IA HF2197

Requires motor vehicle franchisers (manufacturers/distributors) to compensate franchisees (dealers) for warranty services at rates not less than what the franchisee charges retail customers for similar parts, labor, and diagnostics, provided those rates are reasonable.

Eliminates the current requirement for franchisers to provide a pre-approved schedule of compensation for warranty work, shifting to a franchisee-driven rate structure.

Requires franchisees to submit an itemized list of their rates and labor times for warranty services to the franchiser.

Removes the franchiser's obligation to provide time allowances for warranty work and instead requires franchisees to perform warranty services within a reasonable amount of time.

Applies only to motor vehicle franchise agreements entered into or renewed on or after July 1, 2026.