SB178 Summary

• Manufacturers must compensate new motor vehicle dealers for all labor and parts required to perform federal safety or emissions recall repairs.

• If repair parts or remedies are unavailable for 30 days or longer after a Stop-Sale or Do-Not-Drive order is issued, manufacturers must compensate dealers at a prorated rate of at least 1% of the vehicle's average trade-in value per month until parts become available or the vehicle is sold.

• Compensation applies only to used vehicles held in dealer inventory when the order was issued or acquired as consumer trade-ins after the order, and only for line-makes the dealer is franchised to sell or authorized to service.

• Manufacturers are prohibited from retaliating against dealers who submit reimbursement claims by reducing compensation, removing them from incentive programs, or reducing incentive amounts, unless actions are applied uniformly across all same line-make dealers.

• Reimbursement claims must follow the same requirements as warranty reimbursement claims; alternatively, manufacturers may use national recall compensation programs providing equal or greater compensation, and remedies under this section cannot be combined with other state or federal recall remedies.