House committee substitute amends the 1st edition as follows.

Makes technical changes to the study required of the Division of Motor Vehicles (DMV) relating to mobile drivers licenses and mobile special identification cards. 

Eliminates the proposed changes to GS 20-7, which (1) authorized the DMV to disclose a drivers license applicant’s Social Security number to the State Board of Elections to verify voter registration data and (2) increased the duration of a drivers license for a person between the ages of 18-66 from eight years to sixteen years.

Makes the proposed changes to GS 20-43.1, regarding the disclosure of personal information in motor vehicle records, effective July 1, 2023, rather than the date the act becomes law.

Deletes the proposed changes to GS 20-63 (relating to DMV commission contracts) GS 20-66 (relating to renewal of vehicle registrations) GS 20-85 (relating to various motor vehicle fees), and the proposed repeal of GS 20-85.1 (relating to registration renewals by mail and one-day title services/fees).

Makes the proposed changes to GS 20-42, regarding fees permitted for DMV officers and employees' acknowledgement of signatures, effective July 1, 2023, rather than the date the act becomes law. 

Amends the proposed changes to GS 20-63.02, specifying that DMV staff appointed by the Commissioner of Motor Vehicles (Commissioner) to the License Plate Agent Advisory Commission are ex officio members (was, all members appointed by the Commissioner, reflecting the new provisions which require the Commissioner to also appoint two contractors).

Amends new GS 20-84(b1) to authorize the DMV (was, Commissioner) to require proof of eligibility for a permanent plate and revoke any permanent plates issued that do not meet the eligibility requirements. 

Amends the proposed changes to GS 20-79.2, specifying that plates issued to dealers and repair facilities, or businesses contracting to take a vehicle to or from an auction, cannot be used on a vehicle that is towing or transporting the vehicle authorized to be operated with the transporter plate.

Regarding the directed study of alternative material for the manufacture of registration plates by the Department of Transportation (DOT), requires consultation with the Department of Adult Correction rather than the Department of Public Safety. 

Replaces the proposed changes to GS 20-347(d) regarding disclosure requirements on transfers of motor vehicle titles. Now exempts vehicles that are a model year 2010 or older (current law exempts vehicles 10 years or older, while the previous edition exempted vehicles 20 years old or older). Adds a new exemption for vehicles that are a model year 2011 or newer which are transferred at least 20 years after January 1 of the calendar year corresponding to its designated model year.

Deletes the proposed changes to GS 20-49.1 (relating to the supplemental police authority of DMV officers); GS 20-79 (relating to dealer license plates); GS 20-87 (relating to passenger vehicle registration fees); GS 20-288 (relating to motor vehicle dealer licensing); and GS 20-289 (relating to motor vehicle dealer licensing fees).

Revises the proposed changes to GS 20-79.1 to no longer make it a Class I felony to violate GS 20-211(6) with regard to a temporary registration plate or marker.

Replaces the substantive provisions of new GS 20-79.1B with the following. Requires the DMV, by January 1, 2024, to implement a statewide print-on-demand temporary registration plate system for on-demand printing of temporary registration plates with vehicle owner information electronically associated and transferred to the DMV, in lieu of those issued under GS 20-79.1 and GS 20-50(b). Requires contracting with a qualified vendor who meets described experience criteria, after consultation with the specified stakeholders, to develop and implement the system. Establishes minimum standards, specifying contracting requirements and limitations as well as the costs, and lists required elements of the system, including the ability of dealers to directly connect to the system for issuance. Provides for a secure procedure to obtain plate materials from a registered distribution or the DMV, with the DMV required to register two distributors in the State as specified. Requires all motor vehicle dealers and other entities that issue at least five temporary registration plates annually to exclusively use the print-on-demand temporary registration plate system for issuance of all such plates to vehicle owners and lessees, beginning October 1, 2024. Authorizes the DMV to adopt implementing rules. 

Makes a technical change to the proposed changes to GS 143-341 relating to the Department of Administration's powers and duties. 

Amends proposed GS 20-131(d1) to require modified headlamps to comply with the identified Federal Motor Vehicle Safety Standard.

Makes a technical change to the proposed changes to GS 1-105 relating to service upon nonresident drivers.

Amends GS 44A-4 to allow the DMV to issue notice of asserted lien and proposed sale of a motor vehicle to the person having legal title to the property by certified mail, and that person to notify the DMV of their desire for a hearing to contest the sale, by certified mail with electronic tracking as an alternative to the existing required notices by certified mail, return receipt requested. Adds that in lieu of the notice and payment of the fee by the lienor to the DMV and the notices issued by the DMV, the lienor is permitted to issue notice pursuant to the same notice requirements by certified mail, return receipt requested, or certified mail with electronic tracking to the person having legal title to the property, which is deemed to have the same effect as if the DMV sent the notice (previously, allowed for the lienor to issue the notice in lieu of the other notices, but did not specify sending requirements and did not explicitly deem such notice to have the same effect as that of the DMV). Similarly, allows the DMV to issue notice of asserted lien and proposed sale property other than a motor vehicle to the person having legal title to the property and the person with whom the lienor dealt if different by certified mail, and that person to notify the DMV of their desire for a hearing to contest the sale, by certified mail with electronic tracking as an alternative to the existing required notices by certified mail, return receipt requested.

Enacts GS 66-201.1, requiring rental car companies to make a good-faith effort to ensure that any vehicle license and registration fees collected do not exceed the actual costs incurred by the rental car company to license, title, inspect, and register rental vehicles. Requires any amounts collected in excess of the actual amounts of its costs incurred to be retained and applied to the costs incurred in the next calendar year for licensing, titling, inspecting, and registering rental vehicles, with the good faith estimate of any vehicle license and registration fees to be charged for the next calendar year to be reduced by the excess amount collected from the prior year. Repeals identical existing language in the definition of vehicle license and registration fees set forth in GS 66-201(8). Defines rental vehicles to include all vehicles of the cargo type; excludes vehicles used to transport commercial freight or which require the operator to possess a commercial license. Effective October 1, 2023.

Amends GS 20-4.01 to define notarization and signature, applicable to the motor vehicle laws of GS Chapter 20, to include remote electronic notarization electronic signature technology, as described. Amends GS 20-72 to permit execution of motor vehicle title assignments or transfers in a manner that conforms with Article 40, GS Chapter 66, governing electronic signature technology. Enacts GS 20-292.2 to allow the Chapter's signature requirements to be satisfied using electronic signature technology that conforms to Article 40, GS Chapter 66, and the Chapter's notarization requirements to be satisfied using a remote electronic notarization that conforms to Article 2, GS Chapter 10B, or those recognized by GS 10B-20(f) or GS 10B-40(e). Requires the DMV to accept electronic submission of documents by dealers which meet these requirements. Effective July 1, 2023.

Amends GS 20-79.1, extending the time period within which dealers must deliver registration plate applications and fees to the DMV after issuance of a temporary registration plate or marker from 30 days to 60 days. Deems temporary plates expired 60 days (was, 30 days) from the date of issuance. Makes conforming changes throughout to refer to a 60-day period rather than a 30-day period. Effective July 1, 2023. 

Changes headings throughout.

Amends GS 20-4.01 effective July 1, 2025, by adding new definition mobile drivers license which means a supplemental digital version of a valid drivers license that (1) is approved by the Commissioner, (2) is issued by the Division of Motor Vehicles, (3) is comprised of the same data elements as are found on a valid drivers license, and (iv) is capable of, and limited to, being linked to, and displayed by a mobile device owned by the person to whom the valid drivers license is issued. Requires the Division of Motor Vehicles (DMV) of the North Carolina Department of Transportation (Department) to study and provide a plan for implementing mobile drivers’ licenses and mobile special identification cards. Requires DMV to report its findings and recommendations to the NCGA, and specified NCGA committee chairs and division by no later than January 1, 2024.

Amends GS 20-7 (pertaining to issuance and renewal of driver’s licenses) as follows. Adds disclosure of an applicant’s social security number to the State Board of Elections to verify voter registration data as an additional circumstance where the DMV is authorized to disclose a driver’s license applicant’s social security number. Increases the duration of a driver’s license for a person between the ages of 18-66 from eight years to sixteen years. Makes conforming changes. Effective October 1, 2023.

Enacts new subsection (m1) to GS 20-7 authorizing the Commissioner to issue a mobile driver’s license as a supplemental license upon request of a valid license holder. Specifies that a mobile driver’s license should be treated as the legal equivalent of a valid license.  Effective July 1, 2025. 

Amends GS 20-17.8 (a1) (ignition interlocks) to expand the scope of persons required to agree to ignition interlock restrictions to include persons whose licenses were revoked for felony or misdemeanor death by vehicle (except for a person engaged in impaired driving), felony serious injury by vehicle, aggravated felony serious injury by vehicle, aggravated felony death by vehicle, and repeat felony death by vehicle offender. Effective December 1, 2023, and applies to offenses committed on or after that date. 

Amends GS 20-43.1 (disclosure of personal information in motor vehicle records) to enact new subsection (c1) permitting the DMV to adopt rules restricting disclosure of personal information about any person who is a current or former federal or state judicial officer, to the extent permitted under federal law.  Amends GS 20-43.1(e1) to increase fee for disclosure of certain records from $1to $5per individual record.

Amends GS 20-63.1 (pertaining to reflectorized registration plates) by removing (1) DMV’s obligation to develop standards for reflectivity that use the most current technology available while maintaining a competitive bid process and (2) mandatory replacement of plates every seven years.

Amends GS 20-63 (pertaining to commission contracts for plates, registration certificates and certificates of title) to expand scope of DMV offices authorized to issue these documents through commission contracts to all DMW offices in within the state. (Currently, exempts Wake, Cumberland, and Mecklenburg DMV offices.) Effective October 1, 2023.

Repeals GS 20-85.1 (pertaining to registration renewals by mail and one-day title services/fee) and incorporates those matters into GS 20-85 and GS 20-66 as described below. Effective October 1, 2023.

Amends GS 20-66 (pertaining to renewal of vehicle registrations) to permit renewal of registration by mail.  Effective October 1, 2023.

Amends GS 20-85 (setting forth fee schedule pertaining to certificates of title, registration cards, and motor vehicle plates) by adding a $105.75 fee for each application for a certificate of title prepared and delivered using a one-day title service. Designates an additional 20 cents from that fee to be credited to the Mercury Pollution Prevention Fund (this provision is repealed effective June 30, 2031). Increases the amount of certain fees credited to the North Carolina Highway Fund from $1.00 to $2.00 of each fee imposed, including the one-day titling fee. Effective October 1, 2023. 

Amends GS 20-42 to increase the acknowledgement of signature fees from $2 to $6 for one signature; $3 to $7 for two signatures, and $4 to $8 for three or more signatures.

Amends GS 20-63.02(b) to change the composition of the License Plate Agent (LPA) Advisory Commission as follows: (1) reduces the number of persons appointed by the North Carolina Association of Motor Vehicle Registration Contractors (Association) from six to four (and those appointees must now be members of the Association); and (2) now allows the Commissioner to appoint two individuals who are contractors but not members of the Association. (Number of staff appointees remain the same.) Sets term limit of two consecutive terms.

Amends GS 20-84,pertaining to permanent registration plates, as follows. Deletes GS 20-84(b)(6) and (10) (listing motor vehicles owned by an incorporated emergency rescue squad and rural fire department, agency, or association, respectively). Incorporates those provisions into new GS 20-84(b)(21), which authorizes permanent registration plates for those same entities so long as the entity can establish that the entity (1) is listed in the Emergency Medical Services (EMS) System Plan in the county to which the entity provides services, (2) maintains an active provider number issued by the North Carolina Office of EMS, and (3) actively provides first responder services to a county, city, or town in the State. Authorizes the Commissioner to require proof eligibility of any vehicle that may apply for a permanent registration plate, with power to revoke any permanent plates issued to an entity that does not meet those requirements.

Amends GS 20-79.2 (pertaining to transporter plates) as follows. Bars plates issued to a business or a dealer from being used to deliver truck cabs or bodies manufactured, constructed, or rebuilt in another state. Specifies that transporter plates can only be issued to a financial institution that has a recorded lien on a vehicle located in North Carolina. (Currently, just requires a recorded lien on a motor vehicle.) Specifies that plates issued to a dealer or repair facility to pick up and deliver a motor vehicle that is to be repaired can only authorize the operation of the vehicle to be repaired. Specifies that plates issued to a dealer or a business that contracts with a dealer and has a business privilege license to take a motor vehicle either to or from a motor vehicle auction where the vehicle will be or was offered for sale can only authorize operation of the vehicle offered for sale.  Adds requirement that a vehicle must both be registered and titled (was, registered) in the State for transporter plates related to driving older vehicle to a parade or other public event; sets limit of number of plates issued to a person for that purpose to two.   

Requires the DMV, in consultation with the Department of Public Safety (DPS) to study the use of alternative materials for manufacturing the registration plates issued by the DMV. Requires the DMV to report its findings and any legislative recommendations to the NCGA, specified NCGA Committee chairs, and division by January 1, 2024.

Amends GS 20-347 (pertaining to disclosure requirements specified on the title in connection with the transfer of the motor vehicle) to increase the older vehicle exemption from the disclosure requirements from vehicles older than 10 years to 20 years.

Amends GS 20-79.5 (pertaining to special registration plates for elected and appointed State government officials) to add provision authorizing multiple plates with the same numeric designation. Directs DMV on how to differentiate multiple plates.  

Amends GS 20-49.1 (pertaining to supplemental police authority of DMV officers) to increase the scope of when officers have the authority to enforce criminal laws to when they have probable cause to believe that a criminal act had immediately occurred, or is in the process of occurring, on physical property owned, operated, or maintained by either the North Carolina Department of Transportation or the DMV, or property operated as a  license plate agency for and overseen and regulated by the DMV. (Currently, just probable cause to believe that a person has committed a criminal act in their presence.) Deletes language only authorizing police authority when, at the time of the violation they are engaged in the enforcement of laws otherwise within their jurisdiction. Adds additional emergency authorization for officers to exercise police power when an emergency exists and response by DMV personnel could not protect life and property. Specifies that when officers are providing temporary assistance at the request of the head of State or a local law enforcement agency/designee that the DMW officers will be considered an officer of the State (currently, not an officer, employee or agent of the State), but with the same law enforcement authority of the local law enforcement agency/designee asking for assistance. (Currently does not have that same enforcement authority.) 

Amends GS 20-79 (dealer license plates) to increase number of months a dealer must be licensed to obtain dealer plates from 12 months to 24 months. Makes conforming changes to table demonstrating permitted the maximum dealer plates based on number of vehicles sold in 24-month period. (Currently, looks at number of vehicles sold in 12-month period) Makes a conforming doubling of  the amount of vehicles that must be sold for each category of maximum number of plates. Makes additional conforming changes.

Amends GS 20-87 (pertaining to passenger vehicle registration fees) to increase fees for private passenger vehicles of not more than 15 passengers from $36.00 to $38.75 and for those vehicles holding over 15 passengers from $40.00 to $43.25. Increases dealer plate fee for passenger vehicles to double the regular fee for each of the first 5 plates issued and the regular fee for any others beyond those initial five. (Currently, dealer fee is regular fee for first 5 plates and half of regular fee for any others.)

Amends GS 20-288 (pertaining to licensures for motor vehicle dealers) as follows. Amends subsection (a1) (licensure requirements for used motor vehicle dealers) as follows. Increases the course requirement to two 12-hour courses within the last 24 months for initial applicants and two 6-hour courses for renewals (currently, one 12-hour (initial applicant) or 6-hour (renewal applicant) course in a 12-month period). Extends licensure period from one year to two years. Permits corporate surety to give notice of nonrenewal of surety bond by certified mail or electronically if the license holder has consented to electronic delivery of notice. (Currently, must give notice by delivery or certified mail.) 

Amends GS 20-289 to increase license fees for motor vehicle dealers/distributors/distributor branches and wholesalers ($97.00 to $115.00), manufacturers ($210.25 to $420.50 and to $260 from $130 for each factory branch), sales representatives ($21.50 to $25.00), and factory/distributor representatives ($21.50 to $43.00). Effective October 1, 2023, and applies to plates issued, fees paid, or applications submitted on or after that date.

Amends GS 20-79.1 (pertaining to use of temporary plates in lieu of dealer plates) as follows. Notwithstanding any provision of GS 20-111 to the contrary, makes violation of subdivision (2) (involving the improper display or possession of a registration card, certificate of title or registration number plate knowing it is invalid for specified reasons) or (6) (prohibiting giving, lending, selling, or obtaining a certificate of title in order to use it for any purpose other than the registration, sale, or other use in connection with the vehicle for which the certificate was issued)of GS20-111  punishable as a Class I felony (currently class 3 misdemeanor and class 2 misdemeanors, respectively). Effective December 1, 2023, and applies to offenses committed on or after that date.

Enacts new GS 20-79.1B (pertaining to print-on-demand temporary registration plates) as follows. Authorizes the DMV to develop and implement procedures necessary for issuance of temporary license plates by dealers to vehicle owners, using print-on-demand technology. Requires all dealers licensed on or after the effective date of the program to to purchase and issue only print-on-demand temporary license plates, if DMV decides to implement such a program. Bars DMV from imposing a requirement relating to the minimum number of sets of temporary plates that must be purchased by a dealer pursuant to a print-on-demand temporary license plate program. Except as otherwise provided in this section, specifies that print-on-demand temporary license plates issued pursuant to GS 20-79.1B are subject to all conditions and limitations set forth Article 3 of GS Chapter 20 except as otherwise provided by the new section. Effective January 1, 2024. Authorizes DMV to adopt rules relating to print-on-demand temporary plates prior to effective date.

Amends GS 143-341 (powers and duties related to general services) to increase scope of those powers and duties related to the central motor fleet to permit the DMV to own and maintain custody and control over a fleet of vehicles used in specialized investigative operations. Specifies the vehicles may be received, titled, transferred, or sold as deemed appropriate by the Commissioner.

Amends GS 20-131 (pertaining to headlamp and auxiliary driving lamp requirements) to require that any headlamp installed on a vehicle after initial manufacture of the vehicle to comply with Federal Motor Vehicle Safety Standard (FMVSS) 108.

Updates GS 1-105 (service of process upon nonresident drivers of motor vehicles or personal representatives of deceased nonresident drivers) as follows. Makes terms gender neutral. Makes technical and clarifying changes. Increases service of process fee from $10 to $20. Enacts new subsection pertaining to service of process upon a defendant in a place not within the United States. Requires the Commissioner to require a deposit of $100 and delivery by private carrier with proof of actual delivery to the defendant. Effective July 1, 2023, and applies to service upon nonresident drivers on and after that date.