Bill > SB94

This bill amends existing Kentucky law concerning motor vehicle dealers by defining key terms such as "qualifying repair" (a repair covered by a manufacturer's warranty, excluding those exceeding warranty limits or involving specific excluded work), "qualifying repair order" (an invoice for such repairs), "repair order" (any invoice for vehicle repairs paid by a customer), "warranty" (including new vehicle, recall, and certified pre-owned warranties), and "warranty work" (labor performed by a dealer to fulfill manufacturer warranty, recall, or required service contract obligations). It establishes requirements for how manufacturers and distributors must handle warranty work with their dealers, including assuming responsibility for and defending dealers against claims arising from defects or issues beyond the dealer's control, and mandates that manufacturers pay dealers fair compensation for warranty repairs. The bill also sets specific rules for time allowances for warranty repairs, requiring manufacturers to provide schedules and respond to dealer requests for modifications or additional time within set periods, and dictates that dealers must be paid the same retail labor rate for warranty work as they charge for customer-paid repairs, with specific methods for establishing these rates based on repair orders. It outlines procedures for dealers to request labor rate or parts markup increases, and for manufacturers to respond or rebut these requests, including provisions for protests and hearings. The bill further clarifies what types of repairs and parts are excluded when calculating labor rates or parts markups, and specifies payment timelines for claims, while also addressing compensation for dealers when manufacturers impose recalls or stop-sale orders on vehicles, including compensation for used vehicles held for sale that are subject to such orders and for which parts are unavailable. Finally, it sets limitations on how manufacturers can audit claims and prohibits unduly burdensome processes for claim submission and proof of payment.

Transportation and Infrastructure

https://apps.legislature.ky.gov/record/26RS/sb94.html