KentuckyHB 6482026 Regular SessionHouse

AN ACT relating to motor vehicle dealers.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

Higher pay rules for heavy vehicles

For Class 7+ vehicles, parts pay must be at least the dealer’s actual parts cost (including freight, handling, taxes, and other out-of-pocket costs) plus a 30% gross profit. Reasonable compensation also covers dealer costs for tech training and certification, warranty admin staff, diagnostic and IT systems (including mobile devices), and specialized tools. Dealers can choose to be paid per repair (by agreement), per repair at their usual retail rates, or on a periodic basis at least annually with reasonable documentation and allocation. Pay for trained or certified technicians is based on actual hours worked unless the maker proves with clear and convincing evidence the hours were unreasonable; standard guides alone are not enough. Dealers have at least 90 days after finishing the work to submit Class 7+ claims.

Stronger warranty pay for Kentucky dealers

The law makes manufacturers defend and indemnify dealers for defect-related claims and lawsuits. Manufacturers must pay reasonable compensation for fixing defects and for transit damage when they chose the carrier. Reasonable pay includes diagnosis, labor, parts, and admin costs. Dealers must be paid at least the higher of: their retail rate for like work; parts cost plus a 30% gross profit; or the maker’s filed schedule. Makers must publish reasonable time allowances each model year and use the dealer’s retail pricing as the main benchmark. Makers cannot demand unreasonable proof to establish payment. Class 7+ vehicles follow separate rules below.

Component makers must honor dealer claims

When a component maker takes on warranty or recall reimbursements, it must follow the same rules as a vehicle manufacturer. The vehicle maker still keeps primary liability, including when a component warranty extends beyond the original vehicle warranty. Component makers must pay at least what the vehicle maker would have paid for the same repair, even with different part numbers or rebuilt parts. A maker cannot refuse to pay for a replacement part used in a warranty or recall repair unless it returns the part with a written test report that shows the test conditions and results and warrants the part is not defective and fit to reuse.

Dealers paid for maker promotions

Manufacturers must pay dealers for sponsored sales or service promotions, rebates, or programs when dealers follow the written rules provided. Dealers have at least 90 days from when they become eligible to submit promotion claims.

Faster, fairer warranty claim process

Dealers get at least 30 days after finishing covered work to submit a claim. Makers must approve or deny a completed claim within 30 days; silence means approval. Approved claims must be paid within 30 days. If a claim is missing info, the maker must notify and give at least 5 business days to fix it, and reasonable documentation can support payment. Audits are limited to 12 months after payment or program end, with written notice required before any charge-back, except for fraud. Dealers do not have to keep defective parts more than 30 days after payment. Disputes follow the process in KRS 190.057.

Sponsors & Cosponsors

Sponsor

John Blanton
Republican • House

Cosponsors

Tom Smith
Republican • House

Roll Call Votes

All Roll Calls

Yes: 219 • No: 0

House vote • 3/31/2026

passed

Yes: 90 • No: 0

Senate vote • 3/19/2026

3rd reading, passed

Yes: 35 • No: 0

House vote • 3/2/2026