SB 18-219 Summary

• Manufacturers must compensate motor vehicle dealers at retail labor rates and retail parts markup percentages for warranty and recall repairs, calculated based on dealer's nonwarranty repair data from either 100 sequential repair orders or 90 consecutive days of repairs.

• Dealers may submit retail rate calculations to manufacturers; manufacturers have 45 days to contest if the rates are materially inaccurate or substantially different from other similarly situated same line-make dealers, with uncontested rates becoming effective automatically.

• If manufacturer and dealer dispute rates, either party may seek court determination within 60 days; prevailing party recovers attorney fees and full reimbursement owed, with any established rate applying retroactively to 30 days after submission.

• Manufacturers prohibited from establishing unreasonable flat-rate times, using different part numbers to lower warranty compensation, recovering their costs from dealer reimbursement, or taking adverse actions based on dealer's exercise of rights under the law.

• Separate provisions establish similar compensation frameworks for recreational vehicle warrantors and powersports vehicle manufacturers, each with specific dispute resolution and mediation requirements.