The bill amends existing laws regarding compensation for warranty repairs performed by new vehicle dealers. It allows these dealers to establish their own hourly labor rates and retail parts markup rates for warranty repairs, provided that these rates are reasonable and comply with specified requirements. The bill outlines the procedures for establishing and calculating these rates, including the submission of repair orders and the calculation methods for both labor and parts markup. Additionally, it introduces a mediation process for disputes between dealers and manufacturers regarding the submitted rates, and establishes a civil cause of action for dealers if mediation does not resolve the issue.

Key changes include the removal of a fixed thirty percent markup on parts, replaced with a dealer's retail parts markup rate, and the introduction of a process for dealers to resubmit claims that were denied due to clerical errors. The bill also specifies that certain types of repairs, such as those involving manufacturer discounts or routine maintenance, will not be included in the calculation of the labor rate or parts markup. The act is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 31-16-117