SB 438 - Motor Vehicle Dealers and Manufacturers Licensing Law

• Increases distance exemption from licensing course requirements for new motor vehicle dealers operating multiple showrooms from 1 mile to 20 miles from established location.

• Requires license applicants and renewals to certify familiarity with North Carolina motor vehicle dealer laws and commit to compliance with applicable regulations.

• Grants Commissioner authority to resolve franchise disputes between dealers and manufacturers through petition process, with decisions binding and subject to court review.

• Prohibits manufacturers from charging dealers more than $5,000 in fees, merchandise, or equipment without 10 days' written notice; dealers may dispute charges through Commissioner petition or civil action.

• Expands protections for franchised dealers including restrictions on forced signage requirements, restrictions on requiring manager/personnel changes, warranty compensation standards, and protections for dealer management system data and customer information.

• Establishes dealer right to return unsold parts after 15 months from automated ordering systems within 60 days, with no restocking fees.

• Effective date: Most provisions effective upon enactment; Section 6 (fair market value calculation for franchise termination) effective January 1, 2014.