AZ HB2331

Manufacturers must compensate new motor vehicle dealers for all labor and parts required to perform recall repairs at fair and reasonable rates, determined by warranty reimbursement methods if dealer elects.

If recall parts or remedy are not reasonably available within 30 days of a stop-sale or do not drive notification, manufacturer must compensate dealer at least 1.5 percent of the used vehicle's value per month until parts are delivered or vehicle leaves inventory.

Manufacturers are prohibited from reducing compensation, chargebacks, or incentive payments to dealers because the dealer submitted recall compensation claims or held vehicles subject to stop-sale or do not drive notifications.

Recall compensation claims must be approved or disapproved within 30 days; claims not disapproved in writing are deemed approved and must be paid within 30 days.

Provisions apply only to used vehicles subject to federal safety or emissions recalls with stop-sale or do not drive notifications, and only to dealers franchised to sell that vehicle's line-make.