S0764B1829A09028 VDL:EJH 07/17/18 #90 A09028
AMENDMENTS TO SENATE BILL NO. 764
Sponsor: SENATOR GORDNER
Printer's No. 1829
Amend Bill, page 1, line 11, by inserting after "audits,"
for vehicle recalls,
Amend Bill, page 19, lines 17 through 20, by striking out all
of said lines and inserting
Section 7. Sections 6, 7, 8, 9(a)(4) and (e)(3)(ii) of the
act are amended and section 9 is amended by adding a subsection
to read:
Amend Bill, page 24, by inserting between lines 6 and 7
Section 7.1. Section 9.1 of the act, added June 28, 2018,
(P.L., No.59), is amended to read:
Section [9.1] 307.1. Vehicle recalls.
(a) General rule.--A manufacturer shall compensate its new
vehicle dealers for all labor and parts required by the
manufacturer to perform recall repairs. Compensation for recall
repairs shall be in the same manner as warranty parts and labor
compensation under section [9] 307. If parts or a remedy are not
reasonably available to perform a recall service or repair on a
used vehicle held for sale by a new vehicle dealer of the same
line-make within 30 days of the manufacturer issuing the initial
notice of recall, and the manufacturer has issued a stop-sale
order or a do-not-drive order on the vehicle, the manufacturer
shall compensate the dealer at a prorated rate of at least 1.5%
of the value of the vehicle per month, beginning on the date
that is 30 days after the date on which the stop-sale or do-not-
drive order was provided to the dealer, until the earlier of the
date the recall or remedy parts are made available or the date
the dealer sells, trades or otherwise disposes of the affected
used vehicle. The following shall apply:
(1) The value of a used vehicle shall be the average
trade-in value for used vehicles as indicated in an
independent third-party guide for the year, make, model and
mileage of the recalled vehicle at the time of the
announcement of the stop-sale order or the do-not-drive
order.
(2) This section shall only apply to used vehicles
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subject to safety or emissions recalls pursuant to and
recalled in accordance with Federal law and regulations and
where a stop-sale order or a do-not-drive order has been
issued. Further, this section shall only apply to new vehicle
dealers holding used vehicles for sale that are a line-make
that the dealer is franchised to sell or on which the dealer
is authorized to perform recall repairs:
(i) in inventory at the time the stop-sale or do-
not-drive order was issued; or
(ii) which were taken into the used vehicle
inventory of the dealer as a lease return vehicle or
consumer trade-in incident to the purchase of a new
vehicle from the dealer after the stop-sale or do-not-
drive order was issued.
(3) Nothing in this section shall require a manufacturer
to provide total compensation to a dealer which would exceed
the total average trade-in value of the affected used motor
vehicle as originally determined under paragraph (1).
(b) Violation.--It is a violation of this section for a
manufacturer to reduce the amount of compensation otherwise owed
to a new vehicle dealer because the new vehicle dealer has
submitted a claim for reimbursement under this section or was
otherwise compensated for a vehicle subject to a recall where a
stop-sale order or a do-not-drive order has been issued. This
subsection applies regardless of whether the reduction in the
amount of compensation owed to a new vehicle dealer is through a
chargeback, removal from an incentive program, reduction in
amount owed under an incentive program or any other means.
(c) Procedure.--A reimbursement claim made by new vehicle
dealers under this section for recall remedies or repairs, or
for compensation where no part or repair is reasonably available
and the used vehicle is subject to a stop-sale order or a do-
not-drive order, shall be subject to the same limitations and
requirements as a warranty reimbursement claim made under
section [9] 307. A claim shall be either approved or disapproved
within 30 days after the claim is submitted to the manufacturer
in the manner and on the forms the manufacturer reasonably
prescribes. A claim shall be paid within 30 days of approval of
the claim by the manufacturer. A claim not specifically
disapproved in writing within 30 days after the manufacturer
receives a submitted claim shall be deemed to be approved.
(d) Alternative compensation.--As an alternative to the
compensation provided for under subsection (a):
(1) a manufacturer may compensate its new vehicle
dealers under a national recall compensation program if the
compensation under the program is equal to or greater than
that provided under subsection (a); or
(2) the manufacturer and dealer otherwise agree to equal
or greater compensation than that provided under subsection
(a).
(e) Exclusive remedy.--Any compensation provided to a new
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vehicle dealer pursuant to this section is exclusive and may not
be combined with any other Federal or State recall compensation
remedy.
(f) Disclosure.--
(1) A new or used vehicle dealer shall disclose in
writing to used vehicle retail purchasers at the time of sale
the existence of any open, unremedied recalls. By providing
to the used vehicle retail purchaser a report obtained from
the publicly accessible Internet website safercar.gov, or a
successor website, based on a vehicle identification number
search, the dealer shall be deemed to have complied with the
disclosure requirement under this subsection. For the purpose
of this subsection, failure to provide disclosures to
multiple vehicle retail purchasers at the time of sale in
violation of this subsection constitutes a single offense
with a maximum fine of $1,000 under section [28(a)] 328(a).
(2) Nothing in this subsection shall be construed to
limit any civil actions or remedies available in statute or
common law.
Section 7.2. Sections 10 and 11 of the act are amended to
read:
Amend Bill, page 27, by inserting between lines 17 and 18
Section 7.3. Section 12 of the act, amended June 28, 2018
(P.L., No.59), is amended to read:
Amend Bill, page 32, line 8, by inserting after "facilities"
before a date that is ten years after the date of the
construction of the facility or the alteration or remodeling
at that location was completed and
Amend Bill, page 32, line 12, by inserting after
"conditions."
This paragraph shall not apply if the expansion,
construction or significant modification is necessary to
comply with a health or safety law or to comply with a
technology requirement, which is necessary to sell or service
a vehicle that the new vehicle dealer is licensed by the
manufacturer to sell or service. This section shall apply to
any successor dealer provided the dealer has been designated
and approved by the manufacturer in the franchise agreement
and the construction, alteration or remodeling substantially
complied with the manufacturer's brand image standards or
plans that the manufacturer provided at the time the
construction, alteration or remodeling was completed. Nothing
in this paragraph shall prohibit a manufacturer from:
(i) Continuing a facility improvement program that
is in effect as of the effective date of this
subparagraph with more than one new vehicle dealer in
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this Commonwealth or to renewing or modifying the
facility improvement program.
(ii) Providing lump sum or regularly scheduled
payments to assist a new vehicle dealer in making a
facility improvement, including construction, alteration
or remodeling or installing signage or an image element.
(iii) Providing reimbursement to a new vehicle
dealer on reasonable, written terms for a portion of the
new vehicle dealer's cost of making a facility
improvement, including construction, alteration or
remodeling, the purchase of goods, building materials or
services or installing signage or an image element.
Amend Bill, page 46, by inserting between lines 17 and 18
Section 7.4. Sections 12.1, 13, 14, 15, 16, 17, 18, 19, 20
and 21 of the act are amended to read:
Amend Bill, page 68, by inserting between lines 13 and 14
Section 7.5. Section 22 of the act, amended June 28, 2018
(P.L., No.59), is amended to read:
Amend Bill, page 69, line 16, by inserting after "regulation"
, except as provided in subsection (a.1)
Amend Bill, page 69, by inserting between lines 16 and 17
(a.1) Temporary permit for new vehicle dealers.--Upon
receipt of a complete and accurate new vehicle dealer
application or new vehicle dealer change of address application,
the board shall issue a new vehicle dealer license immediately.
If the new vehicle dealer does not have the franchise approval
letter, the telephone business line information, the certificate
of occupancy or the lease or deed for the property available
when the application has been submitted, the new vehicle dealer
shall receive a temporary permit that expires at the end of 45
days from the date of closing. The new vehicle dealer shall
submit the franchise approval letter, the telephone business
line information, the certificate of occupancy and the lease or
deed for the property prior to the expiration of the temporary
permit. Upon receipt of the franchise approval letter, the
telephone business line information, the certificate of
occupancy and the lease or deed for the property, the board
shall issue a new vehicle dealer license immediately.
Amend Bill, page 71, by inserting between lines 21 and 22
Section 8. Sections 23, 24, 25, 26 and 27 of the act are
amended to read:
Amend Bill, page 79, by inserting between lines 24 and 25
Section 9. Section 27.1 of the act, amended June 28, 2018
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(P.L., No.59), is amended to read:
Amend Bill, page 80, by inserting between lines 16 and 17
(iv) Complying with Federal and State laws and
regulations relating to the privacy and safeguarding of
customer information requirements, providing financial
services to the customer and preparation and retrieval of
documents.
Amend Bill, page 81, by inserting between lines 11 and 12
Section 9.1. Sections 28, 29, 30, 31, 32, 32.1 and 33 of the
act are amended to read:
Amend Bill, page 89, lines 27 through 29, by striking out all
of said lines
Amend Bill, page 108, line 22, by striking out "renumbered"
and inserting
amended
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