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Page 1 - 132LR2161(03)
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
_____
S.P. 526 - L.D. 1296
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,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 10 MRSA §1197, sub-§1, as enacted by PL 1991, c. 631, is amended to
read:
1. Parts or labor; satisfaction of warranty. If a franchisor requires or permits a
franchisee to perform labor or provide parts to satisfy a warranty created by the franchisor,
the franchisor shall properly and promptly fulfill its warranty obligations and:
A. Reimburse the franchisee at the retail rate customarily charged for any all parts
provided used by the franchisee to satisfy the warranty. If the franchisor provides a part
to the franchisee for a specific warranty repair, the franchisor shall compensate the
franchisee for the difference between the cost of the part to the franchisee and the full
APPROVED
JUNE 12, 2025
BY GOVERNOR
CHAPTER
284
PUBLIC LAW
Page 2 - 132LR2161(03)
retail price of the part, which may not exceed 100% of the total reimbursement cost
under paragraph B of the labor required to perform the repair; and
B. Reimburse the franchisee for any actual labor performed by the franchisee to satisfy
the warranty, which must be reasonable and supported by the franchisee's records.
Reimbursement for labor may not be less than the retail rate customarily charged by
that franchisee for the same labor when not performed to satisfy a warranty. To be
entitled to reimbursement under this section, a franchisee must post in a place
conspicuous to service customers the rate for labor not performed to satisfy a warranty.
Emergency clause. In view of the emergency cited in the preamble, this legislation
takes effect when approved.