Requires automobile manufacturers to directly, or through affiliated dealerships, provide the original purchaser or lessee with information about parts of warranty coverage that would extend coverage beyond the original expressed warranty expiration date.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2309
SPONSOR: Dinowitz (MS) TITLE OF BILL: An act to amend the general business law, in relation
to automobile manufacturers' warranty adjustment programs
PURPOSE: The purpose of this bill is to ensure that consumers are
made aware of warranty adjustment programs implemented by automobile
manufacturers.
SUMMARY OF PROVISIONS: This bill would require automobile manufactur-
ers to establish a procedure whereby a consumer: (1) shall be informed
of any warranty adjustment program applicable to his or her motor vehi-
cle; and (2) shall be entitled to receive a copy of any service bulletin
upon request. Manufacturers would also be required to implement proce-
dures to assure reimbursement of each consumer eligible under an adjust-
ment program who incurs expenses for repair of a condition subject to
the program prior to acquiring knowledge of the program.
The bill would also:
*require dealers to cost a notice regarding the availability of service
bulletins from the NHTSA;
*require manufactures to send bulletin terms and conditions to dealers
within thirty days of adoption; and
*require manufacturers to provide copies of service bulletins to the
Department of State and the Department of Motor Vehicles for public
inspection.
JUSTIFICATION: Currently, a consumer of a new motor vehicle is
provided with basic warranty information at the time of delivery. The
information provided is a broad-based explanation of coverage for the
vehicle generally warranted for a specific period of months and/or mile-
age and contains limitations as well.
Most manufacturers, however, periodically issue "service bulletins" or
"adjustment programs" for particular makes or models of automobiles.
These programs contain warranty-related repairs and an indication that
the parts and/or services needed to correct the situation will be finan-
cially compensated by the manufacturer and therefore extend coverage
beyond the original warranty period for certain components. Except in
the matter of issues or adjustments related to consumer safety, many of
these service bulletins and adjustment programs are handled as internal
documentation, and the consumer is not directly notified. Since the
consumer is not notified, he or she may end up paying for the repair if
they bring their automobile to an independent mechanic.
This bill would require automobile manufacturer's to directly, or
through affiliated dealerships, provide the original purchaser or lessee
with information about parts or warranty coverage that would extend
coverage beyond the original expressed warranty expiration date. Similar
legislation has been enacted in at least five states.
PRIOR LEGISLATIVE HISTORY: 2013-14- A.602- Advanced to Third Reading
Cal. 2011-12- A.8374-A - Advance to Third Reading Cal. 2009-10-
A.4838-A - Referred to Consumer Affairs & Protection 2007-08- A.11006-A-
Advanced to Rules Report Cal.
FISCAL IMPLICATIONS: None to the State.
EFFECTIVE DATE: 120 days after enactment.
