North Carolina legislation · 2025-2026 Session
North Carolina H406: Clarify Motor Vehicle Dealer Laws.
Status: In committee, May 5, 2025
What the bill says
An act to clarify various motor vehicle dealer laws.
From the introduced text:
A BILL TO BE ENTITLED AN ACT TO CLARIFY VARIOUS MOTOR VEHICLE DEALER LAWS. The General Assembly of North Carolina enacts: PREVENT UNFAIR DEALER FRANCHISE TERMINATIONS AND CLARIFY RV DEALER TERMINATION ASSISTANCE RIGHTS SECTION 1. G.S. 20-305 reads as threatening to cancel franchise; preventing transfer of ownership; granting additional franchises; terminating franchises without good cause; preventing family succession. It shall be unlawful for any manufacturer, factory branch, distributor, or distributor branch, or any field representative, officer, agent, or any representative whatsoever of any of them: ... (4) Notwithstanding the terms of any franchise agreement, to prevent or refuse to approve the sale or transfer of the ownership of a dealership by the sale of the business, stock transfer, or otherwise, or the transfer, sale or assignment of a dealer franchise, or a change in the executive management or principal operator of the dealership, change in use of an existing facility to provide for the sales or service of one or more additional line-makes of new motor vehicles, or relocation of the dealership to another site within the dealership's relevant market area, if the Commissioner has determined, if requested in writing by the dealer within 30 days after receipt of an objection to the proposed transfer, sale, assignment, relocation, or change, and after a hearing on the matter, that the failure …
Sponsors
- Jones, Brenden H. (R, 46) · primary sponsor
- Tyson, Steve (R, 3) · primary sponsor
- Ross, Stephen M. (R, 63) · primary sponsor
- Arp, Dean (R, 69)
- Branson, Jerry (R, 59)
- Hastings, Kelly E. (R, 110)
- Iler, Frank (R, 17)
- Jackson, Neal (R, 78)
- Johnson, Todd (R, 35)
- McNeely, Jeffrey C. (R, 84)
- Paré, Erin (R, 37)
- Penny, Howard (R, 53)
Latest actions
- : Ref To Com On Rules and Operations of the Senate
- : Passed 1st Reading
- : Regular Message Received From House
- : Regular Message Sent To Senate
- : Passed 3rd Reading
- : Passed 2nd Reading
- : Placed On Cal For 05/01/2025
- : Withdrawn From Cal
- : Placed On Cal For 04/30/2025
- : Cal Pursuant Rule 36(b)
Votes
- Clarify Motor Vehicle Dealer Laws. Second Reading (May 1, 2025): 107 yea, 1 nay, passed
Subjects: RETAILING, COMMERCE, PUBLIC, TRANSPORTATION, FRANCHISES, CORPORATIONS, FOR-PROFIT, MOTOR VEHICLES
Common questions
- What is H406?
- H406 is a bill in the North Carolina Legislature (2025-2026 Session): Clarify Motor Vehicle Dealer Laws.
- What does H406 do?
- In its own words: An act to clarify various motor vehicle dealer laws.
- What is the status of H406?
- In committee as of May 5, 2025. Latest action: Ref To Com On Rules and Operations of the Senate (May 5, 2025).
- Who sponsored H406?
- Jones, Brenden H. (R, 46), with 11 co-sponsors.
- Where is the official record for H406?
- On the North Carolina Legislature website: https://www.ncleg.gov/BillLookUp/2025/H406
Source: official North Carolina record. Tracked by Delilah, AI for legislation across all 50 states and Congress.