SENATE BILL REPORT

SB 5287

BYSenators Rinehart, Lee, Williams, Smitherman, Anderson and Rasmussen; by request of Attorney General

Revising provisions for motor vehicle warranties.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):

Senate Staff:Charles Woods (786-7452)

AS OF JANUARY 20, 1989

BACKGROUND:

Purchasers of new motor vehicles have been protected by the "lemon law" (Chapter 344, Laws of 1987) since January 1, 1988.  An arbitration system was established through the state Attorney General's office to hear disputes between auto dealers and manufacturers, and consumers whose automobiles are, in some way, defective.  The lemon law program of the Attorney General's office believes that some clarifications are necessary to fully effectuate the intent of the Legislature.

SUMMARY:

Definitions are revised to clarify potentially ambiguous language.  Replacement vehicles must be identical to the condition of the vehicle when originally purchased new.  Repurchase price must include a refund of trade-in value, security deposit, and all lease payments.  Employees and officers of private entities conducting new motor vehicle arbitration proceedings are prohibited from being directly involved with manufacture, distribution, sale, or warranty service of motor vehicles.  Arbitrators are granted subpoena powers.  Consumers shall receive attorney's fees when the manufacturer is represented by counsel.  Personal service of complaints and decisions is provided.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 20, 1989

Effective Date:June 1, 1989