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Legislative Year: 2024 Change
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Bill Detail: SB24-192

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Title Motor Vehicle Lemon Law
Status Introduced In Senate - Assigned to Business, Labor, & Technology (04/01/2024)
Bill Subjects
  • Transportation & Motor Vehicles
House Sponsors
Senate Sponsors D. Michaelson Jenet (D)
House Committee
Senate Committee Business, Labor and Technology
Date Introduced 04/01/2024
Summary

Current law, which is commonly known as the lemon law,
requires a manufacturer, a manufacturer's agent, or a manufacturer's
authorized dealer (dealer) to replace or buy back a motor vehicle if the
consumer notified the dealer within the earlier of the warranty period or
one year after original delivery of the motor vehicle (notification time),
and the motor vehicle underwent a reasonable number of attempts to
repair. The number of repairs are considered reasonable if:
  • The motor vehicle was out of service for repairs for a
cumulative total of 30 or more business days; or
  • The dealer tried unsuccessfully to repair the motor vehicle
4 or more times.
The bill:
  • Expands the lemon law to cover motor vehicles affected by
safety-based nonconformities;
  • Expands the notification time to include the earlier of the
first 36,000 miles or 3 years after original delivery of the
motor vehicle;
  • Clarifies that, for any claim a consumer raises against a
manufacturer, the lemon law is not an affirmative defense
against the consumer's claim when the statute of limitations
is tolled for a period of time after the consumer has
presented a claim and submitted the motor vehicle for
repair but before the threshold for cure has been met;
  • Lowers the number of out-of-service business days from 30
to 21; and
  • Lowers the number of required attempts to repair from 4 to
3.
Current law requires the manufacturer to be notified of a defect
and be given an opportunity to cure the defect in order to be subject to the
reasonable repairs presumption. The bill adds a 10-day limit on the
opportunity to cure the defect.
Current law allows a dealer, when buying back a motor vehicle, to
deduct a reasonable allowance for use. The bill sets a formula for
determining the reasonable allowance for use.
Current law exempts from the lemon law motor vehicles that have
a problem that does not affect the market value of the motor vehicle. The
bill adds that the problem must not affect the safety of the motor vehicle
to qualify for the exemption.
The bill changes the statute of limitations from the earlier of 6
months after the expiration of a warranty or within one year after the
original delivery of the motor vehicle to 42 months after the original
delivery.
The bill requires a dealer to allow an agent of a purchaser to
inspect a motor vehicle unless the dealer provides a 7-day free-look
period in which the purchaser may return the motor vehicle and receive
a refund of all money paid to the dealer to purchase the motor vehicle.
The dealer must notify purchasers of this inspection right. The dealer is
required to give certain notices that the motor vehicle was returned,
including notifying the department of revenue (department). The
department must put a brand on the title to notify subsequent purchasers.
Failing to comply with the bill is a ground for discipline for a
manufacturer, distributor, motor vehicle dealer, wholesale motor vehicle
auction dealer, wholesaler, buyer agent, used motor vehicle dealer
licensee, motor vehicle salesperson, or business disposal licensee.

Committee Reports
with Amendments
None
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (04/12/2024) (most recent)  
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