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).