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S1152aa..............................................by JUDICIARY AND RULES
MOTOR VEHICLE DEALERS - Adds to existing law relating to motor vehicle
dealers and salesmen licensing to provide for payment of claims or other
compensation to motor vehicle dealers under a manufacturer incentive
program for motor vehicle dealers; and to provide conditions under which a
manufacturer or distributor can and cannot charge back to a motor vehicle
dealer the amount of a claim or cash value of a prize awarded to a dealer
under a manufacturer incentive program.
02/13 Senate intro - 1st rdg - to printing
02/14 Rpt prt - to Com/HuRes
02/28 Rpt out - to 14th Ord
03/01 Rpt out amen - to engros
03/02 Rpt engros - 1st rdg - to 2nd rdg as amen
03/05 2nd rdg - to 3rd rdg as amen
03/06 3rd rdg as amen - PASSED - 33-0-2
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Goedde,
Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai, McGee, McKague, McKenzie, Pearce, Richardson,
Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- Gannon, Schroeder
Floor Sponsor - Darrington
Title apvd - to House
03/08 House intro - 1st rdg - to Transp
03/13 Rpt out - rec d/p - to 2nd rdg
03/14 2nd rdg - to 3rd rdg
03/19 3rd rdg - PASSED - 62-5-3
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chew, Clark,
Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Henbest,
Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
Nielsen, Nonini, Patrick, Pence, Raybould, Ring, Ringo, Roberts,
Ruchti, Sayler, Schaefer, Shepherd(2), Shirley, Shively, Smith(30),
Snodgrass, Stevenson, Thayn, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- Pasley-Stuart, Rusche, Shepherd(8), Smith(24), Vander Woude
Absent and excused -- Chavez, Harwood, Trail
Floor Sponsor - Bedke
Title apvd - to Senate
03/20 To enrol
03/21 Rpt enrol - Pres signed - Sp signed
03/22 To Governor
03/28 Governor signed
Session Law Chapter 251
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1152
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO MOTOR VEHICLE DEALERS AND SALESMEN LICENSING; AMENDING CHAPTER 16,
3 TITLE 49, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 49-1638, IDAHO
4 CODE, TO PROVIDE FOR PAYMENT OF CLAIMS OR OTHER COMPENSATION TO MOTOR
5 VEHICLE DEALERS UNDER A MANUFACTURER INCENTIVE PROGRAM FOR MOTOR VEHICLE
6 DEALERS AND TO PROVIDE CONDITIONS UNDER WHICH A MANUFACTURER OR DISTRIBU-
7 TOR CAN AND CANNOT CHARGE BACK TO A MOTOR VEHICLE DEALER THE AMOUNT OF A
8 CLAIM OR CASH VALUE OF A PRIZE AWARDED TO A DEALER UNDER A MANUFACTURER
9 INCENTIVE PROGRAM.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Chapter 16, Title 49, Idaho Code, be, and the same is
12 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
13 ignated as Section 49-1638, Idaho Code, and to read as follows:
14 49-1638. MANUFACTURER INCENTIVE PROGRAMS FOR MOTOR VEHICLE DEALERS. (1) A
15 manufacturer or distributor shall pay a motor vehicle dealer's claim for pay-
16 ment or other compensation due under a manufacturer incentive program within
17 thirty (30) business days after receiving the claim, unless the claim is dis-
18 approved by written notice, with reasons stated, within thirty (30) days of
19 receipt of the dealer's claim. A claim that is not disapproved or disallowed
20 in writing within thirty (30) business days after the manufacturer or distrib-
21 utor receives the claim is deemed automatically approved.
22 (2) A manufacturer shall not deny a claim based solely on a motor vehicle
23 dealer's incidental failure to comply with a specific claim processing
24 requirement, such as a clerical error or other administrative technicality
25 that does not put into question the legitimacy of the claim.
26 (3) A dealer shall have sixty (60) days from the date of notification by
27 a manufacturer or distributor of a charge-back to the dealer to resubmit a
28 claim for payment or compensation, whether the charge-back was a direct or an
29 indirect transaction.
30 (4) Notwithstanding the terms of a franchise agreement or other contract
31 with a manufacturer or distributor, a motor vehicle dealer has one (1) year
32 after the expiration of a manufacturer or distributor incentive program to
33 submit a claim for payment or compensation under the program.
34 (5) Notwithstanding the terms of a franchise agreement or other contract
35 with a dealer and except as provided in subsection (6) of this section, after
36 the expiration of one (1) year after the date of transaction of the vehicle
37 sale or service, a manufacturer or distributor shall not:
38 (a) Charge back to a motor vehicle dealer, whether directly or indi-
39 rectly, the amount of a claim that has been approved and paid by the manu-
40 facturer or distributor under an incentive program;
41 (b) Charge back to a motor vehicle dealer, whether directly or indi-
42 rectly, the cash value of a prize or other thing of value awarded to the
43 dealer under an incentive program; or
2
1 (c) Audit the records of a motor vehicle dealer to determine compliance
2 with the terms of an incentive program.
3 (6) Notwithstanding subsection (5) of this section, a manufacturer or
4 distributor may make charge-backs to a motor vehicle dealer if, after comple-
5 tion of an audit of the dealer's records and within two (2) years of the date
6 of transaction of the vehicle sale or service, the manufacturer or distributor
7 can show, by clear and convincing evidence, that:
8 (a) The claim was intentionally false or fraudulent at the time it was
9 submitted to the manufacturer or distributor; or
10 (b) With respect to a claim under a service incentive program, the repair
11 work was improperly performed in a substandard manner or was unnecessary.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
Moved by Goedde
Seconded by Broadsword
IN THE SENATE
SENATE AMENDMENT TO S.B. NO. 1152
1 AMENDMENTS TO SECTION 1
2 On page 1 of the printed bill, in line 18, following "(30)" insert:
3 "business"; in line 27, following "of a" insert: "denial or a"; in line 28,
4 following "compensation" insert: "if the claim was denied for a dealer's inci-
5 dental failure as set forth in subsection (2) of this section"; delete lines
6 30 through 33 and insert:
7 "(4) A motor vehicle dealer has ninety (90) days after the expiration of
8 a manufacturer or distributor incentive program, or such longer time as pro-
9 vided by the franchise agreement, whichever is greater, to submit a claim for
10 payment or compensation under the program.";
11 in line 36, delete "transaction" and insert: "payment"; and in line 37, delete
12 "sale or service" and insert: "claim".
13 On page 2, delete lines 3 through 11 and insert:
14 "(6) A manufacturer or distributor may make charge-backs to a motor vehi-
15 cle dealer if, after completion of an audit of the dealer's records, the manu-
16 facturer or distributor can show, by a preponderance of the evidence, that:
17 (a) With respect to a claim under a service incentive program, the repair
18 work was improperly performed in a substandard manner or was unnecessary;
19 or
20 (b) The claim is unsubstantiated in accordance with the manufacturer's or
21 distributor's reasonable requirements.
22 (7) Notwithstanding subsections (5) and (6) of this section, a manufac-
23 turer or distributor may make charge-backs to a motor vehicle dealer for fraud
24 at any time permitted by section 5-218, Idaho Code.".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1152, As Amended
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO MOTOR VEHICLE DEALERS AND SALESMEN LICENSING; AMENDING CHAPTER 16,
3 TITLE 49, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 49-1638, IDAHO
4 CODE, TO PROVIDE FOR PAYMENT OF CLAIMS OR OTHER COMPENSATION TO MOTOR
5 VEHICLE DEALERS UNDER A MANUFACTURER INCENTIVE PROGRAM FOR MOTOR VEHICLE
6 DEALERS AND TO PROVIDE CONDITIONS UNDER WHICH A MANUFACTURER OR DISTRIBU-
7 TOR CAN AND CANNOT CHARGE BACK TO A MOTOR VEHICLE DEALER THE AMOUNT OF A
8 CLAIM OR CASH VALUE OF A PRIZE AWARDED TO A DEALER UNDER A MANUFACTURER
9 INCENTIVE PROGRAM.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Chapter 16, Title 49, Idaho Code, be, and the same is
12 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
13 ignated as Section 49-1638, Idaho Code, and to read as follows:
14 49-1638. MANUFACTURER INCENTIVE PROGRAMS FOR MOTOR VEHICLE DEALERS. (1) A
15 manufacturer or distributor shall pay a motor vehicle dealer's claim for pay-
16 ment or other compensation due under a manufacturer incentive program within
17 thirty (30) business days after receiving the claim, unless the claim is dis-
18 approved by written notice, with reasons stated, within thirty (30) business
19 days of receipt of the dealer's claim. A claim that is not disapproved or dis-
20 allowed in writing within thirty (30) business days after the manufacturer or
21 distributor receives the claim is deemed automatically approved.
22 (2) A manufacturer shall not deny a claim based solely on a motor vehicle
23 dealer's incidental failure to comply with a specific claim processing
24 requirement, such as a clerical error or other administrative technicality
25 that does not put into question the legitimacy of the claim.
26 (3) A dealer shall have sixty (60) days from the date of notification by
27 a manufacturer or distributor of a denial or a charge-back to the dealer to
28 resubmit a claim for payment or compensation if the claim was denied for a
29 dealer's incidental failure as set forth in subsection (2) of this section,
30 whether the charge-back was a direct or an indirect transaction.
31 (4) A motor vehicle dealer has ninety (90) days after the expiration of a
32 manufacturer or distributor incentive program, or such longer time as provided
33 by the franchise agreement, whichever is greater, to submit a claim for pay-
34 ment or compensation under the program.
35 (5) Notwithstanding the terms of a franchise agreement or other contract
36 with a dealer and except as provided in subsection (6) of this section, after
37 the expiration of one (1) year after the date of payment of the vehicle claim,
38 a manufacturer or distributor shall not:
39 (a) Charge back to a motor vehicle dealer, whether directly or indi-
40 rectly, the amount of a claim that has been approved and paid by the manu-
41 facturer or distributor under an incentive program;
42 (b) Charge back to a motor vehicle dealer, whether directly or indi-
43 rectly, the cash value of a prize or other thing of value awarded to the
2
1 dealer under an incentive program; or
2 (c) Audit the records of a motor vehicle dealer to determine compliance
3 with the terms of an incentive program.
4 (6) A manufacturer or distributor may make charge-backs to a motor vehi-
5 cle dealer if, after completion of an audit of the dealer's records, the manu-
6 facturer or distributor can show, by a preponderance of the evidence, that:
7 (a) With respect to a claim under a service incentive program, the repair
8 work was improperly performed in a substandard manner or was unnecessary;
9 or
10 (b) The claim is unsubstantiated in accordance with the manufacturer's or
11 distributor's reasonable requirements.
12 (7) Notwithstanding subsections (5) and (6) of this section, a manufac-
13 turer or distributor may make charge-backs to a motor vehicle dealer for fraud
14 at any time permitted by section 5-218, Idaho Code.
STATEMENT OF PURPOSE
RS 16930
The purpose of this legislation is to provide terms for
reimbursement of claims to motor vehicle dealers under a
manufacturer incentive program and to provide a time frame for
submission of such claims.
FISCAL NOTE
There is no fiscal impact.
Contact
Name: Trent Wright, Idaho Automobile Dealers Association
Phone: 853-4668
STATEMENT OF PURPOSE/FISCAL NOTE S 1152