Motor Vehicle Dealer And Manufacturer Service Rates
| Type | Bill |
|---|---|
| Session | 2018 Regular Session |
| Subjects |
Concerning the rates a motor vehicle dealer charges a motor vehicle manufacturer for work performed by the dealer in accordance with a warranty obligation.
Bill Summary:
Motor vehicle and powersports vehicle sales - manufacturers - dealers - warranty obligations. The act requires a manufacturer to compensate each of its motor vehicle or powersports vehicle dealers in accordance with a set of standards designed to reflect the current market rate for labor and the profit margin on parts the dealer can expect to obtain. Dealers must submit certain repair orders to the manufacturer as required by the act to establish compensation rates. Certain types of transactions are excluded from the calculation of the current market rates. The dealer may request a modification of rates from a manufacturer only once annually.
The manufacturer may contest the rates charged by the dealer if the rate is materially inaccurate or substantially different than the rates of other similarly situated same line-make dealers in the state. If the manufacturer does not contest the rates within 45 days, the amounts take effect. If the manufacturer timely contests the rates and the manufacturer and dealer cannot agree on the amount charged, the dealer may obtain a determination by a court or the executive director of the department of revenue.
A manufacturer is:
- Prohibited from establishing unreasonable flat-rate times for labor;
- Required to calculate the retail parts markup percentage from the dealer's wholesale cost for the part;
- Prohibited from establishing different part numbers for warranty repairs to pay the dealer lower compensation;
- Prohibited from attempting to recover the costs of paying the dealer from the dealer using other methods;
- Prohibited from taking any adverse action against the dealer for asserting the dealer's rights under the act;
- Prohibited from requiring a dealer to use any method that is unduly burdensome or time-consuming to account for the retail prices set under the act.
(Note: This summary applies to this bill as enacted.)
Related Documents & Information
| Activity | Vote | Documents |
|---|---|---|
| Adopt amendment L.030 | The motion passed without objection. | Vote summary |
| Adopt amendment L.022 | The motion passed without objection. | Vote summary |
| Refer Senate Bill 18-219, as amended, to the Committee of the Whole. | The motion passed on a vote of 12-0. | Vote summary |
| Activity | Vote | Documents |
|---|---|---|
| Adopt amendment L.018 | The motion passed without objection. | Vote summary |
| Adopt amendment L.014 | The motion passed on a vote of 4-3. | Vote summary |
| Adopt amendment L.015 | The motion passed on a vote of 5-2. | Vote summary |
| Adopt amendment L.016 | The motion failed on a vote of 2-5. | Vote summary |
| Adopt amendment L.019 | The motion passed on a vote of 5-2. | Vote summary |
| Adopt amendment L.020 | The motion passed on a vote of 5-2. | Vote summary |
| Refer Senate Bill 18-219, as amended, to the Committee of the Whole. | The motion passed on a vote of 7-0. | Vote summary |
| Activity | Vote | Documents |
|---|
| Date | Calendar | Motion | Vote | Vote Document |
|---|---|---|---|---|
| 05/03/2018 | Third Reading | BILL |
55
AYE
10
NO
0
OTHER
|
Vote record |
| Date | Calendar | Motion | Vote | Vote Document |
|---|---|---|---|---|
| 05/03/2018 | House Amendments | REPASS |
34
AYE
0
NO
1
OTHER
|
Vote record |
| 05/03/2018 | House Amendments | CONCUR |
34
AYE
0
NO
1
OTHER
|
Vote record |
| 04/25/2018 | Third Reading | BILL |
32
AYE
3
NO
0
OTHER
|
Vote record |
| Date | Location | Action |
|---|---|---|
| 05/30/2018 | Governor | Governor Signed |
| 05/16/2018 | Governor | Sent to the Governor |
| 05/16/2018 | House | Signed by the Speaker of the House |
| 05/15/2018 | Senate | Signed by the President of the Senate |
| 05/03/2018 | Senate | Senate Considered House Amendments - Result was to Concur - Repass |
| 05/03/2018 | House | House Third Reading Passed - No Amendments |
| 05/02/2018 | House | House Second Reading Special Order - Passed with Amendments - Committee, Floor |
| 05/01/2018 | House | House Committee on Business Affairs and Labor Refer Amended to House Committee of the Whole |
| 04/26/2018 | House | Introduced In House - Assigned to Business Affairs and Labor |
| 04/25/2018 | Senate | Senate Third Reading Passed - No Amendments |
| 04/24/2018 | Senate | Senate Second Reading Passed with Amendments - Committee, Floor |
| 04/23/2018 | Senate | Senate Second Reading Laid Over Daily - No Amendments |
| 04/18/2018 | Senate | Senate Committee on Business, Labor, & Technology Refer Amended to Senate Committee of the Whole |
| 04/16/2018 | Senate | Senate Committee on Business, Labor, & Technology Witness Testimony and/or Committee Discussion Only |
| 03/26/2018 | Senate | Introduced In Senate - Assigned to Business, Labor, & Technology |
Prime Sponsor
Sponsor
| Effective Date | Chapter # | Title | Documents |
|---|---|---|---|
| 10/01/2018 | 330 | Motor Vehicle Dealer & Manufacturer Service Rates |