If enacted, SB167 would enhance the legal framework governing the relationship between vehicle manufacturers and dealers, providing clearer guidelines on compensation related to recalls or defects. This bill seeks to prevent manufacturers from evading their responsibility by restricting certain practices, such as altering or removing vehicle part identifiers or passing on costs to dealers. By mandating compensation for dealers in such scenarios, the bill aspires to create a fairer economic environment for both parties involved in the vehicle distribution and service process.
Summary
Senate Bill 167 is introduced with the aim of revising the provisions related to vehicle dealer warranty compensation. The bill mandates that manufacturers which issue campaigns, recalls, service programs, or stop-sale orders, must adequately compensate vehicle dealers according to specific provisions outlined in the state law. This legislation is significant as it addresses the responsibilities of manufacturers towards vehicle dealers in situations involving defects or safety concerns, ensuring that dealers are not financially burdened due to necessary repairs or compensatory actions stemming from such issues.
Contention
The introduction of SB167 may face scrutiny from manufacturers who might consider the compensation requirements to be burdensome. A point of contention could arise over the bill's restrictions on manufacturers regarding cost recovery fees or surcharges, which they might view as limiting their operational flexibility. On the other hand, proponents of the bill argue that it is necessary to safeguard the interests of vehicle dealers, ensuring that they are not financially disadvantaged due to actions taken by manufacturers unrelated to their business practices.
Voting_history
As per the latest voting records on February 16, 2023, SB167 received a unanimous vote with 9 yeas and 0 nays, indicating strong support among the legislators present. However, it was subsequently tabled, which means further discussion or amendments may be needed before it can move forward in the legislative process.
Motor vehicle dealers, warranty service by dealers paid by manufacturers, reasonable compensation to be paid, determination procedures, Sec. 8-20-7 am'd.
Motor vehicle dealers, warranty service by dealers paid by manufacturers, reasonable compensation to be paid, determination procedures, Sec. 8-20-7 am'd.