AN ACT TO AUTHORIZE THE DIVISION OF MOTOR VEHICLES DISCRETION IN ASSESSING PENALTIES AND SUSPENSIONS ON SAFETY INSPECTION LICENSE HOLDERS FOR SAFETY INSPECTION LAW VIOLATIONS AND TO CLARIFY THE MOTOR VEHICLE DEALERS AND MANUFACTURERS' LICENSING LAW. Enacted July 18, 2013. Sections 1 through 6 are effective October 1, 2013. The remainder is effective July 18, 2013.
Summary date: Jul 23 2013 - View summary
Summary date: Jun 26 2013 - View summary
House committee substitute makes the following changes to the 2nd edition.
Makes a conforming change to GS 20-183.7(a), deleting a reference to inspection stickers.
Amends GS 20-183.7A (safety violations) todelete changes from the previous edition and revert to current law, which requiresthe Division of Motor Vehicles (DMV)to take the specified actions for violations (was, theDMVmay take the specified actions). Clarifies the length of the license suspension as 180 days for a first or second Type I violation within three years. Authorizes the DMV to stay a term of suspension for the first Type I violation by a safety inspection stationif the station agrees to follow reasonable terms and conditions imposed by the DMV. Also provides that the DMV may, at its discretion, run suspensions for multiple violations in separate safety inspections concurrently.
Amends GS 20-183.7B to modify the list of Type I, II, and III safety inspection violations.
Amends GS 20-183.8B (emissions violations), authorizing the DMV to stay a term of suspension for the first Type I violation by an emissions inspection station if the station agrees to follow reasonable terms and conditions imposed by the DMV. Provides that if two or more violations occur in a single emissions inspection, the DMV is to takeaction only on the most significant violation. Provides that if there are multiple violations in separate emissions inspections, the DMV is to consider each violation as a separate occurrence and impose a separate penalty for each violation. However, authorizes the DMV, at its discretion, torun suspensions concurrently. Clarifies the duration of the license suspension as 180 days for Type I violations.
Amends GS 20-183.8C to modify the list of Type I, II, and III emissions inspection violations.
Amends GS 20-183.8G(f) (administrative and judicial review) to conform the administrative and judicial review provisions governing safety and emissions inspection violations to reflect the changes made regarding safety and emissions inspections in this act.
Provides that each of the preceding provisions, representing Sections 1-6 of this act, become effective October 1, 2013. The following provisions, constituting Sections 7-12 of this act areeffective when the act becomes law.
Amends GS 20-305(30), extending the deadlinefor certain established manufacturer programs that vary the price charged to its franchised dealers in the state, although the programs would otherwise be unlawful under GS 20-305, to continue in effect until June 30, 2018 (was, June 30, 2014).
Amends GS 20-305 by adding new subsections GS 20-305(44-48),adding to theconduct considered unlawfulon the part of any manufacturer, factory branch, distributor, distributor branch, field representative, officer agent, or any other representative as follows:
- GS 20-305(44), providing it is unlawful, aside from other conditions or agreements, to require, coerce, or attempt to coerce any new motor vehicle dealer to refrain from displaying any sports-relatedhonors, awards, photos, display, or other artifacts related to the dealership, dealer principal, or any owners or other officials of the business.
- GS 20-305(45), providing it is unlawful, aside from other conditions or agreements, todiscriminate against any new motor vehicle dealer for offering service contracts or other products that are not approved, endorsed, or offered by the manufacturer or affiliates. This discrimination includes, but is not limited to, the following: requiring or coercing a dealer to exclusively offer their service contracts or similar products, taking or threatening adverse action against a dealer for offering such unendorsed products, measuring performance of a franchise in any part based on the sale of the endorsed or approved products of the manufacturer, requiring a dealer to promote the sale of the manufacturer's products, or considering the dealer's sale of the approved or endorsed products in determining eligibility to purchase vehicles or parts, the volume of vehicles or parts the dealer can purchase, the price of anything bought from the manufacturer, and the availability ofvehicle discounts, credits, special pricing, or rebates. Includes language stating examples of actions by a manufacturer which are not considered discrimination.
- GS 20-305(46), providing it is unlawful to require, coerce, or attempt to coerce a dealerto purchase goods or services from a vendor specified, selected, identified, or designated by a manufacturer or affiliate when the dealer may obtain goods or services of substantially similar quality and design from a dealer-selected vendor with prior approval.Allows dealersto file a protest with the Commissioner of Motor Vehicles (Commissioner) in certain circumstances.
- GS 20-305(47), providing it is unlawful to fail to provide to a dealer the right to purchase or lease signs or other franchisor image elements of like kind and quality from a vendor selected by the dealer.
- GS 20-305(48), providing it is unlawful to unreasonably interfere with a dealer's independence in staffing the dealership by requiring the hiring of specific individuals, for specific positions, or by requiring the approvalby the manufacturer or affiliate.
Amends GS 20-305.2 (Unfair methods of competition), creating a new subsection GS 20-305.2(e), stating that an unfair method of competition includes any warranty fix, repair, update, or adjustment made or provided directly by a manufacturer or distributor to anyvehicle in the state without the direct participation of a dealer franchised by the manufacturer or distributor and without such dealer receivingreasonable compensation. Adds new subsection (f) to declare that no claim or cause of action may be brought against a dealer in this state arising out of any warranty repair, fix, repair, or update that was provided by the manufacturer or distributor without the direct participation of the dealer. Requires any manufacturer or distributor who violates this provision to fully indemnify and hold harmless any dealer in this state for claims, judgments, damages, attorneys' fees, litigation expenses, and all other costs arising out of the actual or attempted fix, repair, update, or adjustment.
Amends 20-305.7 (Protecting dealership data and consent to access dealership information), making conforming,technical, and clarifying changes. Extends the provisions concerning direct access to a dealer's computer system so that it also applies to a third party approved, referred, endorsed, authorized, certified,granted preferred status, or recommended by a relevant party. Extends the hold harmless provision in (g2) to also include costs related to the disclosure of security breaches and computer system costs.
Amends GS 20-305.1 (Automobile dealer warrant obligations), making clarifying and technical changes. Amends GS 20-305.1(a1),stating any reasonable rate determined at a hearing conducted pursuant to this section will be effective as of 60 days after the date of the dealer's initial submission of the customer-paid service orders to the manufacturer or distributor.
Includes "batteries and light bulbs" in the list included inGS 20-305.1(a2) of work that is excluded when calculating the retail rate customarily charged by the dealer for parts and labor, for purposes of this section.
Provides that terms and provisions of Sections 7-12 ofthis actare applicable to all currentand future franchises and other agreements in existence between any new motor vehicle dealerin this state and a manufacturer or distributor as of the effective date of this act.
Includes a severability clause, providing that if any provision of this act is found to be invalid, the remainder of the act would still be valid to the extent that it may be given effect without the invalid provisions.
Amends the act's short and long titles.
Summary date: May 15 2013 - View summary
Senate committee substitute makes the following changes to the 1st edition. Deletes the proposed changes to GS 20-183.8F in the previous edition. Amends GS 20-183.7A (penalties applicable to license holders and suspension or revocation of license for safety violations) to provide that the Division of Motor Vehicles may take the specified actions for violations (was, the Division was required to take the specified actions).
Retains the October 1, 2013, effective date.
Updates the act's short and long titles.
Summary date: Apr 5 2013 - View summary
Amends GS 20-183.8F, as the title indicates. Provides that failure to comply with the notice requirement will result in dismissal of the violation. Effective October 1, 2013.