North Carolina 2019-2020 Session Status: Enacted 4 R cosponsors

SB 384 — Clarify Motor Vehicle Dealer Laws.

Last action — Signed by Gov. 7/19/2019

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 27, 2019. Enacted.

Prognosis

Likely to advance 82% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 8 sponsors

    0 primary, 8 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (4 R).

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

22 added · 23 removed

Plain-language change summary

The latest version of SB 384 clarifies the definition of "special tools" as essential equipment required for servicing vehicles sold by manufacturers. This change is important because it ensures that dealers understand which tools they are obligated to purchase and that these tools are specifically designed for the vehicles they service, making it easier for smaller dealers to comply without unnecessary financial burden. Additionally, the bill prevents manufacturers from pressuring dealers to buy tools and equipment that are not essential for vehicle maintenance or repair, promoting fairer business practices within the industry.

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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 SENATE BILL 384 RATIFIED BILL AN ACT TO CLARIFY VARIOUS MOTOR VEHICLE DEALER LAWS.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 SESSION LAW 2019-125 SENATE BILL 384 AN ACT TO CLARIFY VARIOUS MOTOR VEHICLE DEALER LAWS.
Eligible special tools exceed a cost of two thousand dollars ($2,000) per special tool, are easily and readily transportable, and would be *S384-v-4* utilized for service on less than 10 vehicles per month at the requesting dealer's dealership.
Eligible special tools exceed a cost of two thousand dollars ($2,000) per special tool, are easily and readily transportable, and would be *S384-v-5* utilized for service on less than 10 vehicles per month at the requesting dealer's dealership.
Page 2 Senate Bill 384-Ratified "(38) Notwithstanding the terms, provisions, or conditions of any agreement, franchise, novation, waiver, or other written instrument, to assign or change a franchised new motor vehicle dealer's area of responsibility under the franchise arbitrarily or without due regard to the present or projected future pattern of motor vehicle sales and registrations within the dealer's market and without having provided the affected dealer with written notice of the change in the dealer's area of responsibility and a detailed description of the change in writing by registered or certified mail, return receipt requested.
Page 2 Session Law 2019-125 Senate Bill 384 "(38) Notwithstanding the terms, provisions, or conditions of any agreement, franchise, novation, waiver, or other written instrument, to assign or change a franchised new motor vehicle dealer's area of responsibility under the franchise arbitrarily or without due regard to the present or projected future pattern of motor vehicle sales and registrations within the dealer's market and without having provided the affected dealer with written notice of the change in the dealer's area of responsibility and a detailed description of the change in writing by registered or certified mail, return receipt requested.
Within 60 days of the conclusion of a requested mediation process, or, if a mediationprocesshasnotbeentimelyrequestedunderthissubdivision,within Senate Bill 384-Ratified Page 3 days of receivingnotice from the manufacturer, factorybranch, distributor, or distributor branch of the manufacturer's rejection, in whole or in part, of the dealer's request for the elimination of the contested territory from the dealer's area of responsibility, a dealer may file a petition and have an evidentiary hearingbeforetheCommissioneras providedin G.S.
Within 60 days of the conclusion of a requested mediation process, or, if a mediationprocesshasnotbeentimelyrequestedunderthissubdivision,within Senate Bill 384 Session Law 2019-125 Page 3 days of receivingnotice from the manufacturer, factorybranch, distributor, or distributor branch of the manufacturer's rejection, in whole or in part, of the dealer's request for the elimination of the contested territory from the dealer's area of responsibility, a dealer may file a petition and have an evidentiary hearingbeforetheCommissioneras providedin G.S.
Page 4 Senate Bill 384-Ratified i.
Page 4 Session Law 2019-125 Senate Bill 384 i.
(ii) do not consider available relevant and material local, State, State and regional Senate Bill 384-Ratified Page 5 criteria, data, and facts.
(ii) do not consider available relevant and material local, State, State and regional Senate Bill 384 Session Law 2019-125 Page 5 criteria, data, and facts.
"(52) To prohibit or to in any way unreasonably limit or restrict a dealer from offering for sale over the Internet, including online e-commerce marketplaces, parts and accessories obtained by the dealer from the manufacturer, factory branch, distributor, or distributor branch, or from anysource recommended or approved by the manufacturer, factory branch, distributor, or distributor Page 6 Senate Bill 384-Ratified branch.
"(52) To prohibit or to in any way unreasonably limit or restrict a dealer from offering for sale over the Internet, including online e-commerce marketplaces, parts and accessories obtained by the dealer from the manufacturer, factory branch, distributor, or distributor branch, or from anysource recommended or approved by the manufacturer, factory branch, distributor, or distributor Page 6 Session Law 2019-125 Senate Bill 384 branch.
In the event a manufacturer, factory branch, distributor, or distributor Senate Bill 384-Ratified Page 7 branch elects to perform an audit conducted for cause, the manufacturer, factory branch, distributor, or distributor branch, simultaneously with providing the affected dealer with written notice of the audit, shall further be required to explain in detail in the notice the data or other foundation upon which the cause is based.
In the event a manufacturer, factory branch, distributor, or distributor Senate Bill 384 Session Law 2019-125 Page 7 branch elects to perform an audit conducted for cause, the manufacturer, factory branch, distributor, or distributor branch, simultaneously with providing the affected dealer with written notice of the audit, shall further be required to explain in detail in the notice the data or other foundation upon which the cause is based.
and (iii) the dealer is not required to allow the manufacturer or distributor or Page 8 Senate Bill 384-Ratified any third party to have direct access to is either permitted to restrict the data fields that may be accessed in the dealer's dealer management computer system, but or the dealer is instead permitted to provide the same dealer, consumer, or customer data or information specified bythe manufacturer or distributor by timelyobtaining and pushing or otherwise furnishing the required data in a widely accepted file format such as comma delimited in accordance with subsection (g1) of this section.
and (iii) the dealer is not required to allow the manufacturer or distributor or Page 8 Session Law 2019-125 Senate Bill 384 any third party to have direct access to is either permitted to restrict the data fields that may be accessed in the dealer's dealer management computer system, but or the dealer is instead permitted to provide the same dealer, consumer, or customer data or information specified bythe manufacturer or distributor by timelyobtaining and pushing or otherwise furnishing the required data in a widely accepted file format such as comma delimited in accordance with subsection (g1) of this section.
Senate Bill 384-Ratified Page 9 … (b1) Notwithstanding the terms of any contract or agreement with a dealer management computersystem vendor orthirdparty, forpurposes ofthis subsection,thedealer's datacontained in or on a dealer management computer system owned, leased, or licensed by a dealer located in this State is the property of the dealer.
Senate Bill 384 Session Law 2019-125 Page 9 … (b1) Notwithstanding the terms of any contract or agreement with a dealer management computersystem vendor orthirdparty, forpurposes ofthis subsection,thedealer's datacontained in or on a dealer management computer system owned, leased, or licensed by a dealer located in this State is the property of the dealer.
Page 10 Senate Bill 384-Ratified b.
Page 10 Session Law 2019-125 Senate Bill 384 b.
(3) Fail to provide the dealer with the option and ability to securely obtain and push or otherwise distribute specified dealer data within the dealer's dealer management computer system to any third party instead of the third party Senate Bill 384-Ratified Page 11 receiving the dealer data directly from the dealer's dealer management computer system vendor or providing the third party direct access to the dealer's dealer management computer system.
(3) Fail to provide the dealer with the option and ability to securely obtain and push or otherwise distribute specified dealer data within the dealer's dealer management computer system to any third party instead of the third party Senate Bill 384 Session Law 2019-125 Page 11 receiving the dealer data directly from the dealer's dealer management computer system vendor or providing the third party direct access to the dealer's dealer management computer system.
"(d) Any In order to prevent injury or harm to all or a substantial number of its members or to prevent injury or harm to the franchise distribution system of new motor vehicles within this State, any association that is comprised of a minimum of 400 new motor vehicle dealers, or a minimum of 10 motorcycle dealers or recreational vehicle dealers, substantially all of whom are new motor vehicle dealers located within North Carolina, and which represents the collective interests of its members, shall have standing to intervene as a party in any civil or administrative Page 12 Senate Bill 384-Ratified proceeding in anyof the courts or administrative agencies of this State, or to file a petition before the Commissioner or a civil action or cause of action in any court of competent jurisdiction for itself, or on behalf of any or all of its members, seeking declaratory and injunctive relief.
"(d) Any In order to prevent injury or harm to all or a substantial number of its members or to prevent injury or harm to the franchise distribution system of new motor vehicles within this State, any association that is comprised of a minimum of 400 new motor vehicle dealers, or a minimum of 10 motorcycle dealers or recreational vehicle dealers, substantially all of whom are new motor vehicle dealers located within North Carolina, and which represents the collective interests of its members, shall have standing to intervene as a party in any civil or administrative Page 12 Session Law 2019-125 Senate Bill 384 proceeding in anyof the courts or administrative agencies of this State, or to file a petition before the Commissioner or a civil action or cause of action in any court of competent jurisdiction for itself, or on behalf of any or all of its members, seeking declaratory and injunctive relief.
– Every manufacturer, manufacturer branch, distributor, or distributor branch of new motor vehicles, or any affiliate or subsidiary thereof, Senate Bill 384-Ratified Page 13 which manufactures or distributes new motor vehicles with a gross vehicle weight rating of 16,000 pounds or more shall compensate its new motor vehicle dealers located in this State for the cost of special tools, equipment, and training for which its dealers are liable when the applicable manufacturer, manufacturer branch, distributor, or distributor branch sells a portion of its vehicle inventory to converters and other nondealer retailers.
– Every manufacturer, manufacturer branch, distributor, or distributor branch of new motor vehicles, or any affiliate or subsidiary thereof, Senate Bill 384 Session Law 2019-125 Page 13 which manufactures or distributes new motor vehicles with a gross vehicle weight rating of 16,000 pounds or more shall compensate its new motor vehicle dealers located in this State for the cost of special tools, equipment, and training for which its dealers are liable when the applicable manufacturer, manufacturer branch, distributor, or distributor branch sells a portion of its vehicle inventory to converters and other nondealer retailers.
20-288, or to be licensed by the Division as a Page 14 Senate Bill 384-Ratified motor vehicle dealer, provided that this section shall not be construed to prohibit any of the following:
20-288, or to be licensed by the Division as a Page 14 Session Law 2019-125 Senate Bill 384 motor vehicle dealer, provided that this section shall not be construed to prohibit any of the following:
Senate Bill 384-Ratified Page 15 c.
Senate Bill 384 Session Law 2019-125 Page 15 c.
At the time the manufacturer, factory branch, distributor, distributor branch, or subsidiary or affiliate thereof first acquires ownership or assumes operation or control with respect to any such dealership, the distance between the dealership thus owned, operated, or controlled Page 16 Senate Bill 384-Ratified and the nearest other new motor vehicle dealership trading in the same line make of vehicle, is no less than 35 miles;
At the time the manufacturer, factory branch, distributor, distributor branch, or subsidiary or affiliate thereof first acquires ownership or assumes operation or control with respect to any such dealership, the distance between the dealership thus owned, operated, or controlled Page 16 Session Law 2019-125 Senate Bill 384 and the nearest other new motor vehicle dealership trading in the same line make of vehicle, is no less than 35 miles;
If the applicant does not currently hold a motor vehicle dealer license issued by the Division, the Commissioner determines, after an Senate Bill 384-Ratified Page 17 evidentiary hearing, that the applicant qualifies under one or more of the exceptions to the prohibition against the issuance of a motor vehicle dealer license to any manufacturer, factory branch, factory representative, distributor, distributor branch, or distributor representative provided in G.S.
If the applicant does not currently hold a motor vehicle dealer license issued by the Division, the Commissioner determines, after an Senate Bill 384 Session Law 2019-125 Page 17 evidentiary hearing, that the applicant qualifies under one or more of the exceptions to the prohibition against the issuance of a motor vehicle dealer license to any manufacturer, factory branch, factory representative, distributor, distributor branch, or distributor representative provided in G.S.
EFFECTIVE DATE Page 18 Senate Bill 384-Ratified SECTION 13.
EFFECTIVE DATE Page 18 Session Law 2019-125 Senate Bill 384 SECTION 13.
Hise Presiding Officer of the Senate s/ Tim Moore Speaker of the House of Representatives _____________________________________ Roy Cooper Governor Approved __________.m.
Hise Presiding Officer of the Senate s/ Tim Moore Speaker of the House of Representatives s/ Roy Cooper Governor Approved 1:27 p.m.
this ______________ day of ___________________, 2019 Senate Bill 384-Ratified Page 19
this 19 day of July, 2019 Senate Bill 384 Session Law 2019-125 Page 19
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How this bill changes current law

4 changes Share ↗

Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill clarifies definitions and provisions regarding the rights and obligations of motor vehicle dealers and manufacturers concerning tools, area responsibility, and vendor selection.

  • G.S. 20-286

    (15a) Special tool or essential tool. – A tool designed by the manufacturer or distributor and not readily available from another source that is utilized for the purpose of performing service repairs on a motor vehicle sold by a manufacturer or distributor to its franchised new motor vehicle dealers in this State.

    Introduces a new definition for 'special tool' essential for vehicle repairs, clarifying tools necessary for dealership operations.

  • G.S. 20-305(9)

    Notwithstanding the terms or conditions of any franchise or other agreement, in lieu of purchasing or leasing any special tools required by any manufacturer, factory branch, distributor, or distributor branch, a dealer may share access to special tools with other dealers; provided, however, that (i) all the participating dealers have franchises with the same manufacturer, factory branch, distributor, or distributor branch, (ii) the participating dealers share access to the special tools pursuant to a written agreement executed by all of the participating dealers which lists with specificity all of the special tools to be shared, (iii) all of the participating dealers are located within a 75-mile radius of one another, and (iv) the sharing of tools will not unreasonably delay completion of repairs.

    Allows dealers to share special tools with other dealers under certain conditions, reducing individual costs for smaller dealers.

  • G.S. 20-305(46)

    For purposes of this subdivision, the term 'goods' does not include moveable displays, brochures, and promotional materials containing material subject to the intellectual property rights of a manufacturer or distributor, or special tools or parts as reasonably required by the manufacturer, or parts manufacturer to be used in repairs under warranty obligations of a manufacturer or distributor.

    Excludes certain promotional materials and specified tools from the definition of 'goods', providing clarity on vendor requirements.

  • G.S. 20-305(38)

    A franchised new motor vehicle dealer who believes that a manufacturer, factory branch, distributor, or distributor branch with whom the dealer has entered into a franchise has assigned or changed the dealer's area of responsibility, is proposing to assign or change the dealer's area of responsibility arbitrarily or without due regard to the present or projected future pattern of motor vehicle sales and registrations within the dealer's market, or failed to provide the dealer with the notice required under this subdivision may file a petition within 60 days of receiving notice of a manufacturer, factory branch, distributor, or distributor branch's proposed assignment or change to the dealer's area of responsibility and have an evidentiary hearing before the Commissioner as provided in G.S. 20-301(b) contesting the franchised new motor vehicle dealer's assigned area of responsibility.

    Strengthens protections for dealers against arbitrary changes to their area of responsibility by enabling them to contest such changes through a petition.

Action History

  1. Signed by Gov. 7/19/2019

  2. Ch. SL 2019-125

  3. Pres. To Gov. 7/9/2019

  4. Ratified

  5. Concurred In H Com Sub

  6. Ordered Enrolled

  7. Special Message Received For Concurrence in H Com Sub

  8. Passed 2nd Reading

  9. Passed 3rd Reading

  10. Special Message Sent To Senate

  11. Reptd Fav

  12. Cal Pursuant Rule 36(b)

  13. Placed On Cal For 06/27/2019

  14. Reptd Fav Com Substitute

  15. Re-ref Com On Rules, Calendar, and Operations of the House

  16. Withdrawn From Com

  17. Re-ref to the Com on Transportation, if favorable, Rules, Calendar, and Operations of the House

  18. Passed 1st Reading

  19. Ref To Com On Rules, Calendar, and Operations of the House

  20. Regular Message Sent To House

  21. Regular Message Received From Senate

  22. Passed 2nd Reading

  23. Passed 3rd Reading

  24. Reptd Fav

  25. Reptd Fav Com Substitute

  26. Com Substitute Adopted

  27. Re-ref Com On Commerce and Insurance

  28. Reptd Fav

  29. Re-ref Com On Rules and Operations of the Senate

  30. Withdrawn From Com

  31. Re-ref to Judiciary. If fav, re-ref to Commerce and Insurance. If fav, re-ref to Rules and Operations of the Senate

  32. Passed 1st Reading

  33. Ref To Com On Rules and Operations of the Senate

  34. Withdrawn From Com

  35. Re-ref to Commerce and Insurance. If fav, re-ref to Judiciary. If fav, re-ref to Rules and Operations of the Senate

  36. Filed

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

0 sponsors · 8 co-sponsors · 171 not signed on

Sponsors (0)

None.

Co-sponsors (8)

Not signed on (171)

171 members have not signed on to this bill.

Show all 171 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Motion 9 To Concur

Passed 42 Yea · 0 Nay · 8 Other
Party YeaNayPresentNot Voting
Democratic 7001
Unaffiliated 24004
Republican 11000
Total 42005
% of votes cast 89%0%0%11%
How each member voted (47)
Member Party Vote
deViere — Yea
Fitch — Yea
Foushee — Yea
Marcus — Yea
McKissick — Yea
Nickel — Yea
Peterson — Yea
Searcy — Yea
Smith — Yea
VanDuyn — Yea
Woodard — Yea
Ballard — Yea
J. Davis — Yea
Edwards — Yea
Gunn — Yea
Harrington — Yea
Horner — Yea
Krawiec — Yea
Newton — Yea
Perry — Yea
Steinburg — Yea
Tillman — Yea
Wells — Yea
Bishop — Not Voting
Gallimore — Not Voting
Johnson — Not Voting
D. Davis — Yea
J. Jackson — Not Voting
Dan Blue Democratic Yea
Gladys A. Robinson Democratic Yea
Jay J. Chaudhuri Democratic Yea
Joyce Waddell Democratic Yea
Michael Garrett Democratic Yea
Mujtaba A. Mohammed Democratic Yea
Paul A. Lowe, Jr. Democratic Yea
Tracy Clark Democratic Not Voting
Bill Rabon Republican Yea
Brent Jackson Republican Yea
Carl Ford Republican Yea
Danny Earl Britt, Jr. Republican Yea
Norman W. Sanderson Republican Yea
Phil Berger Republican Yea
Ralph Hise Republican Yea
Tom McInnis Republican Yea
Vickie Sawyer Republican Yea
W. Ted Alexander Republican Yea
Warren Daniel Republican Yea

Official roll call →

Second Reading

Passed 110 Yea · 1 Nay · 9 Other
Party YeaNayPresentNot Voting
Democratic 24001
Unaffiliated 53106
U 2000
Republican 31002
Total 110109
% of votes cast 92%1%0%8%
How each member voted (120)
Member Party Vote
Autry — Yea
Beasley — Yea
Black — Yea
Brewer — Yea
Clemmons — Yea
Farmer-Butterfield — Yea
Fisher — Yea
Garrison — Yea
Gill — Yea
Harris — Yea
Holley — Yea
Hunt — Yea
Hunter — Yea
Insko — Yea
Jackson — Yea
Lucas — Yea
Martin — Yea
Montgomery — Yea
Queen — Yea
Richardson — Yea
Russell — Yea
Terry — Yea
vonHaefen — Yea
Wray — Yea
Boles — Yea
Bumgardner — Yea
Carter — Yea
Cleveland — Yea
Conrad — Yea
Davis — Yea
Dobson — Yea
Elmore — Yea
Faircloth — Yea
Fraley — Yea
Grange — Yea
Hardister — Yea
Horn — Yea
Hurley — Yea
Lewis — Yea
McElraft — Yea
McGrady — Yea
McNeill — Yea
Moore — Yea
Presnell — Yea
Rogers — Yea
Saine — Yea
Sasser — Yea
Szoka — Yea
Yarborough — Yea
Zachary — Yea
Speciale — Nay
L. Johnson — Not Voting
Floyd — Not Voting
Gailliard — Not Voting
Graham — Not Voting
Henson — Not Voting
Murphy — Not Voting
C. Smith — Yea
K. Smith — Yea
R. Smith — Yea
Allison A. Dahle Democratic Yea
Amos L. Quick, III Democratic Yea
Becky Carney Democratic Yea
Brandon Lofton Democratic Yea
Brian Turner Democratic Yea
Brian Turner Democratic Yea
Carolyn G. Logan Democratic Yea
Cecil Brockman Democratic Not Voting
Cynthia Ball Democratic Yea
Dante Pittman Democratic Yea
Deb Butler Democratic Yea
Eric Ager Democratic Yea
Gale Adcock Democratic Yea
Garland E. Pierce Democratic Yea
Graig Meyer Democratic Yea
Joe John Democratic Yea
Marcia Morey Democratic Yea
Mary Belk Democratic Yea
Pricey Harrison Democratic Yea
Robert T. Reives, II Democratic Yea
Shelly Willingham Democratic Yea
Sydney Batch Democratic Yea
Terence Everitt Democratic Yea
Tracy Clark Democratic Yea
Zack Hawkins Democratic Yea
Bobby Hanig Republican Yea
Brenden H. Jones Republican Yea
Chris Humphrey Republican Yea
Dean Arp Republican Yea
Dennis Riddell Republican Yea
Destin Hall Republican Yea
Donna McDowell White Republican Yea
Donny Lambeth Republican Yea
Edward C. Goodwin Republican Yea
Frank Iler Republican Yea
Harry Warren Republican Yea
Hugh Blackwell Republican Yea
Jay Adams Republican Yea
Jimmy Dixon Republican Yea
John A. Torbett Republican Yea
John R. Bell, IV Republican Yea
John Sauls Republican Yea
Julia C. Howard Republican Yea
Keith Kidwell Republican Yea
Kelly E. Hastings Republican Yea
Kevin Corbin Republican Not Voting
Kyle Hall Republican Yea
Larry C. Strickland Republican Yea
Larry W. Potts Republican Yea
Lisa S. Barnes Republican Yea
Mark Brody Republican Yea
Mitchell S. Setzer Republican Yea
Phil Shepard Republican Yea
Sarah Stevens Republican Yea
Stephen M. Ross Republican Yea
Steve Jarvis Republican Yea
W. Ted Alexander Republican Not Voting
William D. Brisson Republican Yea
Carla D. Cunningham U Yea
Nasif Majeed U Yea

Official roll call →

Subjects

transportation technology
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 384?
SB 384 is sponsored by Danny Earl Britt, Jr. (Republican), Warren Daniel (Republican), Horner, Vickie Sawyer (Republican), Woodard, D. Davis, and Brent Jackson (Republican).
What is the current status of SB 384?
This bill has been enacted into law. Introduced March 27, 2019. Enacted.
Where can I track SB 384?
Track SB 384 free on One Click Politics — get push/email alerts when it moves.

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