NC S631

Expands the definition of "motor vehicle repair" to explicitly include software updates and clarifies that companies offering virtual, digital, or internet-enabled repairs, updates, or software updates are motor vehicle repair shops.

Prohibits motor vehicle manufacturers, factory branches, distributors, and subsidiaries from owning, operating, or controlling motor vehicle dealers or entities providing warranty service, repairs, or updates at retail (whether physical, virtual, or digital) in North Carolina.

Requires manufacturers and distributors providing physical, mechanical warranty repairs or software updates directly to vehicles in the state to compensate franchised dealers reasonably and equally to amounts specified in G.S. 20-305.1 when dealer participation is required.

Allows dealers to use electronic signature technology that conforms to North Carolina law to facilitate and execute loaner, demonstrator, rental, and test drive agreements and forms.

Exempts new and used vehicles from mandatory inspection if previously inspected by an affiliated dealership or dealerships with common ownership within 180 days of sale or 300 miles of recorded mileage.

Becomes effective October 1, 2021.