Bill > HB648

This bill amends existing Kentucky law to establish clearer conditions for motor vehicle dealers to be reimbursed by manufacturers, component manufacturers (companies that make parts for vehicles), and distributors for parts and labor related to warranty or recall work on vehicles classified as 7 or higher, as defined by federal regulations (49 C.F.R. sec. 565.15). It expands the timeframe for dealers to submit these reimbursement claims from 30 days to 90 days after completing the work, and also outlines specific requirements for what constitutes "reasonable compensation" for dealers, including reimbursement for parts at acquisition cost plus a 30% profit margin, and coverage for dealer costs related to technician training, specialized tools, and computer systems used for warranty work. The bill also clarifies that component manufacturers are subject to these reimbursement requirements if they have assumed responsibility for warranty or recall claims, and it prohibits manufacturers from refusing payment for replacement parts without proper written certification of their condition.

Transportation and Infrastructure

https://apps.legislature.ky.gov/record/26RS/hb648.html