Bill Summary for H 448 (2023-2024)
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AN ACT TO REQUIRE TIMELY NOTICE TO MOTOR VEHICLE DEALERS AND MANUFACTURERS OF POTENTIAL VIOLATIONS OF CERTAIN MOTOR VEHICLE LAWS, TO CLARIFY THE LAW GOVERNING THE CONDITIONAL DELIVERY OF MOTOR VEHICLES, AND TO REQUIRE PUBLICATION OF NOTICE OF CERTAIN MOTOR VEHICLE DEALER LICENSE APPLICATIONS.Intro. by B. Jones, Ross, Wray.
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Identical to S 357, filed 3/22/23.
Amends GS 20-296 to require the Division of Motor Vehicles (DMV) to provide notice to motor vehicle dealer, used motor vehicle dealer, motor vehicle sales representative, manufacturer, factory branch, factory representative, distributor, distributor branch, distributor representative, or wholesaler licensees within 10 business days after it learns of possible violations under Chapter 20 or rules adopted under that chapter. Requires a finding that notice was timely given and that a violation occurred before imposition of any penalty under the chapter. Permits the DMV to issue written warnings and engage in settlement agreements and consent orders prior or subsequent to any hearing held on violations of Chapter 20 or rules under that chapter. Prohibits issuing a written waring unit a written notice of the complain has been furnished to the licensee and a hearing has been held. Changes to this section are effective October 1, 2023 and apply to violations on or after that date.
Amends GS 20-75.1 (Conditional delivery of motor vehicles) to delete the requirement that a dealer inform the purchaser’s insurance provider on the day of the purchase, or the next business day after the purchaser secures financing and the manufacturer’s certificate of origin or the certificate of title is executed, if the insurer is not open that day. Replaces the deleted requirement with a new procedure where the dealer executes the manufacturer’s certificate of origin or the certificate of title, and the purchaser or lessee is responsible for informing their insurer that the purchaser’s/lessee’s financing has been approved. Clarifies that the purchaser or lessee is solely responsible for paying for insurance on the vehicle and the dealer is not responsible for the purchaser’s/lessee’s failure to obtain insurance.
Amends GS 20-288(a)(1) to create new subsubdivision a1., adding to the requirements that must be met before DMV can issue a vehicle dealer license to an applicant who has indicated that the applicant or its parent, subsidiary affiliate, or other related entity is a manufacturer, factory branch, factory representative, distributor, distributor branch, or distributor representative. Now adds the requirement that the DMV to publish notice in the Carolina Register whenever it receives an application for a motor vehicle dealer license from a manufacturer, factory branch, factory representative, distributor, distributor branch, or distributor representative. Establishes the required contents of that notice, including identifying which of the specific exceptions to the prohibition of dealer licenses for those entities that the applicant contends it qualifies under. Also amends the conditions to be met to specify that the hearing held by the DMV on the application must be no earlier than 30 days after the application notice is published in the Carolina Register. Makes a clarifying change from submission to receipt in subdivision (a)(2) of that section. Changes to GS 20-288 are effective on July 1, 2023, and apply to applications submitted after that date.