The bill amends section 51-07-29 of the North Dakota Century Code to enhance the compensation structure for motor vehicle warranty work. It introduces new provisions requiring manufacturers or distributors to compensate dealers for various services related to warranty work, including predelivery preparation, installation of required accessories, diagnostic work, maintenance programs, and more. The bill specifies that reasonable compensation for labor and parts must not be less than the average retail rates charged by the dealer for non-warranty services. Additionally, it establishes a clear timeline for dealers to submit claims for reimbursement and mandates that manufacturers or distributors must approve or disapprove these claims within thirty days.

Furthermore, the bill outlines the process for establishing average parts markup rates and labor rates, ensuring that dealers are compensated fairly. It prohibits manufacturers or distributors from imposing lower compensation rates or requiring dealers to change their pricing practices. The legislation also includes provisions to protect dealers from adverse actions by manufacturers or distributors when seeking compensation. Overall, the bill aims to create a more equitable and transparent compensation framework for motor vehicle warranty work in North Dakota.

Statutes affected:
INTRODUCED: 51-07-29
Adopted by the House Transportation Committee: 51-07-29
FIRST ENGROSSMENT: 51-07-29