3.__Service facility ownership by franchisor prohibited.__It is unlawful for a franchisor, manufacturer, factory branch, distributor branch or subsidiary to own, operate or control, either directly or indirectly, a motor vehicle warranty or service facility located in the State except on an emergency or interim basis or when no qualified applicant has applied for appointment as a motor vehicle dealer in a market previously served by a new motor vehicle dealer of that manufacturer, factory branch, distributor branch or subsidiary's line make.

4.__Express written contracts permitted.__An express written contract is permitted between a franchisor and a majority of its franchisees for performing warranty repairs.

A.__Notwithstanding subsection 1, any motor vehicle franchisor and at least a majority of its state franchisees of the same line make may agree in an express written contract citing this subsection upon a uniform warranty reimbursement policy used by contracting franchisees to perform warranty repairs.__The policy must involve reimbursement for parts used in warranty repairs or the use of a Uniform Time Standards Manual or both.__ Reimbursement for parts under the agreement is used instead of the franchisees' retail rate customarily charged by that franchisee as defined under subsection 1 to calculate compensation due from the franchisor for parts used in warranty repairs.__This paragraph does not authorize a franchisor and its state franchisees to establish a uniform hourly labor reimbursement.

Each franchisor may only have one agreement for each line make of a franchisee.__The agreement must:

(1)__Establish a uniform parts reimbursement rate.__ The uniform parts reimbursement rate must be greater than the franchisor's nationally established parts reimbursement rate in effect at the time the first agreement becomes effective.__A subsequent agreement must result in a uniform reimbursement rate that is greater or equal to the rate set forth in the immediately prior agreement;

(2)__Apply to all warranty repair orders written during the period that the agreement is effective;