CHAPTER 83 SENATE BILL No. 586* An Act concerning reimbursement for warranty work on certain equipment. Be it enacted by the Legislature of the State of Kansas:

      Section  1. (a) As used in this section:

      (1) ``Contract'' has the meaning provided by K.S.A. 16-1302 or 16-
1402, and amendments thereto.

      (2) ``Dealer'' includes farm equipment dealers, as defined in K.S.A.
16-1202, and amendments thereto, or retailers, as defined in K.S.A. 16-
1302 or 16-1402, and amendments thereto.

      (3) ``Dealership agreement'' has the meaning provided by K.S.A. 16-
1202, and amendments thereto.

      (4) ``Equipment'' includes farm equipment, as defined in K.S.A. 16-
1202, and amendments thereto, outdoor power equipment, as defined in
K.S.A. 16-1302, and amendments thereto, or equipment, as defined in
K.S.A. 16-1402, and amendments thereto.

      (5) ``Manufacturer'' includes farm equipment manufacturers as de-
fined in K.S.A. 16-1202, and amendments thereto, or suppliers, as defined
in K.S.A. 16-1302 or 16-1402, and amendments thereto.

      (b) With respect to any equipment sold on or after July 1, 2000, any
warranty repair work performed for a consumer by a dealer under the
provisions of a manufacturer's express warranty, shall require the manu-
facturer to reimburse the dealer at an hourly labor rate which is the same
as the hourly labor rate the dealer currently charges consumers for non-
warranty repair work.

      (c) Nothing in this act shall apply to, or operate or be construed to
invalidate, impair or otherwise infringe upon the specific requirements
of any contract or dealership agreement between a dealer and a manu-
facturer entered into prior to the effective date of this act, if such contract
or dealership agreement is in effect on the effective date of this act.

      (d) The provisions of this section shall not apply to a manufacturer
who provides in a written dealer agreement for compensation to a dealer
for warranty labor costs either as (1) a discount in the pricing of the
equipment to the dealer or, (2) a lump sum payment to the dealer, pro-
vided such payment is not less than 5% of the suggested retail price of
the equipment.

 Sec.  2. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 11, 2000.
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