This bill prohibits auto dealers from selling, leasing, or loaning used vehicles with open safety recalls to consumers until the manufacturer has fixed the defect. The law applies to dealers who sell at least five vehicles per year and includes limited exceptions for situations where recall information wasn't publicly available at the time of sale, wholesale transactions, and junk vehicles. To incentivize compliance, the bill requires manufacturers to reimburse dealers at least one percent of the vehicle's fair market value per month (prorated daily) if they fail to provide a repair remedy within 60 days of issuing a recall notice, with reimbursement capped at the vehicle's total fair market value. The legislation takes effect one year after enactment, giving dealers and manufacturers time to adjust their practices.
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