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 provide reasonable compensation for various services related to warranty work, including predelivery preparation, installation of required accessories, diagnostic work, and maintenance programs. The bill specifies that compensation for labor and parts must not be less than the average retail rates charged by dealers for similar non-warranty services. Additionally, it mandates that dealers submit claims for reimbursement within ninety days and establishes a timeline for manufacturers or distributors to approve or disapprove these claims.

Furthermore, the bill outlines the process for establishing average parts markup rates and labor rates, ensuring that dealers are compensated fairly for warranty work. It prohibits manufacturers or distributors from imposing policies that would result in lower compensation and protects dealers from adverse actions when seeking compensation. The bill also includes provisions for the compensation of parts provided at no cost or reduced cost to dealers, ensuring that they are reimbursed fairly based on the wholesale value of those parts. Overall, the amendments aim to create a more equitable compensation framework for motor vehicle dealers engaged in warranty work.

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
Enrollment: 51-07-29