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Read. Follow. Verify.House Bill 2333 Modifies Franchisor Warranty and Reimbursement Duties to Franchisees
Last action · May 15, 2026: Referred: Emerging Issues(H)Sponsor: Dave Hinman
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What This Bill Would Do
House Bill 2333 updates warranty reimbursement rules for motor vehicle dealerships, requiring s to pay reasonable compensation for parts and labor based on retail rates and establishing strict timelines for claim approvals and audits.
Motor vehicle dealers face new rules governing how quickly manufacturers must approve warranty and promotion claims, how labor and parts rates are calculated, and a strict 12-month limit for manufacturers to audit and unsubstantiated claims.
- State franchise laws govern the commercial relationships, warranty obligations, and dispute resolution processes between vehicle manufacturers and independent dealerships. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
motor vehicle franchisees
Motor vehicle dealers gain standardized formulas for calculating parts and labor warranty reimbursement, strict payment and review timelines, and limits on manufacturer audit periods.
motor vehicle franchisors
Manufacturers and distributors must adhere to mandatory 30-day claim response windows, utilize specific retail-rate formulas for warranty parts and labor compensation, and abide by a 12-month audit window for charge-backs.
Key Facts
- Franchisors must fairly and reasonably compensate franchisees for preparation, delivery, and warranty service.
- Warranty labor compensation may be determined by multiplying the dealer's nonwarranty labor rate by the time provided in a generally accepted industry labor time guide.
- Warranty labor compensation must include all diagnostic time and time spent communicating with manufacturer technical assistants.
- Franchisors must include expected dates for parts and equipment availability in written recall notices sent to vehicle owners and franchisees.
Show all 10 facts
- Franchisors must approve or disapprove warranty claims within 30 days of receipt; unresponded claims are deemed approved.
- Approved warranty claims must be paid within 30 days, and payments for unresponded claims must be made within 15 days of the deemed approval.
- Franchisors may only audit warranty, sales, or incentive claims and charge-back unsubstantiated claims for 12 months following payment, or 2 years if there is good cause to believe claims were fraudulent.
- Franchisees may file a complaint with the administrative hearing commission within 60 days of receiving written notice of an adverse franchisor decision.
- Franchisees cannot be required to submit claims sooner than 30 days after completing service or becoming eligible to submit promotion claims.
- Franchisees are not required to maintain defective parts for more than 30 days after submitting a claim.
Frequently Asked Questions
How is compensation for warranty labor calculated under the bill?
How long does a franchisor have to audit a warranty claim and issue a charge-back?
What happens if a franchisor fails to approve or disapprove a claim within 30 days?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
4 actions- May 15, 2026HouseCommitteeReferred: Emerging Issues(H)
- Jan 8, 2026HouseFloorRead Second Time (H)
- Jan 7, 2026HouseIntroducedRead First Time (H)
- Dec 10, 2025HouseIntroducedPrefiled (H)
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
Sources
house.mo.gov
Analysis Score
0–100- Significance60How much this matters to a regular citizen
- Controversy40Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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