AL
Alabama Senate Bill SB52

Alabama 2022 Regular Session

Alabama Senate Bill SB52 Compare Versions

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11 1 SB52
2-2 215615-4
2+2 215615-3
33 3 By Senator Chesteen
44 4 RFD: Governmental Affairs
55 5 First Read: 11-JAN-22
66
7-Page 0 SB52
8-1 SB52
7+Page 0 1 215615-3:n:01/03/2022:FC/ma LSA2021-2336R2
98 2
109 3
11-4 ENROLLED, An Act,
12-5 Relating to motor vehicle dealers; to amend Section
13-6 8-20-7 of the Code of Alabama 1975, relating to warranty
14-7 obligations to dealers, to further specify the determination
15-8 of reasonable compensation by motor vehicle manufacturers or
16-9 similar entities for pre-delivery and warranty service by
17-10 motor vehicle dealers; and to authorize a motor vehicle dealer
18-11 to file a civil action if the dealer and the manufacturer or
19-12 similar entity cannot agree on the reasonable compensation for
20-13 the warranty service.
21-14 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
22-15 Section 1. Section 8-20-7 of the Code of Alabama
23-16 1975, is amended to read as follows:
24-17 "§8-20-7.
25-18 "(a) For purposes of this section, the following
26-19 words have the following meanings:
27-20 "(1) PRE-DELIVERY SERVICE. All work and services,
28-21 except warranty work, performed on a new motor vehicles by a
29-22 motor vehicle dealer at the direction of the warrantor prior
30-23 to the delivery of the vehicle to the first retail consumer.
31-24 "(2) REPAIR ORDER. An invoice, paid by a retail
32-25 customer, and closed as of the time of submission,
33-Page 1 SB52
34-1 encompassing one or more repairs to a motor vehicle, and
35-2 reflecting, in the case of a parts markup submission, the cost
36-3 of each part and the sale price thereof, and in the case of a
37-4 labor rate submission, the total charges for labor and the
38-5 total number of hours that produced the charges, which invoice
39-6 may be submitted in electronic form.
40-7 "(3) QUALIFIED REPAIR. A repair to a motor vehicle
41-8 paid by a retail customer, which would have come within the
42-9 warrantor's new motor vehicle warranty, but for the motor
43-10 vehicle having exceeded the chronological or mileage limit of
44-11 such warranty, and which does not constitute any of the work
45-12 encompassed by subsection (f)(5).
46-13 "(4) QUALIFIED REPAIR ORDER. A repair order which
47-14 encompasses, in whole or in part, a qualified repair or
48-15 repairs.
49-16 "(5) WARRANTOR. A manufacturer, distributor, or
50-17 wholesaler, factory branch, factory representative,
51-18 distributor branch, or distributor representative.
52-19 "(6) WARRANTY WORK. All labor, including that of a
53-20 diagnostic character, performed, and all parts, including
54-21 original or replacement parts, and components, including
55-22 engine, transmission, and other parts assemblies, installed by
56-23 motor vehicle dealers on motor vehicles which are reasonably
57-24 incurred by motor vehicle dealers, other than the incidental
58-25 expenses incurred in performing labor and installing parts on
59-Page 2 SB52
60-1 motor vehicles, in fulfilling a warrantor's obligations under
61-2 a new motor vehicle warranty, a recall, or a certified
62-3 pre-owned warranty, to consumers, including, but not limited
63-4 to, the expense of shipping or returning defective parts to
64-5 the warrantor, when required by the warrantor.
65-6 "(a) (b) Every manufacturer, distributor, or
66-7 wholesaler, factory branch, factory representative,
67-8 distributor branch, or distributor representative warrantor
68-9 shall specify in writing to each of its motor vehicle dealers
69-10 the dealer's obligation for pre-delivery service and warranty
70-11 service on its products, shall compensate the motor vehicle
71-12 dealer for warranty the service required of the dealer by the
72-13 manufacturer, distributor, or wholesaler, factory branch,
73-14 factory representative, distributor branch, or distributor
74-15 representative warrantor and shall provide the dealer the
75-16 schedule of compensation to be paid such dealer for parts,
76-17 work, and service in connection with warranty the services,
77-18 and the time allowance for the performance of such work and
78-19 service.
79-20 "(b) (c) In no event shall such schedule of
80-21 compensation fail to include reasonable compensation for
81-22 diagnostic work, service, labor, and parts. Time allowances
82-23 for the diagnosis and performance of warranty work and service
83-24 shall be reasonable and adequate for the work to be performed.
84-25 In the determination of what constitutes reasonable
85-Page 3 SB52
86-1 compensation under this section, the principal factors to be
87-2 given consideration shall be the prevailing wage rates being
88-3 paid by the dealer, in the community in which the dealer is
89-4 doing business, and in In no event shall such compensation of
90-5 a dealer for warranty services including labor and parts, be
91-6 less than the rates or prices charged by such dealer for like
92-7 service to retail customers for nonwarranty service, repairs,
93-8 and parts, provided that such prices and rates are not
94-9 unreasonable. This subsection does not apply to compensation
95-10 for parts, systems, fixtures, appliances, furnishings,
96-11 accessories, and features of a motor home that are designed,
97-12 used, and maintained primarily for non-vehicular residential
98-13 purposes, or parts related to motorcycle repairs.
99-14 "(c) (d) It is a violation of this section for any
100-15 manufacturer, distributor, or wholesaler, factory branch,
101-16 factory representative, distributor branch, or distributor
102-17 representative warrantor to fail to perform any warranty
103-18 obligations under the motor vehicle manufacturer's warranty,
104-19 or to fail to include in written notices of factory recalls to
105-20 dealers the expected date by which necessary parts and
106-21 equipment will be available to dealers for the correction of
107-22 such defects, or to fail to compensate any of the motor
108-23 vehicle dealers for repairs effected by such recall.
109-24 "(d) (e) All claims made by new motor vehicle
110-25 dealers pursuant to this section for such labor and parts
111-Page 4 SB52
112-1 shall be paid within 30 days following their approval;
113-2 provided, however, that the manufacturer warrantor retains the
114-3 right to audit such claims and to charge back the dealer for
115-4 any fraudulent claims for a period not to exceed 12 months
116-5 from the date the claim was paid. All such claims shall be
117-6 either approved or disapproved within 30 days after their
118-7 receipt on forms and in the manner specified by the
119-8 manufacturer warrantor, and any claim not specifically
120-9 disapproved in writing within 30 days after the receipt shall
121-10 be construed to be approved and payment must follow within 30
122-11 days. A manufacturer warrantor shall not disapprove claims for
123-12 which the dealer has received preauthorization from the
124-13 manufacturer warrantor or its representative nor shall the
125-14 manufacturer warrantor unreasonably disapprove a claim solely
126-15 based on the dealer's incidental failure to comply with a
127-16 specific claim processing requirement that results only in a
128-17 clerical error or administrative error; rather a claim denial
129-18 must be based upon a material defect and deviation from the
130-19 reasonable written claim submission requirements of the
131-20 manufacturer. In the event of neglect, oversight, or mistake
132-21 by the dealer, a dealer may submit an amended claim, or may
133-22 submit a claim not submitted within the time required by the
134-23 manufacturer warrantor, for labor and parts up to 120 days
135-24 from the date on which such claim was first submitted or could
136-25 have been submitted.
137-Page 5 SB52
138-1 "(f)(1) For the purposes of this section, reasonable
139-2 compensation shall be determined as provided in this
140-3 subsection.
141-4 "(2) The markup customarily charged by the dealer
142-5 for parts or its labor rate may be established at the election
143-6 of the dealer by the dealer submitting to the warrantor,
144-7 either by electronic transmission or tangible delivery, all
145-8 consecutive repair orders that include 100 sequential repair
146-9 orders reflecting qualified repairs, or all repair orders
147-10 closed during any period of 90 consecutive days, whichever
148-11 produces the fewer number of repair orders, covering repairs
149-12 made no more than 180 days before the submission and declaring
150-13 the parts markup or labor rate.
151-14 "(3) The dealer shall calculate its labor rate by
152-15 determining the total charges for labor from the qualified
153-16 repairs submitted and dividing that amount by the total number
154-17 of hours that produced the charges. The dealer shall calculate
155-18 its parts markup by determining the total charges for parts
156-19 from the qualified repairs submitted, dividing that amount by
157-20 its total cost of the purchase of the parts, subtracting one
158-21 from that amount, and multiplying by 100 to produce a
159-22 percentage.
160-23 "(4) A motor vehicle dealer seeking to establish or
161-24 modify its warranty reimbursement labor rate, parts markup, or
162-Page 6 SB52
163-1 both, not more frequently than once per 12-month period, shall
164-2 submit to the warrantor one of the following:
165-3 "a. A single set of repair orders for purposes of
166-4 calculating both its labor rate and parts markup.
167-5 "b. A set of repair orders for purposes of
168-6 calculating only its labor rate or for purposes of calculating
169-7 only its parts markup.
170-8 "(5) In calculating the rate customarily charged by
171-9 the dealer for parts and labor for purposes of this
172-10 subsection, the following shall not be included in the
173-11 calculation of the rate:
174-12 "a. Repairs which are the subject of manufacturer or
175-13 distributor discounts, such as special events, specials,
176-14 promotions, coupons, or service campaigns.
177-15 "b. Repairs of motor vehicles owned by the dealer.
178-16 "c. Routine maintenance, including, but not limited
179-17 to, replacements of fluids, filters, batteries, bulbs, belts,
180-18 nuts, bolts, or fasteners, unless provided in the course of,
181-19 and related to, an otherwise qualified repair.
182-20 "d. Installations of accessories.
183-21 "e. Replacements of or work on tires, wheels,
184-22 including alignments, wheel or tire rotations, or replacements
185-23 of brake drums, rotors, shoes, or pads.
186-24 "f. Vehicle reconditioning.
187-25 "g. Safety or emission inspections required by law.
188-Page 7 SB52
189-1 "h. Repairs for which volume discounts have been
190-2 negotiated with government agencies.
191-3 "i. Body shop repairs, including repairs covered by
192-4 insurance, for conditions caused by collision, road hazard,
193-5 the force of the elements, vandalism, theft, or the negligence
194-6 or deliberate act of the owner, operator, or a third party.
195-7 "j. Parts that do not have individual part numbers.
196-8 "k. Warrantor approved and reimbursed goodwill
197-9 repairs or reimbursements.
198-10 "l. Window replacement, window etching, window tint,
199-11 protective film, or other masking products.
200-12 "(6) a. The submitted parts markup or labor rate
201-13 shall go into effect 45 days after the warrantor's receipt of
202-14 its submission, unless, within that period, the warrantor
203-15 reasonably substantiates that the submission is materially
204-16 incomplete, materially inaccurate, or is materially
205-17 unreasonable and provides a full explanation of any reasons
206-18 that the submitted markup or rate is materially incomplete,
207-19 materially inaccurate, or materially unreasonable, evidence
208-20 validating each reason, a copy of all calculations used by it
209-21 demonstrating any material inaccuracy, and a proposed adjusted
210-22 markup or rate provided that the dealer's submission is
211-23 materially accurate based upon the qualified repair orders
212-24 submitted by the dealer. In that event, the warrantor may
213-25 submit only one rebuttal to the dealer, and may not thereafter
214-Page 8 SB52
215-1 add to, expand, supplement, or otherwise modify any element
10+4
11+5
12+6
13+7
14+8 SYNOPSIS: This bill would provide for the
15+9 determination of reasonable compensation by motor
16+10 vehicle manufacturers or similar entities for
17+11 pre-delivery and warranty service by motor vehicle
18+12 dealers. This bill would also authorize a motor
19+13 vehicle dealer to file a civil action if the dealer
20+14 and the manufacturer or similar entity cannot agree
21+15 on the reasonable compensation for the warranty
22+16 service.
23+17
24+18 A BILL
25+19 TO BE ENTITLED
26+20 AN ACT
27+21
28+22 Relating to motor vehicle dealers; to amend Section
29+23 8-20-7 of the Code of Alabama 1975, relating to warranty
30+24 obligations to dealers, to further specify the determination
31+25 of reasonable compensation by motor vehicle manufacturers or
32+26 similar entities for pre-delivery and warranty service by
33+27 motor vehicle dealers; and to authorize a motor vehicle dealer
34+Page 1 1 to file a civil action if the dealer and the manufacturer or
35+2 similar entity cannot agree on the reasonable compensation for
36+3 the warranty service.
37+4 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
38+5 Section 1. Section 8-20-7 of the Code of Alabama
39+6 1975, is amended to read as follows:
40+7 "§8-20-7.
41+8 "(a) For purposes of this section, the following
42+9 words have the following meanings:
43+10 "(1) PRE-DELIVERY SERVICE. All work and services,
44+11 except warranty work, performed on a new motor vehicles by a
45+12 motor vehicle dealer at the direction of the warrantor prior
46+13 to the delivery of the vehicle to the first retail consumer.
47+14 "(2) REPAIR ORDER. An invoice, paid by a retail
48+15 customer, and closed as of the time of submission,
49+16 encompassing one or more repairs to a motor vehicle, and
50+17 reflecting, in the case of a parts markup submission, the cost
51+18 of each part and the sale price thereof, and in the case of a
52+19 labor rate submission, the total charges for labor and the
53+20 total number of hours that produced the charges, which invoice
54+21 may be submitted in electronic form.
55+22 "(3) QUALIFIED REPAIR. A repair to a motor vehicle
56+23 paid by a retail customer, which would have come within the
57+24 warrantor's new motor vehicle warranty, but for the motor
58+25 vehicle having exceeded the chronological or mileage limit of
59+26 such warranty, and which does not constitute any of the work
60+27 encompassed by subsection (f)(5).
61+Page 2 1 "(4) QUALIFIED REPAIR ORDER. A repair order which
62+2 encompasses, in whole or in part, a qualified repair or
63+3 repairs.
64+4 "(5) WARRANTOR. A manufacturer, distributor, or
65+5 wholesaler, factory branch, factory representative,
66+6 distributor branch, or distributor representative.
67+7 "(6) WARRANTY WORK. All labor, including that of a
68+8 diagnostic character, performed, and all parts, including
69+9 original or replacement parts, and components, including
70+10 engine, transmission, and other parts assemblies, installed by
71+11 motor vehicle dealers on motor vehicles which are reasonably
72+12 incurred by motor vehicle dealers, other than the incidental
73+13 expenses incurred in performing labor and installing parts on
74+14 motor vehicles, in fulfilling a warrantor's obligations under
75+15 a new motor vehicle warranty, a recall, or a certified
76+16 pre-owned warranty, to consumers, including, but not limited
77+17 to, the expense of shipping or returning defective parts to
78+18 the warrantor, when required by the warrantor.
79+19 "(a) (b) Every manufacturer, distributor, or
80+20 wholesaler, factory branch, factory representative,
81+21 distributor branch, or distributor representative warrantor
82+22 shall specify in writing to each of its motor vehicle dealers
83+23 the dealer's obligation for pre-delivery service and warranty
84+24 service on its products, shall compensate the motor vehicle
85+25 dealer for warranty the service required of the dealer by the
86+26 manufacturer, distributor, or wholesaler, factory branch,
87+27 factory representative, distributor branch, or distributor
88+Page 3 1 representative warrantor and shall provide the dealer the
89+2 schedule of compensation to be paid such dealer for parts,
90+3 work, and service in connection with warranty the services,
91+4 and the time allowance for the performance of such work and
92+5 service.
93+6 "(b) (c) In no event shall such schedule of
94+7 compensation fail to include reasonable compensation for
95+8 diagnostic work, service, labor, and parts. Time allowances
96+9 for the diagnosis and performance of warranty work and service
97+10 shall be reasonable and adequate for the work to be performed.
98+11 In the determination of what constitutes reasonable
99+12 compensation under this section, the principal factors to be
100+13 given consideration shall be the prevailing wage rates being
101+14 paid by the dealer, in the community in which the dealer is
102+15 doing business, and in In no event shall such compensation of
103+16 a dealer for warranty services including labor and parts, be
104+17 less than the rates or prices charged by such dealer for like
105+18 service to retail customers for nonwarranty service, repairs,
106+19 and parts, provided that such prices and rates are not
107+20 unreasonable. This subsection does not apply to compensation
108+21 for parts, systems, fixtures, appliances, furnishings,
109+22 accessories, and features of a motor home that are designed,
110+23 used, and maintained primarily for non-vehicular residential
111+24 purposes, or parts related to motorcycle repairs.
112+25 "(c) (d) It is a violation of this section for any
113+26 manufacturer, distributor, or wholesaler, factory branch,
114+27 factory representative, distributor branch, or distributor
115+Page 4 1 representative warrantor to fail to perform any warranty
116+2 obligations under the motor vehicle manufacturer's warranty,
117+3 or to fail to include in written notices of factory recalls to
118+4 dealers the expected date by which necessary parts and
119+5 equipment will be available to dealers for the correction of
120+6 such defects, or to fail to compensate any of the motor
121+7 vehicle dealers for repairs effected by such recall.
122+8 "(d) (e) All claims made by new motor vehicle
123+9 dealers pursuant to this section for such labor and parts
124+10 shall be paid within 30 days following their approval;
125+11 provided, however, that the manufacturer warrantor retains the
126+12 right to audit such claims and to charge back the dealer for
127+13 any fraudulent claims for a period not to exceed 12 months
128+14 from the date the claim was paid. All such claims shall be
129+15 either approved or disapproved within 30 days after their
130+16 receipt on forms and in the manner specified by the
131+17 manufacturer warrantor, and any claim not specifically
132+18 disapproved in writing within 30 days after the receipt shall
133+19 be construed to be approved and payment must follow within 30
134+20 days. A manufacturer warrantor shall not disapprove claims for
135+21 which the dealer has received preauthorization from the
136+22 manufacturer warrantor or its representative nor shall the
137+23 manufacturer warrantor unreasonably disapprove a claim solely
138+24 based on the dealer's incidental failure to comply with a
139+25 specific claim processing requirement that results only in a
140+26 clerical error or administrative error; rather a claim denial
141+27 must be based upon a material defect and deviation from the
142+Page 5 1 reasonable written claim submission requirements of the
143+2 manufacturer. In the event of neglect, oversight, or mistake
144+3 by the dealer, a dealer may submit an amended claim, or may
145+4 submit a claim not submitted within the time required by the
146+5 manufacturer warrantor, for labor and parts up to 120 days
147+6 from the date on which such claim was first submitted or could
148+7 have been submitted.
149+8 "(f)(1) For the purposes of this section, reasonable
150+9 compensation shall be determined as provided in this
151+10 subsection.
152+11 "(2) The markup customarily charged by the dealer
153+12 for parts or its labor rate may be established at the election
154+13 of the dealer by the dealer submitting to the warrantor,
155+14 either by electronic transmission or tangible delivery, all
156+15 consecutive repair orders that include 100 sequential repair
157+16 orders reflecting qualified repairs, or all repair orders
158+17 closed during any period of 90 consecutive days, whichever
159+18 produces the fewer number of repair orders, covering repairs
160+19 made no more than 180 days before the submission and declaring
161+20 the parts markup or labor rate.
162+21 "(3) The dealer shall calculate its labor rate by
163+22 determining the total charges for labor from the qualified
164+23 repairs submitted and dividing that amount by the total number
165+24 of hours that produced the charges. The dealer shall calculate
166+25 its parts markup by determining the total charges for parts
167+26 from the qualified repairs submitted, dividing that amount by
168+27 its total cost of the purchase of the parts, subtracting one
169+Page 6 1 from that amount, and multiplying by 100 to produce a
170+2 percentage.
171+3 "(4) A motor vehicle dealer seeking to establish or
172+4 modify its warranty reimbursement labor rate, parts markup, or
173+5 both, not more frequently than once per 12-month period, shall
174+6 submit to the warrantor one of the following:
175+7 "a. A single set of repair orders for purposes of
176+8 calculating both its labor rate and parts markup.
177+9 "b. A set of repair orders for purposes of
178+10 calculating only its labor rate or for purposes of calculating
179+11 only its parts markup.
180+12 "(5) In calculating the rate customarily charged by
181+13 the dealer for parts and labor for purposes of this
182+14 subsection, the following shall not be included in the
183+15 calculation of the rate:
184+16 "a. Repairs which are the subject of manufacturer or
185+17 distributor discounts, such as special events, specials,
186+18 promotions, coupons, or service campaigns.
187+19 "b. Repairs of motor vehicles owned by the dealer.
188+20 "c. Routine maintenance, including, but not limited
189+21 to, replacements of fluids, filters, batteries, bulbs, belts,
190+22 nuts, bolts, or fasteners, unless provided in the course of,
191+23 and related to, an otherwise qualified repair.
192+24 "d. Installations of accessories.
193+25 "e. Replacements of or work on tires, wheels,
194+26 including alignments, wheel or tire rotations, or replacements
195+27 of brake drums, rotors, shoes, or pads.
196+Page 7 1 "f. Vehicle reconditioning.
197+2 "g. Safety or emission inspections required by law.
198+3 "h. Repairs for which volume discounts have been
199+4 negotiated with government agencies.
200+5 "i. Body shop repairs, including repairs covered by
201+6 insurance, for conditions caused by collision, road hazard,
202+7 the force of the elements, vandalism, theft, or the negligence
203+8 or deliberate act of the owner, operator, or a third party.
204+9 "j. Parts that do not have individual part numbers.
205+10 "k. Warrantor approved and reimbursed goodwill
206+11 repairs or reimbursements.
207+12 "l. Window replacement, window etching, window tint,
208+13 protective film, or other masking products.
209+14 "(6) a. The submitted parts markup or labor rate
210+15 shall go into effect 45 days after the warrantor's receipt of
211+16 its submission, unless, within that period, the warrantor
212+17 reasonably substantiates that the submission is materially
213+18 incomplete, materially inaccurate, or is materially
214+19 unreasonable and provides a full explanation of any reasons
215+20 that the submitted markup or rate is materially incomplete,
216+21 materially inaccurate, or materially unreasonable, evidence
217+22 validating each reason, a copy of all calculations used by it
218+23 demonstrating any material inaccuracy, and a proposed adjusted
219+24 markup or rate provided that the dealer's submission is
220+25 materially accurate based upon the qualified repair orders
221+26 submitted by the dealer. In that event, the warrantor may
222+27 submit only one rebuttal to the dealer, and may not thereafter
223+Page 8 1 add to, expand, supplement, or otherwise modify any element
216224 2 thereof, including, but not limited to, its grounds for
217225 3 contesting the parts markup or labor rate, unless the
218226 4 warrantor did not possess the information at the time of its
219227 5 rebuttal, or if the information is used for the purpose of
220228 6 rebutting the dealer's response to the warrantor's rebuttal.
221229 7 "b. If a warrantor determines from any set of repair
222230 8 orders submitted under this subsection that the labor rate or
223231 9 parts markup calculated under this subsection is substantially
224232 10 higher or lower than the rate currently on record with the
225233 11 warrantor for labor or parts, or both, the warrantor, in
226234 12 accordance with this subsection, may request additional repair
227235 13 orders for a period of 60 days prior to or 60 days subsequent
228236 14 to the time period for which the repair orders were submitted
229237 15 for purposes of an alteration, and shall have 45 days from
230238 16 receiving the additional repair orders to rebut the
231239 17 presumption that the dealer's proposed markup and labor rates
232240 18 are reasonable.
233241 19 "(7) If the dealer and the warrantor do not agree on
234242 20 the parts markup or labor rate, then the dealer may file an
235243 21 action in a court having jurisdiction in this state within 120
236244 22 days of receiving the warrantor's written rejection of the
237245 23 dealer's proposed parts markup or labor rate. In that action,
238246 24 the warrantor shall have the burden of proving by a
239247 25 preponderance of the evidence that the dealer's submitted
240-Page 9 SB52
241-1 parts markup or labor rate, or both, was materially
242-2 incomplete, materially inaccurate, or was materially
243-3 unreasonable. Upon a court decision in favor of the dealer
244-4 finding that the labor or parts rate shall be more than
245-5 proposed by the warrantor, any increase in the dealer's parts
246-6 markup or labor rate arising from the proceeding shall be
247-7 effective retroactively to the date 45 days following the
248-8 warrantor's receipt of the original submission to the dealer
249-9 or to the warrantor.
250-10 "(8) In the determination of what constitutes
251-11 materially unreasonable compensation under this section,
252-12 relevant factors include, but are not limited to, the
253-13 prevailing wage rates paid by similarly situated dealers in
254-14 the state."
255-15 Section 2. This act shall become effective on the
256-16 first day of the third month following its passage and
257-17 approval by the Governor, or its otherwise becoming law.
258-Page 10 SB52
259-1
260-2
261-3
262-4
263-President and Presiding Officer of the Senate
264-
265-5
266-6 Speaker of the House of Representatives
267-SB527
268-8 Senate 01-FEB-22
269-9 I hereby certify that the within Act originated in and passed
270-10 the Senate.
271-11
272-12 Patrick Harris,
273-13 Secretary.
274-14
275-15
276-16
277-17 House of Representatives
278-18 Passed: 24-FEB-22
279-19
280-20
281-21 By: Senator Chesteen
282-Page 11
248+26 parts markup or labor rate, or both, was materially
249+27 incomplete, materially inaccurate, or was materially
250+Page 9 1 unreasonable. Upon a court decision in favor of the dealer
251+2 finding that the labor or parts rate shall be more than
252+3 proposed by the warrantor, any increase in the dealer's parts
253+4 markup or labor rate arising from the proceeding shall be
254+5 effective retroactively to the date 45 days following the
255+6 warrantor's receipt of the original submission to the dealer
256+7 or to the warrantor.
257+8 "(8) In the determination of what constitutes
258+9 materially unreasonable compensation under this section,
259+10 relevant factors include, but are not limited to, the
260+11 prevailing wage rates paid by similarly situated dealers in
261+12 the state."
262+13 Section 2. This act shall become effective on the
263+14 first day of the third month following its passage and
264+15 approval by the Governor, or its otherwise becoming law.
265+Page 10