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NE LB667
Bill
AI Summary
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Amends Section 60-1438 of Nebraska statutes to require manufacturers and distributors to compensate new motor vehicle dealers for diagnostic work in addition to repair service, parts, and labor under warranty service schedules.
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Requires franchisors to not unreasonably deny dealer requests for modifications to uniform time allowances for specific warranty repairs or additional time for diagnostic/repair work on warranty-covered vehicles.
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Establishes that when a franchisor provides parts at no cost or reduced cost for warranty work, the dealer must be compensated for their cost plus markup based on the "fair wholesale value" of the part (the greatest of the amount paid, current price schedule cost, or substantially identical part cost).
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Allows manufacturers to request up to 100 additional repair orders to verify dealer markup and labor rates, with the ability to adjust warranty compensation if dealer rates to customers are lower than warranty rates paid by the manufacturer.
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Shifts the burden of proof to manufacturers when denying a dealer's declared average percentage markup, requiring the manufacturer to prove the denial was made pursuant to the Motor Vehicle Industry Regulation Act rather than simply establishing it was reasonable.
Legislative Description
Change provisions of the Motor Vehicle Industry Regulation Act
Last Action
Approved by Governor on May 15, 2025
5/15/2025