Kentucky 2026 Regular Session Status: Passed Senate 13 R cosponsors

SB 94 — AN ACT relating to motor vehicle dealers.

Last action — recommitted to Appropriations & Revenue (H)

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill has passed the Senate. Introduced January 08, 2026. It now moves to the second chamber.

Next likely step: consideration and a floor vote in the House.

Prognosis

Advancing 58% · moderate confidence

Where this bill stands today.

Odds of enactment

Moderate

How often bills like it became law.

  • Passed Senate

    Current position in the legislative process.

  • 13 sponsors

    13 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (13 R).

  • Cleared a recorded vote

    Passed 1 recorded vote so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Amend KRS 190.046 to define "parts," "qualifying repair," "qualifying repair order," "repair order," "warranty," and "warranty work"; establish requirements for dealer performance of warranty work, including time allowances, labor rates, parts markups, and payment procedures and terms.

Bill Text

What changed in the latest version

446 added · 305 removed

446 line(s) added, 305 removed.

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UNOFFICIAL COPY 26 RS BR 410 AN ACT relating to motor vehicle dealers.
UNOFFICIAL COPY 26 RS SB 94/GA AN ACT relating to motor vehicle dealers.
(a) "Parts" means parts and components of a motor vehicle, including engine, transmission, and other parts assemblies, electric vehicle and hybrid electric vehicle battery electric propulsion system components and assemblies, and manufacturer replacement parts;
(a) "Qualifying repair" means a repair to a vehicle included within the manufacturer, distributor, wholesaler, factory branch, or distributor branch original new motor vehicle warranty, except when the vehicle on which the repair was performed exceeds the chronological or mileage limit of the warranty, and the repair does not otherwise constitute warranty work and does not include any of the work described in subsection (4)(b) of this section;
(b) "Qualifying repair" means a repair to a vehicle included within the manufacturer, distributor, wholesaler, factory branch, or distributor branch original new motor vehicle warranty, except that the vehicle on which the repair was performed exceeds the chronological or mileage limit of the warranty, and the repair does not otherwise constitute warranty work and does not include any of the work described in subsection (4)(b) of this section;
(b) "Qualifying repair order" means a repair order that encompasses, in whole or in part, a qualifying repair;
(c) "Qualifying repair order" means a repair order that encompasses, in whole or in part, a qualifying repair;
(c) "Repair order" means an invoice paid by a retail customer and closed at the time of submission, which encompasses one (1) or more repairs to or other work on a vehicle, and reflects, in the case of a:
(d) "Repair order" means an invoice paid by a retail customer and closed at the time of submission, which encompasses one (1) or more repairs to or other work on a vehicle, and reflects, in the case of a:
Parts markup submission, the cost of each part and its sale price;
Parts markup submission, the dealer's cost and sale price for each part;
Labor rate submission, the labor hours charged to each job and the sale price of such labor;
Labor rate submission, the amount charged for labor, and the number of hours that generated those charges;
(e) "Warranty" means and includes a new motor vehicle warranty, a recall, or a certified pre-owned warranty of a manufacturer, distributor, wholesaler, factory branch, or distributor branch to repair or replace a defect in a vehicle or part, including manufacturers of all-terrain vehicles as defined in Page 1 of 11 XXXX 1/7/2026 12:07 PM Jacketed UNOFFICIAL COPY 26 RS BR 410 KRS 189.010;
(d) "Warranty" means and includes a new motor vehicle warranty, a recall, or a certified pre-owned warranty of a manufacturer, distributor, wholesaler, factory branch, or distributor branch to repair or replace a vehicle or part, including manufacturers of all-terrain vehicles as defined in KRS 189.010;
and (f) "Warranty work";
and (e) "Warranty work":
Means work, including diagnostic labor, performed by a dealer in order to fulfill the obligations of a manufacturer, distributor, wholesaler, factory branch, or distributor branch warranty, service contract, or recall;
Means work, including necessary diagnostic labor, performed by a Page 1 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA dealer in order to fulfill the obligations of a manufacturer, distributor, wholesaler, factory branch, or distributor branch:
a.
Warranty;
b.
Recall;
or c.
Service contract that the manufacturer required in writing the dealer to provide the customer at the time of sale at no additional cost;
Includes work arranged to be performed by a dealer if such work is authorized by the manufacturer, distributor, wholesaler, factory branch, or distributor branch in order to fulfill the obligations of a manufacturer, distributor, wholesaler, factory branch, or distributor branch warranty.
Includes work a dealer arranges to be performed if the work is authorized by a manufacturer, distributor, wholesaler, factory branch, or distributor branch in order to fulfill the warranty or recall obligations of the manufacturer, distributor, wholesaler, factory branch, or distributor branch warranty.
(2) Notwithstanding the terms of any franchise agreement, each motor vehicle manufacturer or distributor[,] doing business within this Commonwealth[,] shall assume all responsibility for and shall defend, indemnify, and hold harmless its motor vehicle dealers against any loss, damages, and expenses, including legal costs, arising out of:
(2) Notwithstanding the terms of any franchise agreement, each motor vehicle manufacturer or distributor[,] doing business within this Commonwealth[,] shall, except for claims involving negligence by the dealer, including its employees and subcontractors, assume all responsibility for and shall defend, indemnify, and hold harmless its motor vehicle dealers against any loss, damages, and expenses, including legal costs, arising out of:
(a) Complaints, claims, recall repairs or modifications, or factory authorized or directed repairs;
(a) Complaints, claims, warranty repairs, recall repairs or modifications, or factory authorized or directed repairs;
(b) Any manufacturer warranty or maintenance plans, extended warranty, certified pre-owned warranty, or service contract issued by the manufacturer or its parent, subsidiary, affiliate, or agent;
(b) [, or ]Lawsuits resulting from warranty defects, which shall include structural or production defects;
(c) [, or ]Lawsuits resulting from warranty defects, which shall include structural or production defects;
or (c) Defects in the assembly[;] or design of motor vehicles, parts, accessories,[;] or other functions beyond the control of the dealer, including without limitation, the selection of parts or components for the vehicle.
or (d) Defects in the assembly[;] or design of motor vehicles, parts, accessories,[;] or other functions beyond the control of the dealer, including without limitation, the selection of parts or components for the vehicle.
Each manufacturer or distributor shall pay[ reasonable] compensation to any authorized dealer who performs work to repair defects, or to repair any damage to the manufacturer's Page 2 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA or distributor's product sustained while the product is in transit to the dealer, when the carrier or the means of transportation is designated by the manufacturer or distributor.
Each manufacturer or distributor shall pay[ reasonable] compensation to any authorized dealer who Page 2 of 11 XXXX 1/7/2026 12:07 PM Jacketed UNOFFICIAL COPY 26 RS BR 410 performs work to repair defects, or to repair any damage to the manufacturer's or distributor's product sustained while the product is in transit to the dealer, when the carrier or the means of transportation is designated by the manufacturer or distributor.
(3) (a) 1.
(3) (a) Each manufacturer or distributor shall provide to its dealers with each model year a schedule of time allowances for the performance of warranty repair work and services, which shall include time allowances for the diagnosis and performance of warranty work and service time[, and shall be reasonable and adequate for the work to be performed].
Each manufacturer or distributor shall provide to its dealers with each model year a schedule of time allowances for the performance of warranty repair work and services, which shall include time allowances for the diagnosis and performance of warranty work and service time[, and shall be reasonable and adequate for the work to be performed].
Time allowances and rates for the diagnosis and performance of warranty work shall not be less than those charged to retail customers for the same work to be performed.
2.
In the event that a time allowance has not been agreed to for warranty work, or said time guide does not define time for an appliable warranty repair, the time allowance shall be one hundred fifty percent (150%) of the manufacturer's time guide.
A manufacturer or distributor shall not deny a written request submitted by a franchised dealer for modification of a manufacturer or distributor's uniform time allowance for a specific warranty repair, or a request submitted by a franchised dealer for an additional time allowance for either diagnostic or repair work on a specific vehicle covered under warranty, unless:
(b) A manufacturer shall not establish or implement a term, policy, or procedure different from those described in this section for any motor vehicle dealer to obtain compensation under this section, or pay a motor vehicle dealer or franchised dealer of an all-terrain vehicle, as defined in KRS 189.010, less than the amounts due pursuant to this section.
a.
(c) Manufacturers shall pay motor vehicle dealers and franchised dealers of all-terrain vehicles the same effective labor rate that the dealer receives for customer-pay repairs.
The request fails to include all information and documentation reasonably required by the manufacturer or distributor to assess the merits of the franchised dealer's request;
This requirement shall include diagnostic time for all warranty repairs as well as service, labor, and parts.
b.
If a technician is required to communicate with a technical assistance center, an engineering department, or some external manufacturer source in order to provide a warranty repair, the manufacturer shall pay for the time from start of the Page 3 of 11 XXXX 1/7/2026 12:07 PM Jacketed UNOFFICIAL COPY 26 RS BR 410 communication, including time on hold, until the communication is complete.
Information submitted with the request fails to substantiate the merits of the request which, if the request is for a modification of a time allowance, must include a substantiation that the manufacturer or distributor's time allowance is insufficient for a qualified technician to complete the repair under ordinary circumstances;
(d) A motor vehicle dealer or franchised dealer of all-terrain vehicles may submit a request to the manufacturer for a warranty labor rate increase no more than once per calendar year.
c.
The request shall be made by the dealer in writing and based on one hundred (100) consecutive qualifying repair orders or all qualifying repair orders over a ninety (90) day period, whichever occurs first.
The manufacturer or distributor rebuts the time allowance claimed by the dealer for a modification of the manufacturer or distributor's uniform time allowance or request for additional time allowance for diagnostic or repair work on a specific Page 3 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA vehicle;
d.
For purposes of modification of a uniform time allowance, the manufacturer or distributor provides an explanation for why a dealer can complete the repair in the time allowed or establishes a new time allowance and provides an explanation for the new time allowance;
or e.
For purposes of a request for additional time allowance for diagnostic or repair work on a specific vehicle, the manufacturer determines that the hours claimed were unnecessary, fraudulent, for diagnostic or repair work that did not follow the manufacturer or distributor's diagnostic and repair procedures, or were worked to remedy a mistake by the dealer or its employee.
3.
A manufacturer or distributor may require requests to be submitted in accordance with a uniform process, which may not be unduly burdensome or time consuming.
4.
A manufacturer or distributor shall respond to a franchised dealer's accurate and complete request for additional time for diagnostic or repair work on a specific warranty repair within forty-five (45) days or the request shall be deemed approved.
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A manufacturer or distributor shall respond to a franchised dealer's accurate, complete request to modify a uniform time allowance within two hundred forty (240) days or the request shall be deemed approved.
The time periods in this subparagraph shall be tolled if the manufacturer or distributor demonstrates its ability to respond is delayed due to strike, shortage, act of God, or other cause over which the manufacturer or distributor has no control.
Page 4 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA (b) A manufacturer shall not require a term, policy, or procedure different from those described in this section for any motor vehicle dealer to obtain compensation under this section, or pay a motor vehicle dealer or franchised dealer of an all-terrain vehicle, as defined in KRS 189.010, less than the rates due pursuant to this section.
(c) 1.
Manufacturers shall pay motor vehicle dealers and franchised dealers of all-terrain vehicles the same retail labor rate that the dealer receives for customer-pay repairs, including diagnostic time for all warranty repairs as well as service, labor, and parts.
2.
A dealer's retail labor rate shall be established by submission by the dealer of their choice of one hundred (100) consecutive qualifying repair orders or all qualifying repair orders in a ninety (90) day period, whichever is less.
If a manufacturer or distributor believes the dealer's retail labor rate, based on the submitted documentation, is misleading, inaccurate, or fraudulent, the manufacturer or distributor may rebut the dealer's submitted rate or initiate legal proceedings.
3.
If a qualified technician is required to communicate with a technical assistance center, an engineering department, or some external manufacturer source in order to provide a warranty repair on an issue not covered by a manufacturer's service manual or bulletin, the manufacturer shall pay for the time from the start of the communication, including time on hold, until the communication is complete, provided the communication was made in good faith.
(d) A motor vehicle dealer or franchised dealer of all-terrain vehicles may submit a request to the manufacturer for a warranty labor rate increase or parts markup increase no more than once in any twelve (12) month period.
The request shall be made by the dealer in writing and based on one Page 5 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA hundred (100) consecutive qualifying repair orders or all qualifying repair orders over a ninety (90) day period, whichever is less.
Only the labor rate or parts markup.
Only the labor rate or parts markup, if the dealer has not requested to establish or modify that rate within the previous twelve (12) months.
The submitted parts markup or labor rate shall be presumed accurate and shall go into effect thirty (30) days after the manufacturer, distributor, wholesaler, factory branch, or distributor branch receives the submission unless the manufacturer or distributor rebuts the declared rate within thirty (30) days of submission.
The submitted parts markup or labor rate shall be presumed accurate and shall go into effect thirty (30) days after the manufacturer, distributor, wholesaler, factory branch, or distributor branch approves the submission.
If the manufacturer or distributor does not approve or rebut the declared rate within thirty (30) days of receipt, then the rate shall be deemed approved on the thirty-first day following receipt.
The manufacturer or distributor shall propose an adjustment of the average percentage parts markup or labor rate based on that rebuttal no later than thirty (30) days after submission.
The manufacturer or distributor shall propose an adjustment of the average percentage parts markup or labor rate based on that rebuttal no later than thirty (30) days after receipt of the submission.
If a protest is filed, the commission shall inform the manufacturer or Page 4 of 11 XXXX 1/7/2026 12:07 PM Jacketed UNOFFICIAL COPY 26 RS BR 410 distributor that a timely protest has been filed and that a hearing will be held on such protest.
If a protest is filed, the commission shall inform the manufacturer or distributor that a timely protest has been filed and that a hearing will be held on the protest.
In any hearing held pursuant to this paragraph, the manufacturer or distributor shall have the burden of proving that the rate declared by the dealer was unfair and unreasonable and that the proposed adjustment of the average percentage markup or labor rate is fair and reasonable pursuant to subsection (4) of this section.
In any hearing held pursuant to this paragraph, the manufacturer or distributor shall have the burden of proving that the rate declared by the dealer was unfair and unreasonable and that Page 6 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA the proposed adjustment of the average percentage markup or labor rate is fair and reasonable pursuant to subsection (4) of this section.
(g) Warranty or factory compensated repairs shall not be excluded from the requirements of this subsection, including recalls or other voluntary stop- sell repairs required by the manufacturer.
(g) Warranty repairs and recall repairs, including voluntary stop-sell repairs required by the manufacturers, shall not be excluded from the requirements of this subsection.
(4)[(2)] (a) A motor vehicle dealer or franchised dealer of all-terrain vehicles who is entitled to compensation for warranty work shall be compensated for all aspects of the repair, including[In the determination of what constitutes "reasonable compensation" under this section, the principal factor to be considered shall be the amount of money that the dealer is charging its other customers for the same type service or repair work.
(h) If a manufacturer or distributor determines from any set of repair orders submitted under this section that the retail labor rate or parts markup percentage is substantially higher or lower than the rate currently on record with the manufacturer or distributor for labor or parts, the manufacturer or distributor may request additional documentation for a period of either sixty (60) days prior to or sixty (60) days subsequent to the time period for which the repair orders were submitted for purposes of an alteration or to rebut the dealer's proposed rate.
(i) 1.
A manufacturer or distributor may request up to one hundred (100) additional consecutive repair orders that exclude repairs listed in subsection (4)(b) of this section and that are different from those provided under paragraphs (c)2.
and (d) of this subsection from a dealer to determine if the dealer's parts markup rate, labor rate, or both are materially different than the rates the dealer has declared with the manufacturer or distributor.
2.
The manufacturer or distributor may adjust the subsequent rates paid by the manufacturer or distributor to the dealer if the manufacturer or distributor determines that the dealer's rates charged to customers for nonwarranty work are less than the rates currently being paid by the manufacturer or distributor to the dealer for warranty work.
The manufacturer or distributor shall have thirty (30) days from receiving Page 7 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA all requested additional repair orders to rebut the new vehicle dealer's retail labor rate, retail parts rate, or both.
3.
The additional repair orders specified in this paragraph shall be from a ninety (90) day period selected by the manufacturer or distributor within the most recent previous twelve (12) month period, and the repair orders shall be selected by the dealer.
A manufacturer or distributor may not request repair orders under this paragraph within twelve (12) months of any prior request under this paragraph.
(4)[(2)] (a) A motor vehicle dealer or franchised dealer of all-terrain vehicles that is entitled to compensation for warranty work shall be compensated for all aggregated aspects of the repair[In the determination of what constitutes "reasonable compensation" under this section, the principal factor to be considered shall be the amount of money that the dealer is charging its other customers for the same type service or repair work.
(b) "Reasonable compensation" shall include]:
(b) "Reasonable compensation" shall include:
Page 5 of 11 XXXX 1/7/2026 12:07 PM Jacketed UNOFFICIAL COPY 26 RS BR 410 4.
4.
Administrative and clerical costs.
Administrative and clerical costs].
1.
Page 8 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA 1.
Replacement of or work on tires or wheels, including alignments unless required during the course of a qualifying repair, wheel or tire rotations or replacement of brake drums, rotors, shoes, or pads;
Replacement of or work on tires or wheels, including alignments unless required during the course of a qualifying repair, wheel or tire rotations, or replacement of brake drums, rotors, shoes, or pads;
Repairs for which volume discounts have been negotiated with government agencies, insurers, or service contract providers;
Repairs for which volume discounts have been negotiated with government agencies or insurers;
Body shop repairs of conditions caused by collision, road hazard, the force of the elements, vandalism, theft, or owner, operator, or third- party negligence or deliberate act;
Vehicle body damage repairs;
Page 6 of 11 XXXX 1/7/2026 12:07 PM Jacketed UNOFFICIAL COPY 26 RS BR 410 14.
14.
Engine and transmission assemblies;
15.
Electric vehicle and hybrid electric vehicle propulsion battery assemblies;
16.
17.
15.
or 18.
or 16.
(c) Except as provided in paragraph (d) of this subsection, the compensation of a dealer shall not be less than:
(c)[ Except as provided in paragraph (d) of this subsection, the compensation of a dealer shall not be less than:
1.
Page 9 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA 1.
The amounts indicated for work on the schedule of warranty compensation required to be filed by the manufacturer with the commission as a part of the manufacturer's license application by KRS 190.030, provided the rates fully compensate the dealer for all costs, including labor, parts, and administrative costs, associated with performing the warranty repair.
The amounts indicated for work on the schedule of warranty compensation required to be filed by the manufacturer with the commission as a part of the manufacturer's license application by KRS 190.030.
(d) The compensation of a dealer for vehicles with a classification of seven (7) or higher as established in 49 C.F.R.
(d)] The compensation of a dealer for vehicles with a classification of seven (7) or higher as established in 49 C.F.R.
(e) Payments shall not be reduced due to preestablished market norms or market averages.
(d)[(e)] Payments shall not be reduced due to preestablished market norms or market averages.
Manufacturers shall not establish restrictions or Page 7 of 11 XXXX 1/7/2026 12:07 PM Jacketed UNOFFICIAL COPY 26 RS BR 410 limitations of customer repair frequency due to failure rate indices or national failure averages.
Manufacturers shall not establish restrictions or limitations of customer repair frequency due to failure rate indices or national failure averages.
(f) Manufacturers shall not impose any form of cost recovery fees or surcharges, including but not limited to an increase in the dealer's new vehicle invoice acquisition costs, against a franchised motor vehicle dealer for payments made in accordance with this section.
(e) 1.
(g) If a manufacturer furnishes parts or components to a motor vehicle dealer at no cost to use in performing repairs subject to a recall or warranty repair, the manufacturer shall compensate the motor vehicle dealer for the parts or components in an amount equivalent to the motor vehicle dealer's retail average percentage markup on the parts or component as if the parts or components had been sold to the motor vehicle dealer by the manufacturer.[A manufacturer or distributor shall not require unreasonable proof to establish "reasonable compensation."] (5)[(3)] (a) A manufacturer or distributor shall not require a dealer to submit a claim authorized under this section sooner than thirty (30) days after the dealer completes the preparation, delivery, or warranty service authorizing the claim for preparation, delivery, or warranty service.
Except as provided in subparagraph 2.
of this paragraph, if a manufacturer furnishes parts or components to a motor vehicle dealer at no cost to use in performing repairs subject to a recall or warranty repair, the manufacturer shall compensate the motor vehicle dealer for the parts or components in an amount equivalent to the motor vehicle dealer's retail average percentage markup on the parts or component as if the parts or components had been sold to the motor vehicle dealer by the manufacturer.
2.
For work involving a complete engine, transmission, or electric or Page 10 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA hybrid vehicle propulsion battery, the manufacturer or distributor shall provide the dealer with compensation totaling not less than twenty percent (20%) of the price of the component in the manufacturer or distributor's parts catalog, not to exceed one thousand dollars ($1,000) per component, regardless of whether the part was provided by the manufacturer at no cost, at a discount, or purchased by the dealer from the manufacturer at full cost.[A manufacturer or distributor shall not require unreasonable proof to establish "reasonable compensation."] (5)[(3)] (a) A manufacturer or distributor shall not require a dealer to submit a claim authorized under this section sooner than thirty (30) days after the dealer completes the preparation, delivery, or warranty service authorizing the claim for preparation, delivery, or warranty service.
(e) A dealer shall not be required to maintain defective parts for more than thirty Page 8 of 11 XXXX 1/7/2026 12:07 PM Jacketed UNOFFICIAL COPY 26 RS BR 410 (30) days after payment of a claim.
(e) A dealer shall not be required to maintain defective parts for more than thirty (30) days after payment of a claim.
(g) If a manufacturer imposes a recall or a stop sale on any new vehicle on a dealer's inventory that prevents the sale of the vehicle, the manufacturer shall compensate the dealer for any interest and storage until the vehicle is repaired and ready for sale.
(6) If a manufacturer imposes a recall or a stop-sale order on any new vehicle in a dealer's inventory that prevents the sale of the vehicle, the manufacturer shall Page 11 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA compensate the dealer in accordance with 49 U.S.C.
(6)[(4)] A manufacturer or distributor shall compensate the dealer for manufacturer- sponsored or distributor-sponsored sales or service promotion events, including but not limited to rebates, programs, or activities in accordance with established written guidelines for such events, programs, or activities, which the manufacturer or distributor shall provide to each dealer.
sec.
(7)[(5)] (a) A manufacturer or distributor shall not require a dealer to submit a claim authorized under subsection (6)[(4)] of this section sooner than thirty (30) days after the dealer becomes eligible to submit the claim.
30116.
(b) All claims made by a dealer pursuant to subsection (6)[(4)] of this section for promotion events, including but not limited to rebates, programs, or activities, shall be paid within thirty (30) days after their approval.
(7) (a) If parts or a remedy are not reasonably available to perform a recall service or repair on a used vehicle held for sale by a dealer authorized to sell and service new vehicles of the same line make within thirty (30) days of the manufacturer issuing the initial notice of recall, and the manufacturer has issued a stop-sale or do-not-drive order on the vehicle, the manufacturer shall compensate the dealer at a prorated rate of at least one percent (1%) of the value of the vehicle each month beginning on the date that is thirty (30) days after the date on which the stop-sale or do-not-drive order was provided to the dealer until the earlier of either the date the:
1.
Recall or remedy parts are made available;
or 2.
Dealer sells, trades, or otherwise disposes of the affected used motor vehicle.
(b) The value of a used vehicle shall be the average trade-in value for used vehicles as indicated in an independent third-party guide for the year, make, and model of the recalled vehicle.
(c) This subsection shall only apply to:
1.
Used vehicles subject to safety or emissions recalls pursuant to and recalled in accordance with federal law and regulations and where a stop-sale or do-not-drive order has been issued and repair parts or remedy remain unavailable for thirty (30) days or longer;
and 2.
New motor vehicle dealers holding an affected used vehicle for sale:
a.
In inventory at the time the stop-sale or do-not-drive order was issued;
or b.
Which was taken in the used vehicle inventory of the dealer as a consumer trade-in incident to the purchase of a new vehicle from the dealer after the stop-sale or do-not-drive order was Page 12 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA issued;
and c.
That is a line make that the dealer is franchised to sell or on which the dealer is authorized to perform recall repairs.
(d) A manufacturer or distributor may compensate its dealers under a national recall compensation program, provided the compensation under the program is:
1.
Equal to or greater than that provided under paragraph (b) of this subsection;
or 2.
Of an amount on which the manufacturer or distributor and the dealer agree.
(e) A manufacturer or distributor may direct the manner and method in which a dealer must demonstrate the inventory status of an affected used motor vehicle to determine eligibility under paragraph (c) of this subsection, provided that the manner and method may not be unduly burdensome and may not require information that is unduly burdensome to provide.
(f) This subsection shall not require a manufacturer or distributor to provide total compensation to a dealer which would exceed the total average trade- in value of the affected used motor vehicle as originally determined under paragraph (b) of this subsection.
(g) Any remedy provided to a dealer under this subsection shall be exclusive and shall not be combined with any other state or federal recall compensation remedy.
(8) (a) Subject to paragraph (b) of this subsection, a manufacturer shall not establish an unduly burdensome process for:
1.
The submission of a repair order;
or 2.
Proving payment for submitted repair orders.
(b) Requiring customer signatures or receipts shall not be considered unduly Page 13 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA burdensome under this subsection.
(9)[(4)] A manufacturer or distributor shall compensate the dealer for manufacturer- sponsored or distributor-sponsored sales or service promotion events, including but not limited to rebates, programs, or activities in accordance with established written guidelines for such events, programs, or activities, which the manufacturer or distributor shall provide to each dealer.
(10)[(5)] (a) A manufacturer or distributor shall not require a dealer to submit a claim authorized under subsection (9)[(4)] of this section sooner than thirty (30) days after the dealer becomes eligible to submit the claim.
(b) All claims made by a dealer pursuant to subsection (9)[(4)] of this section for promotion events, including but not limited to rebates, programs, or activities, shall be paid within thirty (30) days after their approval.
(e) Any claim disapproved in writing within thirty (30) days of submission shall state the reason for the disapproval and permit the motor vehicle dealer to correct and resubmit the disapproved claim within thirty (30) days of receipt Page 9 of 11 XXXX 1/7/2026 12:07 PM Jacketed UNOFFICIAL COPY 26 RS BR 410 of the disapproval.
(e) Any claim disapproved in writing within thirty (30) days of submission shall state the reason for the disapproval and permit the motor vehicle dealer to correct and resubmit the disapproved claim within thirty (30) days of receipt of the disapproval.
(8)[(6)] If a dealer submits any claim under this section to a manufacturer or distributor that is incomplete, inaccurate, or lacking any information usually required by the manufacturer or distributor, or if incomplete, inaccurate, or missing information is discovered during an audit, then the manufacturer or distributor shall promptly notify the dealer, and the time limit to submit the claim shall be extended for a reasonable length of time, not less than five (5) business days following notice by the manufacturer or distributor to the dealer, for the dealer to provide the complete, accurate, or lacking information to the manufacturer or distributor.
(11)[(6)] If a dealer submits any claim under this section to a manufacturer or distributor that is incomplete, inaccurate, or lacking any information usually required by the manufacturer or distributor, or if incomplete, inaccurate, or missing Page 14 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA UNOFFICIAL COPY 26 RS SB 94/GA information is discovered during an audit, then the manufacturer or distributor shall promptly notify the dealer, and the time limit to submit the claim shall be extended for a reasonable length of time, not less than five (5) business days following notice by the manufacturer or distributor to the dealer, for the dealer to provide the complete, accurate, or lacking information to the manufacturer or distributor.
(9)[(7)] (a) A manufacturer or distributor may only audit warranty, recall, sales, or incentive claims for a period of twelve (12) months following payment, or the end of a program which does not exceed one (1) year in length, whichever is later, subject to all of the provisions of this section.
(12)[(7)] (a) A manufacturer or distributor may only audit warranty, recall, sales, or incentive claims for a period of twelve (12) months following payment, or the end of a program which does not exceed one (1) year in length, whichever is later, subject to all of the provisions of this section.
Page 10 of 11 XXXX 1/7/2026 12:07 PM Jacketed UNOFFICIAL COPY 26 RS BR 410 (d) Notwithstanding the limitations of this subsection, a manufacturer that possesses evidence which would cause a person of ordinary caution, prudence, and judgment to believe that a dealer submitted a claim that was fraudulent, false, or misleading may audit the dealer for the claims during any period in which an action for fraud or for the submission of false or misleading claims may be commenced under applicable state law.
(d) Notwithstanding the limitations of this subsection, a manufacturer that possesses evidence which would cause a person of ordinary caution, prudence, and judgment to believe that a dealer submitted a claim that was fraudulent, false, or misleading may audit the dealer for the claims during any period in which an action for fraud or for the submission of false or misleading claims may be commenced under applicable state law.
Page 11 of 11 XXXX 1/7/2026 12:07 PM Jacketed
Page 15 of 15 SB009410.100 - 410 - XXXX 3/6/2026 10:17 AM GA
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How this bill changes current law

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Compared against the Kentucky Revised Statutes as published AI-generated reading aid — verify against the official bill.

The bill amends KRS 190.046 to clarify definitions related to warranty repairs, modify the requirements for manufacturers regarding compensation to dealers, and enhance the submission process for adjustments to labor rates and parts markups.

  • KRS 190.046

    (1) As used in this section: (a) "Qualifying repair" means a repair to a vehicle included within the manufacturer, distributor, wholesaler, factory branch, or distributor branch original new motor vehicle warranty, except when the vehicle on which the repair was performed exceeds the chronological or mileage limit of the warranty, and the repair does not otherwise constitute warranty work and does not include any of the work described in subsection (4)(b) of this section; (b) "Qualifying repair order" means a repair order that encompasses, in whole or in part, a qualifying repair; (c) "Repair order" means an invoice paid by a retail customer and closed at the time of submission, which encompasses one (1) or more repairs to or other work on a vehicle, and reflects, in the case of a: 1. Parts markup submission, the dealer's cost and sale price for each part; and 2. Labor rate submission, the amount charged for labor, and the number of hours that generated those charges; (d) "Warranty" means and includes a new motor vehicle warranty, a recall, or a certified pre-owned warranty of a manufacturer, distributor, wholesaler, factory branch, or distributor branch to repair or replace a vehicle or part, including manufacturers of all-terrain vehicles as defined in KRS 189.010; (e) "Warranty work": 1. Means work, including necessary diagnostic labor, performed by a dealer in order to fulfill the obligations of a manufacturer, distributor, wholesaler, factory branch, or distributor branch: Warranty; Recall; or Service contract that the manufacturer required in writing the dealer to provide the customer at the time of sale at no additional cost; 2. Includes work a dealer arranges to be performed if the work is authorized by a manufacturer, distributor, wholesaler, factory branch, or distributor branch in order to fulfill the warranty or recall obligations of the manufacturer, distributor, wholesaler, factory branch, or distributor branch warranty.

    This addition provides specific definitions that clarify what constitutes qualifying repairs and the process for warranty work.

  • KRS 190.046

    Each manufacturer or distributor shall pay reasonable compensation to any authorized dealer who performs work to repair defects, or to repair any damage to the manufacturer's or distributor's product sustained while the product is in transit to the dealer, when the carrier or the means of transportation is designated by the manufacturer or distributor. → Each manufacturer or distributor shall pay compensation to any authorized dealer who performs work to repair defects, or to repair any damage to the manufacturer's or distributor's product sustained while the product is in transit to the dealer, when the carrier or the means of transportation is designated by the manufacturer or distributor.

    The requirement now specifies compensation without the term 'reasonable,' indicating that all compensation is due regardless of its reasonableness.

  • KRS 190.046

    reasonable and adequate for the work to be performed.

    This removes the obligation for time allowances to be deemed reasonable and adequate, possibly allowing for less stringent requirements on manufacturers.

  • KRS 190.046

    a dealer may submit reimbursement requests for its costs described in subparagraph 2. of this paragraph, and the manufacturer, component manufacturer, or distributor shall pay for those costs, at the dealer's election either on a: → A manufacturer or distributor shall not require a term, policy, or procedure different from those described in this section for any motor vehicle dealer to obtain compensation under this section, or pay a motor vehicle dealer or franchised dealer of an all-terrain vehicle, as defined in KRS 189.010, less than the rates due pursuant to this section.

    This ensures that manufacturers cannot impose differing terms or lower compensation rates than prescribed by the bill.

Action History

  1. recommitted to Appropriations & Revenue (H)

  2. taken from the Orders of the Day

  3. floor amendments (2) and (3-title) filed

  4. floor amendment (1) filed

  5. posted for passage in the Regular Orders of the Day for Friday, March 27 2026

  6. 2nd reading, to Rules

  7. reported favorably, 1st reading, to Calendar

  8. to Transportation (H)

  9. to Committee on Committees (H)

  10. received in House

  11. 3rd reading, passed 36-0 with Committee Substitute (1)

  12. posted for passage in the Regular Orders of the Day for Friday, March 06 2026

  13. 2nd reading, to Rules

  14. reported favorably, 1st reading, to Calendar with Committee Substitute (1)

  15. to Transportation (S)

  16. to Committee on Committees (S)

  17. introduced in Senate

Sponsors

Sponsorship breakdown

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13 sponsors · 0 co-sponsors · 125 not signed on

Sponsors (13)

Co-sponsors (0)

None.

Not signed on (125)

125 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

PASS SB 94 w/ SCS 1

Passed 36 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democrat 5000
Republican 31002
Total 36002
% of votes cast 95%0%0%5%
How each member voted (38)
Member Party Vote
Cassie Chambers Armstrong Democrat Yea
Gary Clemons Democrat Yea
Gerald A. Neal Democrat Yea
Karen Berg Democrat Yea
Keturah J. Herron Democrat Yea
Aaron Reed Republican Yea
Amanda Mays Bledsoe Republican Yea
Brandon J. Storm Republican Yea
Christian McDaniel Republican Yea
Craig Richardson Republican Yea
Danny Carroll Republican Yea
David P. Givens Republican Yea
Donald Douglas Republican Yea
Gary Boswell Republican Yea
Greg Elkins Republican Yea
Jared Carpenter Republican Yea
Jason Howell Republican Yea
Jason Nemes Republican Yea
Jimmy Higdon Republican Not Voting
Julie Raque Adams Republican Yea
Lindsey Tichenor Republican Yea
Matt Nunn Republican Yea
Matthew Deneen Republican Yea
Max Wise Republican Yea
Michael Meredith Republican Yea
Nick Wilson Republican Yea
Phillip Wheeler Republican Yea
Rick Girdler Republican Yea
Robby Mills Republican Yea
Robert Stivers Republican Yea
Robin L. Webb Republican Yea
Scott Madon Republican Yea
Shelley Funke Frommeyer Republican Not Voting
Stephen West Republican Yea
Steve Rawlings Republican Yea
Tom Smith Republican Yea
Wade Williams Republican Yea
Walker Thomas Republican Yea

Official roll call →

Subjects

transportation
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Frequently asked questions

What does SB 94 do?
Amend KRS 190.046 to define "parts," "qualifying repair," "qualifying repair order," "repair order," "warranty," and "warranty work"; establish requirements for dealer performance of warranty work, including time allowances, labor rates, parts markups, and payment procedures and terms.
Who sponsors SB 94?
SB 94 is sponsored by Max Wise (Republican), Gex Williams (Republican), Phillip Wheeler (Republican), Brandon J. Storm (Republican), Brandon Smith (Republican), Michael J. Nemes (Republican), Scott Madon (Republican), David P. Givens (Republican), Greg Elkins (Republican), Donald Douglas (Republican), Matthew Deneen (Republican), Aaron Reed (Republican), and Mike Wilson (Republican).
What is the current status of SB 94?
This bill has passed the Senate. Introduced January 08, 2026. It now moves to the second chamber.
Where can I track SB 94?
Track SB 94 free on One Click Politics — get push/email alerts when it moves.

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