New York State Assembly

 
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A04066 Summary:

A04066 Actions:

A04066 Committee Votes:

Committee:TRANSPORTATION   Chair:Magnarelli      
DATE:05/24/2023AYE/NAY:25/0  Action: Favorable refer to committee Rules        
Magnarelli
Aye
McDonough
Excused
Lupardo
Aye
Miller
Aye
Thiele
Aye
Norris
Aye
Simon
Aye
DeStefano
Aye
Williams
Aye
Durso
Aye
Fahy
Aye
Giglio
Aye
McMahon
Aye
McGowan
Aye
Darling
Aye
Slater
Aye
Wallace
Aye
Burgos
Aye
Gallagher
Aye
Mitaynes
Aye
Sillitti
Aye
De Los Santos
Aye
Cunningham
Aye
Alvarez
Aye
Shrestha
Aye
Shimsky
Aye

Committee:RULES   Chair:Pretlow      
DATE:06/01/2023AYE/NAY:30/0  Action: Favorable         
Heastie
Excused
Barclay
Aye
Weinstein
Aye
Hawley
Aye
Pretlow
Aye
Giglio
Aye
Cook
Aye
Blankenbush
Aye
Glick
Aye
Norris
Aye
Aubry
Aye
Ra
Aye
Dinowitz
Aye
Brabenec
Aye
Colton
Aye
Palmesano
Aye
Magnarelli
Aye
Reilly
Aye
Paulin
Aye
Peoples-Stokes
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Zebrowski
Aye
Thiele
Aye
Braunstein
Aye
Dickens
Aye
Davila
Aye
Hyndman
Aye
Rozic
Aye
Bronson
Aye

A04066 Floor Votes:

A04066 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4066--B
                                                                Cal. No. 112
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 9, 2023
                                       ___________
 
        Introduced  by  M.  of A. BURGOS, SILLITTI, GALLAGHER, FAHY, BRAUNSTEIN,
          CLARK,  FALL,  SEPTIMO,  MAMDANI,  RIVERA,  DURSO,  MILLER,  LUNSFORD,
          DARLING,   SANTABARBARA,  DeSTEFANO,  J. A. GIGLIO,  SMITH,  K. BROWN,
          RAMOS,  LAVINE,  McMAHON,  JACOBSON,  SHIMSKY,  CUNNINGHAM,  SHRESTHA,
          L. ROSENTHAL,   THIELE,  DE LOS SANTOS,  MEEKS,  McDONOUGH,  WILLIAMS,
          COLTON, DINOWITZ, HEVESI, GUNTHER, BURKE, TAPIA, COOK, STERN,  WALKER,
          WEPRIN,  BENEDETTO,  SIMONE,  JEAN-PIERRE,  NORRIS,  JENSEN,  BEEPHAN,
          EPSTEIN, SLATER, GRAY, CONRAD, McDONALD,  SEAWRIGHT,  BURDICK,  BORES,
          BRABENEC,  HYNDMAN,  ZACCARO,  AUBRY,  STIRPE, REILLY, DILAN, SOLAGES,
          SAYEGH, CRUZ, CARROLL,  TAGUE,  ALVAREZ,  LUPARDO,  LEVENBERG,  FLOOD,
          GONZALEZ-ROJAS,  MORINELLO,  BRONSON,  WOERNER,  ZEBROWSKI,  E. BROWN,
          REYES, ARDILA, GALLAHAN, SIMPSON, GANDOLFO, BENDETT,  MCGOWAN,  STECK,
          WALLACE, MAHER, WALSH, RAGA, LEE, PHEFFER AMATO, KELLES -- Multi-Spon-
          sored  by -- M. of A. SIMON -- read once and referred to the Committee
          on Transportation  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee -- ordered to a
          third  reading,  amended and ordered reprinted, retaining its place on
          the order of third reading
 
        AN ACT to amend the vehicle and traffic law, in  relation  to  requiring
          motor  vehicle dealer franchisors to fully compensate franchised motor
          vehicle dealers for warranty service agreements
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision  1  of section 465 of the vehicle and traffic
     2  law, as amended by chapter 26 of the laws of 2014, is amended to read as
     3  follows:
     4    1. Every franchisor shall  properly  fulfill  any  warranty  agreement
     5  and/or  franchisor's  service contract, including but not limited to all
     6  warranty  repairs,  extended  warranty  repairs,   factory   compensated
     7  repairs,  recalls,  diagnostics,  parts  and  other  voluntary stop-sell
     8  repairs, and shall compensate each of its franchised motor vehicle deal-
     9  ers for all warranty [parts and labor], recall, diagnostic  labor  oper-
    10  ations  and  parts  where applicable in amounts which reflect reasonable
    11  compensation for such work. For purposes  of  this  section,  reasonable
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02112-08-4
        A. 4066--B                          2
 
     1  compensation  shall  be  the reasonable labor time allowances defined by
     2  the retail labor time guide reasonably utilized by  a  franchised  motor
     3  vehicle  dealer  for  non-warranty  customer  paid labor operations. All
     4  warranty claims and/or claims under a franchisor's service contract made
     5  by  franchised  motor  vehicle  dealers shall be paid within thirty days
     6  following their approval. For diagnosis work, parts reimbursement, other
     7  than components, systems, fixtures, appliances, furnishings, accessories
     8  and features of a house coach that are  designed,  used  and  maintained
     9  primarily   for   nonvehicular   residential  purposes,  and  for  labor
    10  reimbursement, reasonable compensation shall not be less than the  price
    11  and  rate  charged  by  the  franchised  motor  vehicle  dealer for like
    12  services to non-warranty and/or non-service  contract  customers.    For
    13  purposes  of  this section, the price and rate charged by the franchised
    14  motor vehicle dealer for parts may be established by submitting  to  the
    15  franchisor  one  hundred  sequential  nonwarranty  customer-paid service
    16  repair orders or the  number  of  sequential  nonwarranty  customer-paid
    17  service  repair  orders written within a ninety day period, whichever is
    18  less, covering repairs made no more than one hundred eighty days  before
    19  the  submission,  and  declaring  the  price and rate, including average
    20  markup for the franchised motor  vehicle  dealer  as  its  reimbursement
    21  rate.  The  reimbursement  rate  so declared shall go into effect thirty
    22  days following the declaration and shall be presumed to  be  reasonable,
    23  however  a  franchisor  may  rebut such presumption by showing that such
    24  rate so established is unreasonable in light of  the  practices  of  all
    25  other franchised motor vehicle dealers in the vicinity offering the same
    26  line  make.  The  franchised  motor  vehicle  dealer shall not request a
    27  change in the reimbursement rate more often than once in  each  calendar
    28  year. In establishing the labor reimbursement rate, the franchisor shall
    29  not  require a franchised motor vehicle dealer to establish said rate by
    30  a methodology, or by requiring information, that is unduly burdensome or
    31  time consuming to provide, including, but not limited to, a  transaction
    32  by  transaction  calculation.  For  the  purposes  of  this section, the
    33  following parts or types of repairs shall be  excluded  from  the  parts
    34  and/or  labor  calculations  and the franchisor's reimbursement require-
    35  ments under this section: (a) parts sold at wholesale;  (b)  tires;  (c)
    36  routine  maintenance not covered under any retail customer warranty such
    37  as fluids, filters and belts not provided in the course of repairs;  (d)
    38  vehicle  reconditioning; and (e) batteries replaced as part of a routine
    39  maintenance operation. If the  franchisor  rejects  the  declaration  or
    40  attempts  to  rebut  the declaration because of an error in the dealer's
    41  submission, the franchisor shall identify with  specificity  the  reason
    42  for rejection and identify the error or errors within the submission. In
    43  the event the franchisor rejects or rebuts the dealer's initial declara-
    44  tion, the dealer shall have the opportunity, within sixty days to resub-
    45  mit  the  full and corrected declaration addressing the alleged error or
    46  errors identified by the franchisor. The franchisor shall respond within
    47  sixty days. The one hundred eighty day requirement for the repair orders
    48  shall be stayed from the date of initial submission. In  any  action  or
    49  proceeding  held pursuant to this subdivision, the franchisor shall have
    50  the burden of proving that the rate declared by the dealer was unreason-
    51  able as described in this subdivision and that the  proposed  adjustment
    52  of  the  average  percentage  markup  or  rejection of the submission is
    53  reasonable pursuant to the provisions of this subdivision.   A  warranty
    54  claim timely made shall not be deemed invalid solely because unavailable
    55  parts cause additional use and mileage on the vehicle.
    56    § 2. This act shall take effect immediately.