HB190 Alabama 2017 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Ron Johnson
Republican
Session: Regular Session 2017
Title: Motor vehicle dealers, new franchise act, recall repairs, payments for used vehicles of same make, payment to hold under Stop-Sale Order if parts not available, Sec. 8-20-7.1 added
Summary: HB190 would require manufacturers to compensate dealers for recall repairs on used vehicles in inventory when parts are unavailable due to a Stop-Sale Order, and sets how that compensation is calculated.
What This Bill Does
The bill adds a new section that requires manufacturers to reimburse dealers for labor and parts needed to perform recall repairs. If parts or remedies are not reasonably available and a Stop-Sale or Do-Not-Drive order is active on a used vehicle held for sale within 15 days of recall notice, the manufacturer must pay at least 1.75% of the vehicle's value per month while the recall parts are unavailable. Vehicle value is based on an independent third-party guide's average trade-in value. The provision applies only to recalls under federal law and to used vehicles in the dealer's inventory for the line make the dealer is franchised to sell or authorized to repair.

Who It Affects
New motor vehicle dealers who hold used vehicles for sale (in the same line make they are franchised to sell or authorized to repair); they would receive compensation for recall-related work when parts are not available.
Manufacturers, distributors or wholesalers of new motor vehicles; they would be responsible for paying the compensation and must not reduce it as retaliation for reimbursement claims.

Key Provisions
Adds Section 8-20-7.1 to define recall compensation obligations related to used vehicles and Stop-Sale Orders.
Defines key terms: Manufacturer and Stop-Sale Order.
Requires manufacturers to compensate dealers for all labor and parts required for recall repairs, with compensation considered reasonable.
If parts or a remedy are not reasonably available to perform a recall on a used vehicle held for sale within 15 days of recall notice and a Stop-Sale/Do-Not-Drive order is issued, compensation must be at least 1.75% of the vehicle value per month while unavailable.
Vehicle value is the average trade-in value from an independent third-party guide based on year, make, model, and mileage.
Applies only to used vehicles subject to federal safety or emissions recalls with a Stop-Sale or Do-Not-Drive order, and only for vehicles of a line make the dealer is franchised to sell or authorized to repair.
Prohibits manufacturers from reducing compensation owed due to reimbursement claims or because the dealer was compensated under recall rules.
Claims under this section follow the same limitations and requirements as warranty reimbursement claims; or manufacturers may use a national recall compensation program if it provides equal or greater compensation.
Effective date: becomes law on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Motor Vehicles