| (a) A service-only facility is a location occupied
and operated by a franchised dealer that is a completely separate,
noncontiguous site, from the franchised dealer's new motor vehicle
sales and service or sales only location, where the franchised dealer
will only perform warranty and nonwarranty repair services. Except
as allowed in subsection (d) of this section, warranty repair services
may only be performed at either a licensed dealership or a licensed
service-only facility.
(b) A franchised dealer must obtain a license to operate
a service-only facility. A dealer may not obtain a service-only facility
license to service a particular line of new motor vehicles, unless
that dealer is franchised and licensed to sell that line.
(c) A service-only facility is a dealership subject
to protest under Occupations Code, Chapter 2301.
(d) Upon the manufacturer's or distributor's prior
written approval, which cannot be unreasonably withheld, only a franchised
dealer of the manufacturer or distributor may contract with another
person as a subcontractor to perform warranty repair services that
the dealer is authorized to perform under a franchise agreement with
a manufacturer or distributor. Payment shall be made by the franchised
dealer to the subcontractor and not by the manufacturer or distributor
to the subcontractor.
(e) A person with whom a franchised dealer contracts
to perform warranty repair services is not eligible to obtain a service-only
facility license and may not advertise the performance of warranty
repair services in any manner to the public.
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