HB90 Summary

• Amends Alabama Code Section 8-20-7 to establish procedures for determining reasonable compensation by motor vehicle manufacturers for pre-delivery and warranty service performed by dealers.

• Dealers may establish labor rates and parts markups by submitting repair orders (either 100 sequential qualified repairs or all repairs from any 90-day period, whichever is fewer) to the warrantor, with submitted rates taking effect after 45 days unless the warrantor substantiates material deficiencies.

• Warranties must compensate dealers at rates no less than what dealers charge retail customers for non-warranty service, with specific exclusions for routine maintenance, discounted repairs, body shop work, and accessories.

• Dealers may file civil action within 120 days if disagreement occurs on parts markup or labor rates, with the burden on the warrantor to prove by preponderance of evidence that the dealer's submission was materially incomplete, inaccurate, or unreasonable.

• Court decisions favoring dealers are effective retroactively to 45 days after the original submission to the warrantor, and determination of reasonableness considers prevailing wage rates paid by similarly situated dealers statewide.