SB23-078 Summary

• Requires motor vehicle manufacturers to timely compensate dealers at retail labor rates and retail parts markup percentages for warranty repairs and covered maintenance work.

• Allows manufacturers to contest dealer-submitted calculations of labor rates or parts markups within 45 days if they deem them materially inaccurate or substantially different from similarly situated dealers in the state.

• Requires manufacturers' contest notices to include an explanation of why they believe calculations are materially inaccurate, and permits modification of contest reasons upon discovery of new relevant information without changing the 45-day deadline.

• Applies identical compensation and contest provisions to powersports vehicle dealers under separate statutory sections.

• Takes effect 90 days after final adjournment of the general assembly, unless subject to a referendum petition, in which case it requires voter approval at the November 2024 general election.