Amends TCA Title 43; Title 47, Chapter 18 and Title 55.

Under the present law Uniform Commercial Code, a sales contract generally implies warranties of merchantability and fitness for a particular purpose unless such warranties are excluded or modified. Additionally, present law requires certain warranties for particular types of products, such as the "Lemon Law" for sales of new motor vehicles. This bill requires a manufacturer to replace farm machinery with comparable farm machinery or accept return of the farm machinery from a consumer and refund to the consumer the full purchase price and related repair costs specific to the machinery, less a reasonable allowance for use and a reasonable offset for physical damage to the farm machinery caused by the consumer, if: (1) The consumer notifies the manufacturer, distributor, or authorized dealer that a piece of farm machinery does not conform to an applicable express warranty or manufacturer's warranty during the quality assurance period. For purposes of this bill, the quality assurance period is the earliest of 12 months after the date of delivery of new farm machinery to a consumer, 12 months after the date of delivery of any comparable farm machinery to a consumer, or after the first 600 hours of operation of the farm machinery by a consumer; (2) The nonconformity substantially impairs the use of the farm machinery; and (3) The manufacturer, its agent, the distributor, or the authorized dealer cannot conform the farm machinery to an applicable express warranty or manufacturer's warranty after a reasonable number of repair attempts. The farm machinery to which the warranty required by this bill will apply is self-propelled equipment or machinery primarily used for agricultural purposes purchased or leased by a consumer for the first time from a manufacturer, distributor, or authorized dealer, but does not include Class I and Class II off-highway vehicles, ATVs, equipment under 25 horsepower, lawn tractors, or lawn mowers. It will be an affirmative defense to a claim under this bill that: (1) A defect or condition does not substantially impair the use, value, or safety of the farm machinery; (2) A nonconformity is the result of an accident, abuse, neglect, or unauthorized modification of the farm machinery by a person other than the manufacturer, an agent of a manufacturer, the distributor, or an authorized dealer; or (3) The consumer did not file a claim in good faith. This bill creates a cause of action whereby a consumer may seek enforcement of this bill's provisions in court. The statute of limitations for actions brought pursuant to this bill is two years after the date the consumer first reports a nonconformity to a manufacturer, an agent of a manufacturer, or an authorized dealer. In an action brought pursuant to this bill, the court is authorized to award a prevailing plaintiff costs and expenses, including attorney's fees, connected to the commencement and prosecution of the action. This bill specifies that it does not limit the rights or remedies available to a consumer under any other applicable law. This bill also specifies that it does not prohibit parties from attempting to resolve an issue or claim through mediation, prior to the filing of a legal action under this bill. ON MARCH 25, 2021, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 830, AS AMENDED. AMENDMENT #1 specifies, in regard to the farm machinery to which the bill applies, that it is equipment or machinery primarily "designed and used," instead of "used" for agricultural purposes. This amendment also removes this bill's provision whereby farm machinery does not include equipment under 25 horsepower. Also, the bill as introduced requires the consumer to furnish clear title to, and possession of, the nonconforming farm machinery to the manufacturer, distributor, or authorized dealer at the time of a refund or replacement. This amendment removes the requirement that the consumer furnish clear title and instead provides that if a refund is made, then the refund must be made to the consumer, and lien holder or holder of a security interest, if any, as their interest may appear. If a replacement is made, then a consumer, lien holder, or lessor must furnish clear title to, and possession of, the farm machinery to the manufacturer, distributor, or authorized dealer. ON APRIL 15, 2021, THE SENATE SUBSTITUTED HOUSE BILL 830 FOR SENATE BILL 831, ADOPTED AMENDMENT #1, AND PASSED HOUSE BILL 830, AS AMENDED. AMENDMENT #1 defines "clear title" for purposes of this bill as amended as legal ownership free from a perfected security interest or other perfected lien. ON APRIL 26, 2021, THE HOUSE LIFTED THE TABLING MOTION, RECONSIDERED ITS ACTION IN CONCURRING IN SENATE AMENDMENT #1, AND RETURNED HOUSE BILL 830 TO THE SENATE. ON APRIL 28, 2021, THE SENATE LIFTED THE TABLING MOTION, RECONSIDERED ITS ACTION IN PASSING HOUSE BILL 830, WITHDREW SENATE AMENDMENT #1, ADOPTED SENATE AMENDMENT #2, AND PASSED HOUSE BILL 830, AS AMENDED. AMENDMENT #2 is substantively the same as Senate Amendment #1 but corrects a typographical error.