Vehicle Laws - Manufacturers and Dealers - Alterations
Summary
SB45 revises Maryland’s vehicle manufacturer-dealer franchise laws, primarily by expanding and clarifying how dealers are compensated for warranty, recall, and related service work. The bill requires manufacturers and other licensees to provide written compensation schedules for labor, parts, diagnostic labor, and certain administrative tasks, and it sets minimum reimbursement standards tied to a dealer’s retail labor rate and parts markup for comparable nonwarranty repairs. It also changes the process for dealers to submit their rates, presumes the submission is accurate unless timely rebutted, and limits the grounds on which manufacturers may challenge or reduce reimbursement claims.
The bill also adds new restrictions on manufacturer conduct. It prohibits manufacturers from selling vehicle parts directly to retail customers, from requiring or coercing dealers to work with certain third parties for repairs to manufacturer-installed parts, and from using pricing structures that charge different rates for a part based on how it is used. In addition, it allows dealers whose franchise has ended to finish certain warranty and recall repairs already underway or tied to vehicles they sold while the franchise existed, with compensation governed by the prior franchise terms and the statute.
Impact
SB45 would amend Title 15 of the Transportation Article governing manufacturers, distributors, factory branches, and franchised dealers. It expands statutory definitions and compensation rules for warranty and recall reimbursement, adds procedural deadlines and evidentiary standards for rate submissions and rebuttals, and creates new prohibitions on manufacturer practices affecting parts sales, repair pricing, and third-party repair requirements. It also authorizes the Motor Vehicle Administration to impose fines up to $50,000 per violation and to order compensation for financial injury or other damages, strengthening enforcement against licensees that violate the subtitle.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of floor or committee debate. Based on the bill text alone, the measure appears strongly pro-dealer and consumer-protection oriented, with a clear emphasis on ensuring full reimbursement for warranty and recall work and limiting manufacturer leverage over dealers. The absence of recorded opposition or amendments in the provided materials makes the overall sentiment difficult to gauge beyond the bill’s protective posture toward dealers.
Contention
The main likely points of contention are the bill’s expansion of manufacturer reimbursement obligations and its limits on manufacturer control over dealer service operations. Manufacturers may object to the requirement to pay retail-like labor rates and parts markups, the inclusion of miscellaneous fees and administrative time, the presumption favoring dealer-submitted compensation schedules, and the restrictions on audits, pricing structures, and direct parts sales. Dealers and their advocates would likely support these provisions as necessary to ensure fair compensation and prevent coercive practices. Another possible area of dispute is the provision allowing dealers to continue warranty and recall repairs after a franchise ends, which could raise questions about post-termination obligations and contractual rights.