Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.

HB 3859 requires motor vehicle manufacturers and distributors to fairly reimburse franchised dealers for warranty repairs, recalls, over-the-air software updates, and vehicle preparation/delivery work. It directly affects dealers who perform these services for customers. The bill mandates that compensation must not be less than what dealers charge retail customers for similar non-warranty work, using a specific formula based on the dealer's average labor rate for the prior six months (excluding routine maintenance, tire services, discounts, and goodwill repairs). This ensures dealers are compensated at market rates for these required services.