EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0990* SENATE BILL 990 I3 5lr2888 CF 5lr2532 By: Senator Gallion Introduced and read first time: January 30, 2025 Assigned to: Rules A BILL ENTITLED AN ACT concerning 1 Consumer Protection – Agricultural Equipment Warranties 2 FOR the purpose of requiring, for purposes of making a claim under a warranty for certain 3 agricultural equipment, a consumer to provide written notice to certain parties to 4 report a nonconformity, defect, or condition occurring in the agricultural equipment; 5 requiring a consumer to provide an opportunity for certain parties to correct the 6 nonconformity, defect, or condition; requiring certain parties to correct the 7 nonconformity, defect, or condition in a certain manner; requiring certain parties to 8 provide a consumer with the opportunity to replace agricultural equipment or receive 9 a refund under certain circumstances; making a violation of this Act an unfair, 10 abusive, or deceptive trade practice that is subject to enforcement and penalties 11 under the Maryland Consumer Protection Act; and generally relating to the 12 enforcement of warranties for agricultural equipment. 13 BY repealing and reenacting, with amendments, 14 Article – Commercial Law 15 Section 13–301(14)(xlii) 16 Annotated Code of Maryland 17 (2013 Replacement Volume and 2024 Supplement) 18 BY repealing and reenacting, without amendments, 19 Article – Commercial Law 20 Section 13–301(14)(xliii) 21 Annotated Code of Maryland 22 (2013 Replacement Volume and 2024 Supplement) 23 BY adding to 24 Article – Commercial Law 25 Section 13–301(14)(xliv); and 14–15A–01 through 14–15A–04 to be under the new 26 subtitle “Subtitle 15A. Agricultural Equipment Warranty Enforcement Act” 27 Annotated Code of Maryland 28 2 SENATE BILL 990 (2013 Replacement Volume and 2024 Supplement) 1 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2 That the Laws of Maryland read as follows: 3 Article – Commercial Law 4 13–301. 5 Unfair, abusive, or deceptive trade practices include any: 6 (14) Violation of a provision of: 7 (xlii) Section 12–6C–09.1 of the Health Occupations Article; [or] 8 (xliii) Title 14, Subtitle 48 of this article; or 9 (XLIV) TITLE 14, SUBTITLE 15A OF THIS ARTICLE; OR 10 SUBTITLE 15A. AGRICULTURAL EQUIPMENT WARRANTY ENFORCEMENT ACT. 11 14–15A–01. 12 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 13 INDICATED. 14 (B) “AGRICULTURAL EQUIPMEN T” MEANS ANY SELF –PROPELLED VEHICLE 15 DESIGNED PRIMARILY F OR AND USED IN THE O CCUPATION OR BUSINES S OF 16 FARMING. 17 (C) “CONSUMER” MEANS: 18 (1) THE PURCHASER OF NEW AGRICULTURAL EQUIPME NT OTHER 19 THAN FOR PURPOSES OF RESALE; 20 (2) A PERSON TO WHOM NEW A GRICULTURAL EQUIPMEN T IS 21 TRANSFERRED DURING T HE DURATION OF THE W ARRANTY APPLICABLE T O THE 22 AGRICULTURAL EQUIPME NT; OR 23 (3) ANY OTHER PERSON WHO IS ENTITL ED TO ENFORCE THE 24 OBLIGATIONS OF THE W ARRANTY. 25 (D) “MANUFACTURER , FACTORY BRANCH , OR AUTHORIZED DEALER ” 26 MEANS A PERSON ENGAG ED IN THE BUSINESS O F MANUFACTURING , ASSEMBLING, 27 OR DEALING AGRICULTU RAL EQUIPMENT , AS APPLICABLE. 28 SENATE BILL 990 3 (E) “WARRANTY” INCLUDES A WARRANTY AS DESCRIBED IN §§ 2–312 1 THROUGH 2–315 OF THIS ARTICLE, AS APPLICABLE. 2 (F) “WARRANTY PERIOD ” MEANS THE LATER OF : 3 (1) THE PERIOD OF TIME ST ATED UNDER THE TERMS OF AN EXPRESS 4 WRITTEN WARRANTY ; OR 5 (2) THE FIRST YEAR IMME DIATELY FOLLOWING TH E ORIGINAL DATE 6 OF DELIVERY OF THE E QUIPMENT TO THE FIRS T CONSUMER . 7 14–15A–02. 8 (A) (1) (I) IF AGRICULTURAL EQUIP MENT DOES NOT CONFOR M TO ALL 9 APPLICABLE WARRANTIE S DURING THE WARRANT Y PERIOD, THE CONSUMER , 10 DURING THE WARRANTY PERIOD, SHALL REPORT THE NON CONFORMITY , DEFECT, 11 OR CONDITION BY PROV IDING WRITTEN NOTICE TO THE MANUFACTURER OR 12 FACTORY BRANCH BY CE RTIFIED MAIL, RETURN RECEIPT REQUE STED. 13 (II) NOTICE OF THE REQUIRE MENT UNDER SUBPARAGR APH (I) 14 OF THIS PARAGRAPH SH ALL BE CONSPI CUOUSLY DISCLOSED TO THE CONSUMER IN 15 WRITING AT THE TIME OF SALE OR DELIVERY OF THE AGRICULTURAL EQUIPMENT. 16 (2) THE CONSUMER SHALL PR OVIDE AN OPPORTUNITY FOR THE 17 MANUFACTURER OR FACT ORY BRANCH OR ITS AG ENT TO CORRECT THE 18 NONCONFORMITY , DEFECT, OR CONDITION. 19 (3) THE MANUFACTURER OR F ACTORY BRANCH , ITS AGENT, OR ITS 20 AUTHORIZED DEALER SH ALL CORRECT THE NONC ONFORMITY, DEFECT, OR 21 CONDITION: 22 (I) AT NO CHARGE TO THE C ONSUMER REGARDLESS O F 23 WHETHER THE REPAIRS ARE MADE AFTER THE E XPIRATION OF THE WAR RANTY 24 PERIOD; AND 25 (II) WITHIN 30 DAYS AFTER THE MANUF ACTURER’S OR 26 FACTORY DEALER ’S RECEIPT OF THE CON SUMER’S NOTIFICATION OF TH E 27 NONCONFORMITY , DEFECT, OR CONDITION UNDER P ARAGRAPH (1) OF THIS 28 SUBSECTION. 29 (B) (1) SUBJECT TO SUBSECTION (C) OF THIS SECTION , IF, AFTER A 30 REASONABLE NUMBER OF ATTEMPTS, THE MANUFACTURER OR FACTORY BRANCH , 31 4 SENATE BILL 990 ITS AGENT, OR ITS AUTHORIZED DE ALER IS UNABLE TO RE PAIR OR CORRECT ANY 1 DEFECT OR CONDITION THAT SUBSTANTIALLY I MPAIRS THE USE AND M ARKET 2 VALUE OF THE AGRICUL TURAL EQUIPMENT TO THE CONSUMER , THE 3 MANUFACTURER OR FACT ORY BRANCH, AT THE OPTION OF THE CONSUMER , SHALL: 4 (I) REPLACE THE AGRICULTU RAL EQUIPMENT WITH 5 COMPARABLE AGRICULTU RAL EQUIPMENT THAT I S ACCEPTABLE TO THE 6 CONSUMER ; OR 7 (II) ACCEPT RETURN OF THE AGRICULTURAL EQUI PMENT 8 FROM THE CONSUMER AN D REFUND TO THE CONS UMER THE FULL PURCHA SE PRICE 9 INCLUDING ALL LICENS E FEES, REGISTRATION FEES , AND ANY SIMILAR 10 GOVERNMENTAL CHARGES , LESS A REASONABLE AL LOWANCE FOR : 11 1. THE CONSUMER ’S USE OF THE EQUIPME NT NOT TO 12 EXCEED 15% OF THE PURCHASE PRIC E; AND 13 2. DAMAGE THAT IS NOT AT TRIBUTABLE TO NORMAL 14 WEAR OR A NONCONFORM ITY, DEFECT, OR CONDITION . 15 (2) THE MANUFACTURER OR F ACTORY BRANCH SHALL MAKE 16 REFUNDS UNDER PARAGR APH (1) OF THIS SUBSECTION T O THE CONSUMER AND 17 LIENHOLDER , IF ANY, AS THEIR INTERESTS A PPEAR. 18 (3) IT IS AN AFFIRMATIVE DEFENSE TO A CLAIM U NDER PARAGRAPH 19 (1) OF THIS SUBSECTION T HAT THE NONCONFORMIT Y, DEFECT, OR CONDITION: 20 (I) DOES NOT SUBSTANTIALL Y IMPAIR THE USE AND MARKET 21 VALUE OF THE AGRICUL TURAL EQUIPM ENT; OR 22 (II) IS THE RESULT OF ABUS E, NEGLECT, OR UNAUTHORIZED 23 MODIFICATIONS OR ALT ERATIONS OF THE AGRI CULTURAL EQUIPMENT . 24 (C) (1) IT SHALL BE PRESUMED THAT A REASONABLE NU MBER OF 25 ATTEMPTS HAVE BEEN M ADE TO CONFORM AGRIC ULTURAL EQUIPMENT TO THE 26 APPLICABLE WARRANTIE S IF: 27 (I) THE SAME NONCONFORMIT Y, DEFECT, OR CONDITION HAS 28 BEEN SUBJECT TO REPA IR FOUR OR MORE TIME S BY THE MANUFACTURE R OR 29 FACTORY BRANCH OR IT S AGENTS OR AUTHORIZ ED DEALERS WITHIN TH E 30 WARRANTY PERIOD , BUT THE NONCONFORMIT Y, DEFECT, OR CONDITION 31 CONTINUES TO EXIST ; OR 32 SENATE BILL 990 5 (II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 1 AGRICULTURAL EQUIPME NT IS OUT OF SERVICE FOR A CUMULATIVE TOT AL OF 30 2 OR MORE CALENDAR DAY S DURING THE WARRANT Y PERIOD DUE TO THE REPAIR OR 3 ATTEMPTED REPAIR OF ONE OR MORE NONCONFO RMITIES, DEFECTS, OR 4 CONDITIONS. 5 (2) THE 30–DAY PERIOD DESCRIBED UNDER PARAGRAPH (1)(II) OF 6 THIS SUBSECTION DOES NOT INCLUDE A DAY ON WHICH A CONSUMER HAS BEEN 7 OFFERED OR PROVIDED BY A MANUFACTURER OR FACTORY BRANCH OR IT S 8 AUTHORIZED DEALERS WITH THE USE OF OTHER AGRICULTURA L EQUIPMENT THAT 9 PERFORMS THE SAME FU NCTION AS THE CONSUM ER’S AGRICULTURAL EQUIP MENT 10 BEING REPAIRED . 11 (D) THE TERM OF A WARRANT Y, THE WARRANTY PERIOD , AND THE 30–DAY 12 OUT–OF–SERVICE PERIOD DESCR IBED UNDER SUBSECTIO N (C)(1)(II) OF THIS 13 SECTION SHALL BE EXT ENDED BY ANY TIME DU RING WHICH REPAIR SE RVICES ARE 14 NOT AVAILABLE TO THE CONSUMER BY REASON O F WAR, INVASION, STRIKE, OR 15 FIRE, FLOOD, OR OTHER NATURAL DIS ASTER. 16 (E) THE PRESUMPTION DESCR IBED UNDER SUBSECTIO N (C) OF THIS 17 SECTION DOES NOT APP LY AGAINST A MANUFAC TURER IF THE MANUFAC TURER HAS 18 NOT BEEN PROVIDED BY THE CONSUMER : 19 (1) PRIOR DIRECT WRITTEN NOTIFICATION IN ACCO RDANCE WITH 20 SUBSECTION (A)(1) OF THIS SECTION; AND 21 (2) THE OPPORTUNITY TO CO RRECT THE ALLEGED 22 NONCONFORMITY , DEFECT, OR CONDITION IN ACCO RDANCE WITH SUBSECTI ON 23 (A)(2) OF THIS SECTION. 24 (F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A CONSUMER 25 WHO SUFFERS A LOSS B ECAUSE OF A VIOLATIO N OF A PROVISION OF THIS SECTION 26 MAY BRING A CIVIL AC TION TO ENFORCE THE PROVIS ION. 27 (2) AN ACTION BROUGHT UND ER PARAGRAPH (1) OF THIS 28 SUBSECTION SHALL BE COMMENCED NOT LATER THAN: 29 (I) 6 MONTHS AFTER THE EXP IRATION OF THE EXPRE SSLY 30 WRITTEN WARRANTY TER M; OR 31 (II) 24 MONTHS AFTER THE DAT E OF ORIGINAL DELI VERY OF 32 THE AGRICULTURAL EQU IPMENT TO THE CONSUM ER. 33 6 SENATE BILL 990 14–15A–03. 1 THIS SUBTITLE MAY NOT BE CONSTRUED TO LIMI T OR IMPAIR A RIGHT OR 2 REMEDY THAT IS OTHER WISE AVAILABLE TO A CONSUMER UNDER ANY O THER LAW. 3 14–15A–04. 4 (A) A VIOLATION OF THIS SU BTITLE IS: 5 (1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICE WITHIN 6 THE MEANING OF TITLE 13 OF THIS ARTICLE; AND 7 (2) SUBJECT TO THE PENALT Y AND ENFORCEMENT PR OVISIONS 8 CONTAINED IN TITLE 13 OF THIS ARTICLE. 9 (B) IN ADDITION TO ANY OT HER REMEDIES THAT MA Y BE AVAILABLE UNDER 10 THIS SUBTITLE, IF A MANUFACTURER OR FACTORY BRANCH OR IT S AGENT OR 11 AUTHORIZED DISTRIBUT OR IS FOUND TO HAVE ACTED IN BAD FAITH , THE COURT 12 MAY AWARD THE CONSUM ER DAMAGES OF UP TO $10,000. 13 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shal l be construed to 14 apply only prospectively and may not be applied or interpreted to have any effect on or 15 application to any agricultural equipment, as defined in § 14–15A–01 of the Commercial 16 Law Article, as enacted by Section 1 of this Act, purchased before the effective date of this 17 Act. 18 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 19 October 1, 2025. 20