NEB LEG enacted bill LB 667 on motor vehicle warranty repairs and replacements.
Amends NEB LEG 60-1438 on manufacturer or distributor, warranty obligation.
Bill Provisions
Clarifies calculation of warranty reimbursement by manufacturer to franchised dealer.
Bill also provides that the dealer may appeal the franchisor's schedule of compensation for the labor necessary to accomplish a required warranty repair or replacement.
Schedule shall include compensation for diagnostic work, repair service, parts, labor.
Any such request by the franchisee shall include information and documentation reasonably necessary for the franchisor to assess the merits of the franchisee's request
A manufacturer may request additional repair orders from dealer to determine if parts and labor rates are materially different from those dealer declared with manufacturer.
Manufacturer may adjust subsequent rates paid to dealer if determined that dealer's rates charged to customers for non-warranty work are less than for warranty work.
Prohibits franchisors from unreasonably denying franchisee’s request for modification of a time allowance for specific warranty repair, additional time for diagnostic or repair.
Legislative History
On Jan. 22, 2025, bill introduced in Legislature; on May 14, 2025, passed Legislature.
On May 14, 2025, bill presented to governor; on May 15, 2025, governor approved bill
Effectiveness
Bills without emergency clauses/specified effective dates become law 3 calendar months after legislative session ends; expected to adjourn Jun. 9, 2025, so on Sep. 9.
Regulators
NEB LEG
Entity Types
Corp; Thrift
Reference
PR, Bill LB667, 5/15/2025; Citation: NEB LEG 60-1438;
