The bill amends section 60-1438 of the Motor Vehicle Industry Regulation Act to enhance the compensation structure for new motor vehicle dealers regarding diagnostic work and parts. Key changes include the removal of the term "reasonable" in relation to compensation for diagnostic work, replacing it with a requirement for "adequate" time allowances for qualified technicians. Additionally, franchisors are now prohibited from unreasonably denying requests from franchisees for modifications to time allowances for warranty repairs or diagnostic work. The bill also clarifies that compensation for parts must be based on the dealer's cost plus markup, and it establishes a process for dealers to submit repair orders to determine average percentage markup.

Furthermore, the bill introduces provisions that ensure manufacturers or distributors cannot deny warranty claims without valid reasons, such as lack of documentation or noncompliance with warranty terms. It mandates that claims for warranty compensation be processed within specific timeframes and allows for audits of claims for up to four years if fraud is suspected. The bill also specifies that the warranty obligations apply to manufacturers of certain vehicle components and explicitly states that these provisions do not apply to recreational vehicles. The original section 60-1438 is repealed as part of this legislative update.

Statutes affected:
Introduced: 60-1438
Final Reading: 60-1438
Slip Law: 60-1438