General Law Committee
JOINT FAVORABLE REPORT
Bill No.: SB-264
AN ACT CONCERNING FAIR REIMBURSEMENT TO RETAIL DEALERS OF
Title: POWER EQUIPMENT.
Vote Date: 2/2/2021
Vote Action: Joint Favorable
PH Date: 1/28/2021
File No.: 7
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
General Law Committee
Co-Sponsor: Representative William A. Petit, 22nd District
REASONS FOR BILL:
This bill would allow retail dealers of power equipment to be compensated fairly for any
repairs that are done under a warranty. When dealers are financially sound their work is
done more effectively under a manufacturer's warranty obligation.
This bill was originally introduced in the fall of 2017 by Rep. Linda Orange. There were
negotiations to update the language, which was done with General Law Committee chairs
and ranking members and AEM and Honda of America. In 2019, HB5267 was passed out of
committee and the House of Representatives. In 2020, SB253 was passed out of committee,
however session was interrupted by Covid-19.
RESPONSE FROM ADMINISTRATION/AGENCY:
None
NATURE AND SOURCES OF SUPPORT:
Eideberg, Johan, Senior Vice President, Government & Industry Relations, Association
of Equipment Manufacturers
Equipment industry contributes $1.4 billion to the state's GDP every year. Manufacturer
warranties are a marketing tool that provide dealers to strengthen relationships with
customers. Warranty contract reimbursement vary, but the manufacturer and dealers agree,
it should balance the responsibilities of the manufacturer and dealer to be successful. AEM
does not object to SB264.
Wentz, Tim, Field Director, Northeast Equipment Association, Inc.
Dealers are independent businesspeople and understand their priority is to serve their
customers. Fair and reasonable compensation of warranty repairs by an authorized dealer
will benefit consumers and the state's economy. A sound dealer network can ensure timely
and effective performance of a manufacturers warranty.
NATURE AND SOURCES OF OPPOSITION:
None
Reported by: Bonnie Gray, Asst. Clerk Date: 02/19/2021
Page 2 of 2 SB-264


Statutes affected:
Raised Bill: 42-351
GL Joint Favorable: 42-351
File No. 7: 42-351
Public Act No. 21-127: 42-351