BILL REQ. #:  S-0060.3 

Read first time 01/26/2007.   Referred to Committee on Labor, Commerce, Research & Development.

     AN ACT Relating to dealer warranty reimbursements; and amending RCW 46.96.105.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 46.96.105 and 2003 c 21 s 2 are each amended to read as follows:
     (1) Each manufacturer shall specify in its franchise agreement, or in a separate written agreement, with each of its dealers licensed in this state, the dealer's obligation to perform warranty work or service on the manufacturer's products. Each manufacturer shall provide each of its dealers with a schedule of compensation to be paid to the dealer for any warranty work or service, including parts, labor, and diagnostic work, required of the dealer by the manufacturer in connection with the manufacturer's products.
     (2) The compensation may not be less than the rates reasonably charged by the dealer for like services and parts to retail customers of motor homes, as defined in RCW 46.04.305, campers, as defined in RCW 46.04.085, and travel trailers, as defined in RCW 46.04.623. The compensation may not be reduced by the manufacturer for any reason or made conditional on an activity outside the performance of warranty work.
     (3) All claims for warranty work for parts and labor made by dealers under this section shall be submitted to the manufacturer within one year of the date the work was performed. All claims submitted must be paid by the manufacturer within thirty days following receipt, provided the claim has been approved by the manufacturer. The manufacturer has the right to audit claims for warranty work and to charge the dealer for any unsubstantiated, incorrect, or false claims for a period of one year following payment. However, the manufacturer may audit and charge the dealer for any fraudulent claims during any period for which an action for fraud may be commenced under applicable state law.
     (((3))) (4) All claims submitted by dealers on the forms and in the manner specified by the manufacturer shall be either approved or disapproved within thirty days following their receipt. The manufacturer shall notify the dealer in writing of any disapproved claim, and shall set forth the reasons why the claim was not approved. Any claim not specifically disapproved in writing within thirty days following receipt is approved, and the manufacturer is required to pay that claim within thirty days of receipt of the claim.