AL HB190

Adds Section 8-20-7.1 to Alabama Code requiring manufacturers to compensate new motor vehicle dealers for all labor and parts required to perform federal safety and emissions recall repairs.

Requires manufacturers to pay dealers at least 1.75 percent of the vehicle's trade-in value per month when recall parts or remedies are unavailable and a Stop-Sale or Do-Not-Drive order remains in effect for used vehicles held for sale.

Applies compensation requirements only to used vehicles subject to federal recalls where a Stop-Sale or Do-Not-Drive order has been issued and dealers are franchised to sell that vehicle line or authorized to perform repairs on it.

Prohibits manufacturers from reducing dealer compensation through chargebacks, incentive program removals or reductions, or other means because a dealer submitted a recall reimbursement claim or received compensation for a recalled vehicle.

Allows manufacturers to use national recall compensation programs as an alternative if compensation equals or exceeds the 1.75 percent monthly rate or the manufacturer and dealer otherwise agree.