Brief ⁽¹⁾

SB 586 deals with farm equipment, outdoor power equipment, and lawn and garden equipment dealerships to provide the following:

• Any repair work performed by a dealer for a consumer under the provisions of a manufacturer's express warranty will require the manufacturer to reimburse the dealer at an hourly rate the same as the hourly rate the dealer charges for nonwarranty work.



• The above provisions would not apply to a manufacturer who has a written agreement with a dealer for warranty labor costs as

• a discount in the pricing of the equipment to the dealer, or



• a lump sum payment to the dealer as long as such payment is not less than 5 percent of the suggested retail price of the equipment.

Background

An attorney representing Western Retail Implement and Hardware Association appeared in support of the bill. According to the conferee, the manufacturers contacted about the bill had no objections to the bill. He further indicated that Missouri has enacted similar provisions.

The fiscal note indicates there would be no fiscal impact on state operations.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html