Bill > S08360

This bill amends the vehicle and traffic law to strengthen requirements for franchisors (automobile manufacturers) regarding warranty repairs and compensation to franchised motor vehicle dealers. The bill mandates that franchisors, including their affiliates and subsidiaries, must fully fulfill warranty agreements and service contracts, and provide fair compensation to dealers for warranty-related work. Specifically, the bill requires franchisors to compensate dealers for warranty parts and labor, including extended warranty repairs, recalls, diagnostics, and other repair types, using reasonable labor time allowances. If standard labor guides are unavailable, the bill stipulates that compensation should be calculated using the franchisor's time allowance multiplied by 1.5, or based on the actual time documented by the dealer. The legislation also establishes that warranty claims must be paid within 30 days, ensures dealers can submit repair order data to establish reimbursement rates, and requires franchisors to specifically identify any errors if they reject a dealer's compensation declaration. Additionally, the bill provides provisions for how dealers should be compensated when franchisors supply parts at reduced or no cost, ensuring dealers receive fair markup compensation. The overall aim is to create more transparent and equitable warranty repair compensation practices between automobile manufacturers and their franchised dealers.

Transportation and Infrastructure

https://www.nysenate.gov/legislation/bills/2025/S8360