CLARIFY MOTOR VEHICLE DEALER LAWS.

View NCGA Bill Details2015-2016 Session
House Bill 800 (Public) Filed Tuesday, April 14, 2015
AN ACT TO CLARIFY MOTOR VEHICLE DEALERS AND MANUFACTURERS LICENSING LAW.
Intro. by W. Brawley.

Status: Ch. SL 2015-209 (House Action) (Aug 11 2015)
H 800/S.L. 2015-209

Bill Summaries:

  • Summary date: Aug 12 2015 - More information

    AN ACT TO CLARIFY MOTOR VEHICLE DEALERS AND MANUFACTURERS LICENSING LAW. Enacted August 11, 2015. Effective August 11, 2015.


  • Summary date: Jul 23 2015 - More information

    Senate committee substitute makes the following changes to the 2nd edition.

    Amends GS 20-305(6) to provide pinpoint references and links to antecedents to clarify connections between and among statutory provisions regarding motor vehicle dealers' and manufacturers' licensing law.

    Amends GS 20-305(6)d.3. regarding manufacturer or distributor liability to a dealer if a termination, cancellation, or nonrenewal is based on any of the occurrences in GS 20-305(6)c.1.IV (change in ownership, operation, or control of all or any part of the business). Makes a contract, agreement, or release between any manufacturer and any dealer in which the dealer waives the dealer's right to receive monetary compensation in any sum or amount not less than the fair market value insufficient to satisfy the manufacturer's obligation to adequately compensate the dealer and makes the contract voidable by the dealer if done within 90 days of the effective date of the agreement.

    Amends GS 20-305(38) to specify the circumstances under which a franchised new motor vehicle dealer may file a petition and have an evidentiary hearing when a dealer's area of responsibility has been improperly changed, and requires filing a petition for an evidentiary hearing before the Commissioner within 60 days of receiving such notice of a franchise area of responsibility change. Identifies existing circumstances that the Commissioner is to take into consideration in the evidentiary hearing. Provides that a policy or protocol of a manufacturer, distributor, factory, or distributor branch does not satisfy their burden of proof if the policy or protocol determining the area of responsibility is solely or primarily based on the proximity of census tracts or other geographic units to its franchised dealers. 

    Enacts new GS 20-305(49) to provide specifications as to criteria that must be met in order for the manufacturer, distributor, or affiliate to recover cost from a dealer for any tool designated as special or essential. Also requires invoices or billing statements that include actual costs for special or essential tools sold to a dealer that exceed $250.

    Amends GS 20-305.1(a2) making a clarifying change concerning work that is not included in calculating the retail rate customarily charged by the dealer for parts and labor.

    Deletes current provisions of GS 20-305.1(b3) and enacts provisions that provide that it is unlawful for manufacturers to take or threaten adverse action against dealers in North Carolina or to otherwise discriminate for specified reasons, including that the dealer failed to ensure that a purchaser or lessee paid personal property tax on the vehicle purchased or leased. Allows adverse action against a dealer when it has actual knowledge of a purchaser or lessee's intent to export a vehicle to a foreign country or resell the vehicle to a third party. Clarifies what actions constitute adverse action and discrimination (was, conduct) under this section. Establishes that in any proceeding brought under this subsection, the affected manufacturer has the burden of proving that the dealer knew or reasonably should have known of the purchaser or lessee's intent to export a vehicle to a foreign country or resell the vehicle to a third party. Sets out standards for reasonable presumptions according to the availability of specified information.

    Makes a conforming change to GS 20-305.1(c). Clarifies that compensation, or the withholding of compensation or chargeback of other compensation or support to which a dealer would otherwise be entitled, is stayed while waiting for a determination by the Commissioner as to the outcome of the dispute.

    Amends GS 20-305.1(g) to increase the compensation amount from $600 to $900 that can be paid by manufacturers or distributors to specified dealers of new trucks for certain covered costs. Makes additional clarifying and technical changes.

    Deletes the following sections from the previous edition: (1) Section 3, changes made to GS 20-305(46); (2) Section 4, changes made to GS 20-305.1(a); and (3) Section 6, changes made to GS 20-305.1(a3). 


  • Summary date: Apr 28 2015 - More information

    House committee substitute makes the following changes to the 1st edition.

    Deletes proposed changes to GS 20-305(6).

    Deletes proposed changes to GS 20-305(38).

    Deletes proposed changes to GS 20-305.1(b3).

    Deletes proposed changes to GS 20-305.1(c). 


  • Summary date: Apr 14 2015 - More information

    Identical to S 673, filed 3/26/15.

    Amends the following provisions of GS Chapter 20 by providing pinpoint references and links with antecedents to clarify connections between and among statutory provisions regarding motor vehicle dealers' and manufacturers' licensing law: GS 20-286(10)(b); GS 20-305(6); and GS 20-305(7)d.

    Amends GS 20-305(6)d.3. regarding manufacturer or distributor liability to a dealer if a termination, cancellation, or nonrenewal is based on any of the occurrences in GS 20-305(6)c.1.IV (change in ownership, operation, or control of all or any part of the business). Makes a contract, agreement, or release between any manufacturer and any dealer in which the dealer waives the dealer's right to receive monetary compensation in any sum or less than the fair market value insufficient to satisfy the manufacturer's obligation to adequately compensate the dealer and makes the contract voidable by the dealer. 

    Amends GS 20-305(38) to specify the circumstances under which a franchised new motor vehicle dealer may file a petition and have an evidentiary hearing when a dealer's area of responsibility has been improperly changed, before the Commissioner, as provided in GS 20-301(b), to contest the franchise. Identifies existing circumstances that the Commissioner is to take into consideration in the evidentiary hearing. Provides that a policy or protocol of a manufacturer, distributor, factory, or distributor branch does not satisfy their burden of proof if the policy or protocol determining the area of responsibility is solely or primarily based on the proximity of census tracts or other geographic units to its franchised dealers. Effective when this act becomes law but does not apply to any pending matter that has been the subject of a judicial review hearing under GS Chapter 150B as of the effective date of this act.

    Amends GS 20-305(46) to provide specifications as to criteria that must be met in order for the manufacturer, distributor, or affiliate to recover cost from a dealer for any tool designated as special or essential. Also expounds on what constitutes recoverable, actual cost and what makes a tool essential.

    Amends GS 20-305.1(a) to define the term warranty service as it applies in this section. Amends GS 20-305.1(a2) to clarify the work that is not to be included in calculating the retail rate customarily charged by the dealer for parts and labor includes routine maintenance including alignments, flushes, oil changes, and brakes not provided in the course of repairs, and tires and vehicle alignments.

    Amends GS 20-305.1(a3) to clarify that if a manufacturer or distributor requires a dealer to store or otherwise not dispose of a part or component removed by the dealer in the course of performing repairs under a recall, campaign service action, or warranty repair, the manufacturer or distributor is to provide reasonable compensation for the storage. Provides that the amount of the reasonable compensation is to be determined by the dealer and specifies criteria upon which the dealer to base calculations for reasonable compensation.

    Amends GS 20-305.1(b3) to specify that without knowledge or the ready availability of knowledge of a purchaser or lessee's intent to export a vehicle to a foreign country or resell the vehicle to a third party, a dealer located in this state is protected from adverse action or threats of adverse action from a manufacturer. Also makes it unlawful for a manufacturer to take any adverse action against a dealer located in this state because the dealer failed to ensure that a purchaser or lessee paid personal property tax on the vehicle purchased or leased. Clarifies what actions constitute adverse action and discrimination (was, conduct) under this section.

    Makes a conforming change to GS 20-305.1(c). Clarifies that compensation, or the withholding of compensation or chargeback of other compensation or support to which a dealer would otherwise be entitled is stayed while waiting for a determination by the Commissioner as to the outcome of the dispute. 

    Includes a severability clause to provide that if any provisions of the proposed act or its application are held to be invalid, the invalidity does not affect other provisions or applications that can be given effect without the invalid provisions or applications.

    Except as otherwise indicated, applies to all current and future franchises and other agreements in existence between any new motor vehicle dealer located in this state and a manufacturer or distributor as of the effective date of this act. Effective when the act becomes law. 


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