8. State-certified arbitration. "State-certified arbitration" means the informal dispute settlement procedure administered by the Department of the Attorney General that arbitrates consumer complaints dealing with new snowmobiles that may be so defective as to qualify for equitable relief under this chapter.

§1199-A. Application; scope; construction

1. Application.__This chapter applies to snowmobiles operated in this State.

2. Consumer rights.__This chapter does not in any way limit the rights or remedies that are otherwise available to a consumer under any other law.

3. Franchisees.__This chapter does not in any way limit the rights or remedies of franchisees under this chapter or other applicable law.

4. Waivers void.__An agreement entered into by a consumer that waives, limits or disclaims the rights set forth in this chapter is void as contrary to public policy.

§1199-B. Rights and duties

1. Repair of nonconformities.__If a new snowmobile does not conform to all express warranties, the manufacturer, its agent or authorized dealer shall make those repairs necessary to conform the snowmobile to the express warranties if the consumer reports the nonconformity to the manufacturer, its agent or authorized dealer during the term of the express warranties, within a period of 2 years following the date of original delivery of the snowmobile to a consumer or during the first 50 hours of operation, whichever is the earlier date.__This obligation exists even if the repairs are made after the expiration of the appropriate time period.

2. Failure to make effective repair. If the manufacturer, its agent or authorized dealer is unable to conform the snowmobile to an applicable express warranty by repairing or correcting a defect or condition, or combination of defects or conditions, that substantially impairs the use, safety or value of the snowmobile after a reasonable number of attempts, the manufacturer shall either replace the snowmobile with a comparable new snowmobile or accept return of the snowmobile from the consumer and make a refund to the consumer and lienholder, if any, as their interests may appear.__The consumer may reject any offered replacement and receive instead a refund.__The refund must consist of the following items, less a reasonable allowance for use of the snowmobile:

A.__The full purchase price including any paid finance charges on the purchased snowmobile;

B. All collateral charges, including, but not limited to, sales tax, license and registration fees and similar government charges; and

C.__Costs incurred by the consumer for towing and storage of the snowmobile while the snowmobile was out of service by reason of repair.

The provisions of this subsection do not affect the obligations of a consumer under a loan or sales contract or the secured interest of a secured party.__The secured party shall consent to the replacement of the security interest with a corresponding security interest on a replacement snowmobile that is accepted by the consumer in exchange for the original snowmobile, if the replacement snowmobile is comparable in value to the original snowmobile.__If, for any reason, the security interest in the new snowmobile having a defect or condition is not able to be replaced with a corresponding security interest on a replacement snowmobile accepted by the consumer, the consumer shall accept a refund.__Refunds required under this subsection must be made to the consumer and the secured party, if any, as their interests exist at the time the refund is to be made.

3. Reasonable number of attempts; presumption.__There is a presumption that a reasonable number of attempts have been undertaken to conform a snowmobile to the applicable express warranties if:

A.__The same nonconformity has been subject to repair 3 or more times by the manufacturer, its agent or authorized dealer within the express warranty term, during the period of 2 years following the date of original delivery of the snowmobile to a consumer or during the first 50 hours of operation, whichever is the earlier date, and at least 2 of those times the same agent or dealer attempted the repair but the nonconformity continues to exist; or

B.__The snowmobile is out of service by reason of repair by the manufacturer, its agent or authorized dealer of any defect or condition or combination of defects for a cumulative total of 15 or more business days during that warranty term or the appropriate time period, whichever is the earlier date.

4.__Final opportunity to repair.__If the manufacturer, its agent or authorized dealer has been unable to make the repairs necessary to conform the snowmobile to the express warranties, the consumer shall notify, in writing, the manufacturer, its agent or authorized dealer of the consumer's desire for a refund or replacement.__For the 7 business days following receipt of this notice by the manufacturer, its agent or authorized dealer, the manufacturer, its agent or authorized dealer has a final opportunity to correct or repair any nonconformities.__This final repair effort must be at a repair facility that is reasonably accessible to the consumer. This repair effort does not stay the time period within which the manufacturer must provide an arbitration hearing pursuant to section 1199-C.

5. Time limit; extension.__The term of an express warranty, the one-year and 2-year periods following delivery and the 15-day period provided in subsection 3, paragraph B must be extended by any period of time during which repair services are not available to the consumer because of a war, invasion or strike or fire, flood or other natural disaster.

6. Dealer liability.__This chapter may not be construed as imposing a liability on a dealer or creating a cause of action by a consumer against a dealer under this section, except regarding any written express warranties made by the dealer apart from the manufacturer's own warranties.

7. Disclosure of notice requirement.__A consumer may not be required to notify the manufacturer of a claim under this section unless the manufacturer has clearly and conspicuously disclosed to the consumer, in the warranty or owner's manual, that written notification of the nonconformity is required before the consumer is eligible for a refund or replacement of the snowmobile.__The manufacturer shall include with the warranty or owner's manual the name and address to which the consumer shall send the written notification.

8.__Notification of dealer.__Consumers may also satisfy a manufacturer's notice requirement by notifying in writing the authorized dealer of a claim under this section.__The dealer shall act as the manufacturer's agent and immediately communicate to the manufacturer the consumer's claim.

9. Disclosure at time of resale.__A snowmobile that is returned to the manufacturer under subsection 2 may not be resold by the manufacturer or a dealer without clear and conspicuous written disclosure to any subsequent purchaser, whether that purchaser is a consumer or a dealer, of the following information:

A. That the snowmobile was returned to the manufacturer under this chapter;

B. That the snowmobile did not conform to the manufacturer's express warranties; and

C.__The ways in which the snowmobile did not conform to the manufacturer's express warranties.

§1199-C. Affirmative defense and dispute settlement

1.__Affirmative defense.__It is an affirmative defense to a claim under this chapter that:

A.__An alleged nonconformity does not substantially impair the use, safety or value of the snowmobile; or

B.__A nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of a snowmobile by someone other than the manufacturer, its agents or authorized dealers since delivery to the consumer.

2.__Informal dispute settlement. If a manufacturer has established an informal dispute settlement procedure that complies in all respects with the provisions of 16 Code of Federal Regulations, Part 703, as from time to time amended, the provisions of section 1199-B, subsection 2 concerning refunds and replacements do not apply to a consumer who has not first resorted to that procedure or to state-certified arbitration. This requirement must be satisfied 40 days after notification to the informal dispute settlement procedure of the dispute or when the procedure's duties under 16 Code of Federal Regulations, Part 703.5 (d) are completed, whichever occurs sooner.

3.__Unfair or deceptive trade practice.__A violation of a provision of this chapter is considered prima facie evidence of an unfair or deceptive trade practice under Title 5, chapter 10.

4.__Attorney's fees.__In the case of a consumer's successful action to enforce liability under this chapter, a court may award reasonable attorney's fees and costs incurred in connection with the action.

§1199-D. State snowmobile dispute arbitration and mediation

1. Neutral new snowmobile arbitration.__A manufacturer shall submit to state-certified, new snowmobile arbitration if arbitration is requested by a consumer within 2 years from the date of original delivery to the consumer of a new snowmobile or during the first 50 hours of operation, whichever comes first.__ State-certified arbitration must be performed by one or more neutral arbitrators selected by the Department of the Attorney General operating in accordance with the rules adopted pursuant to this chapter.__The Attorney General may contract with an independent entity to provide arbitration or the Attorney General's office may appoint neutral arbitrators. Each party to an arbitration is entitled to one rejection of a proposed arbitrator.

2. Written findings.__An arbitration must result in a written finding of whether the snowmobile in dispute meets the standards set forth by this chapter for a snowmobile that is required to be replaced or for which a refund is required. This finding must be issued within 45 days of receipt by the Department of the Attorney General of a properly completed written request by a consumer for state-certified arbitration under this section.__All findings of fact issuing from a state-certified arbitration must be taken as admissible evidence of whether the standards set forth in this chapter for a snowmobile required to be replaced or for which a refund is required have been met in any subsequent action brought by either party ensuing from the matter considered in the arbitration.__The finding reporting date may be extended by 5 days if the arbitrator seeks an independent evaluation of the snowmobile.

3. Rules.__The Department of the Attorney General shall adopt rules governing the proceedings of state-certified arbitration that will promote fairness and efficiency.__These rules must include, but are not limited to, a requirement of the personal objectivity of each arbitrator in the dispute that the arbitrator will hear and the protection of the right of each party to present its case and to be in attendance during any presentation made by the other party.__Rules adopted pursuant to this section are major substantive rules as defined in Title 5, chapter 375, subchapter II-A.

4. Consumer arbitration relief.__If a snowmobile is found by state-certified arbitration to have met the standards set forth in section 1199-B, subsection 2 for a snowmobile required to be replaced or for which a refund is required to be made and if the manufacturer of the snowmobile is found to have failed to provide the refund or replacement as required, the manufacturer shall, within 21 days from the receipt of a finding, deliver the refund or replacement, including the costs and collateral charges set forth in section 1199-B, subsection 2, or appeal the finding in Superior Court.__For good cause, a manufacturer may seek from the Department of the Attorney General an extension of the time within which it must deliver to the consumer a replacement snowmobile.

5. Appeal of arbitration decision.__An appeal by a manufacturer or the consumer of the arbitrator's findings may not be heard unless the petition for appeal is filed with the Superior Court of the county in which the sale occurred, within 21 days of issuance of the finding of the state-certified arbitration.

In the event that a state-certified arbitration resulting in an award of a refund or replacement is upheld by the court, recovery by the consumer may include continuing damages up to the amount of $25 per day for each day subsequent to the day on which the snowmobile was returned to the manufacturer, pursuant to section 1199-B, that the snowmobile was out of use as a direct result of any nonconformity not issuing from owner negligence, accident, vandalism or any attempt to repair or substantially modify the snowmobile by a person other than the manufacturer, its agent or authorized dealer, provided that the manufacturer did not make a comparable snowmobile available to the consumer free of charge.

In addition to any other recovery, a prevailing consumer must be awarded reasonable attorney's fees and costs.__If the court finds that the manufacturer did not have any reasonable basis for its appeal or that the appeal was frivolous, the court shall double the amount of the total award to the consumer.

6. Consumer's rights if arbitrator denies relief.__The provisions of this chapter may not be construed to limit or restrict in any way the rights or remedies provided to consumers under this chapter or any other state law.__In addition, if any consumer is dissatisfied with any finding of state-certified arbitration, the consumer has the right to apply to the manufacturer's informal dispute settlement procedure, if the consumer has not already done so, or may appeal that finding to the Superior Court of the county in which the sale occurred, within 21 days of the decision.

7. Disclosure of consumer lemon law rights.__A clear and conspicuous disclosure of the rights of the consumer under this chapter must be provided by the manufacturer to the consumer along with ownership manual materials.__The form and manner of these notices must be prescribed by rule of the Department of the Attorney General.__Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

8. Manufacturer's failure to abide by arbitrator's decision.__ The failure of a manufacturer either to abide by the decision of state-certified arbitration or to file a timely appeal entitles a prevailing consumer who has brought an action to enforce this chapter to an award of no less than 2 times the original award, unless the manufacturer can prove that the failure was beyond the manufacturer's control or can show it was the result of a written agreement with the consumer.

9. Consumer request for information.__Upon request from the consumer, the manufacturer, its agent or authorized dealer shall provide a copy of all repair records for the consumer's snowmobile and all reports relating to that snowmobile, including reports by the manufacturer, its agent or authorized dealer concerning any technical reports, bulletins or notices issued by the manufacturer regarding the specific make and model of the consumer's new snowmobile as it pertains to any material, feature to component or to the performance of the snowmobile.

10.__Penalties.__It is prima facie evidence of an unfair trade practice under Title 5, chapter 10 for a manufacturer, within 21 days of receipt of a finding in favor of the consumer in state- certified arbitration, to fail to appeal the finding and not deliver a refund or replacement snowmobile or not receive from the Department of the Attorney General an extension of time for delivery of the replacement snowmobile.

11.__Arbitration and mediation account.__To defray the costs incurred by the Department of the Attorney General in resolving disputes through state-certified snowmobile arbitration, a $1 state-certified arbitration fee must be collected by the authorized new snowmobile dealer from the purchaser as part of each new snowmobile sale agreement.

The Secretary of State shall adopt rules to implement this subsection.__The rules must provide that the fee imposed by this subsection must be forwarded annually by the dealer or its successor to the Secretary of State and deposited in the General Fund.__At the end of each fiscal year, the Department of the Attorney General shall prepare a report listing the money generated by these fees during the fiscal year and the expenses incurred in administering state-certified new snowmobile arbitration established under this section.__Rules adopted pursuant to this subsection are major substantive rules as defined in Title 5, chapter 375, subchapter II-A.

SUMMARY

This bill establishes a "lemon law" governing the sale of new snowmobiles in the State. It also establishes state-certified arbitration for disputes over new snowmobiles.