Warranty reimbursement measure passes Maryland House and Senate Committee!

Warranty reimbursement measure passes Maryland House and Senate Committee!

Passage by the General Assembly appears imminent!

We are most pleased to report that the warranty service reimbursement legislation (SB 687/HB 1275), supported by MADA and WANADA, passed the House of Delegates unanimously and yesterday received a favorable report from the Senate Judicial Proceedings Committee. Specifically, HB 1275 that passed in the House was reconciled with SB 687 by the Senate JPR Committee, which passed it along with a favorable report to the full Senate where it is now. The legislation, introduced by Sen. Jamie Raskin and Del. Barbara Frush in the Senate and House, respectively, will facilitate dealer claims to manufacturers for fair reimbursement on warranty service the dealers perform for consumers on behalf of their OEMs that is more reflective of the market. The legislation, collaterally, opens the door for Maryland dealers to use alternative local vendors for manufacturer-required programs if the work can be performed to manufacturer specifications. Using local vendors not only should save dealers money, but should support Marylands economy.

Pursuant to a dealer group agreement with automakers, this helpful franchise relations measure is expected to pass the full Senate as it did in the House perhaps as soon as today. WANADA sent a letter yesterday to the Senate JPR Committee chairman, Brian Frosh, thanking him for his committees support and confirming the accord between dealers and automaker groups.

In other Maryland legislative news, a bill to raise the minimum wage has passed the House of Delegates and appears likely to pass the Senate. On the tax front, legislators dont seem interested in changing or modifying the storm water fee, a.k.a. the controversial rain tax that passed in an earlier session.

A bill to establish a motor vehicle dealer board in Maryland, like the one in Virginia and other states, will likely need to be sorted out in next years legislature. In the interim, MADA with WANADAs support, will be speaking with the Maryland Motor Vehicle Administration about the establishment of a dealer advisory board.

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