S.B. No. 1917 amends the Occupations Code to provide clearer guidelines for the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work. The bill introduces new definitions, including "goodwill repair" and "routine maintenance," and mandates that manufacturers or distributors establish reasonable requirements for dealers regarding their duties under warranties and recalls. Compensation for these services must be fair and at least equal to what dealers charge retail customers for similar work. Key provisions include a process for dealers to request adjustments to labor and parts rates, timelines for responses from manufacturers, and restrictions on manufacturers charging back payments to dealers unless specific conditions are met.

Additionally, the bill prohibits manufacturers or distributors from recovering compensation due to dealers through separate charges or reduced return reserve allowances and prevents them from imposing extra charges for obtaining technical information or repair assistance. Compensation for parts used in recalls must be based on the greater of the current parts catalog price or the price from the catalog issued within the last 24 months. The bill also ensures that manufacturers cannot create special part numbers that would lower dealer compensation, although they can do so for federal recall tracking purposes. These changes will take effect for work commencing on or after September 1, 2025, while work started before this date will remain under existing law.

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