The proposed amendments to section 51-07-29 of the North Dakota Century Code focus on enhancing the compensation structure for motor vehicle warranty work. The bill mandates that motor vehicle manufacturers or distributors must provide reasonable compensation to dealers for various services related to warranty work, including diagnostic work, maintenance programs, and parts exchange programs. It specifies that the compensation for labor and parts must not be less than the average retail rates charged by the dealer for similar services. Additionally, the bill introduces a requirement for dealers to submit claims for reimbursement within ninety days of service completion, with manufacturers or distributors obligated to approve or disapprove claims within thirty days.

Furthermore, the amendments clarify the process for establishing labor rates and parts markups, ensuring that dealers are compensated fairly and transparently. The bill prohibits manufacturers or distributors from imposing policies that would result in lower compensation for dealers and outlines the consequences for non-compliance, including the potential for legal action by dealers. New provisions also address the compensation for parts provided at no cost or reduced cost to dealers, ensuring that they are reimbursed appropriately. Overall, the bill aims to create a more equitable framework for warranty work compensation in the motor vehicle industry in North Dakota.

Statutes affected:
INTRODUCED: 51-07-29
Adopted by the House Transportation Committee: 51-07-29
FIRST ENGROSSMENT: 51-07-29
Prepared by the Legislative Council staff for Senator Klein: 51-07-29