HB 1515 — Relating to motor vehicle warranty work compensation.

25.0936.03000 Sixty-ninth Legislative Assembly of North Dakota FIRSTIn ENGROSSMENTRegular ENGROSSEDSession Commencing Tuesday, January 7, 2025 HOUSE BILL NO.

1515 Introduced(Representatives by Representatives D.

Ruby, Bosch, Ista, Lefor, Weisz, VigesaaVigesaa) Senators(Senators Hogan, Hogue, KleinKlein) AAN BILLACT for an Act to amend and reenact section 51-07-29 of the North Dakota Century Code, relating to motor vehicle warranty work compensation.

Page(7) No.Service contracts.

1 25.0936.03000 Sixty-ninth Legislative Assembly (7) Service contracts.

A dealer shall useH. time allowances for the diagnosis and performance of work and service which are reasonable and adequate for a qualified technician to perform the work or services.

B.

NO.

1515 - PAGE 2 use time allowances for the diagnosis and performance of work and service which are reasonable and adequate for a qualified technician to perform the work or services.

If a manufacturer Pageor No.distributor disapproves a claim in writing within thirty days, the manufacturer or distributor shall contemporaneously provide the dealer with a detailed written explanation of the reason the claim was disapproved.

2 25.0936.03000 Sixty-ninth Legislative Assembly or distributor disapproves a claim in writing within thirty days, the manufacturer or distributor shall contemporaneously provide the dealer with a detailed written explanation of the reason the claim was disapproved.

Pagec. No.

3 25.0936.03000 Sixty-ninth Legislative Assembly c.

Tires f.H.

B.

NO.

1515 - PAGE 3 f.

and m.

The average of the parts markup rates and labor rate calculated under subsections 4 andthrough 6 is presumed to be fair and reasonable and must go into effect thirty days following the manufacturer's approvalreceipt of the submission subject to the manufacturer or distributor's ability to contest the rate as provided in this subsection.

If the average parts markup rate or average labor rate is rebutted, or both, the manufacturer or distributor shall propose an adjustment of the average Pagepercentage No.markup based on that rebuttal not later than thirty days after submission.contest the material accuracy of the rate calculated under this section by providing a written objection to the dealer within thirty days after receiving the dealer's submission, and shall:

4 25.0936.03000 Sixty-ninth Legislative Assembly percentage markup based on that rebuttal not later than thirty days after submission.contest the material accuracy of the rate calculated under this section by providing a written objection to the dealer within thirty days after receiving the dealer's submission, and shall:

If a dealer agrees with the conclusions of the motor vehicle manufacturer or distributor and any corresponding adjustment to the labor rate or parts markup contained within the writtenH. objection, no further action is required.

B.

NO.

1515 - PAGE 4 written objection, no further action is required.

Page(1) No.The motor vehicle manufacturer or distributor has the burden of proof by a preponderance of the evidence, and must show:

5 25.0936.03000 Sixty-ninth Legislative Assembly (1) The motor vehicle manufacturer or distributor has the burden of proof by a preponderance of the evidence, and must show:

Each manufacturer, in establishing a schedule of compensation for warranty work, shall rely on the vehicle dealer's written schedule of hourly labor rates and parts and may not obligate any vehicle dealer to engage in unduly burdensome or time-consuming documentation of rates or parts, including obligating vehicle dealers to engage in transaction-by-transaction or part-by-part calculationsIn establishing a rate under this section, the dealer's labor rate or parts markup must be calculated using the method proscribedprescribed in subsections 4 though 6.

If a motor vehicle manufacturer or distributor furnishes, or causes to be furnished, a part to a dealer at no cost or at a reduced cost for use in performing the Pageservices No.identified in subdivision a of subsection 1, the motor vehicle manufacturer or distributor shall compensate the dealer in the same manner as parts compensation under this section by paying the dealer for the dealer's cost of the part, if any, plus an amount equal to the dealer's parts markup, multiplied by the wholesale value of the part.

6 25.0936.03000 Sixty-ninth Legislative Assembly services identified in subdivision a of subsection 1, the motor vehicle manufacturer or distributor shall compensate the dealer in the same manner as parts compensation under this section by paying the dealer for the dealer's cost of the part, if any, plus an amount equal to the dealer's parts markup, multiplied by the wholesale value of the part.

and (3)H. The cost of a substantially identical part shown in a current, or prior, motor vehicle manufacturer's, distributor's, or furnishing party's established price schedule.

B.

NO.

1515 - PAGE 5 (3) The cost of a substantially identical part shown in a current, or prior, motor vehicle manufacturer's, distributor's, or furnishing party's established price schedule.

or (3) Hindering, delaying, or rejecting the proper and timely payment of compensation due to a dealer under this section, provided nothing in this Pageparagraph No.may restrict or impair audits or chargebacks conducted in accordance with section 51-07-02.4.

7 25.0936.03000 Sixty-ninth Legislative Assembly paragraph may restrict or impair audits or chargebacks conducted in accordance with section 51-07-02.4.

This section applies to all manufacturers and distributors as defined by section 51-07-00.1, and any other person that supplies a component or part installed on a new motor vehicle for which the warranty of the component or part is warrantedwarrantied by another person that is not the manufacturer.

PageH. No.

8B. 25.0936.03000

NO.