HB 2338 Illinois House · 104th Regular Session

AUTO DEALERS-WARRANTY DISCLOSE

Summary
Amends the Motor Vehicle Franchise Act. Provides that a motor vehicle dealer shall provide a consumer with a complete list of all items subject to repair under any warranty agreement that covers a motor vehicle before completing the sale of that motor vehicle. Provides that the disclosure shall include a description of any fees or other charges that the customer will have to pay upon any warranty repair work being performed under the warranty agreement.
Bill status passed 3 of 5 stages cleared
Introduction
Apr 2025
Committee Review
Jul 2025
House Passage
Apr 2025
Senate Passage
Governor
Introduced Apr 10, 2025 Last action Jul 2, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Engrossed · 6 edits · Apr 9, 2025
MODERATE
The bill was amended to shift its legal basis from the Motor Vehicle Franchise Act to the Motor Vehicle Retail Installment Sales Act and renumbered the new section from 6.5 to 9.04. The substantive policy change expands the warranty disclosure requirements to specifically cover third-party warranties (like extended service contracts) rather than just manufacturer warranties, requiring sellers to provide detailed summaries of potential out-of-pocket costs and clarifying that coverage decisions are made by the warranty provider, not the seller.
Scope change
The bill's scope expanded from applying only to manufacturer warranties to explicitly including third-party motor vehicle warranties, such as extended service contracts and vehicle protection plans.
REQUIREMENT

The legal citation for the new section was changed from the Motor Vehicle Franchise Act to the Motor Vehicle Retail Installment Sales Act.

New requirements mandate that sellers provide a written disclosure summarizing specific costs like deductibles, coverage caps, and non-covered services when selling third-party warranties.

New provisions clarify that all claim approvals and coverage determinations for third-party warranties are made solely by the warranty provider, not the seller.

New exemptions were added stating that sellers do not violate the law if the warranty provider denies a claim or makes errors in describing coverage terms.

TECHNICAL

The section number for the new warranty disclosure provision was changed from 6.5 to 9.04.

DEFINITION

A new definition was added for 'third-party motor vehicle warranty' to include extended service contracts and vehicle protection plans provided by entities other than the vehicle manufacturer.

Floor votes · House Apr 9, 2025

How they voted

1160
Passed · 2 other
Total votes 118
Apr 9, 2025
D Democratic78
76 Yea 2
97% Yea
R Republican40
40 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
48
Key actions
10
Committee
18
Amendments
10
Jul 2, 2025
Committee
Senate Floor Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments
upper
Jun 2, 2025
Committee
Rule 3-9(a) / Re-referred to Assignments
upper
May 20, 2025
Introduced
Senate Floor Amendment No. 1 Assignments Refers to Consumer Protection
upper
May 14, 2025
Committee
Senate Floor Amendment No. 1 Referred to Assignments
upper
May 14, 2025
Introduced
Senate Floor Amendment No. 1 Filed with Secretary by Sen. Michael W. Halpin
upper
May 8, 2025
Upper · Passed
Do Pass Consumer Protection; 009-000-000
upper
Apr 23, 2025
Committee
Assigned to Consumer Protection
upper
Apr 23, 2025
Committee
Referred to Assignments
upper
Apr 10, 2025
Introduced
Arrive in Senate
upper
Apr 9, 2025
Amended
House Floor Amendment No. 3 Tabled
lower
Apr 9, 2025
Lower · Passed
Third Reading - Short Debate - Passed 116-000-000
lower
Apr 9, 2025
Lower · Passed
House Floor Amendment No. 4 Adopted
lower
Mar 25, 2025
Lower · Passed
House Floor Amendment No. 4 Recommends Be Adopted Consumer Protection Committee; 008-000-000
lower
Mar 25, 2025
Lower · Passed
House Floor Amendment No. 4 Rules Refers to Consumer Protection Committee
lower
Mar 25, 2025
Lower · Passed
House Floor Amendment No. 3 Rules Refers to Consumer Protection Committee
lower
Mar 24, 2025
Committee
House Floor Amendment No. 4 Referred to Rules Committee
lower
Mar 24, 2025
Introduced
House Floor Amendment No. 4 Filed with Clerk by Rep. Rita Mayfield
lower
Mar 20, 2025
Committee
House Floor Amendment No. 3 Referred to Rules Committee
lower
Mar 20, 2025
Introduced
House Floor Amendment No. 3 Filed with Clerk by Rep. Rita Mayfield
lower
Mar 18, 2025
Amended
House Committee Amendment No. 1 Tabled
lower
Mar 18, 2025
Lower · Passed
Do Pass as Amended / Short Debate Consumer Protection Committee; 009-000-000
lower
Mar 18, 2025
Lower · Passed
House Committee Amendment No. 2 Adopted in Consumer Protection Committee; by Voice Vote
lower
Mar 12, 2025
Lower · Passed
House Committee Amendment No. 2 Rules Refers to Consumer Protection Committee
lower
Mar 11, 2025
Committee
House Committee Amendment No. 2 Referred to Rules Committee
lower
Mar 11, 2025
Introduced
House Committee Amendment No. 2 Filed with Clerk by Rep. Rita Mayfield
lower
Mar 5, 2025
Lower · Passed
House Committee Amendment No. 1 Rules Refers to Consumer Protection Committee
lower
Mar 4, 2025
Committee
House Committee Amendment No. 1 Referred to Rules Committee
lower
Mar 4, 2025
Introduced
House Committee Amendment No. 1 Filed with Clerk by Rep. Rita Mayfield
lower
Feb 25, 2025
Committee
Assigned to Consumer Protection Committee
lower
Feb 4, 2025
Committee
Referred to Rules Committee
lower
2 primary · 5 co-sponsors

Sponsors