HOUSE BILL No. 4614 April 10, 1997, Introduced by Reps. Brown, Freeman, Schauer, Martinez, Varga, Emerson, Schroer, Mans, Parks, Agee, Tesanovich, Hanley, Schermesser, Willard, Goschka, Kelly, Bogardus, Rison, Quarles, Griffin, Brewer, Hale, Gire, Harder, Curtis, Dobronski, Wetters, Baird, DeHart, Law, Gagliardi, McBryde, Murphy, Wojno, Price, Brackenridge and LaForge and referred to the Committee on Consumer Protection. A bill to amend 1981 PA 118, entitled "An act to regulate motor vehicle manufacturers, distributors, wholesalers, dealers, and their representatives; to regulate dealings between manufacturers and distributors or wholesalers and their dealers; to regulate dealings between manufacturers, distributors, wholesalers, dealers, and consumers; to prohibit unfair practices; to provide remedies and penalties; and to repeal certain acts and parts of acts," by amending section 2 (MCL 445.1562), as amended by 1983 PA 188, and by adding sections 17a and 17b. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 2. (1) "ADJUSTMENT PROGRAM" MEANS A PLAN IMPLEMENTED 2 BY A MANUFACTURER OR DISTRIBUTOR FOR THE REPAIR OF A MOTOR VEHI- 3 CLE OR REPLACEMENT OF A MOTOR VEHICLE PART THAT IS NOT COVERED BY 4 A WARRANTY, WHEREBY THE MANUFACTURER OR DISTRIBUTOR PAYS ALL OR 5 ANY PART OF THE REPAIR OR REPLACEMENT COST, OR REIMBURSES THE 6 MOTOR VEHICLE CONSUMER FOR THAT COST. ADJUSTMENT PROGRAM DOES 7 NOT INCLUDE SERVICES PROVIDED UNDER A SAFETY OR EMISSION-RELATED 02114'97 DMS 2 1 RECALL PROGRAM, OR ADJUSTMENTS MADE BY A MANUFACTURER OR 2 DISTRIBUTOR ON A CASE-BY-CASE BASIS. 3 (2)(1)"Closed dealership" means a new motor vehicle 4 dealer whose dealer agreement has been terminated, canceled, dis- 5 continued, or not renewed. 6 (3) "CONSUMER" MEANS THE LESSEE OR PURCHASER, OTHER THAN A 7 PURCHASER FOR RESALE, OF A MOTOR VEHICLE. CONSUMER INCLUDES A 8 PERSON TO WHOM A MOTOR VEHICLE IS TRANSFERRED. 9 (4)(2)"Dealer agreement" means the agreement or contract 10 in writing between a manufacturer, distributor, and a new motor 11 vehicle dealer, which purports to establish the legal rights and 12 obligations of the parties to the agreement or contract with 13 regard to the purchase and sale of new motor vehicles and acces- 14 sories for motor vehicles. 15 (5)(3)"Designated family member" means the spouse, 16 child, grandchild, parent, brother, or sister of a deceased new 17 motor vehicle dealer who is entitled to inherit the deceased 18 dealer's ownership interest in the new motor vehicle dealership 19 under the terms of the dealer's will, or who has otherwise been 20 designated in writing by a deceased dealer to succeed the 21 deceased dealer in the new motor vehicle dealership, or is enti- 22 tled to inherit under the laws of intestate succession of this 23 state. With respect to an incapacitated new motor vehicle 24 dealer, the term means the person appointed by a court as the 25 legal representative of the new motor vehicle dealer's property. 26 The term also includes the appointed and qualified personal 27 representative and the testamentary trustee of a deceased new 02114'97 3 1 motor vehicle dealer. However, the term shall mean only that 2 designated successor nominated by the new motor vehicle dealer in 3 a written document filed by the dealer with the manufacturer or 4 distributor, if such a document is filed. 5 SEC. 17A. (1) A MANUFACTURER OR DISTRIBUTOR WHO ESTABLISHES 6 AN ADJUSTMENT PROGRAM SHALL DO ALL OF THE FOLLOWING: 7 (A) WITHIN 30 DAYS AFTER ESTABLISHING THE PROGRAM, PROVIDE 8 ITS NEW CAR DEALERS WITH A WRITTEN NOTICE THAT IDENTIFIES THE 9 SPECIFIC TERMS AND CONDITIONS OF THE ADJUSTMENT PROGRAM. 10 (B) WITHIN 90 DAYS AFTER ESTABLISHING THE PROGRAM, PROVIDE 11 EACH CONSUMER AFFECTED BY THE ADJUSTMENT PROGRAM WITH A WRITTEN 12 NOTICE BY FIRST-CLASS MAIL THAT INCLUDES THE REASONS FOR THE 13 ADJUSTMENT PROGRAM AND THE SPECIFIC TERMS AND CONDITIONS OF THAT 14 PROGRAM. 15 (C) UPON THE REQUEST OF A CONSUMER, PROVIDE ANY DOCUMENT 16 ISSUED BY THE DISTRIBUTOR OR MANUFACTURER THAT RELATES TO THE 17 ADJUSTMENT PROGRAM AND THE REASONS FOR IT. 18 (D) IMPLEMENT AND FOLLOW PROCEDURES TO ENSURE THAT EACH CON- 19 SUMER WHO INCURS EXPENSES FOR THOSE REPAIR OR REPLACEMENT COSTS 20 COVERED BY THE ADJUSTMENT PROGRAM RECEIVES REIMBURSEMENT FOR THE 21 EXPENSES THAT WOULD HAVE BEEN PAID BY THE MANUFACTURER OR DIS- 22 TRIBUTOR UNDER THE ADJUSTMENT PROGRAM. 23 (2) A CONSUMER WHO SEEKS REIMBURSEMENT OF EXPENSES UNDER 24 SUBSECTION (1) SHALL SUBMIT A WRITTEN REQUEST FOR REIMBURSEMENT 25 TO THE MANUFACTURER OR DISTRIBUTOR WITHIN 2 YEARS AFTER THE DATE 26 THE CONSUMER PAID FOR THE REPAIR OR REPLACEMENT DESCRIBED IN 27 SUBSECTION (1). 02114'97 4 1 (3) WITHIN 21 BUSINESS DAYS AFTER RECEIVING A REQUEST FOR 2 REIMBURSEMENT UNDER SUBSECTION (2), A MANUFACTURER OR DISTRIBUTOR 3 SHALL PROVIDE THE REQUESTING CONSUMER WITH WRITTEN NOTICE OF 4 WHETHER THE CLAIM IS ACCEPTED OR DENIED. IF THE CLAIM IS DENIED, 5 THE MANUFACTURER SHALL SPECIFY IN WRITING THE REASONS FOR THE 6 DENIAL. 7 SEC. 17B. (1) AT THE TIME OF SALE OF A NEW MOTOR VEHICLE, A 8 NEW MOTOR VEHICLE DEALER SHALL PROVIDE A CONSUMER WITH A WRITTEN 9 NOTICE THAT STATES THE FOLLOWING IN SUBSTANTIALLY THE FOLLOWING 10 FORM: 11 "SOMETIMES (INSERT MANUFACTURER'S NAME) OFFERS A SPECIAL 12 ADJUSTMENT PROGRAM TO PAY ALL OR PART OF THE COST OF CERTAIN 13 REPAIRS BEYOND THE TERM OF A WARRANTY. CHECK WITH YOUR DEALER TO 14 DETERMINE WHETHER ANY ADJUSTMENT PROGRAM IS APPLICABLE TO YOUR 15 MOTOR VEHICLE.". 16 (2) IF A CONSUMER REQUESTS FROM A NEW MOTOR VEHICLE DEALER A 17 MOTOR VEHICLE REPAIR OR REPLACEMENT PART THAT IS AFFECTED BY AN 18 ADJUSTMENT PROGRAM, THE DEALER TO WHOM THE REQUEST IS MADE SHALL 19 NOTIFY THE CONSUMER OF THE TERMS AND CONDITIONS OF THAT ADJUST- 20 MENT PROGRAM. 21 (3) A NEW CAR DEALER SHALL NOT CHARGE A CONSUMER FOR ALL OR 22 A PORTION OF A REPAIR OR REPLACEMENT PART COST THAT IS TO BE PAID 23 BY A MANUFACTURER OR DISTRIBUTOR UNDER AN ADJUSTMENT PROGRAM. 24 THIS SUBSECTION DOES NOT APPLY IF THE NEW CAR DEALER DOES NOT 25 RECEIVE NOTICE OF THE ADJUSTMENT PROGRAM. 26 (4) IN ADDITION TO OTHER REMEDIES AUTHORIZED UNDER THIS ACT, 27 A CONSUMER WHO SUFFERS A LOSS AS A RESULT OF A VIOLATION OF 02114'97 5 1 SUBSECTION (2) OR (3) MAY BRING AN ACTION TO RECOVER ACTUAL 2 DAMAGES OR $2,500.00, WHICHEVER IS GREATER, PLUS REASONABLE 3 ATTORNEY FEES. 02114'97 Final page. 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