SF0106

Allows new vehicle dealers to establish hourly labor rates and retail parts markup rates for warranty repairs through a defined process involving manufacturer submission, review, and dispute resolution.

• Permits dealers to establish warranty labor rates not exceeding nonwarranty service rates and retail parts markup rates (replacing the previous 30% standard) by mutual agreement with manufacturers or through submission of repair order data. (W.S. 31-16-117(b), Sec. 1)
• Requires dealers to submit consecutive repair orders (minimum 100 sequential orders or all orders from 90 consecutive days, whichever is less) from the preceding 180 days, along with the proposed labor or parts markup rate, to establish new warranty rates. (W.S. 31-16-117(f))
• Establishes that hourly labor rates are calculated by dividing total labor charges by total hours worked for qualified repairs, and retail parts markup rates are calculated as a percentage derived from dividing total parts charges by total parts costs. (W.S. 31-16-117(h), W.S. 31-16-117(j))
• Excludes ten categories of work from rate calculations, including discounted repairs, dealer-owned vehicles, routine maintenance, accessories, vehicle reconditioning, inspections, collision damage, parts without individual numbers, employee service orders, and third-party repairs. (W.S. 31-16-117(k))
• Limits dealers to establishing new rates once per twelve-month period unless by mutual agreement; rates remain in effect until changed in accordance with this section. (W.S. 31-16-117(g))
• Allows manufacturers to request additional repair orders within 30 days of receiving a dealer's submission if the submitted rate substantially differs from the current rate on record; manufacturers can request additional orders only once per submission. (W.S. 31-16-117(m))
• Permits manufacturers to contest a dealer's submitted rate within 30 days by providing written notice explaining why the rate is materially incomplete, inaccurate, or unreasonable, with supporting evidence and a proposed adjustment; manufacturers cannot modify the notice after sending it. (W.S. 31-16-117(n))