OMNIBUS DMV BILL.

View NCGA Bill Details2021
House Bill 650 (Public) Filed Thursday, April 22, 2021
AN ACT TO MAKE MULTIPLE CHANGES TO MOTOR VEHICLE LAWS.
Intro. by B. Jones, Iler, Shepard.

Status: Ch. SL 2021-134 (Sep 2 2021)

Bill History:

H 650/S.L. 2021-134

Bill Summaries:

  • Summary date: Sep 3 2021 - More information

    AN ACT TO MAKE MULTIPLE CHANGES TO MOTOR VEHICLE LAWS. SL 2021-134. Enacted Sept. 4, 2021. Effective Oct. 1, 2021, except as otherwise provided.


  • Summary date: Aug 19 2021 - More information

    Senate amendments to the 3rd edition makes the following changes. 

    Section 3

    Senate amendment #1 further amends GS 20-30(6), expanding the exceptions provided to allow a federally insured depository institution or its affiliates to create, store, or receive, in the ordinary course of business, a color image of a driver's license, learner's permit, or special identification card of a consumer (currently limited to black and white photocopy by law). 

    Section 4.5

    Amendment #2 adds a new section as follows. Amends GS 20-79.4(a2), which provides parameters for the issuance of special registration plates based upon military service. Allows a surviving spouse of a person who had a special plate issued under the terms of subsection (a2) to continue to renew the plate, subject to annual verification that the surviving spouse has not remarried. Makes clarifying changes. Eliminates the more specific provision under subdivision (b)(195), allowing issuance of prisoner of war registration plates to surviving spouses of persons who had a prisoner of war plate at their time of death so long as the surviving spouse continues to renew the plate and does not remarry. Applies to registration plates issued or renewed on or after December 1, 2021. 

    Section 6.3

    Senate amendment #1 amends the proposed changes to GS 20-58.4, which requires the Division of Motor Vehicles (DMV) to treat the release of a security interest in a manufactured home upon satisfaction or other discharge as a proper release. No longer allows for a commission contractor of the DMV, as an alternative to the DMV, to send notice to the last known address of the secured party before cancellation of a security interest pursuant to the statute. 

    Section 8

    Senate amendment #1 changes the effective date of the proposed changes to GS 20-58.4A, regarding the DMV's implementation of a statewide electronic lien and title system to process the notification, release, and maintenance of security interests and certificate of title data. Makes the provisions effective January 15, 2022 (was, October 1, 2021), and applicable to contracts with qualified vendors and service providers entered into by the DMV pursuant to that statute on or after that date.


  • Summary date: Aug 9 2021 - More information

    Senate committee substitute to the 2nd edition makes the following changes. 

    Amends the changes to GS 20-287, eliminating the proposed affirmative defense to penalties for violations by persons required to obtain a license who have not obtained a license if the person promptly applies for and is issued the appropriate license.

    Revises the proposed changes to the grounds for denial or disciplinary action of licensees by the Division of Motor Vehicles (DMV) set forth in GS 20-294. Maintains rather than modifies as grounds for denial or disciplinary action (1) making (was, knowingly making) a material misstatement in an application for a license and (2) making (was, knowingly making) a material misstatement in an application for a dealer license plate. Permits responsible persons, including officers, directors, and sales representative licensees (previously, permitted officers, directors, members, and sales representative licensees) to be charged individually for actively and knowingly participating in the giving of an incorrect certificate of title or failing to give a certificate of title to a purchaser, a lienholder, or the DMV after the vehicle is sold. 

    Deletes the proposed changes to various sections of GS Chapters 20 and 150B regarding the transfer of vehicle dealer license and safety and emissions inspection hearings to the Office of Administrative Hearings (OAH). Instead directs the DMV to study the feasibility of transferring such hearings to OAH and sets out ten required components for the study, including (1) providing a five-year history of hearings conducted by the DMV, (2) identifying associated personnel requirements for the hearings, (3) providing an itemized estimate of the costs of the hearings, (4) providing new procedures for administering the hearings if transferred, and (5) providing a plan for implementing the transfer of hearings. Requires the DMV to report to the specified NCGA committee and division by January 31, 2022. 

    Revises the proposed changes to GS 20-58.3A and GS 20-58.4 relating to security interests on certificates of title for manufactured homes. Now adds that a commission contractor of the DMV is not subject to a claim or cause of action related to the renewal or release of the perfection of a security interest if the claim is based on reliance on a submitted application or documents evidencing release or satisfaction, or the automatic expiration of a perfection of a security interest pursuant to the respective statute (previously, made contractors not subject to claims under Article 31, GS Chapter 143, Tort Claims against State Departments and Agencies). Amends the proposed changes to GS 20-58.4, which requires the DMV to treat  the release of a security interest in a manufactured home upon satisfaction or other discharge as a proper release. Now prohibits cancellation of a security interest if the secured party files an objection within 15 days after the notice was sent (no longer specifically prohibiting the DMV from cancelling the security interest). 

    Makes the proposed changes to GS 20-58.4A, regarding the DMV's implementation of a statewide electronic lien system to process the notification, release, and maintenance of security interests and certificate of title data, applicable to contracts with qualified vendors and service providers entered into by the DMV pursuant to that statute on or after October 1, 2021. 

    Adds the following new content, subject to the act's effective date of October 1, 2021. 

    Amends GS 20-16.2, GS 20-17.8, and GS 20-19, postponing the effective date of driver's license revocations from the tenth to the thirteenth calendar day after the mailing of the revocation order, applicable to revocations due to refusing chemical analysis or violating restrictions imposed upon licenses restored for driving while impaired. Effective October 1, 2021, and applies to notifications of revocations mailed by the DMV on or after that date. 

    Amends GS 20-183.4C to create a new exception from the inspection requirement applicable to used vehicles before a dealer can offer them for sale, excepting used vehicles offered for sale by an auctioneer pursuant to the judgment or order of any court, on behalf of receivers, trustees, administrators, executors, guardians, governmental entities, or other persons, appointed by or acting under a judgment or order of any court. 

    Authorizes the Department of Transportation (DOT) to manage and procure information technology goods and services, and contract for up to five information technology projects for the DMV system modernization, and exempts such projects from the Department of Information Technology's oversight and requirements. Projects authorized include electronic services, mail intake, handling, and management systems and practices. Directs DOT to notify DIT of the nature and scope of such projects undertaken, and to report to the specified NCGA committees and division within 30 days of contracting for a project undertaken. 

    Amends SL 2021-24, which allows for a person who is at least 16 and less than 18 years old to obtain a limited provisional license after holding a limited learner's permit for at least six rather than 12 months. Extends the sunset of the session law from December 31, 2021, to December 31, 2022. 


  • Summary date: May 5 2021 - More information

    House committee substitute to the 1st edition makes the following changes. 

    Makes organizational changes. 

    Further amends GS 20-287, modifying the conditions under which an applicant for a motor vehicle sales representative license can engage in activities as a sales representative while the application is pending to more specifically require that the applicant certify in the application that the applicant has not previously been denied a sales representative license for any dealer by the Division of Motor Vehicles (DMV) on nonprocedural grounds (previously, required to certify any denial). Makes clarifying changes to the new provisions providing an affirmative defense to penalties for violations by persons required to obtain a license who have not obtained a license if the person promptly applies for and is issued the appropriate license. Specifies that the DMV must issue the appropriate license to a person acting in a specific licensed activity (previously, required the person acting in a specific licensed activity to be issued the appropriate license for that activity). 

    Revises the proposed changes to the grounds for denial or disciplinary action of licensees by the DMV set forth in GS 20-294. Now permits rather than requires responsible persons, including officers, directors, and sales representative licensees, to be charged individually for the following grounds, if they actively and knowingly participated in the unlawful activity: (1) willfully and intentionally failing to comply with Articles 12 or 15, or the specified motor vehicle laws, or (2) knowingly giving an incorrect certificate of title or failing to give a certificate of title to a purchaser, a lienholder, or the DMV after the vehicle is sold. 

    Amends GS 14-86.1 to update a statutory cross-reference, since recodified.

    Amends GS 20-295 to permit an applicant to commence a contested case (was, petition for a hearing with the Office of Administrative Hearings) under GS Chapter 150B within 30 days of the DMV's denial of an application.

    Adds to the new provisions of GS 20-296, which requires the DMV to notify the licensee of proposed disciplinary action by certified mail and participate in informal settlement procedures pursuant to GS Chapter 150B prior to taking any disciplinary action on a license. Now entitles that other interested parties are entitled to receive notice of, attend, and participate in informal settlement procedures. 

    Makes further conforming changes to GS 150B-1.

    Adds to and revises the proposed changes to GS 20-30(6). Now prohibits making a color copy or color reproduction of a drivers license, learner's permit, or special identification card (no longer also requiring that the card has been color copied or reproduced in color), unless authorized by law or by the Commissioner of Motor Vehicles. Now allows a licensed motor vehicle dealer, in addition to a licensed lender, to create, store, or receive, in the ordinary course of business, a color image of a driver's license, learner's permit, or special identification card of a borrower or loan applicant.

    Revises the terminology used in the proposed changes to GS 20-109.2, GS 20-58.3A, and GS 20-58.4, relating to manufactured homes, to refer to a "commission contractor of the DMV," rather than a "DMV license plate contractor."

    Revises and adds to the proposed changes to GS 20-58.4, which provides for the release of a security interest in a motor vehicle upon satisfaction or other discharge, to require rather than permit the DMV to treat either authorized method used by the owner of a manufactured home as a proper release of a security interest pursuant to the statute when the DMV is satisfied as to truth and sufficiency. Now prohibits cancellation of a security interest if the secured party files an objection within 15 days after the notice was sent, no longer providing for a stay of cancellation until the secured party consents or receives a court order directing the DMV to cancel the security interest (similar to current law). Makes further clarifying changes.

    Adds uncodified language directing the DMV to create a form for use by its employees, agents and commission contractors in the cancellation, release, or renewal of a security interest in a manufactured home and the surrender of title of a manufactured home, and publish the form on its website and make the form publicly available by December 1, 2021. 

    Deletes the proposed elimination of the December 1, 2020, sunset provision of Section 3 of SL 2020-77, which allows for electronic signatures for applications for security interest notations by a debtor and does not require specified documentation for applications submitted by a secured party.

    Instead amends GS 20-58(a)(2) to allow for electronic signatures for applications for security interest notations by a debtor if the application is submitted by a licensed or regulated lender in the State having a lienholder identification number issued by the DMV.

    Eliminates the proposed changes to GS 20-285 to include the protection and preservation of the investments and properties of licensed motor vehicle businesses in the State to the stated public policy. 


  • Summary date: Apr 22 2021 - More information

    Amends GS 20-287, which governs the licensure of new motor vehicle dealers, used motor vehicle dealers, motor vehicle sales representatives, manufacturers, factory branches, factory representatives, distributors, distributor branches, distributor representatives, and wholesalers. No longer limits sales representatives to one license. Requires the sales representative license to show the name of each dealer or wholesaler employing the representative. Expands the Division of Motor Vehicles' (DMV) authority to levy and collect a civil penalty of up to $1,000 per violation of specified statutes and rules relating to the sale of vehicles, vehicle titling, or vehicle registration, to make applicants for licenses in addition to licensees subject to the authority. Requires the penalty to be assessed against a sales representative applicant unless the DMV finds that a dealership, owner, manager, or officer had knowledge of the violation before the application was submitted to the DMV. Regarding penalties for violations by persons required to obtain a license who have not obtained a license, establishes an affirmative defense if the person promptly applies and is issued the appropriate motor vehicle license. Clarifies that a person acting in a specific licensed activity must be issued the appropriate license for that activity. Requires the investigative report of the violation to be considered in the issuance of any license. Makes clarifying and technical changes. 

    Makes the following changes to the grounds for denial or disciplinary action of licensees by the DMV set forth in GS 20-294. Specifies that the DMV's disciplinary authority must comply with GS 20-295 and GS 20-296, as amended, which govern license applications and disciplinary hearings. Now provides for knowingly making a material misstatement in an application for a license or a dealer license plate as grounds for denial or disciplinary action (previously did not require mens rea). Provides an affirmative defense to the following grounds, exclusive to the dealer licensee, that the violation is a result of fraud, theft, or embezzlement against the licensee, with waiver of the defense if any violation charged created an unrecoverable loss for a citizen or another licensed motor vehicle dealer of the state: (1) willfully and intentionally failing to comply with Articles 12 or 15, or the specified motor vehicle laws or (2) knowingly giving an incorrect certificate of title or failing to give a certificate of title to a purchaser, a lienholder, or the DMV after the vehicle is sold. Adds to these two grounds that officers, directors, members, and sales representative licensees must be charged individually. Expands the ground of willfully defrauding any retail buyer or other person to specifically include willfully defrauding any wholesale buyer to the buyer's damage. Modifies the ground regarding use of unfair methods of competition or unfair or deceptive acts or practices to condition the ground on the act causing actual damages to the buyer. Finally, establishes an affirmative defense to the following ground, which operates as a stay, if the person charged is determined to qualify and obtains expunction, certificate of relief, or pardon, or if the conviction is vacated, with the violation dismissed if relief is granted: conviction of an offense under GS 20-106 (since recodified to GS 14-71.2, receiving or transferring stolen vehicles), GS 20-106.1 (fraud in connection of rental of motor vehicles), GS 20-107 (injuring or tampering with vehicle), or GS 20-112 (making false affidavit perjury) while holding a license or within five years preceding the date of application, or conviction of any felony involving moral turpitude.

    Replaces the provisions of GS 20-299(a), which governs disciplinary action of corporate licensees. Now authorizes the DMV to deny or take disciplinary action against a license issued to a business entity if more than 50% of the business entity ownership engaged in conduct prohibited by GS 20-294, as amended. Additionally authorizes revocation for any damages suffered due to a violation of Article 12 that are not satisfied. Prohibits penalizing an owner for the acts of a business entity found to have violated the statute that did not personally engage in a violation and did not knowingly omit any duty.

    Amends GS 20-295 to permit an applicant to petition for a hearing with the Office of Administrative Hearings under GS Chapter 150B within 30 days of the DMV's denial of an application, rather than filing a written request for a hearing with the Commissioner of Motor Vehicles. 

    Amends GS 20-296 to require the DMV to notify the licensee of proposed disciplinary action by certified mail and participate in informal settlement procedures pursuant to GS Chapter 150B prior to taking any disciplinary action on a license. Authorizes the DMV to commence a contested case under GS Chapter 150B if the DMV and the licensee are unable to agree to a resolution (previously called for written notice to the licensee and a hearing before the Commissioner prior to taking any disciplinary action). 

    Makes conforming changes to GS 150B-1.

    Amends GS 20-30(6) to allow a licensed lender to create, store, or receive, in the ordinary course of business, a color image of a driver's license, learner's permit, or special identification card of a borrower or loan applicant (currently limited to black and white photocopy by law). 

    Enacts new subsection (c1) to GS 20-79 to require dealer registration plates to be replaced every three years. 

    Amends GS 20-295 to require the DMV to send a temporary license to an applicant while the DMV reviews an application for license renewal that was timely submitted prior to the expiration of the license.

    Amends GS 20-183.7A(d1) and GS 20-183.8B(c2) regarding multiple violations in separate safety or emissions inspections considered at one time by the DMV. Specifies that the provisions do not prohibit or limit the ability of a reviewing administrative law judge or court to affirm, reverse, remand, or modify the DMV's decisions involving penalties, suspensions, or revocations, whether discretionary or otherwise, pursuant to Articles 3 and 4 of GS Chapter 150B (previously limited to the court's ability to affirm, reverse, remand, or modify the DMV's decision pursuant to Article 4 of GS Chapter 150B).

    Amends GS 20-183.8G, governing administrative and judicial review of licenses or registrations issued under Part 1 of Article 3A, Safety and Emissions Safety Program. Now grants applicants and licensees, as applicable, the right to commence a contested case under GS Chapter 150B (1) upon any six adverse actions of the DMV, as set forth in existing law, with a hearing commencing within 10 days of receipt of the notice of action; (2) within 10 days of receipt of a statement of charges of a violation that could result in the suspension or revocation of the person's license, with suspension or revocation stayed until the final decision is made by an administrative law judge; and (3) within 10 days of receipt of notice of summary action on the license, following judicial review and authorization of the proposed action (previously called for making a written request for a hearing before the Commissioner in all circumstances). Authorizes the administrative law judge to order a suspension for a first occurrence of a Type I violation of a station to be stayed upon reasonable compliance terms to be determined by the administrative law judge; order suspension against a license holder to run consecutively or concurrently; and affirm, reverse, remand, or modify the DMV's decision after a contested case hearing on any other action. Automatically stays suspension or revocation for 30 days after the person is served with a written copy of the decision. Makes conforming repeals to language referencing hearings before the Commissioner.

    Makes conforming changes to GS 150B-2.

    Regarding the surrender of title to a manufactured home that qualifies as real property under GS 20-109.2, no longer allows the Commissioner to require evidence demonstrating that all affected secured parties have been notified and consent to the owner of a manufactured home's application for a new certificate of title following cancellation of the initial certificate of title when the owner seeks to separate the manufactured home from the real property. Deems there to be no right of action against a DMV license plate contractor, in addition to the DMV, for a person damaged by the cancellation of a certificate of title pursuant to subsection (a1), which provides for surrender of the certificate of title to a manufactured home that qualifies as real property when the certificate of title is unavailable.  

    Amends GS 20-58.3A, which provides for the automatic expiration of a perfected security interest in a manufactured home perfected by notation on the certificate of title after 30 years of issuance, unless the title states a different maturity date. Expands subsection (g) to also grant immunity to license plate contractors of the Division of Motor Vehicles (DMV), in addition to the DMV, from tort claims based on reliance by the DMV or a DMV contractor on any application for renewal of the perfection of a security interest on a certificate of title for a manufactured home submitted to the DMV or the contractor by a third party, as authorized by the statute.

    Amends GS 20-58.4, which provides for the release of a security interest in a motor vehicle upon satisfaction or other discharge, to direct DMV license plate contractors, in addition to the DMV, to issue a new certificate of title upon the owner's exhibition of signed documents evidencing the release and the certificate of title. Regarding the release of a security interest in a vehicle that is a manufactured home, requires DMV licensed contractors, in addition to the DMV, to send notice to the last known address of the secured party before cancellation, and prohibits cancellation if the secured party files an objection within 15 days after the notice was sent until the secured party consents or receives a court order directing the DMV to cancel the security interest (previously, required notice by registered letter to the last known address of the secured party, with cancellation prohibited if a written objection was received within 15 days of notice). Similar to the changes made to GS 20-58.3A, expands subsection (f) to also grant immunity to license plate contractors of the DMV, in addition to the DMV, for tort claims based on reliance by the DMV or a DMV contractor on any release, affidavit, certificate of title notation, or documents evidencing the release or satisfaction of a security interest related to certificates of title for manufactured homes submitted to the DMV or the contractor by a third party, as authorized by the statute.

    Amends Section 3 of SL 2020-77, which allows for electronic signatures for applications for security interest notations by a debtor and does not require specified documentation for applications submitted by a secured party, to eliminate the December 1, 2020, sunset provision.

    Amends GS 20-58.4A, which directs the DMV to implement a statewide electronic lien system to process the notification, release, and maintenance of security interests and certificate of title data and authorizes the DMV to contract with a qualified vendor or service provider to do so, to require qualified vendors and service providers to have experience in directly providing both electronic lien and title solutions to State motor vehicle departments or agencies (was, electronic solutions generally).

    Amends GS 20-285 to include the protection and preservation of the investments and properties of licensed motor vehicle businesses in the state to the stated public policy. Makes clarifying and technical changes. 

    Effective October 1, 2021. 


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