Senate committee substitute to the 2nd edition adds the following content. Makes conforming changes to the act’s long title.

Section 2

Requires the Department of Transportation (DOT), Division of Motor Vehicles (DMV), to study the feasibility of changing DMV funding to a percentage-of-revenue-based model, including examining nine issues, including funding models used by motor vehicle agencies in other states, legal or budgetary constrains related to a change in funding models, and potential impacts on the DMV’s customer service levels and wait times, staffing and operations capacity, technology modernization efforts, and accountability and legislative oversight. Requires a report to the specified NCGA committees and division and to OSBM by January 1, 2027.

Section 3

Amends GS 20-7 to allow a person to renew their drivers license at any time before it expires (was, 180 days before it expires). Sets a different renewal fee structure for people renewing more than 180 days before expiration. Effective October 1, 2026.

Section 4

Amends GS 20-43.1 to allow the DMV to electronically provide an unredacted crash report to a person directly involved in the crash.

Section 5

Amends GS 20-311 expanding the time that an owner has to respond to a notice that their motor vehicle insurance has lapsed from 10 to 30 days. Applies to notices issued on or after October 1, 2026.

Section 6

Repeals GS 20-79(c1), which required dealer license plates to be replaced every four years.

Section 6.5

Amends GS 20-63.1 to no longer require license plates to be replaced every seven years. Removes the requirement that the DMV develop standards for license plate reflectivity using the most current technology available while maintaining a competitive bid process. 

Section 7

Sets out the intent of this section and the NCGA’s findings of fact to certificate of title application fees. Finds that the DMV’s interpretation that the fee in GS 20-85(a)(12), which set the fee for application for a certificate of title prepared and delivered using a one-day title service at $126, is not subject to the July 1, 2024, quadrennial adjustment for inflation and all subsequent adjustments for inflation, is inconsistent with the NCGA’s intentions. Directs the DMV to apply the July 1, 2024, adjustment and all subsequent quadrennial adjustments for inflation to the fee.  

Amends GS 20-63 by prohibiting the DMV from requiring a business entity to contract with DMV as an individual as a prerequisite for a commission contract offer. Adds that if a commission contractor has been required by DMV to apply for or renew a commission contract in the contractors’ individual name, then the DMV must notify the contractor within 30 days of the application or renewal and give them an opportunity within 30 days of the notification to (1) amend the application to reflect the business name or (2) amend and reenter the commission contract in the business name. Requires the terms of a commission contract to allow the contractor to sell their entire business operation (was, business) to another qualified contractor before the contract expires. Expands the items that must be transferred to the new commission contractors when there is a sale to include all of the prior commission contractor’s contractual rights, and adds the requirement that the new commissioner contractor must continue operating the business. Allows the DMV to establish guidelines with respect to the transfer of the DMV’s equipment and software to the new commission contractor.

Section 8

Amends the requirements for the issuance of the International Association of Fire Fighters license plate in GS 20-79.4 to require that the person be an active member of the International Association of Fire Fighters (was, present proof of an active membership for the year in which the license plate is sought).

Section 9

Amends GS 20-11 by removing the driving eligibility certificate, including removing it from learner’s permits and provisional driver's licenses.

Repeals the following provisions relating to driving eligibility certificates, certificate requirements, school notifications, and certificate suspensions and revocations:

• GS 20-9(b1),
• GS 20-13.2(c1),
• GS 115C-12(28),
• GS 115C-218.70,
• GS 115C-238.66(8),
• GS 115C-288(k),
• GS 115C-566, and
• GS 115D-10.70.

Makes conforming deletions in GS 115C-150.12C.

Requires the DMV to restore a permit or license of a person who had it revoked due to ineligibility for a driving eligibility certificate but who meets all other requirements for the permit or license.

Effective October 1, 2026.

Section 10

Amends GS 20-37.17 by adding to the entities from which the DMV must get driving records before issuing a commercial driver's license to also include the Federal Motor Carrier Safety Administration’s Commercial Driver’s License Drug and Alcohol Clearinghouse.

Amends GS 20-37.19 as follows. Prohibits an employer from knowingly allowing, permitting, or authorizing a driver to drive a commercial motor vehicle during any period in which the driver is listed in the Federal Motor Carrier Safety Administration’s Commercial Driver’s License Drug and Alcohol Clearinghouse as prohibited from operating a commercial motor vehicle. No longer requires the notification from an employer when an employee or applicant tests positive or refuses to participate in a drug or alcohol test to be made within five business days and now requires the notification to also be made to the Federal Motor Carrier Safety Administration’s Commercial Driver’s License Drug and Alcohol Clearinghouse. Requires a report that a driver has a negative return-to-duty test be reported to the DMV and the Federal Motor Carrier Safety Administration’s Commercial Driver’s License Drug and Alcohol Clearinghouse.

Amends GS 20-37.20A to require the DMV to put a notation on a person’s driving record when the DMV has been notified of a prohibited status in the Federal Motor Carrier Safety Administration’s Commercial Driver’s License Drug and Alcohol Clearinghouse for a person holding a commercial driver's license or permit (was, upon notice of a positive result in an alcohol or drug test and made it subject to any appeal from the disqualification under GS 20-37.20B, which is now repealed by this act). Makes the disqualification effective on the date of the notification. Repeals GS 20-37.20B (which concerned the appeal of disqualification for testing positive in a drug or alcohol test).

Applies to commercial driver's license and commercial driver permit disqualifications initiated on or after July 1, 2026.

Section 11

Amends GS 20-4.03 by amending the due date of the DMV”s report on administrative hearings so that it is now due within 30 days of the end of an applicable quarter (was, October 1 and quarterly thereafter).

Section 12

Repeals SL 2014-100, Section 7.14(d), which required the DOT Chief Information Officer to report quarterly on the status of listed information technology modernization projects to the specified NCGA committees.

Section 13

Amends GS 136-89.211 by specifying that the Turnpike Authority is not precluded from allowing a discount for a motor vehicle equipped with an electronic toll collection transponder or a motor vehicle associated with a prepaid toll or account (was, transponder or a motor vehicle that has prepaid its toll).

Section 14

Amends GS 136-89.182 to also require the North Carolina Turnpike Authority Board to appoint a Chief Executive Officer who, along with the Executive Director, will be the Authority’s chief administrative officer. Makes conforming changes. Makes conforming changes to GS 136-89.183.

Section 15

Amends GS 136-89.56 to require funds generated from fees for logos placed on facilities signs to be deposited into the Reserve for General Maintenance in the Highway Fund.

Section 16

Amends GS 20-146 to require a motor vehicle with a gross vehicle weigh rating of 26,001 pounds or more to not operate in the left most lane of a controlled-access highway with six or more lanes, except when entering or exiting or avoiding a hazard (removes when passing); adds an exception for when DOT has passed an ordinance and installed signage with different restrictions. Applies to offenses committed on or after December 1, 2026.

Section 17

Amends GS 20-141 to make it illegal to operate a vehicle in excess of 25 miles per hour on any roadway that is unpaved or not marked with a centerline. Makes conforming changes. Applies to offenses committed on or after December 1, 2026.

Section 17.5

Amends GS 20-141, as it applies to Durham only, to allow Durham to designate, by ordinance, an area within the municipal limits where the speed limit is 25 miles per hour except for those designated as part of the Interstate Highway System or other controlled-access highway within that area, when the municipal transportation department determines that traffic, safety, pedestrian activity, road design, or similar considerations warrant the lower speed limit. Requires speed limit signs to be placed at the boundaries of the area. 

Section 18

Amends Section 34.13(b) of SL 2018-5, as amended, to allow the DOT’s pilot project for the construction of transportation projects on a construction manager-general contractor basis be awarded for up to 15 (was, 10) projects.

Section 19

Modifies the definition of electric assisted bicycle in GS 20-401 so that it must meet the requirements of one of the following three listed classes: (1) a class 1 electric bicycle (a bicycle equipped with a motor that provides assistance only when the rider is pedaling and ceases to assist once the bicycle reaches a speed of 20 miles per hour), (2) a class 2 electric bicycle (a bicycle equipped with a motor that may propel the bicycle without pedaling but ceases to assist once the bicycle reaches a speed of 20 miles per hour), and (3) a class 3 electric assisted bicycle (a bicycle equipped with a motor that provides assistance only when the rider is pedaling and ceases to assist once the bicycle reaches a speed of 28 miles per hour). Enacts new GS 160A-300.2 authorizing cities to regulate electric assisted bicycles on any multiuse path or sidewalk within municipal limits to include (1) restricting the use of a class or classes of electric assisted bicycles and (2) establishing speed limits. Enacts new GS 20-171.3 allowing the operation of an electric assisted bicycle on all roadways, bicycle lanes, and multiuse paths, except as otherwise regulated in the specified statutes and by the Department of Natural and Cultural Resources in state parks, historical sites, or other properties in the Department's jurisdiction; requires persons under the age of 18 operating or riding class 3 bicycles to wear a helmet. Allows a city to require helmet use by a person under the age of 18 operating or riding as a passenger on a class 1 or 2 electric assisted bicycle. Permits counties, in new GS 153A-245.1, to regulate electric assisted bicycles in the same manner as cities can except that the statutory authority cannot be deemed to restrict or repeal the authority of a city to regulate the use of an electric assisted bicycles. Requires the Department of Transportation to develop educational materials on the proper use and safety considerations of electric assisted bicycles.

Section 20

Amends GS 20-4.01 by increasing the allowable length and width of a personal delivery device.

Amends GS 20-175.16 to allow businesses to also operate a personal delivery device on a bicycle lane, shoulder, parking lot, or similar area in addition to the already allowed pedestrian area or highway. Amends the conditions that apply to the operation of a personal delivery device as follows: (1) specifies that the operator monitoring the device and exercising remote control navigation must be human; (2) prohibits operating at a speed greater than 20 miles per hour in areas other than a pedestrian area limited to 10 miles per hour; (3) removes the prohibition on operating on a highway except as necessary to cross a highway or along a highway if a sidewalk is not available; and (4) prohibits operating on a highway with a speed limit greater than 55 (was, 35) miles per hour. Specifies that the device has the rights and duties applicable to a pedestrian in a pedestrian area and to bicycle operators in other areas, except for those that by their nature cannot apply to a personal delivery device or that place an unreasonable burden on the operation of the device. Applies to offenses committed on or after December 1, 2026.

Section 21

Amends GS 153A-205 to allow a county to finance the local share of the cost of improvements made under DOT’s supervision to State-maintained secondary streets (was, subdivision and residential streets that are a part of the State-maintained system) that are located in the county and outside of a city. Allows a county to finance the local share of the cost of improvements made under DOT’s supervision to the following types of streets within the recorded public right-of-way, in order to bring those streets up to DOT standards so they can be considered for addition to the State-maintained system: (1) subdivision and residential streets located in the county and outside of a city but excluding apartment and condo complexes or (2) industrial access or commercial complex streets located inside a census-designated place boundary, but excluding streets that support larger parking lot networks, regional malls, strip malls, apartment complexes, or condo complexes. Makes conforming changes. Amends GS 159-48 to allow a county to issue bonds to finance the cost of providing improvements to streets (was, subdivision and residential streets) under GS 153A-205.

Section 22

Amends GS 136-140.15 to require DOT to contract with a private entity to administer a tourist-oriented directional signs (TODS) program instead of administer the program itself. Requires the vendor to design, manufacture, and erect the signs; maintain the signs; receive and respond to information requests concerning the program; and manage the financial transactions related to the program. Requires businesses or facilities participating in the TODS program to pay a fee that is set by the vendor and approved by the Board of Transportation, with the fee set under specified parameters. Makes conforming changes. Makes conforming changes to GS 136-140.18 and GS 136-140.19. Requires DOT to contract with a vendor no later than 120 days after the section’s effective date. Allows contracting with the same vendor that administers the Logo Sign Program.

Section 23

Amends GS 20-280 requiring taxicab operators that provide service to an international airport under a permit issued by the airport operator within this state to maintain a liability insurance insuring the owner and operator of the business, their agents, and employees while performing their duties, against loss caused by accident and arising out of the ownership, use, or operation of the taxicab, subject to limits with respect to each vehicle, in the minimum of $1 million per occurrence. Also requires providing proof of financial responsibility to the airport operator issuing a permit and requires designating the airport operator as the holder of the certificate of insurance for the purpose of receiving notices concerning the insurance policy. Removes outdated language and makes technical changes. Effective July 1, 2027.

Section 24

Amends GS 136-93.1A by adding that the criteria for a scope of traffic analysis must include the use of a population growth factor equal to or greater than the average of the highest three years of growth over the previous five years in the county in which a development is located. Effective October 1, 2026.

Section 25

Amends GS 136-18 by adding that when DOT requires the relocation of facilities or equipment that provide public utility service owned or operated by an electric membership corporation located outside of an existing DOT right-of-way, that DOT must reimburse the cost of moving these utilities and must not require the electric membership corporation to provide documentation of a recorded easement or property rights as a condition for reimbursement.

Section 26

Amends GS 136-93 to allow the performance guarantee required for applicants for specified construction impacting roads, at the applicant's election, to consist of a surety bond, irrevocable letter of credit, or other instrument approved by the Department that provides equivalent security to a surety bond or irrevocable letter of credit (was, bond only).

Section 27

Amends GS 136-18 to prohibit DOT from planting an invasive species in the highway right-of-way. Amends GS 143B-135.59 to prohibit planting invasive species on lands that are part of the State Parks System. Effective October 1, 2026.

Section 28

Requires DMV, within 180 days of the section's effective date, to work with stakeholders and establish or amend rules restructuring enrollment contract refunds for commercial driver training schools subject to permitting by DMV to engage in the business of commercial vehicle driving instruction. Requires that rules for enrollment contract refunds provide for specified refund amounts based on the timing of the cancellation. 

Section 29

Requires the DMV, within 180 days of the section's effective date, to establish or amend rules to create a two-week course curriculum intended for Class B commercial driver license applicants, for commercial driver training schools subject to DMV permitting to engage in the business of driving instruction for commercial motor vehicles. Sets out requirements for the curriculum and types of instructional hours.

Section 30

Amends GS 20-81.12(b30) to allow the college insignia license plate to also include community colleges. Makes conforming changes to GS 20-79.4.

Section 31

Amends GS 20-79.4 to allow the DMV to issue an America's Semiquincentennial license plate upon receiving 300 or more applications for the plate. Specifies that this plate is not subject to the requirements to establish a new plate under GS 20-79.3A. Specifies that DMV is not required to issue this plate until 180 days after the DMV has received the required number of paid applications and the final artwork has been approved.

Section 32

Amends GS 20-79.4 to allow the DMV to issue a Guy Harvey Foundation license plate. Amends GS 20-79.7 and GS 20-81.12 to establish a special plate fee of $30 and require that $10 of that fee be transferred quarterly to UNC Wilmington, NC State, UNC-Chapel Hill, and East Carolina University to support their marine biology programs. Requires that DMV receive 300 or more plate applications. Specifies that this plate is not subject to the requirements to establish a new plate under GS 20-79.3A. Specifies that DMV is not required to issue this plate until 180 days after the DMV has received the required number of paid applications and the final artwork has been approved.