Senate Bill S5085B

2023-2024 Legislative Session

Requires motor vehicle dealer franchisors to fully compensate franchised motor vehicle dealers for warranty service agreements

download bill text pdf

Sponsored By

Current Bill Status - On Floor Calendar


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Votes

Bill Amendments

co-Sponsors

2023-S5085 - Details

Law Section:
Vehicle and Traffic Law
Laws Affected:
Amd §465, V & T L

2023-S5085 - Summary

Requires motor vehicle dealer franchisors to fully compensate franchised motor vehicle dealers for warranty service agreements.

2023-S5085 - Sponsor Memo

2023-S5085 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5085
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2023
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Transportation
 
 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:
 
   Section  1.  Subdivision  1  of section 465 of the vehicle and traffic
 law, as amended by chapter 26 of the laws of 2014, is amended to read as
 follows:
   1. Every franchisor shall  properly  fulfill  any  warranty  agreement
 and/or  franchisor's  service contract, INCLUDING BUT NOT LIMITED TO ALL
 WARRANTY AND FACTORY COMPENSATED REPAIRS, RECALLS, AND  OTHER  VOLUNTARY
 STOP-SELL  REPAIRS,  and  shall  compensate each of its franchised motor
 vehicle dealers for warranty parts and  labor  AND  DIAGNOSTIC  WORK  in
 amounts which reflect reasonable compensation for such work. IN NO EVENT
 SHALL SUCH COMPENSATION FAIL TO INCLUDE FULL COMPENSATION FOR DIAGNOSTIC
 WORK,  AS  WELL AS REPAIR SERVICE, LABOR, AND PARTS.  ADDITIONALLY, IF A
 TECHNICIAN IS  REQUIRED  TO  COMMUNICATE  WITH  A  TECHNICAL  ASSISTANCE
 CENTER,  ENGINEERING  OR  SOME  EXTERNAL MANUFACTURER SOURCE IN ORDER TO
 PROVIDE A WARRANTY REPAIR, THE MANUFACTURER SHALL PAY FOR THE TIME  FROM
 START OF COMMUNICATIONS (INCLUDING HOLD TIME) UNTIL THE COMMUNICATION IS
 COMPLETE. All warranty claims and/or claims under a franchisor's service
 contract  made  by franchised motor vehicle dealers shall be paid within
 thirty  days  following  their  approval.  For  DIAGNOSIS  WORK,   parts
 reimbursement,  other  than  components,  systems, fixtures, appliances,
 furnishings,  accessories  and  features  of  a  house  coach  that  are
 designed,  used  and  maintained  primarily for nonvehicular residential
 purposes, and for labor reimbursement, reasonable compensation shall not
 be less than the price and rate charged by the franchised motor  vehicle
 dealer  for  like  services  to non-warranty and/or non-service contract
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02112-01-3
              

co-Sponsors

2023-S5085A - Details

Law Section:
Vehicle and Traffic Law
Laws Affected:
Amd §465, V & T L

2023-S5085A - Summary

Requires motor vehicle dealer franchisors to fully compensate franchised motor vehicle dealers for warranty service agreements.

2023-S5085A - Sponsor Memo

2023-S5085A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5085--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2023
                                ___________
 
 Introduced by Sens. KENNEDY, GALLIVAN, MATTERA, MURRAY, OBERACKER, RAMOS
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Transportation -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 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:
 
   Section 1. Subdivision 1 of section 465 of  the  vehicle  and  traffic
 law, as amended by chapter 26 of the laws of 2014, is amended to read as
 follows:
   1.  Every  franchisor  shall  properly  fulfill any warranty agreement
 and/or franchisor's service contract, INCLUDING BUT NOT LIMITED  TO  ALL
 WARRANTY   REPAIRS,   EXTENDED  WARRANTY  REPAIRS,  FACTORY  COMPENSATED
 REPAIRS, RECALLS,  DIAGNOSTICS,  PARTS  AND  OTHER  VOLUNTARY  STOP-SELL
 REPAIRS, and shall compensate each of its franchised motor vehicle deal-
 ers  for  ALL warranty [parts and labor], RECALL, DIAGNOSTIC LABOR OPER-
 ATIONS AND PARTS WHERE APPLICABLE in amounts [which  reflect  reasonable
 compensation  for  such  work]  EQUAL TO THE APPLICABLE LABOR TIME GUIDE
 UTILIZED FOR RETAIL CUSTOMER PAID LABOR OPERATIONS BY A FRANCHISED MOTOR
 VEHICLE DEALER. IN NO EVENT SHALL SUCH COMPENSATION FAIL TO INCLUDE FULL
 COMPENSATION FOR DIAGNOSTIC WORK, AS WELL AS REPAIR SERVICE, LABOR,  AND
 PARTS.   ADDITIONALLY, IF A TECHNICIAN IS REQUIRED TO COMMUNICATE WITH A
 TECHNICAL ASSISTANCE CENTER, ENGINEERING OR SOME  EXTERNAL  MANUFACTURER
 SOURCE IN ORDER TO PROVIDE A WARRANTY REPAIR, THE MANUFACTURER SHALL PAY
 FOR  THE  TIME  FROM START OF COMMUNICATIONS (INCLUDING HOLD TIME) UNTIL
 THE COMMUNICATION IS COMPLETE. All warranty claims and/or claims under a
 franchisor's service contract made by franchised motor  vehicle  dealers
 shall be paid within thirty days following their approval. For DIAGNOSIS
 WORK,  parts  reimbursement,  other  than components, systems, fixtures,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02112-04-3
              

co-Sponsors

2023-S5085B - Details

Law Section:
Vehicle and Traffic Law
Laws Affected:
Amd §465, V & T L

2023-S5085B - Summary

Requires motor vehicle dealer franchisors to fully compensate franchised motor vehicle dealers for warranty service agreements.

2023-S5085B - Sponsor Memo

2023-S5085B - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5085--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2023
                                ___________
 
 Introduced by Sens. KENNEDY, ADDABBO, BAILEY, BRISPORT, BROUK, CANZONER-
   I-FITZPATRICK,  CHU,  COMRIE,  COONEY,  FERNANDEZ, GONZALEZ, HARCKHAM,
   HINCHEY, JACKSON, LANZA, LIU,  MANNION,  MARTINEZ,  MARTINS,  MATTERA,
   MAY, MAYER, MURRAY, MYRIE, OBERACKER, PALUMBO, RAMOS, RIVERA, SALAZAR,
   SCARCELLA-SPANTON,  SKOUFIS,  STAVISKY,  WEBB,  WEIK -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Transportation   --   committee   discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to  said  committee  --  reported
   favorably  from  said  committee  and  committed  to  the Committee on
   Finance -- committee discharged, bill amended,  ordered  reprinted  as
   amended and recommitted to said committee
 
 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:
 
   Section 1. Subdivision 1 of section 465 of  the  vehicle  and  traffic
 law, as amended by chapter 26 of the laws of 2014, is amended to read as
 follows:
   1.  Every  franchisor  shall  properly  fulfill any warranty agreement
 and/or franchisor's service contract, INCLUDING BUT NOT LIMITED  TO  ALL
 WARRANTY   REPAIRS,   EXTENDED  WARRANTY  REPAIRS,  FACTORY  COMPENSATED
 REPAIRS, RECALLS,  DIAGNOSTICS,  PARTS  AND  OTHER  VOLUNTARY  STOP-SELL
 REPAIRS, and shall compensate each of its franchised motor vehicle deal-
 ers  for  ALL warranty [parts and labor], RECALL, DIAGNOSTIC LABOR OPER-
 ATIONS AND PARTS WHERE APPLICABLE in amounts  which  reflect  reasonable
 compensation  for  such  work.  FOR PURPOSES OF THIS SECTION, REASONABLE
 COMPENSATION SHALL INCLUDE THE REASONABLE LABOR TIME ON RETAIL  CUSTOMER
 PAID LABOR OPERATIONS BY A FRANCHISED MOTOR VEHICLE DEALER. All warranty
 claims and/or claims under a franchisor's service contract made by fran-
 chised  motor vehicle dealers shall be paid within thirty days following
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02112-05-3
              

co-Sponsors

2023-S5085C (ACTIVE) - Details

Law Section:
Vehicle and Traffic Law
Laws Affected:
Amd §465, V & T L

2023-S5085C (ACTIVE) - Summary

Requires motor vehicle dealer franchisors to fully compensate franchised motor vehicle dealers for warranty service agreements.

2023-S5085C (ACTIVE) - Sponsor Memo

2023-S5085C (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5085--C
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2023
                                ___________
 
 Introduced by Sens. KENNEDY, ADDABBO, BAILEY, BRISPORT, BROUK, CANZONER-
   I-FITZPATRICK,  CHU,  COMRIE,  COONEY,  FERNANDEZ, GONZALEZ, HARCKHAM,
   HINCHEY, JACKSON, LANZA, MANNION,  MARTINEZ,  MARTINS,  MATTERA,  MAY,
   MAYER,  MURRAY,  MYRIE,  OBERACKER,  PALUMBO,  RAMOS, RIVERA, SALAZAR,
   SCARCELLA-SPANTON, SKOUFIS, STAVISKY, WEBB, WEIK  --  read  twice  and
   ordered  printed, and when printed to be committed to the Committee on
   Transportation  --  committee  discharged,   bill   amended,   ordered
   reprinted  as  amended  and  recommitted to said committee -- reported
   favorably from said  committee  and  committed  to  the  Committee  on
   Finance  --  committee  discharged, bill amended, ordered reprinted as
   amended and recommitted  to  said  committee  --  recommitted  to  the
   Committee  on  Transportation in accordance with Senate Rule 6, sec. 8
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and recommitted to said committee
 
 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:
 
   Section 1. Subdivision 1 of section 465 of  the  vehicle  and  traffic
 law, as amended by chapter 26 of the laws of 2014, is amended to read as
 follows:
   1.  Every  franchisor  shall  properly  fulfill any warranty agreement
 and/or franchisor's service contract, INCLUDING BUT NOT LIMITED  TO  ALL
 WARRANTY   REPAIRS,   EXTENDED  WARRANTY  REPAIRS,  FACTORY  COMPENSATED
 REPAIRS, RECALLS,  DIAGNOSTICS,  PARTS  AND  OTHER  VOLUNTARY  STOP-SELL
 REPAIRS, and shall compensate each of its franchised motor vehicle deal-
 ers  for  ALL warranty [parts and labor], RECALL, DIAGNOSTIC LABOR OPER-
 ATIONS AND PARTS WHERE APPLICABLE in amounts  which  reflect  reasonable
 compensation  for  such  work.  FOR PURPOSES OF THIS SECTION, REASONABLE
 COMPENSATION SHALL BE THE REASONABLE LABOR TIME  ALLOWANCES  DEFINED  BY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02112-07-4
              

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