North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1515 Compare Versions

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1		-	Sixty-ninth Legislative Assembly of North Dakota
2		-	In Regular Session Commencing Tuesday, January 7, 2025
3		-	HOUSE BILL NO. 1515
4		-	(Representatives D. Ruby, Bosch, Ista, Lefor, Weisz, Vigesaa)
5		-	(Senators Hogan, Hogue, Klein)
6		-	AN ACT to amend and reenact section 51-07-29 of the North Dakota Century Code, relating to motor
7		-	vehicle warranty work compensation.
	1	+	25.0936.04000
	2	+	Sixty-ninth
	3	+	Legislative Assembly
	4	+	of North Dakota
	5	+	Introduced by
	6	+	Representatives D. Ruby, Bosch, Ista, Lefor, Weisz, Vigesaa
	7	+	Senators Hogan, Hogue, Klein
	8	+	A BILL for an Act to amend and reenact section 51-07-29 of the North Dakota Century Code,
	9	+	relating to motor vehicle warranty work compensation.
8	10		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
9		-	SECTION 1. AMENDMENT. Section 51-07-29 of the North Dakota Century Code is ~~amended and~~
10		-	reenacted as follows:
	11	+	SECTION 1. AMENDMENT. Section 51-07-29 of the North Dakota Century Code is
	12	+	amended and reenacted as follows:
11	13		51-07-29. Warranty work compensation.
12		-	1.a.A motor vehicle manufacturer or distributor shall include reasonable compensation for
13		-	diagnostic work, as well as repair service, parts, and labor, in warranty work
14		-	compensation. In addition, a motor vehicle manufacturer shall provide adequate time
15		-	allowances for diagnosis and performance of warranty work and service for the work
16		-	performed. The hourly labor rate paid by a motor vehicle manufacturer to the dealer for
17		-	warranty services mayreasonably compensate its dealers for labor and parts provided by
18		-	the dealer in connection with the following manufacturer or distributor sponsored, issued,
19		-	or required items:
	14	+	1.a.A motor vehicle manufacturer or distributor shall include reasonable
	15	+	compensation for diagnostic work, as well as repair service, parts, and labor, in
	16	+	warranty work compensation. In addition, a motor vehicle manufacturer shall
	17	+	provide adequate time allowances for diagnosis and performance of warranty
	18	+	work and service for the work performed. The hourly labor rate paid by a motor
	19	+	vehicle manufacturer to the dealer for warranty services mayreasonably
	20	+	compensate its dealers for labor and parts provided by the dealer in connection
	21	+	with the following manufacturer or distributor sponsored, issued, or required
	22	+	items:
20	23		(1)Predelivery preparation.
21	24		(2)Installation of accessories or components required by the manufacturer or
22	25		distributor to be installed before the sale of a vehicle to a consumer.
23	26		(3)Diagnostic work.
24	27		(4)Maintenance programs.
25	28		(5)Extended warranty.
26	29		(6)Certified preowned warranty.
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	31	+	ENGROSSED HOUSE BILL NO. 1515
	32	+	FIRST ENGROSSMENT
	33	+	with Senate Amendments
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27	57		(7)Service contracts.
28	58		(8)Parts exchange programs.
29	59		(9)Recall, goodwill, and warranty work performed by the dealer.
30		-	b.Reasonable compensation for labor for the services identified in subdivision a may not be
31		-	less than the average retail rate charged by the dealer for like service to nonwarranty
32		-	customers for nonwarranty service as provided under subsection 5. A motor vehicle
33		-	manufacturer may not reimburse a dealer for parts used in the performance of warranty
34		-	repair at a lower rate multiplied by the time guide used by the dealer for nonwarranty
35		-	customer-paid service repair orders. To establish a time guide, a dealer shall provide
36		-	written notice to the manufacturer or distributor with the name of the time guide the
37		-	dealer uses. The manufacturer or distributor may not require the dealer to provide any
38		-	other information to establish the time guide the dealer uses. If no time guide exists for a
39		-	warranty repair, compensation for warranty labor must equal the dealer's average retail
40		-	rate multiplied by the time spent to complete the repair, and may not be less than the
41		-	time charged to a retail customer for the same or similar work provided. A dealer shall H. B. NO. 1515 - PAGE 2
42		-	use time allowances for the diagnosis and performance of work and service which are
43		-	reasonable and adequate for a qualified technician to perform the work or services.
44		-	Reasonable compensation for parts for the services identified in subdivision a may not be
45		-	less than the average retail rate customarily charged by the dealer for these parts as
46		-	provided under subsection 4.
47		-	2.A dealer shall submit a claim for reimbursement for services within ninety days from the
48		-	completion of the services identified in subdivision a of subsection 1. A motor vehicle
49		-	manufacturer or distributor shall pay a dealer on a claim made by a dealer under this section
50		-	within thirty days of the approval of the claim. The manufacturer or distributor shall either
51		-	approve or disapprove a claim within thirty days after the claim is submitted to the
52		-	manufacturer or distributor. The manufacturer or distributor may prescribe the manner in which
53		-	and the forms on which the dealer must present the claim. A claim not specifically disapproved
54		-	in writing within thirty days after the manufacturer or distributor receives the claim must be
55		-	construed to be approved and the manufacturer or distributor shall pay the claim within thirty
56		-	days. If a manufacturer or distributor disapproves a claim in writing within thirty days, the
57		-	manufacturer or distributor shall contemporaneously provide the dealer with a detailed written
58		-	explanation of the reason the claim was disapproved. The dealer has thirty days from the
59		-	receipt of the disapproval to resubmit a corrected claim.
60		-	3.A motor vehicle manufacturer, factory branch, or distributor, or distributor branch shall fully
61		-	compensate its motor vehicle dealers licensed in this state for warranty parts, work, and
62		-	serviceand labor specified in this section. Failure to fully compensate includes a reduction in
63		-	the amount due under this section to the dealer or imposing a separate charge, surcharge, or
64		-	other imposition by which the motor vehicle manufacturer, factory branch, or distributor, or
65		-	distributor branch seeks to recover the costs of complying with this section from the dealer.
	60	+	b.Reasonable compensation for labor for the services identified in subdivision a
	61	+	may not be less than the average retail rate charged by the dealer for like service
	62	+	to nonwarranty customers for nonwarranty service as provided under
	63	+	subsection 5. A motor vehicle manufacturer may not reimburse a dealer for parts
	64	+	used in the performance of warranty repair at a lower rate multiplied by the time
	65	+	guide used by the dealer for nonwarranty customer-paid service repair orders. To
	66	+	establish a time guide, a dealer shall provide written notice to the manufacturer or
	67	+	distributor with the name of the time guide the dealer uses. The manufacturer or
	68	+	distributor may not require the dealer to provide any other information to establish
	69	+	the time guide the dealer uses. If no time guide exists for a warranty repair,
	70	+	compensation for warranty labor must equal the dealer's average retail rate
	71	+	multiplied by the time spent to complete the repair, and may not be less than the
	72	+	time charged to a retail customer for the same or similar work provided. A dealer
	73	+	shall use time allowances for the diagnosis and performance of work and service
	74	+	which are reasonable and adequate for a qualified technician to perform the work
	75	+	or services. Reasonable compensation for parts for the services identified in
	76	+	subdivision a may not be less than the average retail rate customarily charged by
	77	+	the dealer for these parts as provided under subsection 4.
	78	+	2.A dealer shall submit a claim for reimbursement for services within ninety days from
	79	+	the completion of the services identified in subdivision a of subsection 1. A motor
	80	+	vehicle manufacturer or distributor shall pay a dealer on a claim made by a dealer
	81	+	under this section within thirty days of the approval of the claim. The manufacturer or
	82	+	distributor shall either approve or disapprove a claim within thirty days after the claim
	83	+	is submitted to the manufacturer or distributor. The manufacturer or distributor may
	84	+	prescribe the manner in which and the forms on which the dealer must present the
	85	+	claim. A claim not specifically disapproved in writing within thirty days after the
	86	+	manufacturer or distributor receives the claim must be construed to be approved and
	87	+	the manufacturer or distributor shall pay the claim within thirty days. If a manufacturer
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	121	+	or distributor disapproves a claim in writing within thirty days, the manufacturer or
	122	+	distributor shall contemporaneously provide the dealer with a detailed written
	123	+	explanation of the reason the claim was disapproved. The dealer has thirty days from
	124	+	the receipt of the disapproval to resubmit a corrected claim.
	125	+	3.A motor vehicle manufacturer, factory branch, or distributor, or distributor branch shall
	126	+	fully compensate its motor vehicle dealers licensed in this state for warranty parts,
	127	+	work, and serviceand labor specified in this section. Failure to fully compensate
	128	+	includes a reduction in the amount due under this section to the dealer or imposing a
	129	+	separate charge, surcharge, or other imposition by which the motor vehicle
	130	+	manufacturer, factory branch, or distributor, or distributor branch seeks to recover the
	131	+	costs of complying with this section from the dealer.
66	132		4.The retail rate customarily charged by the dealer for parts is established by the dealer
67	133		submitting to the manufacturer or distributor one hundred sequential nonwarranty
68		-	customer-paid service repair orders that contain warranty-like parts or ninety consecutive days
69		-	of nonwarranty customer-paid service repair orders that contain warranty-like parts, whichever
70		-	is less, covering repairs made no more than one hundred eighty days before the submission
71		-	and declaring the average percentage markup.
72		-	5.The retail rate customarily charged by the dealer for labor must be established using the same
73		-	process as provided under subsection 4 and declaring the average labor rate. The average
74		-	labor rate must be determined by dividing the amount of the dealer's total labor sales by the
75		-	number of total hours that generated those sales. If a labor rate and parts markup rate are
76		-	simultaneously declared by the dealer, the dealer may use the same repair orders to complete
77		-	each calculation as provided under subsection 4.
78		-	6.In calculating the retail rate customarily charged by the dealer for parts and labor as provided
79		-	in subsections 4 and 5 , the following work may not be included in the calculation:
80		-	a.Repairs for manufacturer or distributor special events, specials, or promotional discounts
81		-	for retail customer repairs;
	134	+	customer-paid service repair orders that contain warranty-like parts or ninety
	135	+	consecutive days of nonwarranty customer-paid service repair orders that contain
	136	+	warranty-like parts, whichever is less, covering repairs made no more than one
	137	+	hundred eighty days before the submission and declaring the average percentage
	138	+	markup.
	139	+	5.The retail rate customarily charged by the dealer for labor must be established using
	140	+	the same process as provided under subsection 4 and declaring the average labor
	141	+	rate. The average labor rate must be determined by dividing the amount of the
	142	+	dealer's total labor sales by the number of total hours that generated those sales. If a
	143	+	labor rate and parts markup rate are simultaneously declared by the dealer, the dealer
	144	+	may use the same repair orders to complete each calculation as provided under
	145	+	subsection 4.
	146	+	6.In calculating the retail rate customarily charged by the dealer for parts and labor as
	147	+	provided in subsections 4 and 5 , the following work may not be included in the
	148	+	calculation:
	149	+	a.Repairs for manufacturer or distributor special events, specials, or promotional
	150	+	discounts for retail customer repairs;
82	151		b.Parts sold at wholesale;
83		-	c.Parts or labor used in manufacturer or distributor sponsored programs that restrict the
84		-	pricing for repairs;
85		-	d.Routine maintenance not covered under any retail customer warranty, including fluids,
86		-	filters, and belts not provided in the course of repairs;
87		-	d.e.Nuts, bolts, fasteners, and similar items that do not have an individual part number;
88		-	e.Tires H. B. NO. 1515 - PAGE 3
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	185	+	c.Parts or labor used in manufacturer or distributor sponsored programs that
	186	+	restrict the pricing for repairs;
	187	+	d.Routine maintenance not covered under any retail customer warranty, including
	188	+	fluids, filters, and belts not provided in the course of repairs;
	189	+	d.e.Nuts, bolts, fasteners, and similar items that do not have an individual part
	190	+	number;
	191	+	e.Tires
89	192		f.Replacement or work on tires, including wheel or tire rotations or balancing, or
90	193		replacements of brakes, including brake drums, rotors, shoes, or pads; and
91	194		f.g.Vehicle reconditioning.;
92	195		h.Alignments, unless necessary as part of a mechanical repair;
93	196		i.Batteries, other than electric vehicle or hybrid vehicle propulsion batteries;
94	197		j.Repairs of a motor vehicle owned by the dealer or an employee of the dealer;
95	198		k.Installation of accessories;
96	199		l.Repairs to or with aftermarket parts; and
97		-	m.Repairs performed on motor vehicles of a line make other than that for which the dealer
98		-	is franchised by the motor vehicle manufacturer.
99		-	7.a.The average of the parts markup rates and labor rate calculated under subsections 4
100		-	through 6 is presumed to be fair and reasonable and must go into effect thirty days
101		-	following the manufacturer's approvalreceipt of the submission subject to the
102		-	manufacturer or distributor's ability to contest the rate as provided in this subsection. The
103		-	motor vehicle manufacturer or distributor may not issue more than one notice to the
104		-	dealer contesting any declared labor rate or parts markup, and may not add to, expand,
105		-	supplement, or otherwise modify any reason for contesting the declared rate or parts
106		-	markup. A manufacturer or distributor may rebut the presumption by reasonably
107		-	substantiating that a rate is unreasonable in light of the practices of all other franchised
108		-	motor vehicle dealers in an economically similar area of the state offering the dealer's
109		-	declaration of the same line-make vehicles, not later than thirty days after submission. If
110		-	the average parts markup rate or average labor rate is rebutted, or both, the
111		-	manufacturer or distributor shall propose an adjustment of the average percentage
112		-	markup based on that rebuttal not later than thirty days after submission.contest the
113		-	material accuracy of the rate calculated under this section by providing a written
114		-	objection to the dealer within thirty days after receiving the dealer's submission, and
115		-	shall:
	200	+	m.Repairs performed on motor vehicles of a line make other than that for which the
	201	+	dealer is franchised by the motor vehicle manufacturer.
	202	+	7.a.The average of the parts markup rates and labor rate calculated under
	203	+	subsections 4 through 6 is presumed to be fair and reasonable and must go into
	204	+	effect thirty days following the manufacturer's approvalreceipt of the submission
	205	+	subject to the manufacturer or distributor's ability to contest the rate as provided
	206	+	in this subsection. The motor vehicle manufacturer or distributor may not issue
	207	+	more than one notice to the dealer contesting any declared labor rate or parts
	208	+	markup, and may not add to, expand, supplement, or otherwise modify any
	209	+	reason for contesting the declared rate or parts markup. A manufacturer or
	210	+	distributor may rebut the presumption by reasonably substantiating that a rate is
	211	+	unreasonable in light of the practices of all other franchised motor vehicle dealers
	212	+	in an economically similar area of the state offering the dealer's declaration of the
	213	+	same line-make vehicles, not later than thirty days after submission. If the
	214	+	average parts markup rate or average labor rate is rebutted, or both, the
	215	+	manufacturer or distributor shall propose an adjustment of the average
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	249	+	percentage markup based on that rebuttal not later than thirty days after
	250	+	submission.contest the material accuracy of the rate calculated under this section
	251	+	by providing a written objection to the dealer within thirty days after receiving the
	252	+	dealer's submission, and shall:
116	253		(1)Provide the dealer with a copy of all calculations used by the motor vehicle
117		-	manufacturer or distributor to make the determination of the dealer's labor rate or
118		-	parts markup, a written explanation of the basis for any inaccuracy alleged by the
119		-	motor vehicle manufacturer or distributor, and evidence substantiating any written
120		-	explanation.
121		-	(2)Provide a proposed adjustment of the dealer's labor rate or parts markup based
122		-	solely upon the information provided by paragraph 1.
123		-	(3)Commence paying the dealer at the proposed adjusted labor rate or parts markup
124		-	determined by the motor vehicle manufacturer or distributor as provided in this
125		-	section. This section applies to all proposed adjusted labor rates or parts markups,
126		-	even if the motor vehicle manufacturer's or distributor's determination of the labor
127		-	rate or parts markup is different from the labor rate or parts markup provided in the
128		-	dealer's submission.
129		-	b.If a motor vehicle manufacturer or distributor fails to comply with the requirements of
130		-	subdivision a within thirty days of receipt of submission, the submission is approved.
131		-	c.If a dealer agrees with the conclusions of the motor vehicle manufacturer or distributor
132		-	and any corresponding adjustment to the labor rate or parts markup contained within the H. B. NO. 1515 - PAGE 4
133		-	written objection, no further action is required. The new adjusted rate is effective thirty
134		-	days after the dealer's submission is received by the manufacturer or distributor.
135		-	d.If a motor vehicle manufacturer or distributor provides a written objection that complies
136		-	with the requirements under subdivision a, and the dealer does not agree with the
137		-	proposed adjusted labor rate or parts markup contained within the written objection, or if
138		-	the dealer disputes the motor vehicle manufacturer or distributor complied with the
139		-	provisions of subdivision a, the dealer may bring an action in a court of competent
140		-	jurisdiction. In such proceeding:
	254	+	manufacturer or distributor to make the determination of the dealer's labor
	255	+	rate or parts markup, a written explanation of the basis for any inaccuracy
	256	+	alleged by the motor vehicle manufacturer or distributor, and evidence
	257	+	substantiating any written explanation.
	258	+	(2)Provide a proposed adjustment of the dealer's labor rate or parts markup
	259	+	based solely upon the information provided by paragraph 1.
	260	+	(3)Commence paying the dealer at the proposed adjusted labor rate or parts
	261	+	markup determined by the motor vehicle manufacturer or distributor as
	262	+	provided in this section. This section applies to all proposed adjusted labor
	263	+	rates or parts markups, even if the motor vehicle manufacturer's or
	264	+	distributor's determination of the labor rate or parts markup is different from
	265	+	the labor rate or parts markup provided in the dealer's submission.
	266	+	b.If a motor vehicle manufacturer or distributor fails to comply with the
	267	+	requirements of subdivision a within thirty days of receipt of submission, the
	268	+	submission is approved.
	269	+	c.If a dealer agrees with the conclusions of the motor vehicle manufacturer or
	270	+	distributor and any corresponding adjustment to the labor rate or parts markup
	271	+	contained within the written objection, no further action is required. The new
	272	+	adjusted rate is effective thirty days after the dealer's submission is received by
	273	+	the manufacturer or distributor.
	274	+	d.If a motor vehicle manufacturer or distributor provides a written objection that
	275	+	complies with the requirements under subdivision a, and the dealer does not
	276	+	agree with the proposed adjusted labor rate or parts markup contained within the
	277	+	written objection, or if the dealer disputes the motor vehicle manufacturer or
	278	+	distributor complied with the provisions of subdivision a, the dealer may bring an
	279	+	action in a court of competent jurisdiction. In such proceeding:
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141	313		(1)The motor vehicle manufacturer or distributor has the burden of proof by a
142	314		preponderance of the evidence, and must show:
143	315		(a)The manufacturer or distributor complied with subdivision a;
144		-	(b)The dealer's submitted labor rate or parts markup was materially ~~inaccurate;~~
145		-	and
146		-	(c)The manufacturer's or distributor's proposed adjustment to the ~~dealer's~~
147		-	submitted labor rate or parts markup was materially accurate.
	316	+	(b)The dealer's submitted labor rate or parts markup was materially
	317	+	inaccurate; and
	318	+	(c)The manufacturer's or distributor's proposed adjustment to the
	319	+	dealer's submitted labor rate or parts markup was materially accurate.
148	320		(2)If the dealer prevails in the action, the dealer's labor rate or parts markup is
149		-	retroactive to the date thirty days following the motor vehicle manufacturer's or
150		-	distributor's receipt of the submission, and the dealer shall recover all expenses in
151		-	bringing and maintaining the action, including reasonable attorney fees. If a court
152		-	finds the motor vehicle manufacturer or distributor willfully violated this section, the
153		-	dealer is entitled to recover three times the amount of the retroactive labor rate or
154		-	parts markup.
155		-	8.Each manufacturer, in establishing a schedule of compensation for warranty work, shall rely
156		-	on the vehicle dealer's written schedule of hourly labor rates and parts and may not obligate
157		-	any vehicle dealer to engage in unduly burdensome or time-consuming documentation of
158		-	rates or parts, including obligating vehicle dealers to engage in transaction-by-transaction or
159		-	part-by-part calculationsIn establishing a rate under this section, the dealer's labor rate or
160		-	parts markup must be calculated using the method prescribed in subsections 4 though 6 .
	321	+	retroactive to the date thirty days following the motor vehicle manufacturer's
	322	+	or distributor's receipt of the submission, and the dealer shall recover all
	323	+	expenses in bringing and maintaining the action, including reasonable
	324	+	attorney fees. If a court finds the motor vehicle manufacturer or distributor
	325	+	willfully violated this section, the dealer is entitled to recover three times the
	326	+	amount of the retroactive labor rate or parts markup.
	327	+	8.Each manufacturer, in establishing a schedule of compensation for warranty work,
	328	+	shall rely on the vehicle dealer's written schedule of hourly labor rates and parts and
	329	+	may not obligate any vehicle dealer to engage in unduly burdensome or
	330	+	time-consuming documentation of rates or parts, including obligating vehicle dealers to
	331	+	engage in transaction-by-transaction or part-by-part calculationsIn establishing a rate
	332	+	under this section, the dealer's labor rate or parts markup must be calculated using the
	333	+	method prescribed in subsections 4 though 6 .
161	334		9.A dealer or, manufacturer, or distributor may demand that the average parts markup or
162		-	average labor rate be calculated using the process provided under subsections 4 and 5;
163		-	however, the demand for the average parts markup may not be made within twelve months of
164		-	the last parts markup declaration and the demand for the average labor rate may not be made
165		-	within twelve months of the last labor rate declaration. If a parts markup or labor rate is
166		-	demanded by the dealer or manufacturer or distributor, the dealer shall determine the repair
167		-	orders to be included in the calculation under subsections 4 and 5.
168		-	10.a.If a motor vehicle manufacturer or distributor furnishes, or causes to be furnished, a part
169		-	to a dealer at no cost or at a reduced cost for use in performing the services identified in
170		-	subdivision a of subsection 1, the motor vehicle manufacturer or distributor shall
171		-	compensate the dealer in the same manner as parts compensation under this section by
172		-	paying the dealer for the dealer's cost of the part, if any, plus an amount equal to the
173		-	dealer's parts markup, multiplied by the wholesale value of the part. The wholesale value
174		-	of the part must be the greater of:
175		-	(1)The amount the dealer paid for the part or a substantially identical part if already
176		-	owned by the dealer;
177		-	(2)The cost of the part shown in a current, or prior, motor vehicle manufacturer's,
178		-	distributor's, or furnishing party's established price schedule; and H. B. NO. 1515 - PAGE 5
179		-	(3)The cost of a substantially identical part shown in a current, or prior, motor vehicle
180		-	manufacturer's, distributor's, or furnishing party's established price schedule.
181		-	b.A motor vehicle manufacturer or distributor may not establish or implement a special part
182		-	number for any part used in the services identified in subdivision a of subsection 1 if it
183		-	results in lower compensation to the dealer than as calculated under this section.
	335	+	average labor rate be calculated using the process provided under subsections 4 and
	336	+	5; however, the demand for the average parts markup may not be made within twelve
	337	+	months of the last parts markup declaration and the demand for the average labor rate
	338	+	may not be made within twelve months of the last labor rate declaration. If a parts
	339	+	markup or labor rate is demanded by the dealer or manufacturer or distributor, the
	340	+	dealer shall determine the repair orders to be included in the calculation under
	341	+	subsections 4 and 5.
	342	+	10.a.If a motor vehicle manufacturer or distributor furnishes, or causes to be furnished,
	343	+	a part to a dealer at no cost or at a reduced cost for use in performing the
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	375	+	31 Sixty-ninth
	376	+	Legislative Assembly
	377	+	services identified in subdivision a of subsection 1, the motor vehicle
	378	+	manufacturer or distributor shall compensate the dealer in the same manner as
	379	+	parts compensation under this section by paying the dealer for the dealer's cost
	380	+	of the part, if any, plus an amount equal to the dealer's parts markup, multiplied
	381	+	by the wholesale value of the part. The wholesale value of the part must be the
	382	+	greater of:
	383	+	(1)The amount the dealer paid for the part or a substantially identical part if
	384	+	already owned by the dealer;
	385	+	(2)The cost of the part shown in a current, or prior, motor vehicle
	386	+	manufacturer's, distributor's, or furnishing party's established price
	387	+	schedule; and
	388	+	(3)The cost of a substantially identical part shown in a current, or prior, motor
	389	+	vehicle manufacturer's, distributor's, or furnishing party's established price
	390	+	schedule.
	391	+	b.A motor vehicle manufacturer or distributor may not establish or implement a
	392	+	special part number for any part used in the services identified in subdivision a of
	393	+	subsection 1 if it results in lower compensation to the dealer than as calculated
	394	+	under this section.
184	395		11.A motor vehicle manufacturer or distributor may not:
185		-	a.Require or influence or attempt to influence a dealer to implement or change the ~~prices~~
186		-	for which it sells parts or labor in retail repairs.
187		-	b.Implement or continue a policy, procedure, or program to any of its dealers in this ~~state~~
188		-	for compensation under this section which is inconsistent with this section ~~unless~~
189		-	otherwise agreed by the dealer and the manufacturer or distributor.
	396	+	a.Require or influence or attempt to influence a dealer to implement or change the
	397	+	prices for which it sells parts or labor in retail repairs.
	398	+	b.Implement or continue a policy, procedure, or program to any of its dealers in this
	399	+	state for compensation under this section which is inconsistent with this section
	400	+	unless otherwise agreed by the dealer and the manufacturer or distributor.
190	401		c.Take, or threaten to take, adverse action against a dealer that seeks to obtain
191	402		compensation under this section, including:
192		-	(1)Creating or implementing an obstacle or process that is inconsistent with the ~~motor~~
193		-	vehicle manufacturer's obligations to the dealer under this chapter;
	403	+	(1)Creating or implementing an obstacle or process that is inconsistent with the
	404	+	motor vehicle manufacturer's obligations to the dealer under this chapter;
194	405		(2)Acting in bad faith; or
195		-	(3)Hindering, delaying, or rejecting the proper and timely payment of compensation
196		-	due to a dealer under this section, provided nothing in this paragraph may restrict or
197		-	impair audits or chargebacks conducted in accordance with section 51 - 07 - 02.4.
198		-	12.This section applies to all manufacturers and distributors as defined by section 51 - 07 - 00.1,
199		-	and any other person that supplies a component or part installed on a new motor vehicle for
200		-	which the warranty of the component or part is warrantied by another person that is not the
201		-	manufacturer. H. B. NO. 1515 - PAGE 6
202		-	____________________________ ____________________________
203		-	Speaker of the House President of the Senate
204		-	____________________________ ____________________________
205		-	Chief Clerk of the House Secretary of the Senate
206		-	This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
207		-	Assembly of North Dakota and is known on the records of that body as House Bill No. 1515.
208		-	House Vote: Yeas 88 Nays 2 Absent 4
209		-	Senate Vote:Yeas 42 Nays 2 Absent 3
210		-	____________________________
211		-	Chief Clerk of the House
212		-	Received by the Governor at ________M. on _____________________________________, 2025.
213		-	Approved at ________M. on __________________________________________________, 2025.
214		-	____________________________
215		-	Governor
216		-	Filed in this office this ___________day of _______________________________________, 2025,
217		-	at ________ o’clock ________M.
218		-	____________________________
219		-	Secretary of State
	406	+	(3)Hindering, delaying, or rejecting the proper and timely payment of
	407	+	compensation due to a dealer under this section, provided nothing in this
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	439	+	31 Sixty-ninth
	440	+	Legislative Assembly
	441	+	paragraph may restrict or impair audits or chargebacks conducted in
	442	+	accordance with section 51 -07 -02.4.
	443	+	12.This section applies to all manufacturers and distributors as defined by section
	444	+	51 - 07 - 00.1, and any other person that supplies a component or part installed on a new
	445	+	motor vehicle for which the warranty of the component or part is warrantied by another
	446	+	person that is not the manufacturer.
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