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NC H406

Bill

Status

Engrossed

5/5/2025

Primary Sponsor

Brenden Jones

Click for details

Origin

House of Representatives

2025-2026 Session

AI Summary

  • Prohibits manufacturers from terminating dealer franchises based on sales/service performance unless the manufacturer provided sufficient vehicle inventory for the dealer to meet performance criteria during the entire review period

  • Requires manufacturers to compensate dealers at least 20% of gross receipts from over-the-air sales of vehicle accessories, upgrades, or features sold to customers within 12 months of vehicle purchase, with monthly reporting of such sales

  • Expands RV dealer termination assistance to cover motorized and nonmotorized trailers (travel trailers, slide-in truck campers, park models) and increases the mileage threshold for recreational vehicle motor homes from 1,500 to 2,500 miles

  • Prohibits manufacturers from requiring dealers to accept vehicles with open recalls, missing parts, stop sale orders, or vehicles not delivered within 90 days of claimed shipment date

  • Requires manufacturers to fully reimburse dealers for loaner/rental vehicle costs including taxes and third-party fees, with claims allowed in 30-day increments when repairs are delayed due to manufacturer parts or information delays

Legislative Description

Clarify Motor Vehicle Dealer Laws

Public

Last Action

Ref To Com On Rules and Operations of the Senate

5/5/2025

Committee Referrals

Rules and Operations of the Senate5/5/2025
Rules, Calendar, and Operations of the House4/9/2025
Transportation3/17/2025

Full Bill Text

No bill text available