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 reduce compensation or influence pricing for parts and labor. The legislation also includes provisions for dealers to contest any proposed adjustments to their rates and outlines the legal recourse available if manufacturers or distributors fail to comply with the established compensation requirements. Overall, the bill aims to protect dealers' interests and ensure they receive fair compensation for warranty-related services.

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