A new bill filed by Sen. Lazzara seeks to amend motor vehicle dealer laws to clarify franchise termination rules and dealer compensation requirements in North Carolina, according to the North Carolina State Senate.
The bill, filed as SB 295 on March 13 during the 2025 regular session, was formally listed with the short title: ‘Clarify Motor Vehicle Dealer Laws.’
The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.
In essence, this bill aims to amend North Carolina motor vehicle dealer laws by clarifying regulations surrounding franchise terminations, dealer compensation, ownership transfers, and other dealership operations. It prohibits manufacturers from terminating franchises without good cause and mandates compensation for unsold inventory upon termination. The bill requires manufacturers to pay franchisees 20% of gross compensation from sales of over-the-air motor vehicle products. It also defines selling activities and clarifies dealership succession processes. Additionally, it ensures reimbursement for loaner vehicles and establishes guidelines for warranty service compensation. Severability and an immediate effective date apply to current and future agreements.
A related bill, HB 406, was also filed in the North Carolina House, introduced by Rep. Brenden H. Jones (and two others) on March 13, 2025.
Of the three sponsors of this bill, Lazzara proposed the most bills (17) during the 2025 regular session.
Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.
You can read more about the bills and other measures here.
Lazzara, a Republican, was elected to the North Carolina State Senate in 2021 to represent the state’s 6th Senate district, replacing previous state senator Harry Brown.
| Authors | Bill Number | Date Filed | Title |
|---|---|---|---|
| Michael A. Lazzara, Brent Jackson, and Vickie Sawyer | SB 295 | 03/13/2025 | Clarify Motor Vehicle Dealer Laws. |
| Michael A. Lazzara, Danny Earl Britt, Jr., and Todd Johnson | SB 265 | 03/11/2025 | Protecting Our Community Act. |
| Michael A. Lazzara, Todd Johnson, and Warren Daniel | SB 248 | 03/06/2025 | Birth Certificates for Persons Adopted. |
| Michael A. Lazzara, Bob Brinson, and Buck Newton | SB 245 | 03/05/2025 | The Rakim Shackleford Embalming Fluid Act. |
| Michael A. Lazzara, Lisa S. Barnes, and Todd Johnson | SB 226 | 03/03/2025 | Align Benefits for Firefighters with Cancer. |
| Michael A. Lazzara and Brent Jackson | SB 183 | 02/26/2025 | Funds for VSO in Jones County. |
| Michael A. Lazzara | SB 188 | 02/26/2025 | Financial Support to NC4ME. |
| Michael A. Lazzara, Benton G. Sawrey, and Vickie Sawyer | SB 172 | 02/25/2025 | STIP Grant Anticipation Notes. |
| Michael A. Lazzara, Benton G. Sawrey, and Todd Johnson | SB 128 | 02/21/2025 | Heroes Homestead Act. |
| Michael A. Lazzara, Vickie Sawyer, and Warren Daniel | SB 118 | 02/18/2025 | Reduce Veteran CCW Fee/Expand CCW Notice. |
| Michael A. Lazzara | SB 106 | 02/17/2025 | Funds/Onslow Water and Sewer Authority. |
| Michael A. Lazzara, Benton G. Sawrey, and Michael V. Lee | SB 109 | 02/17/2025 | Veterans Appreciation Act. |
| Michael A. Lazzara, Eddie D. Settle, and Vickie Sawyer | SB 113 | 02/17/2025 | Removal of Squatters from Private Property. |
| Michael A. Lazzara, Eddie D. Settle, and Timothy D. Moffitt | SB 71 | 02/11/2025 | Expedited Removal of Unauthorized Persons. |
| Michael A. Lazzara | SB 73 | 02/11/2025 | Richlands Occupancy Tax Authorization. |
| Michael A. Lazzara, Bill Rabon, and Vickie Sawyer | SB 63 | 02/06/2025 | Board of Motor Vehicles/Authority Study. |
| Michael A. Lazzara | SB 29 | 01/30/2025 | Onslow – Delegate Rezoning Authority. |
