KentuckyHB 6482026 Regular SessionHouseWALLET

AN ACT relating to motor vehicle dealers.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Extra pay for class 7+ dealers

For class 7 or larger vehicles, parts pay must be your actual acquisition cost, including freight, handling, taxes, and other out‑of‑pocket costs, plus 30% profit. Reasonable pay also covers costs to train and certify techs and warranty staff, computer hardware and software used for warranty and recall work, and special tools. Dealers can choose how they get repaid for these costs: per repair by agreement, per repair using normal nonwarranty rates, or regular payments at least once a year with reasonable records.

Manufacturers must defend and pay dealers

The law requires manufacturers and distributors to defend, indemnify, and hold Kentucky dealers harmless for warranty and recall claims and lawsuits. When a component maker handles a claim, it must follow the same rules, and the vehicle maker still has primary liability, even during extended component warranties. Dealers must be paid no less by a component maker than they would have been paid by the vehicle maker. A maker cannot refuse to pay for a replaced part unless it returns the part with a written test report proving it is not defective and fit for reuse. The law also defines “component manufacturer” to include anyone who makes, assembles, imports, or distributes new, remanufactured, or rebuilt vehicle parts.

Retail rate warranty pay for dealers

The law sets dealer pay for warranty and recall work at the higher of your normal retail charges or the maker’s filed warranty rates. For parts, pay cannot be less than your cost plus a 30% gross profit. Reasonable pay must cover diagnosis, repair labor, parts, and admin and clerical work. A trained technician’s actual hours are the basis for pay unless the maker proves they were unreasonable; labor guides alone are not enough. Makers must also pay for transit damage when they chose the carrier and give dealers a reasonable, model‑year time schedule for warranty repairs.

Faster dealer claim payments and audits

The law requires makers to approve or deny claims within 30 days of getting a completed form; if not, the claim is approved and must be paid within 30 days. Dealers do not have to file warranty claims sooner than 30 days after service, or 90 days for class 7+ vehicles. Promotions must be paid under written rules, with no filing required sooner than 90 days after eligibility, and the same 30‑day approval and payment deadlines apply. Makers cannot demand unreasonable proof; they must promptly flag missing info and give at least 5 business days to fix, cannot ask for records more than 12 months after payment (or program end up to one year), and dealers need not keep defective parts more than 30 days after payment. Audits are limited to 12 months (or program end up to one year) but can go longer when there is reasonable evidence of fraud; before any charge‑back, dealers must get written notice with the audit and detailed reasons, and disputes use the state process in KRS 190.057.

Sponsors & Cosponsors

Sponsor

John Blanton
Republican • House

Cosponsors

Brandon J. Storm
Republican • Senate
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