AK SB47

Manufacturers must pay new motor vehicle dealers retail rates for parts and labor on warranty-covered repairs, with rates established using the dealer's nonwarranty customer-paid service repair orders as the baseline.

Dealers submit either 100 sequential repair orders or 90 consecutive days of repair orders (whichever results in fewer orders) covering repairs made within 180 days to establish retail rates for parts and labor.

Retail rate for parts equals the dealer's parts markup percentage multiplied by parts cost, while labor rate equals the average hourly labor charge; manufacturers have 30 days to approve or disapprove proposed rates with reasonable substantiation required for disapproval.

Manufacturers and dealers must exclude from rate calculations special event repairs, wholesale parts, routine maintenance, fasteners without individual part numbers, and vehicle reconditioning.

Dealers may propose only one new retail rate per calendar year and may revert to a previous rate once per 12-month period; manufacturers may conduct annual audits to ensure rates have not decreased.