HB 406 North Carolina House · 2025-2026 Session

Clarify Motor Vehicle Dealer Laws.

HB 406, titled "Clarify Motor Vehicle Dealer Laws," revises regulations affecting motor vehicle manufacturers and dealerships. The bill makes it unlawful for manufacturers to unreasonably prevent the transfer or sale of a dealership, or to condition such approvals on requirements like facility construction or granting a right of first refusal. It also prohibits manufacturers from considering an applicant's past legal actions against other manufacturers or prior denials by other manufacturers when evaluating a dealership transfer. Additionally, the bill stipulates that manufacturers cannot terminate or cancel a dealer's franchise without demonstrating good cause and good faith, with the franchise remaining in effect during the Commissioner's review process.
Bill status passed 3 of 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
Governor
Introduced Mar 13, 2025 Last action May 5, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Edition 1 Edition 2 · 4 edits
MODERATE
This bill amendment updates the formatting and adds specific language clarifying manufacturer obligations when terminating dealer franchises. The changes ensure manufacturers must meet notice requirements before failing to renew a dealer franchise, providing clearer protections for licensed dealers.
REQUIREMENT

Added language requiring manufacturers to satisfy notice requirements before terminating, canceling, or failing to renew a licensed new motor vehicle dealer franchise.

TECHNICAL

Removed incomplete text fragment 'to ter' from the franchise termination clause.

Added page header information and version markers (H406-v-2) to the document.

Removed original sponsor information and committee referral details from the header section.

Floor votes · House May 1, 2025

How they voted

1081
Passed · 12 other
Total votes 121
May 1, 2025
D Democratic46
40 Yea 1 Nay 5
86% Yea
I Independent2
2 Yea
100% Yea
R Republican73
66 Yea 7
90% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
16
Key actions
3
Committee
5
May 5, 2025
Committee
Ref To Com On Rules and Operations of the Senate
upper
May 1, 2025
Lower · Passed
Passed 3rd Reading
lower
Apr 29, 2025
Lower · Passed
Reptd Fav
lower
Apr 9, 2025
Committee
Re-ref Com On Rules, Calendar, and Operations of the House
lower
Apr 9, 2025
Lower · Passed
Reptd Fav Com Substitute
lower
Mar 17, 2025
Committee
Ref to the Com on Transportation, if favorable, Rules, Calendar, and Operations of the House
lower
Mar 13, 2025
Introduced
Filed
lower
2 primary · 13 co-sponsors

Sponsors