North DakotaHB 15152025 Regular SessionHouseWALLET

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)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Dealer rates take effect with court backup

Your submitted parts markup and labor rate are presumed fair and take effect 30 days after receipt unless the manufacturer objects once in writing within 30 days. Any objection must include calculations and evidence, and the manufacturer must start paying its proposed rate while disputing; if it fails, your rate applies. If you sue and win, you get retro pay back to 30 days after submission, plus your legal costs. If the court finds a willful violation, you get three times the retro amount. In court, the manufacturer must prove its adjustment is justified.

Retail rate pay for dealer warranty work

The law makes manufacturers pay at least your average retail labor rate for warranty work, and pay for diagnostics. If no time guide exists, pay is your average retail rate times the actual time. Parts pay must be at least your average retail parts rate. You set your parts markup using 100 sequential repair orders or 90 straight days of orders, from work done within 180 days. You set your labor rate as total labor sales divided by total hours. Your calculations must exclude items like tires, routine maintenance, most batteries (not EV propulsion), accessory installs, collision damage, and other listed categories. Manufacturers must use your written rate schedule, cannot demand burdensome paperwork, and rate recalculations may be demanded only once every 12 months for parts or labor. If a recalculation is requested, you choose which repair orders to use.

Stronger dealer protections from manufacturer pay cuts

Manufacturers cannot reduce required payments or add surcharges to claw back costs. If they furnish a part for free or at a discount, they must pay your cost plus your markup times the part’s wholesale value (the highest of listed benchmarks). They cannot force you to change retail prices, retaliate for using this law, or use special part numbers to lower pay. These rules apply to all manufacturers and distributors, and also to suppliers whose parts carry their own warranties.

Faster dealer claim reviews, shorter window

Manufacturers must approve or disapprove your claim within 30 days and pay approved claims within 30 days. If they do not disapprove in writing within 30 days, the claim is approved and must be paid. If a claim is disapproved, they must give written reasons, and you have 30 days to fix and resubmit. You must file warranty claims within 90 days after the work is done.

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

All Roll Calls

Yes: 217 • No: 8

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

  1. Filed with Secretary Of State 04/11

    4/14/2025House
  2. Signed by Governor 04/10

    4/11/2025House
  3. Sent to Governor

    4/8/2025House
  4. Signed by Speaker

    4/8/2025House
  5. Signed by President

    4/4/2025Senate
  6. Second reading, passed, yeas 88 nays 2

    4/2/2025House
  7. Concurred

    4/2/2025House
  8. Returned to House (12)

    3/25/2025House
  9. Second reading, passed as amended, yeas 42 nays 2

    3/24/2025Senate
  10. Amendment adopted

    3/24/2025Senate
  11. Amendment proposed on floor

    3/24/2025Senate
  12. Reported back, do pass, place on calendar 4 2 0

    3/21/2025Senate
  13. Committee Hearing 04:00

    3/13/2025Senate
  14. Rereferred to Transportation

    2/24/2025Senate
  15. Request return from committee

    2/24/2025Senate
  16. Introduced, first reading, referred Industry and Business Committee

    2/20/2025Senate
  17. Received from House

    2/19/2025Senate
  18. Second reading, passed, yeas 87 nays 4

    2/18/2025House
  19. Amendment adopted, placed on calendar

    2/17/2025House
  20. Reported back amended, do pass, amendment placed on calendar 14 0 0

    2/14/2025House
  21. Committee Hearing 02:30

    2/6/2025House
  22. Introduced, 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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