All Roll Calls
Yes: 217 • No: 8
North DakotaHB 15152025 Regular SessionHouse
AN ACT to amend and reenact section 51-07-29 of the North Dakota Century Code, relating to motor vehicle warranty work compensation.
Sponsored By: Dan Ruby (Republican)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Dealers gain enforceable retail-based warranty rates
Dealers establish parts markups and labor rates using customer-paid, nonwarranty repair orders containing warranty-like parts. They submit 100 sequential orders or 90 consecutive days of orders, whichever is less, for repairs within the prior 180 days. Labor rates equal total labor sales divided by the hours that earned those sales. Exclusions cover promotional work, wholesale parts, price-restricted sponsored programs, routine maintenance, unnumbered fasteners, tire and brake work, reconditioning, and alignments outside mechanical repairs. Other exclusions cover non-propulsion batteries, dealer- or employee-owned vehicles, accessory installations, aftermarket-part repairs, and other vehicle makes. The same orders can support both rates when submitted together. Dealers, manufacturers, or distributors can demand recalculation only after 12 months from the last declaration; dealers choose the orders. Submitted rates are presumed fair and take effect 30 days after receipt unless properly contested. Within 30 days, a manufacturer or distributor must provide its calculations, reasons, evidence, and proposed adjustment in writing. It must begin paying the proposed adjusted rate; failing the required steps approves the dealer’s submission. Only one objection is allowed, and its reasons cannot later change. Dealers can sue, and the company must prove that it followed the process, the submission was materially inaccurate, and its adjustment was materially accurate. Winning dealers receive the correct rate retroactive to 30 days after submission, plus litigation expenses, including reasonable attorney fees. Willful violations allow triple recovery.
Minimum warranty pay for vehicle dealers
North Dakota requires manufacturers and distributors to pay dealers for covered warranty work and other sponsored or required services. Covered work includes pre-sale preparation and required installations, diagnostics, maintenance programs, extended and certified preowned warranties, service contracts, parts exchanges, recalls, and goodwill repairs. Labor pay must meet the dealer’s average retail rate times the allowed work time. Without a time guide, pay uses actual time, never less than the time charged retail customers for similar work. Time allowances must be adequate for a qualified technician; dealers establish their guide by written notice naming it, without additional information. Parts pay must meet the dealer’s customary average retail parts rate. For free or discounted parts, dealers get their cost plus their markup multiplied by the part’s wholesale value. That value is the highest of dealer cost, the supplier’s listed cost, or a substantially identical part’s current or prior listed cost. Special part numbers cannot be used to lower this payment. The rules also cover suppliers of parts installed on new vehicles when someone other than the vehicle maker provides the warranty.
Payment deadlines and protections for dealers
Dealers must submit covered service claims within 90 days after finishing the work. Manufacturers and distributors must approve or reject claims within 30 days and pay within 30 days after approval. Without a specific written rejection within 30 days, a claim is approved and payment is due within another 30 days. Rejections must give detailed reasons; dealers have 30 days after receiving them to resubmit corrected claims. Companies cannot recover compliance costs by reducing dealer payments or adding charges or surcharges. Manufacturers and distributors also cannot set or try to influence dealers’ retail parts or labor prices. Conflicting compensation policies require the dealer’s agreement. Companies cannot punish or threaten dealers seeking compensation, create improper barriers, act in bad faith, or block proper, timely payments. Audits and chargebacks allowed under existing North Dakota law remain available.
Sponsors & Cosponsors
Sponsor
Dan Ruby
Republican • House
Cosponsors
Glenn Bosch
Republican • House
Zachary Ista
Democratic • House
Mike Lefor
Republican • House
Don Vigesaa
Republican • House
Robin Weisz
Republican • House
Kathy Hogan
Democratic • Senate
David Hogue
Republican • Senate
Jerry Klein
Republican • Senate
Roll Call Votes
House vote • 4/2/2025
Second reading, passed, yeas 88 nays 2
Yes: 88 • No: 2
Senate vote • 3/24/2025
Second reading, passed as amended, yeas 42 nays 2
Yes: 42 • No: 2
House vote • 2/18/2025
Second reading, passed, yeas 87 nays 4
Yes: 87 • No: 4
Actions Timeline
Filed with Secretary Of State 04/11
4/14/2025HouseSigned by Governor 04/10
4/11/2025HouseSent to Governor
4/8/2025HouseSigned by Speaker
4/8/2025HouseSigned by President
4/4/2025SenateSecond reading, passed, yeas 88 nays 2
4/2/2025HouseConcurred
4/2/2025HouseReturned to House (12)
3/25/2025HouseSecond reading, passed as amended, yeas 42 nays 2
3/24/2025SenateAmendment adopted
3/24/2025SenateAmendment proposed on floor
3/24/2025SenateReported back, do pass, place on calendar 4 2 0
3/21/2025SenateCommittee Hearing 04:00
3/13/2025SenateRereferred to Transportation
2/24/2025SenateRequest return from committee
2/24/2025SenateIntroduced, first reading, referred Industry and Business Committee
2/20/2025SenateReceived from House
2/19/2025SenateSecond reading, passed, yeas 87 nays 4
2/18/2025HouseAmendment adopted, placed on calendar
2/17/2025HouseReported back amended, do pass, amendment placed on calendar 14 0 0
2/14/2025HouseCommittee Hearing 02:30
2/6/2025HouseIntroduced, first reading, referred Transportation Committee
1/20/2025House
Bill Text
Adopted by the House Transportation Committee
Enrollment
FIRST ENGROSSMENT
FIRST ENGROSSMENT with Senate Amendments
INTRODUCED
Prepared by the Legislative Council staff for Senator Klein
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