ENTITLED An Act to revise provisions regarding the compensation of merchandise dealers for diagnostic and warranty work.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 37-5-12.4 be AMENDED:

37-5-12.4. Merchandise manufacturer or supplier compensation of dealer for diagnostic and warranty work.

Any manufacturer or supplier of merchandise as defined in subdivision 37-5-12.2(5), (8), or (9) that authorizes a dealer of such merchandise to perform the warranty work is obligated to provide that dealer reasonable compensation for diagnostic work, as well as repair service, parts, and labor to the dealer. Time allowances for diagnostic and performance of warranty work and service shall be adequate for the work to be performed. The hourly labor rate paid to the dealer for warranty services may not be less than the rate charged by the dealer for like service to nonwarranty customers for nonwarranty service. Reimbursement for parts used in the performance of warranty repair may not be less than the current retail rate customarily charged by the dealer for the part or parts.

An Act to revise provisions regarding the compensation of merchandise dealers for diagnostic and warranty work.

I certify that the attached Act originated in the: House as Bill No. 1091 Chief Clerk Speaker of the House Attest: Chief Clerk President of the Senate Attest: Secretary of the Senate House Bill No. 1091 File No. ____ Chapter No. ______

Received at this Executive Office this _____ day of _____________, 2020 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2020 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________, 2020 at _________ o'clock __M. Secretary of State By Asst. Secretary of State