Bill Summary for H 199 (2023-2024)

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Summary date: 

Apr 27 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
House Bill 199 (Public) Filed Thursday, February 23, 2023
AN ACT TO MAKE VARIOUS CHANGES TO THE MOTOR VEHICLE, LIEN HEARING NOTIFICATION, AND SERVICE OF PROCESS LAWS OF THE STATE, AS RECOMMENDED BY THE DIVISION OF MOTOR VEHICLES OF THE DEPARTMENT OF TRANSPORTATION.
Intro. by B. Jones, Shepard, McNeely, Tyson.

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Bill summary

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.