SOURCE: Page 1, line 1; (02)AM041203.1. -->
Page 1, delete lines 1 through 17.
Page 2, delete lines 1 through 30.
Page 2, line 31, delete "IC 9-13-2-181.5" and insert "IC
9-13-2-93.5".
Page 2, line 33, delete "181.5. "Trade name"" and insert "
93.5.
"Line make"".
Page 2, line 39, delete "standard" and insert "
standards".
Page 2, delete line 42.
Page 3, delete lines 1 through 28.
Page 3, line 31, delete "standard" and insert "
standards".
Page 3, line 32, delete "IC 9-23-3-25(b)," and insert "
IC
9-23-3-14(c),".
Page 3, line 33, after "manufacturer" insert "
or distributor".
Page 3, delete lines 35 through 42.
Page 4, delete lines 1 through 6.
Page 4, line 8, after "14." insert "
(a) This section does not
authorize a manufacturer or distributor and its franchisees in
Indiana to establish a uniform hourly labor reimbursement rate
effective for the entire state.
(b)".
Page 4, line 9, delete "reasonably".
Page 4, line 10, after "for" reset in roman "the".
Page 4, line 10, delete "diagnostic".
Page 4, line 11, delete "repair".
Page 4, line 16, reset in roman "Judgment of the reasonableness
includes consideration of".
Page 4, reset in roman line 17.
Page 4, line 18, reset in roman "area as well as mechanic's wages
and fringe benefits.".
Page 4, line 18, delete "The".
Page 4, delete lines 19 through 21.
Page 4, between lines 21 and 22, begin a new paragraph and insert:
"
(c) A manufacturer or distributor and a majority of its
franchisees in Indiana of the same line make may agree in an
express written contract citing this section to a uniform warranty
reimbursement policy to be used by franchisees for the
performance of warranty repairs. The contract must include the
reimbursement for parts used in warranty repairs or the use of a
uniform time standards manual, or both. The allowance for
diagnosis within the uniform time standards manual must be
reasonable and adequate for the work and service to be
performed. The manufacturer or distributor shall have:
(1) only one (1) agreement with each line make; and
(2) a reasonable and fair procedure for franchisees to request
a modification or adjustment of a standard included in the
uniform time standards manual.
(d) A contract described in subsection (c) must meet the
following criteria:
(1) Establish a uniform parts reimbursement rate that must
be greater than the manufacturer's or distributor's nationally
established parts reimbursement rate in effect at the time the
contract becomes effective. A subsequent contract must
include a uniform reimbursement rate that is equal to or
greater than the rate in the immediately prior contract.
(2) Apply to all warranty repair orders written while the
agreement is in effect.
(3) At any time during the period the contract is in effect:
(A) be available to any franchisee of the same line make as
the franchisees who entered into the contract with the
manufacturer or distributor; and
(B) be available to the franchisee of the same line make on
the same terms as apply to the franchisees who entered
into the contract with the manufacturer or distributor.
(4) Be for a term not to exceed three (3) years.
(5) Allow any party to the uniform warranty reimbursement
policy to terminate the policy with thirty (30) days prior
written notice to all parties upon the annual anniversary of
the policy, if the policy is for at least one (1) year.
(6) Remain in effect for the entire life of the original period if
the manufacturer and at least one (1) franchisee remain
parties to the policy.
(e) A manufacturer or distributor that enters into a contract
with its franchisees under subsection (c) may only seek to recover
its costs from a franchisee that receives a higher reimbursement
rate, if authorized by law, subject to the following:
(1) Costs may be recovered only by increasing invoice prices
on new vehicles received by the franchisee.
(2) A manufacturer or distributor may make an exception for
vehicles that are titled in the name of a purchaser in another
state. However, price increases imposed for the purpose of
recovering costs imposed by this section may vary from time
to time and from model to model and must apply uniformly to
all franchisees of the same line make that have requested
reimbursement for warranty repairs at the prevailing retail
price charged by the dealer.
(f) A manufacturer or distributor that enters into a contract
with its franchisees under subsection (c) shall do the following:
(1) Certify to the bureau under oath, in a writing signed by a
representative of the manufacturer or distributor, that at the
time the contract was entered into a majority of the
franchisees of the line make were parties to the contract.
(2) File a copy of the contract with the bureau at the time of
the certification.
(3) Maintain a file that contains the information upon which
the certification required under subdivision (1) is based for
three (3) years after the certification is made.".
Page 4, delete lines 22 through 42.
Delete pages 5 through 8.
Renumber all SECTIONS consecutively.
(Reference is to SB 412 as introduced.)
and when so amended that said bill do pass .
Committee Vote: Yeas 8, Nays 0.
____________________________________
Senator Server, Chairperson
AM 041203/DI 75 2002