AN ACT to amend the Indiana Code concerning motor vehicles.
SECTION 1. IC 9-13-2-45 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 45. "Distributor" means
a person, other than a manufacturer or wholesale dealer, who is
engaged in the business of selling motor vehicles to dealers located in
Indiana. The term includes a distributor's branch office or the
distributor's representative. The term does not include a recreational
vehicle manufacturer.
SECTION 2. IC 9-13-2-93.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 93.5. "Line make" means the name given by a
manufacturer to a line of motor vehicles to distinguish it as
produced or sold by the manufacturer and that may be used and
protected as a trademark.
SECTION 3. IC 9-13-2-97 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 97. (a) "Manufacturer"
means, except as provided in subsection (b), a person engaged in the
business of constructing or assembling vehicles, of a type required to
be registered under IC 9-18, at an established place of business in
Indiana. The term does not include a converter manufacturer or
recreational vehicle manufacturer.
(b) "Manufacturer", for purposes of IC 9-23, means a person who is
engaged in the business of manufacturing or assembling new motor
vehicles or major component parts of motor vehicles, or both, and sells
new motor vehicles to dealers, wholesale dealers, distributors, or the
general public. The term includes the following:
(1) A factory branch office of the manufacturer.
(2) An authorized representative of the manufacturer.
(3) A partnership, a firm, an association, a joint venture, a limited
liability company, a corporation, or a trust, resident or
nonresident, that is controlled by the manufacturer.
The term does not include a converter manufacturer or recreational
vehicle manufacturer.
SECTION 4. IC 9-13-2-191.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 191.5. "Uniform time standards
manual", for purposes of IC 9-23-3, has the meaning set forth in
IC 9-23-3-0.5.
SECTION 5. IC 9-23-3-0.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 0.5. As used in this chapter, "uniform time standards
manual", for purposes of IC 9-23-3-14(c), means a schedule
established by a manufacturer or distributor setting forth the time
allowances for the diagnosis and performance of warranty work
and service.
SECTION 6. IC 9-23-3-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 14. (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) It is an unfair practice for a manufacturer or distributor to fail to
compensate to a dealer the posted hourly labor rate for the work and
services the dealer is required to perform in connection with the
dealer's delivery and preparation obligations under any franchise or fail
to compensate to a dealer the posted hourly labor rate for labor and
other expenses incurred by the dealer under the manufacturer's
warranty agreements as long as the posted rate is reasonable. Judgment
of the reasonableness includes consideration of charges for similar
repairs by comparable repair facilities in the local area as well as
mechanic's wages and fringe benefits.
(c) A manufacturer or distributor and at least thirty percent
(30%) 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 a level higher than
provided for in the agreement.
(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 at least thirty percent
(30%) 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.