Bill Summary for H 650 (2021)

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Summary date: 

Aug 9 2021

Bill Information:

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.

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Bill summary

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.