Bill > HB1515

This bill amends North Dakota's law regarding compensation for motor vehicle warranty work, significantly expanding and clarifying the requirements for how manufacturers and distributors must compensate dealerships for warranty-related services. The bill requires reasonable compensation for a wide range of services including predelivery preparation, accessory installation, diagnostic work, maintenance programs, extended warranties, certified preowned warranties, service contracts, parts exchange programs, and recall or warranty work. It establishes detailed rules for calculating labor rates and parts markup, mandating that compensation must be based on the dealer's average retail rates, with specific guidelines for determining these rates. The bill also sets strict timelines for claim submission and approval, requiring manufacturers to pay claims within 30 days and provide detailed explanations for any claim disapprovals. Additionally, it prohibits manufacturers from implementing policies that would unfairly reduce compensation, restrict dealers' pricing, or take adverse actions against dealers seeking proper compensation. The legislation provides dealers with legal recourse if manufacturers fail to comply, including the potential to recover expenses and treble damages in cases of willful violations. The bill aims to ensure fair and transparent compensation practices for automotive dealerships performing warranty-related services.