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Bill > LD1296


ME LD1296

ME LD1296
An Act to Amend the Law Governing Watercraft Franchisor Warranty Reimbursements


summary

Introduced
03/25/2025
In Committee
03/25/2025
Crossed Over
06/03/2025
Passed
06/09/2025
Dead
Signed/Enacted/Adopted
06/12/2025

Introduced Session

132nd Legislature

Bill Summary

An Act to Amend the Law Governing Watercraft Franchisor Warranty Reimbursements Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and Whereas, approximately 80% of watercraft sold in Maine are equipped with an outboard motor; and Whereas, the outboard motor manufacturer industry has recently been consolidated to primarily 2 companies that share the market; and Whereas, warranty repairs currently performed on watercraft are reimbursed with a flat rate for the labor performed based upon a manufacturer's estimate of the repair duration, which is not fitting for the marine industry; and Whereas, the upcoming summer months generally correlate with an increase in watercraft warranty repairs; and Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

AI Summary

This bill amends Maine's law governing watercraft warranty reimbursements to provide more fair compensation for franchisees performing warranty repairs. Specifically, the bill requires franchisors (manufacturers) to reimburse franchisees (dealers) at the full retail rate for parts used in warranty repairs, including compensation for any difference between the franchisee's cost and the full retail price of parts. For labor, franchisors must now reimburse franchisees for actual labor performed, which must be reasonable and supported by the franchisee's records, and cannot be less than the retail rate the franchisee typically charges for the same labor when not performing warranty work. The bill's context suggests this change is important because the outboard motor industry is now primarily controlled by two companies, and the current flat-rate reimbursement system does not adequately reflect the complexities of marine industry repairs. The legislation is being enacted as an emergency measure, which means it will take effect immediately upon approval, potentially helping watercraft dealers receive more equitable compensation for warranty repairs during the upcoming summer season when such repairs typically increase.

Committee Categories

Housing and Urban Affairs

Sponsors (10)

Last Action

Governor's Action: Emergency Signed, Jun 12, 2025 (on 06/12/2025)

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