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S1146aa.....................................by COMMERCE AND HUMAN RESOURCES
MOTOR VEHICLES - Amends existing law to amend the state's "lemon law" for
motor vehicles to provide for service or repair facilities; and to increase
the divisor for calculating the refund allowance.
02/10 Senate intro - 1st rdg - to printing
02/11 Rpt prt - to Com/HuRes
03/03 Rpt out - to 14th Ord
03/08 Rpt out amen - to engros
03/09 Rpt engros - 1st rdg - to 2nd rdg as amen
03/10 2nd rdg - to 3rd rdg as amen
03/11 3rd rdg as amen - PASSED - 27-2-6
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Danielson,
Darrington, Davis, Deide, Dunklin, Geddes, Hawkins, Ingram, Ipsen,
Keough, King, Lee, McLaughlin, Richardson, Riggs, Risch, Sandy,
Schroeder, Stegner, Thorne, Wheeler, Whitworth
NAYS--Cameron, Crow
Absent and excused--Frasure, Noh, Parry, Sorensen, Stennett, Twiggs
Floor Sponsor - Ipsen
Title apvd - to House
03/12 House intro - 1st rdg as amen - to Comm/Hu Res
03/16 Rpt out - to Transp
03/19 Rpt out - rec d/p - to 2nd rdg
Rules susp - PASSED - 59-1-10
AYES -- Barraclough, Bieter, Black, Boe, Bruneel, Callister,
Campbell, Chase, Cuddy, Deal, Denney, Ellsworth, Field(13),
Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23),
Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton,
Kendell, Kunz, Lake, Limbaugh, Loertscher, Mader, Marley, McKague,
Meyer, Montgomery, Moyle, Pischner, Pomeroy, Reynolds, Ridinger,
Ringo, Robison, Sali, Schaefer, Sellman, Smith, Smylie, Stoicheff,
Stone, Taylor, Tippets, Watson, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- Alltus
Absent and excused -- Barrett, Bell, Clark, Crow, Linford, Mortensen,
Stevenson, Tilman, Trail, Williams
Floor Sponsor - Ridinger
Title apvd - to Senate
03/22 To enrol - rpt enrol - Pres signed - Sp signed
03/23 To Governor
03/24 Governor signed
Session Law Chapter 333
Effective: 07/01/99
S1146|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1146, As Amended BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO AN AUTOMOBILE MANUFACTURER'S DUTY TO REPAIR OR REPLACE AUTOMO- 3 BILES; AMENDING SECTION 48-902, IDAHO CODE, TO PROVIDE FOR SERVICE OR 4 REPAIR FACILITIES; AND AMENDING SECTION 48-903, IDAHO CODE, TO INCREASE 5 THE DIVISOR FOR CALCULATING THE REFUND ALLOWANCE. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 48-902, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 48-902. MANUFACTURER'S DUTY TO REPAIR -- SERVICE AND REPAIR FACILI- 10 TIES . (1) If a new motor vehicle does not conform to all 11 applicable express warranties, and the consumer reports the nonconformity to 12 the manufacturer, its agent, or its authorized dealer during the term of the 13 applicable express warranties or during the period of two (2) years following 14 the date of original delivery of the new motor vehicle to a consumer, or dur- 15 ing the period ending with the date on which the mileage on the motor vehicle 16 reaches twenty-four thousand (24,000) miles, whichever is the earliest date, 17 the manufacturer, its agent, or its authorized dealer shall make the repairs 18 necessary to conform the vehicle to the applicable express warranties, not- 19 withstanding the fact that the repairs are made after the expiration of the 20 warranty term or the two (2) year period. 21 (2) Every manufacturer of motor vehicles sold and for which the 22 manufacturer has made an express warranty shall maintain sufficient service 23 and repair facilities reasonably close to all areas in which its motor vehi- 24 cles are sold to carry out the terms of the warranties or designate and autho- 25 rize as service and repair facilities independent repair or service facilities 26 reasonably close to all areas in which its motor vehicles are sold to carry 27 out the terms of the warranties. As a means of complying with the provisions 28 of this subsection, a manufacturer may, in a town or city where there is not a 29 franchise market representative, enter into warranty service contracts with 30 independent service and repair facilities. 31 SECTION 2. That Section 48-903, Idaho Code, be, and the same is hereby 32 amended to read as follows: 33 48-903. MANUFACTURER'S DUTY TO REFUND OR REPLACE. (1) If the manufac- 34 turer, its agents, or its authorized dealers are unable to conform the new 35 motor vehicle to any applicable express warranty by repairing or correcting 36 any defect or condition which impairs the use or market value of the motor 37 vehicle to the consumer after a reasonable number of attempts, the manufac- 38 turer shall either replace the new motor vehicle with a comparable motor 39 vehicle or accept return of the vehicle from the consumer and refund to the 40 consumer the amount the consumer paid for the vehicle, inclusive of the value 41 of any trade-in, not to exceed one hundred five percent (105%) of the 2 1 manufacturer's suggested retail price of the motor vehicle. The manufacturer's 2 suggested retail price shall include all manufacturer installed options. The 3 one hundred five percent (105%) cap shall include the cost of any options or 4 other modifications arranged, installed, or made by the manufacturer's agent, 5 or its authorized dealer within thirty (30) days after the date of original 6 delivery. The manufacturer shall refund to the consumer all other charges 7 including, but not limited to, sales or excise tax, license fees and regis- 8 tration fees, reimbursement for towing and rental vehicle expenses incurred by 9 the consumer as a result of the vehicle being out of service for warranty 10 repair. A reasonable allowance for the consumer's use of the vehicle shall be 11 deducted from the refund to the consumer not to exceed the number of miles 12 attributable to the consumer up to the date of the arbitration hearing multi- 13 plied by the purchase price of the vehicle and divided by one hundred 14 twenty thousand (1 2 00,000). If the manufac- 15 turer offers a replacement vehicle under this section, the consumer has the 16 option of rejecting the replacement vehicle and requiring the manufacturer to 17 provide a refund. Refunds must be made to the consumer, and lienholder, if 18 any, as their interests appear on the records of the division of motor vehi- 19 cles of the Idaho transportation department. A manufacturer must give to the 20 consumer an itemized statement listing each of the amounts refunded under this 21 section. If the amount of sales or excise tax refunded is not separately 22 stated, or if the manufacturer does not apply for a refund of the tax within 23 one (1) year of the return of the motor vehicle, the state tax commission may 24 refund the tax, as determined under subsection (8) of this section, directly 25 to the consumer and lienholder, if any, as their interests appear on the 26 records of the division of motor vehicles. It is an affirmative defense to any 27 claim under this chapter: (a) that an alleged nonconformity does not impair 28 the use or market value, or (b) that a nonconformity is the result of abuse, 29 neglect, or unauthorized modifications or alterations of a motor vehicle by 30 anyone other than the manufacturer, its agent or its authorized dealer. 31 (2) It is presumed that a reasonable number of attempts have been under- 32 taken to conform a new motor vehicle to the applicable express warranties, if: 33 (a) the same nonconformity has been subject to repair four (4) or more times 34 by the manufacturer, its agents, or its authorized dealers within the applica- 35 ble express warranty term or during the period of two (2) years following the 36 date of original delivery of the new motor vehicle to a consumer or during the 37 period ending with the date on which the mileage on the motor vehicle reaches 38 twenty-four thousand (24,000) miles, whichever is the earliest date, but the 39 nonconformity continues to exist. However, the manufacturer shall have at 40 least one (1) opportunity to attempt to repair the vehicle before it is pre- 41 sumed a reasonable number of attempts have been undertaken to conform the 42 vehicle to the applicable express warranty; or (b) the vehicle is out of ser- 43 vice by reason of repair for a cumulative total of thirty (30) or more busi- 44 ness days during the term or during the period, whichever is the earlier date. 45 (3) If the nonconformity results in a complete failure of the braking or 46 steering system of the new motor vehicle and is likely to cause death or 47 serious bodily injury if the vehicle is driven, it is presumed that a reason- 48 able number of attempts have been undertaken to conform the vehicle to the 49 applicable express warranties if the nonconformity has been subject to repair 50 at least once by the manufacturer, its agents, or its authorized dealers 51 within the applicable express warranty term or during the period of two (2) 52 years following the date of original delivery of the new motor vehicle to a 53 consumer or during the period ending with the date on which the mileage on the 54 motor vehicle reaches twenty-four thousand (24,000) miles, whichever is the 55 earliest date, and the nonconformity continues to exist. However, the manufac- 3 1 turer shall have at least one (1) opportunity to attempt to repair the vehicle 2 before it is presumed a reasonable number of attempts have been undertaken to 3 conform the vehicle to the applicable express warranty. 4 (4) The term of an applicable express warranty, the two (2) year period 5 and the thirty (30) day period shall be extended by any period of time during 6 which repair services are not available to the consumer because of a war, 7 invasion, strike, or fire, flood, or other natural disaster. 8 (5) The presumption contained in subsection (2) of this section applies 9 against a manufacturer only if the manufacturer, its agent, or its authorized 10 dealer has received prior written notification from or on behalf of the con- 11 sumer at least once and an opportunity to cure the defect alleged. If the 12 notification is received by the manufacturer's agent or authorized dealer, the 13 agent or dealer must forward it to the manufacturer by certified mail, return 14 receipt requested. However, if the manufacturer is not notified either by the 15 consumer or the manufacturer's agent or authorized dealer, then the manufac- 16 turer shall have at least one (1) opportunity to cure the alleged defect. 17 (6) The expiration of the time periods set forth in subsection (2) of 18 this section does not bar a consumer from receiving a refund or replacement 19 vehicle under subsection (1) of this section if the reasonable number of 20 attempts to correct the nonconformity causing the substantial impairment occur 21 within three (3) years following the date of original delivery of the new 22 motor vehicle to a consumer, provided the consumer first reported the noncon- 23 formity to the manufacturer, its agent, or its authorized dealer during the 24 term of the applicable express warranty. 25 (7) The manufacturer shall provide to its agent or authorized dealer and, 26 at the time of purchase or lease, the manufacturer's agent or authorized 27 dealer shall provide a written statement to the consumer in the new motor 28 vehicle warranty guide, in 10-point all capital type, in substantially the 29 following form: "IMPORTANT: IF THIS VEHICLE IS DEFECTIVE, YOU MAY BE ENTITLED 30 UNDER THE STATE'S LEMON LAW TO REPLACEMENT OF IT OR A REFUND OF ITS PURCHASE 31 PRICE OR YOUR LEASE PAYMENTS. HOWEVER, TO BE ENTITLED TO REFUND OR REPLACE- 32 MENT, YOU MUST FIRST NOTIFY THE MANUFACTURER, ITS AGENT, OR ITS AUTHORIZED 33 DEALER OF THE PROBLEM IN WRITING AND GIVE THEM AN OPPORTUNITY TO REPAIR THE 34 VEHICLE. YOU ALSO HAVE A RIGHT TO SUBMIT YOUR CASE TO THE CONSUMER ARBITRA- 35 TION PROGRAM WHICH THE MANUFACTURER MUST OFFER IN THIS STATE." 36 (8) The amount of the sales or excise tax to be paid by the manufacturer 37 to the consumer under subsection (1) of this section shall be the tax paid by 38 the consumer when the vehicle was purchased less an amount equal to the tax 39 paid multiplied by a fraction, the denominator of which is the purchase price 40 of the vehicle and the numerator of which is the allowance deducted from the 41 refund for the consumer's use of the vehicle.
AS1146|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999Moved by Ipsen Seconded by King IN THE SENATE SENATE AMENDMENTS TO S.B. NO. 1146 1 AMENDMENTS TO SECTION 1 2 On page 1 of the printed bill, in lines 19 and 20, delete " or one 3 hundred thousand (100,000) miles if the motor vehicle is diesel powered 4 "; in line 26, delete " in this state "; and in line 29, 5 delete " in this state ". 6 AMENDMENTS TO SECTION 2 7 On page 2, in line 18, delete "onetwo " and 8 insert: "one"; and also in line 18, following "hundred" insert: " twenty 9 "; in line 19, delete "12 " and insert: "1 10 2 "; and in lines 19 and 20, delete " or four hundred thousand 11 (400,000) if the vehicle is diesel powered "; and in lines 44 and 45, 12 delete " or one hundred thousand miles (100,000) if the motor vehicle is 13 diesel powered ". 14 On page 3, in lines 6 and 7, delete " or one hundred thousand 15 (100,000) miles if the vehicle is diesel powered "; and in line 13, 16 delete " or longer if so provided for ". 17 CORRECTIONS TO TITLE 18 On page 1, in line 3, delete "TO PROVIDE A DIFFERENT WAR-" and in line 4, 19 delete "RANTY PERIOD FOR DIESEL-POWERED VEHICLES AND"; in line 5, delete 20 "WITHIN THE STATE"; and in line 6, following "ALLOWANCE" delete the remainder 21 of the line and delete all of lines 7 and 8 and insert: ".".
STATEMENT OF PURPOSE
RS08596
Will extend the warranty period for diesel-powered vehicles from
24,000 to 100,000 miles for vehicles covered by this act.
Will provide that a manufacturer must provide service and repair
facilities if vehicles covered by this act are sold in Idaho.
Will increase the divisor for calculating the refund allowance on
vehicles covered under this act.
FISCAL NOTE
Recently 5,000 copies of the book for the Lemon Law passed
last year were printed and the cost was $1,532. If reprinted,
the cost is $1,532. If it can be done by sticker, as they are
anticipating, the cost would be significantly less.
CONTACT: Senator Ipsen, 332-1326
Representative Watson, 332-1130
STATEMENT OF PURPOSE/ FISCAL NOTE S1146