A bill for an act relating to franchisee compensation and time allowances for motor vehicle warranty services, and including applicability provisions.

Summary

The bill changes Iowa law so that vehicle manufacturers or distributors must compensate dealers for warranty work at rates no lower than the dealers’ own retail rates for comparable parts and labor, as long as those rates are reasonable. It also removes the franchiser’s duty to supply a schedule of time allowances, instead requiring dealers to complete warranty jobs in a reasonable amount of time. The changes apply to franchise agreements entered into or renewed after July 1, 2026.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

Topics

Share