Bill > SB1081

This bill modifies the existing law regarding how motor vehicle manufacturers (franchisors) compensate their dealerships (franchisees) for warranty and recall repairs. The legislation requires franchisors to provide fair and reasonable compensation to franchisees for preparation, delivery, warranty, and recall services. Key provisions include mandating that franchisors pay franchisees at the same labor rate they charge retail customers, with a multiplier of 1.4 times the standard rate if no agreed-upon rate exists. The bill establishes strict timelines for claim submissions and approvals, requiring franchisors to either approve or disapprove claims within 20 days, with payment due within 20 days of approval. Franchisees can submit labor rate adjustment requests once per calendar year, and franchisors are prohibited from recovering warranty repair costs through increased vehicle prices or surcharges. The legislation also limits warranty claim audits to 12 months after payment, provides a mechanism for franchisees to dispute claim denials through an administrative hearing commission, and ensures franchisees are compensated for diagnostic work, parts, labor, and any additional communication time required to complete warranty repairs. Additionally, if a franchisor issues a recall that prevents vehicle sales, they must compensate the franchisee for interest and storage costs.

Transportation and Infrastructure

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=595