A bill for an act relating to franchisee compensation and time allowances for motor vehicle warranty services, and including applicability provisions.

HF 2197 changes how franchisers (like car manufacturers) compensate franchisees (dealerships) for motor vehicle warranty work. It requires franchisers to pay franchisees at least the retail rates they charge customers for parts, labor, and diagnostics, provided those rates are reasonable, and mandates franchisees to provide an itemized list of their rates. The bill removes the current requirement for franchisers to provide a schedule of compensation and time allowances, instead requiring franchisees to perform warranty services in a reasonable timeframe. This applies to motor vehicle franchises entered into or renewed on or after July 1, 2026.