Committee advances change to dealer compensation rules for warranty and repair work

The Senate Transportation Committee reported Senate Bill 94 favorably after manufacturers and dealers described a negotiated committee substitute that, they said, updates how dealers are paid for warranty and qualifying repair work.

Senator Mike Wilson, sponsor of SB 94, said the bill amends Kentucky’s Motor Vehicle Franchise Law to revise compensation for dealers on warranty and qualifying repair work and to provide consistent, objective standards across brands. Jason Wilson, president of the Kentucky Auto Dealers Association, told the committee the measure establishes formulas and clearer procedures — including a process for resolving labor-time disputes — to ensure dealers and technicians are fairly and timely reimbursed.

Ethan Witt of Cornerstone Government Affairs, speaking for the Alliance for Automotive Innovation, said the alliance "does not have a position on the committee sub" and did not oppose the committee adopting the sub and reporting the bill as amended. Witnesses characterized the changes as intended to keep Kentucky competitive with neighboring states for technicians and to reduce subjective language in dispute-resolution processes.

A member moved passage and another seconded. The secretary called the roll and members recorded aye votes. The chair announced the bill was reported favorably and stated, "It passes 8 or I should say 7 0, because we only have 7 people here," with the committee substitute attached. The bill will go to the full Senate for further consideration.

Supporters said the provision aims to ensure that technicians performing increasingly complex, software-driven work are compensated fairly and that dealers have consistent protections and reimbursement procedures.