1.1                          A bill for an act 
  1.2             relating to commerce; regulating farm equipment 
  1.3             suppliers; providing for warranty reimbursement; 
  1.4             proposing coding for new law as Minnesota Statutes, 
  1.5             chapter 80F. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [80F.01] [CITATION.] 
  1.8      This act may be cited as the "Uniform Farm and Equipment 
  1.9   Dealers Warranty Reimbursement Act."  
  1.10     Sec. 2.  [80F.02] [DEFINITIONS.] 
  1.11     Subdivision 1.  [APPLICABILITY.] For the purposes of this 
  1.12  chapter the terms in this section apply. 
  1.13     Subd. 2.  [AUDIT.] "Audit" means a review by a supplier of 
  1.14  a dealer's warranty claims records. 
  1.15     Subd. 3.  [DEALER AGREEMENT.] "Dealer agreement" means an 
  1.16  oral or written contract or agreement of definite or indefinite 
  1.17  duration, between a supplier and an equipment dealer, which 
  1.18  authorizes or requires the equipment dealer to perform services 
  1.19  or supply parts pursuant to a warranty. 
  1.20     Subd. 4.  [EQUIPMENT.] "Equipment" includes agricultural, 
  1.21  construction, utility and industrial, dairy and farmstead 
  1.22  mechanization, logging, outdoor power, and lawn and garden 
  1.23  equipment. 
  1.24     Subd. 5.  [EQUIPMENT DEALER OR DEALER.] "Equipment dealer" 
  1.25  or "dealer" means a person or other entity having a dealer 
  2.1   agreement for selling and retailing agricultural, dairy and 
  2.2   farmstead mechanization, logging, construction, utility and 
  2.3   industrial, outdoor power, and lawn and garden equipment and the 
  2.4   attachments or repair parts thereto. 
  2.5      Subd. 6.  [SUPPLIER.] "Supplier" means a person or other 
  2.6   entity engaged in the manufacturing, assembly, or wholesale 
  2.7   distribution of agricultural, dairy and farmstead mechanization, 
  2.8   logging, construction, utility and industrial, outdoor power, 
  2.9   and lawn and garden equipment and the attachments or repair 
  2.10  parts thereto. The term shall also include any successor in 
  2.11  interest, including a purchaser of assets, or stock or surviving 
  2.12  corporation resulting from a merger, liquidation, or 
  2.13  reorganization of the original supplier issuing the warranty. 
  2.14     Subd. 7.  [WARRANTY CLAIM.] "Warranty claim" means a claim 
  2.15  for payment submitted by an equipment dealer to a supplier for 
  2.16  service or parts provided to a customer pursuant to a warranty, 
  2.17  or pursuant to recall, or modification order issued by the 
  2.18  supplier. 
  2.19     Sec. 3.  [80F.03] [WARRANTY CLAIMS.] 
  2.20     Subdivision 1.  [REASONABLE COMPENSATION FOR SERVICES.] A 
  2.21  dealer agreement between a supplier and an equipment dealer must 
  2.22  provide reasonable warranty claim compensation for diagnostic 
  2.23  work as well as repair service, parts, and labor.  Time 
  2.24  allowances for the diagnosis and performance of warranty work 
  2.25  and service must be reasonable and adequate for the work to be 
  2.26  performed.  The hourly labor rate paid to and the reimbursement 
  2.27  for parts purchased by a dealer for warranty services must not 
  2.28  be less than the rate charged by the dealer for like services to 
  2.29  nonwarranty customers for nonwarranty services and repairs. 
  2.30     Subd. 2.  [TRANSPORTATION ALLOWANCES.] Reimbursement for 
  2.31  the transportation of equipment in need of warranty repair to 
  2.32  the dealership and the return of this equipment to the customer 
  2.33  must be allowed.  This reimbursement must also include the use 
  2.34  of the dealer's service vehicle and labor for warranty services 
  2.35  performed on the customer's farm or location.  These 
  2.36  reimbursements are limited to customers who are in the 
  3.1   dealership's area of responsibility as identified by the 
  3.2   supplier.  The computation for this allowance must be on an 
  3.3   hourly basis, which includes labor and vehicles.  The hourly 
  3.4   rate must not be less than the rate charged by the dealer for 
  3.5   like services to nonwarranty customers for transportation of 
  3.6   equipment or services at the farm or location. 
  3.7      Subd. 3.  [PAYMENT OF CLAIMS.] All claims made by retail 
  3.8   equipment dealers pursuant to this section for labor and parts 
  3.9   must be paid within 30 days of their approval.  Claims must be 
  3.10  either approved or disapproved within 30 days after they are 
  3.11  submitted to the supplier in the manner and on the forms it 
  3.12  prescribes.  Any claims not specifically disapproved in writing 
  3.13  within 30 days after the supplier receives them are considered 
  3.14  to be approved and payment must follow within 30 days.  The 
  3.15  supplier retains the right to audit the claims for a period of 
  3.16  one year and to charge back any amounts paid on claims not 
  3.17  reasonably substantiated or fraudulent claims.  The audit and 
  3.18  charge back provisions of this subdivision also apply to all 
  3.19  other incentive and reimbursement programs that are subject to 
  3.20  audit by the supplier. 
  3.21     Subd. 4.  [RELIEF.] (a) In the event that the supplier 
  3.22  fails to make payment according to the terms of this act, 
  3.23  wrongfully rejects a warranty claim, or violates any other 
  3.24  provision of this act, a dealer may bring an action in a court 
  3.25  of competent jurisdiction to obtain payment of a warranty claim 
  3.26  submitted to a supplier. 
  3.27     (b) In the event that the court finds that the supplier has 
  3.28  failed to make payment according to the terms of this act, has 
  3.29  wrongfully rejected a warranty claim, or has violated any other 
  3.30  provision of this act, the court shall award the equipment 
  3.31  dealer costs and reasonable attorney's fees. 
  3.32     Sec. 4.  [EFFECTIVE DATE.] 
  3.33     This act is effective on August 1, 1999, and applies to all 
  3.34  warranty claims submitted on or after that date.