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Indiana passes warranty parts bill

November 24, 2010
Indiana's franchised, new-vehicle dealers will gain standard reimbursement rates for warranty parts, protections that are afforded to dealers in neighboring states including Illinois, when new state legislation takes effect July 1. Gov. Frank O'Bannon on March 20 signed into law Senate Bill 412, better known as the Warranty Parts Bill. The bill passed both houses of the legislature in unanimous votes. "Vehicle manufacturers and franchised dealers supported this proposal because it represents a mutually beneficial solution for both," said Mike Leep, a dealer in South Bend, Ind. Similar legislation in Illinois took effect Dec. 12, 2001. The new Indiana law puts the state on even footing with neighbor states Illinois, Michigan, Ohio and Kentucky.