Read the full stored bill text
House
File
2197
-
Introduced
HOUSE
FILE
2197
BY
COOLING
A
BILL
FOR
An
Act
relating
to
franchisee
compensation
and
time
allowances
1
for
motor
vehicle
warranty
services,
and
including
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5822YH
(4)
91
th/ns
H.F.
2197
Section
1.
Section
322A.5,
subsection
2,
paragraph
b,
Code
1
2026,
is
amended
by
striking
the
paragraph
and
inserting
in
2
lieu
thereof
the
following:
3
b.
A
franchiser
shall
pay
the
franchisee
for
warranty
4
services,
including
for
parts,
labor,
and
diagnostics,
an
5
amount
not
less
than
the
rates
and
labor
times
charged
by
the
6
franchisee
for
like
parts
and
services
to
retail
customers,
7
provided
the
rates
and
labor
times
are
reasonable.
A
8
franchisee
shall
provide
to
the
franchiser
an
itemized
list
of
9
rates
and
labor
times
for
warranty
services
performed
by
the
10
franchisee.
11
Sec.
2.
Section
322A.5,
subsection
2,
paragraph
c,
Code
12
2026,
is
amended
to
read
as
follows:
13
c.
The
franchiser
shall
provide
to
the
franchisee
a
list
of
14
time
allowances
for
the
performance
of
warranty
services.
Time
15
allowances
for
the
performance
of
A
franchisee
shall
perform
16
warranty
services,
including
diagnostic
services,
shall
be
in
a
17
reasonable
and
adequate
for
the
services
to
be
performed
amount
18
of
time
.
19
Sec.
3.
APPLICABILITY.
This
Act
applies
to
franchises
under
20
chapter
322A
entered
into
or
renewed
on
or
after
the
effective
21
date
of
this
Act.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
Under
current
law,
both
a
franchiser
(a
manufacturer
or
26
distributor
of
motor
vehicles)
and
franchisee
(a
person
who
27
receives
motor
vehicles
from
the
franchiser
under
a
contract
28
and
who
offers
and
sells
such
motor
vehicles
to
the
general
29
public)
are
required
to
fulfill
the
terms
of
any
express
or
30
implied
warranty
concerning
the
sale
of
a
motor
vehicle
to
31
the
public.
A
franchiser
must
compensate
a
franchisee
for
32
the
warranty
services
the
franchiser
requires
the
franchisee
33
to
provide.
The
franchiser
is
required
to
provide
to
the
34
franchisee
a
schedule
of
compensation
that
specifies
reasonable
35
-1-
LSB
5822YH
(4)
91
th/ns
1/
2
H.F.
2197
compensation
the
franchiser
will
pay
to
the
franchisee
for
such
1
warranty
services,
including
for
parts,
labor,
and
diagnostics.
2
The
schedule
of
compensation
must
provide
for
the
franchisee’s
3
average
percentage
markup
on
parts,
as
calculated
by
the
4
franchisee,
and
the
franchisee’s
retail
labor
rate,
both
of
5
which
must
be
approved
by
the
franchiser.
The
franchiser
must
6
pay
a
franchisee
for
warranty
parts
and
labor
at
least
the
7
franchisee’s
retail
rates
for
like
parts
and
services,
if
those
8
retail
rates
are
reasonable.
The
franchiser
is
required
to
9
provide
a
list
of
reasonable
and
adequate
time
allowances
for
10
the
performance
of
warranty
services.
11
This
bill
strikes
the
requirement
for
a
franchiser
to
12
provide
a
schedule
of
compensation,
and
the
related
schedule
13
provisions,
and
instead
requires
a
franchiser
to
pay
a
14
franchisee
for
warranty
services,
including
for
parts,
labor,
15
and
diagnostics,
an
amount
not
less
than
the
rates
and
labor
16
times
charged
by
the
franchisee
for
like
parts
and
services
17
to
retail
customers,
provided
the
rates
and
labor
times
18
are
reasonable.
A
franchisee
is
required
to
provide
to
the
19
franchiser
an
itemized
list
of
rates
and
labor
times
for
20
warranty
services
performed
by
the
franchisee.
The
bill
also
21
strikes
the
requirement
for
a
franchiser
to
provide
a
list
of
22
time
allowances
for
the
performance
of
warranty
services,
and
23
instead
requires
a
franchisee
to
perform
warranty
services
in
a
24
reasonable
amount
of
time.
25
The
bill
applies
to
franchises
under
Code
chapter
322A
26
entered
into
or
renewed
on
or
after
July
1,
2026.
27
-2-
LSB
5822YH
(4)
91
th/ns
2/
2