLES . 20
(e) “Lessee” means a consumer who leases a motor vehicle under a written lease 21
that provides that the lessee is responsible for repairs to the motor vehicle. 22
(f) “Manufacturer” means a person who: 23
(1) Manufactures or assembles new motor vehicles for sale or distribution; 24
or 25
(2) Is engaged in the business of importing new motor vehicles for sale or 26
distribution to dealers or through distributors or factory branches. 27
(g) “Motor vehicle” means a vehicle that: 28
HOUSE BILL 695 3
(1) Is used for the private transportation of individuals and their personal 1
belongings; and 2
(2) Has a maximum capacity of 10 individuals, including the driver. 3
14–1402. 4
(a) (1) A manufacturer of motor vehicles sold in the State shall establish 5
procedures under which each consumer in the State who owns or leases a motor vehicle to 6
which an adjustment program of the manufacturer applies: 7
[(1)] (I) Is notified of the adjustment program; 8
[(2)] (II) [On request, is] IS provided with a copy of any service bulletin 9
or any other document issued by the manufacturer pertaining to an adjustment program 10
or to a condition that may substantially affect motor vehicle durability, reliability, or 11
performance; and 12
[(3)] (III) Within 90 days after the establishment of a new adjustment 13
program, is sent written notice by first–class mail of the terms and conditions of the 14
adjustment program. 15
(2) A DEALER OF USED MOTOR VEHICLES SOLD OR LEASED IN THE 16
STATE SHALL ESTABLISH PROCEDURES UNDER WHI CH EACH CONSUMER , BEFORE 17
COMPLETING A TRANSACTION TO PURCHASE OR LEASE A USED MOTOR VEHICLE 18
FROM THE DEALER , IS NOTIFIED AND PROVIDED WITH A COPY OF: 19
(I) ANY SERVICE BULLETIN O R ANY OTHER DOCUMENT ISSUED 20
BY THE MANUFACTURER OF THE MOTOR VEHICLE BEING PURCHASED OR LEASED BY 21
THE CONSUMER PERTAINING TO A COND ITION THAT MAY SUBST ANTIALLY AFFECT 22
MOTOR VEHICLE DURABI LITY, RELIABILITY, OR PERFORMANCE ; AND 23
(II) INFORMATION ABOUT ANY ADJUSTMENT PROGRAM O F A 24
MANUFACTURER PROVIDE D TO THE DEALER UNDE R SUBSECTION (C) OF THIS 25
SECTION PERTAINING TO THE MOTOR VEHICLE BEING PURCHASED OR LEASED BY 26
THE CONSUMER . 27
(b) (1) A manufacturer of motor vehicles sold in the State shall ensure that the 28
purchaser of a new motor vehicle receives, at the time of purchase, a written notice 29
describing the rights and remedies provided under this section. 30
(2) The written notice shall be considered sufficient if stated in 31
substantially the following form: 32
4 HOUSE BILL 695
“Sometimes (insert manufacturer’s name) offers a special adjustment program to pay all or 1
part of the cost of certain repairs beyond the terms of the warranty. Check with your dealer 2
to determine whether any adjustment program is applicable to your motor vehicle.” 3
(c) A manufacturer shall provide to its dealers information about each 4
adjustment program of the manufacturer in a format that facilitates the disclosure of the 5
terms and conditions of the adjustment program to a consumer seeking repairs at the 6
dealer’s repair facility. 7
(d) (1) A manufacturer that establishes an adjustment program shall 8
implement procedures to ensure reimbursement of each consumer who: 9
(i) Is eligible under the adjustment program; and 10
(ii) Incurs expenses for the repair of a condition subject to the 11
adjustment program before the consumer knows about the adjustment program. 12
(2) Reimbursement under this subsection shall be consistent with the 13
terms and conditions of the particular adjustment program. 14
(3) (i) A consumer shall make a claim for reimbursement under this 15
subsection in writing to the manufacturer within the later of: 16
1. 2 years after the date of the consumer’s payment for the 17
repair of the condition; or 18
2. 1 year after the date the manufacturer sends the notice 19
required under subsection (a)(3) of this section. 20
(ii) The manufacturer shall notify the consumer within 21 business 21
days after receiving a claim for reimbursement whether the claim will be approved or 22
denied. 23
(iii) If the claim is denied, the manufacturer shall state in writing the 24
specific reasons for the denial. 25
14–1403. 26
A violation of this subtitle is: 27
(1) An unfair, ABUSIVE, or deceptive trade practice within the meaning of 28
Title 13 of this article; and 29
(2) Subject to the enforcement and penalty provisions contained in Title 13 30
of this article. 31
HOUSE BILL 695 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2024. 2