SB52 Summary

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

• Dealers may submit qualified repair orders (100 sequential orders or all repairs from 90 consecutive days, whichever is fewer) to establish customary labor rates and parts markup, with submissions effective 45 days after warrantor receipt unless the warrantor provides written rebuttal with evidence of material incompleteness, inaccuracy, or unreasonableness.

• Manufacturers are limited to one rebuttal per submission and cannot expand grounds for contest after initial rebuttal unless new information was unavailable or used to rebut dealer response.

• Dealers may file civil action in state court within 120 days if they and the manufacturer cannot agree on parts markup or labor rate; manufacturer bears burden of proving dealer's submission was materially incomplete, inaccurate, or unreasonable.

• Court-ordered rate increases are retroactively effective to 45 days after warrantor's receipt of original submission; relevant factors for determining materially unreasonable compensation include prevailing wage rates paid by similarly situated dealers in the state.