Regular Session 2019-2020 Senate Bill 0533 P.N. 0567

PRINTER'S NO. 567

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

533

Session of

2019

INTRODUCED BY STEFANO, BROWNE, BREWSTER AND BARTOLOTTA,

APRIL 5, 2019

REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,

APRIL 5, 2019

AN ACT

Amending the act of March 28, 1984 (P.L.150, No.28), entitled,

"An act relating to the rights of purchasers and lessees of

defective new motor vehicles," further providing for title,

for short title, for definitions, for disclosure, for repair

obligations, for manufacturer's duty for refund or

replacement, for presumption of a reasonable number of

attempts, for itemized statement required, for civil cause of

action, for informal dispute settlement procedure and for

resale of returned motor vehicle.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The title and sections 1, 2, 3, 4, 5, 6, 7, 8, 9

and 10 of the act of March 28, 1984 (P.L.150, No.28), known as

the Automobile Lemon Law, are amended to read:

AN ACT

Relating to the rights of purchasers and lessees of defective

new motor vehicles and road construction or maintenance

equipment.

Section 1. Short title.

This act shall be known and may be cited as the Automobile

and Road Construction and Maintenance Equipment Lemon Law.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

["Dealer" or "motor vehicle dealer."] "Dealer." A person in

the business of buying, selling, leasing or exchanging vehicles

or road equipment.

"Department." The Department of Transportation of the

Commonwealth.

"Manufacturer." Any person engaged in the business of

constructing or assembling new and unused motor vehicles or road

equipment or engaged in the business of importing new and unused

motor vehicles or road equipment into the United States for the

purpose of selling or distributing new and unused motor vehicles

[to motor vehicle] or road equipment to dealers in this

Commonwealth.

"Manufacturer's express warranty" or "warranty." The written

warranty of the manufacturer of a new [automobile] motor vehicle

or road equipment of its condition and fitness for use,

including any terms or conditions precedent to the enforcement

of obligations under the warranty.

["New motor] "Motor vehicle." Any new and unused self-

propelled, motorized conveyance driven upon public roads,

streets or highways which is designed to transport not more than

15 persons, which was purchased or leased and is registered in

the Commonwealth or purchased or leased elsewhere and registered

for the first time in the Commonwealth and is used, leased or

bought for use primarily for personal, family or household

purposes, including a vehicle used by a manufacturer or dealer

as a demonstrator or dealer car prior to its sale. The term does

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not include motorcycles, motor homes or off-road vehicles.

"Nonconformity." A defect or condition which substantially

impairs the use, value or safety of a [new] motor vehicle or

road equipment and does not conform to the manufacturer's

express warranty.

"Purchaser." A person, or his successors or assigns, who has

obtained possession or ownership of a [new] motor vehicle by

lease, transfer or purchase or who has entered into an agreement

or contract for the lease or purchase of a [new] motor vehicle

which is used, leased or bought for use primarily for personal,

family or household purposes. The term also includes a person,

including the Commonwealth or a municipality, that has obtained

possession or ownership of road equipment by lease, transfer or

purchase or that has entered into an agreement or contract for

the lease or purchase of road equipment.

"Road equipment." New and unused equipment used to construct

or maintain roads, streets, highways, berms, shoulders and

rights-of-way abutting a road, street or highway owned and

maintained by the Commonwealth or a municipality.

Section 3. Disclosure.

The Attorney General shall prepare and publish in the

Pennsylvania Bulletin a statement which explains a purchaser's

rights under this law. Manufacturers shall provide to each

purchaser at the time of original purchase of a [new] motor

vehicle or road equipment a written statement containing a copy

of the Attorney General's statement and a listing of zone

offices, with addresses and phone numbers, which can be

contacted by the purchaser for the purpose of securing the

remedies provided for in this act.

Section 4. Repair obligations.

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(a) Repairs required.--The manufacturer of a [new] motor

vehicle or road equipment sold or leased and registered in the

Commonwealth shall repair or correct, at no cost to the

purchaser, a nonconformity which substantially impairs the use,

value or safety of [said] the motor vehicle [which] or road

equipment. The repair or correction may occur within a period of

one year following the actual delivery of the motor vehicle or

road equipment to the purchaser, within the first 12,000 miles

of use or during the term of the warranty, whichever may first

occur.

(b) Delivery of vehicle.--It shall be the duty of the

purchaser to deliver the nonconforming motor vehicle or road

equipment to the manufacturer's authorized service and repair

facility within the Commonwealth, unless, due to reasons of size

and weight or method of attachment or method of installation or

nature of the nonconformity, such delivery cannot reasonably be

accomplished. Should the purchaser be unable to effect return of

the nonconforming motor vehicle or road equipment, he shall

notify the manufacturer or its authorized service and repair

facility. Written notice of nonconformity to the manufacturer or

its authorized service and repair facility shall constitute

return of the motor vehicle or road equipment when the purchaser

is unable to return the motor vehicle or road equipment due to

the nonconformity. Upon receipt of such notice of nonconformity,

the manufacturer shall, at its option, service or repair the

motor vehicle or road equipment at the location of nonconformity

or pick up the motor vehicle or road equipment for service and

repair or arrange for transporting the motor vehicle or road

equipment to its authorized service and repair facility. All

costs of transporting the motor vehicle or road equipment when

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the purchaser is unable to effect return, due to nonconformity,

shall be at the manufacturer's expense.

Section 5. Manufacturer's duty for refund or replacement.

If the manufacturer fails to repair or correct a

nonconformity after a reasonable number of attempts, the

manufacturer shall, at the option of the purchaser, replace the

motor vehicle or road equipment with a comparable motor vehicle

or road equipment of equal value or accept return of the motor

vehicle or road equipment from the purchaser and refund to the

purchaser the full purchase price or lease price, including all

collateral charges, less a reasonable allowance for the

purchaser's use of the motor vehicle not exceeding 10¢ per mile

driven or 10% of the purchase price or lease price of the motor

vehicle, whichever is less[.], and for road equipment the full

purchase price or lease price, including all collateral charges,

less a reasonable allowance for the purchaser's use of road

equipment not exceeding 10% of the purchase price or lease price

of the road equipment, whichever is less. Refunds shall be made

to the purchaser and lienholder, if any, as their interests may

appear. A reasonable allowance for use shall be that amount

directly attributable to use by the purchaser prior to his first

report of the nonconformity to the manufacturer. In the event

the consumer elects a refund, payment shall be made within 30

days of such election. A consumer shall not be entitled to a

refund or replacement if the nonconformity does not

substantially impair the use, value or safety of the vehicle or

the nonconformity is the result of abuse, neglect or

modification or alteration of the motor vehicle or road

equipment by the purchaser.

Section 6. Presumption of a reasonable number of attempts.

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(a) General rule.--It shall be presumed that a reasonable

number of attempts have been undertaken to repair or correct a

nonconformity if:

(1) the same nonconformity has been subject to repair

three times by the manufacturer, its agents or authorized

dealers and the nonconformity still exists; or

(2) the motor vehicle or road equipment is out-of-

service by reason of any nonconformity for a cumulative total

of 30 or more calendar days.

(b) Time period extension.--

(1) The minimum number of calendar days provided for in

subsection (a)(2) shall be extended by a period of not more

than 30 additional calendar days if the repair cannot be

completed by the manufacturer, its agent or authorized dealer

by reason of war, act of terrorism, civil unrest, fire, flood

or natural disaster.

(2) The minimum number of calendar days provided for in

paragraph (1) may be extended for not more than 90 additional

calendar days if the manufacturer files a sworn affidavit

with the Office of Attorney General stating that repair could

not be completed because of one or more of the reasons

described in paragraph (1).

(3) Paragraphs (1) and (2) shall apply only if the

manufacturer, its agent or authorized dealer lends a motor

vehicle or road equipment to the owner at no charge during

the period of time under paragraphs (1) and (2),

respectively, that the owner's motor vehicle or road

equipment is with the manufacturer, its agent or authorized

dealer for repair.

Section 7. Itemized statement required.

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The manufacturer or dealer shall provide to the purchaser

each time the purchaser's motor vehicle or road equipment is

returned from being serviced or repaired a fully itemized

statement indicating all work performed on [said] the motor

vehicle or road equipment, including, but not limited to, parts

and labor. It shall be the duty of a dealer to notify the

manufacturer of the existence of a nonconformity within seven

days of the delivery by a purchaser of a motor vehicle or road

equipment subject to a nonconformity when it is delivered to the

same dealer for the second time for repair of the same

nonconformity. The notification shall be by certified mail,

return receipt requested.

Section 8. Civil cause of action.

Any purchaser of a [new] motor vehicle or road equipment who

suffers any loss due to nonconformity of [such] the motor

vehicle or road equipment as a result of the manufacturer's

failure to comply with this act may bring a civil action in a

court of common pleas and, in addition to other relief, shall be

entitled to recover reasonable attorneys' fees and all court

costs.

Section 9. Informal dispute settlement procedure.

If the manufacturer has established an informal dispute

settlement procedure which complies with the provisions of 16

CFR Pt. 703, as from time to time amended, the provisions of

section 8 shall not apply to any purchaser who has not first

resorted to such procedure as it relates to a remedy for defects

or conditions affecting the substantial use, value or safety of

the motor vehicle or road equipment. The informal dispute

settlement procedure shall not be binding on the purchaser and,

in lieu of such settlement, the purchaser may pursue a remedy

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under section 8.

Section 10. Resale of returned motor vehicle or road equipment.

(a) [Vehicles] Motor vehicles or road equipment may not be

resold, transferred or leased at retail or wholesale.--If a

motor vehicle or road equipment has been repurchased under the

provisions of this act or a similar statute of another state, it

may not be resold, transferred or leased in this State unless:

(1) The manufacturer provides for the motor vehicle the

same express warranty it provided to the original purchaser,

except that the term of the warranty need only last for

12,000 miles or 12 months after the date of resale, transfer

or lease, whichever is earlier[.], and for road equipment the

same express warranty it provided to the original purchaser,

except that the term of the warranty need only last for 12

months after the date of resale, transfer or lease, whichever

is earlier.

(2) The manufacturer provides the purchaser, lessee or

transferee with a written statement on a separate piece of

paper, in ten point all capital type, in substantially the

following form:

"IMPORTANT: THIS MOTOR VEHICLE OR ROAD EQUIPMENT WAS

REPURCHASED BY THE MANUFACTURER BECAUSE IT DID NOT

CONFORM TO THE MANUFACTURER'S EXPRESS WARRANTY AND THE

NONCONFORMITY WAS NOT CURED WITHIN A REASONABLE TIME AS

PROVIDED BY PENNSYLVANIA LAW."

(3) The motor vehicle or road equipment dealer, lessor

or transferor clearly and conspicuously discloses the

manufacturer's written notification prior to the resale or

lease of the repurchased motor vehicle or road equipment.

(4) The motor vehicle or road equipment dealer, lessor

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or transferor obtains a signed receipt certifying in a

conspicuous and understandable manner that the written

statement required under this subsection has been provided.

Access to the receipt shall be maintained for four years. The

Attorney General shall approve the form and content of the

disclosure statement supplied by the manufacturer.

(5) The manufacturer, dealer, lessor or transferor

applies for and receives the designation of a branded title

or a certificate of origin from the department.

(6) The department shall update its records and issue a

title with a designation indicating that the motor vehicle

was repurchased under the provisions of this act. The

department shall forward to subsequent purchasers or

lienholders, in accordance with 75 Pa.C.S. §§ 1107 (relating

to delivery of certificate of title) and 1132.1 (relating to

perfection of security interest in a vehicle), a certificate

of title which indicates that the motor vehicle was branded

under the provisions of this act. The department shall

determine the exact form and content of the title brand.

(7) The department shall update its records and issue a

certificate of origin with a designation indicating that the

road equipment was repurchased under the provisions of this

act. The department shall forward to subsequent purchasers or

lienholders a certificate of origin that states that the road

equipment was branded under the provisions of this act. The

department shall determine the exact form and content of the

origin brand.

The provisions of this section apply to the resold, transferred

or leased motor vehicle or road equipment for the full term of

the warranty required under this subsection. Failure of the

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manufacturer, dealer, lessor or transferor to notify its

immediate purchaser of the requirements of this section subjects

the manufacturer, dealer, lessor or transferor to pay to the

Commonwealth a civil penalty of $2,000 per violation [and, at].

At the option of the purchaser, [to] the manufacturer, dealer,

lessor or transferor shall replace the motor vehicle with a

comparable motor vehicle of equal value or accept return of the

motor vehicle from the purchaser and refund to the purchaser the

full purchase price, including all collateral charges, less a

reasonable allowance for the purchaser's use of the motor

vehicle not exceeding 10¢ per mile driven or 10% of the purchase

price of the motor vehicle, whichever is less[.], or replace the

road equipment with a comparable piece of road equipment of

equal value or accept return of the road equipment from the

purchaser and refund to the purchaser the full purchase price,

including all collateral charges, less a reasonable allowance

for the purchaser's use of the road equipment not exceeding 10%

of the purchase price of the road equipment.

(b) Returned vehicles not to be resold.--Notwithstanding the

provisions of subsection (a), if a [new] motor vehicle or road

equipment has been returned under the provisions of this act or

a similar statute of another state because of a nonconformity

resulting in a complete failure of the braking or steering

system of the motor vehicle or road equipment likely to cause

death or serious bodily injury if the motor vehicle was driven,

or the road equipment was operated, the motor vehicle or road

equipment may not be resold in this Commonwealth.

agreement entered into by a purchaser that waives, limits or

disclaims the rights set forth in this act is void as contrary

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to public policy. Where applicable, the rights set forth in this

act shall extend to a subsequent purchaser, lessee or transferee

of the motor vehicle or road equipment.

Section 2. This act shall take effect in 60 days.

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