SB 1308: Motor vehicle dealers; recall and warranty costs, right of first refusal. - Virginia

Enrolled → Chaptered · 5 edits

MODERATE

This bill finalizes the changes to Virginia's motor vehicle dealer compensation laws, establishing a new approval date of March 24, 2025. It clarifies that dealers must be compensated for recall and warranty work at rates no lower than what they charge retail customers for non-warranty services. The law also defines specific exclusions for calculating these rates, such as menu-priced items and insurance-paid repairs, and sets a timeline for requesting compensation increases based on repair order data.

Scope change

The bill applies to all motor vehicle manufacturers, factory branches, distributors, and distributor branches operating in Virginia, with specific exemptions for large commercial truck manufacturers involved in prior federal litigation.

TIMELINE

Added the specific approval date of March 24, 2025, to the enrolled act.

REQUIREMENT

Clarified that compensation for recall and warranty work must be at least equal to the dealer's retail price for non-warranty parts and services.

Established a specific process for dealers to request compensation increases based on an analysis of 100 consecutive repair orders or a 90-day period.

Required that compensation for non-warranty recall parts be based on the highest price of those parts in the 12 months prior to the recall announcement.

DEFINITION

Defined 'retail' for compensation calculations to explicitly exclude menu-priced parts, internal repairs, group discounts, and insurance-paid repairs.

Transportation Substitute → Enrolled · 2 edits · Mar 24, 2025

MINOR

The bill has transitioned from a draft 'Substitute' version to its final 'Enrolled' status, making it an official law. The substantive text of the bill regarding motor vehicle dealers, recall costs, and warranty rights remains unchanged; the only modifications are administrative updates to the header indicating the session year, final approval, and removal of draft placeholders.

TECHNICAL

Removed draft status indicators, committee attribution, and patron information from the header.

Added final session year (2025), 'Enrolled' status, and 'Approved' designation to the header.

Introduced → Transportation Substitute · 5 edits

MODERATE

This amendment updates Virginia's motor vehicle dealer laws to clarify how manufacturers must compensate dealers for warranty and recall work, specifically adding a requirement that technicians performing these repairs meet manufacturer qualifications. It also strengthens dealer protections by ensuring rental vehicle reimbursement claims can be submitted in 30-day increments before the rental period ends if repairs are delayed, and by preventing dealers from being denied reimbursement simply because they cannot find a specific type of rental car.

Scope change

The bill's scope remains focused on motor vehicle dealers, manufacturers, and distributors, but the applicability of certain compensation rules is clarified regarding the timing of rental claims and the specific qualifications required for repair technicians.

REQUIREMENT

Clarified that diagnostic work for warranty repairs includes time spent by a technician who meets the manufacturer's specific qualifications and requirements communicating with technical support.

Added a provision stating that a dealer's inability to find a specific type of rental vehicle (by line-make, size, or category) cannot be used as a reason to refuse full reimbursement for rental costs.

Expanded the ability for dealers to submit rental vehicle reimbursement claims in 30-day increments prior to the end of the rental period if the repair is delayed due to parts or information issues from the manufacturer.

Refined the rule for returning unsold parts, clarifying that parts needed for recalls or similar repairs must be returnable within 12 months of purchase and cannot be deemed obsolete.

TECHNICAL

Corrected a grammatical error in the definition of an 'automated ordering system' by removing a redundant 'is'.

Motor vehicle dealers; recall and warranty costs, right of first refusal.

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