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 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 outlines the obligations of manufacturers and distributors, including the requirement to perform warranty obligations and provide timely compensation for repairs. It specifies conditions under which a dealer's warranty compensation claim may be denied and establishes a timeline for claims processing. The bill also allows for audits of claims by manufacturers and sets forth the rights of dealers in the event of a claim denial. Lastly, the original section 60-1438 is repealed, consolidating the updated provisions into the law.

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