GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017

S                                                                                                                                                     2

SENATE BILL 413

Commerce and Insurance Committee Substitute Adopted 4/20/17

Short Title:      Clarify Motor Vehicle Dealer Laws.	(Public)
Sponsors:
Referred to:

March 29, 2017

A BILL TO BE ENTITLED

AN ACT to clarify motor vehicle dealers and manufacturers licensing laws.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 20‑288(a1)(2) reads as rewritten:

"(2)      Proof that the applicant, within the last 12 months, has completed a 12‑hour licensing course approved by the Division if the applicant is seeking an initial license and a six‑hour course approved by the Division if the applicant is seeking a renewal license. The requirements of this subdivision do not apply to a used motor vehicle dealer the primary business of which is the sale of salvage vehicles on behalf of insurers or to a manufactured home dealer licensed under G.S. 143‑143.11 who complies with the continuing education requirements of G.S. 143‑143.11B. The requirement of this subdivision does not apply to persons age 62 or older as of July 1, 2002, who are seeking a renewal license. This subdivision also does not apply to an applicant who holds a license as a new motor vehicle dealer as defined in G.S. 20‑286(13) and operates from an established showroom 20 miles or less fromlocated in an area within a radius of 30 miles around the location of the established showroom for which the applicant seeks a used motor vehicle dealer license. An applicant who also holds a license as a new motor vehicle dealer may designate a representative to complete the licensing course required by this subdivision."

SECTION 2.  Article 3 of Chapter 20 of the General Statutes is amended by adding a new section to read:

"§ 20‑101.3.  Conspicuous disclosure of dealer shop and other service‑related fees.

(a) Requirement. – A motor vehicle dealer shall not charge shop fees in conjunction with service work performed by the dealer or other discretionary fees relating to environmental or regulatory compliance, record retention, or other costs incurred by the dealer in conjunction with service work performed by the dealer, whether or not the fees are attributable to or include the dealer's internal overhead or profit, unless the dealer complies with both of the following requirements:

(1) The dealer shall post a conspicuous notice in the service area of the dealership measuring at least 24 inches on each side informing customers that fees regulated by this section may or will be charged and that customers should inquire of dealership personnel if they would like to know the type and amount or basis of the fees charged by the dealer.

(2) The total amount of all fees regulated by this section shall be disclosed on the customer's repair order or repair invoice. Nothing in this subdivision shall be construed as requiring a dealer to list separately each fee charged by the dealer.

(b) Discretion. – Notwithstanding any provision of law to the contrary, a dealer is not required to charge a shop or other service‑related fee regulated under this section and may reduce the amount of any or all fees charged."

SECTION 3.  Section 1 of this act is effective when it becomes law and applies to all current and future franchises and other agreements in existence between any new motor vehicle dealer located in this State and a manufacturer or distributor as of the effective date of this act. Section 2 of this act becomes effective January 1, 2018, and applies to fees charged on or after that date. The remainder of this act is effective when it becomes law.