Revises provisions relating to motor vehicles. (BDR 43-673)
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SB 303 — Revises provisions relating to motor vehicles. (BDR 43-673)
Last action — (Pursuant to Joint Standing Rule No. 14.3.3, no further action allowed.)
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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3Passed Senate
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4Passed Assembly
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5To Executive
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6Enacted
This bill died with 2023 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
472 added · 521 removed472 line(s) added, 521 removed.
(Reprinted with amendments adopted on April 24, 2023) FIRST REPRINT S.B.
Existing law provides that it is an unfair act or practice for any manufacturer of motor vehicles, trailers or semitrailers to fail to compensate a dealer fairly for labor, parts and other expenses incurred by the dealer under the manufacturer’s warranty agreements or any recall service or repair.
(NRS 482.36385) Section 22 of this bill calculatingremoves thethis compensationprovision. that a manufacturer must pay a dealer for suchts for purposes.
Sections 2-16 of this bill set forth new requirements for calculating the compensation that a manufacturer must pay a dealer for such purposes.
(1) fail to compensate a dealer fairly for labor,labor parts and otherparts expenses incurred by the dealer for warrantysections work9-15 orof athis recallbill. service or repair;
orSection 8 further provides that it shall be deemed that a dealer has been fairly compensated by ahera manufacturer for warranty work if the manufacturer compensates the dealer for:
(1) labor for warranty work at the - *SB303**SB303_R1* – 2 – laboramount ratethat multipliedis byequal to the applicabledealer’s timecost allowancesfor prescribed in the guideparts, usedpursuant byto thesection dealer12 forof laborthis furnishedbill, formultiplied repairsby otherthe thanprevailing warrantyretail work;parts markup.
and (2) parts relating to warranty work in an amount that is equal to the dealer’s cost for the parts, pursuant to section 12 of this bill, multiplied by the prevailing retail parts markup.
Specifically, section 9 requires the dealer to submit in writing to the manufacturer the prevailing retail labor rate and prevailing retail parts markup, which must be based on certain qualifying repair orders of the dealer.
Sectionaccuracy 10or ofreasonableness this bill authorizes a manufacturer to contest the material accuracy of the prevailing retail labor rate and prevailing retail parts markup of a dealer not later than 30 days after receiving the qualifying repair orders from the dealer.
If a manufacturer contests the material accuracy or reasonableness of any such rate or markup, section 10 requires the manufacturer to provide the dealer with the manufacturer’s calculation of the prevailing retail labor rate and prevailing retail parts markup of the dealer.dealer and any additional applicable information.
If a dealermanufacturer agreescontests withthe amaterial manufacturer’saccuracy contest of the materialprevailing accuracyretail labor rate or prevailing retail parts markup based on a dealer’s submission of inaccurate or nonqualifying repair orders, section 10on10 a authorizes the dealer to submit replacement qualifying repair orders and update the prevailing retail labor rate or prevailing retail parts markup calculation based on the replacement repair orders, as applicable.
Such a submission by a dealer will not be considered a newmodification submission for the purposes of section 9 and will be deemed submitted as of the date of the originalupdated submission.
Section 11 of this bill authorizes a dealer to file a protest with the Director of the Department of Motor Vehicles if the dealer does not agree with the manufacturer’s calculations of the prevailing retail labor rate and prevailing retail a hearing to decide the prevailing retail labor rate or prevailing retail parts markupdmarkup. of the dealer, as applicable.
SectionsIf 18-21the ofDirector thisreceives billsuch makea conformingprotest, changesthe Director is required to hold a hearing to decide the prevailing retail labor rate or prevailing retail parts markup apply existing provisions of law relating to conducting discovery and hearings heldheldo by the Director relating to certain other actions between a dealer and a manufacturer to the protests provided for in section 11.
Section 12 provides that if a manufacturer furnishes or causes to be furnished parts to a dealer at no cost or a reduced cost for purposes of performing warranty work or a recall service or repair, the manufacturer ismay required to compensate the dealer for thea dealer’sreasonable costshandling forfee theinstead parts,of if any, plus an amount that is equal to the valuedealer’s ofprevailing theretail parts.parts markup.
Section 12 further setsprovides forththat theif calculationa manufacturer furnishes parts to a dealer at a reduced cost for purposes of performing warranty work or a recall service or repair, the fairplus marketan wholesaleamount valuethat is equal to the dealer’s prevailing retail parts markup multiplied by the cost of the parts.parts in the current or previously established price schedule of the manufacturer, whichever is greater.
Section 13 of this bill prohibits a manufacturer from:from requiring, influencing or attempting to influence a dealer to implement or change the price for which the dealer sells parts or provides labor for any retail repair by taking certain action.
(1)Section establishing14 orof implementingthis bill prohibits a specialmanufacturer partfrom taking or componentthreatening numberto fortake partsadverse usedaction inagainst a dealer on the sole basis that the dealer has requested compensation for warranty work ifor doinga sorecall willservice resultor inrepair lowerat compensationthe dealer’s actions.ng retail labor rate and prevailing retail parts markup by taking certain Section 15 of this bill prohibits, with certain exceptions, a manufacturer from recovering or attempting to therecover dealer;any portion of its costs for compensating a dealer for warranty work or a recall service or repair.
or- (2)*SB303_R1* requiring,– influencing3 or– attemptingSection to16 influenceof this bill authorizes a dealer to implementfile ora changeprotest with the priceDirector forof whichthe Department if the manufacturer does not compensate a dealer sellsfor partswarranty work or providesa laborrecall forservice anyor repair that is based on the dealer’s prevailing retail repairlabor rate apply existing provisions of law relating to conducting discovery and holding hearings held by takingthe Director relating to certain action.other actions between a dealer and a manufacturer to the protests provided for in section 16.
Section 14 of this bill prohibits a manufacturer from taking or threatening to or a recall service or repair at the dealer’s prevailing retail labor rate and prevailing retail parts markup by taking certain actions.
Section 15 of this bill prohibits, with certain exceptions, a manufacturer from recovering or attempting to recover any portion of its costs for compensating a dealer for warranty work or a recall service or repair.
- *SB303* – 3 – Section 16 of this bill authorizes a dealer to file a protest with the Director of the Department if the manufacturer does not compensate a dealer for warranty work or a recall service or repair that is based on the dealer’s prevailing retail labor rate apply existing provisions of law relating to conducting discovery and holding hearings held by the Director relating to certain other actions between a dealer and a manufacturer to the protests provided for in section 16.
“Parts” means the original or replacement parts, accessories, components or systems of a vehicle,vehicle including,listed withoutin limitation, the engine,manufacturer’s transmission, an electric vehicle battery and other parts assemblies.catalog.
“Qualifying repair” means a repair to a vehicle like that which would have come within the manufacturer’s new motor vehicle warranty but for the vehicle having exceeded the time or mileage limit of the warranty.
The replacement of or work on tires, wheels or elements related to tires orand wheels, including, without limitation, vehicle alignment and tire or wheel rotation;
A repair for which a volume discount has been negotiated with a governmental agency,agency; insurer, extended warranty or service contract provider or other third-party payor;
A repair ofperformed anyin condition caused by a collision,body roadshop; hazard, the force of the elements, vandalism, theft or the negligence or deliberate act of the owner, an operator or a third-party;
- *SB303* – 4 – 8.
Any repair or replacement using a part sold at wholesale;
Any repair or replacement using after-market parts;
12.
or 13.- *SB303_R1* – 4 – 12.
The prevailing retail parts markup, the cost of each part and its sale price;
The prevailing retail labor rate that reflects the labor hours allocated to each job and the sale price of the labor.
“Warranty agreement” means a manufacturer’s new motor vehicle warranty, certified pre-owned warranty or anycertified otherpre-owned obligationwarranty. of a manufacturer to repair or replace a defect in a vehicle or part, including, without limitation, a repair pursuant to a technical service bulletin, customer service campaign or safety recall in accordance with federal law or regulation.
“Warranty work” means transportation, delivery, preparatory work and labor, including, without limitation, diagnostic labor, performed by ora arrangeddealer pursuant to be performed by a dealerwarranty inagreement, orderincluding, towithout fulfilllimitation, thereasonable obligationsand ofnecessary adiagnostic warrantytime orand safety recall thatservice is required, requested or approvedrepairs byin aaccordance manufacturerwith pursuantfederal tolaws aand warrantyregulations. agreement.
(a) Fail to compensate a dealer fairly for labor,labor parts and otherparts expenses incurred by the dealer for warranty work or any recall service or repair;repair performed by a dealer;
(a) Labor relatingfor to warranty work inat an amount that is equal to the dealer’s prevailing retail labor rate multipliedas byestablished thepursuant applicableto timesections allowances9 prescribedand in10 theof guidethis usedact. by the dealer for labor furnished for repairs other than warranty work.
- *SB303* – 5 – (b) Parts relatingused toin warranty work in an amount that is equal to the dealer’s cost for the parts pursuant to section 12 of this act, multiplied by the prevailing retail parts markup.markup as determined pursuant to sections 9 and 10 of this act.
Show all 100 changed lines (60 more)
Except as otherwise provided in this section and section 10 of this act, the prevailing retail labor rate and prevailing retail parts markup of a dealer must be established or modifiedmodified, byat the dealerrequest of the dealer, by submitting in writing to the manufacturer such rate and markup, as calculated by the dealer and:
- *SB303_R1* – 5 – 2.
A dealer is not required to submit the same qualifying repair orders pursuant to subsection 1 in order to establish both the prevailing retail labor rate and prevailing retail parts markup.
3.
4.3.
5.4.
6.5.
AnyExcept discountas thatprovided isin notsubsection allocated4 forof section 10 of this act, a qualifyingdealer repairshall onnot submit a qualifyingrequest repairto orderestablish betweenor partsmodify andthe prevailing retail labor mustrate, beprevailing allocatedretail onparts amarkup, proor rataboth, basis.pursuant to this section more than once in a 12-month period.
For purposes of this subsection, a promotional reward program or cash-equivalent pay method pursuant to a service contract or prepaid maintenance contract shall not be a discount.
- *SB303* – 6 – 7.
A dealer shall not modify the prevailing retail labor rate or prevailing retail parts markup pursuant to this section more than once per calendar year.
Not later than 30 days after receiving the qualifying repair orders from a dealer pursuant to section 9 of this act, the manufacturer may contest the materialdealer’s accuracysubmitted of the prevailing retail labor rate or prevailing retail parts markup as materially inaccurate or unreasonable as compared to the rates of other similarly situated new motor vehicle dealers of the same line and make of vehicles by providing the dealer with the manufacturer’s calculation of the prevailing retail labor raterate, or prevailing retail parts markup,markup or additional information, as applicable, based on the qualifying repair orders submitted to the manufacturer by the dealer, including, without limitation, a copy of all calculations made by the manufacturer and any other evidence substantiating the manufacturer’s calculation and contest.
If a manufacturer contests the material accuracy or reasonableness of the prevailing retail labor rate or prevailing retail parts markup pursuant to subsection 1, the manufacturer shall not thereafter add to, expand, supplement or otherwise modify any evidence of its contest of the dealer’s prevailing retail labor rate or prevailing retail parts markup against the dealer.
Evidence provided by a manufacturer in response to a dealer’s - *SB303_R1* – 6 – updated submission of new or revised information shall not be deemed an expansion, supplement or modification of evidence pursuant to this section.
If a dealer agrees with the material accuracy of the manufacturer’s calculation of the prevailing retail labor rate or prevailing retail parts markup, as applicable, it shall be deemed:deemed that the prevailing retail labor rate or prevailing retail parts markup are those of the dealer, effective on the 31st day after the date on which the dealer agrees to the manufacturer’s calculation.
(a) That the prevailing retail labor rate or prevailing retail parts markup are those of the dealer, effective on the 31st day after the date on which the dealer submitted the original prevailing retail labor rate or prevailing retail parts markup, as applicable, to the manufacturer;
and (b) For purposes of subsection 7 of section 9 of this act, that the dealer has not modified the prevailing retail labor rate or prevailing retail parts markup.
If a dealermanufacturer agreescontests with the manufacturer’s contest of the material accuracy of the prevailing retail labor rate or prevailing retail parts markup pursuant to subsection 1 based on a dealer’s submission of inaccurate or nonqualifying repair orders, the dealer may replacecorrect theany inaccurateinaccuracy orwith nonqualifyingan repairupdated orderssubmission withof accurate or qualifying repair orders and update the prevailing retail labor rate or prevailing retail parts markup calculation based on the replacement repair orders, as applicable.
Any updated submission made by a dealer pursuant to this subsection shall be deemed to have been submitted on the date of the original submission and shall not be considered as a modification submitted pursuant to subsection 75 of section 9 of this act.
The date an updated submission is made pursuant to this subsection shall replace the date of the dealer’s original submission for purposes of subsection 5 of section 9 of this act.
If a manufacturer does not contest the material accuracy or reasonableness of the prevailing retail labor rate or prevailing retail parts markup - *SB303* – 7 – pursuant to subsection 1 within 30 days, the prevailing retail labor rate or prevailing retail parts markup of the dealer becomes effective on the date that is 3161 days after the dealer submitted the prevailing retail labor rate or prevailing retail parts markup to the manufacturer.
In any hearing on a protest filed pursuant to this section, the manufacturer shall have the burden to show that the - *SB303_R1* – 7 – prevailing retail labor rate or prevailing retail parts markup of the dealer, as calculated by the manufacturer, is accurate or reasonable and that the dealer’s calculation is inaccurate.inaccurate or unreasonable.
(a) The prevailing retail labor rate or prevailing retail parts markup of the dealer shall become retroactively effective to the date that is 3060 days following the date on which the manufacturer received the prevailing retail labor rate or prevailing retail parts markup of the dealer pursuant to section 9 or 10 of this act, as applicable.
(b) The Director shall order the manufacturer to pay to the dealer:dealer the difference between the amount that the dealer has received from the manufacturer for warranty work and the amount that the dealer should have received from the manufacturer for warranty work if the manufacturer had compensated the dealer using the prevailing retail labor rate or prevailing retail parts markup of the dealer.
(1) An amount that is three times the difference between the amount that the dealer has received from the manufacturer for warranty work and the amount that the dealer should have received from the manufacturer for warranty work if the manufacturer had compensated the dealer using the prevailing retail labor rate or prevailing retail parts markup of the dealer.
(2) The dealer’s attorney’s fees and costs.
As used in this subparagraph, “costs” has the meaning ascribed to it in NRS 482.36366.
If a manufacturer furnishes or causes to be furnished parts to a dealer at no cost or a reduced cost for - *SB303* – 8 – purposes of performing warranty work or a recall service or repair, the manufacturer shallmay compensate the dealer for thea dealer’sreasonable costshandling forfee theinstead parts,of if any, plus an amount that is equal to the dealer’s prevailing retail parts markupmarkup. multiplied by the fair market wholesale value of the parts.
ForIf a manufacturer furnishes or causes to be furnished parts to a dealer at a reduced cost for purposes of subsectionperforming 1,warranty work or a recall service or repair, the fairmanufacturer marketshall wholesalecompensate valuethe ofdealer for the dealer’s costs for the parts plus an amount that is equal to the maximumdealer’s of:prevailing retail parts markup multiplied by the cost of the parts in the current or previously established price schedule of the manufacturer, whichever is greater.
(a) The amount that the dealer paid for the parts or any substantially identical parts that are already owned by the dealer;
(b) The cost of the parts, as shown in a current or previously established price schedule of the manufacturer or other party furnishing the parts;
or (c) The cost of substantially identical parts, as shown in a current or previously established price schedule of the manufacturer or other party furnishing the parts.
A manufacturer shall not:not require, influence or attempt to influence a dealer to implement or change the price for which the dealer sells parts or provides labor for any retail repair, including, without limitation, by:
EstablishSubstituting orany implementsample aof specialqualifying partrepair ororders componentfor numberthe forone partssubmitted usedby inthe warrantydealer workto ifthe doingmanufacturer sopursuant willto resultsection in9 loweror compensation10 toof thethis dealeract thanto isdetermine requiredthe pursuantprevailing toretail sectionslabor 9rate toor 15,prevailing inclusive,retail parts markup of thisthe act;dealer;
Require,Imposing influencean unduly burdensome or attempttime-consuming tomethod influenceon a dealer tofor implementpurposes orof changecompensating the pricedealer for whichwarranty thework, dealerincluding, sellswithout partslimitation, orrequiring providesthe labordealer forto anyprovide retailpart-to-part repair,or including,transaction-by-transaction withoutcalculations. limitation, by:
(a)- Substituting*SB303_R1* any– sample8 of– qualifyingSec. repair orders for the one submitted by the dealer to the manufacturer pursuant to section 9 or 10 of this act to determine the prevailing retail labor rate or prevailing retail parts markup of the dealer;
(b) Using qualifying repair orders, financial statements or other information from another dealer for purposes of calculating the prevailing retail labor rate or prevailing retail parts markup of the dealer;
or (c) Imposing an unduly burdensome or time-consuming method on a dealer for purposes of compensating the dealer for warranty work, including, without limitation, requiring the dealer to provide part-to-part or transaction-by-transaction calculations.
Sec.
A manufacturer shall not take or threaten to take adverse action against a dealer whoon requeststhe sole basis that the dealer has requested compensation for warranty work or a recall service or repair at the prevailing retail labor rate and prevailing retail parts markup of the dealer, including, without limitation, by:
CreatingEstablishing, implementing, enforcing or implementingapplying anany obstaclepolicy, orstandard, processrule, thatprogram conflictsor withincentive therelating provisionsto compensation of sectionsa 9dealer tofor 15,warranty inclusive,work in a way that is not fair or applicable to all of the manufacturer’s dealers in this act;State;
and 2.
Acting in bad faith;
- *SB303* – 9 – 3.
Hindering, delaying or rejecting the proper and timely payment of compensation pursuant to sections 9 to 15, inclusive, of this act;
4.
Establishing, implementing, enforcing or applying any policy, standard, rule, program or incentive relating to compensation of a dealer for warranty work in a way that is not uniform or fair among all of the manufacturer’s dealers in this State;
5.
Conducting or threatening to conduct any warranty, nonwarranty or other service-related audit;
or 6.
If the Director finds that the manufacturer did not compensate the dealer for warranty work based on the prevailing retail labor rate or prevailing retail parts markup of the dealer,dealer as established pursuant to sections 9 and 10 of this act, the Director shall order the manufacturer to pay to the dealer:dealer the difference between the amount that the dealer has received from the - *SB303_R1* – 9 – manufacturer for warranty work and the amount that the dealer should have received from the manufacturer for warranty work if the manufacturer had compensated the dealer using the prevailing retail labor rate or prevailing retail parts markup of the dealer.
(a) An amount that is three times the difference between the amount that the dealer has received from the manufacturer for - *SB303* – 10 – warranty work and the amount that the dealer should have received from the manufacturer for warranty work if the manufacturer had compensated the dealer using the prevailing retail labor rate or prevailing retail parts markup of the dealer.
(b) The dealer’s attorney’s fees and costs.
As used in this paragraph, “costs” has the meaning ascribed to it in NRS 482.36366.
- *SB303* – 11 – 4.
- *SB303_R1* – 10 – Sec.
A manufacturer or distributor shall not be deemed to be competing when operating a previously - *SB303* – 12 – existing dealership temporarily for a reasonable period, or in a bona fide retail operation which is for sale to any qualified person at a fair and reasonable price, or in a bona fide relationship in which a - *SB303_R1* – 11 – person has made a significant investment subject to loss in the dealership and can reasonably expect to acquire full ownership of the dealership on reasonable terms and conditions.
or (c) Accept an amended claim for labor and parts if the amended claim is submitted not later than 60 days after the date on which the manufacturer or distributor notifies the dealer that the claim has been disapproved and the disapproval was based on the dealer’s failure to comply with a specific requirement for processing the - *SB303* – 13 – claim, including, without limitation, a clerical error or other administrative technicality that does not relate to the legitimacy of the claim.
- *SB303_R1* – 12 – Failure to approve or disapprove or to pay within the specified time limits in an individual case does not constitute a violation of this section if the failure is because of reasons beyond the control of the manufacturer, distributor or factory branch.
H - *SB303**SB303_R1*
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View plain text versions (2)
- Reprint 1 View text Current pdf
- Introduced As Introduced pdf
Amendments
1 amendmentClick Show changes on an amendment above to see how it modifies the bill.
Action History
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(Pursuant to Joint Standing Rule No. 14.3.3, no further action allowed.)
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In Assembly. Read first time. Referred to Committee on Commerce and Labor. To committee.
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From printer. To engrossment. Engrossed. First reprint. Read third time. Passed, as amended. Title approved. (Yeas: 21, Nays: None.) To Assembly.
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From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 517.) To printer.
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From printer. To committee.
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Read first time. Referred to Committee on Growth and Infrastructure. To printer.
Sponsors
- Marilyn Dondero Loop · Primary
- Edgar Flores · Primary
- Skip Daly · Cosponsor
- Fabian Doñate · Cosponsor
- Roberta Lange · Cosponsor
- Dina Neal · Cosponsor
- James Ohrenschall · Cosponsor
- Julie Pazina · Cosponsor
- Pat Spearman · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →2 sponsors · 7 co-sponsors · 58 not signed on
Sponsors (2)
- Dondero Loop, Marilyn Democratic
- Flores, Edgar Democratic
Co-sponsors (7)
- Daly, Skip Democratic
- Doñate, Fabian Democratic
- Lange, Roberta Democratic
- Neal, Dina Democratic
- Ohrenschall, James Democratic
- Pazina, Julie Democratic
- Pat Spearman
Not signed on (58)
58 members have not signed on to this bill.
Show all 58 →"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.
Subjects
Frequently asked questions
- Who sponsors SB 303?
- SB 303 is sponsored by Dondero Loop, Marilyn (Democratic), Flores, Edgar (Democratic), Daly, Skip (Democratic), Doñate, Fabian (Democratic), Lange, Roberta (Democratic), Neal, Dina (Democratic), Ohrenschall, James (Democratic), Pazina, Julie (Democratic), and Pat Spearman.
- What is the current status of SB 303?
- This bill died with 2023 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 303?
- Track SB 303 free on One Click Politics — get push/email alerts when it moves.
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