SB 398
Modifies provisions relating to the motor vehicle franchise practices act
Sponsor:
LR Number:
1413S.04C
Committee:
Last Action:
4/3/2023 - Formal Calendar S Bills for Perfection
Journal Page:
Title:
SCS SB 398
Effective Date:
August 28, 2023

Current Bill Summary

SCS/SB 398 - This act modifies the Motor Vehicle Franchise Practices Act ("MVFP Act").

This act prohibits certain entities from engaging in the business of selling motor vehicles, except as permitted by the MVFP Act, and specifies parties that shall have standing to enforce the prohibitions. (Section 407.812).

The act also modifies provisions applicable to warranty services. Under the act, compensation for the services is based on rates charged by the franchisee rather than on rates charged by comparable franchisees in the market. (Section 407.828.1-3). Claims not disapproved by the franchisor in writing within 30 days shall be considered approved and paid within 15 days, rather than within 10 days. (Section 407.828.6). The act exempts certain part assemblies from the requirement that franchisors compensate franchisees for recall work in the same manner as warranty work. (Section 407.828.8).

Lastly, the act specifies procedures for franchisees to file complaints with the Administrative Hearing Commission. Franchisees may file claims within 60 days, rather than 30 days, after receiving an adverse decision on a claim under the act. Franchisors shall file an answer to the complaint within 30 days, and a hearing shall be held within 60 days of the franchisee's answer. If the Administrative Hearing Commission finds a franchisor has violated the requirements of the warranty statute, the franchisor shall compensate the franchisee as required by law. (Section 407.828.12).

ERIC VANDER WEERD

Amendments

No Amendments Found.