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PRINTER'S NO. 761
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
688
Session of
2021
INTRODUCED BY STEFANO, SCAVELLO, PITTMAN, BARTOLOTTA AND BROOKS,
MAY 14, 2021
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MAY 14, 2021
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.
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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 vehicle is with the
manufacturer, its agent or authorized dealer for repair.
Section 7. Itemized statement required.
The manufacturer or dealer shall provide to the purchaser
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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
under section 8.
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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
or transferor obtains a signed receipt certifying in a
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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
manufacturer, dealer, lessor or transferor to notify its
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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.
(c) Agreement waiving, limiting or disclaiming rights.--Any
agreement entered into by a purchaser that waives, limits or
disclaims the rights set forth in this act is void as contrary
to public policy. Where applicable, the rights set forth in this
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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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