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                                                      PRINTER'S NO. 1058

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 950 Session of 1999


        INTRODUCED BY KENNEY, WOGAN, McCALL, LEH, WOJNAROSKI, LAUGHLIN,
           FICHTER, SAINATO, RAYMOND, BUXTON, B. SMITH, TULLI, SEMMEL,
           ADOLPH, ORIE, ROBINSON, GANNON, BAKER, TRELLO, ROHRER,
           SHANER, STABACK, LYNCH, READSHAW, SEYFERT, LaGROTTA, TIGUE,
           ALLEN, ROONEY, FAIRCHILD, MANDERINO, MELIO, VAN HORNE, JAMES,
           PIPPY, PESCI, L. I. COHEN, CLARK, GIGLIOTTI, ROSS, HARHAI,
           DeLUCA, WILLIAMS, HENNESSEY, CIVERA, SERAFINI, HORSEY, RAMOS,
           COLAFELLA, YOUNGBLOOD AND MAHER, MARCH 22, 1999

        REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, MARCH 22, 1999

                                     AN ACT

     1  Requiring disclosure of new motor vehicle damage; and providing
     2     for enforcement.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5  Section 1.  Short title.
     6     This act shall be known and may be cited as the New Motor
     7  Vehicle Damage Disclosure Act.
     8  Section 2.  Definitions.
     9     The following words and phrases when used in this act shall
    10  have the meanings given to them in this section unless the
    11  context clearly indicates otherwise:
    12     "Damage."  Any physical harm sustained or incurred by a
    13  vehicle, whether or not repaired or replaced.
    14     "New motor vehicle."  A motor vehicle, regardless of mileage,
    15  which has never been registered or titled to an ultimate

     1  purchaser in this Commonwealth or any other state or
     2  jurisdiction or which has not been sold, bargained, exchanged or
     3  given away to an ultimate purchaser. A transfer between dealers
     4  for the purpose of resale shall not be considered as a transfer
     5  to an ultimate purchaser.
     6  Section 3.  New motor vehicle damage disclosure.
     7     (a)  Notice to purchaser.--The selling vehicle dealer shall
     8  notify the purchaser of a new vehicle in writing at the time of
     9  sale of any damage or damage repairs incurred by the new
    10  vehicle, regardless of whether or not the damaged portion was
    11  repaired or replaced to its predamaged condition, which exceeds
    12  the greater of $500 or 3% of the manufacturer's suggested retail
    13  price. Damage exceeding the disclosure amount shall be disclosed
    14  by the vehicle dealer when:
    15         (1)  the manufacturer or its agent, in accordance with
    16     the act of December 22, 1983 (P.L.306, No.84), known as the
    17     Board of Vehicles Act, discloses that, at any time after the
    18     manufacturing process is complete, damage occurred or damage
    19     repairs were made;
    20         (2)  the vehicle dealer knows or should know based on
    21     facts indicating that other damage or damage repair exists in
    22     addition to the damage or repairs required to be disclosed
    23     under paragraph (1); or
    24         (3)  the combined total of damage or damage repairs made
    25     under paragraphs (1) and (2) exceeds the greater of $500 or
    26     3% of the manufacturer's suggested retail price.
    27  A vehicle dealer shall not misrepresent or mislead a purchaser
    28  if the purchaser inquires about the existence of damage or
    29  damage repairs made.
    30     (b)  Damage repair cost calculation.--In determining whether
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     1  damage disclosure is required, repair costs shall be calculated
     2  at the vehicle dealer's retail charge on the date the repairs
     3  were made for:
     4         (1)  Parts.
     5         (2)  Labor multiplied by the time taken to make the
     6     repairs as established by a time allowance based on the
     7     standard retail repair practices regularly employed by that
     8     dealer.
     9  All parts shall be replaced only with new, original equipment
    10  manufacturer parts. Replacement of any permanently sealed-glass
    11  window shall be disclosed to the purchaser regardless of the
    12  cost of the replacement window. The value of any permanently
    13  sealed-glass window replacement shall not be included in the
    14  calculation process to determine whether damage disclosure is
    15  required under this act. The value of any portion of a motor
    16  home designed, used or maintained primarily for human habitation
    17  shall not be included in the calculation process to determine
    18  whether damage disclosure is required under this act.
    19     (c)  Form for damage disclosure notice.--If damage disclosure
    20  to the purchaser is required under this act, the purchaser prior
    21  to the time of sale shall be provided with a fully completed
    22  copy of a damage disclosure form which shows the date of the
    23  disclosure and the name and address of the seller, indicates
    24  whether any manufacturer's warranty applicable to the vehicle is
    25  affected by the damage or damage repairs and whether the damage
    26  or damage repairs are covered by any manufacturer's warranty and
    27  contains in immediate proximity to the space provided for the
    28  signature of the purchaser in boldface type of a minimum size of
    29  ten points, a statement in substantially the following form:
    30                New Vehicle Damage Disclosure Notice
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     1  In accordance with the Commonwealth of Pennsylvania's New Motor
     2  Vehicle Damage Disclosure Act and in connection with the
     3  purchase from __________________ (Dealer) of the motor
     4  vehicle described
     5  as follows:
     6  Year____Make___________________Type___________________
     7  Serial No._____________________Stock No.______________
     8  I/we the undersigned, hereby acknowledge that Dealer
     9  has disclosed to me/us before I/we agreed to purchase
    10  the above listed vehicle that the vehicle has been
    11  subjected to postmanufacturing damage as follows:
    12  Damage Description: __________________________________
    13  ______________________________________________________
    14  ______________________________________________________
    15  ______________________________________________________
    16  ______________________________________________________
    17  ______________________________________________________
    18  The above disclosed damage or repaired damage is:
    19  ( ) covered         ( ) not covered        (check one)
    20  by the manufacturer's warranty.
    21  The above disclosed damage or repaired damage has
    22  (check one):
    23  ( ) no effect on the manufacturer's warranty
    24  ( ) the following effect on the manufacturer's warranty
    25  (specify) ____________________________________________
    26  ______________________________________________________
    27  I/we further acknowledge that the listed damage has
    28  been repaired to my/our satisfaction.
    29  Date: ________
    30  ______________________      __________________________
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     1  Signature of Purchaser      Signature of Co-Purchaser
     2  ______________________      __________________________
     3  Printed Name                Printed Name
     4  __________________________________
     5  Signature of Dealer Representative
     6  Section 4.  No rescission of sale.
     7     If disclosure is not required under this act, a purchaser may
     8  not revoke or rescind a sales contract and is not entitled to
     9  other damages or relief under section 8 due solely to the fact
    10  that the vehicle was damaged and repaired prior to the sale.
    11  Section 5.  Other statutory rights reserved.
    12     Nothing in this act shall diminish any other rights or
    13  remedies which the purchaser has under the act of March 28, 1984
    14  (P.L.150, No.28), known as the Automobile Lemon Law, as amended,
    15  reenacted or superseded. If damage is not required to be
    16  disclosed under this act, nothing in this act shall diminish any
    17  rights or remedies which the purchaser has for that damage under
    18  13 Pa.C.S. (relating to commercial code).
    19  Section 6.  Board of Vehicles Act inapplicable.
    20     Section 10(b) of the act of December 22, 1983 (P.L.306,
    21  No.84), known as the Board of Vehicles Act, shall not apply and
    22  is superseded by this act.
    23  Section 7.  Exemptions.
    24     The provisions of this act shall not apply to manufacturers,
    25  distributors or dealers of manufactured housing, or the
    26  following:
    27         (1)  Manufacturers, distributors or dealers of
    28     motorcycles.
    29         (2)  A new motor vehicle, the current ownership document
    30     for which is a certificate of salvage or similar document,
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     1     provided that the purchaser is furnished with a copy of the
     2     certificate of salvage or is otherwise notified of the
     3     salvage or reconstructed nature of the vehicle pursuant to
     4     statute or regulation.
     5  Section 8.  Application of Consumer Protection Law.
     6     A violation of this act shall constitute a violation under
     7  the act of December 17, 1968 (P.L.1224, No.387), known as the
     8  Unfair Trade Practices and Consumer Protection Law, and shall be
     9  subject to the enforcement provisions and private rights of
    10  action contained in that act.
    11  Section 9.  Effective date.
    12     This act shall take effect in 60 days.












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