Bill Summary for S 385 (2019-2020)

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Summary date: 

Jun 25 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
Senate Bill 385 (Public) Filed Wednesday, March 27, 2019
Intro. by B. Jackson.

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Bill summary

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

Further amends GS 20-287 to no longer exempt licensed manufacturers, factory branches, distributors, or distributor branches from motor vehicle dealer licensing requirements and fees. Regarding the proposed authorization for sales representatives whose license is pending to engage in supervised activities, more specifically requires the applicant to be actively and directly supervised by a licensed motor vehicle dealer or a licensed sales representative designated by the dealer (previously, did not require a designated representative). Additionally requires the applicant to certify that the applicant has not been previously denied a sales representative license for any dealer or have a felony conviction. Establishes licenses issued to a motor vehicle dealer, manufacturer, factory branch, factory representative, distributor, distributor branch, distributor representative, or wholesaler is not transferable.

Enacts GS 20-219.5 to establish immunity for motor vehicle dealers and their owners, shareholders, officers, employees, and agents who arrange to provide, provide, or make available to a vehicle purchaser, lessee, or other person any third party motor vehicle history report, so long as any error, omission, or inaccuracy is not based on information provided directly to the preparer of the third party report by that dealer. Defines third party motor vehicle history report to mean any information prepared by a party other than the dealer relating to vehicle ownership or titling history, liens on the vehicle, vehicle service, maintenance and repair history, vehicle condition, or vehicle accident or collision history. 

Modifies the proposed changes to GS 20-306 to expand the scope of the statute to include sales representative licensure applicants engaged in supervised activities while the application is pending pursuant to GS 20-287, as amended (previously, specified supervised sales representatives who had submitted license applications). Adds to the statute, now allowing a motor vehicle dealer to offer valuable consideration to a person not licensed under the Article for the referral of a customer to the dealer. Limits consideration paid by the motor vehicle dealer to $250 in value per referral and limits the person receiving the consideration to five referral payments from the motor vehicle dealer in the same calendar year. 

Enacts GS 20-298.1 to establish that a motor vehicle dealer that does not market or extend to a covered borrower a loan or credit transaction covered by specified federal law is not in violation of GS 127-11 (which prohibits private discrimination against military personnel) or otherwise with respect to all transactions entered into on or after October 3, 2016, regardless of whether the motor vehicle dealer markets or extends the loan or credit transaction to other persons who are not covered borrowers. Defines covered borrower by cross-reference to federal law. 

Amends GS 20-52.1 and GS 20-72, concerning motor vehicle title transfers, to also allow a manager of a dealership to sign the certification to the Division of Motor Vehicles (DMV) regarding the payment of perfected liens on the vehicle and that the motor vehicle dealer was unable to obtain the vehicle's original or certificate of title (previously, limited to the dealer principal, general manager, general sales manager, controller, or owner). Amends GS 20-72.1 to eliminate the time periods specified for requesting duplicate titles for the sale of new and used vehicles. Regarding a purchaser's option to elect to receive liquidated damages due to a dealer's failure to deliver the manufacturer's statement of origin or certificate of title, clarifies that the provisions do not prohibit a motor vehicle dealer who pays liquidated damages or other consideration to a vehicle purchaser or lessee from obtaining a release from the purchaser or lessee for any other damages or liability arising out of or related to the sale or lease of the vehicle. Authorizes licensed motor vehicle dealers to sell or transfer a vehicle when the manufacturer's statement of origin or an existing certificate of title is unavailable and the sale or transfer is to a current lessee of the motor vehicle regardless of payment of any residual amount or payoff amount for the vehicle made to the lessor who holds legal title at the time of the sale or transfer. Makes the liquidated damages requirements and sworn certification requirements inapplicable to a motor vehicle sold or transferred to the current lessee of the motor vehicle. 

Amends GS 20-79.1 to allow second 30-day temporary registration plates to be issued by a dealer upon  showing the vehicle has been sold or leased and the dealer is unable to obtain the vehicle's statement of origin or certificate of title using due diligence to perfect the lien (previously, required a temporary lien to be filed, and did not provide for showing the vehicle has been leased).

Eliminates the proposed changes to GS 20-288, which added new requirements for applications for new motor vehicle dealer licenses. 

Eliminates proposed GS 20-2, which established that any rule, change in law, or other action applicable to motor vehicles sold or leased by a motor vehicle dealer only applies to sales or leases made on or after the effective date of changes, regardless of the date of submission of a title and registration application for the motor vehicle to the DMV.