Current with changes from the 2024 Legislative Session
Section 15-212.1 - Compensation of dealer for incentive or reimbursement programs(a) Upon the filing of a claim, a manufacturer, factory branch, or distributor shall compensate a dealer for any incentive or reimbursement program sponsored by the manufacturer, factory branch, or distributor, under the terms of which the dealer is eligible for compensation.(b)(1) A claim filed under this section shall be:(i) In the manner and form prescribed by the manufacturer, factory branch, or distributor; and(ii) Approved or disapproved within 30 days of receipt.(2) A claim not approved or disapproved within 30 days of receipt shall be deemed approved.(3) Payment of a claim filed under this section shall be made within 30 days of approval.(c)(1) If a claim filed under this section is shown by the manufacturer, factory branch, or distributor to be false or unsubstantiated, the manufacturer, factory branch, or distributor may charge back the claim within 6 months from the payment of the incentive or reimbursement.(2) This paragraph does not limit the right of a manufacturer, factory branch, or distributor to: (i) Conduct an audit of any claim filed under this section; or(ii) Charge back for any claim that is proven to be fraudulent.(3) An audit under this paragraph shall be conducted according to generally accepted accounting principles.(d) A manufacturer, distributor, or factory branch may not refuse to pay, or claim reimbursement from, a dealer for sales, incentives, or payments related to a motor vehicle sold by the dealer because the purchaser of the motor vehicle exported or resold the motor vehicle in violation of the policy of the manufacturer, distributor, or factory branch unless the manufacturer, distributor, or factory branch can show that, at the time of sale, the dealer knew or should have known of the purchaser's intention to export or resell the motor vehicle.(e)(1) This subsection applies only to an incentive payment, a reimbursement payment, cash, a gift, or a thing of value earned by an employee of a dealer on or after May 1, 2009.(2)(i) An incentive payment, a reimbursement payment, cash, a gift, or a thing of value to be given by a manufacturer, distributor, or factory branch to an employee of a dealer may be given: 1. Directly to the employee; or2. To the dealer to be distributed to the employee.(ii) An incentive payment, a reimbursement payment, or cash given to a dealer for distribution to an employee under this paragraph shall be distributed to the employee as part of the payroll process after the appropriate payroll deductions have been made by the dealer.(3) A manufacturer, distributor, or factory branch shall make information available to a dealer about any incentive payment, reimbursement payment, cash, gift, or thing of value totaling more than $200 in a calendar year that is given directly to an employee of the dealer.