BILL NUMBER: S5085C
SPONSOR: KENNEDY
 
TITLE OF BILL:
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
 
PURPOSE:
This bill amends the Vehicle and Traffic Law to change the way dealers
are reimbursed by manufacturers; provides that manufacturers must pay a
dealer reasonable compensation for warranty work based off the amount a
retail customer pays the dealer for the same services; applies to
warranty work and factory recalls; establishes a manner of determining
effective labor rates; provides additional guarantees clarifying when
warranty work is covered.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the Vehicle and Traffic Law to require that all vehicle
franchisors adequately fulfill any warranty agreement, including
recalls, voluntary stop-sell repairs, extended warranties, and similar
items. Warranties will now cover all diagnostic work, as well as ensure
adequate reasonable compensation for the work performed. The bill would
ensure adequate reasonable compensation for all warranty work and
ensures no franchisor shall reject a vehicle brought in when warranty
work should have been honored due to lack of availability of parts.
Section 2 contains the effective date.
 
JUSTIFICATION:
The licensing and supervision of motor vehicle dealers is necessary for
the protection of consumers. This legislation ensures that the regu-
lation of motor vehicle manufacturers, distributors, wholesalers, facto-
ry branches, distributor branches and representatives will enable
compliance with manufacturer warranties so that consumers can keep their
motor vehicles properly functioning and safe.
 
PRIOR LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S5085: 465 vehicle and traffic law, 465(1) vehicle and traffic law
S5085A: 465 vehicle and traffic law, 465(1) vehicle and traffic law
S5085B: 465 vehicle and traffic law, 465(1) vehicle and traffic law
S5085C: 465 vehicle and traffic law, 465(1) vehicle and traffic law