Old | New | Differences | |
---|---|---|---|
1 | 1 | ||
2 | 2 | ||
3 | 3 | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W. | |
4 | 4 | [Brackets] indicate matter deleted from existing law. | |
5 | 5 | Underlining indicates amendments to bill. | |
6 | 6 | Strike out indicates matter stricken from the bill by amendment or deleted from the law by | |
7 | 7 | amendment. | |
8 | - | Italics indicate opposite chamber/conference committee amendments. | |
9 | 8 | *hb1046* | |
10 | 9 | ||
11 | 10 | HOUSE BILL 1046 | |
12 | - | I3, R4 (5lr3167) | |
13 | - | ENROLLED BILL | |
14 | - | — Economic Matters/Finance — | |
15 | - | Introduced by Delegate Bagnall | |
11 | + | I3, R4 5lr3167 | |
16 | 12 | ||
17 | - | Read and Examined by Proofreaders: | |
18 | - | ||
19 | - | _______________________________________________ | |
20 | - | Proofreader. | |
21 | - | _______________________________________________ | |
22 | - | Proofreader. | |
23 | - | ||
24 | - | Sealed with the Great Seal and presented to the Governor, for his approval this | |
25 | - | ||
26 | - | _______ day of _______________ at _________________ _______ o’clock, ________M. | |
27 | - | ||
28 | - | ______________________________________________ | |
29 | - | Speaker. | |
13 | + | By: Delegate Bagnall | |
14 | + | Introduced and read first time: February 5, 2025 | |
15 | + | Assigned to: Economic Matters | |
16 | + | Committee Report: Favorable with amendments | |
17 | + | House action: Adopted | |
18 | + | Read second time: March 6, 2025 | |
30 | 19 | ||
31 | 20 | CHAPTER ______ | |
32 | 21 | ||
33 | 22 | AN ACT concerning 1 | |
34 | 23 | ||
35 | 24 | Insurance Protections for Vehicle Service Contracts 2 | |
36 | 25 | Mechanical Repair Contracts – Technical Service Bulletins 3 | |
37 | 26 | ||
38 | 27 | FOR the purpose of establishing that a licensed vehicle dealer, an obligor, or an agent that 4 | |
39 | 28 | sells mechanical repair contracts for motor vehicles may not make deceptive or 5 | |
40 | 29 | misleading statements regarding the mechanical repair contract and shall ensure 6 | |
41 | 30 | that testimonials of any of their endorsers are truthful, accurate, and not deceptive 7 | |
42 | 31 | prohibiting a mechanical repair contract from containing a provision precluding 8 | |
43 | 32 | coverage for service to a motor vehicle for issues identified in a technical service 9 | |
44 | 33 | bulletin and prohibiting the denial of a service claim for such an issue by certain 10 | |
45 | 34 | persons; and generally relating to technical service bulletins and mechanical repair 11 | |
46 | 35 | contracts for motor vehicles. 12 | |
47 | 36 | ||
48 | 37 | BY repealing and reenacting, without amendments, 13 | |
49 | - | Article – Commercial Law 14 2 HOUSE BILL 1046 | |
38 | + | Article – Commercial Law 14 | |
39 | + | Section 14–404 15 | |
40 | + | Annotated Code of Maryland 16 | |
41 | + | (2013 Replacement Volume and 2024 Supplement) 17 | |
42 | + | ||
43 | + | BY repealing and reenacting, without amendments, 18 | |
44 | + | Article – Transportation 19 | |
45 | + | Section 15–311.2(a) and (e) through (h) 20 | |
46 | + | Annotated Code of Maryland 21 | |
47 | + | (2020 Replacement Volume and 2024 Supplement) 22 | |
48 | + | 2 HOUSE BILL 1046 | |
50 | 49 | ||
51 | 50 | ||
52 | - | Section 14–404 1 | |
53 | - | Annotated Code of Maryland 2 | |
54 | - | (2013 Replacement Volume and 2024 Supplement) 3 | |
51 | + | BY repealing and reenacting, with amendments, 1 | |
52 | + | Article – Transportation 2 | |
53 | + | Section 15–311.2(i) 3 | |
54 | + | Annotated Code of Maryland 4 | |
55 | + | (2020 Replacement Volume and 2024 Supplement) 5 | |
55 | 56 | ||
56 | - | BY | |
57 | - | Article – | |
58 | - | Section | |
59 | - | Annotated Code of Maryland | |
60 | - | ( | |
57 | + | BY adding to 6 | |
58 | + | Article – Commercial Law 7 | |
59 | + | Section 14–404.1 8 | |
60 | + | Annotated Code of Maryland 9 | |
61 | + | (2013 Replacement Volume and 2024 Supplement) 10 | |
61 | 62 | ||
62 | - | BY repealing and reenacting, with amendments, 9 | |
63 | - | Article – Transportation 10 | |
64 | - | Section 15–311.2(i) 11 | |
65 | - | Annotated Code of Maryland 12 | |
66 | - | (2020 Replacement Volume and 2024 Supplement) 13 | |
63 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11 | |
64 | + | That the Laws of Maryland read as follows: 12 | |
67 | 65 | ||
68 | - | BY adding to 14 | |
69 | - | Article – Commercial Law 15 | |
70 | - | Section 14–404.1 16 | |
71 | - | Annotated Code of Maryland 17 | |
72 | - | (2013 Replacement Volume and 2024 Supplement) 18 | |
66 | + | Article – Commercial Law 13 | |
73 | 67 | ||
74 | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19 | |
75 | - | That the Laws of Maryland read as follows: 20 | |
68 | + | 14–404. 14 | |
76 | 69 | ||
77 | - | Article – Commercial Law 21 | |
70 | + | (a) (1) A guarantor shall fulfill the guarantor’s guaranty according to its 15 | |
71 | + | terms: 16 | |
78 | 72 | ||
79 | - | ||
73 | + | (i) Within a reasonable time; and 17 | |
80 | 74 | ||
81 | - | ( | |
82 | - | ||
75 | + | (ii) For the stated period of the guaranty or, if no period is stated, for 18 | |
76 | + | a reasonable period of time. 19 | |
83 | 77 | ||
84 | - | (i) Within a reasonable time; and 25 | |
78 | + | (2) A provider shall fulfill the obligations under the service contract 20 | |
79 | + | according to its terms: 21 | |
85 | 80 | ||
86 | - | ( | |
87 | - | a reasonable | |
81 | + | (i) At or within the period stated in the service contract, or if no 22 | |
82 | + | period is stated, within a reasonable time; and 23 | |
88 | 83 | ||
89 | - | (2) A provider shall fulfill the obligations under the service contract 28 | |
90 | - | according to its terms: 29 | |
84 | + | (ii) For the stated duration of the service contract. 24 | |
91 | 85 | ||
92 | - | (i) | |
93 | - | ||
86 | + | (b) (1) (i) A guaranty is extended automatically when a guarantor fails to 25 | |
87 | + | repair successfully a malfunctioning or defective product within the guaranty period. 26 | |
94 | 88 | ||
95 | - | (ii) For the stated duration of the service contract. 32 | |
89 | + | (ii) The guaranty does not terminate until the consumer product 27 | |
90 | + | successfully performs its intended function for the remaining period of the guaranty plus a 28 | |
91 | + | period equal to the time of repair. 29 | |
96 | 92 | ||
97 | - | (b) (1) (i) A guaranty is extended automatically when a guarantor fails to 33 | |
98 | - | repair successfully a malfunctioning or defective product within the guaranty period. 34 HOUSE BILL 1046 3 | |
93 | + | (2) (i) A service contract is extended automatically when the provider 30 | |
94 | + | fails to perform the services under the service contract. 31 | |
95 | + | ||
96 | + | (ii) The service contract does not terminate until the services are 32 | |
97 | + | provided in accordance with the terms of the service contract. 33 HOUSE BILL 1046 3 | |
99 | 98 | ||
100 | 99 | ||
101 | 100 | ||
102 | - | (ii) The guaranty does not terminate until the consumer product 1 | |
103 | - | successfully performs its intended function for the remaining period of the guaranty plus a 2 | |
104 | - | period equal to the time of repair. 3 | |
101 | + | (c) If a guaranty fails to disclose the information required by § 14–403 of this 1 | |
102 | + | subtitle, the guarantor shall, without charge and within a reasonable period of time: 2 | |
105 | 103 | ||
106 | - | (2) (i) A service contract is extended automatically when the provider 4 | |
107 | - | fails to perform the services under the service contract. 5 | |
104 | + | (1) Repair a malfunctioning or defective consumer product; or 3 | |
108 | 105 | ||
109 | - | ( | |
110 | - | ||
106 | + | (2) If repair is not commercially practicable or cannot be timely made, 4 | |
107 | + | replace the malfunctioning or defective consumer product. 5 | |
111 | 108 | ||
112 | - | (c) If a guaranty fails to disclose the information required by § 14–403 of this 8 | |
113 | - | subtitle, the guarantor shall, without charge and within a reasonable period of time: 9 | |
109 | + | (d) (1) If a guarantor is unable to fulfill the terms of the guaranty within 10 6 | |
110 | + | days of the tender or delivery of a consumer product to the guarantor, the guarantor shall 7 | |
111 | + | provide on request of the person guaranteed a brief written explanation of the reasons for 8 | |
112 | + | the delay. 9 | |
114 | 113 | ||
115 | - | (1) Repair a malfunctioning or defective consumer product; or 10 | |
114 | + | (2) If a provider is unable to fulfill the terms of the service contract within 10 | |
115 | + | 10 days after the date on which the provider is required to perform obligations under the 11 | |
116 | + | service contract, the provider shall provide on request of the person guaranteed a brief 12 | |
117 | + | written explanation of the reasons for the delay. 13 | |
116 | 118 | ||
117 | - | (2) If repair is not commercially practicable or cannot be timely made, 11 | |
118 | - | replace the malfunctioning or defective consumer product. 12 | |
119 | + | Article – Transportation 14 | |
119 | 120 | ||
120 | - | (d) (1) If a guarantor is unable to fulfill the terms of the guaranty within 10 13 | |
121 | - | days of the tender or delivery of a consumer product to the guarantor, the guarantor shall 14 | |
122 | - | provide on request of the person guaranteed a brief written explanation of the reasons for 15 | |
123 | - | the delay. 16 | |
121 | + | 15–311.2. 15 | |
124 | 122 | ||
125 | - | (2) If a provider is unable to fulfill the terms of the service contract within 17 | |
126 | - | 10 days after the date on which the provider is required to perform obligations under the 18 | |
127 | - | service contract, the provider shall provide on request of the person guaranteed a brief 19 | |
128 | - | written explanation of the reasons for the delay. 20 | |
123 | + | (a) (1) In this section the following words have the meanings indicated. 16 | |
129 | 124 | ||
130 | - | Article – Transportation 21 | |
125 | + | (2) “Agent” means a business entity that is authorized by an obligor or a 17 | |
126 | + | licensed vehicle dealer to sell a mechanical repair contract. 18 | |
131 | 127 | ||
132 | - | 15–311.2. 22 | |
128 | + | (3) (i) “Mechanical repair contract” means any agreement or contract 19 | |
129 | + | sold by a licensed vehicle dealer, an obligor, or an agent under which the obligor agrees to 20 | |
130 | + | perform over a fixed period of time, for a specific duration, and for a specific identifiable 21 | |
131 | + | price, provided that the purchase of the contract is optional to the purchaser, any of the 22 | |
132 | + | following services: 23 | |
133 | 133 | ||
134 | - | (a) (1) In this section the following words have the meanings indicated. 23 | |
134 | + | 1. The repair, replacement, or maintenance of a motor 24 | |
135 | + | vehicle, or the indemnification for the repair, replacement, or maintenance of a motor 25 | |
136 | + | vehicle, for the operational or structural failure of the motor vehicle due to a defect in 26 | |
137 | + | materials, workmanship, or normal wear and tear, with or without additional provisions 27 | |
138 | + | for incidental payment of indemnity for services including towing, rental and emergency 28 | |
139 | + | road service, and road hazard protection; 29 | |
135 | 140 | ||
136 | - | (2) “Agent” means a business entity that is authorized by an obligor or a 24 | |
137 | - | licensed vehicle dealer to sell a mechanical repair contract. 25 | |
138 | - | ||
139 | - | (3) (i) “Mechanical repair contract” means any agreement or contract 26 | |
140 | - | sold by a licensed vehicle dealer, an obligor, or an agent under which the obligor agrees to 27 | |
141 | - | perform over a fixed period of time, for a specific duration, and for a specific identifiable 28 | |
142 | - | price, provided that the purchase of the contract is optional to the purchaser, any of the 29 | |
143 | - | following services: 30 | |
144 | - | ||
145 | - | 1. The repair, replacement, or maintenance of a motor 31 | |
146 | - | vehicle, or the indemnification for the repair, replacement, or maintenance of a motor 32 | |
147 | - | vehicle, for the operational or structural failure of the motor vehicle due to a defect in 33 4 HOUSE BILL 1046 | |
141 | + | 2. The repair, replacement, or maintenance of a motor 30 | |
142 | + | vehicle for the operational or structural failure of one or more parts or systems of the motor 31 | |
143 | + | vehicle brought about by the failure of an additive product to perform as represented; 32 | |
144 | + | 4 HOUSE BILL 1046 | |
148 | 145 | ||
149 | 146 | ||
150 | - | ||
151 | - | ||
152 | - | ||
147 | + | 3. The repair or replacement of tires or wheels on a motor 1 | |
148 | + | vehicle damaged as a result of coming into contact with road hazards, including potholes, 2 | |
149 | + | rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps; 3 | |
153 | 150 | ||
154 | - | 2. The repair, replacement, or maintenance of a motor 4 | |
155 | - | vehicle for the operational or structural failure of one or more parts or systems of the motor 5 | |
156 | - | vehicle brought about by the failure of an additive product to perform as represented; 6 | |
151 | + | 4. The removal and repair of dents, dings, or creases on a 4 | |
152 | + | motor vehicle using the process of paintless dent removal; 5 | |
157 | 153 | ||
158 | - | 3. The repair or replacement of tires or wheels on a motor 7 | |
159 | - | vehicle damaged as a result of coming into contact with road hazards, including potholes, 8 | |
160 | - | rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps; 9 | |
154 | + | 5. The repair of chips or cracks in, or the replacement of, 6 | |
155 | + | motor vehicle windshields as a result of damage caused by road hazards; 7 | |
161 | 156 | ||
162 | - | | |
163 | - | ||
157 | + | 6. The replacement of a motor vehicle key or key fob if the 8 | |
158 | + | key or key fob becomes inoperable or is lost or stolen; or 9 | |
164 | 159 | ||
165 | - | | |
166 | - | ||
160 | + | 7. Other services or products that may be approved by the 10 | |
161 | + | Insurance Commissioner if consistent with the provisions of this section. 11 | |
167 | 162 | ||
168 | - | | |
169 | - | ||
163 | + | (ii) “Mechanical repair contract” includes extended warranties and 12 | |
164 | + | extended service contracts. 13 | |
170 | 165 | ||
171 | - | 7. Other services or products that may be approved by the 16 | |
172 | - | Insurance Commissioner if consistent with the provisions of this section. 17 | |
166 | + | (iii) “Mechanical repair contract” does not include: 14 | |
173 | 167 | ||
174 | - | | |
175 | - | ||
168 | + | 1. Warranties under the Magnuson–Moss Warranty Act, 15 15 | |
169 | + | U.S.C. § 2301, et seq.; 16 | |
176 | 170 | ||
177 | - | | |
171 | + | 2. Contracts or agreements for regular maintenance only; or 17 | |
178 | 172 | ||
179 | - | | |
180 | - | ||
173 | + | 3. An agreement between a motor club, as defined in § 18 | |
174 | + | 26–101 of the Insurance Article, and a member or subscriber of the motor club. 19 | |
181 | 175 | ||
182 | - | 2. Contracts or agreements for regular maintenance only; or 23 | |
176 | + | (4) (i) “Obligor” means the person specified in a mechanical repair 20 | |
177 | + | contract that is contractually obligated to perform the services set forth in the mechanical 21 | |
178 | + | repair contract. 22 | |
183 | 179 | ||
184 | - | | |
185 | - | ||
180 | + | (ii) “Obligor” does not include an insurer that provides insurance 23 | |
181 | + | coverage in accordance with subsection (b) of this section. 24 | |
186 | 182 | ||
187 | - | (4) (i) “Obligor” means the person specified in a mechanical repair 26 | |
188 | - | contract that is contractually obligated to perform the services set forth in the mechanical 27 | |
189 | - | repair contract. 28 | |
183 | + | (e) A mechanical repair contract shall be offered in addition to any express 25 | |
184 | + | warranty originally included as part of the contract for sale of a new motor vehicle. 26 | |
190 | 185 | ||
191 | - | ( | |
192 | - | ||
186 | + | (f) A mechanical repair contract shall clearly and conspicuously set forth the date 27 | |
187 | + | when the warranty begins. 28 | |
193 | 188 | ||
194 | - | (e) A mechanical repair contract shall be offered in addition to any express 31 | |
195 | - | warranty originally included as part of the contract for sale of a new motor vehicle. 32 | |
189 | + | (g) A mechanical repair contract shall clearly and conspicuously set forth the date 29 | |
190 | + | or the odometer reading at which the warranty expires and the name and address of the 30 | |
191 | + | insurer issuing the policy of insurance as described in subsection (b) of this section. 31 | |
196 | 192 | HOUSE BILL 1046 5 | |
197 | 193 | ||
198 | 194 | ||
199 | - | ( | |
200 | - | ||
195 | + | (h) The repair of a malfunction or defect covered under a mechanical repair 1 | |
196 | + | contract shall include the cost of the teardown and diagnosing the malfunction or defect. 2 | |
201 | 197 | ||
202 | - | ( | |
203 | - | ||
204 | - | ||
198 | + | (i) (1) The provisions of the Maryland Consumer Products Guaranty Act, Title 3 | |
199 | + | 14, Subtitle 4 of the Commercial Law Article, apply to a mechanical repair contract sold in 4 | |
200 | + | the State. 5 | |
205 | 201 | ||
206 | - | (h) The repair of a malfunction or defect covered under a mechanical repair 6 | |
207 | - | contract shall include the cost of the teardown and diagnosing the malfunction or defect. 7 | |
202 | + | (2) IN ADDITION TO THE RE QUIREMENTS FOR LICEN SED VEHICLE 6 | |
203 | + | DEALERS, OBLIGORS, AND AGENTS ESTABLISH ED UNDER § 14–404 OF THE 7 | |
204 | + | COMMERCIAL LAW ARTICLE, A LICENSED VEHICLE D EALER, AN OBLIGOR, OR AN 8 | |
205 | + | AGENT: 9 | |
208 | 206 | ||
209 | - | (i) (1) The provisions of the Maryland Consumer Products Guaranty Act, Title 8 | |
210 | - | 14, Subtitle 4 of the Commercial Law Article, apply to a mechanical repair contract sold in 9 | |
211 | - | the State. 10 | |
207 | + | (I) MAY NOT MAKE DECEPTIV E OR MISLEADING STAT EMENTS 10 | |
208 | + | REGARDING A MECHANIC AL REPAIR CONTRACT ; AND 11 | |
212 | 209 | ||
213 | - | (2) IN ADDITION TO THE RE QUIREMENTS FOR LICEN SED VEHICLE 11 | |
214 | - | DEALERS, OBLIGORS, AND AGENTS ESTABLISH ED UNDER § 14–404 OF THE 12 | |
215 | - | COMMERCIAL LAW ARTICLE, A LICENSED VEHICLE D EALER, AN OBLIGOR, OR AN 13 | |
216 | - | AGENT: 14 | |
210 | + | (II) SHALL ENSURE THAT TES TIMONIALS OF ANY OF THEIR 12 | |
211 | + | ENDORSERS ARE TRUTHF UL, ACCURATE, AND NOT DECEPTIVE . 13 | |
217 | 212 | ||
218 | - | (I) MAY NOT MAKE DECEPTIV E OR MISLEADING STAT EMENTS 15 | |
219 | - | REGARDING A MECHANIC AL REPAIR CONTRACT ; AND 16 | |
213 | + | 14–404.1. 14 | |
220 | 214 | ||
221 | - | (II) SHALL ENSURE THAT TES TIMONIALS OF ANY OF THEIR 17 | |
222 | - | ENDORSERS ARE TRUTHF UL, ACCURATE, AND NOT DECEPTIVE . 18 | |
215 | + | (A) A MECHANICAL REPAIR CO NTRACT UNDER § 15–311.2 OF THE 15 | |
216 | + | TRANSPORTATION ARTICLE MAY NOT CONTA IN A PROVISION PRECL UDING 16 | |
217 | + | COVERAGE FOR AN ISSU E WITH A MOTOR VEHIC LE IDENTIFIED IN A T ECHNICAL 17 | |
218 | + | SERVICE BULLETIN . 18 | |
223 | 219 | ||
224 | - | 14–404.1. 19 | |
220 | + | (B) A GUARANTOR OR PROVIDER MAY NOT DENY A MECHANICAL RE PAIR 19 | |
221 | + | CONTRACT CLAIM BECAU SE THE DIAGNOSED ISS UE WITH THE MOTOR VE HICLE FOR 20 | |
222 | + | WHICH THE CLAIM WAS MADE WAS IDENTIFIED IN A TECHNICAL SERVI CE BULLETIN. 21 | |
225 | 223 | ||
226 | - | (A) A MECHANICAL REPAIR CO NTRACT UNDER § 15–311.2 OF THE 20 | |
227 | - | TRANSPORTATION ARTICLE MAY NOT CONTA IN A PROVISION PRECL UDING 21 | |
228 | - | COVERAGE SOLELY FOR AN ISSUE WITH A MOTOR VEHICLE IDENTI FIED IN A 22 | |
229 | - | TECHNICAL SERVICE BU LLETIN. 23 | |
224 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take ef fect 22 | |
225 | + | October 1, 2025. 23 | |
230 | 226 | ||
231 | - | (B) A GUARANTOR OR PROVIDE R MAY NOT DENY A MEC HANICAL REPAIR 24 | |
232 | - | CONTRACT CLAIM SOLELY BECAUSE THE DIAGNOSE D ISSUE WITH THE MOT OR 25 | |
233 | - | VEHICLE FOR WHICH TH E CLAIM WAS MADE WAS IDENTIFIED IN A TECH NICAL 26 | |
234 | - | SERVICE BULLETIN . 27 | |
235 | 227 | ||
236 | - | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28 | |
237 | - | October 1, 2025. 29 | |
228 | + | ||
229 | + | ||
230 | + | Approved: | |
231 | + | ________________________________________________________________________________ | |
232 | + | Governor. | |
233 | + | ________________________________________________________________________________ | |
234 | + | Speaker of the House of Delegates. | |
235 | + | ________________________________________________________________________________ | |
236 | + | President of the Senate. |