HB 233 Summary

• Requires manufacturer compensation schedules for warranty work to include explicit rates and time allowances for labor, in addition to parts compensation.

• Prohibits manufacturers from setting warranty labor rates below what dealers charge retail customers for similar nonwarranty service work, or time allowances below independent labor time guides, unless manufacturer and dealer agree otherwise.

• Defines "rate" as the dollar amount a manufacturer pays a dealer per hour of labor and "time allowance" as the maximum billable hours for a particular job.

• Makes it an unfair practice for manufacturers to recover warranty work costs by reducing dealer payments, imposing surcharges, administrative fees, or similar charges; does not prevent ordinary price increases or compensation schedule changes.

• Amends the definition of "schedule of compensation" to explicitly include rates for labor and time allowances for labor in warranty work agreements.