This bill amends section 60-1438 of the Motor Vehicle Industry Regulation Act in Nebraska, focusing on 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 to perform warranty work. Additionally, the bill stipulates that franchisors cannot unreasonably deny requests from franchisees for modifications to time allowances for warranty repairs or for additional time for diagnostic work. It also clarifies that compensation for parts should be based on the dealer's cost plus markup, while excluding certain maintenance services from the calculation of average percentage markup.

Furthermore, the bill introduces specific guidelines for how compensation for parts is determined, emphasizing that only retail sales not involving warranty repairs should be considered. It establishes that if a franchisor provides parts at no cost for warranty work, they must compensate the dealer based on the dealer's cost plus markup. The bill also outlines the conditions under which a dealer's warranty compensation claims can be denied and sets a six-month timeframe for submitting claims, which must be paid within thirty days of approval. Overall, the amendments aim to enhance the fairness and clarity of compensation practices within the motor vehicle industry in Nebraska.

Statutes affected:
Introduced: 60-1438