SB2262 Summary

• Amends the Motor Vehicle Franchise Act to prohibit (rather than prevent) the sale of motor vehicles by unlicensed dealers and require manufacturers to pay dealers no less than the amount retail customers pay for the same services.

• Requires manufacturers to pay dealers the same effective labor rate for warranty work as they receive for customer-pay repairs, based on 100 sequential repair orders submitted by the dealer, excluding simple maintenance.

• Establishes that manufacturers must reimburse dealers at prevailing retail prices for parts used in warranty repairs and factory recalls, with compensation for diagnostic work and technician communication time with manufacturer support centers.

• Requires manufacturers to approve or deny warranty claims within 30 days; unapproved claims are deemed approved after 30 days and must be paid within 30 days of approval.

• Prohibits manufacturers from reducing payments based on market norms, restricting repair frequency due to failure rates, charging back warranty repairs absent fraud, or imposing cost recovery fees or surcharges against franchised dealerships for these payments.