Committee advances bill setting process for dealer warranty labor rates and parts markups

Senate File 106, a bill to establish a process for motor-vehicle dealers and manufacturers to set warranty labor rates and parts markups, was presented and advanced by the Transportation, Highways & Military Affairs Committee.

Sponsor Senator Barlow said the bill “provides a mechanism for dealers, Wyoming new vehicle dealers and the manufacturers to establish labor rates and parts markup,” and stressed the measure focuses on creating a timeline-driven process where none currently exists. The measure removes a fixed 30 percent parts-markup cap from the statute and substitutes a process for dealers and manufacturers to follow if they cannot agree informally.

The bill’s proponents told the committee the changes are intended to align Wyoming with practices in other states and to let market rates in a dealer’s community guide warranty compensation. Marcia Allen, representing the Wyoming Automobile Dealers Association, testified in “strong support” and said Wyoming is currently “the only state without such provisions, placing our dealers at a considerable disadvantage.” Chuck Ruark, owner of Laramie Peak Motors in Wheatland, described recruitment pressure for technicians and said the bill would help dealers compete for skilled technicians with neighboring states.

Sponsor explanation and public testimony emphasized three main elements: (1) replacing a statutory parts-markup cap with a process for establishing markups and labor rates, (2) a timeline for dealers to submit nonwarranty market-rate evidence and for manufacturers to respond, and (3) steps for mediation and, if necessary, court review when parties cannot agree. Senator Barlow described the process as timeline-sensitive, typically resolving within roughly 100–120 days absent extended information requests.

Committee members asked about consumer impacts and application sequencing. Senator Barlow and witnesses said warranty work is paid by manufacturers and that the proposal establishes reimbursement rates rather than directly changing consumer prices for nonwarranty work. Representative McKinnon asked whether the process applies before or after repairs; the sponsor clarified the measure sets reimbursement schedules that apply to warranty repairs but does not alter when work is performed or who holds the vehicle during a dispute.

After public testimony from dealers, Representative Larson moved the bill, Representative Geringer seconded the motion, and the committee called the roll. The committee recorded nine affirmative votes and will send Senate File 106 to the full chamber for floor management by the bill’s sponsors.

The bill text lists items excluded from the rate process (for example: certain reconditioning items, accessories, emissions-related work, complete engines/transmissions and large components such as propulsion batteries for electric vehicles); definitions specific to the new statutory section appear near the end of the draft. Proponents said the exclusions reflect negotiated agreements between dealers and manufacturers and are limited to this statutory part rather than sweeping changes to franchise law.

Votes at a glance: The committee recorded nine affirmative votes to advance Senate File 106 to the floor.

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Senator Barlow (sponsor) first presented the bill and stood for questions; Marcia Allen (Wyoming Automobile Dealers Association) and dealers Chuck Ruark (Laramie Peak Motors) and Dallas Terrell provided public testimony supporting the bill.

The committee discussion focused on process, timeline, and who bears warranty costs; no amendments were adopted in committee and the bill will be floor-managed by its sponsors.