1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *sb0990* |
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6 | 6 | | |
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7 | 7 | | SENATE BILL 990 |
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8 | 8 | | I3 5lr2888 |
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9 | 9 | | CF 5lr2532 |
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10 | 10 | | By: Senator Gallion |
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11 | 11 | | Introduced and read first time: January 30, 2025 |
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12 | 12 | | Assigned to: Rules |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Consumer Protection – Agricultural Equipment Warranties 2 |
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19 | 19 | | |
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20 | 20 | | FOR the purpose of requiring, for purposes of making a claim under a warranty for certain 3 |
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21 | 21 | | agricultural equipment, a consumer to provide written notice to certain parties to 4 |
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22 | 22 | | report a nonconformity, defect, or condition occurring in the agricultural equipment; 5 |
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23 | 23 | | requiring a consumer to provide an opportunity for certain parties to correct the 6 |
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24 | 24 | | nonconformity, defect, or condition; requiring certain parties to correct the 7 |
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25 | 25 | | nonconformity, defect, or condition in a certain manner; requiring certain parties to 8 |
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26 | 26 | | provide a consumer with the opportunity to replace agricultural equipment or receive 9 |
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27 | 27 | | a refund under certain circumstances; making a violation of this Act an unfair, 10 |
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28 | 28 | | abusive, or deceptive trade practice that is subject to enforcement and penalties 11 |
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29 | 29 | | under the Maryland Consumer Protection Act; and generally relating to the 12 |
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30 | 30 | | enforcement of warranties for agricultural equipment. 13 |
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31 | 31 | | |
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32 | 32 | | BY repealing and reenacting, with amendments, 14 |
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33 | 33 | | Article – Commercial Law 15 |
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34 | 34 | | Section 13–301(14)(xlii) 16 |
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35 | 35 | | Annotated Code of Maryland 17 |
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36 | 36 | | (2013 Replacement Volume and 2024 Supplement) 18 |
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37 | 37 | | |
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38 | 38 | | BY repealing and reenacting, without amendments, 19 |
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39 | 39 | | Article – Commercial Law 20 |
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40 | 40 | | Section 13–301(14)(xliii) 21 |
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41 | 41 | | Annotated Code of Maryland 22 |
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42 | 42 | | (2013 Replacement Volume and 2024 Supplement) 23 |
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43 | 43 | | |
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44 | 44 | | BY adding to 24 |
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45 | 45 | | Article – Commercial Law 25 |
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46 | 46 | | Section 13–301(14)(xliv); and 14–15A–01 through 14–15A–04 to be under the new 26 |
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47 | 47 | | subtitle “Subtitle 15A. Agricultural Equipment Warranty Enforcement Act” 27 |
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48 | 48 | | Annotated Code of Maryland 28 2 SENATE BILL 990 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | (2013 Replacement Volume and 2024 Supplement) 1 |
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52 | 52 | | |
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53 | 53 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2 |
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54 | 54 | | That the Laws of Maryland read as follows: 3 |
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55 | 55 | | |
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56 | 56 | | Article – Commercial Law 4 |
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57 | 57 | | |
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58 | 58 | | 13–301. 5 |
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59 | 59 | | |
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60 | 60 | | Unfair, abusive, or deceptive trade practices include any: 6 |
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61 | 61 | | |
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62 | 62 | | (14) Violation of a provision of: 7 |
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63 | 63 | | |
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64 | 64 | | (xlii) Section 12–6C–09.1 of the Health Occupations Article; [or] 8 |
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65 | 65 | | |
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66 | 66 | | (xliii) Title 14, Subtitle 48 of this article; or 9 |
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67 | 67 | | |
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68 | 68 | | (XLIV) TITLE 14, SUBTITLE 15A OF THIS ARTICLE; OR 10 |
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69 | 69 | | |
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70 | 70 | | SUBTITLE 15A. AGRICULTURAL EQUIPMENT WARRANTY ENFORCEMENT ACT. 11 |
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71 | 71 | | |
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72 | 72 | | 14–15A–01. 12 |
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73 | 73 | | |
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74 | 74 | | (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 13 |
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75 | 75 | | INDICATED. 14 |
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76 | 76 | | |
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77 | 77 | | (B) “AGRICULTURAL EQUIPMEN T” MEANS ANY SELF –PROPELLED VEHICLE 15 |
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78 | 78 | | DESIGNED PRIMARILY F OR AND USED IN THE O CCUPATION OR BUSINES S OF 16 |
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79 | 79 | | FARMING. 17 |
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80 | 80 | | |
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81 | 81 | | (C) “CONSUMER” MEANS: 18 |
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82 | 82 | | |
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83 | 83 | | (1) THE PURCHASER OF NEW AGRICULTURAL EQUIPME NT OTHER 19 |
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84 | 84 | | THAN FOR PURPOSES OF RESALE; 20 |
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85 | 85 | | |
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86 | 86 | | (2) A PERSON TO WHOM NEW A GRICULTURAL EQUIPMEN T IS 21 |
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87 | 87 | | TRANSFERRED DURING T HE DURATION OF THE W ARRANTY APPLICABLE T O THE 22 |
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88 | 88 | | AGRICULTURAL EQUIPME NT; OR 23 |
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89 | 89 | | |
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90 | 90 | | (3) ANY OTHER PERSON WHO IS ENTITL ED TO ENFORCE THE 24 |
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91 | 91 | | OBLIGATIONS OF THE W ARRANTY. 25 |
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92 | 92 | | |
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93 | 93 | | (D) “MANUFACTURER , FACTORY BRANCH , OR AUTHORIZED DEALER ” 26 |
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94 | 94 | | MEANS A PERSON ENGAG ED IN THE BUSINESS O F MANUFACTURING , ASSEMBLING, 27 |
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95 | 95 | | OR DEALING AGRICULTU RAL EQUIPMENT , AS APPLICABLE. 28 SENATE BILL 990 3 |
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96 | 96 | | |
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97 | 97 | | |
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98 | 98 | | |
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99 | 99 | | (E) “WARRANTY” INCLUDES A WARRANTY AS DESCRIBED IN §§ 2–312 1 |
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100 | 100 | | THROUGH 2–315 OF THIS ARTICLE, AS APPLICABLE. 2 |
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101 | 101 | | |
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102 | 102 | | (F) “WARRANTY PERIOD ” MEANS THE LATER OF : 3 |
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103 | 103 | | |
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104 | 104 | | (1) THE PERIOD OF TIME ST ATED UNDER THE TERMS OF AN EXPRESS 4 |
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105 | 105 | | WRITTEN WARRANTY ; OR 5 |
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106 | 106 | | |
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107 | 107 | | (2) THE FIRST YEAR IMME DIATELY FOLLOWING TH E ORIGINAL DATE 6 |
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108 | 108 | | OF DELIVERY OF THE E QUIPMENT TO THE FIRS T CONSUMER . 7 |
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109 | 109 | | |
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110 | 110 | | 14–15A–02. 8 |
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111 | 111 | | |
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112 | 112 | | (A) (1) (I) IF AGRICULTURAL EQUIP MENT DOES NOT CONFOR M TO ALL 9 |
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113 | 113 | | APPLICABLE WARRANTIE S DURING THE WARRANT Y PERIOD, THE CONSUMER , 10 |
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114 | 114 | | DURING THE WARRANTY PERIOD, SHALL REPORT THE NON CONFORMITY , DEFECT, 11 |
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115 | 115 | | OR CONDITION BY PROV IDING WRITTEN NOTICE TO THE MANUFACTURER OR 12 |
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116 | 116 | | FACTORY BRANCH BY CE RTIFIED MAIL, RETURN RECEIPT REQUE STED. 13 |
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117 | 117 | | |
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118 | 118 | | (II) NOTICE OF THE REQUIRE MENT UNDER SUBPARAGR APH (I) 14 |
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119 | 119 | | OF THIS PARAGRAPH SH ALL BE CONSPI CUOUSLY DISCLOSED TO THE CONSUMER IN 15 |
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120 | 120 | | WRITING AT THE TIME OF SALE OR DELIVERY OF THE AGRICULTURAL EQUIPMENT. 16 |
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121 | 121 | | |
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122 | 122 | | (2) THE CONSUMER SHALL PR OVIDE AN OPPORTUNITY FOR THE 17 |
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123 | 123 | | MANUFACTURER OR FACT ORY BRANCH OR ITS AG ENT TO CORRECT THE 18 |
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124 | 124 | | NONCONFORMITY , DEFECT, OR CONDITION. 19 |
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125 | 125 | | |
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126 | 126 | | (3) THE MANUFACTURER OR F ACTORY BRANCH , ITS AGENT, OR ITS 20 |
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127 | 127 | | AUTHORIZED DEALER SH ALL CORRECT THE NONC ONFORMITY, DEFECT, OR 21 |
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128 | 128 | | CONDITION: 22 |
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129 | 129 | | |
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130 | 130 | | (I) AT NO CHARGE TO THE C ONSUMER REGARDLESS O F 23 |
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131 | 131 | | WHETHER THE REPAIRS ARE MADE AFTER THE E XPIRATION OF THE WAR RANTY 24 |
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132 | 132 | | PERIOD; AND 25 |
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133 | 133 | | |
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134 | 134 | | (II) WITHIN 30 DAYS AFTER THE MANUF ACTURER’S OR 26 |
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135 | 135 | | FACTORY DEALER ’S RECEIPT OF THE CON SUMER’S NOTIFICATION OF TH E 27 |
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136 | 136 | | NONCONFORMITY , DEFECT, OR CONDITION UNDER P ARAGRAPH (1) OF THIS 28 |
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137 | 137 | | SUBSECTION. 29 |
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138 | 138 | | |
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139 | 139 | | (B) (1) SUBJECT TO SUBSECTION (C) OF THIS SECTION , IF, AFTER A 30 |
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140 | 140 | | REASONABLE NUMBER OF ATTEMPTS, THE MANUFACTURER OR FACTORY BRANCH , 31 4 SENATE BILL 990 |
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141 | 141 | | |
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142 | 142 | | |
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143 | 143 | | ITS AGENT, OR ITS AUTHORIZED DE ALER IS UNABLE TO RE PAIR OR CORRECT ANY 1 |
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144 | 144 | | DEFECT OR CONDITION THAT SUBSTANTIALLY I MPAIRS THE USE AND M ARKET 2 |
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145 | 145 | | VALUE OF THE AGRICUL TURAL EQUIPMENT TO THE CONSUMER , THE 3 |
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146 | 146 | | MANUFACTURER OR FACT ORY BRANCH, AT THE OPTION OF THE CONSUMER , SHALL: 4 |
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147 | 147 | | |
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148 | 148 | | (I) REPLACE THE AGRICULTU RAL EQUIPMENT WITH 5 |
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149 | 149 | | COMPARABLE AGRICULTU RAL EQUIPMENT THAT I S ACCEPTABLE TO THE 6 |
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150 | 150 | | CONSUMER ; OR 7 |
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151 | 151 | | |
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152 | 152 | | (II) ACCEPT RETURN OF THE AGRICULTURAL EQUI PMENT 8 |
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153 | 153 | | FROM THE CONSUMER AN D REFUND TO THE CONS UMER THE FULL PURCHA SE PRICE 9 |
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154 | 154 | | INCLUDING ALL LICENS E FEES, REGISTRATION FEES , AND ANY SIMILAR 10 |
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155 | 155 | | GOVERNMENTAL CHARGES , LESS A REASONABLE AL LOWANCE FOR : 11 |
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156 | 156 | | |
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157 | 157 | | 1. THE CONSUMER ’S USE OF THE EQUIPME NT NOT TO 12 |
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158 | 158 | | EXCEED 15% OF THE PURCHASE PRIC E; AND 13 |
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159 | 159 | | |
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160 | 160 | | 2. DAMAGE THAT IS NOT AT TRIBUTABLE TO NORMAL 14 |
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161 | 161 | | WEAR OR A NONCONFORM ITY, DEFECT, OR CONDITION . 15 |
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162 | 162 | | |
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163 | 163 | | (2) THE MANUFACTURER OR F ACTORY BRANCH SHALL MAKE 16 |
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164 | 164 | | REFUNDS UNDER PARAGR APH (1) OF THIS SUBSECTION T O THE CONSUMER AND 17 |
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165 | 165 | | LIENHOLDER , IF ANY, AS THEIR INTERESTS A PPEAR. 18 |
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166 | 166 | | |
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167 | 167 | | (3) IT IS AN AFFIRMATIVE DEFENSE TO A CLAIM U NDER PARAGRAPH 19 |
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168 | 168 | | (1) OF THIS SUBSECTION T HAT THE NONCONFORMIT Y, DEFECT, OR CONDITION: 20 |
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169 | 169 | | |
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170 | 170 | | (I) DOES NOT SUBSTANTIALL Y IMPAIR THE USE AND MARKET 21 |
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171 | 171 | | VALUE OF THE AGRICUL TURAL EQUIPM ENT; OR 22 |
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172 | 172 | | |
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173 | 173 | | (II) IS THE RESULT OF ABUS E, NEGLECT, OR UNAUTHORIZED 23 |
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174 | 174 | | MODIFICATIONS OR ALT ERATIONS OF THE AGRI CULTURAL EQUIPMENT . 24 |
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175 | 175 | | |
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176 | 176 | | (C) (1) IT SHALL BE PRESUMED THAT A REASONABLE NU MBER OF 25 |
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177 | 177 | | ATTEMPTS HAVE BEEN M ADE TO CONFORM AGRIC ULTURAL EQUIPMENT TO THE 26 |
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178 | 178 | | APPLICABLE WARRANTIE S IF: 27 |
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179 | 179 | | |
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180 | 180 | | (I) THE SAME NONCONFORMIT Y, DEFECT, OR CONDITION HAS 28 |
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181 | 181 | | BEEN SUBJECT TO REPA IR FOUR OR MORE TIME S BY THE MANUFACTURE R OR 29 |
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182 | 182 | | FACTORY BRANCH OR IT S AGENTS OR AUTHORIZ ED DEALERS WITHIN TH E 30 |
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183 | 183 | | WARRANTY PERIOD , BUT THE NONCONFORMIT Y, DEFECT, OR CONDITION 31 |
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184 | 184 | | CONTINUES TO EXIST ; OR 32 |
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185 | 185 | | SENATE BILL 990 5 |
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186 | 186 | | |
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187 | 187 | | |
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188 | 188 | | (II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 1 |
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189 | 189 | | AGRICULTURAL EQUIPME NT IS OUT OF SERVICE FOR A CUMULATIVE TOT AL OF 30 2 |
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190 | 190 | | OR MORE CALENDAR DAY S DURING THE WARRANT Y PERIOD DUE TO THE REPAIR OR 3 |
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191 | 191 | | ATTEMPTED REPAIR OF ONE OR MORE NONCONFO RMITIES, DEFECTS, OR 4 |
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192 | 192 | | CONDITIONS. 5 |
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193 | 193 | | |
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194 | 194 | | (2) THE 30–DAY PERIOD DESCRIBED UNDER PARAGRAPH (1)(II) OF 6 |
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195 | 195 | | THIS SUBSECTION DOES NOT INCLUDE A DAY ON WHICH A CONSUMER HAS BEEN 7 |
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196 | 196 | | OFFERED OR PROVIDED BY A MANUFACTURER OR FACTORY BRANCH OR IT S 8 |
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197 | 197 | | AUTHORIZED DEALERS WITH THE USE OF OTHER AGRICULTURA L EQUIPMENT THAT 9 |
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198 | 198 | | PERFORMS THE SAME FU NCTION AS THE CONSUM ER’S AGRICULTURAL EQUIP MENT 10 |
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199 | 199 | | BEING REPAIRED . 11 |
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200 | 200 | | |
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201 | 201 | | (D) THE TERM OF A WARRANT Y, THE WARRANTY PERIOD , AND THE 30–DAY 12 |
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202 | 202 | | OUT–OF–SERVICE PERIOD DESCR IBED UNDER SUBSECTIO N (C)(1)(II) OF THIS 13 |
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203 | 203 | | SECTION SHALL BE EXT ENDED BY ANY TIME DU RING WHICH REPAIR SE RVICES ARE 14 |
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204 | 204 | | NOT AVAILABLE TO THE CONSUMER BY REASON O F WAR, INVASION, STRIKE, OR 15 |
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205 | 205 | | FIRE, FLOOD, OR OTHER NATURAL DIS ASTER. 16 |
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206 | 206 | | |
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207 | 207 | | (E) THE PRESUMPTION DESCR IBED UNDER SUBSECTIO N (C) OF THIS 17 |
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208 | 208 | | SECTION DOES NOT APP LY AGAINST A MANUFAC TURER IF THE MANUFAC TURER HAS 18 |
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209 | 209 | | NOT BEEN PROVIDED BY THE CONSUMER : 19 |
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210 | 210 | | |
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211 | 211 | | (1) PRIOR DIRECT WRITTEN NOTIFICATION IN ACCO RDANCE WITH 20 |
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212 | 212 | | SUBSECTION (A)(1) OF THIS SECTION; AND 21 |
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213 | 213 | | |
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214 | 214 | | (2) THE OPPORTUNITY TO CO RRECT THE ALLEGED 22 |
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215 | 215 | | NONCONFORMITY , DEFECT, OR CONDITION IN ACCO RDANCE WITH SUBSECTI ON 23 |
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216 | 216 | | (A)(2) OF THIS SECTION. 24 |
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217 | 217 | | |
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218 | 218 | | (F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A CONSUMER 25 |
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219 | 219 | | WHO SUFFERS A LOSS B ECAUSE OF A VIOLATIO N OF A PROVISION OF THIS SECTION 26 |
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220 | 220 | | MAY BRING A CIVIL AC TION TO ENFORCE THE PROVIS ION. 27 |
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221 | 221 | | |
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222 | 222 | | (2) AN ACTION BROUGHT UND ER PARAGRAPH (1) OF THIS 28 |
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223 | 223 | | SUBSECTION SHALL BE COMMENCED NOT LATER THAN: 29 |
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224 | 224 | | |
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225 | 225 | | (I) 6 MONTHS AFTER THE EXP IRATION OF THE EXPRE SSLY 30 |
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226 | 226 | | WRITTEN WARRANTY TER M; OR 31 |
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227 | 227 | | |
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228 | 228 | | (II) 24 MONTHS AFTER THE DAT E OF ORIGINAL DELI VERY OF 32 |
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229 | 229 | | THE AGRICULTURAL EQU IPMENT TO THE CONSUM ER. 33 |
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230 | 230 | | 6 SENATE BILL 990 |
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231 | 231 | | |
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232 | 232 | | |
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233 | 233 | | 14–15A–03. 1 |
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234 | 234 | | |
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235 | 235 | | THIS SUBTITLE MAY NOT BE CONSTRUED TO LIMI T OR IMPAIR A RIGHT OR 2 |
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236 | 236 | | REMEDY THAT IS OTHER WISE AVAILABLE TO A CONSUMER UNDER ANY O THER LAW. 3 |
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237 | 237 | | |
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238 | 238 | | 14–15A–04. 4 |
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239 | 239 | | |
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240 | 240 | | (A) A VIOLATION OF THIS SU BTITLE IS: 5 |
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241 | 241 | | |
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242 | 242 | | (1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICE WITHIN 6 |
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243 | 243 | | THE MEANING OF TITLE 13 OF THIS ARTICLE; AND 7 |
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244 | 244 | | |
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245 | 245 | | (2) SUBJECT TO THE PENALT Y AND ENFORCEMENT PR OVISIONS 8 |
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246 | 246 | | CONTAINED IN TITLE 13 OF THIS ARTICLE. 9 |
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247 | 247 | | |
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248 | 248 | | (B) IN ADDITION TO ANY OT HER REMEDIES THAT MA Y BE AVAILABLE UNDER 10 |
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249 | 249 | | THIS SUBTITLE, IF A MANUFACTURER OR FACTORY BRANCH OR IT S AGENT OR 11 |
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250 | 250 | | AUTHORIZED DISTRIBUT OR IS FOUND TO HAVE ACTED IN BAD FAITH , THE COURT 12 |
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251 | 251 | | MAY AWARD THE CONSUM ER DAMAGES OF UP TO $10,000. 13 |
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252 | 252 | | |
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253 | 253 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shal l be construed to 14 |
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254 | 254 | | apply only prospectively and may not be applied or interpreted to have any effect on or 15 |
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255 | 255 | | application to any agricultural equipment, as defined in § 14–15A–01 of the Commercial 16 |
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256 | 256 | | Law Article, as enacted by Section 1 of this Act, purchased before the effective date of this 17 |
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257 | 257 | | Act. 18 |
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258 | 258 | | |
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259 | 259 | | SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 19 |
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260 | 260 | | October 1, 2025. 20 |
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261 | 261 | | |
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