Bill > SB502

This bill modifies the Motor Vehicle Franchise Practices Act to clarify and strengthen how franchisors (vehicle manufacturers) compensate franchisees (car dealers) for warranty service, repairs, and promotional events. The bill establishes more detailed guidelines for compensation, including requiring franchisors to pay reasonable rates for parts and labor used in warranty repairs, with the primary benchmark being the rates charged to retail customers for non-warranty work. The legislation mandates that franchisors provide clear written specifications of warranty service obligations, compensate dealers within specific timeframes (typically 30 days), and limit their ability to audit claims. Dealers are now given more protections, such as the right to file complaints with the administrative hearing commission if they disagree with a franchisor's reimbursement decisions, and franchisors are prohibited from requesting documentation that is overly burdensome. The bill also specifies that franchisors must include expected parts availability dates in recall notices and compensate dealers for recall-related repairs. Additionally, the legislation sets limits on how long franchisors can audit and charge back claims, generally restricting such actions to 12 months after payment, with exceptions for suspected fraudulent claims.

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https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=397428