Bill Summary for H 650 (2021-2022)

Printer-friendly: Click to view

Summary date: 

May 5 2021

Bill Information:

View NCGA Bill Details2021
House Bill 650 (Public) Filed Thursday, April 22, 2021
Intro. by B. Jones, Iler, Shepard.

View: All Summaries for BillTracking:

Bill summary

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.