SB 264 — AN ACT CONCERNING REIMBURSEMENT FOR WARRANTY CLAIMS TO RETAIL DEALERS OF POWER EQUIPMENT.
Last action — SIGNED BY GOVERNOR
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 22, 2021. Enacted.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
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A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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Enacted
Current position in the legislative process.
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6 sponsors
6 primary, 0 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (2 R).
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Bill Text
What changed in the latest version
40 added · 97 removed40 line(s) added, 97 removed.
Senate GeneralBill Assembly File No.
7264 JanuaryPublic Session,Act 2021 Senate Bill No.
26421-127 Senate,AN FebruaryACT 25,CONCERNING 2021REIMBURSEMENT TheFOR CommitteeWARRANTY onCLAIMS GeneralTO LawRETAIL reportedDEALERS throughOF SEN.POWER EQUIPMENT.
MARONEY of the 14th Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.
AN ACT CONCERNING FAIR REIMBURSEMENT TO RETAIL DEALERS OF POWER EQUIPMENT.
(a) WheneverAs aused supplierin andthis asection, dealer"current enternet intoprice" ameans dealer agreement that provides for consumer warranties, the supplierprice shalllisted payin anya warrantysupplier's claimprice madelist foror partscatalog andin serviceeffect notat laterthe thantime thirtya dayswarranty afterclaim receiptis andmade approvalunder ofthis suchsection, claimless byany theapplicable supplier.discounts allowed.
Whenever a supplier and a dealer enter into a dealer agreement that provides for consumer warranties, the supplier shall pay any warranty claim made for parts and service not later than thirty days after receipt and approval of such claim by the supplier.
(b) A supplier that pays a warranty claim pursuant to subsection (a) of this section shall pay the dealer the current net price plus eighteen SB264percentforanypartsandthepostedhourlylaborratethedealercharges /Senate FileBill No.
7264 1consumers SB264for Filenonwarranty No.repair work for service that has been previously made known to the supplier, provided such rate is reasonable, as compared to other same brand dealers of similar size in the geographic vicinity of the dealer.
7(c) percentforanypartsandthepostedhourlylaborratethedealerchargesA consumerssupplier forwho nonwarrantydenies repaira workwarranty forclaim servicemade thatby hasa beendealer previouslypursuant madeto knownsubsection to(a) theof supplier,this providedsection or charges back such ratea isclaim reasonable,following asa comparedtimely audit based solely on the dealer's failure to comply with a claim processing procedure, a clerical error or other sameadministrative brandtechnicality, dealersprovided such failure to comply does not call into question the legitimacy of similarthe sizeclaim, inshall allow the geographicdealer vicinityan ofopportunity to resubmit such claim according to reasonable supplier guidelines not later than thirty days after the dealer.initial claim denial or charge-back.
(c) A supplierreasonable shalldeadline not deny a warranty claim made by a dealer pursuant to subsectionsubmit (a)claims of this section or charge-backsupporting suchmaterials arequired claimby following a timely audit based solely on the dealer'ssupplier failureshall tonot complybe withconsidered a claim processing procedure,procedure a clerical error or other administrative technicality,technicality providedfor thepurposes failure to comply does not call into question the legitimacy of thethis claimsubsection. without allowing the dealer an opportunity to resubmit a denied claim according to reasonable supplier guidelines not later than thirty days after the initial claim denial or charge-back.
AApproved reasonableJuly deadline7, to2021 submitPublic claimsAct orNo. supporting materials required by the supplier shall not be considered a claim processing procedure or administrative technicality.
This21-127 act2 shallof take2 effect as follows and shall amend the following sections:
Section 1 January 1, 2022 42-351 GL Joint Favorable SB264 / File No.
7 2 SB264 File No.
7 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
None Municipal Impact:
None Explanation The bill clarifies the supplier and dealer relationship for equipment warranty claims and results in no fiscal impact to the state.
The Out Years State Impact:
None Municipal Impact:
None SB264 / File No.
7 3 SB264 File No.
7 OLR Bill Analysis SB 264 AN ACT CONCERNING FAIR REIMBURSEMENT TO RETAIL DEALERS OF POWER EQUIPMENT.
SUMMARY By law, for outdoor (i.e., farm, forestry, yard, and garden) equipment warranties contractually serviced by an authorized dealer, the supplier must approve or deny claims for parts and services within 30 days.
Suppliers must then pay the claims within 30 days after approving them.
This bill requires equipment suppliers to compensate their authorized dealers for repairs performed under these warranties at the (1) current net price (presumably at the time of the claim) plus 18% for any parts and (2) dealer’s posted hourly labor rate charged for non- warranty repair work.
It requires the dealer to give the supplier prior noticeofthelaborrate,whichmust bereasonableincomparisontoother similarly sized brand dealers in their geographic area.
The bill also prohibits a supplier from denying a warranty claim or charging it back following a timely audit based solely on the dealer’s failure to comply with a claim processing procedure, clerical error, or other administrative technicality, as long as the failure does not challenge the claim’s legitimacy.
It requires the supplier to allow the dealer to resubmit a denied claim based on reasonable supplier guidelines within 30 days after the initial denial or charge-back.
Under the bill, a reasonable deadline to submit claims or supporting materials required by the supplier must not be considered a claim processing procedure or administrative technicality.
EFFECTIVE DATE:
January 1, 2022 COMMITTEE ACTION General Law Committee SB264 / File No.
7 4 SB264 File No.
7 Joint Favorable Yea 19 Nay 0 (02/02/2021) SB264 / File No.
7 5
View plain text versions (4)
- Chaptered Public Act No. 21-127 Current pdf
- File No. 7 View text pdf
- GL Joint Favorable View text pdf
- Raised Bill View text pdf
AI-generated reading aid from the bill's amendatory text — verify against the official bill.
The bill repeals and replaces existing law regarding warranty claim reimbursements for retail dealers of power equipment.
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Section 42-351
As used in this section, "current net price" means the price listed in a supplier's price list or catalog in effect at the time a warranty claim is made under this section, less any applicable discounts allowed. Whenever a supplier and a dealer enter into a dealer agreement that provides for consumer warranties, the supplier shall pay any warranty claim made for parts and service not later than thirty days after receipt and approval of such claim by the supplier. The supplier shall approve or disapprove a warranty claim not later than thirty days after receipt of such claim by the supplier. If a warranty claim is not disapproved in writing by the thirtieth day after receipt of such claim by the supplier, it shall be deemed to be approved and payment shall be made by the supplier not later than thirty days thereafter. A supplier that pays a warranty claim pursuant to subsection (a) of this section shall pay the dealer the current net price plus eighteen percentforanypartsandthepostedhourlylaborratethedealercharges for nonwarranty repair work for service that has been previously made known to the supplier, provided such rate is reasonable, as compared to other same brand dealers of similar size in the geographic vicinity of the dealer. A supplier who denies a warranty claim made by a dealer pursuant to subsection (a) of this section or charges back such a claim following a timely audit based solely on the dealer's failure to comply with a claim processing procedure, a clerical error or other administrative technicality, provided such failure to comply does not call into question the legitimacy of the claim, shall allow the dealer an opportunity to resubmit such claim according to reasonable supplier guidelines not later than thirty days after the initial claim denial or charge-back. A reasonable deadline to submit claims or supporting materials required by the supplier shall not be considered a claim processing procedure or administrative technicality for purposes of this subsection.→ (a) As used in this section, "current net price" means the price listed in a supplier's price list or catalog in effect at the time a warranty claim is made under this section, less any applicable discounts allowed. Whenever a supplier and a dealer enter into a dealer agreement that provides for consumer warranties, the supplier shall pay any warranty claim made for parts and service not later than thirty days after receipt and approval of such claim by the supplier. The supplier shall approve or disapprove a warranty claim not later than thirty days after receipt of such claim by the supplier. If a warranty claim is not disapproved in writing by the thirtieth day after receipt of such claim by the supplier, it shall be deemed to be approved and payment shall be made by the supplier not later than thirty days thereafter. (b) A supplier that pays a warranty claim pursuant to subsection (a) of this section shall pay the dealer the current net price plus eighteen percent for any parts and the posted hourly labor rate the dealer charges for nonwarranty repair work for service that has been previously made known to the supplier, provided such rate is reasonable, as compared to other same brand dealers of similar size in the geographic vicinity of the dealer. (c) A supplier who denies a warranty claim made by a dealer pursuant to subsection (a) of this section or charges back such a claim following a timely audit based solely on the dealer's failure to comply with a claim processing procedure, a clerical error or other administrative technicality, provided such failure to comply does not call into question the legitimacy of the claim, shall allow the dealer an opportunity to resubmit such claim according to reasonable supplier guidelines not later than thirty days after the initial claim denial or charge-back. A reasonable deadline to submit claims or supporting materials required by the supplier shall not be considered a claim processing procedure or administrative technicality for purposes of this subsection.This change updates the warranty claim process for suppliers and dealers, specifying reimbursement timelines and conditions.
Action History
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SIGNED BY GOVERNOR
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TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR
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TRANSMITTED TO SECRETARY OF THE STATE
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PUBLIC ACT 21-127
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IN CONCURRENCE
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HOUSE PASSED, SEN. AMEND. SCH. A
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HOUSE ADOPTED SEN. AMEND. SCH. A
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HOUSE CALENDAR NUMBER 443
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FAV. RPT., TABLED FOR HOUSE CALENDAR
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SEN. PASSED, SEN. AMEND. SCH. A
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SEN. ADOPTED SEN. AMEND. SCH. A
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FILE NO. 7
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SENATE CALENDAR NUMBER 23
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FAV. RPT., TAB. FOR CAL., SEN.
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RPTD. OUT OF LCO
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REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 02/24/21
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FILED WITH LCO
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Joint Favorable
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PUBLIC HEARING 0128
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REF. TO JOINT COMM. ON General Law
Sponsors
- Kathy Kennedy · Primary
- Kevin D. Witkos · Primary
- Irene M. Haines · Primary
- William A. Petit · Primary
- Brian T. Smith · Primary
- Kenneth M Gucker · Primary
Sponsorship breakdown
Export CSV (upgrade) →6 sponsors · 0 co-sponsors · 181 not signed on
Sponsors (6)
- Kathy Kennedy Republican
- Witkos, Kevin D.
- Irene M. Haines Republican
- Petit, William A.
- Smith, Brian T.
- Gucker, Kenneth M
Co-sponsors (0)
None.
Not signed on (181)
181 members have not signed on to this bill.
Show all 181 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors SB 264?
- SB 264 is sponsored by Kathy Kennedy (Republican), Witkos, Kevin D., Irene M. Haines (Republican), Petit, William A., Smith, Brian T., and Gucker, Kenneth M.
- What is the current status of SB 264?
- This bill has been enacted into law. Introduced January 22, 2021. Enacted.
- Where can I track SB 264?
- Track SB 264 free on One Click Politics — get push/email alerts when it moves.
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