(a) A franchisee seeking to establish or modify its retail labor rate, retail parts rate, or both, to determine a reasonable warranty reimbursement schedule shall, no more frequently than once per calendar year, complete the following requirements: (1) The franchisee shall submit in writing to the franchisor whichever of the following is fewer in number: (A) Any 100 consecutive qualified repair orders completed, including any nonqualified repair orders completed in the same period. (B) All repair orders completed in any 90-consecutive-day period. (2) The franchisee shall calculate its retail labor rate by determining the total charges for labor from the qualified repair orders submitted and dividing that amount by the total number of hours that generated those charges. (3) The franchisee shall calculate its retail parts rate by determining the total charges for parts from the qualified repair orders submitted, dividing that amount by the franchiseeâs total cost of the purchase of those parts, subtracting one, and multiplying by 100 to produce a percentage. (4) The franchisee shall provide notice to the franchisor of its retail labor rate and retail parts rate calculated in accordance with this subdivision. (b) For purposes of subdivision (a), qualified repair orders submitted under this subdivision shall be from a period occurring not more than 180 days before the submission. Repair orders submitted pursuant to this section may be transmitted electronically. A franchisee may submit either of the following: (1) A single set of qualified repair orders for purposes of calculating both its retail labor rate and its retail parts rate. (2) A set of qualified repair orders for purposes of calculating only its retail labor rate or only its retail parts rate. (c) Charges included in a repair order arising from any of the following shall be omitted in calculating the retail labor rate and retail parts rate under this section: (1) Manufacturer, manufacturer branch, distributor, or distributor branch special events, specials, or promotional discounts for retail customer repairs. (2) Parts sold, or repairs performed, at wholesale. (3) Routine maintenance, including, but not limited to, the replacement of bulbs, fluids, filters, batteries, and belts that are not provided in the course of, and related to, a repair. (4) Items that do not have individual part numbers including, but not limited to, nuts, bolts, and fasteners. (5) Vehicle reconditioning. (6) Accessories. (7) Repairs of conditions caused by a collision, a road hazard, the force of the elements, vandalism, theft, or owner, operational, or third-party negligence or deliberate act. (8) Parts sold or repairs performed for insurance carriers. (9) Vehicle emission inspections required by law. (10) Manufacturer-approved goodwill or policy repairs or replacements. (11) Repairs for government agencies or service contract providers. (12) Repairs with aftermarket parts, when calculating the retail parts rate, but not the retail labor rate. (13) Repairs on aftermarket parts. (14) Replacement of or work on tires, including front-end alignments and wheel or tire rotations. (15) Repairs of motor vehicles owned by the franchisee or an employee thereof at the time of the repair. (d) (1) A franchisor may contest to the franchisee the material accuracy of the retail labor rate or retail parts rate that was calculated by the franchisee under this section within 30 days after receiving notice from the franchisee or, if the franchisor requests supplemental repair orders pursuant to paragraph (4), within 30 days after receiving the supplemental repair orders. If the franchisor seeks to contest the retail labor rate, retail parts rate, or both, the franchisor shall submit no more than one notification to the franchisee. The notification shall be limited to an assertion that the rate is materially inaccurate or fraudulent, and shall provide a full explanation of any and all reasons for the allegation,
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