RESTRICTED
CIRCULATION
JOINT LEGISLATIVE
RECEIV W
MAY 26 1994
KATHRTNE R EVE
LAW UVM t!i
TRANSPORTATION OVERSIGHT
COMMITTEE
REPORT TO THE
1993 GENERAL ASSEMBLY
OF NORTH CAROLINA
1994 SESSION
A LIMITED NUMBER OF COPIES OF THIS REPORT IS AVAILABLE
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TABLE OF CONTENTS
PAGE
Letter of Transmittal i
Committee Membership ii
Preface 1
Committee Proceedings 2
Committee Recommendations and Legislative Proposals
1. AN ACT TO CONFORM THE VEHICLE EMISSIONS
INSPECTION PROGRAM TO THE REQUIREMENTS
OF FEDERAL LAW AND TO MAKE TECHNICAL
CHANGES IN THE VEHICLE INSPECTION LAWS 7
2. AN ACT TO MAKE TECHNICAL. CONFORMING
AND ADMINISTRATIVE CHANGES TO THE
MOTOR VEHICLE LAWS AND OTHER LAWS
CONCERNING THE DEPARTMENT
OF TRANSPORTATION 41
3. AN ACT TO ELIMINATE THE REQUIREMENT
OF PROOF OF FINANCIAL RESPONSIBILITY
UPON RENEWAL OF A DRIVERS LICENSE 62
4. AN ACT TO EXTEND THE EXPIRATION OF
THE REQUIREMENT THAT JUST COMPENSATION
BE PAID FOR THE REMOVAL BY LOCAL
AUTHORITIES OF BILLBOARDS ON INTERSTATE
AND FEDERAL-AID PRIMARY HIGHWAYS. AS
REQUIRED BY FEDERAL LAW 67
5. AN ACT TO PROVIDE FOR UNIFORM
DRIVER LICENSE AND VEHICLE
REGISTRATION INFORMATION 69
6. AN ACT TO COMPLY WITH FEDERAL LAW
BY REVISING THE BINGO STAMP METHOD
OF ENSURING THAT FOR-HIRE VEHICLES
^' OPERATED IN THIS STATE IN INTERSTATE
COMMERCE ARE INSURED AND TO MAKE
TECHNICAL CHANGES TO THE MOTOR
CARRIER LAWS 84
7. AN ACT CLARIFYING THAT A MOTOR
VEHICLE OPERATING LEASE THAT CONTAINS
A TERMINAL RENTAL ADJUSTMENT CLAUSE
(TRAC) IS NOT A SALE AND DOES NOT
CREATE A SECURITY INTEREST IN THE
LEASED PROPERTY 96
Committee Recommendations and Legislative Proposals (Continued)
8. AN ACT TO AUTHORIZE THE DEPARTMENT
OF TRANSPORTATION TO SELL SOUVENIRS
ON FERRIES AND AT FERRY FACILITIES 99
9. AN ACT TO AUTHORIZE THE DEPARTMENT OF
TRANSPORTATION TO PERFORM DREDGING
SERVICES FOR UNITS OF LOCAL GOVERNMENT ... 101
10. AN ACT TO MAKE PERMANENT THE EXEMPTION
FOR REAL RESTATE ACQUIRED BY THE
DEPARTMENT OF TRANSPORTATION FROM THE
REQUIREMENT THAT IT BE APPRAISED BY A
LICENSED OR CERTIFIED APPRAISER WHEN
THE ESTIMATED VALUE OF THE REAL ESTATE
IS LESS THAN TEN THOUSAND DOLLARS 102
11. AN ACT TO AUTHORIZE THE DEPARTMENT OF
TRANSPORTATION TO PURCHASE LAND FOR
ENVIRONMENTAL MITIGATION OR ENHANCEMENT. 103
12. AN ACT TO LIMIT PENALTIES FOR MULTIPLE
VIOLATIONS OF SINGLE AXLE. TANDEM AXLE.
AND AXLE GROUP WEIGHT LIMITS 104
13. AN ACT TO ALLOW A TEN PERCENT WEIGHT
TOLERANCE FOR VEHICLES TRANSPORTING
UNPROCESSED FOREST PRODUCTS UPON
PAYMENT OF A FEE 105
14. CONFIDENTIALITY OF DMV RECORDS -
CHANGE IN POLICY 106
15. PROPOSED RECOMMENDATIONS FOR INMATE
LABOR PROGRAM 108
Subcommittee Reports
1. Inmate Labor 112
2. Certification of Motor Vehicle Liability
Insurance Forms (FS-ls) 116
3. Bridge Formula and Penalty Stacking 119
Summary of Mandated Reports 122
APPENDIX
Revenue Update on Highway Fund 132
Status Report on Highway Trust Fund Projects 135
Future Study Topics 139
NORTH CAROLINA GENERAL ASSEMBLY
May 24. 1994
TO THE MEMBERS OF THE 1993 GENERAL ASSEMBLY
(SECOND SESSION 1994):
The Joint Legislative Transportation Oversight Committee submits its
annual report to you for your consideration. The report was prepared by the
Committee pursuant to G.S. 120-70. 51(a).
Respectfully submitted
0^^
Co-Chairmen
Transportation Oversight Committee
MEMBERSHIP OF THE JOINT LEGISLATIVE
TRANSPORTATION OVERSIGHT COMMITTEE
APPOINTMENTS
PRESIDENT PRO TEMPORE
Senator Howard Lee
Co-Chairman
Post Office Box 25453
Raleigh. NC 27611
(919) 481-3865
Senator David Hoyle
Post Office Box 2494
Gastonia. NC 28053
(704) 867-0822
Senator Elaine Marshall
Post Office Box 778
Lillington. NC 27546
(919) 893-4000
Senator R. L. Martin
126 Nelson Street
Bethel. NC 27812
(919) 825-4361
Senator Clark Plexico
Post Office Box 1904
Hendersonville, NC 28793
(704) 696-9435
Senator Daniel Simpson
Post Office Drawer 1329
Morganton. NC 28655
(704) 437-9744
Senator Paul Smith
Post Office Box 916
Salisbury. NC 28145
(704) 633-9463
Senator Jim Speed
Route 6, Box 542
Louisburg. NC 27549
(919) 853-2167
SPEAKER
Representative John McLaughUn
Co-Chairman
Post Office Box 158
Newell. NC 28216
(704) 596-0845
Representative Ed Bowen
Route 1. Box 289
Harrells, NC 28444
(919) 532-4183
Representative Joanne Bowie
106 Nut Bush Drive. E
Greensboro. NC 27410
(919) 294-2587
Representative Robert Grady
Post Office Box 5091
Jacksonville, NC 28540
(910) 353-3579
Representative Robert Hunter
Post Office Drawer 1330
Marion, NC 28752
(704) 652-2844
Representative Mary McAlUster
1207 Murchison Road, Suite B
Fayetteville, NC 28301
(910) 483-0514
Representative George Robinson
Post Office Box 1558
Lenoir. NC 28645
(704) 728-2902
STAFF
Richard Bostic — Fiscal Research Di\ision
Sabra Faires — Fiscal Research Division
Manny Marbet — Fiscal Research Di\asion
Giles Perry — Research Division
Ruth Sappie — Fiscal Research Division
CLERK
Elnora Russell
PREFACE
The Joint Legislative Transportation Oversight Committee was estabUshed
in 1989 by Article 12E of Chapter 120 of the General Statutes. The
Committee was formed in conjunction with the creation of the Highway
Trust Fund. The Committee consists of 8 members of the Senate appointed
by the President Pro Tempore of the Senate and 8 members of the House of
Representatives appointed by the Speaker of the House of Representatives.
Members serve two-year terms.
The Committee's oversight powers are broad as quoted from G.S. 120-
70.51(a) below.
Review reports prepared by the Department of Transportation or
any other agency of State government related, in any manner, to
transportation, when those reports are required by law.
Monitor the funds deposited m and expenditures from the North
Carolina Highway Trust Fund, the Highway Fund, the General
Fund, or any other fund when those expenditures are related, in
any manner, to transportation.
Determine whether funds related, in any manner, to transportation
are being spent in accordance with law.
Determine whether any revisions are needed in the funding for a
program for which funds in the Trust Fund, the Highway Fund,
the General Fund, or any other fund when those expenditures are
related, in anv manner, to transportation may be used, including
revisions neeaed to meet any statutory timetable or program.
Report to the General Assembly at the beginning of each regular
session concerning its determinations of needed changes in the
funding or operation of programs related, in any manner, to
transportation.
COMMITTEE PROCEEDINGS
The Joint Legislative Transportation Oversight Committee was very active
from September, 1993. to Mav. 1994 with seven meetings (including a
public hearing in Asheville) and numerous subcommittee meetings. Several
Oversight Committee members also participated in the Board of
Transportation meetings in Raleigh.
The Transportation Oversight Committee tackled a variety of topics in the
interun. Many of the issues discussed by the Committee were generated by
reports submitted by DOT upon the request of the 1993 General Assembly
(see section on mandated reports). Some of the topics were follow-up reports
on recommendations of the Government Performance Audit Committee
(GPAC). Committee members also added subjects to the monthly agendas.
Three subcommittees were formed to delve into the foUomng areas: bridge
formula exceptions, inmate labor, and notification to the Division of Motor
Vehicles (DMV) of insurance cancellation and renewal.
SEPTEMBER 8, 1993
This organizational meeting laid the ^oundwork for future agendas. The
Committee reviewed the transportation-related legislation of the 1993
Session, received a revenue and expenditure update on the Highway Fund
and the Highway Trust Fund, and were briefed on the 1994 to 2000
Transportation Improvement Program (TIP). The Committee received a list
of mandated reports and heard DOT present the first three reports on the
topics of construction and preconstruction staffing and on the closing of
part-time drivers hcense offices. The Committee also received an update on
the MBAVB goals program.
OCTOBER 6, 1993
The Committee's second meeting was held in Asheville in conjunction with
the Board of Transportation. A public hearing was held on whether the
current outdoor advertising law should be changed. Legislative staff pre-
sented the Committee with an overview of the State and federal billboard
laws, regulations, and fees. Invited speakers included Scenic North
Carolina, N.C. Outdoor Advertising Association, Sierra Club, Citizens for
Property Rights, and the N.C. Association of County Commissioners. The
Committee report does not include a recommendation for chan^ng the out-
door advertising law. The Committee plans to revisit the issue in the fall of
1994.
COMMITTEE PROCEEDINGS (Continued)
NOVEMBER 8, 1993
The Commissioner of DMV briefed the Committee on the Department's
proposal for rest area security. DMV Enforcement assigned existing person-
nel to patrol 58 rest areas and welcome centers in the State. The Board of
Transportation approved the use of highway maintenance funds to purchase
bullet proof vests, walkie talkies, and flashlights for all Enforcement person-
nel. DMV Commissioner Killens asked the Oversight Committee to con-
sider an additional appropriation of $3.3 million for additional vehicles,
additional equipment, overtime pay, and a K-9 unit. The Department also
requested broader arrest powers for DMV officers. These requests were
proposed for debate in the Special Session on Crime, but were not considered
m that Session. The Committee has not concluded its review of these
requests and, therefore, has not determined whether to recommend the
requested appropriation.
Other topics in November were a discussion on the naming of highways, an
update on Highway Trust Fund projects, and a speech by former DOT
Secretary Jim Harrington. The Committee chairs appointed two subcom-
mittees to work on inmate labor matters and on tne electronic filing of
insurance forms with DMV.
DECEMBER 1, 1993
The main topic of this meeting was Senate Bill 1088, An Act To Change
The Diesel Fuel Tax Payment Method. This bill, sponsored by Senator Lee,
would transfer a portion of the diesel fuel tax paid at the pump to the
quarterly reports filed by truck operators and would assess an additional
annual registration tax ranging from $50 to $150 on the registration of
diesel-fueled cars and Ught trucks. Truck stop operators told the Committee
that the bill is needed to make North Carolina truck stops competitive with
those in surrounding states. The Departments of Revenue and
Transportation raised concerns about the revenue impact of the bill and the
increased administrative burden the bill would impose. CaroHna Motor Club
expressed concerns with the bill in its current form. Action on the bill was
postponed to a future meeting.
COMMITTEE PROCEEDINGS (Continued)
JANUARY 5, 1994
The Committee's first meeting of the new year began with a debate on the
location of a train maintenance faciUty in Raleigh to service the Piedmont
passenger train.
The Joint Legislative Commission on Governmental Operations asked the
Committee to review the site selected for maintenance of the second Raleigh
to Charlotte train operated by Amtrak. The Committee had no objections to
the Department's plans to purchase the land and existing buildings.
The Committee devoted time to several DMV issues at this meeting. The
Committee approved a proposed bill to include social security number on the
application form for a drivers Ucense, a special identification card, or a
vehicle registration. The Committee also approved a bill to implement single
state insurance registration for interstate motor carriers. Tne Committee
debated the confidentiaUty of driver records and vehicle registration and
asked the Department to recommend a solution at the next meeting. The
Committee also discussed the requirement to show an insurance form to get
a drivers Ucense.
FEBRUARY 2, 1994
The Committee continued its discussions on the confidentiality of drivers'
records and a^eed to support some internal changes made by DMV. An
update was given the Committee on permanent hourly workers in the
Division of Highways that were converted to permanent employees as of
January 1, 1994. A proposed Corolla Toll Bridge Authority was presented
to the Committee, but no action was taken. Jim Ritchie of the Triangle
Transit Authority summarized the Authority's annual report for the
Committee.
APRIL 6, 1994
The Committee endorsed an outline of a bill to change the emission inspec-
tion program in the State. Staff was asked to draft a bill for Committee
approval at the May meeting.
COMMITTEE PROCEEDINGS (Continued)
The Committee approved the following bills for the Short Session: (1) DOT/
DMV technical changes; (2) terminal rental adjustment clause (TRAC)
leases: (3) a bill to limit the number of persons who would have to show
proof of insurance to get a drivers hcense: and, (4) a billboard law extension.
A report on Di\dsion of Highways' reorganization and on diversion of
Highway Fund money to the Highway Trust Fund were presented to the
Committee.
RECOMMENDATIONS
&
LEGISLATIVE PROPOSALS
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 1 (93-LJZ-35V5)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Emissions Inspection Changes. (Public)
Sponsors: Representatives McLaughlin, Bowen, Bowie, Grady, R.
Hunter, McAllister, and Robinson.
Referred to;
1 A BILL TO BE ENTITLED
2 AN ACT TO CONFORM THE VEHICLE EMISSIONS INSPECTION PROGRAM TO THE
3 REQUIREMENTS OF FEDERAL LAW AND TO MAKE TECHNICAL CHANGES IN
4 THE VEHICLE INSPECTION LAWS.
5 The General Assembly of North Carolina enacts:
6 Section. 1. Part 2 of Article 3A of Chapter 20 of the
7 General Statutes reads as rewritten:
8 "Part 2. E qu i pm e nt I n s p e ction o£ Motor V e h i cl ee.
9 Safety and Emissions Inspections of Certain Vehicles.
10 "$ 20-183.2. E quipm e nt i n s p e ct io n requic e d; i n s p e ct i on
11 c e rt i ficat e ; o n e- w a y — p e rm i t to — move — v e hic le to i n s p e ction
12 s t a t i on . Description of vehicles subject to safety or emissions
13 inspection; definitions.
14 (a) Safety. — A motor vehicle is subject to a safety
15 inspection in accordance with this Part if it meets all of the
16 following requirements;
17 ( 1 ) It is subject to registration with the Division
18 under Article 3 of this Chapter.
19 ( 2 ) It is not subject to inspection under 49 C.F.R.
20 Part 396, the federal Motor Carrier Safety
21 Regulations .
22 ( 3 ) It is not a trailer whose gross weight is less than
23 4,000 pounds or a house trailer.
93-LJZ-35 Page 7
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 (b) Emissions. -- A motor vehicle is subject to an emissions
2 inspection in accordance with this Part if it meets all of the
3 following requirements:
4 ( 1 ) It is subject to registration with the Division
5 under Article 3 of this Chapter.
6 ( 2 ) It is not a trailer whose gross weight is less than
7 4,000 pounds, a house trailer, or a motorcycle.
8 (3]_ It is a 1975 or later model.
9 ( 4 ) It is powered or designed so that it could be
10 powered by gasoline.
11 ( 5 ) It meets any of the following descriptions:
12 a_^ It is required to be registered in an
13 emissions county.
14 b^ It is part of a fleet that is operated
15 primarily in an emissions county.
16 c_^ It is offered for rent in an emissions county.
17 d_^ It is offered for sale by a dealer in an
18 emissions county.
19 e_^ It is operated on a federal installation
20 located in an emissions county and it is not a
21 tactical military vehicle. Vehicles operated
22 on a federal installation include those that
23 are owned or leased by employees of the
24 installation and are used to commute to the
25 installation and those owned or operated by
26 the federal agency that conducts business at
27 the installation.
28 f_^ It is otherwise required by 40 C.F.R. Part 51
29 to be subject to an emissions inspection.
30 (c) Definitions. — The following definitions apply in this
31 Part:
32 ( 1 ) Emissions county. — A county in which the State
33 either is required by federal law to conduct
34 emissions testing or has agreed in its State
35 Implementation Plan submitted to the federal
36 Environmental Protection Agency to conduct
37 emissions testing. The State Environmental
38 Management Commission establishes the emissions
39 counties pursuant to rules adopted under G.S. 143-
40 215.107(a)(6) .
41 ( 2 ) Federal installation. — An installation that is
owned by, leased to, or otherwise regularly used as
42
43 the place of business of a federal agency.
Page 8 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 -(-a-) — E v e ry m o tor v e h i cl e , — trail e r , — se mitrail e r , — and po le tr aile r
2 j*©4 — i nclud i ng — tra ile r s — o4 — a — gro ss — w ei ght — o-i — 1*** — trb*o — 4 , 00
3 p o und s aod hoAAse trail e r s , r e g is t e r e d o^ r e qu i r e d trO be
4 r e gi s t e r e d — i-n — North — Carolina — wh e n — op e rat e d — on — the — s tr ee t s — aftd
5 highway s — of — th-i* — S-t«-te — mu s t — di s play — a — curr e nt — approv e d — S-t*te — ©^
6 f ede ra l — i n s p e ction — ce rtificat e — a^s — r e quir e d by — tiie — F e d e ral — Motor
7 C a rr ie r S a f e ty R e gu l ation s at s uch p l ac e on th e vehicl e a s m a y be
8 d es ignat e d — by — t4*e — Commi ss ioner , i ndicating — that — ir-t — ba* — be*n
9 i n s pect e d i« a c cordanc e w i th fcbi^s Part . Ga s olin e- pow e r e d
10 v e h i c les o v e r 26 , 001 pound s — s ha l l b e s ubj e ct to em iss ion control
11 d e v i c e a nd e xh a u s t e m iss ion te s ting r e qu i r e d und e r G . S . — 20- 1 2 8 .2 .
12 Such — motor — v e h ic l e — &bAi-l — th e r e aft e r — be — in s p e ct e d — aftd — d is pl a y — a
13 curr e nt — i n s p e ction — c e rtificat e — a-s — ir* — requ i r e d by — s ub se ct i on — (-b4-
14 h e r e of .
15 -(-b-) — E v e ry — i n s p e ction — c e rtificat e — i ss u e d — uft4*i — thi s — Part — siwtl-l
16 b e v a l i d f o r n o t less than 1 2 month s and s hal l e xpir e a t m i dn i ght
17 an — the — l*6-t — d*y — »f — the — m©«^i» — d es ign a t e d — on — &ai4 — i n s p e ct i on
18 c e rtif ica t e. — It s h all b e un la wfu l to o p e r a t e a ny m o tor v e hic le on
19 th e highway unti l th e r e i s d is play e d th e r e on a curr e nt in s p e ction
20 c e rt i f i cate a s provid e d by th is Part, — i ndicating th a t th e v e h i cl e
21 b«t-s — b«*n — i n s p e ct ed — within — tive — pr e v i ou s — 12 — month s — a^vd — ba^s — b«*n
22 found t o comp l y w i th th e — s t a ndard for s af e ty e qu i pm e nt pr es cr i b e d
2 3 by th is Chapt e r s ubj e ct to th e fol l owing provi s ion s;
2 4 4-L4- V e h i c les — of — a — typ e — r e quir e d — trO — be — in s p e ct e d — und e r
2 5 s ub se ct i on — ( a ) , — which — a-c* — own«4 — by — a — r es i de nt — &f
26 -tbi-s St a te, tb*t baj,te b«*n out s i de oi ^^at-th
27 Car o lin a — continuou s ly — £rO-t — a — p e riod — &i — 3-0 — day s , — o-t
28 ma«-e-, — immed i at e ly — pr e c e ding — tbe — e xp i ration — &f — tbe
29 th e n curr e nt in s p e ct io n c e rtificat e s h a l l w i th i n 1
30 day s o f — r ee ntry to th e Stat e b e — in s p ec t ed a nd hav e
31 a n appr o v e d c e rt i f i c a t e att a ch ed th e r e to if v e h i cle
32 i-s to cont i nu e op e rati o n on tbe s tr ee t s and
33 h i ghw a ys .
34 -^-24- Afty v e h i cl e own e d &x p ossessed by a d e al e r ,
3 5 m a nuf a ctur e r — o-r — tr a n s port e r — w i thin — tbi* — S-ba-te — and
36 o p e r a t ed — ov e r the publ i c s tr ee t s a4id — h i ghway s
37 dis p l aying th e r e on a dea l e r d e mon s tr a t i on,
38 manufactur e r or tran s port e r p l at e mu s t hav e aff i x e d
39 t« — tbe — w i nd s hi e ld — th e r e of — a — v a l i d — c e rtif i cat e — &i
4 in s p e ct i on ajid approval , e xc e pt a dea l e r ,
41 m a nufactur e r o-t tr a n s port e r o-r hi* a^*nt ma^^
4 2 op e r a t e a motor v e hicl e di s p l ay i ng d eale r
4 3 de m o n s trat i on, — manufactur e r — o-t — tr a n s port e r — p l at es
4 4 fr o m sourc e of purcha se to hi s p l ac e of bu s in ess or
93-LJZ-35 Page 9
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 -to — Au — i n s p e ct io n — s t a tion , — prov i d ed — i-t — i^s — w i th i n — i-0
2 4*y-* o-f purcha se , for e c l o s ur e o-c r e po ssessi on .
3 Pr o v ide d furth e r, — that a n e w car d e aler may op e r a t e
4 «i ftew motor v e h i cl e pr i or to fir s t s-aie fo-t
5 cu s tom e r d e mon s tration purpo s e s on l y without
6 a ff ixi ng th e r e to an i n s p e ct i on c e rtificat e a-s
7 r e qui r e d — by — thi s — se ction — i-f — s uch — d e al e r — cau ses — afl
8 i n s p e ction — oi — the — e quipm e nt — e num e r a t e d — i-o — G . S .
9 20 - 18 3 . 3 — to — be — m«Mie — a«d — affix es — on — tite — »; i ndow — o^
10 -tite — v e hicl e — adjac e nt — to — tiie — manufactur e r ' s — pr i ce
11 l is t a c e rtificate a s n e ar a s practica l — i n form and
12 c ont e nt a s — fo ll ow s ;
13 Deale r
14 De a le r — l i c e n se numb e r
15 V e h icle make Y e ar mod el
16 V e h i c le — id e nt i f i cation numb e r
17 E qu i pm e nt It e m Ch e ck s qu a r e wh e n i n s p ec t e d
18 and a ppr o v ed
19 B**]^** 4-}-
20 i,i^iit* 4-4
21 Ho** 44
22 S t ee r i ng M e chan is m 4-4
23 Wind s hield Wip e r 4-4
24 Di r e ct i onal — Signal s 4-4
25 T i r es 44
26 R ea r V ie w Mirror 44
27 Exh a u s t Sy s t e m 44
28 i — c e rt i fy th a t the ab ov e i t e m s of e qu i pm e nt h a ve
29 b««« — i n s p e ct e d — and — touftd — to — be — i-n — g«od — workin g
30 o rd e r .
31
32
33 Deale r o r A g e nt
34
35 4,34 V e h icles — ac qu i r ed — by — r eside nt s — of — tbi* — S-t*t* — ttom
36 deale rs — o-r — own e r s — loc at e d — out si d e — of — the — S4-a4*
37 mu^-t, — upon — e ntry — to — tbi-s — St a t e , — be — in s p e ct e d — aftd
38 appr o v ed , c e rtificat e attach ed , with i n U) day s
39 aft e r — th e v e h i c le b e com es — s ubj e ct to — r e g is trati o n .
40 4-44 V e h icle s — a cqu i r e d by — r esi d e nt s w i th i n — tivi* — St a t e ,
41 fto-t — d is play i ng — curr e nt — Morth — Caro l ina — i n s p e ction
42 c e rt i f i cat es , — mu s t — be — i n s p e ct e d — and — hav e — a pprov e d
43 i n s p e ct i on c e rt i fi c at e a tt ac h ed w i thin 10 d a y s fr o m
44 da-te — r e g is tr a t i on — p la t e — iss u e d — o* — i-f — r e gi s tr a t i on
Page 10 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 plate jg — to b e tcan e f e r c e d , — w i th i n 10 d a y s of th e
2 d a t e o£ purcha s e .
3 ( 5 ) Owners — o£ motoc yr e hic les moving th e ic — r esi d e nc e to
4 N«j;4^; Carolina — f-t^m — &th«-t — s tat es — RUi«-t — within — I4i
5 d*y€ — i-f-j^m — the — da-te — th« — v e hicl es — a4;^ — subj e ct — te
6 registration h a v e Mune in s p e ct e d and hav e »«
7 approv e d c e rtificat e attach ed th e r e to .
8 ( 6 ) The — Commissioner — &i — Jtot<w; — V e hicl es — &* — hi* — dulj;^
9 authorized — ag e nt — 145 — e mpow e r e d — to — g-r-Aftt — s p e cial
10 written — one-way — p e rmit s — 1« — op e rat e — moto* — v e h i c les
11 without — current — i n s p e ction c e rt i f i cat es — s o le ly — tot
12 -the purpose &i mov i ng S4i«h v e h i cl es 1« an
13 authorized insp e ction s tation to obta i n tb«
14 i n s p e ct i on r e quir e d und e r thi s Part .
15 (7 ) Vehicles — which — a-t-e — ba-&e — p l at e d — tfl — N«*t45 — Car o lina
16 und e r th e Int e rnational R e gi s tration P l an but which
17 *t« — stationed — La — anoth e r — jur is dict i on — 64ia14 — be
18 permitted — to — operate — ifl — W<M^th — Car ol in a — on — tii*i-t
19 i n i t ial trip into North Caro l ina w i thout di s p l ay i ng
20 a v ali d in s p e ct i on c e rtif i cat e.
21 4-0-^ On and a ft e r F e bruary 1 6, — 1966, — a ll motor v e hicl e d e al e r s
22 i n North C a r oli n a s ha ll , — prior t o r e tai l s a le of a ny now or u se d
23 mot^« — v e hicl e , — h*v« — such motor — v e hicl e — i n s p e ct e d by a n — approv e d
24 i n s p e ct i on s tat io n a s — r e quir ed by thi s Part . Prov i d e d, — how e v e r,
25 -a purcha se r oi a moto^; v e hicl e , who i-s lic e n se d a* a
26 sel f - in s p e ctor, m*y conduct the r e qu i r e d insp e ction, a ft e r
27 e nt e r i ng i nto a writt e n agr e em e nt w i th th e d e al e r to fol l ov/ s uch
28 « — proc e dur e. — A — c o py — of — &uoh — d e al e r - purchas e r — a gr ee m e nt — m«*4 — b«
29 iiJUed — wi-th — tiie — Di vi si on — oi — Motoj; — V e hi c l es. Provid e d — furth e r,
30 that any n e w an d unr e gi s t e r e d vehic le — &€^id — t o a nonr es id e nt — (-a*
31 de f i n e d — in G.S. — 20-6 ) — s hall b e exe mpt — from th e — r e qu i r e m e nt s — o£
32 iiii-js — se ct io n i f s u c h v e hic le — is not r e quir ed to b e r e g is t e r e d i n
33 th is Stat e. Prov i d e d furth e r, th a t motor v e hicl e s sold by publ i r
34 au c tion d eale r s me^-t tiie i n s p e cti o n r e quir e m e nts of Uii-s
35 s ub se ct i on — ir^ — th e y — h a v e — a — c urr e nt — North — Carol i na — i nsp e ct i on
36 s t i ck e r less than 90 da y s old d i s p l ay ed a t th e tim e of sa l e.
37 -(-d^ Wh e n a m o tor v e h i cl e — r e quir e d t o b e — insp e ct e d under — thi-&
38 P a rt s h al l, — upon in s p e ction, — fail to m ee t th e s af e ty r e qu i r e m e nt s
39 o f th is P a rt, — th e s af e ty equipment in s p e ct i on stati o n making s uch
40 i n s p e ction , — &h«^-l — iss u e — an — author i s e d — rec ei pt — fo< — &4Aoh — v e hic le
41 i n di cat i ng — ttta-t — i-t — ha-s — be*n — in s p e ct e d — and — &i^ai4 — e num e rate — th«
42 de f e ct s — found . TJ*e — own e r — o-t — op e rator — m*y — h a v e — &4ioii — d e f e ct s
4 3 c o rr e ct e d a t s uch plac e a s h e or s h e choo ses. — Th e v e hi cle m a y be
4 4 r ei n s p ec t e d — a-t — th« — s af e ty — equipm e nt — i n s p e ction — stat io n, — fir s t
93-LJZ-35 Page 11
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 m aki ng th e — i n s p ec t i on , — w i thout add i t i on al — charg e , — o* — th e own e r or
2 o p e r a t o r — lOAy — h a v e — s-aflve — i n s p e ct ed — a-t — anoth e r — s af e ty — e qu i pm e nt
3 s t a ti o n up o n paym e nt — o-£ — a — r-%u — i n s p e cti o n — f ee .
4 -(-e-) Oe — a4id — a-£-t«-c — J a nuary — 1-, — 1 974 , — e^Msh — mot o r — v e h icle — sa f e ty
5 i n s p ec t io n — c e rt i f i c a t e — sJwuLl — c o nta i n, — on — th« — p o rt i on — r ea d ab l e
6 -f-r-ow — tive — v e h icle — i nt e r io r , — t-b« — f o l lo w i ng — i nf o rmat i on ;
7 -(-1-)- Th e dat e o f th e curr e nt i n s p e ct i on;
8 -(-2-)- Th« — o do m e t e r — r e ading — a-t — the — ti«« — &f — the — curr e nt
9 in s p e ct i on;
10 4-3-)- Tiie — s ignatur e , — i n i ti als — &* — &the^ — i d e ntific a t i on of
11 th« — p e r s on — m a king — trh« — in s p ec tion — and — aff i x i ng — th«
12 ce rt i f i cat e t o th e w i nd s h ield.
13 "S 20-183.3. I n s p e ction r e quirem e nt s. Scope of safety inspection
14 and emissions inspection.
15 (a) Safety. — Be for e — an — approv al — c e rtif i cat e — ma-y — b« — iss u e d
16 irO-fi — a — m o t o r — v e h icle , — th« — v e h i c le — rou«-t — b« — i n s p e ct e d — by — a — s af e ty
17 e qu i pm e nt — i n s p ec t io n — s t a t io n, — and — ir^ — requir ed — by — Ch a pt e r — 2-0 — &i
18 th e G e n e r al — S t a tut es — o f North Caro li n a , — mu s t b e — f«uad — t o po ssess
19 i n sa f e o p e r a t i ng co n di t i on th e — f ollo wing a rt i c les and e qu i pm e nt :
20 A safety inspection of a motor vehicle consists of an inspection
21 of the following equipment to determine if the vehicle has the
22 equipment required by Part 9 of Article 3 of this Chapter and if
23 the equipment is in a safe operating condition;
24 (1) Brakes, as required by G.S. 20-124.
25 (2) Lights, as required by G.S. 20-129 or 20-129.1.
26 (3) Horn, as required by G.S. 20-125(a).
27 (4) Steering mechanism, as required by G.S. 20-123.1.
28 ( 5 ) W i n ds h iel d — w i p e r , Windows and windshield wipers,
29 as required by G.S. 20-127.
30 (6) Directional signals, as required by G.S. 20-125.1.
31 (7) Tires, as required by G.S. 20-122.1.
32 ( 8 ) Rea rv ie w m i rr o r o r m i rr o r s, Mirrors, as required by
33 G.S. 20-126.
34 (9) Exhaust s y s t e m , system, as required by G.S. 20-128.
35 For a vehicle that is subject to an emissions
36 inspection in addition to a safety inspection, a
37 visual inspection of the vehicle's emission-control
38 devices is included in the emissions inspection
3 9 rather than the safety inspection.
4 N o i n s p e ct io n c e rt i f i c a t e s hal l b e iss u ed by a s af e ty e qu i pm e nt
41 i n s p e ct io n — s t a t io n — to< — a — motor — v e h i c le — m a nufactur e d aft e r — rv©4«4
42 y e ar — 1 9 6 7 — un less — th« — v e h i c le — ir^s — e qu i pp e d — with — ^u^h — e m issio n
43 c o ntro l de v i c es t o r ed uc e ai r po ll ut i on as w e r e i n s t alled a t th e
44 -time — of — m a nufactur e — which — a*« — r e ad il y — v is ibl e , — pr o v i d ed — tii«
Page 12 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 foregoing — c e quir e m e nt e — &lva-Ll — aot — apply wh e r e — c uch d e v i c es — hav e
2 t^»e« — cemoved — t^^x — the purpose — oi — conv e rting — th e motor v e hic le — 1«
3 o p e rat e on natura l g^* l i qu i fi e d p e trol e um g*«^ Oth e r
4 modifications — c^£ — e mi ssi on — control — dev i c es — &hAl4 — be — approv e d — by
5 -tive — Environmental — Managem e nt — Commi ssi on — b e for e — ft« — i n s p e ction
6 c e rt i f i cat io n is — iss u e d .
7 Tii« — inspection — r e quir e m e nt s — her ei n — provid e d — f-«-r — &h^ll — n^t
8 e x c ee d th e s t a nd a rd s provid e d i n th e curr e nt G e n e ral Statut es for
9 s uch e qu i pm e nt .
10 (b) Emissions. — Wh e n r e quired pur s uant to G . S . 2 - 1 2 8 .2 , and
11 as a condit i on for approva l c e rtificat e i ssuanc e und e r subs e ct i on
12 ( a) &£ this section, emi ss ion c ontro l d e vice s and — e xh a u s t
13 emissions 6ii*li be insp e ct e d ft»d siMtil comply — wi-tb tho se
14 stand a rds e ct abli ch e d pursu a nt to G . S . 2 -12 8 .2 on 1975 and later
15 m o d el g asoli ne - pow e r ed v e hic les e xc l ud i ng th e curr e nt y e ar mod e l
16 ^tnd-, 1« tbi-s end-, tbe Commi ss ion e r oi M*t«j; V e h i cl es i-s
17 a uthori ze d t o ado pt a n d e nforc e euch ru les and r e gulations a s may
18 b e n e c essa ry t o carry out th e int e nt a nd purpo se of this s e ction .
19 Prov i d e d th a t m o torcyc le s as de fin e d i n G . S . 2 - 4 . 01( 22 ) a n d G . S .
20 20-4 .01(27 )d — sbAXl — no* — be — s ubj e ct — to — tbe — r e quir e m e nt s — oi — tbi«
21 s ub se ction . An emissions inspection of a motor vehicle consists
22 of a visual inspection of the vehicle's emission control devices
23 to determine if the devices are present, are properly connected,
24 and are the correct type for the vehicle and an analysis of the
25 exhaust emissions of the vehicle to determine if the exhaust
26 emissions meet the standards for the model year of the vehicle
27 set by the Environmental Management Commission. To pass an
28 emissions inspection a vehicle must pass both the visual
29 inspection and the exhaust emissions analysis. When an emissions
30 inspection is performed on a vehicle, a safety inspection must be
31 performed on the vehicle as well.
32 (c) Reinspection After Failure. — The scope of a reinspection
33 of a vehicle that has been repaired after failing an inspection
34 is the same as the original inspection unless the vehicle is
35 presented for reinspection within 24 hours of failing the
36 original inspection. If the vehicle is presented for
37 reinspection within this time limit and the inspection the
38 vehicle failed was a safety inspection, the reinspection is
39 limited to an inspection of the equipment that failed the
40 original inspection. If the vehicle is presented for
41 reinspection within this time limit and the inspection the
42 vehicle failed was an emissions inspection, the reinspection is
43 limited to the portion of the inspection the vehicle failed and
93-LJZ-35 Page 13
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 any other portion of the inspection that would be affected by
2 repairs made to correct the failure.
3 "S 20-183.4. Li c e n si ng — of — sa f e ty — e quip me nt — i n s p e ction — s t a t i on s .
4 License required to perform safety inspection; qualifications for
5 license .
6 (a) License Required. — A safety inspection must be performed
7 by one of the following methods:
8 ( 1 ) At a station that has a safety inspection station
9 license issued by the Division and by a mechanic
10 who is employed by the station and has a safety
11 inspection mechanic license issued by the Division.
12 ( 2 ) At a place of business of a person who has a safety
13 self-inspector license issued by the Division and
14 by an individual who has a safety inspection
15 mechanic license issued by the Division.
16 (b) Station Qualifications. — An applicant for a license as a
17 safety inspection station must meet all of the following
18 requi rements ;
19 ( 1 ) Have a place of business that has adequate
20 facilities, space, and equipment to conduct a
21 safety inspection.
22 ( 2 ) Regularly employ at least one mechanic who has a
23 safety inspection mechanic license.
24 (c) Mechanic Qualifications. — An applicant for a license as a
25 safety inspection mechanic must meet all of the following
26 requi rements :
27 ( 1 ) Have successfully completed an 8-hour course
28 approved by the Division that teaches students
29 about the safety equipment a motor vehicle is
30 required to have to pass a safety inspection and
31 how to conduct a safety inspection.
32 ( 2 ) Have a drivers license.
33 ( 3 ) Be of good character and have a reputation for
34 honesty.
3 5 (d) Self-inspector Qualifications. — An applicant for a
36 license as a safety self-inspector must meet all of the following
3 7 requi rements ;
38 ( 1 ) Operate a fleet of at least 10 vehicles that are
39 subject to a safety inspection.
40 ( 2 ) Regularly employ or contract with an individual who
41 has a safety inspection mechanic license and who
42 will perform a safety inspection on the vehicles
43 that are part of the self-inspector's fleet.
Page 14 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Evecy person, £i-t4B — o-t ag e ncy — w i th — e mploy ees m ee ting tb«
2 following — qualifications — c hal l , upon — app l ication, — be — i**««d — a
3 license — designating — the — per s on, f-w4ii — &* — agency — a« — a — s af e ty
4 e quipm e nt — i n s p e ction — s tation ;
5 ( 1 ) Be of good charact e r and hav e a good r e putation for
6 hon es ty .
7 ( 2 ) Have adequate know le dg e oi tii« e quipm e nt
8 requirements — of — the — motor — v e hicl e — l*w€ — &i — W^M^th
9 Carolina .
10 ( 3 ) Se ftbi« — to — c a tisfactor i ly — conduct — the — mechanical
11 inspection r e quired by thi s Part .
12 ( 4 ) H a v e ad e quat e faci l ities a s to s pac e an d e qu i pm e nt
13 la e-tJ^e* to — check — &A«h — ©^ — the — ir4«mfi — &i — sa f e ty
14 e quipment li s t e d h e r e in .
15 ( 5 ) H*v« a general knowl e dg e o-f m^twi v e h i c le s
16 sufficient 1« r e cogniz e a — m e chanica l co nd i t i on
17 wh i ch is not s af e.
18 Any person, — firm or — ag e ncy m e eting — the — ftb©v« — r e quir e m e nt s — aftd
19 d esi r i ng t o be l ic e n se d a s a motor v e hic le i nsp e ction ctat io n m a y
20 app l y to th e Comm issi on e r of Motor V e h i cl es on forme prov i d e d by
21 th e Commi ssi on e r . — Th e Commi ss ion e r — frbAii — c*a&« — an i nv e st i gat i on
22 t o b e mad e as to th e applicant's qual i f i cat i ons, — and i f, — i n th e
23 opinion oi tiie Commis si on e r, the applicant fulf ills swih
24 qua li fi c ation s , — he — siwuLl — jr«-&ue — a — c e rtific a t e — of — appo i ntm e nt — te
25 ^ueh — p e r s on , — fj^WB — <wp — ag e ncy — a* — a — s af e ty — e quipm e nt — insp e ction
26 s t a tion . — ^uch — a ppo i ntment — &1ia11 — be — i ss u e d — without — c harg e — aftd
27 s hall b e e ffect i v e unt il canc e l ed by r e qu es t of lic e nc oo o r until
28 revok e d — o-t — s u s p e n de d — by — the — Comm iss ion e r . — Aay — li c e n see — who se
29 li c e n se — h*45 — b**fl — r e vok e d — o-* — su s p e nd e d — (^ — any — app li cant — who se
30 app l ic a t io n ha s bee n r e fu sed may, — with i n 10 day s — from th e not i ce
31 c^£ — &u«45 — r e voc a t io n, — s u s p e n si on — &t — r e fu sa l , r e qu es t — a — h e ar i ng
32 b e for e th e Comm iss i o n e r an d , — i n s uch cases , — th e h e aring s ha l l be
33 conduct e d with i n 10 d a y s o f — r e c e ipt of r e qu es t for — such h e aring .
34 ^ihe — Commi ss ion e r , — f o llowing — &UGh — h e ar i ng, — ro*y — r es c i nd — the — ord e r
35 o4 — s u s p e n sio n , — r e vocati o n or — the — r e fu s a l — to — i ss u e — l i c e n se , — o-t — he
36 m*y — affirm — tbe — pr e v i ou s — o*d«-t — o-f — r e voc a tion, susp e n si on — o-t
37 r e fu s al . — Any — app li cant — o-t — licen see — aggri e v e d — by — the — d e c is ion — oi
38 the Commi ss ion e r may, — following s uch d e c isi on, — fil e a p e tit i on i n
39 -tbe — Sup e r i or — Coui-t — oi — W«Ute — County — o< — iM — the — county — wh e r e in
40 app li cant — o-t — lic e n see — r es id es . — Suoi» — p e t i tion — &hAl-l — r e c i t e — the
41 fa c t that — the — admini s trat i v e — r e m e dy, — a s prov i d e d ab o v e , — ha s b ee n
42 ex hau s t e d . Pr o v i d e d, th^^t — no r es tra i n i ng — o-t4** sltaJrl i-&*u«
43 ag a in s t — the — Di v is i o n of Mot o r V e hicl es — uftd** — thi^ — se ct io n unt i l
93-LJZ-35 Page 15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 a n d un lace th e Di v isio n s h al l hav e h a d at leas t fiv e da y s ' — n o t ice
2 o £ th e p e t i t io n e r' s i nt e nt i on to see k s uch re s tra i n i ng o c de r .
3 Tiie — Comm issio n e r — Hway — desi gnat e — tiie — S-ta-t* — o-t — s^ny — po li t i c a l
4 s ub di v isi on — th e r e of — o-c — s^n^ — p e r s on, — ti-tro — o-t — corpor a t i on — a-s — se lf -
5 i n s p e ct o r s — to-t — the — s-ol^e — purpo se — oi — i n s p e ct i ng — v e hic les — owfve^J — cm;
6 o p e r a t ed — by — &u«h — a g e nc ies , — p e r s on s , — f i rm s , — o-r — corpor a t i on s — s-o
8 " S 20-183. 4A. License required to perform emissions inspection;
9 qualifications for license.
10 (a) License Required. — An emissions inspection must be
11 performed by one of the following methods;
12 ( 1 ) At a station that has an emissions inspection
13 station license issued by the Division and by a
14 mechanic who is employed by the station and has an
" "^ emissions inspection mechanic license issued by the
15
16 Division.
17 ( 2 ) At a place of business of a person who has an
18 emissions self-inspector license issued by the
19 Division and by an individual who has an emissions
2 inspection mechanic license.
21 (b) Station Qualifications. — An applicant for a license as an
22 emissions inspection station must meet all of the following
23 requi rements :
2 4 ( 1 ) Have a license as a safety inspection station.
2 5 ( 2 ) Have an emissions analyzer approved by the
26 Environmental Management Commission.
27 ( 3 ) Have equipment to transfer information on emissions
28 inspections to the Division by electronic means.
29 ( 4 ) Regularly employ at least one mechanic who has an
30 emissions inspection mechanic license.
31 (c) Mechanic Qualifications. — An applicant for a license as
32 an emissions inspection mechanic must meet all of the following
33 requi rements ;
34 ( 1 ) Have a license as a safety inspection mechanic.
35 ( 2 ) Have successfully completed an 8-hour course
36 approved by the Division that teaches students
37 about the causes and effects of the air pollution
38 problem, the purpose of the emissions inspection
39 program, the vehicle emission standards established
40 by the federal Environmental Protection Agency, the
41 emission control devices on vehicles, how to
42 conduct an emissions inspection using an emissions
43 analyzer approved by the Environmental Management
44 Commission, and any other topic required by 40
Pa9e 16 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 C.F.R. § 51.367 to be included in the course.
2 Successful completion requires a passing score on a
3 written test and on a hands-on test in which the
4 student is required to conduct an emissions
5 inspection of a motor vehicle.
6 (d) Self-inspector Qualifications. — An applicant for a
7 license as an emissions self-inspector must meet all of the
8 following requirements:
9 ( 1 ) Have a license as a safety self-inspector.
10 (2 ) Operate a fleet of at least 10 vehicles that are
11 subject to an emissions inspection.
12 ( 3) Have or have a contract with a person who has an
13 emissions analyzer approved by the Environmental
14 Management Commission.
15 ( 4 ) Regularly employ or contract with an individual who
16 has an emissions inspection mechanic license and
17 who will perform an emissions inspection on the
18 vehicles that are part of the self-inspector's
19 fleet.
20 " S 20-183. 4B. Application for license; duration of license;
21 renewal of mechanic license.
22 (a) Application. — An applicant for a license issued under
23 this Part must complete an application form provided by the
2 4 Division. The application must contain the applicant's name and
25 address and any other information needed by the Division to
26 determine whether the applicant is qualified for the license.
27 The Division must review an application for a license to
28 determine if the applicant qualifies for the license. If the
29 applicant meets the qualifications, the Division must issue the
30 license. If the applicant does not meet the qualifications, the
31 Division must deny the application and notify the applicant in
32 writing of the reason for the denial.
33 (b) Duration of License. — A safety inspection mechanic
34 license expires four years after the date it is issued. An
35 emissions mechanic inspection license expires two years after the
36 date it is issued. A safety inspection station license, an
37 emissions inspection station license, and a self-inspector
38 license are effective until surrendered by the license holder or
39 suspended or revoked by the Division.
4 (c) Renewal of Mechanic License. — A safety or an emissions
41 inspection mechanic may apply to renew a license by filing an
42 application with the Division on a form provided by the Division.
43 To renew an emissions inspection mechanic license, an applicant
44 must have successfully completed a 4-hour emissions refresher
93-LJZ-35 Page 17
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 course approved by the Division within nine months of applying
2 for renewal. Successful completion requires a passing score on a
3 written test and on a hands-on test in which the student is
4 required to conduct an emissions inspection of a motor vehicle.
5 " 5 20-183. 4C. When a vehicle must be inspected.
6 A vehicle that is subject to a safety inspection, an emissions
7 inspection, or both must be inspected as follows;
8 ( 1 ) A new vehicle must be inspected before it is
9 offered for sale at retail in this State.
10 ( 2 ) A used vehicle must be inspected before it is
11 offered for sale at retail in this State by a
12 dealer at a location other than a public auction.
13 ( 3 ) A used vehicle that is offered for sale at retail
14 in this State by a dealer at a public auction must
15 be inspected before it is offered for sale unless
16 it has an inspection sticker that was put on the
17 vehicle under this Part and does not expire until
18 at least nine months after the date the vehicle is
19 offered for sale at auction.
2 ( 4 ) A used vehicle acquired by a resident of this State
21 from a person outside the State must be inspected
2 2 within 10 days after the vehicle is registered with
2 3 the Division.
2 4 ( 5 ) A vehicle owned by a new resident of the State who
2 5 transfers the registration of the vehicle from the
26 resident's former home state to this State must be
2 7 inspected within 10 days after the vehicle is
2 8 registered with the Division.
2 9 ( 6 ) A vehicle that has been inspected in accordance
3 with this Part must be inspected by the last day of
31 the month in which the inspection sticker on the
32 vehicle expires, unless another subdivision of this
3 3 section requires it to be inspected sooner.
3 4 " S 20-183. 4D. Procedure when a vehicle is inspected.
3 5 (a) Receipt. — When a safety inspection mechanic or an
36 emissions inspection mechanic inspects a vehicle, the mechanic
37 must give the person who brought the vehicle in for inspection an
38 inspection receipt. The inspection receipt must state the date
39 of the inspection, identify the mechanic performing the
40 inspection, identify the station or self-inspector for whom the
'11 inspection was performed, and list the components of the
^12 inspection performed and indicate for each component whether the
43 vehicle passed or failed. A vehicle that fails a component of an
Pa9e 18 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 199 3
1 inspection may be repaired at any repair facility chosen by the
2 owner or operator of the vehicle.
3 (b) Sticker. — When a vehicle that is subject to a safety
4 inspection only passes the safety inspection, the safety
5 inspection mechanic who performed the inspection must put an
6 inspection sticker on the windshield of the vehicle at the place
7 designated by the Division. When a vehicle that is subject to
8 both a safety inspection and an emissions inspection passes both
9 inspections or passes the safety inspection and has a waiver for
10 the emissions inspection, the emissions mechanic performing the
11 inspection must put an inspection sticker on the windshield of
12 the vehicle at the place designated by the Division.
13 (b) Content of Sticker. — An inspection sticker issued for a
14 vehicle that is subject to a safety inspection only must be a
15 different color than an inspection sticker issued for a vehicle
16 that is subject to both a safety and an emissions inspection. An
17 inspection sticker must indicate when it expires, must be printed
18 with a unique serial number and an official program seal, and
19 must be counterfeit resistant. The side of an inspection sticker
20 that is readable from the interior of a vehicle must contain the
21 following information;
22 ( 1 ) The date the inspection was performed.
23 ( 2 ) The odometer reading when the inspection was
24 performed.
25 ( 3) The signature, initials, or other identification of
26 the mechanic who performed the inspection and put
27 the sticker on the windshield.
28 (d) When Sticker Expires. — An inspection sticker put on a
29 vehicle that did not have an inspection sticker issued under this
30 Part when it was brought in for inspection expires at midnight on
31 the last day of the 12th month after the month the inspection
32 sticker is put on the vehicle. An inspection sticker put on a
33 vehicle that had an inspection sticker that was put on under this
34 Part when it was brought in for inspection expires as follows;
3 5 (1) If the expiration date of the inspection sticker
36 the vehicle had when it was brought in for
37 inspection is less than 12 full months from the
38 date of the inspection, the inspection sticker
39 expires at midnight on the last day of the 12th
4 month after the month the inspection sticker is put
41 on the vehicle.
4 2 ( 2 ) If the expiration date of the inspection sticker
4 3 the vehicle had when it was brought in for
4 4 inspection is 12 or more months from the date of
93-LJZ-35 Page 19
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 the inspection, the inspection sticker expires one
2 year after the expiration date of the inspection
3 sticker the vehicle had when it was brought in for
4 inspection, regardless of whether there are 12
5 months in this period.
6 "S 20-183.5. S up e rv isi on o £ sa f e ty e quipm e nt i n s p ec t io n s t a t io n s.
7 When a vehicle that fails an emissions inspection may obtain a
8 waiver from the inspection requirement.
9 Wh e n — a — p e r s on, f-i-wn — o-c — ag e ncy — i* — d esi gnat e d — a« — a — sa f e ty
10 e qu i pm e nt — i n s p ec t i on — s tat i on — trhe — Commi ssi on ei r — of — Motor — Veh i cl es
11 s ha ll — r e c o rd — sucii — appo i ntm e nt — a^vd — sitail — c-aws-e — p e riod ic — c h e ck s — to
12 be — Rwa4« — to de t e rm i n e — Uia-t — i n s p e ct i on s — a-t* — b ei ng — conduct ed — ifl
13 a cc o rd a nc e — w i th — thi* — Part , — aftd — &iiAl4 — ca-u-se — inv es tigat i on s — to — be
14 mA4e of bona fi4e complaint s r e c e iv e d r e gard i ng any &u«i»
15 i n s p e ct io n — s t a t io n . — Xbe — Di v is ion — &b«tXl — c onduct — adm i n is trative
16 au di ts .
17 (a) Requirements. — The Division may issue a waiver for a
18 vehicle that meets all of the following requirements;
19 ( 1 ) Fails an emissions inspection because it passes the
20 visual inspection part of the inspection but fails
21 the exhaust emissions analysis part of the
22 inspection.
23 ( 2 ) Has documented repairs costing at least the waiver
24 amount made to the vehicle to correct the cause of
25 the failure. The waiver amount is seventy-five
26 dollars ($75.00) if the vehicle is a pre-1981 model
27 and is two hundred dollars ($200.00) if the vehicle
28 is a 1981 or newer model.
29 ( 3 ) Is reinspected and again fails the inspection
30 because it passes the visual inspection part of the
31 inspection but fails the exhaust emissions analysis
32 part of the inspection.
33 ( 4 ) Meets any other waiver criteria required by 40
34 C.F.R. § 51.360.
35 (b) Procedure. — To obtain a waiver, a person must contact a
36 local enforcement office of the Division. Before issuing a
37 waiver, an employee of the Division must review the inspection
38 receipts issued for the inspections of the vehicle, review the
39 documents establishing what repairs were made to the vehicle and
40 at what cost, review any statement denying warranty coverage of
41 the repairs made, and do a visual inspection of the vehicle, if
42 appropriate, to determine if the documented repairs were made, j
4 3 The Division must issue a waiver if it determines that the |
44 vehicle qualifies for a waiver. A person to whom a waiver is *
Page 20 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 issued must present the waiver to the self-inspector or
2 inspection station performing the inspection to obtain an
3 inspection sticker.
4 (c) Repairs. — The following repairs and their costs cannot be
5 considered in determining whether the cost of repairs made to a
6 vehicle equal or exceed the waiver amount;
7 ( 1 ) Repairs covered by a warranty that applies to the
8 vehicle.
9 {2}_ Repairs needed as a result of tampering with an
10 emission control device of the vehicle.
11 ( 3) If the vehicle is a 1981 or newer model, repairs
12 made by an individual who is not engaged in the
13 business of repairing vehicles.
14 (d) Sticker Expiration. — An inspection sticker put on a
15 vehicle after the vehicle receives a waiver from the requirement
16 of passing the emissions inspection expires at the same time it
17 would if the vehicle had passed the emissions inspection.
18 "S 20-183.6. Coanissionec of Motac V e h i cl ag to oc t ab l ie h
19 procedures; un l awful po eeess ion, e t c. , of ce rt i f ic at es.
20 Businesses that replace windshields must register with Division
21 to get inspection stickers.
22 -(-a^ Xh% Commi ss ion e c of Moto* V e h i c les &iwul4 e st a bl is h
23 proc e dur es — fo< — the — contro l , distribut i on, &*le-, r e fund, and
24 d is play — o-f — c e rt i ficat es — and — to* — the — a ccounting — fo< — proc ee d s — of
25 th ei r — wule-, — con s i s t e nt w i th thic Art i c le. — I t sh all b o un la T^fi i l
26 know i ng l y to po ssess , aff ix , tran s f e r , r e mov e , imitat e ot
27 r e produc e — an — i n s p e ction — c e rtificat e , — e x ce pt by dir e ction o f — the
28 Commi ss ion e r of Motor V e hicl es und e r th e t e rm s of thi s Articl e.
29 (b) Notwith s t a nd i ng any oth e r prov isi on of this A rt i c le , — those
30 who — r e plac e — w i nd s hi e ld s — in — motoj;^ — v e hic l e s — &hal-l — pl-aoe — on — the
31 r e p lace m e nt wind s hi el d an i n s pe c t i on ce rtif i cat e having th e — &*ffie
32 ex p i rat io n — da-te — as — the — certific a t e — att a ch e d — to — the — wind s h iel d
33 remov ed and &hAll r e tain the c e rt i f i c a t e a tta c h e d — to the
34 wind s h ie l d r e mov e d until 30 d ay s aft e r th e e xpir a tion th e r e of . — tn
35 a d di tion to the authority gr a nt ed in cube e cti o n (-a-J-r the
36 Comm issi on e r — is h e r e by a uthoriz e d to adopt and e nf o rc e s u c h rul es
37 And — r e gu l at i on s — as — m a y be n e c essa ry t o — carry out — th e pr o vi si on s
38 o f th is — s ect i on .
39 A person who is engaged in the business of replacing
40 windshields on vehicles that are subject to inspection under this
41 Part may register with the Division to obtain replacement
42 inspection stickers for use on replaced windshields. A
4 3 replacement inspection sticker put on a windshield that has been
4 4 replaced must contain the same information and expire at the same
93-LJZ-35 Page 21
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 time as the inspection sticker it replaces. A person who puts a
2 replacement inspection sticker on a replaced windshield must
3 remove the inspection sticker from the windshield that was
4 replaced and keep the removed inspection sticker until 30 days
5 after it expires.
6 A person registered under this section must keep records of
7 replacement stickers put on replaced windshields and must be able
8 to account for all inspection stickers received from the
9 Division. The Division may suspend or revoke the registration of
10 a person under this section if the person fails to keep records
11 required by the Division or is unable to account for inspection
12 stickers received from the Division. An auditor of the Division
13 may review the records of a person registered under this section
14 during normal business hours.
15 " S 20-183. 6A. Administration of program; duties of license
16 holders.
17 (a) Division. — The Division is responsible for administering
18 the safety inspection and the emissions inspection programs. In
19 exercising this responsibility, the Division must:
20 ( 1 ) Conduct performance audits, record audits, and
21 equipment audits of those licensed to perform
22 inspections to ensure that inspections are
23 performed properly.
24 ( 2 ) Ensure that Division personnel who audit license
25 holders are knowledgeable about audit procedures
26 and about the requirements of both the safety
27 inspection and the emissions inspection programs.
28 ( 3 ) Perform an emissions inspection on a vehicle when
29 requested to do so by a vehicle owner so the owner
30 can compare the result of the inspection performed
31 by the Division with the result of an inspection
32 performed at an emissions inspection station.
33 ( 4 ) Investigate complaints about a person licensed to
34 perform inspections and reports of irregularities
35 in performing inspections.
36 ( 5 ) Establish written procedures for the issuance of
37 inspection stickers to persons licensed to perform
38 inspections .
39 ( 6 ) Submit information and reports to the federal
Environmental Protection Agency as required by 40
40
41 C.F.R. Part 51.
4 2 (b) License Holders. — A person who is licensed by the
43 Division under this Part must post the license at the place
44 required by the Division and must keep a record of inspections
Page 22 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 performed. The inspection record must identify the vehicle that
2 was inspected, indicate the type of inspection performed and the
3 date of inspection, and contain any other information required by
4 the Division. A self-inspector or an inspection station must
5 send its records of inspections to the Division in the form and
6 at the time required by the Division. An auditor of the Division
7 may review the inspection records of a person licensed by the
8 Division under this Part during normal business hours.
9 "S 20-183.7. Charges — £oc — i nspection s — and — certif i cat es ; — sa f e ty
10 equipment — inspection — s t a t io n — records . Fees for performing an
11 inspection and putting an inspection sticker on a vehicle; use of
12 civil penalties.
13 (a) Fee Amount. — E very — saf e ty e quipm e nt — insp e ction — station
14 s h a ll c harg e a f ee of six do l lar s and tw e nty - fiv e c e nts — ( $ 6 .2 5)
15 effective October — 1-, 1990; a«d — a — f*e — of — e-i^jivfe — dol l ar s — »«d
16 twenty-five c«4vt€ ($8 .2 5) e ff e ctiv e O ctober i^ ^ 993, f*t
17 inspecting — a — nw^to* — v e h ic l e — to — d e term i n e — c ompl i anc e — with — th«
18 s af e ty in s p e ct io n r e qu i r e m e nt s of this Art i c le and sha ll g i v e the
19 vehicle — operator — a — d*t*d — r e c e ipt, — i nd i c a t i ng — the — art i c les — and
20 e quipm e nt appr o v e d and di s approv e d . At any tim e within 9 days
21 thereafter, — when — the — r e c e ipt — ts — pre se nt e d — to — the — insp e ction
22 station — which — issued — it — with — a — r e qu es t — fo* — r o incpecti o n , — th*t
23 i n s p e cti o n — s t a t io n — &i4*14 — r ei nep e ct — the — v e h i cl e — a-fc — no — charg e.
24 When e v e r — a ny v e hicl e — i* — approv e d, — the — i nsp e ction — station — &iiaa-l
25 obt*ifl — an — additional — f*e — of — one — doiia* — ($ 1.00 ) — f<« — a — vaiid
26 i n s p e ct i on c e rtif i cat e , an d a ffi x th e c e rtific a t e to that v e h i cle
27 or o therw ise d oc um e nt th e i s s u a nc e o f th e c e rtif i cat e in a m a nn e r
28 pr es cr i b ed by th e C o mmicc io n e r o f M o tor V e hic le s . The following
29 fees apply to an inspection of a vehicle and the issuance of an
30 inspection sticker;
31 Type Inspection Sticker
32 Safety Only $ 8.25 $1-00
33 Emissions and Safety 17.00 2.40.
34 The fee for performing an inspection of a vehicle applies when
35 an inspection is performed, regardless of whether the vehicle
36 passes the inspection. The fee for an inspection sticker applies
37 when an inspection sticker is put on a vehicle.
38 A vehicle that is inspected at an inspection station and fails
39 the inspection is entitled to be reinspected at the same station
40 at any time within 45 days of the failed inspection without
41 paying another inspection fee.
4 2 ( al ) — Pa* — i n s p e ct i on o f v e hicl es — requir e d to b e in s p e ct ed un de r
43 -tiie — in s p e ct io n/ma i nt e nanc e pr o vi s ion s — o f C. S . — 20-183 . 3(b), — e v e ry
4 4 sa f e ty — e quipm e nt in s p e ction s tat io n — &h*l-l ch a rg e a tee — oi
93-LJZ-35 Page 23
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 th i rt ee n dolla r s ( $1 3 .0 0) e ff e ct i v e Octob e ir 1 , — 1 990; an d a f ee of
2 se v e nt ee n dolla r s ( $1 7 . 00 ) e ff e ct i v e Octob e r 1-, 1 99 3 , f-ot
3 in s p e ct i ng — a — m o tor — v e hicl e — to — de t e rm i n e — comp l ianc e — w i th — the
4 sa f e ty i n s p e ct i on — r e qu i r e m e nt s and th e e xhau s t e m iss ion s tandard s
5 pur s u a nt to tive i n s pect i on/ma i nt e nanc e r e qui r e m e nt s q-£ th-i-&
6 A rt icle — a«d — s4i*Xl — g i v e — tive — v e h i cl e — op e rator — a — dat e d — r ecei pt
7 i n di c a t i ng th e a rt i cl es and e quipm e nt a pprov e d or d isa pprov e d and
8 wh e th e r — the — v e h icle — me-t — th« — e mi ss ion — control — s tandard s . I-f — the
9 v e h icle — ir* — disa pprov e d, — a-t — ft»y — time — within — 3-0 — day s — th e r ea ft e r
10 wh e n — tiie — r e c ei pt — i-e — pr ese nt e d — to — tii« — i n s p e ction — s tat i on — which
11 iss u e d — irt — w i th — a r e qu es t — to-t r ei n s p e ction , that — in s p e ct i on
12 s t a t i on — s h all — r ei n s p e ct — ttve — v^ e h i c 1 e — a-t — no — c harg e . Wh e n e v e r — any
13 v e h i c le — i-s — a ppr o v e d, the — i n s p e ct i on — s tat i on — sivail — obt ai n — ao
14 addi t i on al — f ee o f two dol l ar s — and forty c e nt s — ($ 2. 40) — for a va l id
15 i n s p e ct io n c e rtificat e cov e ring bo-tii the s af e ty in s p e ction
16 r e qu i r e m e nt s aod the e mi ss ion control i n s p e ct i on/m ai nt e n a nce
17 r e qu i r e m e nt s aod — ai-f-irj« the c e rt i f ica t e to ti^a-t — v e h i c le o^
18 o th e rw ise — do c um e nt — the — iss u a nc e — of — the — c e rtificat e — i-n — a — mann e r
19 pr es cr i b e d b y th e Comm iss ion e r of Motor V e hic les.
20 (b) Self-inspector. — S el f - in s p e ct o r — s tat i on s — l ic e n se d — und e r
21 C. S . — 20- 1 83 . 4 — 9^*e — e x e mpt — f*<«n — the — in s p e ct i ng — £*« — prov is ion s — &£
22 s ub se ct io n — t-a-) — abo v e , — but — &lwul-l — pAy — te — the — D i vi s ion — o^ — Motcu;
2 3 V e h i c le s — the — pr es crib e d — c e rtif i cat e — £^e — to-t — »*&h — i n s p e ction
24 c e rt i f i c a t e — iss u e d — by — i4^ The fee for an inspection does not
25 apply to an inspection performed by a self-inspector. The fee
26 for putting an inspection sticker on a vehicle applies to an
27 inspection performed by a self-inspector.
28 (c) Fee Distribution. Fees collected for inspection
29 c e rt i f i c a t oc stickers are payable to the Division of Motor
30 Vehicles. The amount of each fee listed in the table below shall
31 be credited to the Highway Fund, the Emissions Program Account
32 established in subsection (d) of this section, the Volunteer
33 Rescue/EMS Fund established in G.S. 58-87-5, the Rescue Squad
34 Workers' Relief Fund established in G.S. 58-88-5, and the
35 Division of Environmental Management of the Department of
36 Environment, Health, and Natural Resources:
37 Fund or A g e n c y F ee Impo se d Fee Imposed
38 Recipient UnHpr (^j iindpr (aU
39 Safety Only Emissions and
^^ Sticker Safety Sticker
41 Highway Fund .75 1. 80 . 0"0
42 Emissions Program Account . 00 1.80
43 Volunteer Rescue/EMS Fund .15 .15
44 Rescue Squad Workers' Relief
Page 24 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Fund .10 .10
2 Division of Environmental
3 Management .00 .35.
4 (d) Account. — E ach i n e p e ction s tation s hall maintain a c e cord
5 o-f — i n s p e ction s — p e cform e d, — in — a — t&«B — approv e d — by — the — D i v isi on — of
6 Motoc V e h i cl es , — for a p e riod o£ 18 month s and s uch r e coc ds s hall
7 be m ade av ailab l e — f** — in s p e ction by any l aw -e nforcem e nt off i c e r,
8 upon d e m a nd, — dur i ng normal bu si n e s s hour s. The Emissions Program
9 Account is created as a nonreverting account within the Highway
10 Fund. The Division shall administer the Account. Revenue in the
11 Account may be used only to fund the vehicle emissions inspection
12 and maintenance program.
13 (e) Civil Penalties. — Civil penalties collected under this
14 Part shall be credited to the Highway Fund as nontax revenue. "
15 "S 20-183.8. C o m m i EEJon e r o f Mot o r V e hi cles t o i ss u e r e gu l at i on s
16 s ubj e ct to a ppr o v a l of — G o v e rnor; p e nalti es t^t^ — v iola ti o n;
17 f i ctit io u s — o* — un l awful i n s p e ct i on — ce rtif ica t e ; 3 0- d a y — qf-AC«
18 p e r io d — fcot — ex p i r e d — i n s p e ct io n — ce rt i fic a t es . Infractions and
19 criminal offenses for violations of inspection requirements.
2 -(-a-) — It is — th e int e nt of th e Artic le that th e provi s ion s h e r e in
21 s ha ll — be — carr ie d — ou-t — by — the — Comm issi on e r — of — Mo-to* — V e hicl es — fo*
22 th« sa f e ty and conv e ni e nc e ©f tiie motoring pub li c . Th«
2 3 Comm issio n e r &h4uU hav e authority to pr o mu l gat e on l y su«t»
24 r e gu l at i ons a« a-t« — r e a s onably — n e c ess ary — fot — th« — purp ose — of
25 carry i ng o ut — th« — provi s ion s — of — th4r« — in s p e ct i on program, — but — Buch
26 r e gulat i ons — sital-l — not — be — e ff e ctiv e — urtti-1 — tbe — &Am« — hav e — be*fl
27 a pprov e d by th e Gov e rnor .
28 -(-b-) — Xii% — C o mm iss ion e r — of Mot o r V e hicl es — is — author i z ed — to e nt e r
29 iftto agr ee m e nt s or arrang e m e nt s w i th the duiy a uthoriz e d
30 r e pr ese ntativ es of otl4*< jur is d ic tion s wher e by tive sa f e ty
31 e qu i pm e nt — i n s p e ct io n — r e quir e d — uade-r — tivi-s — A rt i c le — may — be — wa i v e d
32 with — r es p ec t — to — v e hi cl e s — wbi-ci; — hav e — und e rg o n e — s ub s tant i a ll y
3 3 si mi l ar — s afety — e qu i pm e nt — in s p e ct i on s — ifl — such — oth e r — jur is dicti o n s
34 *ftd — for wh i ch v ali d — i n s p e cti o n — ce rtificat es — ttav^e — b«*o — iss u e d by
35 -sucii — o-tttej; — juri s d i ction s. — SuGh — agr ee m e nt s — o-t — arrang e m e nt s — &iia-14
36 pr o v i de that v e h i c les in s p e ct e d in th is Stat e and for which va l id
37 in s pection — c e rtificate s — hav e — b*«fl — i ss u e d — sivaU^ — be — acc o rd e d — a
38 si m il ar pr i v i l e g e — wh e n s ubj e ct to tb« Iaw-s of sucb — other
39 juri s d i ction s . — &aob — &u&h — agr ee m e nt — o-t — arrang e ment — s ha ll , — i-n — the
40 judgm e nt — of — th« — Commi ssi on e r, — be — ir« — the — b*«-t — i nt e r es t — of — this
41 S tat e a n d th e cit i z e n s th e r e of and s hal l b e fair and e quit abl e to
42 this — S-ta-te — aad — citiz e n s — th e r e of ; — and — a-14 — of — th« — s-ame — &ba-14 — b«
43 de t e rm i n e d — upon — the — ba sis an d — r e cogniti o n — of — the — b e n e f i t s — wh ic h
93-LJZ-35 Page 25
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 acc ru e — 1« — Uve — c i ti ze n s — c^f — tiu-s — Stat e — by — r e a s on — o-i, — tiie — a gr ee m e nt
2 o-c — a rr a ng e m e nt .
3 Xbe — C o mm issi on e r — i-s — a-i-s-o — a uthor ize d — 1« — promu l gat e — r^al-»« — a«d
4 r e gulat io n s prov i d i ng that th e s af e ty e qu i pm e nt i n s pect i on m a y b e
5 w ai %r e d — w i th — r es p e ct — to — a4ay — v e h i c le — wh i ch — ha-s — und e rgon e — a — si m il ar
6 i n s p e ct i on — La — a noth e r — jur i s d i ct i on — a^id — i-o^ — which — a — v ali d — and
7 curr e nt — i n s p ec t i on — c e rtif i cat e — h** — b ee n — i ss u e d — by — &uj^ — oth e r
8 juri s d i ct i on .
9 4-c^ — E xce pt — £o-r — tive — unauthorized — r e pr o duction — o-f — an — i n s p e ct i on
10 s t i ck e r, v i ol a t i on — o-f — any — provi si on — o-f — thi s — A rti c l e — ir* — an
11 i nfraction wh i ch carr ies a p e nalty of not mor e — than fifty do ll ar s
12 ($50 . 00) . — Xbe — un a uthoriz e d — r e product i on — of — an — in s p e ct i on — s t ic k e r
13 is a f o rg e ry und e r G . S . — 1 4 - 119 .
14 4-d-) — No p e r so n — tita-l-l — d is play or — ca-u*e — to b e di s p l ay ed or — p e rm i t
15 -to be d is pl a y ed upon any motor v e hic le any i n s p e ct i on
16 c e rt i f ica t e , — k now i ng — tiie — s-ame — to — be — f i ct i t i ou s — o-t — to — be — iss u e d
17 irO^ — a n o th e r m o t o r v e hicl e — o* — to b e — iss u e d w i thout — i n s p e cti o n — and
18 a pprova l — having — b»«n — VM^de^ — The — D i vi si on — L£ — h e r e by — authoriz e d — to
19 tnaJte — i mm e d ia t e — p ossessio n of — any — i n s p e ct i on — c e rt i fic a t e wh i ch — L&
2 f ictit io u c — o r wh ic h — h«us — b ee n — oth e rw ise — un l awful l y or — e rron e ou sl y
21 iss u e d o r wh i ch ha s b ee n unlawfu l ly u se d .
2 2 -(-e-) — Mo p e r s on s hal l b e convict e d of failing to d is p la y curr e nt
23 i nsp e ct io n — c e rt i fi c at e — a45 — provid e d — un4«-c — titi-s — Artic le — i-f — he
24 produ ces — irn — co«*-t — a-t — tbe — tiflie — o-f — his — tf-Ls^ — a — r e c e ipt — i-fi-om — a
2 5 li c e ns ed — mo-toj;^ — v e hic l e — in s p e ction — s tation — s how i ng — that — a — v al id
26 i n s p e ction ce rt i f i cat e wa s — i ss u e d for th e v e hic le involv e d w i thin
27 .3-0 — day s — a-f-te-c — e xpi ration — oi — the — pr e viou s — in s p e ction — c e rt i f icate
28 i ss u e d f o r th e v e h i c le.
2 9 -(-f-) — I t s h all b e un l awfu l — f o r any p e r so n t o a ttach an i n s p e ct i on
30 c e rtif i cat e — to a v e h i cl e — ii — he — k now s , — or h as — r e a so nab le — ground s
31 t« — kn o w, — tba-t — tive — r e qu i r e d — i n s p e ct i on — b«us — not — b**n — p e rform e d
32 a ccord i ng — to — Law^ — i nclu d ing — tAil^-s — and — r e gu l ation s — promu l gat e d by
3 3 th e Comm i se i on o r .
34 (a) Infractions. — A person who does any of the following
35 commits an infraction and, if found responsible, is liable for a
36 penalty of up to fifty dollars ($50.00);
37 ( 1 ) Operates a motor vehicle that is subject to
38 inspection under this Part on a highway or public
39 vehicular area in the State when the vehicle has
4 not been inspected in accordance with this Part, as
41 evidenced by the vehicle's lack of a current
4 2 inspection sticker or otherwise.
4 3 ( 2 ) Allows an inspection sticker to be put on a vehicle
4 4 owned or operated by that person, knowing that the
Page 26 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 199 3
1 vehicle was not inspected before the sti cker was
2 attached or was not inspected properly.
3 (3)_ Attaches an inspection sticker to a vehicle,
4 knowing or having reasonable grounds to know an
5 inspection of the vehicle was not performe d or was
6 performed improperly.
7 (b) Defenses to Infractions. — Any of th e following is a
8 defense to a violation under subsection (a) o f this section:
9 (1) The vehicle was continuously out of State for at
10 least the 30 days preceding the date the in spection
11 sticker expired and a current insp ection sticker
12 was obtained within 10 days after th e vehicle came
13 back to the State.
14 {2)_ The vehicle displays a dealer li cense plate or a
15 transporter plate, the dealer repossessed t^
16 vehicle or otherwise acquired the vehicle within
17 the last 10 days, and the vehicle is being driven
18 from its place of acquisition to the dealer 's place
19 of business or to an inspection station.
20 Xll The vehicle was in a state of disrepair and was not
21 driven for at least the thirty days preceding the
22 date the inspection sticker expired, th e owner
2 3 repaired the vehicle, and the vehicle is being
2 4 driven from the owner's residence or other place
2 5 where it was repaired to an inspection station.
26 j_42 The charged infraction is described in subdivision
27 (a)(1) of this section, the vehicle is subject to a
28 safety only inspection, and the vehicle owner
29 establishes in court that the vehicle was inspected
3 after the citation was issued and within 30 days of
31 the expiration date of the inspection s ticker that
32 was on the vehicle when the citation was issued.
33 (c) Felony. — A person who forges an inspection sticker
34 commits a Class I felony.
3 5 " S 20-183. BA. Civil penalties against motorists for emissions
36 violations.
37 The Division must assess a civil penalty against a per son who
38 owns or leases a vehicle that is subject to an emissions
39 inspection and who does any of the following;
4 (1) Fails to have the vehicle inspected within four
41 months after it is required to be inspected under
42 this Part.
43 (2) Instructs or allows a person to tamper with an
4 4 emission control device of the vehicle so as to
93-LJZ-35 Page 27
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 make the device inoperative or fail to work
2 properly.
3 ( 3 ) Incorrectly states the county of registration of
4 the vehicle to avoid having an emissions inspection
5 of the vehicle.
6 The amount of the penalty is one hundred dollars ($100.00) if
7 the vehicle is a pre-1981 vehicle and is two hundred twenty-five
8 dollars ($225.00) if the vehicle is a 1981 or newer model
9 vehicle .
10 " S 20-183. 8B. Civil penalties against license holders and
11 suspension or revocation of license for emissions violations.
12 (a) Kinds of Violations. — The civil penalty schedule
13 established in this section applies to emissions self-inspectors,
14 emissions inspection stations, and emissions inspection
15 mechanics. The schedule categorizes emissions violations into
16 serious (Type I), minor (Type II), and technical (Type III)
17 violations .
18 A serious violation is a violation of this Part or a rule
19 adopted to implement this Part that directly affects the emission
20 reduction benefits of the emissions inspection program. A minor
21 violation is a violation of this Part or a rule adopted to
22 implement this Part that reflects negligence or carelessness in
23 conducting an emissions inspection or complying with the
2 4 emissions inspection requirements but does not directly affect
25 the emission reduction benefits of the emissions inspection
26 program. A technical violation is a violation that is not a
27 serious violation, a minor violation, or another type of offense
28 under this Part.
29 (b) Penalty Schedule. — The Division must take the following
30 action for a violation;
31 ( 1 ) Type I. — For a first or second Type I violation
32 by an emissions self-inspector or an emissions
33 inspection station, assess a civil penalty of two
34 hundred fifty dollars ($250.00) and suspend the
35 license of the business for six months. For a
36 third or subsequent Type I violation within 10
37 years by an emissions self-inspector or an
38 emissions inspection station, assess a civil
39 penalty of one thousand dollars ($1,000) and revoke
40 the license of the business for two years.
41 For a first or second Type I violation by an
42 emissions inspection mechanic, assess a civil
4 3 penalty of one hundred dollars ($100.00) and
44 suspend the mechanic's license for six months. For
Page 28 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 199 3
1 a third or subsequent Type I violation within 10
2 years by an emissions inspection mechanic, assess a
3 civil penalty of two hundred fifty dollars
4 ($250.00) and revoke the mechanic's license for two
5 years .
6 ( 2) Type II. — For a first or second Type II violation
7 by an emissions self-inspector or an emissions
8 inspection station, assess a civil penalty of one
9 hundred dollars ($100.00). For a third or
10 subsequent Type II violation within 10 years by an
11 emissions self-inspector or an emissions inspection
12 station, assess a civil penalty of two hundred
13 fifty dollars ($250.00) and suspend the license of
14 the business for 90 days.
15 For a first or second Type II violation by an
16 emissions inspection mechanic, assess a civil
17 penalty of fifty dollars ($50.00). For a third or
18 subsequent Type II violation within 10 years by an
19 emissions inspection mechanic, assess a civil
20 penalty of one hundred dollars ($100.00) and
21 suspend the mechanic's license for 90 days.
22 (3) Type III. — For a first or second Type III
2 3 violation by an emissions self-inspector, an
24 emissions inspection station, or an emissions
25 inspection mechanic, send a warning letter. For a
26 third or subsequent Type III violation within 10
27 years by the same emissions license holder, assess
28 a civil penalty of twenty-five dollars ($25.00).
29 (c) Station or Self-inspector Responsibility. — It is the
30 responsibility of an emissions inspection station and an
31 emissions self-inspector to supervise the emissions mechanics it
32 employs. A Type I violation by an emissions inspector mechanic
33 is considered a Type I violation by the station or self-inspector
34 for whom the mechanic is employed. A Type II or III violation by
35 an emissions mechanic is not automatically a Type II or III
36 violation by the station or self-inspector for whom the mechanic
37 is employed. The Division may determine which Type II or Type
38 III violations by an emissions mechanic are also violations by
39 the station or self-inspector.
4 (d) Missing Sticlcers. — The Division must assess a civil
41 penalty against an emissions inspection station or an emissions
42 self-inspector that cannot account for an emissions inspection
43 sticker issued to it. P station or a self-inspector cannot
44 account for a sticker when the sticker is missing and the station
93-LJZ-35 Page 29
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 or self-inspector cannot establish reasonable grounds for
2 believing the sticker was stolen or destroyed by fire or another
3 accident .
4 The amount of the penalty is twenty-five dollars ($25.00) for
5 each missing sticker. If a penalty is imposed under subsection
6 (b) of this section as the result of missing stickers, the
7 monetary penalty that applies is the higher of the penalties
8 required under this subsection and subsection (b); the Division
9 may not assess a monetary penalty as a result of missing stickers
10 under both this subsection and subsection (b). Imposition of a
11 monetary penalty under this subsection does not affect suspension
12 or revocation of a license required under subsection (b).
13 " S 20-183. 8C. Acts that are Type I, II, or III emissions
14 violations.
15 ((a) Type I. — It is a Type I violation for an emissions self-
16 inspector, an emissions inspection station, or an emissions
17 inspection mechanic to do any of the following;
18 ( 1 ) Put an emissions inspection sticker on a vehicle
19 without performing an emissions inspection of the
2 vehicle or after performing an emissions inspection
21 in which the vehicle did not pass the inspection.
2 2 ( 2 ) Use a test-defeating strategy when conducting an
2 3 emissions inspection, such as holding the
24 accelerator pedal down slightly during an idle
2 5 test, disconnecting or crimping a vacuum hose to
2 6 effect a passing result, or changing the emission
27 standards for a vehicle by incorrectly entering the
28 vehicle type or model year to achieve a passing
29 result.
3 ( 3 ) Allow a person who is not licensed as an emissions
31 inspection mechanic to perform an emissions
^2 inspection for a self-inspector or at an emissions
33 station,
3 'J ( 4 ) Sell or otherwise give an inspection sticker to
3 5 another other than as the result of a vehicle
36 inspection in which the vehicle passed the
3 7 inspection or for which the vehicle received a
â– ^9 ( 5 ) Be unable to account for five or more inspection
40 stickers.
^^ ( 6 ) Perform a safety only inspection on a vehicle that
^2 is subject to both a safety and an emissions
4 3 inspection.
Page 30 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 199 3
1 ( 7 ) Transfer an inspection sticker from one vehicle to
2 another .
3 (b) Type II. — It is a Type II violation for an emissions
4 self-inspector, an emissions inspection station, or an emissions
5 inspection mechanic to do any of the following:
6 ( 1 ) Use the identification code of another to gain
7 access to an emissions analyzer.
8 (2) Keep inspection stickers and other compliance
9 documents in a place that is easily accessible by
10 the public.
11 (c) Type III. — It is a Type III violation for an emissions
12 self-inspector, an emissions inspection station, or an emissions
13 inspection mechanic to any of the following;
14 ( 1 ) Fail to post an emissions license issued by the
15 Division.
16 (2) Fail to send information on emissions inspections
17 to the Division at the time or in the form required
18 by the Division.
19 (d) Other Acts. — The lists in this section of the acts that
20 are Type I, Type II, or Type III violations are not the only acts
21 that are one of these types of violations. The Division may
22 designate other acts that are a Type I, Type II, or Type III
2 3 violation.
24 " S 20-183. BD. Suspension or revocation of license for safety
25 violations.
26 The Division may suspend or revoke a safety self-inspector
27 license, a safety inspection station license, and a safety
28 inspection mechanic license issued under this Part if the license
29 holder fails to comply with this Part or a rule adopted by the
30 Commissioner to implement this Part.
31 " S 20-183. 8E. Administrative and judicial review.
32 A person whose application for a license or registration is
33 denied, whose license or registration is suspended or revoked,
34 who is assessed a civil penalty, or who receives a warning letter
35 under this Part may obtain an administrative review of the action
36 by the Commissioner by filing with the Division a written request
37 for a hearing before the Commissioner. A request for a hearing
38 must be filed within 10 days after the person receives written
39 notice of the action for which a hearing is requested.
4 If the action that is the subject of a request for a hearing is
41 the suspension or revocation of an emissions self-inspector
42 license, an emissions inspection station license, or an emissions
43 inspection mechanic license, the Commissioner must hold the
44 hearing within 14 days after the Division receives the request.
93-LJZ-35 Page 31
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 If the action that is the subject of a request for a hearing is
2 not one of these actions, the Commissioner must hold a hearing
3 within 90 days after the Division receives the request.
4 After a hearing on the imposition of a monetary penalty against
5 a motorist for an emissions violation or on a Type I, II, or III
6 emissions violation by an emissions license holder, the
7 Commissioner must uphold any monetary penalty, license
8 suspension, license revocation, or warning required by G.S. 20-
9 183.8a or 20-183. 8B, respectively, if the Commissioner finds that
10 the motorist or license holder committed the act for which the
11 monetary penalty, license suspension, license revocation, or
12 warning was imposed. After a hearing on any other action, the
13 Commissioner may uphold or modify the action.
14 Article 4 of Chapter 150B of the General Statutes governs
15 judicial review of an administrative decision by the Commissioner
16 under this section. "
17 Sec. 2. The heading to Article 3A of Chapter 20 of the
18 General Statutes reads as rewritten:
19 "ARTICLE 3A.
2 " M o t o r V e h i c le La w o£ 1947 . Safety and Emissions Inspection
21 Program.
22 Sec. 3. Part 1 of Article 3A of Chapter 20 of the
23 General Statutes is repealed.
24 Sec. 4. G.S. 20-127(e) is repealed.
25 Sec. 5. G.S. 20-128. 2(b) is repealed.
26 Sec. 6. G.S. 20-384 reads as rewritten:
27 "S 20-384- S a f e ty — r e gu la ti o ns — a pplic a bl e — to — motor — ca rr ie r — and
28 pr i v a t e c a rr ie r v e h i c le c . Carriers must comply with safety rules
29 and regulations.
30 (a) Scope. — The Division a£ — Moto* — V e h i c les may promu l gate
31 adopt highway safety rules an d r e gu l at io n s for all for-hire motor
32 carrier vehicles and all private carrier vehicles engaged in
33 interstate commerce and intrastate commerce over the highways of
34 North Carolina whether common carriers, contract carriers, exempt
35 carriers, or private carriers.
36 (b) Infraction. — A motor carrier who fails to conduct a
37 safety inspection of a vehicle as required by 49 C.F.R. Part 396,
38 the federal Motor Carrier Safety Regulations, or who fails to
39 mark a vehicle that has been inspected as required by that Part
40 commits an infraction and, if found responsible, is liable for a
41 penalty of up to fifty dollars ($50.00). "
42 Sec. 7. Effective October 1, 1996, G.S. 20-54 reads as
43 rewritten:
Page 32 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 "S 20-54. Authority for refusing registration or certificate of
2 title.
3 The Division shall refuse registration or issuance of a
4 certificate of title or any transfer of registration upon any of
5 the following grounds:
That the The application contains -any a false or
fraudulent stat e m e nt iw; th** statement, the
applicant has failed to furnish required
information or reasonable additional information
requested by the D ivrieion or that Division, or the
applicant is not entitled to the issuance of a
certificate of title or registration of the vehicle
under this Art i cl e ; Article.
That the The vehicle is mechanically unfit or
unsafe to be operated or moved upon the highway s ;
highways.
That the The Division has reasonable ground to
believe that the vehicle is a stolen or embezzled
vehicle, or that the granting of registration or
the issuance of a certificate of title would
constitute a fraud against the rightful owner or
other another person h a ving who has a valid lien
up o n s uch v e h i c le ; against the vehicle.
That the The registration of the vehicle stands
suspended or revoked for any reason as provided in
the motor vehicle laws of this Stat e ; State.
Th a t th e The required fee has not been paid.
The vehicle is not in compliance with the emissions
inspection requirements of Part 2 of Article 3A of
this Chapter or a civil penalty assessed as a
result of the failure of the vehicle to comply with
that Part has not been paid. "
. 8. Effective October 1, 1996, G.S. 20-183. 8A, as
34 enacted by Section 1 of this act, reads as rewritten:
35 "S 20-183. 8A. Civil penalties against motorists for emissions
36 violations.
37 The Division must assess a civil penalty against a person who
38 owns or leases a vehicle that is subject to an emissions
39 inspection and who does any of the following:
40 (1) Fails to have the vehicle inspected within four
41 months after it is required to be inspected under
42 this Part.
43 (2) Instructs or allows a person to tamper with an
44 emission control device of the vehicle so as to
93-LJZ-35 Page 33
6
(1)
7
8
9
10
11
12
13
14
(2)
15
16
17
(3)
18
19
20
21
22
23
24
(4)
25
26
27
(5)
28
(6)
29
30
31
32
33
Sec
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 make the device inoperative or fail to work
2 properly.
3 (3) Incorrectly states the county of registration of
4 the vehicle to avoid having an emissions inspection
5 of the vehicle.
6 The amount of penalty is one hundred dollars ($100.00) if the
7 vehicle is a pre-1981 vehicle and two hundred fifty dollars
8 ($250.00) if the vehicle is a 1981 or newer model vehicle. As
9 provided in G.S. 20-54, the registration of a vehicle may not be
10 renewed until a penalty imposed under this subsection has been
11 paid. "
12 Sec. 9. Temporary Computer Matching. — From the
13 effective date of this act until October 1, 1996, the Division of
14 Motor Vehicles of the Department of Transportation shall ensure
15 motorist compliance with the emissions inspection requirements of
16 Part 2 of Article 3A of Chapter 20 of the General Statutes by the
17 following computer matching method:
18 (1) Determine from data supplied by emissions
19 inspection stations if each vehicle that is subject
20 to the emissions inspection requirements, and for
21 which the Division issues or renews a registration,
22 and has a current inspection sticker.
23 (2) Send a warning letter to the owner of each vehicle
24 that is not in compliance notifying the owner that
25 the vehicle is not in compliance, that the Division
26 will check to see if the vehicle is brought into
27 compliance within 30 days of the date the letter is
28 mailed, and that failure to comply will result in
29 revocation of the registration of the vehicle.
30 (3) Check to determine if a vehicle is brought into
31 compliance as required by the letter.
32 (4) Send a notice of violation and a notice of penalty
33 to the owner of a vehicle that has not been brought
34 into compliance in accordance with the first
35 letter. The letter must notify the owner that the
36 registration of the vehicle will be revoked
37 effective 30 days from the date the second letter
38 is mailed if the owner does not bring the vehicle
39 into compliance within that time and pay any
^0 penalty that is due. The Division must assess a
^1 civil penalty against the owner of a vehicle that
^2 was not inspected within four months of the time it
^3 was required to be inspected. The penalty is the
Page 34 93-LJZ-35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 amount set in G.S. 20-183. 8A, as enacted by Section
2 1 of this act.
3 (5) Revoke the registration and pick up the
4 registration plate for a vehicle whose owner has
5 has failed to bring the vehicle into compliance or
6 pay a required penalty within 30 days after the
7 second letter.
8 Sec. 10. The Joint Legislative Transportation Oversight
9 Committee shall review the definition of a transaction that is
10 set in the Current Operations Appropriations Act and establishes
11 the method by which branch agents of the Division of Motor
12 Vehicles of the Department of Transportation are reimbursed. The
13 review shall evaluate whether the definition will adequately
14 compensate branch agents for the time involved in denying a
15 vehicle registration and explaining the reason for the denial
16 when a vehicle registration is denied for failure to have an
17 emissions inspection or pay an emissions inspection civil
18 penalty. The review may include a review of the branch agent
19 compensation and time involved in similar activities, such as the
20 denial of a vehicle registration for failure to pay property
21 taxes. The Committee shall report its findings to the 1995
22 General Assembly.
23 Sec. 11. The Division of Motor Vehicles of the
24 Department of Transportation shall study the problem of the
25 unlawful transfer of a vehicle inspection sticker from one
26 vehicle to another. In studying this problem, the Division shall
27 consider whether the current design of the inspection sticker can
28 be improved so that an inspection sticker cannot be removed from
29 a vehicle without tearing or otherwise becoming unusable and
30 whether inspection stickers will be necessary when denial of
31 vehicle registration becomes effective October 1, 1996. The
32 Division shall also consider whether some vehicles, such as
33 public school buses, should be exempt from the requirement that a
34 vehicle display an inspection sticker to prevent vandalism of
35 buses that occurs when a person unlawfully removes an inspection
36 sticker from the windshield of a bus. The Division shall report
37 its findings to the Joint Legislative Transportation Oversight
38 Committee by December 1, 1994.
39 Sec. 12. Sections 1 through 6 of this act become
40 effective October 1, 1994. Sections 7 and 8 of this act become
41 effective October 1, 1996. The remaining sections of this act
42 are effective upon ratification.
93-LJZ-35 Page 35
Explanation of Proposal 1
EMISSIONS INSPECTION CHANGES
This proposal brings the State vehicle emissions inspection program into
comphance with federal law and makes administrative and technical
changes to both the emissions inspection pro-am and the safety inspection
program to enable the Division of Motor Vehicles (DMV) of the Department
of Transportation to administer the programs more efficiently. Most of the
changes become effective October 1. 1994; however, the computer matching
component of the motorist compliance provisions is effective upon ratifica-
tion and the registration denial component of these provisions becomes
effective October 1. 1996.
Currently, North Carohna is not in comphance with 40 C.F.R. Part 51, the
regulations adopted by the federal Environmental Protection Agency (EPA)
to implement the 1990 amendments to the federal Clean Air Act, and has
not been in comphance since January 1, 1994. If the State does not change
its law to comply with these regulations and submit to EPA a State
Implementation Plan concerning the emissions program, the State can be
sanctioned for its failure to comply.
There are two sanctions for failure to comply with 40 C.F.R. Part 51. They
are the withholding of federal highway funds, except safety funds, in the
emission counties and the imposition of a 2:1 offset requirement as a condi-
tion of the issuance of a new air discharge permit in the emission counties.
The sanction concerning federal highway funds can be imposed by EPA only
if the United States Department of Transportation concurs. The offset sanc-
tion can be imposed by EPA without the concurrence of any other agencv.
The emission counties are Wake, Durham, Orange, Guilford, Forsyth,
Mecklenburg, Gaston, Cabarrus, and Union.
The changes in the law are outlined below according to the type of change.
CHANGES NEEDED TO COMPLY WITH FEDERAL LAW
(1) Establishment of a dedicated, nonreverting fund to provide revenue for
the emissions inspection program: The proposal amends G.S. 20-183.7
to create the Emissions Program Account and to shift from the
Highway Fund to this Account the portion of the emissions inspection
sticker fee that currently goes to tne Highway Fund. The portion is
$1.80 of the $2.40 fee. For fiscal year 1993-94, the $1.80 is expected to
generate $2.8 million.
36
EXPLANATION OF PROPOSAL 1 (Continued)
(2) Establishment of a mechanism to deny or revoke the registration of a
vehicle that fails to comply with the emissions inspection requirements:
Section 9 of the proposal establishes a temporary computer matching
system to be in effect until October 1, 1996. Section 8 establishes an
automatic registration denial system effective October 1. 1996. The two
systems are included because automatic vehicle registration denial is
the best method but it cannot be implemented until DMV's vehicle
registration computer system is overhauled, which will not occur until
October 1. 1996. Consequently, until then, a different system must be
used.
(3) Monetary penalties against vehicle owners who do not comply with the
emissions inspection requirements: Federal law requires mandatory
monetary penalties that constitute a meaningful deterrent. Proposed
G.S. 20-183. 8A, in Section 1 of the bill, imposes a civil penalty against
vehicle owners in three circumstances — failure to have a vehicle in-
spected viithin 4 months after its sticker expired, tampering with the
emission control devices of a vehicle, or falsely registering a vehicle to
avoid the emissions inspection requirements. The penalty is $100 if the
vehicle is a pre-1981 vehicle and is $220 if the vehicle is a 1981 or newer
model.
(4) Monetary penalties against emissions license holders and suspension or
revocation of an emissions license: Federal law requires a penalty
schedule that imposes "swift, sure, effective, and consistent penalties"
for \aolations of the emissions inspection procedures. The schedule
niust categorize and Ust the penalties for first, second, and subsequent
violations, impose mandatory minimum $100 penalties against an
emissions mechanic for serious violations, and suspend the station's
Hcense and the mechanic's license for serious violations.
Proposed G.S. 20-183.8B and 20-183.8C, in Section 1, estabUsh the
penalty schedule and list violations. The schedule categorizes violations
into three tjyes — serious, minor, and technical — and establishes
penalties for first, second, third, and subsequent violations of each type
of \aolation. The penalty for a first or second serious violation by a
mechanic is $100 and revocation of the license for 6 months. The
penalty for a third or subsequent serious violation by a mechanic is
$250 and revocation of the license for 2 years. The penalties for a
station are higher — $250 and $1000 — but the revocation period is the
same. The penalties for minor and technical violations are scaled do^^^l
accordingly.
(5) Increased Licensing Recjuirements for Mechanics. — Federal law re-
quires inspector mechanics to be licensed, to pass an 8-hour emissions
course to be licensed, to renew the license every 2 years, and to pass a
4-hour refresher course in order to renew. Proposed G.S. 20-183. 4A and
37
EXPLANATION OF PROPOSAL 1 {Continued)
20-183. 4B. in Section 1. codify the current emissions licensing require-
ments that have been implemented through administrative practice and
revise these requirements to meet the requirements of federal law.
Station and Mechanic inspections for intentionally doing an improper
inspection.
(6) Sticker Expiration Dates. — Federal law requires a sticker issued for a
vehicle whose inspection is overdue to become effective the day it would
have become effective if the vehicle had been inspected in a timely way.
Proposed G.S. 20-183.4D(d) makes this change.
CHANGES TO IMPROVE THE INSPECTION PROGRAMS
(1) Establishing a uniform time period for reinspection of a vehicle without
payment of an inspection fee: G.S. 20-183.7, as amended by Section 1 of
the proposal, sets a 45-day period for both safety and emissions
reinspections without charge. Current law allows 90 days for a reinspec-
tion without charge when a vehicle fails a safety inspection and 30 days
when it fails an emissions inspection. The proposal changes both to 45
days to make the same time hmit apply to both. Emissions repairs are
no less complicated and time consuming than safety repairs, and the
difference in these time periods adds unnecessary complication to the
program.
(2) Elimination of one-way permits in favor of defenses to violations:
Current law authorizes the Division to issue a one-way permit to drive
a vehicle with an expired inspection sticker to a place to be inspected.
These permits are typically issued for vehicles whose stickers have
expired while the vehicles were in a state of disrepair and could not be
driven. The proposal eliminates the need for permits in these cir-
cumstances by making it a defense to a citation to drive a vehicle in
these circumstances to be repaired. This eliminates the administrative
time needed to issue the permit and the time spent by the motorist in
trying to obtain a permit.
(3) Administrative Hearing Time Limits: Current law requires administra-
tive hearings on inspection violations to be held by the Commissioner
within 10 days. This time hmit is not met now; persons requesting a
hearing are asked to agree to waive the right to a hearing within the
10-day hmit. The proposal, in proposed G.S. 20-183.8E of Section 1.
eliminates the lO-aay limit, establishes a 14-day hmit for hearings on
revocations or suspensions of an emissions hcense, and establishes a
90-day limit for all other inspection hearings. The 14-day hmit is re-
quired by federal law.
38
EXPLANATION OF PROPOSAL 1 (Continued)
(4) Including Leased Federal Installations Within the Emissions Program:
Federal law requires vehicles operated on federal installations that are
^Nithin an emissions county and are owTied by the federal government to
be subject to an emissions inspection. The proposal defines a federal
installation to include property leased by the federal government as well
as owned. This simplifies the program for federal installations and es-
tablishes a policy that does not vary depending on how the federal
government chooses to pro\ide property for its agencies. The method of
providing property is unrelated to the emissions produced by vehicles
and cannot be determined without investigation. The EPA complex in
the Research Triangle, for example, is leased rather than ownea.
(5) Assessing emissions license holders a penalty of $25 for each sticker
that is missing: Current law imposes no monetary penalties for missing
stickers or any other inspection violations. This penalty is imposed to
address the problem created by stickers that are "lost" by stations.
DMV reported that it is not uncommon for an officer at DMV to find
that a station has over 100 stickers missing and no plausible explana-
tion of what happened to them.
TECHNICAL CHANGES
The proposal makes numerous technical and clarifying changes. Most im-
portantly, it clarifies which vehicles are subject to inspection, what the
inspection entails, and who can perform the inspection. In making the clari-
fying changes, it codifies the current administrative practice concerning
safety and emissions inspections and, except for the changes required by
federal law, the requirements for various Ucenses.
The emissions program is a one-paragraph afterthought in the current law.
This proposal integrates the emissions requirements into the statutes and
distinguishes between safety inspections and emissions inspections.
The proposal also makes conforming changes and moves various provisions
in current law from one place to another. Section 2 renames the Article that
contains the inspection programs from the "Motor Vehicle Law of 1947" to
"Safety and Emissions Inspection Program" because there is nothing sub-
stantive left in the Article that was enacted in 1947. Section 3 repels the
remaining vestige of the 1947 act because the purposes stated in the re-
pealed Part are no longer accompanied by statutes that implement the
stated purposes.
EXPLANATION OF PROPOSAL 1 (Continued)
Section 4 repeals G.S. 20-127(e) because it is incorporated in G.S. 20-
183.3(a)(5) as amended in Section 1. Section 5 repeals G.S. 20-128.2(b) be-
cause it is incorporated in G.S. 20-183. 3(b) as amended in Section 1. Section
6 moves from current G.S. 20-183. 2(a) and 20-183.8(c) to G.S. 20-384 the
requirement that a motor carrier comply -with the federal Motor Carrier
Safety Regulations and the infraction for failure to do so.
40
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 2 ( 93-LJZ-33V4 )
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: DMV and DOT Technical Changes. (Public)
Sponsors: Senators Lee, Hoyle, Marshall, Martin of Pitt,
Plexico, Simpson, Smith, and Speed.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE TECHNICAL, CONFORMING, AND ADMINISTRATIVE CHANGES
3 TO THE MOTOR VEHICLE LAWS AND OTHER LAWS CONCERNING THE
4 DEPARTMENT OF TRANSPORTATION.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 20-17(2) reads as rewritten:
7 "(2) Either of the following impaired driving offenses:
8 a. Impaired driving under G.S. 20-138.1.
9 b. Impaired driving under G.S. 20-138.2 when the
10 person convicted did not take a chemical test
11 at the time of the offense or the person took
12 a chemical test at the time of the offense and
13 the test revealed that the person had an
14 alcohol concentration at any relevant time
15 after driving of less than 0.04 or of . 10
16 0. 08 or more. "
•* EXPLANATION **
Chapter 285 of the 1993 Session Laws changed the alcohol concentration level required for a conviction of
driving while impaired from 0.10 to 0.08. That Chapter failed to make a conforming change to G.S. 20-17.
which lists the circumstances under which a driver 's license is revoked for regular driving while impaired or
commercial driving while impaired. This section makes the needed conforming change.
93-LJZ-33 Page 41
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1
2 Sec. 2, G.S. 20-28(a), as amended by Section 320 of
3 Chapter 539 of the 1993 Session Laws, reads as rewritten:
4 "(a) Driving While License Revoked. — Any person whose drivers
5 license has been r e vok ed , — o-tite-c — Uvafl — p e rman e ntly, revoked who
6 drives any motor vehicle upon the highways of the State while the
7 license is revoked is guilty of a Class 1 misdemeanor. Upon
8 conviction, the person's license shall be revoked for an
9 additional period of one year for the first offense, two years
10 for the second offense, and permanently for a third or subsequent
11 offense.
12 The restoree of a revoked drivers license who operates a motor
13 vehicle upon the highways of the State without maintaining
14 financial responsibility as provided by law shall be punished as
15 for operating without a drivers license."
16 Sec. 3. G.S. 20-28(b), as amended by Section 321 of the
17 1993 Session Laws, is repealed.
•* EXPLANATION *•
These two sections merge driving while license revoked, other than permanently, and driving while licemc
permanently revoked because they are both Class I misdemeanors under the structured sentencing scheme enacted
by Chapter 539 of the 1993 Session Laws. The punishment for a person who drives while a license /.s
permaneittly revoked will be stiffer than for a person who drives with a license that is revoked for a period other
than permanently because, lo get lo the point of having a permanently revoked license, a person must have at
least two prior convictions of driving with a revoked license. These prior convictions will move the person into a
higher prior conviction level.
18
19 Sec. 4. G.S. 20-35, as amended by Section 324 of
20 Chapter 539 of the 1993 Session Laws, reads as rewritten:
21 "5 20-35. Penalties for n isdcaaa n o r . violating Article; defense
22 to driving without a license.
23 ( a ) Penalty. — A violation of this Article is a Class 2
24 misdemeanor unless a statute in the Article sets a different
25 punishment for the violation. If a statute in this Article sets
26 a different punishment for a violation of the Article, the
27 different punishment applies, i-t — &iiAil — b« — a — Ci«u&« — 2 — m is d e m e anor
28 -to — v iola t e — »fty — o-f — th« — pr o v is ion s — oi — ttu^s — Art i c le — un less — s uch
29 v i o l at i on is by th is A rt i c le or oth e r la w of thi s Stat e d e c la r e d
30 to b e a — f elo ny .
31 (b) Un les s an o th e r p e n al ty is i n th is A rt i cl e or by th e la w s of
32 -tiWr* S-t-a4.e pr o v ide d, e v e ry — p e r s on convict e d o-f a Cl-a-s-s 2
33 m is d e m ea n o r .
34 (c) Defenses. — A person may not be convicted of failing to
35 carry a regular drivers license if, when tried for that offense.
Page 42 93-LJZ-33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 the person produces in court a regular drivers license issued to
2 the person that was valid when the person was charged with the
3 offense. A person may not be convicted of driving a motor
4 vehicle without a regular drivers license if, when tried for that
5 offense, the person shows all the following:
6 (1) That, at the time of the offense, the person had an
7 expired license.
8 (2) The person renewed the expired license within 30
9 days after it expired and now has a drivers
10 license.
11 (3) The person could not have been charged with driving
12 without a license if the person had the renewed
13 license when charged with the offense."
** EXPLANATION **
Chapter 539 of the 1993 Session Laws classified misdemeanor offenses as Class J, Class 2. or Class 3
misdemeanors so ihey would fit into the structured sentencing scheme enacted by Chapter 538 of the 1993
Session Laws. Section 324 of that act changed the "default" punishment for violations of Article 2, the drivers
license article, of Chapter 20 of the General Statutes from a 6-month. $500 misdemeanor to a Class 2
misdemeanor. The "default" punishment is the punishment that applies when the law does not specify any oilier
punishment.
The changes left inaccurate provisions in subsection (a) of this section as well as an incomplete sentence in
subsection (b) thai, if corrected, would do nothing more than repeal subsection (a}. This section corrects these
problems by rewriting subsection {a) so that it applies to all offenses in Article 2 and deletes subsection (b)
Current subsection (a) is inaccurate because it implies that Article 2 contains only felonies and Class 2
misdemeanors. The Article includes other classes of misdemeanors in addition to Class 2.
14 Sec. 5. G.S. 20-66, as amended by Section 2 of Chapter
15 467 of the 1993 Session Laws, reads as rewritten:
16 "S 20-66. Renewal of vehicle r a gi s t i rati o n; — pr o cat o d — £«««^
17 registration.
18 (a) Annual Renewal. — The registration of a vehicle must be
19 renewed annually. To renew the registration of a vehicle, the
20 owner of the vehicle must file an application with the Division
21 and pay the required registration fee. The Division may receive
22 and grant an application for renewal of registration at any time
23 before the registration expires.
24 (b) Method of Renewal. — When the Division renews the
25 registration of a vehicle, it must issue a new registration card
26 for the vehicle and either a new registration plate or a
27 registration renewal sticker. The Division may fto-t renew a
28 registration plate for «i any type of vehicle by means of a
29 renewal s t ic k e r — un less — the — Di vi s ion — i-s — authori ze d — trO — U45* — th a t
30 meth o d — o£ — r e n e wa l . Xiie — D ivi s ion m a y — r e n e w a — r e gi s tr a t io n plat e
93-LJZ-33 Page 43
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 iss u e d — txi^ — the — f oll ow i ng typ e s o£ v e h i cl es by m e an s o £ a — r e n e w al
2 s t ic k e c ;
3 444- Motorcyc les .
4 4-24- Pr i v a t e pa sse ng e r vehicl es.
5 4-3-)- U -d r i v e-i t pa sse ng e r v e h i c les.
6. -(-44- Prop e rty - hauling v e hicl es — lic e n se d for — 4,000 pound s
7 gro ss w ei ght .
8 -(-54 V e h i c les r e gi s t e r e d uft4*-t ti^e Int e rn a t i on a l
9 R e g is tr a t i on Plan .
10 -(-64 Tr a i le r s . sticker .
11 (bl) Repealed by Session Laws 1993, c. 467, s. 2.
12 (c) Renewal Stickers. — A registration renewal sticker issued
13 by the Division must be displayed on the registration plate that
14 it renews in the place prescribed by the Commissioner and must
15 indicate the period for which it and the registration plate on
16 which it is displayed are valid. Except where physical
17 differences between a registration renewal sticker and a
18 registration plate render a provision of this Chapter
19 inapplicable, the provisions of this Chapter relating to
20 registration plates apply to registration renewal stickers.
21 -(-d-^ St a gg e r e d Ex pir a tion . Xii« D iv is ion m*y iss ue
22 r e g i str a t io n pl a t es — for vehicl es w i th e xpirat i on dat es that vary
23 -f-t-ofla — month — to — month — s-e — tiwi-t — a« — approx i mat e ly — e^^AiAJi — numb e r — wiil
24 ex p i r e d ur i ng e a c h m o nth o f th e — r e gi s trat i on y e ar .
25 -(-e-) Pror a t ed — F ee. ■— A v e h i c le — l ic e n se — f-«« — &h*l-l — be — c o mput e d
26 by — d i v i d i ng — th« — annua l — l ic e n se — £«« — by — 1-2 — »«4 — mu l tip l y i ng — tbe
2 7 qu o ti e nt — by — tbe — num be r — oi — month s — r e m a in i ng — prior — to — tbe — e^id — o-f
28 th e month of ex p i r a tion o f th e — r e g is trat i on . Am o unt s — s o comput e d
29 -sitaJJ^ — be — r o un ded — 1« — tb« — n ea r es t — mu l tip le — &i — tw e nty - f i v e — c^ftt*
30 (25ir) .
31 (f) Repealed by Session Laws 1993, c. 467, s. 2.
32 (g) When Renewal Sticker Expires. — The registration of a
33 vehicle that is renewed by means of a registration renewal
34 sticker expires at midnight on the last day of the month
35 designated on the sticker. It is lawful, however, to operate the
36 vehicle on a highway until midnight on the fifteenth day of the
37 month following the month in which the sticker expired. The
38 Division may vary the expiration dates of registration renewal
39 stickers issued for a type of vehicle so that an approximately
40 equal number expires at the end of each month, quarter, or other
41 period consisting of one or more months. When the Division
42 implements registration renewal for a type of vehicle by means of
43 a renewal sticker, it may issue a registration renewal sticker
Page 44 93-LJZ-33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 that expires at the end of any monthly interval beginning at nine
2 months and ending at eighteen months.
3 (h) When Calendar-Year Plate Expires. — The registration of a
4 vehicle that is not renewed by means of a registration renewal
5 sticker expires at midnight on December 31 of each year. It is
6 lawful, however, to operate the vehicle on a highway until
7 midnight on the following February 15.
8 (i) Property Tax Consolidation. — When the Division receives
9 an application under subsection (a) for the renewal of
10 registration before the current registration expires, the
11 Division shall grant the application if it is made for the
12 purpose of consolidating the property taxes payable by the
13 applicant on classified motor vehicles, as defined in G.S. 105-
14 330. The registration fee for a motor vehicle whose registration
15 cycle is changed under this subsection shall be reduced by a
16 prorated amount. The prorated amount is one-twelfth of the
17 registration fee in effect when the motor vehicle's registration
18 was last renewed multiplied by the number of full months
19 remaining in the motor vehicle's current registration cycle,
20 rounded to the nearest multiple of twenty-five cents (25C)."
21
•* EXPLANATION **
This section makes two administrative changes and two technical changes in staggered vehicle registrations.
The administrative changes allow the Division to stagger the registration of any type of vehicle and allow
staggered registrations to expire at the end of any periodic basis composed of one or more months. The technical
changes eliminate subsections (d) and ie); subsection (d) is inaccurate and is replaced by the new language in
(g), and Section 8 of this bill incorporates subsection (e) in amended G.S. 20-95. Registration plates, as opposed
to renewal slickers, are all calendar-year plates and are not staggered.
Current law restricts staggered registration to the following vehicles: motorcycles, private passenger vehicles.
U-drive-ii passenger vehicles, property-hauling vehicles licensed for 4,000 pounds gross weight, vehicles
registered under the International Registration Plan (IRP), and trailers. The Division currently renews the
registration of all of these types of vehicles by sticker except those registered under the IRP and is planning to
implement staggered IRP registration in 1995.
The Division 's plcui for staggered IRP registration contemplates staggering the registrations on a quarterly as
opposed to a monthly basis because this schedule best accommodates the IRP vehicle owners. Current law.
however, requires all staggered renewals to be done on a monthly basis so that an approximately equal number
of vehicle registrations expire at the end of each month. This section removes the monthly limitation and allows
the Division to stagger registrations for IRP vehicles and any other vehicles on a periodic basis. The Division is
best able to detennine the period that will spread the work out evenly.
22 Sec. 6. Section 343 of Chapter 539 of the 1993 Session
23 Laws is repealed.
** EXPLANATION **
Former G.S. 20-79(a) had a misdemeanor violation that was changed by Chapter 539 to fit in with structured
sentencing. Cliapier 440 of the 1993 Session Laws (SI 62), however, deleted the offense as part of the rewrite of
93-LJZ-33 Page 45
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
G.S. 20-79. which addresses dealer license plates. If the section Is not repealed, the words "Class 2
misdemeanor" will be harjging at the end of 20-79 (a).
1
2 Sec. 7. G.S. 20-88.1 is amended by adding a new
3 subsection to read:
4 " (d) The Division shall prepare a driver license handbook that
5 explains the traffic laws of the State and shall periodically
6 revise the handbook to reflect changes in these laws. At the
7 request of the Department of Education, the Division shall
8 provide free copies of the handbook to that Department for use in
9 the program of driver education offered at public high schools. "
** EXPLANATION **
This section consolidates Article 6 of Chapter 20 with G.S. 20-88. 1 so that all the provisions concerning the
public school driver education program are in the same place. All of Article 6 is obsolete except the requirement
iliai the Division prepare a driver license hcuidbook for use in the public schools. Section 19 of this act repeals
Article 6.
10
11 Sec. 8. G.S. 20-95 reads as rewritten:
12 "S 20-95. Li c e n ses Prorated fee for license plate issued for
13 X»c« other than a year.
14 (a) Calendar-Year Plate. — E xc e pt — a« — provid e d — In — s ub se ct i on
15 -<-b-) — o £ th is — se ct io n, — li c e n ses The fee for a calendar-year license
16 plate issued on or after April 1 a n d be for e July 1 of e*cii a year
17 s h all — be — Uii-e-e — f o urth s — of — tiie — a nnual — f ee ; — lic e n ses — iss u e d — on — ot
18 a ft e r Ju l y 1 an d b e f o r e O ctob e r 1 s ha ll b e on e ha l f of th e a nnual
19 f ea ; — *ftd — li c e n ses — iss u ed — on — ot — ait** — Octob e r — 1 — sitAil — be — oAe
20 f o urth — of — tile — a nnu al — f ee . is a percentage of the annual fee
21 determined in accordance with the following table:
22 Date Plate Issued Percentage of Annual Fee
23 April 1 through June 30 75%
24 July 1 through September 30 50
25 October 1 through December 31 25.
26 (al) Plate With Renewal Sticker. — The fee for a license
27 plate whose registration is renewed by means of a registration
28 renewal sticker for a period of other than 12 months is a
29 prorated amount of the annual fee. The prorated amount is one-
30 twelfth of the annual fee multiplied by the number of full months
31 in the period beginning the date the renewal sticker becomes
32 effective until the date the renewal sticker expires, rounded to
33 the nearest multiple of twenty-five cents (25C).
Page 46 93-LJZ-33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 (b) Scope. — This section does not apply to license plates
2 issued pursuant to G.S. 20-79.1, 20-79.2, 20-84, 20-84.1,
3 20-87(9) or (10), and 20-88(c)."
** EXPLANATION **
This section incorporates current G.S. 20-66(e) as subsection (al) so that the provisions for prorated
registration fees are in the same place in the statutes, and it rewrites subsection (a) to make it clear thai ii
applies only to calendar-year plates. It does not change the amount of fees payable or the lime the fees arc
payable.
4 Sec. 9. G.S. 20-97(a), as rewritten by Section 1.1 of
5 Chapter 456 of the 1993 Session Laws, reads as rewritten:
6 "(a) All taxes levied under the provisions of this Article are
7 intended as compensatory taxes for the use and privileges of the
8 public highways of this State, and shall be paid by the
9 Commissioner to the State Treasurer, to be credited by him to the
10 State Highway Fund; and no county or municipal i ty, — oth e r — Uia«
11 A l l e ghany County, municipality shall levy any license or
12 privilege tax upon any motor vehicle licensed by the State of
13 North Carolina, except that cities and towns may levy not more
14 than five dollars ($5.00) per year upon any vehicle r es id e nt,
15 resident therein, and except that Alleghany County may levy not
16 more than ten dollars ($10.00) per year upon any vehicle
17 r es id e nt , resident therein. Provided, further, that cities and
18 towns may levy, in addition to the amounts hereinabove provided
19 for, a sum not to exceed fifteen dollars ($15.00) per year upon
20 each vehicle operated in such city or town as a taxicab."
** EXPLANATION **
This section corrects a redlining error made in Section I.I. of Chapter 456 of the 1 993 Session Laws. That
act is a local act that applies only to Alleghany County. The word "therein " was omitted in two places and the
exception for Alleghaity County was inserted twice.
21
22 Sec. 10. G.S. 20-118(c)(l) reads as rewritten:
23 "(1) Two consecutive sets of tandem axles may carry a
24 gross weight of 34,000 pounds each without penalty
25 provided the overall distance between the first and
26 last axles of -SAJ^Ji the consecutive sets of tandem
27 axles is 36 feet or more. Tank — tra i l e r s , — dump
28 tra ile r s , — and — o«**n — going — tran s port — cont a in e r s — ofl
29 -two — con se cutiv e — se t s — &f — tand e m — a*i-»45 — may — c arry — a
30 gr oss w e ight of 34, 000 pound s ea ch w i thout p e na l ty
31 pr o v i d e d — the — ov e rall — d is tanc e — b e twe e n — Uie — sec ond
93-LJZ-33 Page 47
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 *nd — tite — £-i-f-th — a-x-I** — o-L — sjo^^h — con se cutiv e — se t s — »^
2 t a nd e m axles — i-s — iO — £ ee t oc mor e. Th e e xc e pt i on for
3 -t*ftk — tca ile c s , — (iump — tcai le c s , — and — ©«**n — tc a n s poct
4 c ont ai n e r s s h all e xpir e Augu s t 3 1 , — 1 988 . "
*• EXPLANATION *•
This section repeals a weight exemption thai expired August 31 . 1988.
5
6 Sec. 11, G.S. 20-118(c) ( 5) , as amended by Chapter 426
7 of the 1993 Session Laws, reads as rewritten:
8 ( 5 ) A truc k o r o th e r m o tor v e hicl e s ha l l b e e x e mpt from
9 ^uGii The light-traffic road limitations provided
10 for pursuant to G,-S^ 20 - 1 1 8(b) ( 4) , wb«fl
11 tr a n s p o rt i ng — pr o c esse d — an4 subdivision (b)(4) of
12 this section do not apply to a vehicle while that
13 vehicle is transporting only the following from its
14 point of origin on a light-traffic road to the
15 nearest highway that is not a light-traffic road;
16 a_^ Processed or unprocessed seafood from boats or
17 any other point of o r i g i n, — m**t« — and origin to
18 a processing plant or a point of further
19 distribution.
20 b^ Meats o_r agricultural crop products
21 originating from a -ta-wR-, — &t farm to first
22 market .
23 c_^ Unprocessed forest products originating from a
24 farm or from w o o dl and s , — or l i v es tock woodlands
25 to first market.
26 cL_ Livestock or poultry from their point of
27 origin to first market.
28 e_^ Livestock by-products or poultry by-products
29 from their point of o r i gin, — o* — r e cyc la b l e
30 origin to a rendering plant.
31 f_^ Recyclable material from its point of origin
32 to a scrap-processing facility for processing.
33 As used in this subpart, the terms
34 'recyclable' and 'processing' have the same
35 meaning as in G.S. 130A-290(a).
36 2_i Garbage collected by the vehicle from
37 residences or garbage dumpsters if the vehicle
38 is fully enclosed and is designed specifically
39 for collecting, compacting, and hauling
40 garbage from residences or from garbage
Page 48 93-LJZ-33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 dumpsters. As used in this subpart, the term
2 'garbage' does not include hazardous waste as
3 defined in G.S. 130A-290(a), spent nuclear
4 fuel regulated under G.S. 20-167.1, low-level
5 radioactive waste as defined in G.S. 104E-5,
6 or radioactive material as defined in G.S.
7 104E-5.
8 m a t e r ial for proc ess ing from th e point of or i gin on
9 a li ght - traffic t^Mui 1« Uve n e ar es t State
10 m ai nta i n e d r o ad which i s not po s t e d to prohibit th e
11 tran s portat i on — oi — s tatutory — lr«^«td — limit s . A45 — u se d
12 i-B — tiwus — s ub d ivi s ion, "proc ess ing" — h** — the — s-ame
13 m ea ning a-s de fin e d ifl G . S . 1 30A -2 90 ( a ) ( 2 3) and
14 "r e cyclabl e — mat e rial" h«us the s-ame — m e aning — a*
15 de f i n ed i n G . S . 1 30A -2 90 ( a ) ( 2 6 ) . "
16
♦* EXPLANATION **
This section makes several technical changes. First, it restricts the application of the definition of
"processing" to recyclable materials, thereby eliminating confusion. The terms "processed" and "unprocessed"
are used in this subdivision in a way that is contrary to the added definition of "processing, " which was intended
to apply only to recyclable material. Second, the section clarifies that forest products must be unprocessed forest
products. Section 1 1 of Chapter 543 of the 1 993 Session Laws made a similar change in the reduced penalty
provisions for forest products.
Third, the section rewrites the exemptions to make them easier to understand. As part of the rewrite, the
section incorporates current G.S. 20-1 18(c)(9) as subpart g. without changing its substance. This subdivision is
incorporated here so tltai the half-rate penalties in 20-1 18(e)(2) and (e)(4) can be described by cross reference
rather than needless repetition. The rewrite also makes it clear that the exemption for "livestock or poultry by-
products" includes livestock, livestock by-products, poultry, and poultry by-products.
* * * *
17
18 Sec. 12. G.S. 20-118(c)(9) is repealed.
•* EXPLANATION **
Section 1 1 of this bill incorporates this subdivision. This section therefore repeals it so it does not appear
twice in the statutes.
* * * *
19
20 Sec. 13. G.S. 20-118 ( c )( 12 ) , as enacted by Chapter 470
21 of the 1993 Session Laws, reads as rewritten:
22 "(12) A Subsections (b) and (e) of this section do not
23 apply to a vehicle that meets one of the following
24 des cr i ption s ao4 descriptions , is hauling
25 agricultural crops with i n — iS — miie-s — o4 from the
26 farm where they were grown ; grown to first market.
93-LJZ-33 Page
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 is within 35 miles of that farm, and does not
2 exceed its registered weight:
3 a. H as Is a five-axle combination with a gross
4 weight of no more than 88,000 pounds, a si ngl e
5 -a*!* single-axle weight of no more than 22,000
6 pounds, -ftfid a tand e m — a*l* tandem-axle weight
7 of no more than 42,000 pound s . pounds, and a
8 length of at least 51 feet between the first
9 and last axles of the combination.
10 b-. Is a f i v e-a xl e comb i nat i on with a gro ss w e ight
11 of no m o r e than 88,000 pound s.
12 c. Is a four-axle combination with a tand e m a xl e
13 gross weight that does not exceed the limit
14 set in subdivision (b)(3) of this section, a
15 single-axle weight of no more than 22,000
16 pounds, and a tandem-axle weight of no more
17 than 42,000 pounds."
** EXPLANATION **
This section corrects several drafting errors and clarifies that the exemption does not permit the vehicle to
exceed its registered weight or the gross weight limits. Specifically, it makes the exception fit into the statute by
adding the lead-in phrase, it inserts the missing word "no", it merges a. and b. because, in reality, the vehicles
described in subpart a. are five-axle combinations, and it inserts the appropriate hyphens. This exemption was
added by Chapter 470 of the 1993 Session Laws, effective July 23. 1993.
18 Sec. 14. G.S. 20-118(e), as amended by Chapters 426 and
19 533 of the 1993 Session Laws, reads as rewritten:
20 (e) Penalties. ~
21 (1) Except as provided in subdivision (2) of this
22 subsection, for each violation of the single-axle
23 or tandem-axle weight limits set in subdivision
24 (b)(1), (b)(2), or (b)(4) of this section, the
25 Department of Transportation shall assess a civil
26 penalty against the owner or registrant of the
27 vehicle in accordance with the following schedule:
28 for the first 1,000 pounds or any part thereof,
29 four cents (4C:) per pound; for the next 1,000
30 pounds or any part thereof, six cents (6C) per
31 pound; and for each additional pound, ten cents
32 (IOC) per pound. These penalties apply separately
33 to each weight limit violated. In all cases of
34 violation of the weight limitation, the penalty
Page 50 93-LJZ-33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 shall be computed and assessed on each pound of
2 weight in excess of the maximum permitted.
3 (2) -Eio* The penalty for a violation of the single-axle
4 or tandem-axle weight limits -s^^ — jj; — s ubd i v isi on
5 (b)(1) ©* (b)( 2 ) Qi — thi-s se ction by a m©t«i
6 vehicle that is transporting an item listed in
7 subdivision (c)(5) of this section is one-half of
8 the amount it would otherwise be under subdivision
9 (1) of this subsection, proc esse d — o* — unpc o c esse d
10 se afood from boat s or any oth e r po i nt o£ origin to
11 « proc ess ing plAO-t o-t a point of furth e r
12 di s tribution, — ift©*trS — o-c — agricultural — G-c-op — pr o duct s
13 or i g i nating f-c-oro a f«-tfl> te fir s t mark e t,
14 unproc esse d — for es t — product s — or i ginating — f-r-om — a
15 -ta-wn o< f-tofl» — woodland s to fir s t mark e t, ot
16 li v es tock — or pou l try by - product s — from th e ir point
17 oi or i gin to a r e nd e ring plant, r e cyc l abl e
18 mat e ria l — f«-r — proc ess ing — from a point — of or i gin to
19 .a — s cr a p - proc ess ing — f a c ili ty, oj; — tiva-t — t^s — tulriy
2 e nc l o se d , — is d es ign e d s p e cifically for co lle cting,
21 compact i ng, — a n d h a ul i ng g a rbag e — from r esi d e nc es o r
22 fr o m g a rbag e — dump s t e r s , — a^d — i-s — b e ing op e rat e d — f«^
2 3 tiwa-t — purpo se , th« — De partm e nt — oJ — Tran s portation
24 s h a ll — assess — a — civil — p e nalty — again s t — th« — own e r — o-s-
2 5 r e g is trant — o£ — tite — v e hicl e — &q-i^al — to — tite — amount
26 produc e d by a pply i ng on e- half of th% rat e
27 i nd i cat e d — i-a — tive — s ch e dul e — i-n — s ubd i vi si on — (-1-) — o4
28 tiii* — s ub se ct io n — to — tJtve — w e ight — La — pound s — oo — e ach
29 -aotlre — in — ex c ess — o£ — tite — m a x i mum — w e ight — i4i — p o und s
3 al lo w e d . As us-ed i-n th is s ubd i vi s ion,
31 "pr o c ess ing" — hi^^ — the — &ame — m e aning — a« — d e f i n e d — i4i
32 G .S.13QA-2 90( a ) ( 2 3) a n d "recyc l abl e mat e r i al" ha s
33 tive s«uae m e an i ng a-s d e fin e d iu G . S .
34 13 0A -2 9 ( a )( 2 6) .
35 (3) Except as provided in subdivision (4) of this
36 subsection, for a violation of an axle-group
37 weight limit set in subdivision (b)(3) of this
38 section, the Department of Transportation shall
39 assess a civil penalty against the owner or
40 registrant of the motor vehicle in accordance with
41 the following schedule: for the first 2,000 pounds
42 or any part thereof, two cents (2<;) per pound; for
43 the next 3,000 pounds or any part thereof, four
44 cents (4C) per pound; for each pound in excess of
93-LJZ-33 Page 51
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 5,000 pounds, ten cents (IOC) per pound. These
2 penalties apply separately to each axle-group
3 weight limit violated. The penalty shall be
4 assessed on each pound of weight in excess of the
5 maximum permitted.
6 (4) -Pat The penalty for a violation of *Ay an axle-
7 group weight limit -s^* — ifl — s ubdiv is ion — (b)(3) — o-t
8 -tiii-s se ction by a motor vehicle d es cr ibe d — i-n
9 subdivision — (-2-4 — of th is — s ub sec tion, — th e De p a rtm e nt
10 «4 — Tran s portation — sttaXl — a ssess — a — oiAtil — p e n al ty
11 a ga i n s t — fcive — own e r — o* r e gi s trant — of — th« — motor
12 v e h i c le — e^Aia-l — to — tite — amount — produc e d — by — a pplying
13 one-half of the — rat e — ind i cat e d — in th e — s ch e du le — ir*
14 s ubd i v is ion — (-3-) — o^ — titi* — s ub se ction — to — th« — w ei ght
15 ifl — p o und s — o« — **oh — axie — group — ifl — e x cess — of — the
16 m a x i mum — w ei ght — irR — pound s — al l ow e d . r e cy c labl e
17 m a t e r i a l — to-t — proc ess ing — from point — of — or i g i n — to — a
18 sc r a p - pr o c ess ing facility, As us*4 La Uii*
19 s ubd i v isio n, — "proc ess ing" — h** — th« — s^une — m ea n i ng — a*
20 d e f i n e d i4; — G . S . 13 0A -2 90 ( a ) ( 2 3) and "r e cyc la bl e
21 mat e ria l " — h^^e — tlve — s am e m e aning — a« — d e fin ed — i n G . S .
22 130 A -2 9 (a) ( 2 6 ) . that is transporting an item
23 listed in subdivision (c)(5) of this section is
24 one-half of the amount it would otherwise be under
25 subdivision (3) of this subsection.
26 ( 5 ) Th e c i v il p e nalti es provid e d in thi s — se ct i on s ha l l
27 c o n s t i tut e — tive — s-ol-e — p e nalty — to* — violation s — of — th«
28 w ei ght li mit s ifi thi s se ction aftd v i olator s
29 th e r eo f — siva-Il — rvot — be — s ubj e ct — to — cr i m i n a l — action
30 exce pt — a« — prov ided — ija — G . S . — 20- 96 — a«d — a-s — prov i d e d
31 in — Q^.-&~. — 136- 7 2 — to* — a ny v e h i c le — o-c — comb i n a t io n — of
32 v e h i c les ex c ee d i ng th e s af e l o a d carrying c a pac i ty
33 irO-c b ridg es on the S-ta-tre Highway Sy s t e m a«
34 es t a b lis h ed and p os t ed by th« De partm e nt o4
35 Tr a n s p o rt a t io n . A violation of a weight limit in
36 this section is not punishable under G.S. 20-176. "
** EXPLANATION **
This section corrects confusion created by the overlap of rvi'o acts passed in the 1 993 Session and makes oilier
technical changes. Chapter 426 of the 1 993 Session Laws gave vehicles hauling certain recyclable materials a
one-half rate on the weight penalties (single-axle, tandem-axle, axle-group, and light -traffic road). Section II of
Chapter 533 of the 1993 Session Lava's made technical changes to the subsection thai did not take into account
the changes made by Chapter 426. When combined, the two acts left incomplete sentences in the subsection.
Page 52 93-LJZ-33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 199 3
This section corrects the problem by eliminating the repetition of the list of vehicles to which the preferential
rates apply. Rather than list the half-rate vehicles in three places, this section cross-references the list under
(c)(5)(lighi-trajfic roads). By deleting the unnecessary repetition, the bill also eliminates the problem created by
the definition of processing, discussed in the explanation to Section II of this bill.
1
2 Sec. 15. G.S. 20-118(f) is repealed.
*» EXPLANATION **
This subsection unnecessarily duplicates several other statutes. Passenger buses, as for-hire carriers, are
required to register with the Division under Article 1 7 of Chapter 20. Passenger buses pay vehicle registration
fees under 20-87(1} based in part on weight. The Commissioner does not. as this statute implies, issue a special
license to a passenger bus.
Sec. 16. G.S. 20-118(i) is repealed.
** EXPLANATION **
Part of this subsection expired October 1 . 1988. and the remainder expired October 1 , 1993. The subsection
is therefore obsolete.
4
5 Sec. 17. G.S. 20-174. 1(b) reads as rewritten:
6 "(b) Afty — p e r s on — convi c t e d — o£ — v i olating — fciii^ — se ct i on — sJwtXl — b«
7 puni s h e d — by — a — f-i4i« — fto4 — e xc ee ding — f i v e — hundr e d — dol l ar s — ( $ 50 . 00 )
8 ©* — by i mpr is onm e nt — no-t — e xc ee d i ng — s4-x — month s , — o-t — bo^J^i-, — ifl — th«
9 d is cr e tion — o£ — th« — court . Violation of this section is a Class 2
10 misdemeanor . "
•* EXPLANATION **
This section fits the offense of standing, silling, or lying upon a street or highway into the structured
sentencing classification of misdemeanors. It makes a violation a Class 2 misdemeanor. The punishment range
for a Class 2 misdemeanor is as follows: 1-30 days community punishment for prior conviction level I, 1-45 days
community punishment or intermediate punishment for prior conviction level 11. and 1-60 days community,
intermediate, or active punishment for prior conviction level III.
11
12 Sec. 18. G.S. 20-193 is repealed.
** EXPLANATION **
This statute has been superseded by G.S. 7A-304 and is therefore unnecessary; lo the extent it conflicis with
G.S. 7A-304, it creates confusion. G.S. 20-193 requires fees for arrests and service of process that arise from
the work of the Highway Patrol and are included in court costs lo be remitted to the general fund of the county
where the court taxing the costs is located. G.S. 7A-304, which is part of Article 28. Uniform Costs and Fees in
93-LJZ-33 Page 53
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
the Trial Divisions, directs these fees to be remitted to the coutity where the arrest was made or process n'tts
served.
1
2 Sec. 19. Article 6 of Chapter 20 of the General
3 Statutes is repealed.
•* EXPLANATION **
Most of this Article, which is tilled "Giving Publicity to Highway Traffic Laws through the Public Schools" is
obsolete. For example, it instructs the Department of Transportation to give each public high school teacher u
digest of the traffic laws by August 1 , 1927. Section 7 of this act incorporates into G.S. 20-88.1, the statute thai
describes the public school driver education program, the requirement that the Division of Motor Vehicles give
the Department of Education copies of the digest for use in the driver education program.
4 Sec. 20. G.S. 20-218, as amended by Chapter 217 of the
5 1993 Session Laws, reads as rewritten:
6 "S 20-218. Standard qualifications for school bus drivers; speed
7 limi t , limit for school buses and school activity buses.
8 (a) Qualifications. — No person shall drive a school bus over
9 the highways or public vehicular areas of North Carolina while it
10 is occupied by children unless the person furnishes to the
11 superintendent of the schools of the county in which the bus
12 shall be operated a certificate from any representative duly
13 designated by the Commissioner and from the Director of
14 Transportation or a designee of the Director in charge of school
15 buses in the county showing that the person has been examined by
16 them and is fit and competent to drive a school bus over the
17 highways and public vehicular areas of the State. The driver of
18 a school bus must be at least 18 years of age and hold a Class A,
19 B, or C commercial drivers license and a school bus driver's
20 certificate. The driver of a school activity bus must meet the
21 same qualifications as a school bus driver or must have a license
22 appropriate for the class of vehicle being driven.
23 (b) Speed Limits. — It s h al l be is unlawful f o r any p e r s on to
24 o p e r a t e — a* drive a school bus loaded with children over the
25 highways or public vehicular areas of North C a rol i na the State at
26 a greater rate of speed than 45 miles per hour -, — e .xc e pt — to-t — s choo l
27 act i v i ty — b4j45-e-e — wh i ch — a-r-e — p a int e d — a — diff e r e nt — &€tl^o* — f-s-offl — r e gu l ar
28 s cho ol — bAi*** — aftd — wh i ch — a-t* — b«-i4:iJ3 — wi^d — to-r — tr a n s port a t i on — &i
29 s tud e nts o r o th e r s — to or — fr o m p la c es — for part i c i pat i on i n e v e nt s
30 o th e r — tiwtn — r e gu la r — c l a ss room — work, — it — slwtl-l — b« hour. It is
31 unlawful to o per a t e — saacIi drive a school activity bus loaded with
Page 54 93-LJZ-33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 199 3
1 children over the highways or public vehicular areas of North
2 Carolina at a greater rate of speed than 55 miles per hour.
3 (c) Punishment. — Any — p e c s on — violat i ng — th is — se ction — s hal l ,
4 upon conviction, — b e fin e d not mor e than fifty dollar s — ( $5 . 00 ) or
5 i mpri s on e d for not mor e th a n 30 day s. A person who violates this
6 section commits a Class 3 misdemeanor. "
** EXPLANATION **
This section makes two changes. First, it rewrites subsection (b) of the section so that the subsection is
grammatical. Chapter 217 of the 1993 Session Laws rewrote (b) when it increased the speed limit from 35 to 4.")
miles an hour but made the subsection one long, ungrammatical sentence. Second, it fits the punishment for a
violation into the structured sentencing scheme. A Class 3 misdemeanor is the lowest misdemeanor. Tin-
punishment range is as follows: t-lO days community punishment for prior conviction level I; 1-15 davi
community punishment or intermediate punishment for prior conviction level II, and 1-20 days community
punishment, intermediate punishment, or active punishment for prior conviction level III. Whenever a community
punishment is authorized, the judgment may consist of a fine only. The amount of the fine is in the discretion of
the court but may not exceed $200.
Sec. 21. G.S. 20-218.1 is repealed.
** EXPLANATION **
This statute defines "school bus" and "school activity bus" to include its private and parochial counterparts
but does not provide a good definition of school bus. The definitions are stated to apply throughout Chapter 20
The definitions need to be improved and moved to G.S. 20-4.01, which contains the definitions that apply
throughout Chapter 20. This section repeals G.S. 20-218.1 because the next section of this bill improves the
definitions and moves them to G.S. 20-4.01.
G.S. 20-4.01(27) is amended by adding two new
School activity bus. — A vehicle, generally
painted a different color from a school bus,
whose primary purpose is to transport school
students and others to or from a place for
participation in an event other than regular
classroom work. The term includes a public,
private, or parochial vehicle that meets this
description.
School bus. — A vehicle whose primary purpose
is to transport school students over an
established route to and from school for the
regularly scheduled school day, that is
equipped with alternately flashing red lights
on the front and rear and a mechanical stop
93-LJZ-33 Page 55
9
Sec. 22.
10
subparts to read:
11
"d3
12
13
14
15
16
17
18
19
d4.
20
21
22
23
24
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 signal, and that bears the words "School Bus"
2 on the front and rear in letters at least 8
3 inches in height. The term includes a public,
4 private, or parochial vehicle that meets this
5 • description . "
** EXPLANATION **
This section moves the substance of G.S. 20-218.1 to the appropriate statute. The previous section of this
bill repeals 20-218.1.
6 Sec. 23. G.S. 20-218.2 reads as rewritten:
7 "S 20-218.2. Speed limit for a ctiv i ty — bu s e s fat — nonpr o fit
8 purpo se, nonprofit activity buses.
9 It s h all — b« ^ unlawful -to* — any p e r s on — to — op e rat e to drive an
10 activity bus -tot that is owned by a nonprofit organization for a
11 n o npr o f i t — purp ose wh i ch — ir* — b e ing u se d — £^^* — tran s portat i on o f and
12 is transporting persons in connection with nonprofit activities
13 i n e xc ecc o f over the highways or public vehicular areas of North
14 Carolina at a greater rate of speed than 55 miles per hour. A
15 person who violates this section commits a Class 3 misdemeanor.
16 Any — p e r s on v io l a t i ng — titi^s — se ct i on — siwtJri^ — up^n — convict i on, — be
17 f i n e d n o t m o r e than f i fty dollars — ( $ 50 .00 ) or impri so n ed for not
18 mor e th a n 3 day s."
•* EXPLANATION **
This section fits the punishment for a violation into the structured sentencing scheme and chaiiges the wordinf-
of the statute slightly so that it parallels G.S. 20-218. A Class 3 misdemeanor is the lowest misdemeanor. The
punishment range is as follows: l-IO days community punishment for prior conviction level I: 1-15 day.''
community punishment or intermediate punishment for prior conviction level 11, and 1-20 days community
punishment, intermediate punishment, or active punishment for prior conviction level III. Whenever a community
punishment is authorized, the judgment may consist of a fine only. The amount of the fine is in the discretion of
the court but may not exceed $200.
* « * «
19 Sec. 24. G.S. 20-219 is repealed.
** EXPLANATION **
The statute repealed by this section appears to authorize payment from the Highway Fund to a county for
court costs in criminal automobile theft cases. The statute is not used and is superseded by Article 28 of Chapter
7 A of the General Statutes, which addresses court costs.
20 Sec. 25. Article 8A of Chapter 20 of the General
21 Statutes is repealed.
22
Page 56 93-LJZ-33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
** EXPLANATION **
This Article has only one statute. C.S. 20-231.1. which became obsolete in 1982. The statute is therefore-
cluttering the laws with unnecessary provisions.
1 Sec. 26. G.S. 20-219 .lA reads as rewritten:
2 "§ 20-279. 7A. Forms to carry statement concerning perjury.
3 Th« — Division — ©i — Motor — Vehic les &b*4-l — print — on — al-1 — £«^;4iv€
4 provided — to — drivers — cov e r e d — by — &-^^^ 2 -2 79 . 5, 2 -2 79 . 6, o^
5 20-279 .7 — UiAi — a A person who makes a false affidavit or falsely
6 sworn or affirmed statement con s t i tut es — p e rjury — a4id — may — b«
7 puni s h e d — by — impri s onm e nt — to-t — up — to — 1-0 — year s — o^; — a — fj^ae — o^ — both .
8 concerning information required to be submitted under this
9 Article commits a Class I felony. The Division shall include a
10 statment of this offense on a form that it provides under this
11 Article and that must be completed under oath. "
12
** EXPLANATION **
This section fits the current perjury offense in this statute into the structured sentencing scheme and makes the
punishment fijr this type of perjury the same as other perjuries under Chapter 20. Perjuries under G.S. 20-31 .
Article 2 of Chapter 20. and G.S. 20-112. Article 3 of Chapter 20. were reclassified by Chapter 539 of the
1993 Session Laws as Class I felonies. Thai Chapter failed to make a similar change to this statute. This section
corrects that oversight.
13 Sec. 27. G.S. 20-279.34 is repealed.
** EXPLANATION **
This section is obsolete. It establishes the assigned risk plan that was replaced in 1973 with the Reinsurance
Facility in Article 37 of Chapter 58 of the General Statutes.
14 Sec. 28. G.S. 20-309.1 is repealed.
** EXPLANATION **
This statute, which specifies that 18 year-olds are competent to contract for automobile insurance.
obsolete. It was enacted when a minor was considered to be a person under 21 rather ihaix a person under 18.
15 Sec. 29. G.S. 20-310 is repealed.
** EXPLANATION **
Much of this section is obsolete. The relevant portions are transferred by the next section of this bill i<>
Article 36 of Chapter 58 of the General Statutes.
93-LJZ-33 Page 57
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Sec. 30. Article 36 of Chapter 58 of the General
2 Statutes is amended by adding a new section to read:
3 " S 58-36-85. Termination of a nonfleet private passenger motor
4 vehicle insurance policy.
5 (a) Definitions. The following definitions apply in this
6 section:
10
7 ( 1 ) Policy. — A nonfleet private passenger motor
8 vehicle liability insurance policy, including a
9 policy that provides medical payments, uninsured
motorist, or underinsured motorist coverage.
11 ( 2 ) Terminate. — To cancel or refuse to renew a
12 policy.
13 ( b ) Termination Restrictions. — An insurer shall not
14 terminate a policy for a reason that is not specified in G.S. 58-
15 37-50(1) through (5) or G.S. 58-36-65(g). A termination of a
16 policy is not effective unless the insurer either has notified a
17 named insured of the termination by sending a written termination
18 notice by first class mail to the insured's last known address or
19 is not required by this subsection to send a written termination
20 notice. Proof of mailing of a written termination notice is
21 proof that the notice was sent.
2 2 An insurer is not required to send a written termination notice
2 3 if any of the following applies:
2 4 ( 1 ) The insurer has manifested its willingness to renew
2 5 the policy by issuing or offering to issue a
26 renewal policy, a certificate, or other evidence of
27 renewal .
2 8 ( 2 ) The insurer has manifested its willingness to renew
2 9 the policy by any means not described in
3 subdivision (1) of this subsection, including
31 mailing a premium notice or expiration notice by
3 2 first class mail to the named insured and the
3 3 failure of the insured to pay the required premium
3 4 on or before the premium due date.
35 ( 3 ) A named insured has given written notification to
36 the insurer or its agent that the named insured
3 7 wants the policy to be terminated.
3 8 (c) Contents of Notice. — The form of a written termination
39 notice used by an insurer must be approved by the Commissioner
^0 before it is used. A written termination notice must state the
'^1 reason for the termination and the date the termination is
'^2 effective. If the policy is terminated for nonpayment of the
43 premium, the effective date may be 15 days from the date the
^^ notice is mailed. If the policy is terminated for any other
Page 58 93-LJ2-33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 199 3
1 reason, the effective date must be at least 60 days after the
2 notice is mailed. A written termination notice must include or
3 be accompanied by a statement that advises the insured of the
4 penalty for driving a vehicle without complying with Article 13
5 of Chapter 20 of the General Statutes and that the insured has
6 the right to request the Department to review the termination.
7 (d) Request For Review. — An insured who receives from an
8 insurer a written termination notice may obtain review of the
9 termination by filing with the Department a written request for
10 review within 10 days after receiving a termination notice that
11 complies with subsection (c) of this section. An insured who
12 does not file a request within the required time waives the right
13 to a review.
14 (e) Administrative Review. — When the Department receives a
15 written request to review a termination, it must investigate and
16 determine the reason for the termination. The Department shall
17 enter an order for one of the following upon completing its
18 review;
19 (1 ) Approval of the termination, if it finds the
20 termination complies with the law.
21 ( 2 ) Renewal or reinstatement of the policy, if it finds
22 the termination does not comply with the law.
2 3 ( 3 ) Renewal or reinstatement of the policy and payment
24 by the insurer of the costs of the Department's
2 5 review, not to exceed one thousand dollars
26 ($1,000), if it finds the termination does not
2 7 comply with the law and the insurer willfully
28 violated this section.
29 The Department shall mail a copy of the order to the insured
30 and the insurer. An insured or an insurer who disagrees with the
31 determination of the Department may file a petition for a
32 contested case under Article 3A of Chapter 150B of the General
33 Statutes and the rules adopted by the Commissioner to implement
34 that Article. The petition must be filed within 30 days after
35 receiving the copy of the order.
36 ( f ) Delegation. — The Commissioner shall designate an
37 employee or a deputy to conduct the departmental review of a
38 termination. The Commissioner may designate a deputy to conduct
39 a contested case hearing concerning a termination. The
40 Commissioner may not designate a deputy who conducted the
41 departmental review of a termination to conduct a contested case
4 2 hearing concerning the same termination.
93-LJZ-33 Page 59
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 (g) Effect of Review On Policy. — A policy shall remain in
2 effect during administrative and judicial review of an insurer's
3 action to terminate the policy.
4 (h) Liability Limit. — There is no liability on the part of
5 and no cause of action for defamation or invasion of privacy
6 arises against an insurer, an insurer's authorized
7 representatives, agents, or employees, or a licensed insurance
8 agent or broker for a communication or statement made concerning
9 a written notice of termination.
10 (i) Records. — An insurer shall keep a record of a termination
11 for three years . "
** EXPLANATION **
This section transfers to the insurance laws the portion of G.S. 20-310 that is not obsolete and makei
technical changes. The technical changes conform the administrative review of a termination of an insurance
policy to the Administrative Procedure Act. Chapter I50B of the General Statutes, and clarify the limitation on
liability contained in subsection (h).
12 Sec. 31. G.S. 20-310.2 is repealed.
** EXPLANATION **
This statute is obsolete. It is superseded by Article 36 of Chapter 58 of the General Statutes, which states thv
reasons why an insurance company can refuse to issue an automobile insurance policy. Age is not one of the
permissible reasons.
13 Sec. 32. The title to Article 12E of Chapter 120 of the
14 General Statutes reads as rewritten:
15 "ARTICLE 12E
16 Joint Legislative H i ghw a y Transportation Oversight Committee."
•* EXPLANATION •*
Section 169.2 of Chapter 321 of the 1993 Session Laws changed the name of the Joint Legislative Highway
Oversight Committee to the Joint Transportation Oversight Committee. That act failed to make a conforming
change to the title of the Article that creates the committee. This section makes the needed conforming change.
17 Sec. 33. Section 1 of this act becomes effective
18 October 1, 1994, and applies to offenses occurring on or after
19 that date. Sections 2 through 4, 17, 20, 23, and 26 of this act
20 become effective the same date that Chapter 539 of the 1993
21 Session Laws becomes effective and apply to offenses committed on
22 or after the effective date of Chapter 539; prosecutions for, or
23 sentences based on, offenses occurring before the effective date
24 of Chapter 539 are not abated or affected by these sections.
Page 60 93-LJZ-33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Sections 29 through 31 of this act become effective October 1,
2 1994, and apply to policies with inception or renewal dates on or
3 after that date. The remaining sections of this act are
4 effective upon ratification,
5
93-LJZ-33 page 61
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 3 ( 94d-RWZ-220 )
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Liability Insurance Proof Change.
(Public
Sponsors: Representatives R. Hunter, Bowen, Bowie, Grady,
McAllister, McLaughlin, and Robinson.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ELIMINATE THE REQUIREMENT OF PROOF OF FINANCIAL
3 RESPONSIBILITY UPON RENEWAL OF A DRIVERS LICENSE.
4 The General Assembly of North Carolina enacts: . ':,
5 Section 1. G.S. 20-7(f) reads as rewritten:
6 "(f) A drivers license expires on the birthday of the licensee
7 in the fourth year following the year of issuance; and no new
8 license shall be issued to any operator after the expiration of
9 his license until such operator has again passed the examination
10 specified in this section. Any operator may at any time within 60
11 days prior to the expiration of his license apply for a new
12 license and if the applicant meets the requirements of this
13 Chapter, the Division shall issue a new license to him. A new
14 license issued within 60 days prior to the expiration of an
15 applicant's old license or within 12 months thereafter shall
16 automatically expire four years from the date of the expiration
17 of the applicant's old license.
18 Any person serving in the armed forces of the United States on
19 active duty and holding a valid drivers license properly issued
20 under this section and stationed outside the State of North
94d-RWZ-220
Page 62
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Carolina may renew his license by making application to the
2 Division by mail. Any other person, except a nonresident as
3 defined in this Article, who holds a valid drivers license issued
4 under this section and who is temporarily residing outside North
5 Carolina, may also renew by making application to the Division by
6 mail. For purposes of this section "temporarily" shall mean not
7 less than 30 days continuous absence from North Carolina. In
8 either case, the Division may waive the examination and color
9 photograph ordinarily required for the renewal of a drivers
10 license, and may impose in lieu thereof such conditions as it may
11 deem appropriate to each particular application; provided that
12 such license shall expire 30 days after the licensee returns to
13 North Carolina, and such license shall be designated as
14 temporary.
15 Provided further, that no person who applies for the renewal of
16 a drivers license shall be required to take a written examination
17 or road test as a part of any such examination unless such person
18 has been convicted of a traffic violation or had prayer for
19 judgment continued with respect to any traffic violation within a
20 four-year period immediately preceding the date of such person's
21 renewal application or unless such person suffers from a mental
22 or physical condition which impairs his ability to operate a
23 motor vehicle,
24 Provided further, that no person who applies for the renewal of
25 his drivers license aod — who — mus-fc — taJte — th« — writt e n — ex amination
26 pursuant to this section shall be iss u e d a r e n e w e d l ic e n se un l e ss
27 ^uch — p e r so n — tta-s — furn is h ed — th« — required to furnish proof of
28 financial responsibility specified in subsection (cl).
29 Sec. 2. G.S. 20-7(cl), as amended by Chapter 368 of the
30 1993 Session Laws, reads as rewritten:
31 "(cl) Insurance. — The Division may not issue a drivers
32 license to a person until the person has furnished proof of
33 financial responsibility. Proof of financial responsibility shall
34 be in one of the following forms:
35 (1) A written certificate or electronically-transmitted
36 facsimile thereof from any insurance carrier duly
37 authorized to do business in this State certifying
38 that there is in effect a nonfleet private
39 passenger motor vehicle liability policy for the
'^O benefit of the person required to furnish proof of
Page 63 94d-RWZ-220
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 financial responsibility. The certificate or
2 facsimile shall state the effective date and
3 expiration date of the nonfleet private passenger
4 motor vehicle liability policy and shall state the
5 date that the certificate or facsimile is issued.
6 The certificate or facsimile shall remain effective
7 proof of financial responsibility for a period of
8 30 consecutive days following the date the
9 certificate or facsimile is issued but shall not in
10 and of itself constitute a binder or policy of
11 insurance.
12 (2) A binder for or policy of nonfleet private
13 passenger motor vehicle liability insurance under
14 which the applicant is insured, provided that the
15 binder or policy states the effective date and
16 expiration date of the nonfleet private passenger
17 motor vehicle liability policy.
18 The preceding provisions of this subsection do not apply to
19 applicants who do not own currently registered motor vehicles and
20 who do not operate nonfleet private passenger motor vehicles that
21 are owned by other persons and that are not insured under
22 commercial motor vehicle liability insurance policies. In such
23 cases, the applicant shall sign a written certificate to that
24 effect. Such certificate shall be furnished by the Division and
25 may be incorporated into the license application form. Any
26 material misrepresentation made by such person on such
27 certificate shall be grounds for suspension of that person's
28 license for a period of 90 days.
29 For the purpose of this subsection, the term "nonfleet private
30 passenger motor vehicle" has the definition ascribed to it in
31 Article 40 of General Statute Chapter 58.
32 The Commissioner may require that certificates required by this
33 subsection be on a form approved by the Commissioner.
34 The requirement of furnishing proof of financial responsibility
35 does not apply to a person who applies for a renewal of h-i-& his
36 or her drivers li c e n se — a^vd — uho — i-s — ft«-t — r e quir e d — to — tak e — the
37 wr i tt e n e xaminat i on , license .
38 Nothing in this subsection precludes any person from showing
39 proof of financial responsibility in any other manner authorized
40 by Articles 9A and 13 of this Chapter."
94d-RWZ-220 Page 64
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Sec, 3. Section 1 of this act becomes effective October
2 1, 1994 and expires December 31, 1994. Section 2 of this act
3 becomes effective January 1, 1995. Section 3 of this act is
4 effective upon ratification.
Page 65 94d-RWZ-220
Explanation of Proposal 3
ELIMINATE PROOF OF INSURANCE UPON RENEWAL
OF A DRIVERS LICENSE
At the January 5, 1994 meeting of the Committee, the Division of Motor
Vehicles (DMV) proposed elimination of the current requirement that proof
of insurance be snown when obtaining a drivers license. These requirements
were originally added by Chapter 869 of the 1987 Session Laws. At its
February 2, 1994 meeting, the Committee heard DMV's proposal, as well as
concerns expressed by the insurance industry about the effect of the pro-
posal. The Co-Chairs instructed Committee staff to meet with DMV and
representatives of the Department of Insurance and the insurance industrv
in an attempt to work out a compromise position on this issue. As directed,
Committee staff met with representatives of DMV. the Department of
Insurance, and the insurance industry. Based on these discussions, staff
prepared a draft bill that reflected items of agreement between the affected
parties. The draft bill was presented to the Committee at its April 6, 1994
meeting, and was approved with a change to the effective date.
The proposed bill amends G.S. 20-7 to eliminate the requirement that per-
sons who are renewing their drivers Ucense and who must take the written
examination show proof of insurance, effective October 1, 1994. Since G.S.
20-7 was previously rewritten and reorganized effective January 1. 1995,
Section 1 of the bill amends current G.S. 20-7(f) effective October 1. to
December 31, 1994, and Section 2 of the bill amends new G.S. 20-7(cl)
effective January 1, 1995. This bill is expected to eliminate 230,000 persons
a year from the requirement to obtain a DL-123 form from their insurance
company in order to show proof of Uabilitv insurance to DMV. This bill
makes no change to current requirements that persons show proof of liabil-
ity insurance before initial issuance or restoration of a drivers license, or
before the granting of a hmited driving privilege (after conviction of ex-
cessive speeding or an impaired driving offense).
66
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 4 ( 94d-RWZ-219 )
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Billboard Compensation Extended (Public)
Sponsors: Senators Lee, Hoyle, Marshall, Martin of Pitt,
Plexico, Simpson, Smith, and Speed.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO EXTEND THE EXPIRATION OF THE REQUIREMENT THAT JUST
3 COMPENSATION BE PAID FOR THE REMOVAL BY LOCAL AUTHORITIES OF
4 BILLBOARDS ON INTERSTATE AND FEDERAL-AID PRIMARY HIGHWAYS, AS
5 REQUIRED BY FEDERAL LAW.
6 The General Assembly of North Carolina enacts:
7 Section 1. Section 2 of Chapter 1147 of the 1981
8 Session Laws, as amended by Chapter 318 of the 1983 Session Laws,
9 and by Chapter 1024 of the 1987 Session Laws, and by Section 2 of
10 Chapter 166 of the 1989 Session Laws reads as rewritten:
11 "Sec. 2. This act is effective upon ratification, but shall
12 expire J-mi« — 3-0-, — 1 994 June 30, 1998 and shall have no force or
13 effect after that date."
14 Sec. 2, This act is effective upon ratification.
94d-RWZ-219 Page 67
Explanation of Proposal 4
EXTEND REQUIREMENT THAT JUST COMPENSATION BE PAID
FOR REMOVAL BY LOCAL AUTHORITIES OF BILLBOARDS
ON INTERSTATE AND FEDERAL-AID PRIMARY HIGHWAYS,
AS REQUIRED BY FEDERAL LAW
In 1978. Congi-ess amended the Federal Highway Beautification Act to
require just compensation for removal by local governments of billboards
lawfully erected under State law adjacent to an Interstate or Federal-aid
primary highway [23 U.S.C. 131(g)].
To comply with this federal directive, and avoid a potential loss of 10% of
the State s federal highway funds, in 1982 the General Assembly enacted
G.S. 136-131.1. This statute prohibits local governments from removing
billboards lawfully erected under State law and adjacent to an interstate or
federal-aid primary highway without the payment of just compensation.
G.S. 136-131.1 was originally given a sunset date of June 30, 1984, appar-
ently in case the federal law was subsequently repealed. The federal law
remained in effect, and G.S. 136-131.1 was, as a result, extended to June
30, 1988, and then to June 30. 1990, and finally to June 30, 1994.
At its April 6, 1994 meeting, the Committee approved a proposal by the
Department of Transportation to extend the sunset date. The proposed bill
would extend the sunset date of G.S. 136-131.1 to June 30, 1998.
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 5 ( 93-LJZ-30V2 )
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Uniform License & Registration Info.
(Public)
Sponsors: Senators Lee, Hoyle, Marshall, Martin of Pitt,
Plexico, Simpson, Smith, and Speed.
Referred to:
LICENSE AND VEHICLE
1 A BILL TO BE ENTITLED
2 AN ACT TO PROVIDE FOR UNIFORM DRIVERS
3 REGISTRATION INFORMATION.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-7 reads as rewritten:
6 "S 20-7. Issuance and renewal of drivers licenses.
7 (a) License Required. — To drive a motor vehicle on a
8 highway, a person must be licensed by the Division under this
9 Article or Article 2C of this Chapter to drive th a t v e h i c le, the
10 vehicle and must carry the license while driving the vehicle. The
11 Division issues regular drivers licenses under this Article and
12 issues commercial drivers licenses under Article 2C.
13 A license authorizes the holder of the license to drive any
14 vehicle included in the class of the license and any vehicle
15 included in a lesser class of license, except a vehicle for which
16 an endorsement is required. To drive a vehicle for which an
17 endorsement is required, a person must obtain both a license and
18 an endorsement for the vehicle. A regular drivers license is
19 considered a lesser class of license than its commercial
20 counterpart.
21 The classes of regular drivers licenses and the motor vehicles
22 that can be driven with each class of license are:
93-LJZ-30
Page 69
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 (1) Class A. — A Class A license authorizes the holder
2 to drive any of the following:
3 a. A Class A motor vehicle that is exempt under
4 G.S. 20-37.16 from the commercial drivers
5 license requirements.
6 ' b. A Class A motor vehicle that has a combined
7 GVWR of less than 26,001 pounds and includes
8 as part of the combination a towed unit that
9 has a GVWR of at least 10,001 pounds.
.10 (2) Class B. — A Class B license authorizes the holder
11 to drive any Class B motor vehicle that is exempt
12 under G.S. 20-37.16 from the commercial drivers
13 license requirements.
14 (3) Class C. — A Class C license authorizes the holder
15 to drive any of the following:
16 a. A Class C motor vehicle that is not a
17 commercial motor vehicle.
18 b. When operated by a volunteer member of a fire
19 department, a rescue squad, or an emergency
20 medical service (EMS) in the performance of
21 duty, a Class A or Class B fire-fighting,
22 rescue, or EMS motor vehicle or a combination
23 of these vehicles.
24 The Commissioner may assign a unique motor vehicle to a class
25 that is different from the class in which it would otherwise
26 belong.
27 A new resident of North Carolina who has a drivers license
28 issued by another jurisdiction must obtain a license from the
29 Division within 30 days after becoming a resident.
30 (al) Motorcycles and Mopeds. — To drive a motorcycle, a
31 person must have a drivers license and a motorcycle endorsement.
32 To obtain a motorcycle endorsement, a person must demonstrate
33 competence to drive a motorcycle by passing a road test and a
34 written or oral test concerning a motorcycle and must pay the fee
35 for a motorcycle endorsement. Neither a drivers license nor a
36 motorcycle endorsement is required to drive a moped.
37 (b) Repealed by Session Laws 1993, c. 368, s. 1, c. 533, s.
38 12, effective January 1, 1995.
39 -(-c-)- ( bl ) A pp lica t i on — smd — T es t s. Application. — To obtain a
40 drivers license from the Division, a person must complete an
41 application form provided by the Division, present at least two
42 forms of identification approved by the Commissioner, be a
43 resident of this State, and demonstrate his or her physical and
44 mental ability to drive safely a motor vehicle included in the
Page 70 93-LJZ-30
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 class of license for which the person has applied. The Division
2 may copy the identification presented or hold it for a brief
3 period of time to verify its a uth e nt i c i ty . I© authenticity. To
4 obtain an endorsement, a person must demonstrate his or her
5 physical and mental ability to drive safely the type of motor
6 vehicle for which the endorsement is required. Th e P iv ieio n sh all
7 n o t e a n a nd o c sa m a nt o n th e fac e o £ a d r i v a r B lica n sa.
8 The application form must request all of the following
9 information and may request other information the Division
10 considers necessary;
11 ( 1 ) The applicant's full name.
12 ( 2 ) The applicant's mailing address and residence
13 address .
14 ( 3 ) A physical description of the applicant, including
15 the applicant's sex, height, eye color, and hair
16 color.
17 ( 4 ) The applicant's date of birth.
18 ( 5) The applicant's social security number.
19 ( 6 ) The applicant's signature.
20 The application form must also contain the disclosures concerning
21 the request for an applicant's social security number required by
22 Section 7 of the federal Privacy Act of 1974, Pub. L. No. 93-579.
23 (c) Tests. — To demonstrate physical and mental ability, a
24 person must pass an examination. The examination may include
25 road tests, vision tests, oral tests, and, in the case of
26 literate applicants, written tests, as the Division may require.
27 The tests must ensure that an applicant recognizes the
28 handicapped international symbol of access, as defined in G.S.
29 20-37.5. The Division may not require a person who applies to
30 renew a license that has not expired to take a written test or a
31 road test unless one or more of the following applies:
32 (1) The person has been convicted of a traffic
33 violation since the person's license was last
34 issued.
35 (2) The applicant suffers from a mental or physical
36 condition that impairs the person's ability to
37 drive a motor vehicle.
38 The Division may not require a person who is at least 60 years
39 old to parallel park a motor vehicle as part of a road test.
40 (cl) Insurance. — The Division may not issue a drivers license
41 to a person until the person has furnished proof of financial
42 responsibility. Proof of financial responsibility shall be in one
43 of the following forms:
93-LJZ-30 Page 71
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 (1) A written certificate or electronically-transmitted
2 facsimile thereof from any insurance carrier duly
3 authorized to do business in this State certifying
4 that there is in effect a nonfleet private
5 passenger motor vehicle liability policy for the
6 benefit of the person required to furnish proof of
7 financial responsibility. The certificate or
8 facsimile shall state the effective date and
9 expiration date of the nonfleet private passenger
10 motor vehicle liability policy and shall state the
11 date that the certificate or facsimile is issued.
12 The certificate or facsimile shall remain effective
13 proof of financial responsibility for a period of
14 30 consecutive days following the date the
15 certificate or facsimile is issued but shall not in
16 and of itself constitute a binder or policy of
17 insurance.
18 (2) A binder for or policy of nonfleet private
19 passenger motor vehicle liability insurance under
20 which the applicant is insured, provided that the
21 binder or policy states the effective date and
22 expiration date of the nonfleet private passenger
23 motor vehicle liability policy.
24 The preceding provisions of this subsection do not apply to
25 applicants who do not own currently registered motor vehicles and
26 who do not operate nonfleet private passenger motor vehicles that
27 are owned by other persons and that are not insured under
28 commercial motor vehicle liability insurance policies. In such
29 cases, the applicant shall sign a written certificate to that
30 effect. Such certificate shall be furnished by the Division and
31 may be incorporated into the license application form. Any
32 material misrepresentation made by such person on such
33 certificate shall be grounds for suspension of that person's
34 license for a period of 90 days.
35 For the purpose of this subsection, the term "nonfleet private
36 passenger motor vehicle" has the definition ascribed to it in
37 Article 40 of General Statute Chapter 58.
38 The Commissioner may require that certificates required by this
39 subsection be on a form approved by the Commissioner.
40 The requirement of furnishing proof of financial responsibility
41 does not apply to a person who applies for a renewal of his
42 drivers license and who is not required to take the written
43 examination.
Page 72 93-LJZ-30
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Nothing in this subsection precludes any person from showing
2 proof of financial responsibility in any other manner authorized
3 by Articles 9A and 13 of this Chapter.
4 (d) Repealed by Session Laws 1993, c. 368, s. 1, effective
5 January 1, 1995.
6 (e) Restrictions. — The Division may impose any restriction
7 it finds advisable on a drivers license. A r es tr i ct io n s h all be
8 n o t ed o n th e f a c e o £ th e l ic a n ee. It is unlawful for the holder
9 of a restricted license to operate a motor vehicle without
10 complying with the restriction and is the equivalent of operating
11 a motor vehicle without a license. If any applicant shall suffer
12 from any physical defect or disease which affects his or her
13 operation of a motor vehicle, the Division may require to be
14 filed with it a certificate of such applicant's condition signed
15 by some medical authority of the applicant's community designated
16 by the Division. This certificate shall in all cases be treated
17 as confidential. Nothing in this subsection shall be construed
18 to prevent the Division from refusing to issue a license, either
19 restricted or unrestricted, to any person deemed to be incapable
20 of safely operating a motor vehicle. This subsection does not
21 prohibit deaf persons from operating motor vehicles who in every
22 other way meet the requirements of this section.
23 (f) Expiration and Temporary License. — The first drivers
24 license the Division issues to a person expires on the person's
25 fourth or subsequent birthday that occurs after the license is
26 issued and on which the individual's age is evenly divisible by
27 five, unless this subsection sets a different expiration date.
28 The first drivers license the Division issues to a person who is
29 at least 17 years old but is less than 18 years old expires on
30 the person's twentieth birthday. The first drivers license the
31 Division issues to a person who is at least 62 years old expires
32 on the person's birthday in the fifth year after the license is
33 issued, whether or not the person's age on that birthday is
34 evenly divisible by five.
35 A drivers license that was issued by the Division and is
36 renewed by the Division expires five years after the expiration
37 date of the license that is renewed. A person may apply to the
38 Division to renew a license during the 60-day period before the
39 license expires. The Division may not accept an application for
40 renewal made before the 60-day period begins.
41 Any person serving in the armed forces of the United States on
42 active duty and holding a valid drivers license properly issued
43 under this section and stationed outside the State of North
44 Carolina may renew the license by making application to the
93-LJZ-30 Page 73
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Division by mail. Any other person, except a nonresident, who
2 holds a valid drivers license issued under this section and who
3 is temporarily residing outside North Carolina, may also renew by
4 making application to the Division by mail. For purposes of this
5 section "temporarily" shall mean not less than 30 days continuous
6 absence from North Carolina. In either case, the Division may
7 waive the examination and color photograph otherwise required for
8 the renewal of a drivers license, and may impose in lieu thereof
9 any conditions it considers appropriate to each particular
10 application. A license renewed by mail is a temporary license
11 that expires 30 days after the person to whom it is issued
12 returns to this State.
13 (g) Repealed by Session Laws 1979, c. 667, s. 6.
14 (h) Repealed by Session Laws 1979, c. 113, s. 1.
15 (i) Fees. — The fee for a regular drivers license is the
16 amount set in the following table multiplied by the number of
17 years in the period for which the license is issued:
18
19 Class of Regular License Fee For Each Year
20
21 Class A $ 3.75
22 Class B 3.75
23 Class C 2.50
24
25 The fee for a motorcycle endorsement is one dollar and twenty-
26 five cents ($1.25) for each year of the period for which the
27 endorsement is issued. The appropriate fee must be paid before a
28 person receives a regular drivers license or an endorsement.
29 (il) Restoration Fee. — Any person whose drivers license has
30 been revoked pursuant to the provisions of this Chapter, other
31 than G.S. 20-17(2), shall pay a restoration fee of twenty-five
32 dollars ($25.00). A person whose drivers license has been
33 revoked under G.S. 20-17(2) shall pay a restoration fee of fifty
34 dollars ($50.00) until the end of the fiscal year in which the
35 cumulative total amount of fees deposited under this subsection
36 in the General Fund exceeds five million dollars ($5,000,000),
37 and shall pay a restoration fee of twenty-five dollars ($25.00)
38 thereafter. The fee shall be paid to the Division prior to the
39 issuance to such person of a new drivers license or the
40 restoration of the drivers license. The restoration fee shall be
41 paid to the Division in addition to any and all fees which may be
42 provided by law. This restoration fee shall not be required from
43 any licensee whose license was revoked or voluntarily surrendered
44 for medical or health reasons whether or not a medical evaluation
Page 74 93-LJZ-30
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 was conducted pursuant to this Chapter. The twenty-five dollar
2 ($25.00) fee, and the first twenty-five dollars ($25.00) of the
3 fifty-dollar ($50.00) fee, shall be deposited in the Highway
4 Fund. The remaining twenty-five dollars ($25.00) of the fifty-
5 dollar ($50.00) fee shall be deposited in the General Fund of the
6 State. The Office of State Budget and Management shall certify
7 to the Department of Transportation and the General Assembly when
8 the cumulative total amount of fees deposited in the General Fund
9 under this subsection exceeds five million dollars ($5,000,000),
10 and shall annually report to the General Assembly the amount of
11 fees deposited in the General Fund under this subsection.
12 It is the intent of the General Assembly to annually
13 appropriate the funds deposited in the General Fund under this
14 subsection to the Board of Governors of The University of North
15 Carolina to be used for the Center for Alcohol Studies Endowment
16 at The University of North Carolina at Chapel Hill, but not to
17 exceed this cumulative total of five million dollars
18 ($5,000,000).
19 (j) Highway Fund. — The fees collected under this section and
20 G.S. 20-14 shall be placed in the Highway Fund.
21 (k) Repealed by Session Laws 1991, c. 726, s. 5, effective
22 October 1, 1991.
23 (1) Learner's Permit. — Any person who except for lack of
24 instruction in operating a motor vehicle would be qualified to
25 obtain a drivers license under this Article may obtain a
26 learner's permit. A learner's permit authorizes the permit
27 holder to drive a specified type or class of motor vehicle while
28 in possession of the permit. A learner's permit is valid for a
29 period of 18 months after it is issued. The fee for a learner's
30 permit is ten dollars ($10.00). A learner's permit may be
31 renewed, or a second learner's permit may be issued, for an
32 additional period of 18 months. The permit holder must, while
33 operating a motor vehicle over the highways, be accompanied by a
34 person who is licensed to operate the motor vehicle being driven
35 and is seated beside the permit holder.
36 (1-1) Repealed by Session Laws 1991, c. 726, s. 5, effective
37 October 1, 1991.
38 (m) Instruction Permit. — The Division upon receiving proper
39 application may in its discretion issue a restricted instruction
40 permit effective for a school year or a lesser period to any of
41 the following applicants:
42 (1) An applicant who is less than 18 years old and is
43 enrolled in a drivers education program that is
44 approved by the State Superintendent of Public
93-LJZ-30 Page 75
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Instruction and is offered at a public high school,
2 a nonpublic secondary school, or a licensed drivers
3 training school.
4 (2) An applicant for certification under G.S. 20-218 as
5 a school bus driver.
6 A restricted instruction permit authorizes the holder of the
7 permit to drive a specified type or class of motor vehicle when
8 in possession of the permit, subject to any restrictions imposed
9 by the Division. The restrictions the Division may impose on a
10 permit include restrictions to designated areas and highways and
11 restrictions prohibiting operation except when an approved
12 instructor is occupying a seat beside the permittee. A
13 restricted instruction permit is not required to have a
14 distinguishing number or a picture of the person to whom the
15 permit is issued.
16 (n) Format. — E v a ry A drivers license issued by the Division
17 Ah^Xl — b«a-c — thoreon — th« — dis t i ngu is h i ng — num bo r — assi gn ed — to — the-
18 lice n see a n d colo r ph o t o graph o f th e lica n saa o f a size a ppr o v ed
19 b y th e — Co roro iesio n e r — and — sivail — co nt ai n — the — oAme-, — a^*T — r eside nc e
20 add r ess — And — a — ht-l^i — desc r i pt io n — oi — tiie — li c e n see , — wh o , — £a* — tii»
21 purp ose — oS, — ide nt i f ica t io n — and — a« — a — co n di t io n — pr e c ede nt — to — th«
22 v alidi ty o f — tiM — li c e n se , — i mm edia t el y up o n — r e c ei pt — th e r eo f , — s h all
23 e n do r se h is o r h e r — r e gu la r si gn a tur e — i n i nk up o n th e sa m e i n th e
24 s p ace pr o v ided f o r that purp ose un less — a f a c si m ile o f h is o r h e r
25 si gn a tur e — a pp ea r s — th e r eo n; — pr o v ided — til* must be designed to be
26 tamper proof, must contain all of the following information, and
27 may contain other information the Commissioner considers
28 necessary;
29
(1)
30
31
(2)
32
(3)
33
(4)
34
35
(5)
36
37
(6)
38
(7)
39
40
41
(8)
42
43
44
(9)
An identification of this State as the issuer of
the license.
The license holder's full name.
The license holder's residence address.
A color photograph of the license holder, taken by
the Division.
( 5 ) A physical description of the license holder,
including sex, height, eye color, and hair color.
The license holder's date of birth.
The license holder's social security number or
another identifying number assigned by the
Division.
Each class of motor vehicle the license holder is
authorized to drive and any endorsements or
restrictions that apply.
The license holder's signature.
Page 76 93-LJZ-30
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 ( 10) The date the license was issued and the date the
2 license expires.
3 The Commissioner may waive the requirement -tiwut of a color
4 photograph o£ — th% — li c e n see — a pp ea r on •t4%« a license m a y be w ai v ed
5 b y th e C oraro issio n e r up o n s at is f a ct o ry pr oo f if the license holder
6 proves to the satisfaction of the Commissioner that th« taking oi
7 -s-ttci* the photograph v iola t es would violate the license holder's
8 religious c o nv i ct io n g o f th e li c e n see. — D r i v e r s — li c e n ses — s h all be
9 iss u e d w i th d iff e r i ng c olo r ph o t o gr a ph i c ba c k gr o un ds ac c o r di ng t o
10 th% — licensee ' s — a^« — a-t — t i m e — frf — i ss u a n ce — foe — t4ve — f ollo w i ng — a^^
11 gr o up s ;
12 -(-L4- P e r so n s who h a v e n o t a tt ai n ed th e a g e o f 21 y ea r s.
13 -(-2-)- Per s on s who hav e a tt ai n ed th e a g e o f 21 y ea r s.
14 convictions. In taking photographs of license holders, the
15 Division must distinguish between license holders who are less
16 than 21 years old and license holders who are at least 21 years
17 old by using different color backgrounds for each group. The
18 Division shall determine the different colors to be used. &ucii
19 li c e n se — siuul4 — be — ca rr ied — by — th« — l ice n see — a4 — all — t i m es — wh ile
20 e ngag ed i n th e o p e r a t io n o f a m o t o r v e h i c le.
21 (o) Repealed by Session Laws 1991, c. 726, s. 5, effective
22 October 1, 1991."
23 Sec. 2. G.S. 20-37.7 reads as rewritten:
24 "S 20-37.7. Special identification card.
25 { a ) Eligibility. — Th e Di v isio n o f M o t o r V e h i c les — s h all up o n
26 sa t is f a ct o ry pr oo f of ide nt i f ica t io n iss u e a s p e c ial
27 i d e ntifi ca t io n — &a«4 — to — any — p e r so n — 1-1 — y ea r s — oc — oXd«-c — who — i4s — a
28 r es i de nt — »f — th« — &t4ut« — of — No^th — C a r oli n a. A person who is a
29 resident of this State, is at least 11 years old, and does not
30 have a drivers license is eligible for a special identification
31 card.
32 (b) Application. E v e ry a pp li c a t io n f*« a s p e c ial
33 ide ntif i c a t io n ca r d s h a l l b e m a d e o n th e a ppr o v ed f o rm furn is h ed
34 by — the — D iv isio n — and — s4%a-ll — be — a c compan ie d — by — a — b i rth — c e rtif ica t e
35 .and — o-tii«-c — pr oo f — of — i de ntif i cation — wh ic h — siva-ll — be — r e turn e d — wh e n
36 -til* — s p e c i al — ide nt i f i cati o n — ta-td — is — iss u e d . To obtain a special
37 identification card from the Division, a person must complete the
38 application form used to obtain a drivers license.
39 (c) Format. — S p e ci a l A special identification c a r ds — s h all be
40 iss u ed w i th di ff e r i ng color ph o togr a phic b ac kgr o un ds — a cc o r di ng to
41 th« — h olde r ' s — a^« — a-t — tirme — of — iss u a n ce — f«c — the — f ollo w i ng — ag«
42 group s ;
43 4-^ P e r so n s wh o hav e n o t att ai n ed th e a g e o f 21 y ea r s.
4 4 4-2-)- P e r so n s wh o h a v e a ttain ed th e a g e o f 21 y ea r s.
93-LJZ-30 Page 77
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Xh«- card shall be similar in size, shape, and design to a
2 dcivcr ' s- drivers license, but shall clearly state that it does
3 not entitle the person to whom it is issued to operate a motor
4 vehicle. A special identification card issued to an applicant
5 must have the same background color that a drivers license issued
6 to the applicant would have.
7 (d) Expiration and Fee. — A special identification card
8 issued to a person for the first time under this section expires
9 when a drivers license issued on the same day to that person
10 would expire. A special identification card renewed under this
11 section expires when a drivers license renewed by the card holder
12 on the same day would expire.
13 The fee for a special identification card is the same as the
14 fee set in G.S. 20-14 for a duplicate license. The fee does not
15 apply to a special identification card issued to a resident of
16 this State who is legally blind, is at least 70 years old, or is
17 homeless. To obtain a special identification card without paying
18 a fee, a homeless person must present a letter to the Division
19 from the director of a facility that provides care or shelter to
20 homeless persons verifying that the person is homeless.
21 (e) Offense. Any fraud or misrepresentation in the
22 application for or use of a special identification card issued
23 under this section is a Class 2 misdemeanor.
24 (f) Records. — The Division o £ M o t o r V e h i c les shall maintain
25 a record of all recipients of a special identification card. Xh^
26 Di v isio n — mAy — pr o mu l g a t e — any — waX** — and — r e gu la t io ns — IX — d««m*
27 n e c essa ry — tc«^ — tiie — e ff ec t i v e — i mp le m e nt a t io n — »£ — the — pr o v isio n s — o£
28 th is se ct io n .
29 (g) No State Liability. — The fact of issuance of a special
30 identification card pursuant to this section shall not place upon
31 the State of North Carolina or any agency thereof any liability
32 for the misuse thereof and the acceptance thereof as valid
33 identification is a matter left entirely to the discretion of any
34 person to whom such card is presented.
35 (h) Advertising. — The Division may utilize the various
36 communications media throughout the State to inform North
37 Carolina residents of the provisions of this section."
38 Sec. 3. G.S. 20-37. 15(a) reads as rewritten:
39 " ( a ) Tive — a pp lica t io n — to-t — a — comm e r cia l — d r i v e r s — li c e n se — iau«-t
40 i nc l ud e th e — fo ll ow i ng ;
41 4-^ Th e fu l l n a m e , — c urr e nt ma ili ng add r ess , — a n d c urr e nt
42 r eside n ce ad dr ess o f th e a pp lica nt;
43 -(-2-)- A phy si c al desc r i pt io n o f th e p e r so n i n cl u di ng sex ,
44 h ei ght, — a n d e y e a n d h ai r co l o r;
Page 78 93-LJZ-30
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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
Da t e o f birth;
Th e a ppl ica nt' s — social — se cur i ty num be r;
Th e a pp l ic a nt' s — si gnatur e ;
R e p eale d b y S essi on La w s 1 99 1 , c . 7 26 , — s. 1 7 .
C e rtificat io n s i n cl u di ng th ose r e qu i r e d by 4$
C . F . R . S 383. 71( a );
A — co n se nt — to — r elease — d r i v i ng — r e c o r d — i nf o rm a t io n;
8 And
9 4-9-)- Any oth e r inform a ti o n r e qu i r ed by th e Di v isio n .
10 An application for a commercial drivers license must include
11 the information required by G.S. 20-7 for a regular drivers
12 license and a consent to release driving record information. "
13 Sec. 4. G.S. 20-37. 16(a) reads as rewritten:
14 (a) A commercial drivers license must be marked "Commercial
15 Drivers License" or " CDL " — aad — s h all , — to — Um — m axi mum — e xt e nt
16 pr a ct icable , — be t a mp e r pr oo f . I t mu s t i nc l u de;
Th e p e r so n' s nam e a n d r eside nt ial add r ess ;
Th e p e r so n' s c olo r ph o t o gr a ph;
A phy s ical d es cript io n of th e p e r so n i n cl ud i ng sex ,
h ei ght, — e y e colo r, — an d h ai r c olo r;
Th e p e r s on' s dat e o f b i rth;
The — p e r s on' s — so ci al — sec ur i ty num be r — &c — any number
o r i d e nt i f ie r dee m ed a ppr o pr ia t e b y th e Di v isio n;
Th e p e r so n' s si gn a tur e ;
She — cl4u»« — &£ — c o mm e rc ial — m o t o r — v e h i c le — or — vehicles
wh i ch — Uie — p e r so n — i-s — a uth o r ized — to — drive — t o g e th e r
with a ny e n do r se m e nt s o r r es tr i ct io n s ;
Th e n a m e o f th is S t a t e ; a n d
Th e da t es be tw ee n wh ic h th e li c e n se is v alid.
30 "CDL" and must contain the information required by G.S. 20-7 for
31 a regular drivers license. "
32 Sec. 5. G.S. 20-52(a) reads as rewritten:
33 (a) Ev e ry An owner of a vehicle subject to registration
34 h e r e un de r &h«Xl m»k« a ppl i c a t i on 1« the Division tor tii*
35 r e g is tr a t i on — th e r e of — aad — i ss uanc e — o£ must apply to the Division
36 for a certificate of t i t le — tor — s uch v e h i c le up o n — tii% — appropriate
37 -fo*« o* fo-tm€ furni s h ed by tlie Di vi sio n, and every &uoh
38 a pp l ic a t i on — &ivaii — b«a-r — tiie — s ignatur e — oi — tlie — owner — written with
39 p»fl — and — init, — and — &Aid — si gn a tur e — sii*!^! — be — acknowledged — by — Ui«
40 own e r — be for e — a — p e r s on — authoriz ed — to — a d mini s t e r — oaths, — and — wtid
41 a pp li cati o n — tivaiO — conta i n ; title, a registration plate, and a
42 registration card for the vehicle. To apply, an owner must
43 complete an application form provided by the Division. The
44 application form must request all of the following information
93-LJZ-30 Page 79
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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 and may request other information the Division considers
2 necessary;
3 ( 1 ) The A«ua«-, — bojva — £-i-d« — c cside n co — and — iaa-i4 — a dd r ase — &£
4 X^t^ — o wn e r — &« — b u ei n ass — add c ass — oi — Uva — o wn a r — i-£ — a
5 .f-i-tm-, — associa t io n or c o rp o r a t io n; owner's name.
6 ( la ) If the owner is an individual, the following
7 information;
8 a . The owner's mailing address and residence
9 address .
10 b_^ The owner's social security number.
11 ( lb) If the owner is a firm, a partnership, a
12 corporation, or another entity, the address of the
13 entity.
14 (2) A description of the vehicle, i nc l u di ng, — i n so f a r as
15 -th« — herainaftar — s p a c i f iad — diuta — laay — »»ir«-t — w i th
16 r as p a ct — to — a — g i v a n — v a h i c la , th« including the
17 following:
18 a_^ The make, model, type of body, -fctva — sa r ial
19 nunb a r — oi — th« — v a h icla , — th% — a ng i n a — aod — o th a r
2 ide nt i fy i ng num ba r s o f th a v a h icla a n d wh a th a r
21 and vehicle identification number of the
22 vehicle.
23 b^ Whether the vehicle is new or u sad , — Aod used
24 and, if a new vehicle, the date o^ — s^iJUa — a«d
2 5 ac tu al — da-t« — of — dali v a ry — of — v a h icla — by — th«
26 m a nuf a ctur e r o r daala r t o th a p a r so n i nt e n di ng
27 -to — o p e r a t e — such — v e h i c le ; the manufacturer or
28 dealer sold the vehicle to the owner and the
29 date the manufacturer or dealer delivered the
30 vehicle to the owner.
31 (3) A statement of the app lica nt' s owner' s title and of
32 all liens upon the vehicle, including the names and
33 addresses of all lienholders in the order of their
34 priority, and the date and nature of each lie n;
35 lien.
36 -(-4-)- Such furth e r i nf o rm a t io n as may r easo na bl y — b»
37 r e qu i r ed — by — ti^e — Di v isio n — to — e n able — i-t — t o de t e rm i n e
38 wh e th e r the v e h icle ir* la wfu ll y e nt i t led to
39 r e g is tr a t i on and the o wn e r e nt i t led to a
4 ce rt i f i c a t e o f t i t le.
41 The application form must contain the disclosures concerning the
42 request for an applicant's social security number required by
43 Section 7 of the federal Privacy Act of 1974, Pub. L. No. 93-
44 579."
Page 80 93-LJZ-30
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Sec. 6. This act becomes effective January 1, 1995.
93-LJZ-30 Page 81
Explanation of Proposal 5
UNIFORM LICENSE AND REGISTRATION INFORMATION
Proposal 5 enables the Division of Motor Vehicles (DMV) of the Department
of Transportation to use the social security number of an individual as the
identifying number for that individual in the drivers license records, the
vehicle re^stration records, and the special identification card records of
the Division. It does this by requiring an individual who applies for a
drivers license, the registration of a vehicle, or a special identification card
to include the individual's social security number on the appHcation. The
proposal also authorizes but does not require DMV to use a social security
number as the drivers hcense number that is printed on a drivers license.
The changes become effective January 1, 1995.
DMV is in the process of establishing a new computer system for its drivers
license, special ID, and vehicle registration records. Use of a unique social
security number will enable DMV to cross-check information in these data
bases. Currently, the drivers license and vehicle registration data bases do
not use common identifiers and, consequently, cannot be used to cross-
check information.
Under current law, an applicant for a regular drivers license, a special ID
card, or a vehicle registration is not required to provide a social security
number. An apphcant for a commercial drivers license is required to provide
a social security number. Approximately 33 states use social security num-
bers for identification in drivers hcense records.
The proposal requires an application for a drivers license, a special ID card,
or a vehicle registration to contain the disclosures concerning social security
numbers that are required by federal law. Section 7 of the federal Privacy
Act of 1974 (Pub. L. 93-579) requires a state that requests an individual to
disclose his or her social security account number to inform the individual
whether the disclosure is mandatory or voluntary, the statutory or other
authority by which the number is requested, and the use that will be made
of the number. That section also prohibits a state from denying a benefit to
an individual based on the individual's failure to provide a social security
number when requested to do so unless the request is required by "Federal
statute" or is one of the pre-1975 grandfathered disclosures. The federal
statutes, at 42 U.S.C. 405(c)(2)(CHiT, declare that it is the policy of the
United States to allow a state to use social security numbers in the admini-
stration of any "tax. general public assistance, driver's license, or motor
vehicle registration law.. for the purpose of estabhshing the identification of
individuals affected by such law."
Thus, federal law authorizes a state to deny a drivers license or vehicle
registration to an individual based on the individual's failure to provide a
social security number. An application for a hcense or vehicle registration,
however, must contain a statement that the disclosure is mandatory, cite
the appropriate statute, and state that the number will be used as the
82
EXPLANATION OF PROPOSAL 5 (Continued)
identifying number of the indi\idual for drivers license or vehicle registra-
tion purposes, as appropriate. The federal law does not specifically refer to
special identification cards. North Carolina considers these cards as part of
its drivers license as a form of official identification. Thus, the same excep-
tions that apply to drivers licenses also apply to special ID cards.
In adding the requirement of providing a social security number when
applying for a drivers Hcense, a special ID card, or a vehicle registration,
the proposal makes numerous technical changes. These changes are the
reason why the bill is len^hy. The changes consolidate the application
requirements for a license mto one place in G.S. 20-7, delete duphcative
application requirements from the special ID statute and the commercial
drivers license statute, and consolidate the requirements for the kinds of
information a drivers hcense must contain. The requirement that a person
carry liis or her drivers license when operating a vehicle is moved from G.S.
20-7(n) to G.S. 20-7(a). The requirement that an endorsement or restriction
be noted on the face of a drivers license is moved from G.S. 20-7(c) and (e),
respectively, to G.S. 20-7(n). The proposal makes no changes in the informa-
tion required to obtain a drivers hcense. a special ID card, or a vehicle
registration other than the requirement of providing a social security
number.
83
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 6 ( 93-LJZ-28 ( V4 ) )
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Single State Insurance Registration. (Public]
Sponsors: Representatives McLaughlin, Bowen, Bowie, Grady, R,
Hunter, McAllister, and Robinson-
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO COMPLY WITH FEDERAL LAW BY REVISING THE BINGO STAMP
3 METHOD OF ENSURING THAT FOR-HIRE VEHICLES OPERATED IN THIS
4 STATE IN INTERSTATE COMMERCE ARE INSURED AND TO MAKE TECHNICAL
5 CHANGES TO THE MOTOR CARRIER LAWS.
6 The General Assembly of North Carolina enacts:
7 Section 1. G.S. 20-382 reads as rewritten:
8 "$ 20-382. I nt a r s t a t a ca rr ia r s. Registration of for-hire
9 interstate motor carriers and verification that their vehicles
10 are insured.
11 (a) Registration. — Th is A rt i c le — sJmiXI — a pp l y t o p a c so n e — aud
12 v a hi clas e ng a g ed i n i nt e r s t a t e co mm c cc c o v e r th e h i ghw a y s o £ th is
13 S t a t e , — ex c e pt — in so f a r — a« — the — pr o v is i o n s — o£ — thLs — A rt icle — m a y be
14 i n co n sis t e nt w i th , — o-t — &h«l-l — c ontr a v e n e , — the — C o n s t i tut io n o r — Laws
15 of — the — Unit ed — S tat es , — and — the — Di vi s ion m a y, — i« — i-fcs — disc r e t io n ,
16 r e qu i r e s uch c a rri e r s t o f ile with i t co pi es o f th ei r — r es p e ctiv e
17 i nt e r s t a te — a uthority — o< — r e gi s t e r — th*i* — exe mpt — o p e r a tion — and
18 r e gi s trat io n — of — th*i* — v e h i c les — op e rat ed — i« — the — S t a t e , — aftd — to
19 o b se rv e s uch r e a so nab le rul es a nd regu la t io n s as th e Di vi sio n m a y
20 d ee m advi sa bl e — in the — admini s tration of — thi s A rt icle — and — fo-r — th«
21 prot e ction — of — p e r s on s — and — prop e rty — upon — the — h i ghw a y s — of — th«
22 S t a t e . A motor carrier may not operate a for-hire motor vehicle
93-LJZ-28 Page 84
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 in interstate commerce in this State unless the motor carrier has
2 complied with all of the following requirements;
3 ( 1 ) Registered its operations with the Division by
4 doing one of the following:
5 a_^ Filing a copy of the certificate of authority
6 issued to it by the Interstate Commerce
7 Commission allowing it to operate in this
8 State and any amendments to that authority.
9 b_^ Certifying to the Division that it carries
10 only items that are not regulated by the
11 Interstate Commerce Commission.
12 ( 2 ) Verified, in accordance with subsection (b) or (c)
13 of this section, that it has insurance for each
14 for-hire motor vehicle it operates.
15 n2 Paid the fees set in G.S. 20-385.
16 (b) Insurance Verification For ICC-Regulated Motor Carriers.
17 2^ Th« — Di v isio n o r — iXs — a uth o r iaed — r a pg ase nt a t i v a — i-e — a uth o r iaa d
18 t o c o nf e r with an d t o h o l d j oi nt h ea r i ng s w i th th a a uth o r i t ias o f
19 o th e r — s tat es — o-r — w i th — th« — I nt e r s t a t e — C o mm e rc e — Co mm issio n — o^; — i.t«
2 r e pr ese nt a t i v es , o-t awy o-tlve-c f ede r al o< S t a t e a g e n c y i^
21 c o nn ec t io n w i th — a ny matt e r — a r isi ng un de r — Uvir« — Ch a pt e r , — o« — uod«4;
22 th« — F ede r al — Ito-toj; — Ca rr ie r — Act^, — wc — unda^; — any — o th e r — f ede r al — I«w
2 3 wh i ch — suty — di r ec t l y — o« — i n di r e ct l y a ff e ct — the — i nt e r es t s — of — th«^
24 p eo p le o f th is S t a t e o r th e p olic y decla r ed b y th is C h a pt e r o r b y
25 th e I nt e r s tat e Co mm e rc e A ct . A motor carrier that operates a for-
26 hire motor vehicle in interstate commerce in this State, is
27 regulated by the Interstate Commerce Commission, and designates
28 this State as its registration state must obtain a receipt from
29 the Division verifying that each for-hire motor vehicle the motor
30 carrier operates in any jurisdiction is insured. To obtain a
31 receipt, the motor carrier must apply annually to the Division
32 during the application period and state the number of for-hire
33 motor vehicles the motor carrier intends to operate in each
34 jurisdiction during the next calendar year. The certificate of
35 authority issued to the motor carrier by the Interstate Commerce
36 Commission is proof that the motor carrier has insurance for its
37 for-hire motor vehicles.
38 The motor carrier must keep a copy of the receipt in each of
39 its for-hire motor vehicles. The motor carrier may transfer the
40 receipt from one for-hire motor vehicle to another as long as the
41 total number of for-hire motor vehicles operated in any
42 jurisdiction and in all jurisdictions does not exceed the number
43 stated on the receipt.
Page 85 93-LJZ-28
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 A motor carrier may operate more for-hire motor vehicles in a
2 jurisdiction than stated in its most recent annual application
3 only if the motor carrier files another application with the
4 Division and obtains a receipt stating the increased number. A
5 motor carrier that obtains a receipt for an increased number of
6 for-hire motor vehicles must put a copy of the new receipt in
7 each of its for-hire motor vehicles. The new receipt replaces
8 rather than supplements the previous receipt.
9 (c) Insurance Verification For Non-Regulated Motor Carriers.
10 — Any person — operating — a — f o r - hir e — mot©* — v e h icle — in — i nt e r s t a t e
11 c o mm e rc e o v e r th e h i ghw a y s o £ th is S tat e w i th o ut h a v i ng pr o p e r l y
12 r e g is t e r e d w i th th e D i v isio n its r es p e ct i v e e x e mpt o p e r a t io n o r a
13 copy o£ its — interstate — a uthority — and — eac h v e h i c le — o p e r a t ed — in
14 th is S t a t e sha l l b e subj e ct t o a p e n al ty o f se v e nty - f i v e dolla r s
15 ($7 5.00 ), wh i ch sh all be ad ded t o th e r e g is tr a t io n f ees pr o v ided
16 i« G.S. 20-385 — aftd — ft*id — p e n al ty — friwinLl — be — c olle ct ed — w i th — said
17 registration — f«« — fr o m a ny c a rr ie r o p e r a t i ng o n — th e h i ghw a y s — o4
18 Notti; — Carolina without — r e g is t e r i ng — hirS — i nt e r s t a t e — a uth o r i ty b y
19 i n s p e ct o r s a n d o ff i c e r s o f th e Di v isio n i n a cc o r da nc e w i th ru les
20 a nd r e gu la ti o n s d u l y ado pt ed b y th e D i v isio n be f o r e said v e h icle
21 s ha ll be p e rm i tt ed t o o p e rat e furth e r up o n th e h i ghw a y s o f N o rth
22 Ca r oli n a. A motor carrier that operates a for-hire motor vehicle
23 in interstate commerce in this State and is exempt from
24 regulation by the Interstate Commerce Commission must verify to
25 the Division that each for-hire motor vehicle the motor carrier
26 operates in this State is insured. To do this, the motor carrier
27 must obtain annually for each for-hire motor vehicle a cab card
28 approved by the Commissioner and a North Carolina identification
29 stamp issued by the Division. To obtain an identification stamp,
30 the motor carrier must apply annually to the Division during the
31 application period for an identification stamp for each for-hire
32 motor vehicle the motor carrier intends to operate in this State
33 during the next twelve-month period beginning February 1.
34 The motor carrier must place the identification stamp on the
35 cab card and keep the cab card in the for-hire motor vehicle for
36 which it was issued. An identification stamp is issued for a
37 specific for-hire motor vehicle and is not transferable from one
38 for-hire motor vehicle to another.
39 A motor carrier may operate in this State a for-hire motor
40 vehicle for which it did not obtain an identification stamp
41 during the most recent annual application period only if it
42 obtains for that vehicle either a cab card and identification
43 stamp or an emergency permit. A motor carrier may obtain an
44 additional identification stamp after the close of the annual
93-LJZ-28 Page 86
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 application period by filing an application for it with the
2 Division. An identification stamp issued after the close of the
3 annual application period expires the same date as one issued
4 during the annual application period.
5 A motor carrier may obtain an emergency permit by filing an
6 application for it with the Division. An emergency permit allows
7 the motor carrier to operate a for-hire motor vehicle in this
8 State without a cab card and identification stamp between the
9 time the motor carrier has applied for an identification stamp
10 and the time the Division issues the identification stamp.
11 4-d-) — Mo motor — ca rg ie r , — wh e th e r — o p e r a t i ng as — a — r e gu l at ed — c a r c ie c
12 wi exempt — for-hire — c a rr ie r , — tivail — o p e r a t e &< — o*us^ — 1« — b«
13 operated — i-n — i nt e r s t a t e — co mm e rc e — iA — th is — S t a t e — a ny vr e h i cl e — unt il
14 h e ha s f iled e v ide nc e o £ r e qu i r ed i n s ur a n ce w i th th e Di vi sio n a n d
15 h«« — b««A — issued — an — ide nt i f ica t io n — s44uap — fox — &uch — v e h icle , — wh i ch
16 stamp — mu«-t — be — a tt ac h ed — 1« — tii% — a ppr o v ed — un i f o rm — &ab — cjutd — aad
17 ca rr ied — i* — tive — v e h icle — at — all — t i m es . — Xiie — ide nt i f i c a t io n — s t a mp
18 h e r ei n — pr o v ided — f«c — s^Mtll — be — iss ue d — on — an — a nnu al — b««ls — a« — »£
19 J a nu a ry 1s t eac h y ea r a n d s h all be v alid thr o ugh F eb ru a ry 1s t th e
20 u»*t — s u cceedi ng — y e ar . — Wh e n — ajay — p e r so n — i^ — disco v e r ed — iu — tivi*
21 S t a t e , — op e r a t i ng a v e h icle i n v iola t io n o f th is — se ct io n, — i t s h all
22 be un la wfu l — f o r a ny o n e th e r ea ft e r t o o p e r a t e said v e h icle o n th e
23 s tr ee t s — o-t — h i ghw a y s — &f — tlUr« — S t a t e , — exce pt — to — r e m o v e — it — fr o m th e
24 s tr ee t o r h i ghw a y f o r purp oses o f p a r ki ng o r s t o r i ng said v e h i c le
25 ufttil — h« — sh«H — p*¥ — 1« — th« — Di v isio n — a — p e n al ty — of — se v e nty - f i v e
26 dolla r s ( $ 7 5.00 ) . N o co urt o f th e S t a t e s h all e nt e rta i n a s u i t o f
27 a ny ki n d b r o ught — fa«^ — th« — purp ose o f pr e v e nt i ng — tive — c ollec t io n o f
28 a ny p e n al ty i mp osed i n th is — se ct io n . Wh e n e v e r a p e r so n s ha ll h a v e
29 a v alid de f e n se t o th e e nf o r ce m e nt o f th e collec t io n o f a p e n al ty
30 assessed — o-c — c h a rg ed — a g ai n s t — hin-, — such — p e r so n — &tvall — p«y — s u c h
31 p e n al ty t o th e pr o p e r o ff i c e r, — a n d n o t i fy s u c h o ff i c e r — i n wr i t i ng
32 -Uiat — he — p*y* — tiie — s«une — un4«-c — pr o t es t. — Such — p a ym e nt — sh*ll — b»
33 w i th o ut — pr e jud ice — trO — any — de f e n se — os — r i ght s — he — m^y — hAv« — iA — th«
34 pr e m ises , — and — he — may, — at — aay — time — w i th i n — 3-0 — days — a-f-te-r — such
3 5 p a ym e nt , — de m a nd — th« — &ame — In — writing — i-tJ^m — th« — Co mm issi on e r — c£
36 M o t o r V e h i c les ; — a nd i f sa m e — s hall n o t be — r e fund ed w i th i n 9 da y s
37 th e r ea ft e r , — mAy — sue — s uch offic ial — In — th« — c ourt s — of — th« — S-ta-te — tt^x-
38 th e a m o unt so d e mand ed. — Such s u i t mu s t be b r ou ght i n th e S up e r io r
39 C o urt of W a k e C ounty, — o-t — in th e county i n wh ic h th e p e r so n p a y i ng
40 ^h« — p e na l ty — r esi d es . — No — r es tra i n i ng — c«-de-c — o-v — i njunct i on — &hall
41 iss u e — f-c-offi — any — ccur-t — o^ — the — S-t*t-e — 1« — r es tr ai n — o-t — e nj oi n — th«
42 collec t io n — cf — th« — p e n al ty — o-r — to — p e rm i t — the — o p e r a t io n — of — s-al4
43 v e h icle w i thout paym e nt o f th e p e nalty pr es cri bed h e r ei n ."
Page 87 93-LJZ-28
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 Sec. 2. Part 2 of Article 17 of Chapter 20 of the
2 General Statutes is amended by adding a new section to read:
3 " 5 20-382.1. Registration of for-hire intrastate motor carriers
4 and verification that their vehicles are insured.
5 (a) Registration. — A motor carrier may not operate a for-hire
6 motor vehicle in intrastate commerce in this State unless the
7 motor carrier has complied with all of the following
8 requirements;
9 ( 1 ) Registered its operations with the State by doing
10 one of the following:
11 a. Obtaining a certificate or a permit from the
12 North Carolina Utilities Commission, if the
13 motor carrier hauls regulated items.
14 b^ Obtaining a certificate of exemption from the
15 Division, if the motor carrier hauls only
16 items that are not regulated by the North
17 Carolina Utilities Commission.
18 ( 2 ) Verified, in accordance with subsection (b) of this
19 section, that it has insurance for each for-hire
2 motor vehicle it operates in this State.
21 (3) Paid the fees set in G.S. 20-385.
22 (b) Insurance Verification. — A motor carrier that operates
23 a for-hire vehicle in intrastate commerce in this State must
24 verify to the Division that each for-hire motor vehicle it
25 operates in this State is insured. To do this, the motor carrier
26 must submit an insurance verification form to the Division and
27 must file annually with the Division a list of the for-hire
28 vehicles it operates in this State. "
29 Sec. 3. Part 2 of Article 17 of Chapter 20 of the
30 General Statutes is amended by adding a new section to read:
31 " S 20-382.2. Penalty for failure to comply with registration or
32 insurance verification requirements.
33 (a) Acts. — A motor carrier who does any of the following is
34 subject to a civil penalty of seventy-five dollars ($75.00):
35 ( 1 ) Operates a for-hire motor vehicle in this State
36 without registering its operations, as required by
37 this Part.
38 ( 2 ) Operates a for-hire motor vehicle in interstate
39 commerce in this State that does not carry a copy
4 of either an insurance registration receipt issued
41 to the motor carrier or a cab card with an
4 2 identification stamp issued for the vehicle, as
43 required by G.S. 20-382.
93-LJZ-28 Page 88
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 ( 3 ) Operates a for-hire motor vehicle in intrastate
2 commerce in this State for which it has not
3 verified it has insurance, as required by G.S. 20-
4 382.1.
5 (b) Payment. — When the Division finds that a for-hire motor
6 vehicle is operated in this State in violation of the
7 registration and insurance verification requirements of this
8 Part, the motor vehicle may not be driven for a purpose other
9 than to park the motor vehicle until the penalty imposed under
10 this section is paid unless the officer that imposes the penalty
11 determines that operation of the motor vehicle will not
12 jeopardize collection of the penalty. A motor carrier that
13 denies liability for a penalty imposed under this section may pay
14 the penalty under protest and apply to the Division for a
15 hearing.
16 (c) Hearing. — Upon receiving a request for a hearing, the
17 Commissioner must schedule a hearing within 30 days after receipt
18 of the request. If after the hearing the Commissioner determines
19 that the motor carrier was not liable for the penalty, the amount
20 collected must be refunded. If after the hearing the
21 Commissioner determines that the motor carrier was liable for the
22 penalty, the motor carrier may bring an action in the Superior
23 Court of Wake County against the Division for refund of the
24 penalty. A court of this State may not issue a restraining order
25 or an injunction to restrain or enjoin the collection of the
26 penalty or to permit the operation of the vehicle without payment
27 of the penalty.
28 (d) Proceeds. — A penalty imposed under this section is
29 payable to the Division. Penalties collected under this section
30 shall be credited to the Highway Fund as nontax revenue. "
31 Sec. 4. G.S. 20-385 reads as rewritten:
32 "S 20-385. P a rt i cu la r — £««c — aad — ch a rg ac — f ixad ; — p a ym e nt . Fee
33 schedule.
34 (a) Amounts. — Xh« — Di v isi on e — s^iwtil — r e c ei v e — and — colle ct — tli*
35 f ollo w i ng f eee — a n d ch a rg es;
36 -(-3-4- Ofte — dolla r — ( $1 .00 ) — £^« — the — r e g is tr a t io n — w i th — tiie
37 D iv isio n — oi e*«h — mot^u; v e h icle to — be put i*
38 op e r a t io n — by — a — m o tor — c a rr ie r — o p e r a t i ng — uo4e-c — th«
39 jur isdi ct io n o£ t^^e M o rth Ca r oli n a Ut ili t ies
40 C o mmi ssi on, — an d a f ee of on e do lla r — ( $1.00 ) — f o r th e
41 a nnu a l — r e r e gi s trat io n o f ea ch s uch m o t o r v e h i c le.
42 -(-24- Tw e nty - f i v e — dolla r s — ( $25.00 ) — fa* — tiie — f ili ng — w i th
43 t4^e Di v isio n oi th« i nt e r s t a t e m o t o r c a rr ie r
44 o p e r a t i ng — a uth o r i ty — o-t — r e g is tr a t io n — of — i nt e r s t a t e
Page 89 93-LJZ-28
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 exe mpt — o p e rat io n — »£ — e v e ry — m o t o r — c a rr ie r — op e r a t i ng
2 -ijvto-, — ts-^Oh — w i th i n, — at — thr o ugh N o rth — C a r oli n a — and
3 filed — w i th — the — Di v igio n — un de r — the — pr o v isio n s — a£
4 G .S. 20-382 a n d f i ve do lla r s ( $5.00 ) f o r f ili ng all
5 s u bse qu e nt a m e n d m e nt s th e r e t o to — m ai nt ai n — said
6 f i l i ng i n a curr e nt s t a tu s.
7 ( 3 ) One — dollar — ( $1.00 ) — to* — the — r e g is trat io n w i th — the
8 Di v isio n o f eac h m o t o r v e h i c le o p e r a t ed i nt o , — fr o m,
9 within, — ox — thr o ugh — Nex-th — C a r oli n a — by — i nt e r s t a t e
10 carri e r s a nd r e g is t e r ed w i th th e Di v isio n un de r th e
11 pr o v isi on s o f G .S. — 20-382 , — a n d a f ee o f o n e dolla r
12 ($1.00) — f«c — th e a nnu al — r e r e g is tr a t io n o f eac h s uch
13 m o t o r vf e h i c le.
14 ( 4 ) Twenty-five — dolla r s — ( $25.00 ) — fco< — e*ch — C e rt i f i c a t e
15 o f E x e mpt io n iss u ed b y th e D i v isio n .
16 4-5-)- T«u — do ll a r s — ( $10. ) — f«£ — e«ch — e m e rg e n c y — p e rm i t
17 iss u ed — by — the — D iv isio n — i n a cc o r da n ce — w44h — G.S .
18 20-382.
19 ( 1 ) Verification by a for-hire motor
20 carrier of insurance for each for-hire
21 motor vehicle operated in this State $1 . 00
22 ( 2 ) Application by an intrastate motor carrier
2 3 for a certificate of exemption 25.00
24 ( 3) Certification by an interstate motor carrier
25 that it is not regulated by the ICC 25.00
26 ( 4 ) Application by an interstate motor carrier
27 for an emergency permit
28 10.00.
29 (b) Reciprocal Agreements. — The fee set in subdivision (a)(1)
30 of this section does not apply to the verification of insurance
31 by an interstate motor carrier regulated by the Interstate
32 Commerce Commission if the Division had a reciprocal agreement on
33 November 15, 1991, with another state by which no fee is imposed.
34 The Division had reciprocal agreements as of that date with the
35 following states; California, Delaware, Indiana, Maryland,
36 Massachusetts, Michigan, Minnesota, Missouri, Nebraslca, New
37 Jersey, Pennsylvania, Texas, and Vermont. "
38 Sec. 5. G.S. 20-376(3), (6), (10), (11), (12), (17),
39 (18), (20), and (22) are repealed.
40 Sec. 6. This act is effective upon ratification.
93-LJZ-28 Page 90
Explanation of Proposal 6
SINGLE STATE INSURANCE REGISTRATION
Proposal 6 conforms the State law concerning the registration of certain
interstate for-hire motor carriers to the requirements of federal law, clarifies
the registration requirements that apply to intrastate for-hire motor car-
riers, and makes technical changes to the motor carrier registration laws.
The changes are effective upon ratification.
The Intermodal Surface Transportation Act of 1991 amended 49 U.S.C. §
11506 by directing the federal Interstate Commerce Commission (ICC) to
adopt regulations requiring states to implement a single-state registration
system for interstate for-hire motor carriers that are regulated by the ICC.
The ICC accordingly revised 49 C.F.R. Part 1023 to make the mandated
changes. As revised. 49 C.F.R. Part 1023 required states to eliminate the
bing'o stamp method of registering ICC-regulated for-hire interstate motor
carriers by December 31, 1993, and replace it with a single-state registra-
tion system that is similar to other multi-state registration systems such
as the International Registration Plan and the International Fuel Tax
Agi'eement.
The Division of Motor Vehicles of the Department of Transportation com-
pUed with the new federal law and, effective with the 1994 calendar year,
switched to the single-state registration system. The North Carolina stat-
utes, however, have not been changed and, therefore, conflict with both
federal law and administrative practice. Sections 1 and 4 of this proposal
rewrite the appropriate statutes to resolve these conflicts.
Section 1 estabhshes the single-state registration method for for-hire motor
cai-riers that are regulated by the ICC and retains the bingo stamp method
for interstate motor carriers that are not regulated by the ICC. The differ-
ence in these two methods is described below.
Section 4 revises the fee schedule for registration of interstate for-hire motor
carriers to eliminate fees the State is prohibited by federal law from collect-
ing. Federal law prohibits a state from collecting a fee from an ICC-
regulated interstate for-hire motor carrier for filing with the State a copy of
the carrier's ICC certificate of authority or an amendment to that certifi-
cate. Accordingly, Section 4 eliminates the current $25 fee on these carriers
for filing a copy of their ICC certificate of authority and the $5 fee for filing
an amendment to the certificate.
91
EXPLANATION OF PROPOSAL 6 (Continued)
Federal law also requires the State to waive collection of the $1 vehicle
registration fee if it had a reciprocal agreement with another state on
November 15, 1991. that required it to do so. Accordingly. Section 4 lists
the states with whom North Carolina had reciprocal agreements as of that
date.
Both the bingo stamp method and the single-state method of registering
interstate motor carriers are means to ensure that for-hire motor vehicles
operated in interstate commerce in North Carolina are insured. Under the
bin^o stamp method, the motor carrier applies to each state in which a
vehicle will be driven for an identification stamp that is specific to the
vehicle. To obtain the stamp, the carrier must prove that the carrier has
insurance on the vehicle and that the insurance meets the state's require-
ments for insurance coverage. The carrier places each stamp on a card that
resembles a bingo cai-d. The card has a blank for a stamp from each state.
The carrier then puts the card with the stamps in the motor vehicle for
which the stamps were issued. The driver of the motor vehicle must display
the card to a law enforcement officer when requested to do so. A copy of a
bingo stamp follows this explanation.
Under the single-state method, the states choose whether or not to be a
participating state and each motor carrier selects one of the participating
states as its registration state. The state selected must be the carrier's
principal place of business or the state in which it will operate the largest
number of vehicles. North Carolina has chosen to be a participating state.
Therefore, each motor carrier whose principal place of business is in North
Carolina and each motor carrier whose principal place of business is in a
non-participating state and whose operations are largely in North Carolina
must choose North Carolina as its single registration state. North
Cai-olina's role as the single registration state for a motor carrier is to
register the vehicles the carrier will operate in any state during a calendar
year, collect the fees that apply to each state in which a vehicle will be
operated, and issue a receipt to the carrier showing the total number of
vehicles the carrier has registered for each state.
To obtain a receipt, a carrier must prove that it has a certificate of authority
issued by the ICC. The certificate of authority is proof that the carrier has
adequate insurance: a state may not demand more coverage than is required
to obtain an ICC certificate of authority. The carrier must put a copy of the
receipt in each of the carrier's vehicles. Like its bingo stamp predecessor,
the receipt must be showTi to a law enforcement officer upon request. Unlike
its bingo stamp predecessor, the receipt is not specific to a vehicle, thereby
enabling a carrier to replace vehicles or swap them without applying for a
new receipt. A copy of a single state insurance registration receipt follows
this explanation.
92
EXPLANATION OF PROPOSAL 6 (Continued)
The switch to a single-state method for ICC-regulated interstate for-hire
motor carriers completely changes the registration system for these ve-
hicles.
The Division of Motor Vehicles will register vehicles to be operated in any
jurisdiction for motor carriers who select North Carolina as their registra-
tion state and will not register any vehicles to be operated in the State bv
motor carriers whose registration state is a state other than North
Carolina. In addition, as required by federal law, the application period for
registration and the period m which a registration is valid differs from the
bingo stamp method. The application period for the single-state system is
August 1 to November 30, and the application period for the bingo stamp
method is October 1 through January 31. A registration issued under the
single-state system expires on December 31, and a registration issued under
the bingo stamp method expires February 1.
In addition to rewriting the statutes to incorporate the single-state method,
the bill clarifies the registration requirements of intrastate motor carriers,
makes the current penalty for violations by interstate motor carriers appU-
cable to intrastate motor carriers as well, and makes technical changes. The
State statutes do not address the registration of intrastate motor carriers
even though the Division of Motor Vehicles currently requires the carriers
to both register their operations with the State and verify that their vehicles
are insured. Section 2 of the bill codifies the current administrative practice
on this subject. Section 3 moves the penalty provisions in G.S. 20-382(d)
that apply to interstate motor carriers to a new statute and includes in-
trastate motor carriers within its scope. The present penalty is subject to
legal challenge on the basis of both equal protection and the federal com-
merce clause.
The bill makes numerous technical changes to make the wording of the
statutes consistent, to eliminate confusion, and to eUminate unnecessary
provisions. Section 5 of the bill is part of the technical changes. It deletes
definitions in G.S. 20-386 that either duphcate the definitions in G.S. 20-
4.01 or are not used in the Article. The definitions in G.S. 20-386(6), (11),
(17), and (20) are also defined in G.S. 20-4.01, which applies to every statute
in Chapter 20. The definitions in G.S. 20-386(3), (10). (12), (18), and (22) are
not used in the Article and are, therefore, unnecessary.
BINGO STAMP
94
North Carolina Division of Motor Vehicles
SINGLE STATE INSURANCE REGISTRATION
rSTRATXOH RECeiPT-FORH RS-3 »
««****•.♦?♦:«->;*
C DePARTi^ENT OF MOTOR VEHICLES
^ee HLri BEkH I'lVEHUL
r'lLEIGH, HC 2 7526
ELEPHOHE HO: <9i 9)733-7631
riCCORDAHCE HUH PUBLIC LAH ie2-2'^e. ■«
3 RECEIPT, EVIDENCING REGISTRATION »
"CC AUTORITY. MUST BE CARRIED IH «
CAB OF TNE VEHICLE AND HAY NOT BE *
-KED. ALTEkATIOH HILL RESULT IH «
"ISCAFION AND PENALITIES- »
* EFFECTIVE: ©i/ei/?4 EXPIRES: 12/31/9A
» SERIAL NO:
» THIS RECEIPT AUTHORIZES THIS MOTOR
*» CARRIER TO OPERATE IH THE FOLLOIJING
» STAFES:
AL<©'i39) ,
CTC027a> ,
IL<ei89) ,
LA(eia7) ,
HN<©ee4) .
NC<1 117),
NH(eie6) .
RIC0I89) ,
TX<ei5i) .
WIC0005) ,
AR<ei74)
CA(06'i6)
IH<0i42)
HA ( e f 99 )
M0<ee43)
ND(60e2)
HY(e363)
SC(0616> .
UT(e003)
WV(0303)
CA<©17S)
IAC0009>
KS(0007>
ME (0004)
MS < ©302)
NE(0007)
OH < ©229)
SD<00O2)
VA<©5B2)
C0<9e©4)
ID(00e3>
i<Y{ei49)
HI(0029>
HT<©©©2)
NH(0014)
OK < ©082)
TN(©527)
HA ( ©001 )
r♦;«*l*««*{«*^s«^^«^i^^+i«^^*+^^^«^^^J^5^^^J^^^^^^,
95
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
(Proposal 7) 93-LJZ-36
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: TRAC Lease Not Sale or Security Interest. (Public)
Sponsors: Senators Speed, Hoyle, Lee, Marshall, Martin of Pitt,
Plexico, Simpson, and Smith.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT CLARIFYING THAT A MOTOR VEHICLE OPERATING LEASE THAT
3 CONTAINS A TERMINAL RENTAL ADJUSTMENT CLAUSE IS NOT A SALE AND
4 DOES NOT CREATE A SECURITY INTEREST IN THE LEASED PROPERTY.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 25-2A-103 ( 1 ) ( j ) reads as rewritten:
7 "(j) 'Lease' means a transfer of the right to possession
8 and use of goods for a term in return for
9 consideration, but a sale, including a sale on
10 approval or a sale or return, or retention or
11 creation of a security interest is not a lease.
12 Unless the context clearly indicates otherwise, the
13 term includes a sublease. The term includes a
14 motor vehicle operating agreement that is
15 considered a lease under § 7701(h) of the Internal
16 Revenue Code. "
17 Sec. 2. This act is effective upon ratification.
93-LJZ-36 Page 96
Explanation of Proposal 7
TRAC LEASE NOT SALE OR SECURITY INTEREST
This proposal clarifies the status under the Uniform Commercial Code of a
lease that contains a terminal rental adjustment clause. It declares that
this type of lease, known as a TRAC lease, is a lease. This prevents the
possibility that this type of lease would be considered by a court to be a
security mterest or a sale. The change is effective upon ratification.
Tills proposal was recommended to the Transportation Oversight
Committee by the truck leasing industry. Similar legislation has been
passed in about 20 other states. The industry is concerned that in the
absence of this provision in the law, a TRAC lease might not be considered
a true lease and would, therefore, be considered to be either a sale or a
security interest.
It matters whether or not an agreement is a lease, a sale, or a security
interest for tax purposes and also for the commercial purpose of determining
who is entitled to the property covered by the agreement if the person who
agreed to pay for the use of the property declares bankruptcy or otherwise
defaults on the agreement. Section 7701(h) of the Internal Revenue Code
resolves the issue for tax purposes by considering a TRAC lease as a lease
rather than a sale or a security interest. The issue arguably remains open
for the commercial purpose.
The significance of the commercial purpose is illustrated in the following
example: suppose Company X leases vehicles to Company Y under a TRAC
lease and that Company Y declares bankruptcy. If tne TRAC lease is con-
sidered a sale, then Company X cannot get the vehicles back from Company
Y. If the TRAC lease is considered a security interest. Company X will join
Company Y's other creditors who are attempting to get the assets of
Company Y. If Company X did not file its lease as a security interest, which
it is not likely to have done because it did not consider the lease a security
interest, it will be an imsecured creditor and its claims will, therefore, be
met only after the claims of Company Y's secured creditors have been
satisfied.
A TRAC lease is a motor vehicle operating lease that contains a terminal
rental adjustment clause. This clause permits an adjustment of rent either
upwards or downwards at the end of the lease based on the difference at the
end of the lease between the expected value of the vehicle and its actual
value. If the actual value exceeds the expected value, the lessor compensates
the lessee for taking good care of the vehicle. If the actual value is less than
the expected value, the lessee compensates the lessor for the shortfall. The
clause is, therefore, a means to give lessees an incentive to properly main-
tain the leased vehicles and to allow lessors to lower their rates because the
clause lowers their risk of residual loss.
97
EXPLANATION OF PROPOSAL 7 (Continued)
The proposal is supported by the American Automotive Leasing Association
and the Equipment Leasing Association. It does not affect consumer
automobile leases.
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 8 ( 94 J-RWZ-006 )
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Let DOT Sell Ferry Souvenirs. (Public)
Sponsors: Representatives Bowie, Bowen, Grady, R. Hunter,
McAllister, McLaughlin, and Robinson.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION TO SELL
3 SOUVENIRS ON FERRIES AND AT FERRY FACILITIES.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 136-82 reads as rewritten:
6 "S 136-82. Department of Transportation to establish and maintain
7 ferries.
8 The Department of Transportation is vested with authority to
9 provide for the establishment and maintenance of ferries
10 connecting the parts of the State highway system, whenever in its
11 discretion the public good may so require, and to prescribe and
12 collect such tolls therefor as may, in the discretion of the
13 Department of Transportation, be expedient.
14 To accomplish the purpose of this section said Department of
15 Transportation is authorized to acquire, own, lease, charter or
16 otherwise control all necessary vessels, boats, terminals or
17 other facilities required for the proper operation of such
18 ferries or to enter into contracts with persons, firms or
19 corporations for the operation thereof and to pay therefor such
20 reasonable sums as may in the opinion of said Department of
21 Transportation represent the fair value of the public service
22 rendered.
23 To pr o vid e for th e comfort and conv e nienc e of th e p asse ng e r s o n
24 -the — f e rri es — es tab l i s h e d — and mainta i ned pur s uant — 1« — th4-s — sec t i on,
25 -tti* The Department of Transportation, notwithstanding any other
94J-RWZ-006 Page 99
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1993
1 provision of law, may operate, or contract for the operation of,
2 concessions on the ferries and at ferry facilities to provide to
3 passengers on the ferries food, drink, and other refreshments,
4 «uad personal comfort i t e m s — to-c — tho se — pa sse ng e r s . items, and
5 souvenirs publicizing the ferry system. "
6 Sec. 2. This act becomes effective July 1, 1994.
** EXPLANATION **
This proposal amends G.S. 136-82 to allow DOT to sell or coniraci for the sale of souvenirs publicizing the
ferry system on ferries aiid at ferry facilities.
Page 100 94J-RWZ-006
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 9 ( 94J-RWZ-004 )
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Let DOT Dredge For Local Gov't. (Public)
Sponsors: Representatives Bowen, Bowie, Grady, R. Hunter,
McAllister, McLaughlin, and Robinson.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION TO PERFORM
3 DREDGING SERVICES FOR UNITS OF LOCAL GOVERNMENT.
4 The General Assembly of North Carolina enacts:
5 Section 1. Article 6 of Chapter 136 of the General
6 Statutes is amended by adding a new section to read:
7 " § 136-82.2 Authority to perform dredging service.
8 The Department of Transportation may perform dredging services,
9 on a cost reimbursement basis, for a unit of local government. "
10 Sec. 2. G.S. 66-58(c) is amended by adding a new
11 subdivision to read:
12 " (16) The performance by the Department of
13 Transportation of dredging services for a unit
14 of local government. "
15 Sec. 3. This act becomes effective July 1, 1994.
** EXPLANATION **
This proposal amends G.S. 66-58 (restrictions on government business activity), cuid adds new G.S. 136-82.2
to allow the Department of Transportation to perform dredging services on a cost reimbursement basis for local
governments.
94J-RWZ-004 Page 101
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 10 ( 94J-RWZ-007 )
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Remove DOT Appraisal Exception Sunset. (Public)
Sponsors: Representatives R. Hunter, Bowen, Bowie, Grady,
McAllister, McLaughlin, and Robinson.
Referred to;
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE PERMANENT THE EXEMPTION FOR REAL ESTATE ACQUIRED
3 BY THE DEPARTMENT OF TRANSPORTATION FROM THE REQUIREMENT THAT
4 IT BE APPRAISED BY A LICENSED OR CERTIFIED APPRAISER WHEN THE
5 ESTIMATED VALUE OF THE REAL ESTATE IS LESS THAN TEN THOUSAND
6 DOLLARS.
7 The General Assembly of North Carolina enacts:
8 Section 1. Section 2 of Chapter 94 of the 1991 Session
9 Laws, as amended by Section 1 of Chapter 519 of the 1993 Session
10 Laws, reads as rewritten:
11 "Sec. 2. This act is effective upon rat i f i c a t io n a n d
12 ex pir es Ju l y 1 , — 1 994 . ratification. "
13 Sec. 2. This act is upon ratification.
** EXPLANATION **
Tliis proposal amends Section 2 of Chapter 94 of the 1991 Session Laws to remove the July 1 , 1994 sunset
from tliat section. The section currently exempts DOT from the requirement that real estate be appraised by a
licensed or certified appraiser when the estimated value of the real estate is less than $10,000.
94J-RWZ-007 Page 102
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 11 (94J-RWZ-012)
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Let DOT Buy Mitigation Land. (Public
Sponsors: Representatives McLaughlin, Bowen, Bowie, Grady, R,
Hunter, McAllister, and Robinson.
Referred to;
1 A BILL TO BE ENTITLED
2 AN ACT TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION TO ACQUIRE
3 LAND BY GIFT OR PURCHASE FOR ENVIRONMENTAL MITIGATION OR
4 ENHANCEMENT.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 136-18 is amended by adding a new
7 subdivision to read:
8 " ( 28a) The Department of Transportation may obtain,
9 by gift or purchase, a fee interest or an
10 easement in land for the following:
11 a_^ Wetland mitigation or other environmental
12 mitigation or enhancement in conjunction
13 with a transportation project.
14 b^ A wetlands bank or another type of
15 environmental mitigation or enhancement
16 provided for by the Intermodal Surface
17 Transportation Efficiency Act of 1991. "
18 Sec. 2. This act becomes effective July 1, 1994.
** EXPLANATION **
This proposal allows DOT to obtain land in fee or by easement through gift or purchase for wetland or other
environmental mitigation when necessary in conjunction with a transportation project or pursuant lo ISTEA.
94J-RWZ-012 Page 103
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 12 ( 94J-RWZ-014 )
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Limit vehicle overweight penalties. (Public)
Sponsors: Senators Hoyle and Smith.
Referred to;
1 A BILL TO BE ENTITLED
2 AN ACT TO LIMIT PENALTIES FOR MULTIPLE VIOLATIONS OF SINGLE AXLE,
3 TANDEM AXLE, AND AXLE GROUP WEIGHT LIMITS.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-118 is amended by adding a new
6 subsection to read:
7 " (el) Penalty Limit For Multiple Violations. — Penalties for
8 two or more violations of the weight limits set by this section
9 are limited as follows:
10 ( 1 ) If the weight of a vehicle does not exceed 80,000
11 pounds, the total penalty assessed shall not exceed
12 the highest of the single-axle, tandem-axle, or
13 axle group penalties that apply.
14 (2) If the weight of a vehicle exceeds 80,000 pounds,
15 the total penalty assessed shall be:
16 a_^ The penalty for exceeding 80,000 pounds, if
17 that is the highest of the penalties that
18 apply-
19 b^ The penalty under subdivision (1), plus the
20 penalty for exceeding 80,000 pounds, if the
21 penalty for exceeding 80,000 pounds is not the
22 highest of the penalties that apply. "
23 Sec. 2. This act becomes effective July 1, 1994.
** EXPLANATION **
This proposal originated with the subcommittee on bridge fonmila and penalty slacking. For a discussion of
it, see the Bridge Formula and Penalty Stacking Subcommittee Report in this report.
94J-RWZ-014 Page 104
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1993
Proposal 13 ( 94 J-RWXZ-015 )
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Forest weight tolerance/fee. (Public)
Sponsors: Senators Hoyle and Smith.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ALLOW A TEN PERCENT WEIGHT TOLERANCE FOR VEHICLES
3 TRANSPORTING UNPROCESSED FOREST PRODUCTS UPON PAYMENT OF A FEE.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-118(c) is amended by adding a new
6 subdivision to read:
7 ( 13 ) Unprocessed forest products. — Vehicles transporting
8 unprocessed forest products may exceed the axle group weight
9 limits set in this section by up to ten percent (10%), subject to
10 a maximum gross weight of 80,000 pounds and upon payment of a fee
11 of one-hundred fifty dollars ($150.00) to the Division. This
12 exception shall not apply to vehicles on Interstate highways.
13 Sec. 2. This act becomes effective July 1, 1994.
14
1 5 **EXPLANATlON**
1 6 This proposal originated with the subcommillee on bridge formula and penalty slacking. For a discussion
1 1 of it, see the Bridge Formula and Penalty Stacking Subcommittee Report in this report.
94J-RWXZ-015 Page 105
PROPOSAL 14
CONFIDENTIALITY OF DMV RECORDS
At the request of Co-Chairman Senator Lee. at its January and February
meeting the Committee reviewed DMV's practice of giving out vehicle
owners home addresses over the phone when persons call with a license
plate number. This issue, and the broader issue of privacy of motor vehicle
records, had become a concern due to recent stalking cases and harassment
of persons at medical faciUties.
Prior to making any recommendations, the Committee reviewed current
N.C. statutes and rules on this issue, which provide that: (1) Vehicle regis-
tration records are public records open to inspection (G.S. 132-6); (2) DMV
records must be open to pubhc inspection during business hours (G.S. 20-
43); and (3) "Verification of information from (DMV) records as to license
numbers, ownership, or liability insurance requires a written request..."
(N.C. Administrative Code T19A: 03C .0232).
In addition, the Committee reviewed existing DMV practice concerning
requests to identify names and addresses using license plate numbers.
According to Carol Howard, Assistant Director of the Vehicle Registration
Section, the Division of Motor Vehicles frequently receives requests for
names and addresses to match license plate numbers, for a variety of
reasons, from individuals and organizations. Organizations that request the
information frequentlv are assigned a user code, and billed for each request.
Individuals with single or infrequent requests were asked to fill out a record
request form, and pay a $1.00 copying fee. In some situations, the informa-
tion was given out over the phone to individuals if a sufficiently urgent need
was stated, such as a vehicle blocking a road or driveway. No records were
kept of telephone requests.
The Committee, following its review of current law and DMV practice,
asked DMV to suggest ways to address this issue. In response, at the
Committee's February meeting, Carol Howard of DMV's Drivers License
Section, proposed a revision to its policy, which was endorsed by the
Committee, and became effective April 15, 1994.
The new policy for release of vehicle registration information is as follows:
Vehicle registration information will be released by two methods:
1. Request for information made in writing; or
2. Request made through the Special Telephone Service by a
User Code Number.
106
CONFIDENTIALITY OF DMV RECORDS (Continued)
In addition, the $1 charge for information remains, but is waived for
law enforcement and other government agencies, but their requests
must also be in ^\Titing. In situations where information is needed
immediately, a fax will be accepted. The new request for information
form, MVR-605A, provides a place for the requester to sign a statement
certifying that the information obtained will be used only for the pur-
pose stated by the requester on the form.
107
PROPOSAL 15
PROPOSED RECOMMENDATIONS
FOR
INMATE LABOR PROGRAM
Recommend that the Departments of Transportation and Correction
review all of their procedures to maximize the use of road squad inmate
labor without imperiling the pubhc. Assign a lead staff person to over-
see, coordinate and evaluate procedures to ensure that the greatest
number of inmates are assigned to road squads.
Recommend that at each road squad unit a labor pool be created. This
would allow for the replacement of inmates who are not available on a
particular day. thereby assuring an ample pool of ehgible inmates. In
addition, it is recommended that DOC develop a procedure to make
relief officers available when needed for road squads.
Recommend that inmates who meet the criteria for road squad assign-
ment be assigned to units with road squads, and that DOC review their
need for road squads, by unit, in order to assign as many eligible
inmates to road squad units as possible.
Recommend placing more minimum custody inmates on road squads,
including using 14 man crews under DOC supervision.
Recommend that DOC construct additional day room space onto exist-
ing barracks. The construction of additional day room space will allow
DOC to assign more inmates to units with road squads. DOC has lost
over 400 inmate beds from existing medium custody facilities due to
court action requiring that inmates be provided additional day room
space. DOC also plans to eliminate 400 existing beds at minimum
custody facihties, which could be saved by adding day room space to
existing barracks.
Recommend that DOC funding be based on the actual number of labor
days for both minimum and medium custody inmates.
Recommend that DOC comply with the requirements of G.S. 148-26.5
and compute the annual cost of the inmate labor road squad program,
and report these costs to the Joint Legislative Transportation
Oversignt Committee. The Fiscal Research Division will work with the
department in preparing a format for computing the actual costs of
operating the inmate road squads.
108
PROPOSED RECOMMENDATIONS FOR INMATE LABOR PROGRAM
(Continued)
8. Recommend DOC review its practice of prohibiting the use of inmates
with serious assaultive crimes against persons until they are within 6
months of being eligible for minimum custody. A recommendation is
that DOC consider dianging the 6 month time frame to one year and 2
years for all others.
9. Recommend that DOT identify employees of the DOT and inmates on
road squads by means of signs ana appropriate apparel, or other ways
of identifying work crews on our highways and roads.
10. Recommend that the departments use more inmates to paint guard
rails and eradicate weed and shrub around guard rails and road signs.
Recommend that DOC review their pohcy of not allowing medmm
custody inmates to use chain saws.
11. Require both departments to report quarterly to the Joint Legislative
Transportation Oversight Committee on the status of their efforts to
comply with the recommendations of the subcommittee and full com-
mittee. The Fiscal Research Division staff wiU make recommendations
on reporting requirements to the departments.
109
SUBCOMMITEE
REPORTS
SUBCOMMITTEES
The Chairmen of the Transportation Oversight Committee appointed three
Subcommittees to deUberate on issues and bring back recommendations to
the full Committee, The Subcommittees and their membership are as
follows:
FS-1 INSURANCE FORMS
Senator Elaine Marshall, Chair
Senator David Hoyle
Representative George Robinson
Representative Dan DeVane
INMATE LABOR
Representative Bob Hunter, Chair
Representative Mary McAllister
Senator Jim Speed
Senator Paul Smith
BRIDGE FORMULA/PENALTY STACKING
Senator David Hoyle, Chair
Senator Paul Smith
Representative Bob Hunter
Representative George Robinson
REPORT FROM THE SUBCOMMITTEE ON THE
USE OF INMATE LABOR IN ROAD SQUADS
The Subcommittee on the Use of Inmate Labor in Road Squads was
chai-ged with strengthening the current road squad inmate labor program.
It especially was charged with the aspects of the program involving road
squads assigned to work with the Department of Transportation. In par-
ticulai*. the Subcommittee was asked to discuss and make specific recom-
mendations concerning:
(1) Putting more inmates to work on road squad assignments;
(2) Making the inmate labor program more viable to the general
public;
(3) A determination of whether a pilot program is needed in order to
accomplish 1) and 2) above;
(4) The impact of future prison construction on the inmate labor pro-
gram; and,
(5) A review of the actual program costs to the Departments of
Correction and Transportation.
112
REPORT FROM THE SUBCOMMITTEE ON THE
USE OF INMATE LABOR IN ROAD SQUADS (Continued)
COMMITTEE PROCEEDINGS
DECEMBER 1, 1993 MEETING
The Subcommittee held its first meeting. Representative Hunter stated
that there is a perception by the pubhc that most of the inmates in our
penal system are not provided with work assignments and are a drain on
our State's resources. He also stated that of tne inmates on road mainte-
nance work, there is generally no way for the public to identify these in-
mates at work sites, unless there is a ^ard nearby with a shotgun.
Representative Hunter stated that it was his desire to come up with recom-
mendations to address the public's concerns and to allow for free and honest
dialo^e between the Departments of Correction and Transportation on this
very miportant matter.
Committee staff discussed the cooperative contract agreement outlining
each department's responsibility in assuring that minimum and medium
custody inmates are assigned to local road squads.
Keith Hester. Assistant Command Manager, Department of Correction's
Division of Prisons, was recognized. He stated that local prisons are often
hindered from assigning adequate medium custody inmates to road squads
due to an insufficient number of correctional officers. Subcommittee mem-
bers were told that these correctional officers, who supervise medium
custody inmates on road assignments, do not have a "relief" factor. If a
correctional officer is sick or on leave, there is no one available to go out and
supervise the inmates, so the inmates do not go out for that day or period of
time.
Keith Hester also discussed at length a document which identifies the
status, on a monthly basis, of all inmates under the supervision of the
Depai-tment of Correction. The Assignment File Summary is a document
used by DOC managers to show them the aggregation of inmates under
numerous scenarios.
JANUARY 5, 1994
The Subcommittee held its second meeting and heard from Harry Ballard.
NCDOC, who spoke in detail about inmate assignments. He told the
Subcommittee that besides on-unit assignments (food service, maintenance,
etc.) available to inmates there are three (3) other major assignment areas
available to inmates: Business Enterprises, Education Related Programs,
113
REPORT FROM THE SUBCOMMITTEE ON THE
USE OF INMATE LABOR IN ROAD SQUADS (Continued)
and Road Squads, Harry Ballard answered questions pertaining to inmate
assignments and described the various categories of work includmg inmates
health gi-ades. Subcommittee members asked DOC to provide them with
additional information for the next meeting. They especially want to see a
breakout of the Admissions Processing. Unassigned and Assignment
Pending Categories shown in the DOC document.
The Subcommittee discussed the loss of beds at local units due to the day
room space requirements under the Small vs. Martin lawsuit. This lawsuit
requires DOC to provide each inmate with 25 square feet of day room space.
In most units. DOC took out inmate beds in order to meet the mandate of
the lawsuit, which has had the net result of reducing the number of beds in
a unit and thereby helping to contribute to the reduction of inmates that are
available for road squads. According to DOC over 400 beds have been lost at
local units in their attempts to comply with the lawsuit and they anticipate
losing another 470 beds by July 1, 1994.
There was some discussion by the Subcommittee on the types of road
assignments available to inmates and the type of equipment mmates are
allowed and not allowed to handle. The subcommittee was told by DOC staff
that medium security inmates are not allowed to use chain saws in road
squads, but can use bush axes. The Subcommittee Chairman asked DOC to
return to the next Subcommittee meeting to discuss possible recommenda-
tions pertaining to assigning more inmates to road squads and the issues of
safety and security in road assignments.
FEBRUARY 1, 1994
The Subcommittee held its third meeting. DOC staff reviewed for the
Subcommittee the admissions process for inmates assigned to the various
Correction units and provided the Subcommittee members with a breakout
of the major categories identified at the previous meeting. DOC staff
discussed the various stages that an inmate must be put through including
an initial diagnostic exam and a review of their criminal action. The
Subcommittee Chairman was interested in determining how many of the
inmates going through the admissions process could be assigned to units
with road squads. DOC staff was not able to give the Subcommittee a
definitive answer. Thev told the Subcommittee tliat many of the inmates
being processed were classified as misdemeanants and, therefore, not in the
penal system long enough to be assigned to a road squad unit; inmates
assigned to road squads are all convicted felons.
REPORT FROM THE SUBCOMMITTEE ON THE
USE OF INMATE LABOR IN ROAD SQUADS (Continued)
DOC staff was asked to discuss their rationale for eliminating the use of
chain saws by road squad inmates. DOC told the Subcommittee that after a
1990 accident that resulted in the death of a road squad inmate, they
reviewed their road squad pohcies including the use of equipment. As a
result of their pohcy re\dew, it was ultimately decided that medium custody
inmates would not oe allowed to use chain saws; they cited lack of training,
safety, and security as the rationale for not allowing this category of in-
mates to use chain saws.
There was a discussion by Subcommittee staff pertaining to program costs
to DOC in managing the inmate labor program. DOC identified tlieir actual
costs for operating the program at approximately $6.5 million, including
fringe benefits. Staff also reviewed the main components of the contract
agreement between DOC and DOT. There was some concern expressed by
the Subcommittee members on the inability of DOC to pro\dde more than
47% of the inmate labor days for medium custody inmates to DOT. DOT
reimburses DOC $4.6 miUion for 185,000 inmate labor days, but is only
receiving approximately 87,000 inmate labor days. DOC staff told the
Committee that the Director of the Division of Prisons has proposed that
DOC pay for all program costs in future years, but that this proposal is
under review.
There was some discussion on the costs of providing a rehef factor for those
units with medium custody road squads.
The Subcommittee discussed the recommendations drafted by staff and
discussed each recommendation at length. The Subcommittee Chairman
asked both DOC and DOT to review the recommendations and return on
February 2, 1994 for a final review of the recommendations.
FEBRUARY 2, 1994
The Subcommittee held its fourth and final meeting to discuss and adopt
recommendations and to approve its final recommendations to the Joint
Legislative Transportation Oversight Committee.
115
REPORT FROM THE SUBCOMMITTEE ON CERTIFICATION
OF MOTOR VEHICLE LIABILITY INSURANCE FORMS (FS-ls)
The Joint Legislative Transportation Oversight Subcommittee on
Certification of Motor Vehicle Liability Insurance Forms (FS-1) met twice,
November 19. 1993 and April 26, 1994.
At the first meeting, the Division of Motor Vehicles presented an overview
of the problem the Subcommittee was formed to address. Each year, ap-
proximately 1.6 million notices of termination of insurance (FS-4s) are sent
to DMV by insurance companies, as required by law. From this informa-
tion, DMV generates over 1 million letters of lapse of insurance coverage
(FS5-7s) informing the vehicle owners they must certify habiUty coverage or
face loss of their license plate. Clearance of plate revocation occurs when an
FS-1 form pro\dded by tlie individual's insurance company is forwarded to
the Division. Many people who receive these letters have done nothing more
than change insurance carriers. They often object to being threatened with
administrative action because no system of updating information on insur-
ance status currently exists between DMV and the insurance industry.
The Subcommittee discussed methods to address this problem, including
requiring insurance companies to submit to DMV notification of all new
UabiUty pohcies. This would theoretically allow DMV to match notices of
cancellations with notices of new business, thus avoiding thousands of let-
ters and enforcement efforts against persons who have maintained con-
tinuous habiHty coverage. Although simple in theory, this strategy is
complicated by many factors, including errors in vehicle identification num-
bers (VINs) and hmitations in the current DMV computer system.
DMV proposed that submission of certification of insurance forms (FS-ls)
by insurers be tested in a pilot program. The pilot would allow DMV and
the insurance industry to examine several issues, including DMV's ability
to handle the increased workload, methods to increase accuracy in vehicle
identification number matching, and evaluation of the effectiveness of the
proposed requirement measured by decreases in FS5-7s and FS-44s (plate
pick-up orders sent to enforcement officers). DMV agreed to make regular
updates to the Joint Legislative Transportation Oversight Committee on
the progress of the pilot program.
The Subcommittee agreed unanimously to endorse the proposed pilot pro-
gram, with regular reports to the Oversight Committee.
At the April 6 meeting of the Transportation Oversight Committee, Senator
Elaine Marshall, Chairman of the Subcommittee, briefed the full committee
on the issues regarding the inefficiencies in the current system of certifica-
tion of compulsory liability insurance. Dale Clark, of the Department of
Transportation's Management Information Services (MIS) Division, re-
f)ortea on the progress of the pilot program. It began February 1 with four
arge
116
REPORT FROM THE SUBCOMMITTEE ON CERTIFICATION
OF MOTOR VEHICLE LIABILITY INSURANCE FORMS
(FS-ls) (Continued)
insurance companies voluntarily submitting electronically FS-1 forms on all
new business within 30 days of the effective date of the new policy. The four
companies participating are Nationwide. Farm Bureau. State Farm, and
Integon. The industry estimates these four companies account for 60-70^f of
all automobile insurance policies written in North Carolina.
Statistical results for February 7th through March 25th showed that even
with the additional information submitted by the insurance industry, only
4.3% of all FS-ls (certification) submitted were able to clear an FS-4 (termi-
nation) in time to stop an FS5-7 (lapse of insurance letter). Senator
Marshall reported the Subcommittee would continue to meet to discuss and
formulate possible recommendations to the Oversight Committee for inclu-
sion in the final report to be submitted to the 1994 General Assembly.
The Subcommittee met for the second time on April 26, 1994 at the
Division of Motor Vehicles. After a short tour of the Financial Security
Section, the Subcommittee agreed to recommend the following to the Joint
Legislative Transportation Oversight Committee at its next meeting:
1. That DMV change the parameters of the pilot program to experi-
ment with new procedures to improve the matching of FS-4s and
FS-ls.
Currently. DMV is mailmg an FS5-7 within 24 hours of receipt of
an FS-4 from insurance companies. Information gleaned from the
pilot program indicated if the FS5-7 was not sent out immediately
and was neld for eight days, the matching percentage could poten-
tially increase to 60%.
DMV responded that this change was being implemented
immediately.
2. Make 17-digit VIN edit package used by DMV available to all
insurance companies.
One of the reasons the matching percentage was so low in the early
stages of the pilot program was that 10% of all FS-ls from insur-
ance companies contained VINs that were incorrect. Most com-
panies use a smaller edit package of 11 digits, while DMV matches
all 17 digits of the total VIN.
DMV responded that they are willing to make this software pack-
age available to anybody in the industry at no cost. Da\ad Home,
wlio represents independent insurance companies, agreed to publi-
cize this benefit through the statewide traae association.
117
REPORT FROM THE SUBCOMMITTEE ON CERTIFICATION
OF MOTOR VEHICLE LIABILITY INSURANCE FORMS
(FS-ls) (Continued)
3. Require more uniformity of information submitted from the insur-
ance industry.
Recommendations for industry standards will be formulated
through the cooperation of DMV and representatives of the insur-
ance industry. The items to be addressed include: (1) the maximum
waiting period for submission of FS-4s to DMV; and, (2)the com-
pany size and volume of business that can be expected to transmit
FS-4s electronically.
DMV and the insurance industry responded by agreeing to develop
guidelines for more efficient transmission of information.
118
REPORT FROM THE SUBCOMMITTEE
ON BRIDGE FORMULA AND PENALTY STACKING
The Bridge Formula and Penalty Stacking Subcommittee met three times:
on January 26. April 19. and May 17. 1994. At its first meeting, the
Subcommittee reviewed the history of the federal bridge formula and its
application to State roads, defined and discussed "penalty stacking."
discussed the exceptions in G.S. 20-118(i)(2) that expired on October 1.
1994. reviewed examples of DMV weight enforcement actions, heard from
the Federal Highway Administration concerning efforts by it to make en-
forcement of the federal bridge formula more uniform, and received comment
from two affected industries: the forestry industry, which expressed interest
in a weight exception, and the concrete mix industry, which expressed
support for the current law. At the end of the meeting, the Subcommittee
asked staff to prepare information on weights and penalties in surrounding
southeastern states.
At the Subcommittee's second meeting, the Subcommittee reviewed data
from surrounding states, which indicates that North Carolina is the only
State in the region that is "stacking" axle weight and bridge formula weight
penalties for violations on State highways and applying the bridge formula
weight Umits to vehicles that transport unprocessed forest products on
State roads. The Subcommittee heard from representatives of the forest
products industry, who expressed support for an exception to the bridge
formula weight limits for their industry. The Subcommittee reviewed
various options to address these problems, and tentatively approved a rec-
ommendation that vehicles transporting forest products be granted an axle-
group weight tolerance.
At the Subcommittee's final meeting on May 17, 1994, the Subcommittee
reviewed several draft bills addressing penalty stacking and the weight
exceptions. The Subcommittee also heard from representatives of the forest
products and construction aggregates industries who requested considera-
tion of weight tolerances for tneir industries. The Subcommittee approved
the following two bills, which were also approved by the full Committee for
submission to the 1994 General Assembly:
1. Short Title: Limit vehicle weight penalties
Draft 94J-RWZ-014 amends G.S. 20-118 to eUminate penalty
stacking for multiple violations of single axle, tandem axle, and
axle group (bridge formula) weight limits, except on interstate
highways. The total penalty for two or more single axle, tandem
axle, or axle group weight violations would be the nighest one that
appHed. If a vehicle exceeds 80,000 pounds, the penalty for that
violation would apply in addition to the highest weight penalty that
applied.
Ruth Sappie of the Fiscal Research Division, in her analysis for the
Subcommittee, estimated that this proposal will result in a $2.5
million loss of revenue to the Highway Fund.
119
BRIDGE FORMULA AND PENALTY STACKING (Continued)
Short Title: Forest weight tolerance/fee
Draft 94J-RWJ-015 amends G.S. 20-118 to allow a lO^c weight
tolerance for vehicles transporting unprocessed forest products,
subject to a maximum gross weight of 80,000 pounds and upon
payment of a $150 fee to the Division of Motor Vehicles.
120
MANDATED
REPORTS
MANDATED REPORTS
The 1993 General Assembly mandated the Department of Transportation
(DOT) to present numerous reports to the Transportation Oversight
Committee. DOT has met all deadlines in the submission of its reports. The
key findings and recommendations of each report are summarized below.
CONSOLIDATION OF DRIVER LICENSE OFFICES
Since January. 1992. 45 part-time DMV driver license offices have been
closed. This number of closings is less than that recommended by
GPAC (64). the State Auditor (71). and DMV itself (67). The decision
not to close more offices was based on the desire to have at least one
office in every county and to have offices within 25 miles of all citizens.
The State now has 99 full-service offices, 8 express offices, and 43
part-time offices.
The savings from the office closings is $10,202 in reduced travel and a
cost avoidance of $635,223 from not automating the 45 closed offices.
GPAC recommended a reduction in staff, but DMV has reassigned
personnel from the part-time offices to the full-service offices to reduce
waiting Unes. GPAC proposed closing 64 offices, eliminating 76 posi-
tions and saving $2.3 milhon/year.
FUNDING OF VISITOR CENTERS
In FY 1993-94, 5 Visitor Centers located in Camden, Brunswick,
Macon, Watauga, and Caswell Counties received an appropriation from
the Special Registration Plate Account. Since FY 1989-90. the General
Assembly has authorized the use of this account for visitor centers.
Funds are taken from the account before the proceeds, net DMV ex-
penses, are distributed by statute as follows: Commerce (33%), DOT
(50%), and DHR (17%). Funding for visitor centers has reduced alloca-
tions to the three agencies previously mentioned. Funding for the cen-
ters will equal $375,000 in FY 1994-95.
The report is a good historical review of the visitor center funding, but
makes no recommendations on a permanent funding source for the
centers.
122
MANDATED REPORTS (Continued)
CONSOLIDATION OF EQUIPMENT SHOPS
GPAC recommended the closing or consolidation of 14 DOT county
garages that are in proximity to large garages that serve each of the 14
Highway Divisions. DOT reported on February 2, 1994 that 9 of the
Highway Divisions had consolidated division and county garages. The
5 remaining divisions are awaiting repairs or new construction before
consolidating. DOT reports no reduction in personnel due to
consolidation.
TRIANGLE TRANSIT AUTHORITY
The Triangle Transit Authority (TTA) submitted its Annual Report for
FY 1992-93. Achievements for the year include the following:
Increased vanpools from 21 to 29 vans;
Began regional bus service; reached 12 month goal of 1.000
riders per day in 3 months;
o Assumed management of the Wake Coordinated
Transportation Service;
Sponsored Regional Land Use and Transportation Conference;
and,
o Received $937,500 grant for fixed guideway study; completed
Phase I of the study.
Most of TTA's revenue comes from the $5 per registered vehicle levied
in Wake, Durham, and Orange Counties. This fee produced $3.06 mil-
lion in FY 1992-93. The regional bus service is the largest operating
expense of the Authority. The agency audit by Coopers and Lybrand
revealed no problems.
RESTRUCTURING THE DMV ENFORCEMENT SECTION
This report was requested in response to a GPAC issue paper on the
DMV Enforcement Unit. GPAC recommended significant changes in
the unit such as:
1) Phase out DMV process officers by contracting out tasks to
private collection agencies.
123
MANDATED REPORTS (Continued)
2) Civilianize DMV inspector job classes.
3) Transfer Major Crimes Unit to SBI.
4) Transfer Motor Carrier Safety and Weight functions to the
Highway Patrol.
The DMV report does not endorse the GPAC recommendations. DMV
does suggest the following actions:
Require insurance companies to provide a FS-1 (certification of
insurance coverage form) to be filed electronically with DMV
when any new insurance policy is written or reinstated. This
would reduce the number of license revocation orders that are
served by process officers and would thus enable a reduction in
personnel (a subcommittee was formed to review this issue);
Increase the supervisor to officer ratio from 3 to 1 to 6 to 1
over the next 5 years;
o Disband the Major Crime Unit and assign personnel to their
former duty stations (completed);
Reduce the civihan work force by 3 in the headquarters staff
(completed);
Convert job titles to mihtary rank, ranging from enforcement
officers to colonel and issue new uniforms (completed); and,
Develop a career ladder along with a DMV Basic Law
Enforcement School.
NAMING/RENAMING OF HIGHWAY FACILITIES
DOT proposed in October, 1993, and the Board of Transportation
adopted in February, 1994, a new policy for naming roads, bridges,
ferries, and facilities. The new pohcy creates a Special Committee on
Road and Bridge Naming within the Board of Transportation to con-
sider naming nominations. The Board has 90 days to review a nomina-
tion, instead of the old pohcy of 60 days. The Board is to consider
citizen input in its deliberations. The new policv does not change the
evaluation factors for choosing a road name. A broad range of individ-
uals will continue to be eligible to have a facility named for them.
MANDATED REPORTS (Continued)
VEHICLE REGISTRATION SECTION EFFICIENCY IMPROVEMENTS
In an October. 1993 report, DMV identified the foUomng enhancements
that it is revievNing:
Pro\dde large franchise dealers direct access to DMV records
to allow customers to complete a registration transaction at
the dealership level;
o Allow citizens to use Automated Teller Machines (ATMs) to
renew plates;
Allow citizens to renew hcense plates over the telephone with
credit cards;
Allow vehicle manufacturers to transfer vehicle information
electronically to a dealer to reduce paper flow;
o Allow large lending institutions to record liens electronically
with DMV; and,
Promote renewal by mail.
DOT'S USE OF INMATE LABOR
In a report mandated by Senate Bill 27 (1993 Session), the Department
of Transportation (DOT) made the following findings:
o It was 2.8 times more cost effective, in FY 1993. to use minimum
custody inmate labor than it would have been to use the standard
highway maintenance personnel or temporary workers. The cost
sharing with DOC is more than equitable to DOT.
o It was not cost effective, in FY 1993. or an equitable arrangement
with DOC for DOT to use medium custody inmate labor. Tliere is
an appropriation from the Highway Fund of $4.6 million; it would
have cost DOT $2.9 million to do the same work with more prod-
uctive highway personnel.
Using medium custody labor varies the cost effectiveness with the
percentage of the quota days provided by DOC. In FY 1993. 47.5%
of the quota was provided. If DOC had provided 81.7% of their
1993 quota of 185.000 days, the cost would have been equal to that
of usmg temporary labor (assuming inmate labor is 40%
productive).
125
MANDATED REPORTS (Continued)
One conclusion of this report is that DOC should provide 80% or more
of its annual quota of medium custody inmates in order for their annual
contract to be more equitable to DOT. Furthermore, the use of mini-
mum custody inmates is valuable and cost effective to DOT.
CRITERIA FOR NON-BETTERMENT CONTRIBUTIONS
The 1993 General Assembly requested that DOT "study and imple-
ment a program for the payment of non-betterment costs for the reloca-
tion of water and sewer lines within existing State highway right-of-way
required by G.S. 136-27.1." DOT was directed to "develop criteria for
State participation in the relocation of water and sewer lines owned by
units of local government, special districts, and municipal corporations
based on: (1) tlie abihty to pay; (2) the per capita income of the popula-
tion served; and, (3) the supporting tax base".
Current state law exempts municipalities of 5,500 or less population
from paying non-betterment utility relocation costs. As of the 1990
U.S. Census, 441 municipalities had a population of 5.500 or less, and
79 had a population greater than 5.500. Since 1984, the State has
expended about $8.2 million for non-betterment utiUty relocation for
municipalities and other utiUty owners exempted from such costs by
G.S. 136-27.1.
DOT tested the following five measures of abihty to pay in this study:
(1) per capita income; (2) median household income; (3) percent of per-
sons living in poverty; (4) total revenues received by municipality; and,
(5) total property valuation. DOT's analysis of these five measures
produced the following findings:
— Although per capita income and median household income
seem reasonable measiu-es to use, if either were used as a
criterion, many medium to large municipalities would qualify
as exempt. Examination of these income measures do not re-
flect population size, which is still the State's current measure
of ability to pay.
— Total revenues and property valuations more accurately reflect
the resources available to a municipality. They tend to demon-
strate a strong relationship to population size. It appears that
the State's use of population size as a criterion is a valid sub-
stitute for ability to pay.
— Further study is needed to assess whether the cutoff point of
5,500 population is appropriate.
126
MANDATED REPORTS (Continued)
The exemptions pro\dded in G.S. 136-27.1 for water and sewer
associations, corporations, and districts are not currently
based on population size; further study is needed on the
number of nouseholds served by each system, which could be
translated into populations served.
DOT has not made a final recommendation on this subject.
CONSTRUCTION MANAGEMENT PLAN
Senate Bill 27, Section 149(e)(4), required the submission of a plan by
DOT for meeting the construction needs of the Highway Trust Fund
with a minimum of new construction staff in DOT and mcreasing the
use of outside contract forces. The plan was required as a result of
recommendations outlined by the Government Performance Audit
Committee.
After the passing of the Highway Trust Fund in 1989, the Construction
Branch in DOT developed plans to manage the program including the
utilization of outside construction engineering and inspection personnel,
along with an increase of in-house personnel. No significant changes are
anticipated in the number of positions needed in Raleigh for the
Highway Trust Fund period. Additional field construction personnel
requirements will be met with a combination in-house staff and private
firms.
Construction Surveying : DOT has traditionally used only in-house staff
to manage the construction program; thus, there are limited outside
firms available with experience in performing construction engineering
and inspection of major highway construction. However, over tne past 5
years, contractors and private engineering firms have developed re-
sources to perform the work and DOT has improved the contract provi-
sions. In 1989, DOT wrote a "construction surveying" provision that
requires the contractor to perform surveying necessary for the
construction work.
Contract Administration : A pilot program was initiated in 1990 to
evaluate the feasibility of utilizing private engineering firms to perform
construction contract administration. This program is scheduled for
continued growth over a period of years to allow private firms to develop
better capabiUties.
127
MANDATED REPORTS (Continued)
DOT is committed to the administration of the construction program in
a cost-effective way with the use of in-house personnel and outside
private sources. The field staff has onlv increased about 20%, at a time
when the construction work has doubled.
PRECONSTRUCTION POSITIONS
Senate Bill 27. Section 149 (d) and (e). required DOT to submit a plan
to implement recommendations pertaining to the freeze of preconstruc-
tion positions and to contract out the balance of its preconstruction
work to private engineering firms.
Prior to the enactment of the Highway Trust Fund, DOT contracted
out 20% to 25% of the preconstruction work to private engineering
firms. As a result of the Highway Trust Fund, tne Preconstruction
Unit has increased the use of private firms. Currently, the use of pri-
vate engineering firms has increased to approximately 32% in design,
30% in planning, and 28% in traffic engineering. DOT projects award-
ing over $27 miuion of preconstruction activities to private engineering
firms in 1993-94. This compares with $21 milUon awarded in 1992-93.
DOT will fulfill the requirements of the legislation by continuing to use
existing in-house manpower efficiently, and private engineering firms as
necessary.
STATE GOALS FOR MINORITY BUSINESSES
The State Goals Program for Minority Business (MB) was created with
the passage of the 1989 Highway Trust Fimd legislation and imple-
mented by DOT in July. 1990. In 1990 the statute was modified to add
a Women Business (WB) arrangement. In 1991, upon the recommenda-
tion of the Attorney General's Office, the MBAVB Goals Program was
suspended. This action was taken after DOT was sued by a contractor
who was not awarded a contract when he failed to demonstrate com-
phance with contract provisions related to the goals program.
A consultant was hired by the Highway Oversight Committee in 1992
to conduct a disparity study to determine if there was a legally defend-
able basis for a goals program using State funds. After the findings
were presented in January, 1993, tlie MBAVB Goals Program was
reinstated with sanctions on contractors who do not make a good faith
effort in seeking women and minority subcontractors.
128
MANDATED REPORTS (Continued)
A Task Force was appointed bv the DOT Secretary to review the goals
progi-am and to recommend efforts that could be taken to strengthen
the progi-am. The Task Force is in the process of finalizing the work.
Advocacy, outreach, training, and development will be the main compo-
nents of the revised goals program.
BILLBOARD FEES
Senate Bill 27, Section 151, enacted in 1993. required DOT to report on
the fees currently collected and the amount of fees that would be needed
to fund the administration of the outdoor billboard program. In order to
fully reimburse the administrative and inspection costs incurred by
DOT. new application and annual renewal fees are required to be paid
by the owners of billboards. The Board of Transportation adopts the
maximum fees allowed. These fees are $60 for a new permit application
and $30 for the annual renewal fee.
These fees generated $280,889 in FY 1991-92 and $273,165 in FY
1992-93. Administrative expenses for this period were $410,277 in FY
1991-92 and $353,633 for FY 1992-93. The operating deficit for the
program was $129,388 in FY 1991-92 and $80,468 in FY 1992-93.
For revenues to equal administrative expenses, the fee charged for new
permits and for annual renewals will have to be increased, ft is recom-
mended that the Board of Transportation be granted the statutory
authority to increase the new permit apphcation fee by $24. Statutory
limits would be set higher to allow for subsequent increases to offset
future increases in expenses:
STATUTORY
PROPOSED LIMIT
New Permit Application Fee $84 $120
Renewal $42 $60
PERSONNEL IMPACT OF DIVISION OF MOTOR VEHICLES'
COMPUTER PROJECTS
The Division of Motor Vehicles' present computer pro^amming does
not allow for the interaction of the various systems. This lack ofinter-
facing creates duplication efforts throughout DMV. The Driver License,
Vehicle Registration, Enforcement, and Collision Reports Sections are
each responsible for manually entering information into separate com-
129
MANDATED REPORTS (Continued)
puter systems for each section. The dupHcation of effort will be greatly
eliminated with the new computer system and many positions will be
eliminated.
The report's findings are as follows:
The staff reduction that will result with the new computer
system will eliminate many clerical positions (Grades 54
through 55).
Clerical vacancies in the Vehicle Registration and Driver
License Sections that will be phased out are being filled by
temporary labor.
o The actual personnel reductions will not be immediate since
both the old and new systems will be operating simultaneously
for the next few years (1996).
Full implementation of the computer system will result in the
elimination of 268 positions and a savings of $5.6 million.
DMV Section
Position
Reduction
Driver License Section
61
$1.3 Million
Vehicle Registration
207
268
$4.3 Milhon
TOTAL
$5.6 MILLION
APPENDIX
HIGHWAY FUND REVENUE UPDATE
Through March 31. 1994, actual collections in the Highway Fund were
$29.0 million aliead of estimated collections for the same time period.
Nearly all of this strong revenue ^owth is due to overcollections in motor
fuels taxes and fees of $26.6 million. Fuel tax revenues are driven by two
economic indicators, fuel prices and fuel demand (or consumption). In this
fiscal year, although average national retail prices have shown a continual
decline, state motor fuel demand has sho\\Ti its strongest yearly increase
since FY 1988-89. Continued growth in the economy, declining or steadv
real fuel costs in a low-inflation environment, and flat fuel efficiency gi-owth
in new vehicles are the major factors contributing to this situation.
Total license and fee collections in the Highway Fund did not vary sig-
nificantly from estimates. Actual collections were approximately $200,000
aliead of projected revenues. However, there was significant variation be-
tween actual vs. projected revenues by revenue source. For example, over-
weight penalties and process services fees collected by the DMV
Enforcement Section were $1.4 million below estimate. Truck licenses and
IRP registration fees were $4 million above estimate because annual regis-
tration fees for property-hauling vehicles were increased in 1993 to raise
additional revenue to neutralize a highway use tax reduction from $1,500 to
$1,000 for commercial vehicles.
The following table gives a more detailed breakdown of revenue sources in
the License and Fee category of the Highway Fund.
Staggered Registration
TrucK Licenses
IRP Registration
Title Fees
Driver License Fees
Safety Inspection Fees
Emissions Inspection Fees
Auto Dealers Licenses/Fees
Process Service Fees
Overweight/Size Permits
Motor Carrier Safety Fees
Overweight Penalties
Restoration Fees
Other Miscellaneous Fees
TOTAL
Investment income to the Highway Fund was $2,3 million above projec-
tions. Until February, interest rates were falling through most of the 1993-
94 fiscal year. The overcollections in this revenue source were due to a
cautious approach taken last year in the uncertain interest rate
environment.
132
(In $ Millions)
Projected
Actual
Difference
$85.5
$84.2
-($1.3)
40.5
43.0
2.5
24.2
25.8
1.6
6.8
6.5
-(0.3)
40.6
39.0
-(1.6)
2.8
2.4
-(0.4)
1.4
2.0
0.6
0.1
0.2
-
3.0
2.6
-(0.4)
0.7
1.0
0.3
0.6
0.4
-(0.2)
4.7
3.9
-(0.8)
1.4
1.4
-
2.8
3.0
0.2
$215.2
"5215.4
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134
HIGHWAY TRUST FUND
The attached chart has the status of Highway Trust Fund projects as of
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miles to be constructed are fully funded. On the Urban Loop System, only
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135
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FUTURE STUDY TOPICS
The Legislative Research Commission referred the following studies to the
Oversigiit Committee:
1. All-Terrain Vehicles Licensing and Regulation
(House Bill 1006 — Representative Smith)
2. Comprehensive Transportation Funding
(Senate Bill 165 and Senate Bill 166 — Senator Martin of
Guilford)
3. Public Transportation and Railroads
(House Joint Resolution 1225 — Representative Luebke)
The Committee will discuss these topics in the fall of 1994 and present its
recommendations to the 1995 General Assembly.
Several issues the Committee discussed were held for further debate in the
fall of 1994. Topics such as Corolla Toll Bridge Authority, billboard law
revisions, pubUc/private agreements, and visitor center funding will be con-
sidered after the 1994 Short Session. The Committee has requested new
topics such as the Ferry Division and Bike/Pedestrian programs, be pre-
sented in the fall also.
139
"V"WV"'J'."','V^'7T^
'"'"> • •■••'"■'"' w "w"";^!
u-k.
JOINT LEGISLATIVE
TRANSPORTATION OVERSIGHT
COMMITTEE
REPORT TO THE
1995 GENERAL ASSEMBLY
OF NORTH CAROLINA
"m ' mymiw>m !7m
\;ww-'M"vv>"i>'>'w.';'
A LIMITED NUMBER OF COPIES OF THIS REPORT IS AVAILABLE
FOR DISTRIBUTION THROUGH THE LEGISLATIVE LIBRARY
ROOMS 2126, 2226
STATE LEGISLATIVE BUILDING
RALEIGH, NORTH CAROLINA 27611
TELEPHONE: (919) 733-7778
OR
ROOM 500
LEGISLATIVE OFFICE BUILDING
RALEIGH, NORTH CAROLINA 27603-5925
TELEPHONE: (919) 733-9390
TABLE OF CONTENTS
PAGE
Letter of Transmittal i
Committee Membership ii
Committee Staff iii
Preface iv
Results of 1994 Legislative Proposals 1
Committee Proceedings 18
Committee Recommendations and Legislative Proposals
1. AN ACT CONCERNING THE COLLECTION OF OVERDUE TRUCK
PENALTIES AND ASSESSED TAXES AND THE CONSOLIDATION OF
THE VARIOUS PROVISIONS CONCERNING OVERWEIGHT
VEHICLES 24
2. AN ACT TO MAKE TECHNICAL CHANGES TO THE MOTOR VEHICLE
LAWS AND OTHER LAWS CONCERNING THE DEPARTMENT OF
TRANSPORTATION 30
3. AN ACT TO MAKE PERMANENT THE EXEMPTION FOR REAL
ESTATE ACQUIRED BY THE DEPARTMENT OF TRANSPORTATION
FROM THE REQUIREMENT THAT IT BE APPRAISED BY A
LICENSED OR CERTIFIED APPRAISER WHEN THE ESTIMATED
VALUE OF THE REAL ESTATE IS LESS THAN TEN THOUSAND
DOLLARS 38
4. AN ACT TO EXEMPT THE DEPARTMENT OF TRANSPORTATION
FROM THE REQUIREMENT OF MAKING QUARTERLY REPORTS OF
MILEAGE OF STATE VEHICLES ASSIGNED TO THE DEPARTMENT
AND TO ALLOW ASSIGNMENTS OF VEHICLES TO THE
DEPARTMENT TO BE REVOKED ONLY WHEN THE DEPARTMENT
CONSENTS 39
5. AN ACT TO AUTHORIZE THE DIVISION OF MOTOR VEHICLES TO
ISSUE A TEMPORARY LICENSE PLATE THAT IS VALID FOR UP
TO 60 DAYS 46
6. AN ACT TO INCREASE THE MINIMUM PROPERTY DAMAGE AMOUNT
FOR A REPORTABLE MOTOR VEHICLE ACCIDENT AND TO
RESOLVE INCONSISTENCIES IN THE LAW CONCERNING
ACCIDENT REPORTS 4 9
PAGE
7. AN ACT TO REVISE THE PENALTIES FOR DRIVING A VEHICLE
WITHOUT INSURANCE 60
8. AN ACT TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION
TO SELL SOUVENIRS ON FERRIES AND AT FERRY
FACILITIES 68
9. AN ACT TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION
TO PERFORM DREDGING SERVICES FOR UNITS OF LOCAL
GOVERNMENT 70
10. AN ACT TO MAKE CONFIDENTIAL ALL PHOTOGRAPHIC IMAGES
RECORDED BY THE DIVISION OF MOTOR VEHICLES FOR
DRIVERS LICENSES 72
Subcommittee Reports
1. Inmate Labor 76
2 . Motor Fuel Tax Evasion 84
Summary of Mandated Reports 90
Appendix
Revenue Update on Highway Fund 96
Status Report on Highway Trust Fund Projects 98
January 25, 1995
TO THE MEMBERS OF THE 1995 GENERAL ASSEMBLY
The Joint Legislative Transportation Oversight Committee submits
its annual report to you for your consideration. The report was
prepared by the Committee pursuant to G.S. 120-70 . 51 (a) .
Respectfully submitted
Co-Chairmen
Transportation Oversight Committee
MEMBERSHIP OF THE JOINT LEGISLATIVE
TRANSPORTATION OVERSIGHT COMMITTEE
APPOINTMENTS
PRESIDENT PRO TEMPORE
SPEAKER
Senator Howard Lee
Co-chairman
Post Office Box 25453
Raleigh, N.C. 27611
(919) 481-3865
Senator David Hoyle
Post Office Box 2494
Gastonia, N.C. 28053
(704) 867-0822
Senator Elaine Marshall
Post Office Box 778
Lillington, N.C. 27546
(919) 893-4000
Senator R. L. Martin
126 Nelson Street
Bethel, N.C. 27812
(919) 825-4361
Senator Clark Plexico
Post Office Box 1904
Hendersonville, N.C. 28793
(704) 696-9435
Senator Daniel Simpson
Post Office Drawer 1329
Morganton, N.C. 28655
(704) 437-9744
Senator Paul Smith
Post Office Box 916
Salisbury, N.C. 28145
(704) 633-9463
Senator Jim Speed
Route 6, Box 542
Louisburg, N.C. 27549
(919) 853-2167
Representative John McLaughlin
Co-chairman
Post Office Box 158
Newell, N.C. 28216
(704) 596-0845
Representative Ed Bowen
Route 1, Box 289
Harrells, N.C. 28444
(910) 532-4183
Representative Joanne Bowie
106 Nut Bush Drive, E
Greensboro, N.C. 27410
(910) 294-2587
Representative Robert Grady
Post Office Box 5091
Jacksonville, N.C. 28540
(910) 353-3579
Representative Robert Hunter
Post Office Drawer 1330
Marion, N.C. 28752
(704) 652-2844
Representative Mary McAllister
1207 Murchison Road, Suite B
Fayetteville, N.C. 28301
(910) 488-6118
Representative George Robinson
Post Office Box 1558
Lenoir, N.C. 28645
(704) 728-2902
COMMITTEE STAFF
FISCAL RESEARCH DIVISION
(919-733-4910)
Richard Bostic
Sabra Faires
Ruth Sappie
RESEARCH DIVISION
(919-733-2578)
Giles Perry
CLERK
Elaine Myers
PREFACE
The Joint Legislative Transportation Oversight Committee was estabhshed
in 1989 by Article 12E of Chapter 120 of the General Statutes. The
Committee was formed in conjunction with the creation of the Highway
Trust Fund. The Committee consists of 8 members of the Senate appointed
by the President Pro Tempore of the Senate and 8 members of the House of
Representatives appointed by the Speaker of the House of Representatives.
Members serve two-year terms.
The Committee's oversight powers are broad as quoted from G.S. 120-
70.51(a) below.
Review reports prepared by the Department of Transportation or
any other agency of State government related, in any manner, to
transportation, when those reports are required by law.
Monitor the funds deposited in and expenditures from the North
Carolina Highway Trust Fimd, the Highway Fund, the General
Fund, or any other fund when those expenditures are related, in
any manner, to transportation.
Determine whether funds related, in any manner, to transportation
are being spent in accordance with law.
o Determine whether any revisions are needed in the funding for a
program for which funds in the Trust Fund, the Highway Fund,
the General Fund, or any other fund when those expenditures are
related, in anv manner, to traiisportation may be used, including
revisions needed to meet any statutory timetable or program.
o Report to the General Assembly at the beginning of each regular
session concerning its determinations of needed changes in the
funding or operation of programs related, in any manner, to
transportation.
RESULTS OF
1994
LEGISLATIVE PROPOSALS
Report on Legislation
SUBMITTED BY THE COMMITTEE TO THE 1994 GENERAL ASSEMBLY
IN ITS REPORT DATED MAY 24, 1994, THE COMMITTEE
RECOMMENDED THIRTEEN BILLS TO THE 1994 GENERAL ASSEMBLY. SEVEN
OF THESE BILLS WERE ENACTED, AND THEY ARE SUMMARIZED BELOW.
EMISSIONS INSPECTIONS CHANGES ( HB 1843; CHAPTER 754):
HOUSE BILL 184 3 BRINGS THE STATE VEHICLE EMISSIONS INSPECTION
PROGRAM INTO COMPLIANCE WITH FEDERAL LAW AND MAKES
ADMINISTRATIVE AND TECHNICAL CHANGES TO BOTH THE EMISSIONS
INSPECTION PROGRAM AND THE SAFETY INSPECTION PROGRAM TO ENABLE
THE DIVISION OF MOTOR VEHICLES (DMV) OF THE DEPARTMENT OF
TRANSPORTATION TO ADMINISTER THE PROGRAMS MORE EFFICIENTLY.
MOST OF THE CHANGES BECOME EFFECTIVE OCTOBER 1, 1994; HOWEVER,
THE COMPUTER MATCHING COMPONENT OF THE MOTORIST COMPLIANCE
PROVISIONS BECAME EFFECTIVE UPON RATIFICATION AND THE
REGISTRATION DENIAL COMPONENT OF THESE PROVISIONS BECOMES
EFFECTIVE OCTOBER 1, 1996.
BEFORE THE ENACTMENT OF THIS BILL, NORTH CAROLINA WAS NOT
IN COMPLIANCE WITH 4 C.F.R. PART 51, THE REGULATIONS ADOPTED
BY THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY (EPA) TO
IMPLEMENT THE 1990 AMENDMENTS TO THE FEDERAL CLEAN AIR ACT, AND
HAD NOT BEEN IN COMPLIANCE SINCE JANUARY 1, 1994. IF THE STATE
HAD NOT CHANGED ITS LAW TO COMPLY WITH THESE REGULATIONS AND
SUBMITTED TO EPA A STATE IMPLEMENTATION PLAN CONCERNING THE
EMISSIONS PROGRAM, THE STATE COULD HAVE BEEN SANCTIONED FOR ITS
FAILURE TO COMPLY.
THERE ARE TWO SANCTIONS FOR FAILURE TO COMPLY WITH 40
C.F.R. PART 51. THEY ARE THE WITHHOLDING OF FEDERAL HIGHWAY
FUNDS, EXCEPT SAFETY FUNDS, IN THE EMISSION COUNTIES AND THE
IMPOSITION OF A 2:1 OFFSET REQUIREMENT AS A CONDITION OF THE
ISSUANCE OF A NEW AIR DISCHARGE PERMIT IN THE EMISSION
COUNTIES. THE SANCTION CONCERNING FEDERAL HIGHWAY FUNDS CAN BE
IMPOSED BY EPA ONLY IF THE UNITED STATES DEPARTMENT OF
TRANSPORTATION CONCURS. THE OFFSET SANCTION CAN BE IMPOSED BY
EPA WITHOUT THE CONCURRENCE OF ANY OTHER AGENCY. THE EMISSION
COUNTIES ARE WAKE, DURHAM, ORANGE, GUILFORD, FORSYTH,
MECKLENBURG, GASTON, CABARRUS, AND UNION.
THE CHANGES IN THE LAW ARE OUTLINED BELOW ACCORDING TO THE
TYPE OF CHANGE.
Changes Needed To Comply With Federal Law
(1) Establishment of a dedicated, nonreverting fund to
provide revenue for the emissions inspection program:
The bill amends G.S. 20-183.7 to create the Emissions
Program Account and to shift from the Highway Fund to
this Account the portion of the emissions inspection
sticker fee that currently goes to the Highway Fund.
The portion is $1.80 of the $2.40 fee. For fiscal
year 1993-94, the $1.80 is expected to generate $2.8
million.
(2) Establishment of a mechanism to deny or revoke the
registration of a vehicle that fails to comply with
the emissions inspection requirements: Section 9 of
the bill establishes a temporary computer matching
system to be in effect until October 1, 1996. Section
8 establishes an automatic registration denial system
effective October 1, 1996. The two systems are
included because automatic vehicle registration
denial is the best method but it cannot be
implemented until DMV's vehicle registration computer
system is overhauled, which will not occur until
October 1, 1996. Consequently, until then, a
different system must be used.
(3) Monetary penalties against vehicle owners who do not
comply with the emissions inspection requirements:
Federal law requires mandatory monetary penalties
that constitute a meaningful deterrent. G.S.
20-183. 8A, in Section 1 of the bill, imposes a civil
penalty against vehicle owners in three circumstances
— failure to have a vehicle inspected within 4
months after its sticker expired, tampering with the
emission control devices of a vehicle, or falsely
registering a vehicle to avoid the emissions
inspection requirements. The penalty is $100 if the
vehicle is a pre-1981 vehicle and is $220 if the
vehicle is a 1981 or newer model.
(4) Monetary penalties against emissions license holders
and suspension or revocation of an emissions license:
Federal law requires a penalty schedule that imposes
"swift, sure, effective, and consistent penalties"
for violations of the emissions inspection
procedures. The schedule must categorize and list
the penalties for first, secondary and subsequent
violations, impose mandatory minimum $100 penalties
against an emissions mechanic for serious violations,
and suspend the station's license and the mechanic's
license for serious violations. G.S. 20-183. 8B and
20-183. 8C, in Section 1, establish the penalty
schedule and list violations. The schedule
categorizes violations into three types — serious,
minor, and technical — and establishes penalties for
first, second, third, and subsequent violations of
each type of violation. The penalty for a first or
second serious violation by a mechanic is $100 and
revocation of the license for 6 months. The penalty
for a third or subsequent serious violation by a
mechanic is $250 and revocation of the license for 2
years. The penalties for a station are higher —
$250 and $1000 — but the revocation period is the
same. The penalties for minor and technical
violations are scaled down accordingly.
(5) Increased Licensing Requirements for Mechanics. —
Federal law requires inspector mechanics to be
licensed, to pass an 8-hour emissions course to be
licensed, to renew the license every 2 years, and to
pass a 4-hour refresher course in order to renew.
G.S. 20-183. 4A and 20-183. 4B, in Section 1, codify
the current emissions licensing requirements that
have been implemented through administrative practice
and revise these requirements to meet the
requirements of federal law.
(6) Sticker Expiration Dates. — Federal law requires a
sticker issued for a vehicle whose inspection is
overdue to become effective the day it would have
become effective if the vehicle had been inspected in
a timely way. G.S. 20-183. 4D(d) makes this change.
Changes to Improve The Inspection Programs
(1) Establishing a uniform time period for reinspection
of a vehicle without payment of an inspection fee:
G.S. 20-183.7, as amended by Section 1 of the bill,
sets a 45-day period for both safety and emissions
reinspections without charge. Prior law allowed 90
days for a reinspection without charge when a vehicle
failed a safety inspection and 30 days when it failed
an emissions inspection. The bill changes both to 45
days to make the same time limit apply to both.
Emissions repairs are no less complicated and time
consuming than safety repairs, and the difference in
these time periods added unnecessary complication to
the program.
(2) Elimination of one-way permits in favor of defenses
to violations: Prior law authorized the Division to
issue a one-way permit to drive a vehicle with an
expired inspection sticker to a place to be
inspected. These permits will typically issued for
vehicles whose stickers had expired while the
vehicles were in a state of disrepair and could not
be driven. The bill eliminated the need for permits
in these circumstances by making it a defense to a
citation to drive a vehicle in these circumstances to
be repaired. This eliminates the administrative time
needed to issue the permit and the time spent by the
motorist in trying to obtain a permit.
(3) Administrative Hearing Time Limits: Prior law
required administrative hearings on inspection
violations to be held by the Commissioner within 10
days. This time limit was not met; persons
requesting a hearing were asked to agree to waive the
right to a hearing within the 10-day limit. The
bill, in G.S. 20-183. 8E of Section 1, eliminates the
10-day limit, establishes a 14-day limit for hearings
on revocations or suspensions of an emissions
license, and establishes a 90-day limit for all other
inspection hearings. The 14-day limit is required by
federal law.
(4) Including Leased Federal Installations Within the
Emissions Program: Federal law requires vehicles
operated on federal installations that are within an
emissions county and are owned by the federal
government to be subject to an emissions inspection.
The bill defines a federal installation to include
property leased by the federal government as well as
owned. This simplifies the program for federal
installations and establishes a policy that does not
vary depending on how the federal government chooses
to provide property for its agencies. The method of
providing property is unrelated to the emissions
produced by vehicles and cannot be determined without
investigation. The EPA complex in the Research
Triangle, for example, is leased rather than owned.
(5) Assessing emissions license holders a penalty of $25
for each sticker that is missing: Prior law imposed
no monetary penalties for missing stickers or any
other inspection violations. This penalty is imposed
to address the problem created by stickers that are
"lost" by stations. DMV reported that it is not
uncommon for an officer at DMV to find that a station
has over 100 stickers missing and no plausible
explanation of what happened to them.
Technical Changes
The bill makes numerous technical and clarifying changes.
Most importantly, it clarifies which vehicles are subject to
inspection, what the inspection entails, and who can perform
the inspection. In making the clarifying changes, it codifies
the current administrative practice concerning safety and
emissions inspections and, except for the changes required by
federal law, the requirements for various licenses.
The emissions program is a one-paragraph afterthought in
the current law. This bill integrates the emissions
requirements into the statutes and distinguishes between safety
inspections and emissions inspections.
The bill also makes conforming changes and moves various
provisions from one place to another. Section 2 reneunes the
Article that contains the inspection programs from the "Motor
Vehicle Law of 1947" to "Safety and Emissions Inspection
Progreun" because there is nothing substantive left in the
Article that was enacted in 1947. Section 3 repeals the
remaining vestige of the 1947 act because the purposes stated
in the repealed Part are no longer accompanied by statutes that
implement the stated purposes.
Section 4 repeals G.S. 20-127(e) because it is
incorporated in G.S. 20-183. 3(a) ( 5 ) as amended in Section 1.
Section 5 repeals G.S. 20-128.2 (b) because it is incorporated
in G.S. 20-183. 3(b) as amended in Section 1. Section 6 moves
from G.S. 20-183. 2(a) and 20-183. 8(c) to G.S. 20-384 the
requirement that a motor carrier comply with the federal Motor
Carrier Safety Regulations and the infraction for failure to do
so.
DMV and DOT Technical Changes (SB 1579; Chapter 761): Senate
Bill 1579 makes numerous technical, conforming, and
administrative changes to the statutes concerning the Division
of Motor Vehicles (DMV) and the Department of Transportation.
The technical and conforming changes fix errors made in the
1993 Session, conform various criminal violations with
structured sentencing, delete obsolete or redundant provisions,
or move certain provisions out of the Motor Vehicle Chapter,
Chapter 20, into more appropriate Chapters. The administrative
changes give DMV discretion to stagger any type of vehicle
registration, allow staggering to be done on a quarterly as
well as monthly basis, eliminate the grace period for expired,
staggered International Registration Plan registrations, and
require DMV to put at least 50 copies of the driver license
handbook in the clerk of court's office in each county.
Changes made by each section of the bill are summarized
below. Significant substantive changes are explained in
detail:
Section 1:
Chapter 285 of the 1993 Session Laws changed the alcohol
concentration level required for a conviction of driving while
impaired from 0.10 to 0.08. That Chapter failed to make a
conforming change to G.S. 20-17, which lists the circumstances
under which a driver's license is revoked for regular driving
while impaired or commercial driving while impaired. This
section makes the needed conforming change.
Section 1.1:
Ensures that free copies of the driver license handbook
are available throughout the State.
Sections 2 and 3:
These two sections merge driving while license revoked,
other than permanently, and driving while license permanently
revoked because they are both Class 1 misdemeanors under the
structured sentencing scheme enacted by Chapter 539 of the 1993
Session Laws. The punishment for a person who drives while a
license is permanently revoked will be stiffer than for a
person who drives with a license that is revoked for a period
other than permanently because, to get to the point of having a
permanently revoked license, a person must have at least two
prior convictions of driving with a revoked license. These
prior convictions will move the person into a higher prior
conviction level.
Section 4:
Chapter 539 of the 1993 Session Laws classified
misdemeanor offenses as Class 1, Class 2, or Class 3
misdemeanors so they would fit into the structured sentencing
scheme enacted by Chapter 538 of the 1993 Session Laws. Section
324 of that act changed the "default" punishment for violations
of Article 2, the drivers license article, of Chapter 20 of the
General Statutes from a 6-month, $500 misdemeanor to a Class 2
misdemeanor. The "default" punishment is the punishment that
applies when the law does not specify any other punishment.
The changes left inaccurate provisions in subsection (a)
of this section as well as an incomplete sentence in subsection
(b) that, if corrected, would do nothing more than repeat
subsection (a). This section corrects these problems by
rewriting subsection (a) so that it applies to all offenses in
Article 2 and deletes subsection (b) . Current subsection (a)
is inaccurate because it implies that Article 2 contains only
felonies and Class 2 misdemeanors. The Article includes other
classes of misdemeanors in addition to Class 2.
Section 5:
This section makes three administrative changes and two
technical changes in staggered vehicle registrations. The
administrative changes allow the Division to stagger the
registration of any type of vehicle, allow staggered
registrations to expire at the end of any periodic basis
composed of one or more months, and eliminate the 15-day grace
period for expired International Registration Plan (IRP)
staggered registrations.
The technical changes eliminate subsections (d) and (e);
subsection (d) is inaccurate and is replaced by the new
language in (g), and Section 8 of this bill incorporates
subsection (e) in amended G.S. 20-95. Registration plates, as
opposed to renewal stickers, are all calendar-year plates and
are not staggered.
Current law restricts staggered registration to the
following vehicles: motorcycles, private passenger vehicles,
U-drive-it passenger vehicles, property-hauling vehicles
licensed for 4,000 pounds gross weight, vehicles registered
under the International Registration Plan (IRP), and trailers.
The Division currently renews the registration of all of these
types of vehicles by sticker except those registered under the
IRP and is planning to implement staggered IRP registration in
1995.
The Division's plan for staggered IRP registration
contemplates staggering the registrations on a quarterly as
opposed to a monthly basis because this schedule best
accommodates the IRP vehicle owners. Current law, however,
requires all staggered renewals to be done on a monthly basis
so that an approximately equal number of vehicle registrations
expire at the end of each month. This section removes the
monthly limitation and allows the Division to stagger
registrations for IRP vehicles and any other vehicles on a
periodic basis. The Division is best able to determine the
period that will spread the work out evenly.
The section also eliminates the 15-day grace period for
expired, staggered IRP registrations. Under current law, it is
lawful to drive a vehicle registered under the staggered system
for 15 days after the registration renewal sticker expires.
This change is made at the request of DMV.
Sections 6-34:
Make technical, clarifying and conforming changes to
various sections of Chapter 20, the motor vehicles statutes.
Section 34.1:
This section makes a vehicle driven by a person who is
convicted of habitual impaired driving subject to forfeiture in
accordance with the procedure that applies to forfeiture of a
vehicle driven by a person who is convicted of driving without
a license and driving while impaired.
Section 35:
This section provides the effective dates for each section
of the bill. Sections 1-4, 17, 20, 23, 26, and 34.1 become
effective October 1, 1994; Sections 29-31 become effective
February 1, 1995; the remaining sections became effective July
16, 1994.
Liability Insurance Proof Change (HB 1551; Chapter 595): House
Bill 1551 eliminates the current requirement of North Carolina
law that persons who are renewing their drivers license and
must take the written test (due to conviction for a traffic
violation within the proceeding four year period) show proof of
liability insurance. The form showing proof of insurance is
commonly referred to as the "DL-123." House Bill 1551 is
expected to eliminate the need for 230,000 persons who are
renewing their license each year, and must show proof of
insurance due to a conviction for a traffic violation in the
previous four years, to obtain and present the DL-123 form to
the Division of Motor Vehicles. The current requirements for
proof of insurance upon initial issuance of a license, upon
restoration of a license, or upon granting of a limited driving
privilege are unaffected by this bill. House Bill 1551 becomes
effective October 1, 1994.
Billboard Compensation Extended (SB 1425; Chapter 725): Senate
Bill 1425 extends the requirement that just compensation be
paid for removal by local authorities of billboards on
Interstate and Federal-aid primary highways, as required by
Federal law
In 1978, Congress amended the Federal Highway
Beautif ication Act to require just compensation for removal by
local governments of billboards lawfully erected under State
law adjacent to an Interstate or Federal-aid primary highway
(23 U.S.C. 131(g) ).
To comply with this Federal directive, and avoid a
potential loss of 10% of the State's Federal highway funds, in
1982 the General Assembly enacted G.S. 136-131.1. This section
prohibits local governments from removing billboards lawfully
erected under State law and adjacent to an Interstate and
Federal-aid primary highway without the payment of just
compensation.
G.S. 136-131.1 was originally given a sunset date of June
30, 1984, apparently in case the Federal law was subsequently
repealed. The Federal law remained in effect, and G.S.
136-131.1 was, as a result, extended to June 30, 1988, and then
to June 30, 1990, and finally to June 30, 1994.
Senate Bill 1425 extends the sunset date of G.S. 136-131.1
to June 30, 1998.
Uniform License & Registration Information (SB 1566; Chapter
750): Senate Bill 1566 makes several changes to the drivers
license and special identification card laws. Most
importantly, it enables the Division of Motor Vehicles (DMV) of
the Department of Transportation to use the social security
number of an individual as the identifying number for that
individual in the drivers license records, the vehicle
registration records, and the special identification card
records of the Division. It does this by requiring an
individual who applies for a drivers license, the registration
of a vehicle, or a special identification card to include the
individual's social security number on the application. The
bill authorizes but does not require DMV to use a social
security number as the drivers license number that is printed
on a drivers license.
The bill also allows race to be included on a drivers
license, at the option of the licensee; makes anyone who is a
resident of this State eligible for a special identification
card, and delete the requirement that a test for an H
(hazardous material) or X (tank) endorsement be written. Under
current law, a person must be at least 11 years old and not
have a drivers license in order to obtain a special
identification card. The change concerning the test became
effective July 15, 1994. The remaining changes become
effective January 1, 1995.
DMV is in the process of establishing a new computer
system for its drivers license, special ID, and vehicle
registration records. Use of a unique social security number
will enable DMV to cross-check information in these data bases.
Currently, the drivers license and vehicle registration data
bases do not use common identifiers and, consequently, cannot
be used to cross-check information.
Under current law, an applicant for a regular drivers
license, a special ID card, or a vehicle registration is not
required to provide a social security number. An applicant for
a commercial drivers license is required to provide a social
security number. Approximately 33 states use social security
numbers for identification in drivers license records.
The bill requires an application for a drivers license, a
special ID card, or a vehicle registration to contain the
disclosures concerning social security numbers that are
required by federal law. Section 7 of the federal Privacy Act
of 1974 (Pub. L. 93-579) requires a state that requests an
individual to disclose his or her social security account
number to inform the individual whether the disclosure is
mandatory or voluntary, the statutory or other authority by
which the number is requested, and the use that will be made of
the number. That section also prohibits a state from denying a
benefit to an individual based on the individual's failure to
provide a social security number when requested to do so unless
the request is required by "Federal statute" or is one of the
pre-1975 grandfathered disclosures. The federal statutes, at
42 U.S.C. 405(c) (2) (C) (i), declare that it is the policy of the
10
United States to allow a state to use social security numbers
in the administration of any "tax, general public assistance,
driver's license, or motor vehicle registration law ... for the
purpose of establishing the identification of individuals
affected by such law."
Thus, federal law authorizes a state to deny a drivers
license or vehicle registration to an individual based on the
individual's failure to provide a social security number. An
application for a license or vehicle registration, however,
must contain a statement that the disclosure is mandatory, cite
the appropriate statute, and state that the number will be used
as the identifying number of the individual for drivers license
or vehicle registration purposes, as appropriate. The federal
law does not specifically refer to special identification
cards. North Carolina considers these cards as part of its
drivers license records, however, because a special ID card is
an alternate to a drivers license as a form of official
identification. Thus, the sarnie exceptions that apply to
drivers licenses also apply to special ID cards.
In adding the requirement of providing a social security
number when applying for a drivers license, a special ID card,
or a vehicle registration, the bill makes numerous technical
changes. These changes are the reason why the bill is lengthy.
The changes consolidate the application requirements for a
license into one place in G.S. 20-7, delete duplicative
application requirements from the special ID statute and the
commercial drivers license statute, and consolidate the
requirements for the kinds of information a drivers license
must contain. The requirement that a person carry his or her
drivers license when operating a vehicle is moved from G.S.
20-7(n) to G.S. 20-7(a). The requirement that an endorsement
or restriction be noted on the face of a drivers license is
moved from G.S. 20-7(c) and (e), respectively, to G.S. 20-7(n).
The bill makes no changes in the information required to obtain
a drivers license, a special ID card, or a vehicle registration
other than the requirement of providing a social security
number.
Single State Insurance Registration (HB 1619; Chapter 621):
House Bill 1619 conforms the State law concerning the
registration of certain interstate for-hire motor carriers to
the requirements of federal law, clarifies the registration
requirements that apply to intrastate for-hire motor carriers,
and makes technical changes to the motor carrier registration
laws. The changes became effective upon ratification, July 1,
1994.
11
The Intermodal Surface Transportation Act of 1991 amended
4 9 U.S.C. § 11506 by directing the federal Interstate Commerce
Commission (ICC) to adopt regulations requiring states to
implement a single-state registration system for interstate
for-hire motor carriers that are regulated by the ICC. The ICC
accordingly revised 4 9 C.F.R. Part 102 3 to make the mandated
changes. As revised, 49 C.F.R. Part 1023 required states to
eliminate the bingo stamp method of registering ICC-regulated
for-hire interstate motor carriers by December 31, 1993, and
replace it with a single-state registration system that is
similar to other multi-state registration systems such as the
International Registration Plan and the International Fuel Tax
Agreement .
The Division of Motor Vehicles of the Department of
Transportation complied with the new federal law and, effective
with the 1994 calendar year, switched to the single-state
registration system. The North Carolina statutes, however,
have not been changed and therefore conflict with both federal
law and administrative practice. Sections 1 and 4 of this bill
rewrite the appropriate statutes to resolve these conflicts.
Section 1 establishes the single-state registration method
for for-hire motor carriers that are regulated by the ICC and
retains the bingo stamp method for interstate motor carriers
that are not regulated by the ICC. The difference in these two
methods is described below.
Section 4 revises the fee schedule for registration of
interstate for-hire motor carriers to eliminate fees the State
is prohibited by federal law from collecting. Federal law
prohibits a state from collecting a fee from an ICC-regulated
interstate for-hire motor carrier for filing with the state a
copy of the carrier's ICC certificate of authority or an
amendment to that certificate. Accordingly, Section 4
eliminates the current $25 fee on these carriers for filing a
copy of their ICC certificate of authority and the $5 fee for
filing an amendment to the certificate.
Federal law also requires the State to waive collection of
the $1 vehicle registration fee if it had a reciprocal
agreement with another state on November 15, 1991, that
required it to do so. Accordingly, Section 4 lists the states
with which North Carolina had reciprocal agreements as of that
date.
Both the bingo steunp method and the single-state method of
registering interstate motor carriers are means to ensure that
for-hire motor vehicles operated in interstate commerce in
North Carolina are insured. Under the bingo stamp method, the
motor carrier applies to each state in which a vehicle will be
driven for an identification stamp that is specific to the
vehicle. To obtain the steunp, the carrier must prove that the
carrier has insurance on the vehicle and that the insurance
meets the state's requirements for insurance coverage. The
carrier places each stamp on a card that resembles a bingo
card. The card has a blank for a stamp from each state. The
carrier then puts the card with the stamps in the motor vehicle
for which the stamps were issued. The driver of the motor
vehicle must display the card to a law enforcement officer when
requested to do so.
Under the single-state method, the states choose whether
or not to be a participating state and each motor carrier
selects one of the participating states as its registration
state. The state selected must be the carrier's principal
place of business or the state in which it will operate the
largest number of vehicles. North Carolina has chosen to be a
participating state. Therefore, each motor carrier whose
principal place of business is in North Carolina and each motor
carrier whose principal place of business is in a
non-participating state and whose operations are largely in
North Carolina must choose North Carolina as its single
registration state. North Carolina's role as the single
registration state for a motor carrier is to register the
vehicles the carrier will operate in any state during a
calendar year, collect the fees that apply to each state in
which a vehicle will be operated, and issue a receipt to the
carrier showing the total number of vehicles the carrier has
registered for each state.
To obtain a receipt, a carrier must prove that it has a
certificate of authority issued by the ICC. The certificate of
authority is proof that the carrier has adequate insurance; a
state may not demand more coverage than is required to obtain
an ICC certificate of authority. The carrier must put a copy
of the receipt in each of the carrier's vehicles. Like its
bingo stamp predecessor, the receipt must be shown to a law
enforcement officer upon request. Unlike its bingo stamp
predecessor, the receipt is not specific to a vehicle, thereby
enabling a carrier to replace vehicles or swap them without
applying for a new receipt.
13
The switch to a single-state method for ICC-regulated
interstate for-hire motor carriers completely changes the
registration system for these vehicles. The Division of Motor
Vehicles will register vehicles to be operated in any
jurisdiction for motor carriers who select North Carolina as
their registration state and will not register any vehicles to
be operated in the State by motor carriers whose registration
state is a state other than North Carolina. In addition, as
required by federal law, the application period for
registration and the period in which a registration is valid
differs from the bingo stamp method. The application period
for the single-state system is August 1 to November 30, and the
application period for the bingo stamp method is October 1
through January 31. A registration issued under the
single-state system expires on December 31, and a registration
issued under the bingo stamp method expires February 1.
In addition to rewriting the statutes to incorporate the
single-state method, the bill clarifies the registration
requirements of intrastate motor carriers, makes the current
penalty for violations by interstate motor carriers applicable
to intrastate motor carriers as well, and makes technical
changes. The State statutes do not address the registration of
intrastate motor carriers even though the Division of Motor
Vehicles currently requires the carriers to both register their
operations with the State and verify that their vehicles are
insured. Section 2 of the bill codifies the current
administrative practice on this subject.
Section 3 moves the penalty provisions in G.S. 20-382 (d)
that apply to interstate motor carriers to a new statute and
includes intrastate motor carriers within its scope. The
existing penalty was subject to legal challenge on the basis of
both equal protection and the federal commerce clause.
The bill makes numerous technical changes to make the
wording of the statutes consistent, to eliminate confusion, and
to eliminate unnecessary provisions. Section 5 of the bill is
part of the technical changes. It deletes definitions in G.S.
20-386 that either duplicate the definitions in G.S. 20-4.01 or
are not used in the Article. The definitions in G.S.
20-386(6), (11), (17), and (20) are also in G.S. 20-4.01, which
applies to every statute in Chapter 20. The definitions in
G.S. 20-386(3), (10), (12), (18), and (22) are not used in the
Article and are therefore unnecessary.
14
TRAC Lease Clarified (SB 1628; Chapter 756): Senate Bill 1628
amends the Uniform Commercial Code to clarify that a motor
vehicle operating lease that contains a terminal rental
adjustment clause is legally considered to be a lease and not a
sale nor a security interest. A terminal rental adjustment
clause permits an adjustment of rent either upwards or
downwards at the end of the lease based on the difference at
the end of the lease between the expected value of the vehicle
and its actual value. The bill amends the definition of a
lease under G.S. 25-2A-103{ 1 ) ( j ) by including in the definition
a motor vehicle operation agreement that is considered a lease
under Section 7701(h) of the Internal Revenue Code. Senate
Bill 1628 became effective upon ratification, July 15, 1994.
Remove DOT Appraisal Sunset (HB 1552; Chapter 691): Section 1
of Chapter 519 of the 1993 Session Laws exempts, until July 1,
1994, the Department of Transportation from the requirement
that real property acquired by the Department be appraised by a
licensed or certified appraiser, if the estimated value of the
real estate is less than ten thousand dollars. House Bill 1552
extends the expiration date of this exemption from July 1, 1994
to July 1, 1995. House Bill 1552 became effective upon
ratification, July 6, 1994.
15
COMMITTEE
PROCEEDINGS
COMMITTEE PROCEEDINGS
Following the 1994 Regular Session, the Joint Legislative
Transportation Oversight Committee met four times from October
1994 to January 1995. The Committee examined a variety of
topics, which are briefly summarized below.
October 5, 1994
The first meeting of the Committee following the 1994
Regular Session was held on October 5, 1994 in Raleigh. This
meeting was primarily dedicated to an examination of the impact
of highways on wetlands, and the federal and state law and
rules that govern that impact.
The topic of wetlands and highways came to the Committee's
attention following a disagreement between the N.C. Department
of Transportation (NCDOT) and the N.C. Department of
Environment, Health and Natural Resources (DEHNR) over proposed
state wetlands rules. The proposed rules were scheduled to be
reviewed in a series of public hearings in September, 1994. The
hearings were cancelled, and the rule-making put on hold after
NCDOT objected to the estimated fiscal impact of the rule on
NCDOT construction and maintenance projects.
In order to understand the issues affecting the
NCDOT-DEHNR disagreement, the Committee scheduled a
comprehensive examination of the issue at its October meeting.
The Committee first heard a description of wetlands and a
summary of federal wetlands regulation from Wayne Wright, Chief
of the Regulatory Branch, U.S. Army Corps of Engineers,
Wilmington District. He explained that §404 of the Federal
Clean Water Act gives the Corps responsibility for issuing
permits for activities that involve the discharge of dredge and
fill materials in the waters of the U.S., which include
adjacent wetlands. When NCDOT proposes to construct a highway
project that will affect such a wetland, they must receive a
federal §4 04 permit.
The Committee next heard from Ron Ferrell of the Division
of Emergency Management (DEM), DEHNR. He explained that the
State is involved in wetlands regulation under §401 of the
Clean Water Act, which requires that activities that involve
dredge and fill not cause a violation of State water quality
standards. To fulfill the requirements of §401, DEM issues
§401 certification on highway projects requiring a §404 permit.
Next, the Committee heard from Dan Bessie of the
Environment Management Commission, who explained the rule
proposed by the Commission which was the source of the
disagreement between DEM and NCDOT. The proposed rule would
change the State §401 certification process by establishing
classification of State wetlands, and by more clearly defining
the State's §401 water quality certification process.
Following Mr. Bessie, State Highway Administrator Larry
Goode explained that, in NCDOT' s view, the proposed rule was
unnecessary and would increase costs and delay in highway
construction and maintenance projects. Mr. Goode also briefly
reviewed NCDOT 's efforts to mitigate the effects of its
projects on wetlands.
At the end of the wetlands discussion, Cochairman
McLaughlin suggested the Governor might want to help the
Departments resolve their dispute over the proposed rule and
its fiscal impact. Soon after the meeting, each Department
agreed to a new estimate on the fiscal impact of the proposed
rule, and the normal rulemaking procedure continued.
Following the wetlands presentation, the Committee heard a
update on DMV's Exhaust Emissions Program from Major John
Robinson of the Division.
November 2, 1994
The Committee's second fall meeting was held on November
2, 1994 in Raleigh. The Committee first heard a presentation
on federal enhancement funding. Dale McKeel of Scenic N.C.
made suggestions for changing how enhancement funds are
allocated and managed, and Larry Goode, State Highway
Administrator, answered additional questions about the use of
these funds. Next, Wayne Stallings of NCDOT commented on NCDOT
fund reserves. C.A. Gardner of NCDOT presented a report on
plastic pipe and adjustable manhole covers. Following these
reports, the Committee turned to the issue of fuel tax evasion,
and heard reports from Fred Aikens of NCDOT and Jack Harper of
the Department of Revenue. No action was taken on these
reports. The Committee then discussed the work of its own fuel
tax evasion subcommittee, and the report of the subcommittee
was adopted, (see more detailed discussion on page *). Next,
Curtis Yates of NCDOT gave a report on the NCDOT Bicycle
progrcim. He was followed by Richard Bostic, who presented
19
funding options for the bicycle and pedestrian program.
Following this report. Representative Hunter gave an update on
the inmate labor subcommittee, and Duane Smith of DMV presented
an update on DMV's computer system. Larry Goode, State Highway
Administrator, then gave an update on the resolution of the
NCDOT/DEM wetlands fiscal note dispute, and on the congestion
avoidance and reduction (CARAT) project. The final report of
the meeting was an update on the NCDOT minority business
enterprise program, given by C.A. Gardner of NCDOT.
December 7, 1994
The third fall meeting of the Committee was held on
December 7, 1994 in Raleigh. The Committee first heard a
report on a draft bill being considered by the Revenue Laws
Study Committee to move the point of taxation on motor fuels to
the rack. Next, Fred Aikens of NCDOT reported on alternatives
for collection of fuel tax on diesel, and gave an update on the
fuel tax evasion program, with additional comments by Jack
Harper of the Dept. of Revenue. The Committee next considered
three DMV legislative proposals: (1) civil penalty in lieu of
registration plate revocation; (2) authorization of DMV to
issue temporary plates for up to 60 days; and (3) a change to
the minimum property dcimage required for reporting a collision.
The Committee asked for draft legislation on these topics to be
prepared for the January meeting. Following this discussion,
the Committee heard a report from DMV on revenues associated
with the minimum use tax.
January 11, 1995
At it final meeting before the convening of the 1995
General Assembly, the Committee discussed and approved the
proposed legislation included later in this report. The
Committee declined to take any action on a proposed bill to
transfer the State Ports Authority to DOT. Following
discussion of proposed legislation, the Committee heard a
report from the Inmate Labor Subcommittee, discussed digitized
drivers license photographs, and recieved and discussed reports
on: DOT mowing contracts, the Adopt-a-Highway program, and
DMV's emission inspection program.
The Committee also reviwed a draft of this Committee
report, and voted to approve its transmittal to the members of
the 1995 General Assembly.
20
RECOMMENDATIONS
&
LEGISLATIVE PROPOSALS
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
Proposal 1 (95-LJZ-12(1.2) )
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Overdue Truck Penalties & Taxes. (Public)
Sponsors: Transportation Oversight Committee.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT CONCERNING THE COLLECTION OF OVERDUE TRUCK PENALTIES AND
3 ASSESSED TAXES AND THE CONSOLIDATION OF THE VARIOUS PROVISIONS
4 CONCERNING OVERWEIGHT VEHICLES.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 20-88 is amended by adding a new
7 subsection to read:
8 " (k) A person may not drive a vehicle on a highway if the
9 vehicle's gross weight exceeds its declared gross weight. A
10 vehicle driven in violation of this subsection is subject to the
11 axle-group weight penalties set in G.S. 20-118(e). The penalties
12 apply to the amount by which the vehicle's gross weight exceeds
13 its declared weight. "
14 Sec. 2. G.S. 20-96 reads as rewritten:
15 "S 20-96. Ov e rloading . Collection of overdue penalties and
16 taxes.
17 i^ — jrC — the — int e nt — &i — this — se ction that e v e ry own e r of — a motor
18 v e hicl e — s hall — procur e — lic e n se — in — advanc e — 1« — cov e r — the — e mpty
19 w e i g ht and maximum load which may b e carri e d . Any own e r failing
20 to do so, — and whos e v e hicl e s hall b e found in op e ration on th e
2 highway ov e r th e w e ight for which s uch v e hicl e is lic e n se d, — s hall
22 pay th e p e nalti es pr e scrib e d in G . S . — 20^118( e ) (3) . Nonr es id e nt s
23 op e rating und e r th e provi s ion s of G . S . — 20'83 s hall b e subj e ct to
24 th e additional tax provid e d in this — s e ction wh e n th e ir v e hicl e s
95-LJZ-12 Page 24
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 ar e op e rat e d — in e xc ess — oi — tbe — lic e n se d w e ight or, — r e gardl e ee — e#
2 th e licenc e d w e ight, — in e xc e ee of th e maximum w e ight provid e d for
3 in G . S . — 20-118 . Any r es id e nt or nonr e sid e nt own e r of a v e hicl e
4 that — i€ — found — in op e ration on a highway d es ignat e d by th e Board
5 &i — Tran s portation — as — a — light — traffic — highway, — afid — along — which
6 s ign s ar e po s t e d s howing th e maximum l e gal w e ight on s aid highway
7 with — a — load — i« — e xc ess — of — the — w e ight — po s t e d — f«t — s aid — highway,
8 s hall b e s ubj e ct to th e p e nalti es provid e d in G . S . — 20'-118( e ) ( 1 ) .
9 Any — p e rson — whe — s hall — willfully — violat e — ^he — provieione — &i — thi s
10 se ction — shall b e guilty of — a Class — 2 mi s d e m e anor — in addition to
11 b e ing liabl e for th e additional tax h e r e in pr es crib e d .
12 Afty — p e ac e A law enforcement officer who discovers that a
13 prop e rty-hauling vehicle used for the transportation of property
14 i£ being operated on the highways with an ov e rload a s — d e scrib e d
15 in thi s — s e ction or which — Le — e quipp e d with — improp e r r e gi s tration
16 plat es , of^ — the — own e r — &i — which — i« — liabl e — f^f^ — any — ov e rload
17 p e nalti es — or a ssess m e nt s — applicabl e to th e v e hicl e — and du e — a«4
18 unpaid for mor e than 30 days, — is h e r e by authoriz e d to se iz e said
19 prop e rty-hauling v e hicl e and hold th e s am e until th e ov e rload ha s
20 be^ft — r e mov e d — &f — prop e r — r e gi s tration — plat es — th e r e for — hav e — beeft
21 s e cur e d — and — attach e d — th e r e to — and — ^he — p e nalti es — ow e d — und e r — thi s
22 se ction — and — G . S . — 3 0^118 . 3 — hav e — b ee n — paid . Any p e ac e — offic e r
23 se izing — a — prop e rty ^haul ing — v e hicl e — und e r — thi s — provi s ion, — may,
24 wh e n n e c e ssary, — stor e said v e hicl e and th e own e r th e r e of shall b e
25 r e spon s ibl e for all r e asonabl e storag e charg es th e r e on . — Wh e n any
26 prop e rty-hauling — v e hicl e — i* — se iz e d, — h e ld, — unload e d — or partially
27 unload e d und e r thi s provi s ion, — th e load or any part th e r e of s hall
28 b e car e d for by th e own e r or op e rator of th e v e hicl e without any
29 liability — on — fehe — part — &f — the — offic e r — ©f^ — &i — fehe — Stat e — &t^ — any
30 municipality — b e cau se — &i — damag e — to — »*: — lo ss — &£ — s uch — load — &*= — any
31 part th e r e of , and that the owner of the vehicle is more than 30
32 days delinquent in paying any of the following may detain the
33 vehicle;
34 ( 1 ) A penalty previously assessed under this Chapter
35 against the owner for a violation attributable to
36 the failure of a vehicle to comply with this
37 Chapter.
38 (2 ) A tax or penalty previously assessed against the
39 owner under Article 36B of Chapter 105 of the
40 General Statutes.
41 The officer may detain the vehicle until the delinquent
42 penalties and taxes are paid. When necessary, an officer that
43 detains a vehicle under this section may have the vehicle stored.
44 The owner of a vehicle that is detained or stored under this
Page 25 95-LJZ-12
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 section is responsible for the care of any property being hauled
2 by the vehicle and for any storage charges. The State is not
3 liable for damage to or loss of the property being hauled. "
4 Sec. 3. G.S. 20-118(e)(3) reads as rewritten:
5 "(3) Except as provided in subdivision (4) of this
6 subsection, for a violation of an axle-group weight
7 limit set in subdivision (b)(3) or (b)(4) of this
8 section, the Department of Transportation shall
9 assess a civil penalty against the owner or
10 registrant of the motor vehicle in accordance with
11 the following schedule: for the first 2,000 pounds
12 or any part thereof, two cents (2<?) per pound; for
13 the next 3,000 pounds or any part thereof, four
14 cents (4C) per pound; for each pound in excess of
15 5,000 pounds, ten cents (IOC) per pound. These
16 penalties apply separately to each axle-group
17 weight limit violated. The penalty shall be
18 assessed on each pound of weight in excess of the
19 maximum permitted."
20 Sec. 4. G.S. 20-118.1 reads as rewritten:
21 "S 20-118.1. P e ac e officer may w e igh v e hicl e and r e quir e r e mov aJr
22 &i — e xc ess — ioadf — r e fu s al — to p e rmit w e ighing . Officers may weigh
23 vehicles and require overloads tc be removed.
24 Any p e ac e offic e r having r e a s on to b e li e v e that th e w e ight of a
25 v e hicl e — and — load — i« — unlawful — is — authoriz e d — 1« — w e igh — the — sam e
26 e ith e r — by — m e ans — &£ — North — Carolina — D e partm e nt — ei — Tran s portation
27 portabl e or stationary s cal es , — and may r e quir e that s uch v e hicl e
28 be driv e n fee ^he n e ar e st North Carolina D e partm e nt &i
29 Tran s portation stationary scal es or s tationary s cal es approv e d by
30 th e North Carolina D e partm e nt of Agricultur e — in th e — e v e nt — s uch
31 s cal es ar e within fiv e mil e s . Th e offic e r may th e n r e quir e th e
32 driv e r to unload imm e diat e ly such portion of th e load a s may b e
33 n e c es sary — ^e — d e cr e as e — ^he — gro ss — w e ight — ei — s uch — v e hicl e — ^e — the
34 maximum — th e r e for — s p e cifi e d — in — this — Articl e. A14 — mat e rial — so
35 unload e d — s hall — be — car e d — £of — by — the — own e r — ef — op e rator — &i — s uch
36 v e hicl e — at th e — ri s k of — s uch — own e r or op e rator . Any p e rson who
37 r e fus e s — to p e rmit a v e hicl e b e ing op e rat e d by him to b e w e igh e d
38 as — in thi s — s e ction provid e d or who r e fu ses to driv e s aid v e hicl e
39 upon — &he — s cal es — provid e d — for w e ighing — for th e purpos e — &i — being
40 w e igh e d, — shall b e guilty of a Class — 2 mi s d e m e anor . No v e hicl e
41 mor e — than — two — mil es — from — a — North — Carolina — Department — o4
42 Tran s portation s tationary s cal e s may b e r e quir e d to b e driv e n to
43 s uch s cal es unl es s th e p e ac e offic e r know s or r e asonably su s p e cts
95-LJZ-12 Page 26
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 fetie — v e hicl e — b*€ — driv e n — &g — a« — fe« — avoid — b e ing — w e igh e d — *fe — febe
2 ccal es.
3 A law enforcement officer may stop and weigh a vehicle to
4 determine if the vehicle's weight is in compliance with the
5 vehicle's declared gross weight and the weight limits set in this
6 Part. The officer may require the driver of the vehicle to drive
7 to a scale located within five miles of where the officer stopped
8 the vehicle.
9 If the vehicle's weight exceeds the amount allowable, the
10 officer may detain the vehicle until the overload has been
11 removed. Any property removed from a vehicle because the vehicle
12 was overloaded is the responsibility of the owner or operator of
13 the vehicle. The State is not liable for damage to or loss of
14 the removed property.
15 Failure to permit a vehicle to be weighed or to remove an
16 overload is a misdemeanor of the Class set in G.S. 20-176. An
17 officer must weigh a vehicle with a scale that has been approved
18 by the Department of Agriculture. "
19 Sec. 5. G.S. 20-183.11 is repealed.
20 Sec. 6. This act is effective upon ratification.
Page 27 95-LJZ-12
Explanation of Proposal 1
Overdue Truck Penalties & Taxes
This proposal clarifies the current law concerning the authority of law enforcement
officers to detain a truck until any delinquent penalties or taxes previously assessed
against the truck's owner for motor carrier vehicle violations or motor carrier taxes have
been paid. It also consolidates the various provisions concerning the weighing of trucks
and eliminates inconsistencies in these provisions. The proposal is effective upon
ratification.
Law enforcement officers of the Division of Motor Vehicles (DMV) currently
detain a truck when they find that the owner of the truck has previously been assessed a
penalty for a motor carrier vehicle violation and payment of the penalty is overdue.
Penalties are due upon assessment and become delinquent 30 days after the date of
assessment. Motor carrier vehicle violations include registration, equipment, and
overweight violations.
Similarly, the officers detain a truck when they find that the owner of the truck is
delinquent in paying motor carrier road taxes due imder Article 36B of Chapter 105 of
the General Statutes. When the fuel tax evasion plan of the Department of
Transportation is implemented, the officers will have better information on delinquent
taxpayers and will be able to use this authority to collect the delinquent taxes.
The statutes that give DMV law enforcement officers the authority to detain trucks
is arguably not as broad as the current practice. G.S. 20-96 authorizes the detention of
a truck when the owner "is liable for any overload penalties or assessments applicable
to the vehicle and due and unpaid for more than 30 days." This language can be
construed to mean that overdue overweight penalties are the only penalties or
assessments for which a vehicle can be detained and then only if the overdue
overweight penalty was previously assessed against the same truck rather than any truck
of the owner. This proposal rewrites this language to make it clear that the authority
applies to all truck violations and to motor carrier taxes. The fuel tax evasion plan of
the Department of Transportation will not be effective if DMV's authority to detain
trucks does not include the authority to detain for delinquent motor carrier taxes.
Section 1 adds to G.S. 20-88 a provision that is currently in G.S. 20-96 and is
deleted from that statute as it is rewritten by Section 2 of the proposal. The provision
transferred from G.S. 20-96 to 20-88 is the prohibition on driving in excess of declared
weight.
Page 28
Section 2 rewrites G.S. 20-96 to make the clarifications described above. In doing
so, it removes parts of that statute that are more appropriately placed in other statutes
and resolves inconsistencies in the statute. It removes the prohibition on driving in
excess of declared weight, which is incorporated in G.S. 20-88. It also removes the
statement of the penalties that apply to overweights on light-traffic roads, which is
incorporated in G.S. 20-118(e)(3), as rewritten by Section 3 of this proposal. Finally,
it removes provisions on weighing trucks because these provisions are incorporated in
G.S. 20-118.1, as rewritten by Section 4 of the proposal.
Current G.S. 20-96 has several inconsistencies. First, it states that overweights are
subject only to axle-group p>enalties, and not single-axle or tandem-axle. This conflicts
with G.S. 20-118. Second, it states that overweights on light-traffic roads are subject
only to single-axle or tandem-axle penalties, and not axle-group. This also conflicts
with G.S. 20-118. Third, it refers to a tax imposed by the section, but that section
does not impose a tax. The "tax" reference is to a tax that was repealed many years
ago.
Section 3 incorporates the penalty amounts for overweight violations on light-
traffic roads into G.S. 20-118, the statute that deals with overweights.
Section 4 rewrites 20-118.1 to consolidate in that statute the various provisions on
weighing trucks that are now found in that statute and in G.S. 20-96 and G.S. 20-
183.11.
Section 5 repeals G.S. 20-183.11 because its provisions have been incorporated
into G.S. 20-118.1, as rewritten by Section 4 of the bill.
Section 6 makes the proposal effective upon ratification.
Page 29
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
Proposal 2 ( 95-LJZ-ll( 1.3 ) )
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: DMV/DOT Technical Changes. (Public)
Sponsors: Transportation Oversight Committee.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE TECHNICAL CHANGES TO THE MOTOR VEHICLE LAWS AND
3 OTHER LAWS CONCERNING THE DEPARTMENT OF TRANSPORTATION.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-16. 2(a) reads as rewritten:
6 "(a) Basis for Charging Officer to Require Chemical Analysis;
7 Notification of Rights. — Any person who drives a vehicle on a
8 highway or public vehicular area thereby gives consent to a
9 chemical analysis if charged with an implied-consent offense.
10 The charging officer must designate the type of chemical analysis
11 to be administered, and it may be administered when the officer
12 has reasonable grounds to believe that the person charged has
13 committed the implied-consent offense.
14 Except as provided in this subsection or subsection (b), before
15 any type of chemical analysis is administered the person charged
16 must be taken before a chemical analyst authorized to administer
17 a test of a person's breath, who must inform the person orally
18 and also give the person a notice in writing that:
He has a right to refuse to be tested.
Refusal to take any required test or tests will
result in an immediate revocation of his driving
privilege for at least 10 days and an additional
12-month revocation by the Division of Motor
Vehicles.
95-LJZ-ll Page 30
19
(1)
20
(2)
21
22
23
24
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION
1995
1 (3) The test results, or the fact of his refusal, will
2 be admissible in evidence at trial on the offense
3 charged.
4 (4) His driving privilege will be revoked immediately
5 for at least 10 days if:
6 a. The test reveals an alcohol concentration of
7 ~ 0.08 or more; or
8 b. He was driving a commercial motor vehicle and
9 the test reveals an alcohol concentration of
10 0.04 or more.
11 (5) He may have a qualified person of his own choosing
12 administer a chemical test or tests in addition to
13 any test administered at the direction of the
14 charging officer.
15 (6) He has the right to call an attorney and select a
16 witness to view for him the testing procedures, but
17 the testing may not be delayed for these purposes
18 longer than 30 minutes from the time he is notified
19 of his rights.
20 If the charging officer or an arresting officer is authorized to
21 administer a chemical analysis of a person's br e ath — »«d — feti»
22 charging of f ic e r ' d e eignat ee — a ch e mical analysis of th e blood of
23 th e p e rson charg e d, breath, the charging officer or the arresting
24 officer may give the person charged the oral and written notice
2 5 of rights required by this subsection. This authority applies
26 regardless of the type of chemical analysis designated. "
27 Sec. 2. G.S. 20-79. 7(b) reads as rewritten:
28 "(b) Distribution of Fees. — The Special Registration Plate
29 Account and the Collegiate and Cultural Attraction Plate Account
30 are established within the Highway Fund. The Division must
31 credit the additional fee imposed for the special registration
32 plates listed in subsection (a) among the Special Registration
33 Plate Account (SRPA), the Collegiate and Cultural Attraction
34 Plate Account (CCAPA), and the R e cr e ation and Natural Heritage
35 Trust Fund (RNHTF) , (NHTF) , which is established under G.S. 113-
36 77.7, as follows:
37 Special Plate SRPA
38 Historical Attraction $10
39 In-State Collegiate Insignia $10
40 Out-of-state Collegiate Insignia $10
41 Personalized $10
42 Special Olympics $10
4 3 State Attraction $10
44 Wildlife Resources $10
Page 31 95-LJZ-ll
CCAPA
$20
$15
RNHTF NHTF
$15
$15
$20
$10
$10
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION
1995
1 All other Special Plates $10 0."
2 Sec. 3. G.S. 20-82 is repealed.
3 Sec. 4. G.S. 20-297 reads as rewritten:
4 "S 20-297. In s p e ction of — r e cord s t — e tc . Retention and inspection
5 of certain records.
6 (a) Vehicles. — A dealer must keep a record of all vehicles
7 received by the dealer and all vehicles sold by the dealer. The
8 records must contain the information the Division requires.
9 (b) Inspection. — The Division may inspect the pertinent
10 books, records, l e tt e r s letters, and contracts of a licensee
11 relating to any written complaint made to him again s t s uch the
12 Division against the licensee."
13 Sec. 5. G.S. 20-88(f) is repealed.
14 Sec. 6. G.S. 20-135. 2B(b) reads as rewritten:
15 "(b) Subsection (a) of this section shall not apply wh e n ; does
16 not apply in any of the following circumstances:
An adult is present in the bed or cargo area of the
vehicle and is supervising the child; child.
The child is secured or restrained by a seat belt
manufactured in compliance with Federal Motor
Vehicle Safety Standard No. 208, installed to
support a load strength of not less than 5,000
pounds for each belt, and of a type approved by the
Commi ss ion e r; Commissioner.
An emergency situation e xists; exists.
The vehicle is being operated in a parade pursuant
to a valid permit.
The vehicle is being operated in an agricultural
e nt e rpris e ; or enterprise.
the The vehicle is being operated in a county which
that has no incorporated area with a population in
excess of 3,500."
7. G.S. 20-141.3(3) reads as rewritten:
It shall be unlawful for any person to operate a motor
35 vehicle on a street or highway willfully in prearranged speed
36 competition with another motor vehicle. Any person violating the
37 provisions of this subsection shall be guilty of a Class 2 1,
38 misdemeanor."
39 Sec. 8. G.S. 20-141. 3(b) reads as rewritten:
40 "(b) It shall be unlawful for any person to operate a motor
41 vehicle on a street or highway willfully in speed competition
42 with another motor vehicle. Any person willfully violating the
43 provisions of this subsection shall be guilty of a Class 4 2_
44 misdemeanor."
95-LJZ-ll Page 32
17
(1)
18
19
(2)
20
21
22
23
24
25
(3)
26
(4)
27
28
(5)
29
30
(6)
31
32
33
Sec
34 "(
a) It :
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION
1995
1 Sec. 9. G.S. 20-183. 2(b) (5) reads as rewritten:
2 "(b) Emissions. — A motor vehicle is subject to an emissions
3 inspection in accordance with this Part if it meets all of the
4 following requirements:
5 (1) It is subject to registration with the Division
6 under Article 3 of this Chapter.
7 (2) It is not a trailer whose gross weight is less than
8 4,000 pounds, a house trailer, or a motorcycle.
9 (3) It is a 1975 or later model.
10 (4) It is powered or designed so that it could be
11 powered by gasoline.
12 (5) It meets any of the following descriptions:
13 a. It is required to be registered in an
14 emissions county.
15 b. It is part of a fleet that is operated
16 primarily in an emissions county.
17 c. It is offered for rent in an emissions county.
18 d. It is offered for sale by a dealer in an
19 emissions county , county and is not a new
20 vehicle that has not been titled.
21 e. It is operated on a federal installation
22 located in an emissions county and it is not a
23 tactical military vehicle. Vehicles operated
24 on a federal installation include those that
25 are owned or leased by employees of the
26 installation and are used to commute to the
27 installation and those owned or operated by
28 the federal agency that conducts business at
29 the installation.
30 f. It is otherwise required by 4 C.F.R. Part 51
31 to be subject to an emissions inspection."
32 Sec. 10. G.S. 20-183. 8C(c) reads as rewritten:
33 "(c) Type III. — It is a Type III violation for an emissions
34 self-inspector, an emissions inspection station, or an emissions
35 inspection mechanic to do any of the following:
36 (1) Fail to post an emissions license issued by the
37 Division.
38 (2) Fail to send information on emissions inspections
39 to the Division at the time or in the form required
40 by the Division."
41 Sec. 11. G.S. 20-183.11 is repealed.
42 Sec. 12. G.S. 20-183.12 is repealed.
43 Sec. 13. G.S. 20-305(5)b.6. reads as rewritten:
Page 33 95-LJZ-ll
GENERAL ASSEMBLY OF NORTH CAROLINA - J- V SESSION
1995
1 "6. Whether the establishment of an
2 additional new motor vehicle dealer or
3 relocation of an existing new motor
4 vehicle dealer in the relevant market
5 area would increase competition in a
6 manner such as to be in the long-term
7 public interest; and".
8 Sec. 14. G.S 136-66.1(4) reads as rewritten:
9 "(4) If the governing body of any municipality shall
10 d e t e rmin e determines that it is in the best
11 interest of its citizens to do so, it may expend
12 its funds for the purpose of making any of the
13 following improvements on streets that are within
14 its corporate limits which and form a part of the
15 -, State highway system:
16 a. Construction of curbing and guttering;
17 guttering.
18 b. Adding of lanes for automobile parking;
19 parking.
20 c. Constructing street drainage facilities which
21 may by reasonable engineering estimates be
22 attributable to that amount of surface water
23 collected upon and flowing from municipal
24 streets which do not form a part of the State
25 highway syetom; system.
26 d. Constructing sidewalks.
27 e. Intersection improvements, if the governing
28 body determines that such improvements will
29 decrease traffic congestion, improve safety
30 conditions, and improve air quality.
31 In exercising the authority granted herein,
32 the municipality may, with the consent of the
33 Department of Transportation, perform the work
34 itself, or it may enter into a contract with the
35 Department of Transportation to perform such work.
36 Any work authorized by this subdivision shall be
37 financed entirely by the municipality and be
38 approved by the Department of Transportation.
39 The cost of any work financed by a
40 municipality pursuant to this subdivision may be
41 assessed against the properties abutting the street
42 or highway upon which such work was performed in
43 accordance with the procedures of either Article 10
44 of Chapter 160A of the General Statutes or any
95-LJZ-ll Page 34
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION
1995
1 charter provisions or local acts applicable to the
2 particular municipality."
3 Sec. 15. G.S. 136-92 reads as rewritten:
4 "S 136-92. Obstructing highway drains mi cdomeanor prohibited.
5 Afty — p e r s on — v4io — s hall — ob s truct — »fty — drains It is unlawful to
6 obstruct a drain along or leading from any public road in the
7 Stat e s hall b e guilty of a Claee 3 misd e m e anor, and puni s h e d only
8 by a fin e of not l e s s than t e n ( $ 10 . 00) nor mor e than on e hundr e d
9 dollars — ( $ 100 . 00 ) . State. A person who violates this section is
10 responsible for an infraction. "
11 Sec. 16. Sections 7, 8, and 15 of this act become
12 effective July 1, 1995, and apply to offenses occurring on or
13 after that date. The remainder of this act is effective upon
14 ratification.
Page 35 95-LJZ-ll
Explanation of Proposal 2
DMV/DOT Technical Changes
This proposal makes a number of unrelated technical changes to Chapters 20 and 136
of the General Statutes. Each technical change is described below by section:
Section Explanation
1 Clarifies that the officer who gives a breathalyzer test to
a person can read the person his or her rights. Section
233.1 of Chapter 689 of tiie 1991 Session Laws
amended G.S. 20-139. l(bl) to allow the arresting or
charging officer to give a breathalyzer. This section
makes a conforming change to a related statute.
2 Corrects a cross-reference to the Natural Heritage Trust
Fund. Chapter 772 of the 1993 Session Laws (1994
Reg. Sess.) changed the name of the Recreation and
Natural Heritage Trust Fund to the Natural Heritage
Trust Fund.
3, 4 Move the requirement that vehicle dealers keep certain
records from the Article on special registration plates to
the Article on vehicle dealers. Currentiy, the provision
is in the wrong place. Before the vehicle dealer Article
was enacted, the provisions on dealers were in Article 3
of Chapter 20. Since the enactment in 1955 of Article
12 of Chapter 20, the dealer provisions have slowly
been moved to Article 12. The provision on dealer
records is the last vestige in Part 5 of Article 3 of the
former arrangement of the dealer laws.
5 Repeals a subsection that describes the application of a
tax that has been repealed. The section is therefore
obsolete. The registration of nonresident property-
hauling vehicles is governed by the International
Registration Plan.
6 Corrects punctuation.
7, 8 Correct an error made in the structured sentencing
legislation (Sections 366 and 367 of Chapter 539 of the
1993 Session Laws). That legislation inadvertenUy
reversed the punishments for prearranged racing and
non-prearranged racing. As reversed, the punishment
for prearranged racing is less than the punishment for
non-prearranged racing.
Page 36
9 Clarifies that new vehicles that have never been titled
are not subject to the emissions inspection requirement.
This change reflects the current practice, which is to
subject these vehicles to a safety but not an emissions
inspection. An opinion by the Attorney General's
office supports this practice.
10 Inserts the missing word "do" in an emissions penalty
statute.
11, 12 These sections repeal two statutes that are unnecessary.
G.S. 20-118.11 duplicates both G.S. 20-96 and 20-
118.1. G.S. 20-183.12 applied only to 1953
appropriation and is therefore obsolete.
13 Inserts the missing word "vehicle."
14 Corrects punctiaation.
15 Conforms punishment to structured sentencing. Under
G.S. 14-3.1, if a violation is punishable only by a
penalty not to exceed $100, the violation is an
infraction rather than a misdemeanor.
Page 37
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
Proposal 3 (95-RWZ-OOl)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Dot Appraisal License. (Public;
Sponsors: Transportation Oversight Conmiittee.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE PERMANENT THE EXEMPTION FOR REAL ESTATE ACQUIRED
3 BY THE DEPARTMENT OF TRANSPORTATION FROM THE REQUIREMENT THAT
4 IT BE APPRAISED BY A LICENSED OR CERTIFIED APPRAISER WHEN THE
5 ESTIMATED VALUE OF THE REAL ESTATE IS LESS THAN TEN THOUSAND
6 DOLLARS .
7 The General Assembly of North Carolina enacts:
8 Section 1. Section 2 of Chapter 94 of the 1991 Session
9 Laws, as amended by Section 1 of Chapter 519 of the 1995 Session
10 Laws and by Section 1 of Chapter 691 of the 1995 Session Laws,
11 reads as rewritten:
12 "Sec. 2. This act is effective upon ratification and e xpir e s
13 July 1, 1995 . ratification. "
14 Sec. 2. This act is effective upon ratification.
This proposal amends Section 2 of Chapter 94 of the 1991 Session Laws to remove the July 1, 1995 sunset
from that section. The seaion currently exempts the Department of Transportation from the requirement that real
estate be appraised by a licensed or certified appraiser when the estimated value of the real estate is less than
$10,000.
9 5-RWZ-OOl Page 38
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
Proposal 4 (95-LJZ-10{ 1 .2 ) )
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: DOT Assigned Vehicle Changes. (Public)
Sponsors: Transportation Oversight Committee.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO EXEMPT THE DEPARTMENT OF TRANSPORTATION FROM THE
3 REQUIREMENT OF MAKING QUARTERLY REPORTS OF MILEAGE OF STATE
4 VEHICLES ASSIGNED TO THE DEPARTMENT AND TO ALLOW ASSIGNMENTS OF
5 VEHICLES TO THE DEPARTMENT TO BE REVOKED ONLY WHEN THE
6 DEPARTMENT CONSENTS.
7 The General Assembly of North Carolina enacts:
8 Section 1. G.S. 143-341 (8) i. 7a. reads as rewritten:
9 "7a. To adopt with the approval of the Governor and to
10 enforce rules and to coordinate State policy
11 regarding (i) the permanent assignment of
12 state-owned passenger motor vehicles and (ii) the
13 use of and reimbursement for those vehicles for the
14 limited commuting permitted by this subdivision.
15 For the purpose of this subdivision 7a,
16 "state-owned passenger motor vehicle" includes any
17 state-owned passenger motor vehicle, whether or not
18 owned, maintained or controlled by the Department
19 of Administration, and regardless of the source of
20 the funds used to purchase it. Notwithstanding the
21 provisions of G.S. 20-190 or any other provisions
22 of law, all state-owned passenger motor vehicles
23 are subject to the provisions of this subdivision
24 7a; no permanent assignment shall be made and no
95-LJZ-lO Page 39
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 one shall be exempt from payment of reimbursement
2 for commuting or from the other provisions of this
3 subdivision 7a except as provided by this
4 subdivision 7a. Commuting, as defined and
5 regulated by this subdivision, is limited to those
6 specific cases in which the Secretary has received
7 and accepted written justification, verified by
8 historical data. The Department shall not assign
9 any state-owned motor vehicle that may be used for
10 commuting other than those authorized by the
11 procedure prescribed in this subdivision.
12 A State-owned passenger motor vehicle shall not be
13 permanently assigned to an individual who is likely
14 to drive it on official business at a rate of less
15 than 3,150 miles per quarter unless (i) the
16 individual's duties are routinely related to public
17 safety or (ii) the individual's duties are likely
18 to expose him routinely to life-threatening
19 situations. A State-owned passenger motor vehicle
20 shall also not be permanently assigned to an agency
21 that is likely to drive it on official business at
22 a rate of less than 3,150 miles per quarter unless
23 the agency can justify to the Division of Motor
24 Fleet Management the need for permanent assignment
25 because of the unique use of the vehicle. Each
26 agency, other than the Department of
27 Transportation, that has a vehicle assigned to it
28 or has an employee to whom a vehicle is assigned
29 shall submit a quarterly report to the Division of
30 Motor Fleet Management on the miles driven during
31 the quarter by the assigned vehicle. The
32 , D e partm e nt — of — Admini s tration Division of Motor
33 Fleet Management shall v e rify, on — a — quart e rly
34 baeie, review the report to verify that each motor
35 vehicle has been driven at the minimum allowable
36 rate. If it has not and if the department by whom
37 the individual to which the car is assigned is
38 employed or the agency to which the car is assigned
39 cannot justify the lower mileage for the quart e r in
40 vi e w — ef — the — minimum — annual — rat e , quarter, the
41 permanent assignment shall be revoked immediately.
42 The Department of Transportation shall submit an
43 annual report to the Division of Motor Fleet
44 Management on the miles driven during the year by
Page 40 95-LJZ-lO
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 vehicles assigned to the Department or to employees
2 of the Department. If a vehicle included in this
3 report has not been driven at least 12,600 miles
4 during the year, the Department of Transportation
5 shall review the reasons for the lower mileage and
6 decide whether to terminate the assignment. The
7 Division of Motor Fleet Management may not revoke
8 the assignment of a vehicle to the Department of
9 Transportation or an employee of that Department
10 for failure to meet the minimum mileage requirement
11 unless the Department of Transportation consents to
12 the revocation.
13 Every individual who uses a State-owned passenger
14 motor vehicle, pickup truck, or van to drive
15 between his official work station and his home,
16 shall reimburse the State for these trips at a rate
17 computed by the Department. This rate shall
18 approximate the benefit derived from the use of the
19 vehicle as prescribed by federal law. Reimbursement
20 shall be for 20 days per month regardless of how
21 many days the individual uses the vehicle to
22 commute during the month. Reimbursement shall be
23 made by payroll deduction. Funds derived from
24 reimbursement on vehicles owned by the Motor Fleet
25 Management Division shall be deposited to the
26 credit of the Division; funds derived from
27 reimbursements on vehicles initially purchased with
28 appropriations from the Highway Fund and not owned
29 by the Division shall be deposited in a Special
30 Depository Account in the Department of
31 Transportation, which shall revert to the Highway
32 Fund; funds derived from reimbursement on all other
33 vehicles shall be deposited in a Special Depository
34 Account in the Department of Administration which
35 shall revert to the General Fund. Commuting, for
36 purposes of this paragraph, does not include those
37 individuals whose office is in their home, as
38 determined by the Department of Administration,
39 Division of Motor Fleet Management. Also, this
40 paragraph does not apply to the following vehicles:
41 (i) clearly marked police and fire vehicles, (ii)
42 delivery trucks with seating only for the driver,
43 (iii) flatbed trucks, (iv) cargo carriers with over
44 a 14,000 pound capacity, (v) school and passenger
95-LJZ-lO Page 41
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 buses with over 20 person capacities, (vi)
2 ambulances, (vii) hearses, (viii) bucket trucks,
3 (ix) cranes and derricks, (x) forklifts, (xi)
4 cement mixers, (xii) dump trucks, (xiii) garbage
5 trucks, (xiv) specialized utility repair trucks
6 (except vans and pickup trucks), (xv) tractors,
7 (xvi) unmarked law-enforcement vehicles that are
8 used in undercover work and are operated by
9 full-time, fully sworn law-enforcement officers
10 whose primary duties include carrying a firearm,
11 executing search warrants, and making arrests, and
12 (xvii) any other vehicle exempted under Section
13. ... 274(d) of the Internal Revenue Code of 1954, and
14 Federal Internal Revenue Services regulations based
15 thereon. The Department of Administration, Division
16 J , of Motor Fleet Management, shall report quarterly
17 to the Joint Legislative Commission on Governmental
18 Operations and to the Fiscal Research Division of
19 , the Legislative Services Office on individuals who
20 use State-owned passenger motor vehicles, pickup
21 . trucks, or vans between their official work
22 stations and their homes, who are not required to
23 reimburse the State for these trips.
24 The Department of Administration shall revoke the
25 assignment or require the Department owning the
26 . vehicle to revoke the assignment of a State-owned
27 passenger motor vehicle, pickup truck or van to any
28 individual who:
29 I. Uses the vehicle for other than official
30- business except in accordance with the
31 commuting rules;
32 II. Fails to supply required reports to the
33. Department of Administration, or supplies
34 incomplete reports, or supplies reports
35 in a form unacceptable to the Department
36 of Administration and does not cure the
37 deficiency within 30 days of receiving a
38 request to do so;
39 III. Knowingly and willfully supplies false
40 information to the Department of
41 Administration on applications for
42 permanent assignments, commuting
43 reimbursement forms, or other required
44 reports or forms;
Page 42 95-LJZ-lO
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 IV. Does not personally sign all reports on
2 forms submitted for vehicles permanently
3 assigned to him and does not cure the
4 deficiency within 30 days of receiving a
5 request to do so;
6 V. Abuses the vehicle; or
7 VI. Violates other rules or policy
8 promulgated by the Department of
9 Administration not in conflict with this
10 act.
11 A new requisition shall not be honored
12 until the Secretary of the Department of
13 Administration is assured that the
14 violation for which a vehicle was
15 previously revoked will not recur.
16 The Department of Administration, with the
17 approval of the Governor, may delegate, or
18 conditionally delegate, to the respective heads of
19 agencies which own passenger motor vehicles or to
20 which passenger motor vehicles are permanently
21 assigned by the Department, the duty of enforcing
22 all or part of the rules adopted by the Department
23 of Administration pursuant to this subdivision 7a.
24 The Department of Administration, with the approval
25 of the Governor, may revoke this delegation of
26 authority.
27 Prior to adopting rules under this paragraph, the
28 Secretary of Administration may consult with the
29 Advisory Budget Commission."
30 Sec. 2. This act is effective upon ratification.
95-LJZ-lO Page 43
Explanation of Proposal 4
DOT Assigned Vehicle Changes
This proposal makes two changes concerning State-owned passenger vehicles
assigned to the Department of Transportation (DOT) by the Division of Motor Fleet
Management of the Department of Administration. First, it directs DOT to make annual
rather than quarterly reports to the Division of Motor Fleet Management on the number
of miles driven by vehicles assigned either to DOT or an employee of DOT. Second, it
prohibits the Division of Motor Fleet Management from terminating the assignment of
a vehicle to DOT or an employee of DOT for failure of the vehicle to meet the
minimum mileage requirements unless DOT agrees to the termination. The changes
are effective upon ratification.
The effect of the proposal is to make permanent the temporary exemption from
the assigned vehicle mileage requirements that has been granted to DOT by the
appropriations acts since 1992. Section 38 of Chapter 1044 of the 1991 Session Laws
(1992 Reg. Sess.) exempted State-owned passenger vehicles that were assigned to field
personnel of DOT's Division of Highways from the minimum mileage requirements.
This exemption expired July 1, 1993. Section 70 of Chapter 561 of the 1993 Session
Laws expanded this exemption from the minimum mileage requirements to include all
State-owned passenger vehicles assigned to DOT or an employee of DOT and made the
exemption effective until July 1, 1994. Section 13 of Chapter 591 of the 1993 Session
Laws (1994 Reg. Sess.) extended the expiration of tiie 1993 exemption to July 1, 1995.
Under the proposal, the Division of Motor Fleet Management could not assign a
vehicle to DOT or an employee of DOT unless it was likely that the vehicle would be
driven at °ast 3,150 miles a quarter. Once the assignment was made, DOT would not
have to m^ite quarterly reports of mileage and the Division of Motor Fleet Management
could not revoke the assignment of a vehicle to DOT or an employee of DOT for
failure to meet the minimum mileage requirements unless DOT agreed to the
revocation.
Under G.S. 143-341(8)1., the Division of Motor Fleet Management of the
Department of Adn inistration has the responsibility of assigning State-owned vehicles
to Departments and employees of those departments. That statute provides that a
vehicle cannot be assigned unless it is likely that it will be driven at least 3,150 miles
each quarter. Quarterly vehicle mileage reports are required to determine if the
assigned vehicles have met the minimum requirements. If a vehicle has not met the
Page 44
minimum mileage requirements and the Division finds that the faUure is not justified,
the Division must revoke the assignment. The reporting requirement and the revocation
requirement do not currenUy apply to DOT, however, because of the special provisions
described above.
Page 45
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
Proposal 5 (95-LJXZ-8)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Allow Temporary Plate For 60 Days. (Public)
Sponsors: Transportation Oversight Conunittee.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO AUTHORIZE THE DIVISION OF MOTOR VEHICLES TO ISSUE A
3 TEMPORARY LICENSE PLATE THAT IS VALID FOR UP TO 60 DAYS.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-50(b) reads as rewritten:
6 "(b) The Division may upon r e c e ipt of prop e r application upon a
7 form — s uppli e d by — the — Divi s ion — and — an — accompanying — fee — &f — thr ee
8 dollars — ( $ 3 . 00) — grant — a — 10 -day issue a temporary r e gi s tration
9 mark e r license plate for a vehicle. A temporary license plate is
10 valid for the period set by the Division. The period may not be
11 less than 10 days nor more than 60 days.
12 A person may obtain a temporary license plate for a vehicle by
13 filing an application with the Division and paying the required
14 fee. An application must be filed on a form provided by the
15 Division.
16 The fee for a temporary license plate that is valid for 10 days
17 is three dollars ($3.00). The fee for a temporary license plate
18 that is valid for more than 10 days is the amount that would be
19 required with an application for a license plate for the vehicle.
20 If a person obtains for a vehicle a temporary license plate that
21 is valid for more than 10 days and files an application for a
22 license plate for that vehicle before the temporary license plate
23 expires y the person is not required to pay the fee that would
24 otherwise be required for the license plate.
95-LJXZ-8 Page 46
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 A temporary license plate is subject to the following
2 limitations and conditions:
3 (1) T e mporary — 10-day r e gistration mark e r s — s hall It may
4 be issued only upon proper proof that the applicant
5 has met the applicable financial responsibility
6 requirements.
7 (2 ) T e mporary — 10---day r e gi s tration mark e rs — s hall — e xpir e
8 -to — day s — from th e dat e — &i — i ss uanc e. It expires on
9 midnight of the day set for expiration.
10 ( 3 ) T e mporary — 10-day — r e gi s tration — mark e r s It may be
11 used only on the vehicle for which issued and may
12 not be transferred, loan e d loaned, or assigned to
13 another.
14 (4) In th e e v e nt a t e mporary 10--day r e gi s tration mark e r
15 If it is lost or stolen, notic e s hall b e furni s h e d
16 to the person who applied for it must notify the
17 Division.
18 (5) Th e Commi ss ion e r s hall hav e th e pow e r to mak e s uch
19 rul es — and r e gulation s — not — inconsi s t e nt h e r e with a s
20 h e s hall d ee m n e c es sary for th e purpos e of carrying
21 out th e provi s ion s of thi s — se ction . It may not be
22 issued by a dealer.
23 (6) The provisions of G.S. 20-63, 20-71, 20-110 and
24 20-111 s hall that apply in lik e mann e r to license
25 plates apply to temporary 10 -day r e gi s tration
26 mark e rs as is applicabl e to nont e mporary plat es not
27 by — th e ir — natur e — r e nd e r e d — inapplicabl e. license
28 plates insofar as possible. "
29 Sec. 2. This act is effective upon ratification.
Page 47 95-LJXZ-8
Explanation of Proposal 5
Allow Temporary Plate For 60 Days
This proposal gives the Division of Motor Vehicles of the Department of
Transportation the authority to issue temporary cardboard license plates for vehicles
that are valid for up to 60 days. In doing so, it conforms the statute to the current
practices at the Division. The proposal is effective upon ratification.
Current law, in G.S. 20-50, states that a temporary plate is valid for 10 days. The
Division, however, issues three types of temporary cardboard plates: (i) a 10-day in-
transit plate; (ii) a 30-day temporary plate; and (iii) a 60-day apportioned plate. All
three types are included in the proposal.
A 10-day plate is typically used to get a vehicle purchased in this State to another
state where it will be registered. A 30-day plate is typically issued by an enforcement
officer of the Division for a for-hire conmiercial vehicle that has been stopped at a
weigh station or for another reason, does not have a proper license plate, and does not
operate in other states. The 60-day plate is similar to the 30-day plate. It is typically
issued by an enforcement officer of the Division for a for-hire commercial vehicle that
has been stopped at a weigh station or for another reason, is not registered in this state,
and operates in several states. A fee of $3 is charged for the 10-day plate and the
regular registration fees are charged for the 30-day and 60-day plates.
Page 48
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
Proposal 6 ( 95-LJZ-9 ( 1 .4 ) )
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Raise Reportable Accident Amount. (Public]
Sponsors: Transportation Oversight Committee.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO INCREASE THE MINIMUM PROPERTY DAMAGE AMOUNT FOR A
3 REPORTABLE MOTOR VEHICLE ACCIDENT AND TO RESOLVE
4 INCONSISTENCIES IN THE LAW CONCERNING ACCIDENT REPORTS.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 20-4.01 is eunended by adding a new
7 subdivision to read:
8 " (33b) Reportable accident. — An accident involving a
9 motor vehicle that results in either of the
10 following:
11 a_^ Death or injury of a human being.
12 b^ Total property damage of one thousand dollars
13 ($1,000) or more. "
14 Sec. 2. G.S. 20-166.1 reads as rewritten:
15 "S 20-166.1. Reports amd investigations required in event of
16 colli e ion . accident.
17 (a) Notice of Accident. — The driver of a vehicle involved in
18 a collieion — r e sulting — in — injury — to — ©f^ — d e ath — &i — any — person — ©t
19 total — prop e rty — damag e — te — an — appar e nt — e xt e nt — &i — fiv e — hundr e d
20 dollars ( $ 500 . 00) or — mor e s hall reportable accident must
21 immediately, by the quickest means of communication, giv e notic e
22 &fr notify the colli s ion — ^o — the — local — polic e — d e partm e nt — if — tbe
23 colli s ion occure within a municipality, — or to th e offic e of th e
24 s h e riff or oth e r qualifi e d rural polic e of th e county wh e r e in th e
95-LJZ-9 Page 49
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 collision — occurr e d , appropriate law enforcement agency of the
2 accident. If the accident occurred in a city or town, the
3 appropriate agency is the police department of the city or town.
4 If the accident occurred outside a city or town, the appropriate
5 agency is the State Highway Patrol or the sheriff's office or
6 other qualified rural police of the county where the accident
7 occurred.
8 (b) Insurance Verification. — Tb» When requested to do so by
9 the Division, the driver of any a vehicle involved in a colli s ion
10 r es ulting — i« — injury to or d e ath of any p e r s on or total prop e rty
11 damag e to an appar e nt e xt e nt of fiv e hundr e d dollar s — ( $ 500 . 00 ) — eap
12 mor e — shall reportable accident must furnish proof of financial
13 r es ponsibility ©b form s pr e scrib e d by feiie Division .
14 responsibility.
15 (c) Parked Vehicle. — Notwithstanding any oth e r provi s ion s of
16 thi s — se ction, — febe The driver of any a motor vehicle which that
17 collides with another motor vehicle left parked or unattended on
18 any s tr ee t or a highway of this State shall within 4 8 hour s must
19 report the collision to the owner of s uch the parked or
20 unattended motor vehicle. Such — r e port — s hall This requirement
21 applies to an accident that is not a reportable accident as well
22 as to one that is a reportable accident. The report may be made
23 orally or in writing, must be made within 4 8 hours of the
24 accident, and must include the tim e , — date — and — plac e — »f — the
25 collision, — the — driv e r' s — ftam^T — addr es s, — driv e r' s — lic e n se — numb e r
26 and th e following;
27 ( 1 ) The time, date, and place of the accident.
28 (2) The driver's name, address, and license number.
29 (3) The registration number of the vehicle being
30 operated by the driver at the time of the
31 colli s ion, — and — s uch — r e port — may — be — oral — &e — ift
32 writing . Such writt e n r e port must b e transmitt e d
33 to th e curr e nt addr e s s of th e own e r of th e park e d
34 or unatt e nd e d v e hicl e by Unit e d Stat es accident.
35 If the driver makes a written report to the owner of the parked
36 or unattended vehicle and the report is not given to the owner at
37 the scene of the accident, the report must be sent to the owner
38 b^ certified mail, return receipt requested, and a copy of s uch
39 r e port — shall — be — transmitt e d — te — the — North — Carolina — Divi s ion — &ir
40 Motor V e hicl es, the report must be sent to the Division.
41 No r e port, — oral or writt e n, mad e pur s uant to thi s Articl e s hall
42 b e comp e t e nt in any civil action e xc e pt to e stabli s h id e ntity of
43 the — p e r s on — op e rating — the — moving — v e hicl e — at — the — tim e — of — the
44 colli s ion r e f e rr e d to th e r e in .
Page 50 95-LJZ-9
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 Any p e r s on who violat e s thi s s ub se ction ie guilty of a Cla ss — Ir
2 mi s d e m e anor .
3 44-) — Th e Division may r e quir e th e driv e r of — a v e hicl e — involv e d
4 in a colli s ion which — ic — r e quir e d to b e r e port e d by thi s — se ction
5 to — fil e — a — suppl e m e ntal — r e port — wh e n — the — original — r e port — Le-
6 insuffici e nt in th e opinion of th e Divi s ion .
7 (e) Investigation By Officer. — It s hall b e th e duty of th e
8 Stat e Highway Patrol or th e s h e riff' s offic e or oth e r qualifi e d
9 rural — polic e — fe© — inv es tigat e — ai4 — colli s ion s — r e quir e d — to — be
10 r e port e d — by — thi s — s e ction wh e n — t^ie — colli s ion s — occur — out s id e — the
11 corporat e — limit s of a city or town; — and it s hall b e th e duty of
12 the — polic e — d e partm e nt — &£ — e ach — city — of — town — to — inv es tigat e — aJrJr
13 collisions — r e quir e d — to — be — r e port e d — by — this — s e ction — wh e n — the
14 colli s ion s occur within th e corporat e limit s of th e city or town .
15 Ev e ry The appropriate law enforcement agency must investigate a
16 reportable accident. A law-enforcement officer who investigates
17 a — colli s ion — as — r e quir e d — by — thi s s ub se ction, a reportable
18 accident/ whether th e inv e stigation i s mad e at the scene of the
19 colli s ion accident or by subsequent investigations and
20 interviews, s hall, within 24 hour s aft e r compl e ting the
21 inv es tigation, — forward a writt e n r e port of — th e colli s ion to th e
22 Division — i4 — the — colli s ion occurr e d out s id e th e corporat e — limit s
23 ©^ — a — city or town, — or to th e polic e d e partm e nt of — th e city or
24 town — Li — the — colli s ion — occurr e d within — the — corporat e — limit s — o£
25 s uch — city — &i^ — town . Polic e — d e partm e nts — s hould — forward — s uch
26 r e port s — to — the — Divi s ion — within — IG — day s — &i — the — dat e — of — the
27 colli s ion . Provid e d, — wh e n — a — colli s ion — occurring — outsid e — the
28 corporat e — limit s — &i — a — city — of — town — is — inv es tigat e d — by — a — duly
29 qualifi e d — law- e nforc e m e nt — offic e r — oth e r — than — a — m e mb e r — &i — the
30 Stat e — Highway Patrol, — as — p e rmitt e d by thi s — se ction, — s uch oth e r
31 offic e r — s hall — forward — a writt e n — r e port — of — the — colli s ion to — the
32 offic e of th e s h e riff or rural polic e of th e county wh e r e in th e
33 colli s ion occurr e d and th e offic e of th e s h e riff or rural polic e
34 shall forward s uch r e port s to the Divi s ion within 10 day s of th e
35 dat e of th e colli s ion . Th e r e port s by law^- e nforc e m e nt offic e r s
36 s hall — be — in — addition — to-, — and — net — in — plac e — of-, — the — r e port s
37 r e quir e d of driv e r s — by thi s — se ction , must make a written report
38 of the accident within 24 hours of the accident and must forward
39 it as required by this subsection. The report must contain
40 information on financial responsibility for the vehicle driven by
41 the person whom the officer identified as at fault for the
42 accident.
43 If the officer writing the report is a member of the State
44 Highway Patrol, the officer must forward the report to the
95-LJZ-9 Page 51
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 Division, If the officer is not a member of the State Highway
2 Patrol y the officer must forward the report to the local law
3 enforcement agency for the area where the accident occurred. A
4 local law enforcement agency that receives an accident report
5 must forward it to the Division within 10 days after receiving
6 the report.
7 When any a person involv e d injured in an automobil e collieion
8 s hall — di« a reportable accident dies as a result of s aid
9 colli e ion — within — a — p e riod — &ir the accident within 12 months
10 following — said — colli s ion, — and — s uch after the accident and the
11 death s hall — not — hav e — b ee n was not reported in the original
12 report, 4* — shall — be — fehe — duty — &i — inv es tigating — e nforc e m e nt
13 offic e r s — feo the law enforcement officer investigating the
14 accident must file a supplemental report se tting forth th e d e ath
15 of s uch p e r s on , that includes the death.
16 ( f ) Medical Personnel. — Ev e ry p e r s on holding th e offic e of A
17 county medical examiner in this — Stat e — shall must report to the
18 Division the death of any person »« — a — r es ult — ©f — a — colli s ion
19 involving — a — motor — v e hicl e in a reportable accident and the
20 circumstances of the colli s ion — within — fiv e — days — following — s uch
21 d e ath . Ev e ry accident. The medical examiner must file the
22 report within five days after the death. A hospital s hall must
2 3 notify the medical examiner of the county in which the collision
24 accident occurred of the death within the hospital of any person
25 who dies as a result of injuries apparently sustained in a
26 colli s ion involving a motor v e hicl e, reportable accident.
27 (g) Repealed by Session Laws 1987, c. 49.
28 (h) Forms. — The Division shall — pr e par e — and — s hall — upon
29 r e qu es t — supply — to — polic e , — [m e dical — e xamin e r s ] , — s h e riff s , — and
30 oth e r — s uitabl e — ag e nci e s, — of — individual s , — form s — £«f — colli s ion
31 r e port s calling for s uffici e ntly d e tail e d information to disclos e
32 with r e f e r e nc e to a highway collision th e cau se , — condition s th e n
33 e xi s ting, — and th e p e r s on s — and v e hicl es — involv e d . A14 — colli s ion
34 r e port s r e quir e d by thi s se ction s hall b e mad e on forms — s uppli e d
35 &f — approv e d — by — the — Divi s ion , must provide forms to persons
36 required to make reports under this section and the reports must
37 be made on the forms provided. The forms must ask for the
38 following information about a reportable accident;
39 ( 1 ) The cause of the accident.
40 (2 ) The conditions existing at the time of the
41 accident.
42 ( 3) The persons and vehicles involved.
43 (i) Effect of Report. — Ai4 — colli s ion — r e port s , — including
44 s uppl e m e ntal — r e port s , — abov e — m e ntion e d, — e xc e pt — tho se — made — by
Page 52 95-LJZ-9
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 Stat e ; — city — &¥^ — county polic e , — s hall — i^& A report of an accident
2 made under this section by a person that is not a law enforcement
3 officer is without pr e judic e and s hall b e prejudice, is for the
4 use of the Division Division, and shall not be used in any manner
5 as evidence, or for any other purpose in any trial, civil or
6 criminal, arising out of s uch colli s ion e xc e pt that th e Division
7 s hall — furni s h — upon — d e mand — &i — afty — court the accident. At the
8 demand of a court, however, the Division must give the court a
9 properly executed certificate stating that a particular collision
10 accident report has or has not been filed with the Division
11 solely to prove a compliance with this section.
12 The reports made by Stat e , — city or county polic e — and m e dical
13 e xamin e r s , — but — »o — oth e r — r e ports — r e quir e d — und e r — thi s — se ction,
14 s hall — be — s ubj e ct — fee — the persons who are not law enforcement
15 officers or medical exeuniners are not public records. The
16 reports made by law enforcement officers and medical examiners
17 are public records and are open to inspection ©f — m e mb e rs — of- h^
18 the general public at all reasonable tim e s, — and — the — Divi s ion
19 s hall — furni s h a c e rtifi e d copy of any s uch r e port to any m e mb e r
20 of th e g e n e ral public who s hall r e qu es t th e sam e , upon r e c e ipt of
21 a f ee of — four dollar s — ( $ 4 . 00) — c e rtifi e d copy, — or th e Divi s ion i s
22 authori ze d — te — furni s h — without — charg e — to — d e partm e nt s — &£ — t4ie
23 gov e rnm e nts — &£ — the — Unit e d — Stat e s, — s tat es , — counti es , — and — citi es
24 c e rtifi e d — copi es — ©f — s uch — colli s ion — r e port s — iof^ — official — u se.
25 times. The Division must give a certified copy of one of these
26 reports to a member of the general public who requests a copy and
27 pays the fee set in G.S. 20-42.
28 Nothing — h e r e in — provid e d — s hall — prohibit — the — Divi s ion — from
29 furni s hing — te — int e r es t e d — parti es — only — the — aante — of — names — &£-
30 in s ur e r s — and — insur e d — and — policy — numb e r — s hown — upon — any — r e ports
31 r e quir e d und e r this s e ction .
32 (j) Statistics. The Division s hall — r e c e iv e — colli s ion
33 r e port s r e quir e d to b e mad e by this se ction, and may tabulat e and
34 analyz e — such r e port s — and publi s h annually, — or at mor e — fr e qu e nt
35 int e rvals, may periodically publish statistical information on
36 motor vehicle accidents based th e r e on a s to th e numb e r, — cau se and
37 location of highway colli s ion s.
38 Bas e d upon — it« — finding s — aft e r analy s i s , — the on information in
39 accident reports. The Division may conduct furth e r — n e c e ssary
40 detailed research to determine more fully the cause and control
41 of highway — colli s ion s. tt accidents and may furth e r conduct
42 experimental field tests within areas of the State from time to
43 time to prove the practicability of various ideas advanced in
44 traffic control and colli s ion accident prevention.
95-LJZ-9 Page 53
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 (k) Punishment. A violation of any provision of this
2 section is a Cla ss 2 mi s d e m e anor , misdemeanor of the Class set in
3 G.S. 20-176, "
4 Sec. 3. G.S. 20-179(d)(3) reads as rewritten:
5 "(3) Negligent driving that led to an accid e nt causing
6 prop e rty damag e in e xc ess of fiv e hundr e d dollars
7 ( $ 500 . 00) &f p e rsonal injury . a reportable
8 accident. "
9 Sec. 4. G.S. 20-279.4 is repealed.
10 Sec. 5. G.S. 2 0-2 7 9. 5 (a) reads as rewritten:
11 " ( a ) a — »t — th e e xpiration of — 2^ — day s — aft e r th e — r e c e ipt of a
12 r e port of — a motor v e hicl e accid e nt within thi s — Stat e which has
13 r e sult e d — in — bodily — injury — of — d e ath — of — total — prop e rty — damag e — irt
14 e xc ess — &£ — fiv e — hundr e d dollar s — ( $ 500 . 00 ) , — th e Commission e r do es
15 not hav e on fil e e vid e nc e satisfactory to him that th e p e r s on who
16 would oth e rwi se b e r e quir e d to fil e s e curity und e r s ub se ction (b)
17 &i — this — se ction — ha« — b ee n — r e l e as e d — from — liability, — o*^ — h«ts — b ee n
18 finally — adjudicat e d — n&k — te — be — liabl e — &e — h^s — e x e cut e d — a — duly
19 acknowl e dg e d — writt e n — agr ee m e nt — providing — fof — t4ie — paym e nt — &f — an
20 agr ee d amount, — in installm e nt s or oth e rwis e , — or is — for any oth e r
21 r e ason — n©t — r e quir e d — fee — fil e — se curity — und e r — thi s — Articl e — with
22 r es p e ct to all claim s — for injuri es or damag es — r es ulting from th e
23 accid e nt, — th e Conmii s sion e r shall d e t e rmin e th e amount of s e curity
24 which shall b e s uffici e nt in hi s judgm e nt to s ati s fy any judgm e nt
25 Of — judgm e nt s — for damag es — r e sulting — from s uch accid e nt as may b e
26 r e cov e r e d — again s t — e ach — op e rator — &e — own e r . When the Division
27 receives a report of a reportable accident under G.S. 20-166.1,
28 the Commissioner must determine whether the owner or driver of a
29 vehicle involved in the accident must file security under this
30 Article and, if so, the amount of security the owner or driver
31 must file. The Commissioner must make this determination at the
32 end of 20 days after receiving the report. "
33 Sec. 6. G.S. 20-279.11 reads as rewritten:
34 "S 20-279.11. Matters not to be evidence in civil suits.
35 Neither the r e port — r e quir e d — by — G . S . — 3 0» 3 79 . 4 , information on
36 financial responsibility contained in an accident report, the
37 action taken by the Commissioner pursuant to this Article, the
38 findings, if any, of the Commissioner upon which s uch the action
39 is based, or the security filed as provided in this Article shall
40 be referred to in any way, nor be any evidence of the negligence
41 or due care of either party, at the trial of any action at law to
42 recover damages."
43 Sec. 7. G.S. 20-279.31 reads as rewritten:
44 " S 20-279.31. Other violations; penalties.
Page 54 95-LJZ-9
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 (a) Failur e to r e port an accici e nt a s r e quir e d in G . S . 20-279 . 4
2 i e a Claee — 3 mi s d e m e anor puni s habl e only by a fin e not in e xcocc
3 04 — tw e nty fiv e — dollars — ($ 2 5 . 00) — and — i« — the — e v e nt — &f — injury — ©t
4 damag e to th e p e rson or prop e rty of anoth e r in such accid e nt/ the
5 The Commissioner shall suspend the license of the a person
6 failing who fails to mak e — s uch — r e port, — o*: — tiie — nonresident' s
7 op e rating privil e ge — oi — s uch p e rson, — until — s uch r e port hac — been
8 fil e d — and — f«* — s uch — furth e r report a reportable accident/ as
9 required by G.S. 20-166.1, until the Division receives a report
10 and for an additional period not to set by the Commissioner. The
11 additional period may not exceed 30 days as th e Commi s sion e r may
12 fix . days.
13 (b) Any person who giv es does any of the following commits a
14 Class 1 misdemeanor;
15 ( 1) Gives information required in a report os^
16 oth e rwi se a s provid e d for in G . S . — 20-279.4 of a
17 reportable accident, knowing or having reason to
18 believe that — s uch the information is fal se , — ©t
19 v*bo — s hall — forg e — o*^, — without — authority, s ign
20 false.
21 (2 ) Forges or without authority signs any evidence of
22 proof of financial r es ponsibility, — or who — files
23 respons ibil ity .
24 (3) Files or offers for filing any s uch evidence of
25 proof of financial responsibility, knowing or
26 having reason to believe that it is forged or
27 signed without authority, — i s guilty of a Class 1
28 misd e m e anor , authority.
29 (c) Any person willfully failing to return a license as
30 required in G.S. 20-279.30 is guilty of a Class 3 misdemeanor.
31 (cl) Any person who makes a false affidavit or knowingly
32 swears or affirms falsely to any matter under G.S. 20-279.5,
33 20-279.6, or 20-279.7 is guilty of a Class I felony.
34 (d) Any person who shall violate any provision of this Article
35 for which no penalty is otherwise provided is guilty of a Class 2
36 misdemeanor."
37 Sec. 8. G.S. 20-42(b) reads as rewritten:
38 "(b) The Commissioner and officers of the Division designated
39 by the Commissioner may prepare under the seal of the Division
40 and deliver upon request a certified copy of any document of the
41 Division, — charging a f ee of Division for a fee. The fee for a
42 document, other than an accident report under G.S. 20-166.1, is
43 five dollars ($5 . 00) — for e ach docum e nt c e rtifi e d . ($5.00). The
44 fee for an accident report is four dollars ($4.00). A certified
95-LJZ-9 Page 55
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 copy shall be admissible in any proceeding in any court in like
2 manner as the original thereof, without further certification.
3 The certification fee does not apply to a document furnished to
4 Stat e — official s — o*: — to — county > — municipal, — &f — court — official s — »4
5 thi s — Stat e for official us e. use to a judicial official or to an
6 official of the federal government, a state government, or a
7 local government. "
8 Sec. 9. This act becomes effective November 1, 1995,
9 and applies to accidents and offenses occurring on or after that
10 date.
Page 56 95-LJZ-9
Explanation of Proposal 6
Raise Reportable Accident Amount
This proposal raises the reportable accident amount from $500 to $1,000, effective
November 1, 1995, and makes clarifying changes to the affected statutes. The
reportable accident amount was last raised on October 1, 1983, when it was raised from
$250 to $500. The Division of Motor Vehicles of the Department of Transportation
suggested that the committee recommend increasing the current $500 threshold to
$750. The North Carolina Highway Patrol then asked the committee to consider
recommending increasing the threshold ftirther to $1,000. The Committee adopted the
recommendation of the Highway Patrol and incorporated this recommendation in this
proposal.
The reportable accident amoimt is the amount of damage done in a collision that
triggers the notice and reporting requirements. If an accident involves (i) death or
injury to a person or (ii) property damage in an amount that exceeds the threshold (now
$500), the driver of a vehicle involved in the accident must report the accident to a law
enforcement officer. The law enforcement officer must then make a report of the
accident and send the report to the Division of Motor Vehicles.
Section 1 of the bill changes the reportable accident amount from $500 to $1,000.
It does this by inserting a definition of reportable accident in the list of definitions that
apply to the motor vehicle laws. Establishing a definition of reportable accident avoids
needless repetition in various places in the statutes and ensures uniformity whenever a
change is made in the threshold amount. The other sections of the bill make
conforming changes to various statutes that apply to reportable accidents.
Section 2 amends G.S. 20-166.1, the statute that specifies when a person must
report an accident, to replace references to the $500 threshold with the term
"reportable accident. " It also makes clarifying changes to that statute. First, it deletes
provisions in subsections (d) and (e) of the statute that refer to reports filed by drivers
because law enforcement officers rather than the drivers are the ones that complete and
file the reports. Many years ago, the drivers filed the reports but the law was changed
to have law enforcement officers file the reports and the statute was not changed
accordingly.
Second, section 2 incorporates the requirement that is now in G.S. 20-279.4 for
an officer to obtain liability insurance information when investigating a reportable
accident. Third, it resolves the conflict between subsections (c) and (k) of G.S. 20-
Page 57
166.1 concerning the punishment for failure to make a report of an accident involving a
parked vehicle. Subsection (c) makes the failure a Class 1 misdemeanor and subsection
(k) makes it a Class 2 misdemeanor. The bill makes all violations of G.S. 20-166.1 a
Class 2 misdemeanor (as is stated in subsection (k)), thereby allowing the general
punishment provisions in G.S. 20-176 to apply.
Fourth, section 2 deletes language in subsection (c) of the statute on the effect of a
report because the same provision is repeated in subsection (i) and is therefore not
necessary in subsection (c). Fifth, section 2 deletes language in subsection (i)
concerning information the EHvision can give to interested parties because it is
unnecessary. All the information the Division gives interested parties on the matter of
insurance comes from public records.
Finally, section 2 moves the fee for a certified copy of an accident report from
G.S. 20-166.1 to G.S. 20^2. It does this to consolidate the fee provisions so that one
is not overlooked when any changes are made to the fees. In 1991, the fee in G.S. 20-
42(b) for certified documents of the Division was increased from $4.00 to $5.00. A
similar increase was not made in the fee for a certified copy of an accident report
because that fee was set in a different statute and was overlooked. This section does
not change the fee for a certified copy of an accident report; it simply moves the fee
from one statute to another.
Section 3 replaces a reference in G.S. 20- 179(d) to the $500 threshold with the
term "reportable accident." That statute sets out an aggravating factor to consider in
determining the punishment of a person convicted of driving while impaired.
Section 4 repeals a statute that requires accident reports to include information on
liability insurance. It does this because the requirement is included in G.S. 20-166.1,
as rewritten by section 2 of this proposal, and is therefore not needed.
Section 5 amends G.S. 20-279.5 to replace a reference to the $500 threshold with
the term "reportable accident." That statute directs the Commissioner of Motor
Vehicles to review accident reports to determine if a person does not have liability
insurance and therefore needs to file a seciuity deposit with the Division.
Section 6 amends G.S. 20-279.11 to delete a reference to G.S. 20-279.4, which is
repealed by section 4 of this proposal. The section substitutes a reference to an
accident report for the former reference to G.S. 20-279.4.
Section 7 amends G.S. 20-279.31 to delete references to G.S. 20-279.4, which is
repealed by section 4 of this proposal, and to delete a punishment for failing to report
a reportable accident that conflicts with the punishment set in G.S. 20-166.1.
Page 58
Subsection (a) of G.S. 20-279.31 makes failure to report an accident a Class 3
misdemeanor punishable only by a $25 fine. G.S. 20-166.1 makes the failure a Class 2
misdemeanor. Repealing the conflicting provision in G.S. 20-279.3 1(a) makes it clear
that the punishment in G.S. 20-166.1 is the appropriate one.
Section 8 incorporates in G.S. 20-42 the fee provisions that were deleted from
G.S. 20-166.1 by section 2 of this proposal. It does not change the fee for a certified
copy of an accident report or the persons who are entitled to a free certified copy of an
accident report.
Section 9 sets the effective date of the proposal. The effective date is November
1, 1995.
Page 59
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
Proposal 7 (95-LJXZ-7(1.3) )
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Insurance Lapse Penalty Changes. (Public)
Sponsors: Transportation Oversight Committee.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO REVISE THE PENALTIES FOR DRIVING A VEHICLE WITHOUT
3 INSURANCE.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-309(e) reads as rewritten:
6 "(e) Upon — t e rmination — by — canc e llation — of — oth e rwi se — &i — an
7 in s uranc e policy provid e d in s ub se ction (b) — of thi s se ction, — the
8 An insurer s hall that, by cancellation or failure to renew,
9 terminates a liability insurance policy must notify the Division
10 of s uch t e rmination; provid e d, — no canc e llation notic e i s r e quir e d
11 if th e insur e r i ss u es a n e w in s uranc e policy complying with thi s
12 Articl e — a4 — the — same — tim e — the — in s ur e r — canc e l s — of — oth e rwi se
13 t e rminat es — the — &id — policy, the termination. This requirement
14 does not apply when an insurer issues a new liability insurance
15 policy to replace the terminated policy and no lapse in coverage
16 r es ults, — and th e — in s ur e r — s e nd s results. In this circumstance,
17 however, the insurer must notify the Division c e rtificat e of
18 in s uranc e — form — foi? the issuance of the new policy — fe« — tb®
19 Division . — Th e Divi s ion, — upon r e c e iving notic e of canc e llation or
20 t e rmination of an own e r' s financial r es pon s ibility a s r e quir e d by
21 this — Articl e , — s hall — notify — s uch — own e r — &£ — such — canc e llation — &f-
22 t e rmination, — and — sueh — own e r — s hall, — te — r e tain — the — r e gistration
23 plat e — for th e v e hicl e — r e gist e r e d or r e quir e d to b e — r e gi s t e r e d,
24 within 1 day s from dat e of notic e giv e n by th e Divi s ion e ith e r ;
95-LJXZ-7 Page 60
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 -f4-)- C e rtify — fee — feiie — Divi s ion — that — be — bad — financial
2 r e sponsibility e ff e ctiv e on or prior to th e dat e of
3 such t e rmination; — &Â¥â–
4 ( 2 ) In th e ca se of a laps e — in financial — r e spon s ibility ^
5 pay — a — fifty — dollar — ( $ 50 . 00) — civil — p e nalty; — and
6 c e rtify to th e Divi s ion that h e now ha s — financial
7 r es pon s ibility e ff e ctiv e ©« fehe dat e of-
8 c e rtification, — that h e did not op e rat e th e v e hicl e
9 in — qu e stion — during — febe — p e riod — &i — no — financial
10 r e sponsibility with th e knowl e dg e that th e r e wa s no
11 financial — r es pon s ibility, — and that th e v e hicle — ia
12 qu e stion — w»« — nofe^ — involv e d — in — a — motor — v e hicl e
13 accid e nt during the p e riod of ne financial
14 r es ponsibility .
15 Failur e — &f tie — own e r — fee — c e rtify — that — he — has financial
16 r es pon s ibility — ae — h e r e in — r e quir e d — shall — b e prim a — faci e e vid e nc e
17 that — no — financial — r es pon s ibility — e xi s t s — with — r e gard — feo — febe
18 v e hicl e — conc e rn e d — and unl ess — th e own e r ' s — r e gistration plat e has
19 en — Of — prior — feo — the — dat e — of — t e rmination — of — in s uranc e — been
20 s urr e nd e r e d — feo — febe — Divi s ion — by — s urr e nd e r — feo — an — ag e nt — o*^
21 r e pr ese ntativ e of th e Division d es ignat e d by th e Commi s sion e r, or
22 d e po s iting th e — s am e — in th e Unit e d Stat es mail, — addr esse d to th e
23 Divi s ion of Motor V e hicl e s, — Ral e igh, — North Carolina, — th e Divi s ion
24 s hall r e vok e th e v e hicl e ' s r e gistration for 30 days .
25 ifi — no — e*&e — s hall — any — v e hicl e , — febe — r e gi s tration — of — which — hste-
26 b ee n — r e vok e d — foi^ — failur e — feo — hav e — financial — r e spon s ibility, — be
27 r e r e gi s t e r e d in th e nam e of th e r e gi s t e r e d own e r, — s pou se , — or any
28 child of th e s pou se , — or any child of s uch own e r within l ess than
29 -3^ — day s — aft e r — th e dat e — of — r e c e ipt — of — fejte — r e gi s tration plat e by
30 fe^ie — Divi s ion — of — Motor — V e hicl es , — e xc e pt — that — a — s pous e — living
31 se parat e — and — apart — from — fe^ie — r e gi s t e r e d — own e r — may — r e gi s t e r — s uch
32 v e hicl e — imm e diat e ly — in — such — s pous e 's — nam e. — Additionally, — ae — a
33 condition pr e c e d e nt to th e — r e r e gi s tration of — th e v e hicl e by th e
34 r e gist e r e d — own e r , — s pou se , — of — any — child — of — fe^ie — s pous e , — of — any
35 child — of — s uch — own e r, — e xc e pt — a — s pou se — living — se parat e — and — apart
36 from th e — r e gi s t e r e d — own e r, — febe — paym e nt — of — a — r e storation — fee — of-
37 fifty — dollar s ( $ 50 . 00) and — febe — appropriat e — fee — fof — a — new
38 r e gi s tration plat e — Le — r e quir e d . — Any p e rson, — firm or corporation
39 failing to giv e notic e of t e rmination s hall b e s ubj e ct to policy.
4 The Commissioner of Insurance may assess a civil penalty of two
41 hundred dollars ($200.00) to b e a ssesse d by th e Commi ss ion e r of
42 In s uranc e upon a — finding by th e Commission e r of — In s uranc e that
43 c^oed — cau se — ir« — nofe^ — s hown — fof — s uch — failur e — feo — giv e — notic e — of
44 t e rmination — feo — febe — Divi s ion , against an insurer that fails to
Page 61 95-LJXZ-7
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 notify the Division^ as required by this subsection, unless the
2 insurer establishes good cause for the failure. "
3 Sec. 2. G.S. 20-311 reads as rewritten:
4 "$ 20-311. R e vocation oi r e gistration %«bea financial
5 r es pon s ibility — not — in — e ff e ct . Action by Division when notified
6 that a vehicle is not insured.
7 Upon r e c e ipt of e vid e nc e that financial r es pon s ibility for th e
8 op e ration — &i — any — motor — v e hicl e — r e gist e r e d — Of — r e quir e d — to — be
9 r e gi s t e r e d in thi s Stat e i s not or wa s not in e ff e ct at th e tim e
10 of op e ration or c e rtification that in s uranc e wa s — in e ff e ct, — the
11 Divi s ion — s hall — r e vok e — the — own e r' s — r e gistration plat e — i ss u e d — £of
12 the — v e hicl e — at — the — tim e — of — op e ration — of — c e rtification — that
13 in s uranc e was in e ff e ct or th e curr e nt r e gistration plat e for th e
14 v e hicl e in th e y e ar r e gi s tration ha s chang e d for 30 days .
15 Th e v e hicl e for which r e gi s tration ha s b ee n r e vok e d pursuant to
16 thi s — s e ction — may — be — r e gist e r e d — at — the — end — of — the — 30-"-day
17 r e vocation p e riod upon c e rtification of financial r e spon s ibility
18 and — paym e nt — by — the — v e hicl e — own e r — of — a — fifty-dollar — ( $ 50 . 00)
19 administrativ e f ee in addition to appropriat e lic e ns e f ees. — In no
20 e v e nt — may — s uch — v e hicl e — be — r e gi s t e r e d — prior — te — paym e nt — ef — the
21 fifty dollar ( $ 50 . 00) admini s trativ e f ee.
22 (a) Action. — When the Division receives evidence, by a notice
23 of termination of a liability insurance policy or otherwise, that
24 the owner of a motor vehicle registered or required to be
25 registered in this State does not have financial responsibility
26 for the operation of the vehicle, the Division must send the
27 owner a letter. The letter must notify the owner of the evidence
28 and inform the owner that the owner must respond to the letter
29 within 10 days of the date on the letter and explain how the
30 owner has met the duty to have continuous financial
31 responsibility for the vehicle. Based on the owner's response,
32 the Division must take the appropriate action listed;
33 ( 1 ) Division Correction. — If the owner responds
34 within the required time and the response
35 establishes that the owner has not had a lapse in
36 financial responsibility, the Division must correct
37 its records.
38 (2 ) Penalty Only. — If the owner responds within the
39 required time and the response establishes all of
40 the following, the Division must assess the owner a
41 penalty in the amount set in subsection (b) of this
42 section;
95-LJXZ-7 Page 62
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 a_^ The owner had a lapse in financial
2 responsibility y but the owner now has
3 financial responsibility.
4 bj^ The vehicle was not involved in an accident
5 during the lapse in financial responsibility.
6 c_^ The owner did not operate the vehicle during
7 • - the lapse with knowledge that the owner had no
8 financial responsibility for the vehicle.
9 (3) Penalty and Revocation. — If the owner responds
10 within the required time and the response
11 establishes any of the following, the Division must
12 assess the owner a penalty in the amount set in
13 subsection (b) and revoke the registration of the
14 owner's vehicle for the period set in subsection
15 (c);
16 a^ The owner had a lapse in financial
17 responsibility and still does not have
18 financial responsibility.
19 b^ The owner now has financial responsibility
20 even though the owner had a lapse, but the
21 vehicle was involved in an accident during the
22 lapse, the owner operated the vehicle during
23 the lapse with knowledge that the owner had no
24 financial responsibility for the vehicle, or
25 both.
26 (4 ) Revocation Pending Response. — If the owner does
27 not respond within the required time, the Division
28 must revoke the registration of the owner's vehicle
29 for the period set in subsection (c). When the
30 owner responds, the Division must take the
31 appropriate action listed in subdivisions (1)
32 through (3) of this subsection as if the response
33 had been timely.
34 (b) Penalty Amount. — The penalty amount is the greater of the
35 following;
36 iVi Twenty-five dollars ($25.00).
37 (2) One dollar ($1.00) multiplied by the product of the
38 number of days the owner had no financial
39 responsibility and the owner's driving points under
40 G.S. 20-16 on the day the lapse in financial
41 responsibility began.
42 A lapse in financial responsibility that results from failure
43 to make an installment payment of a premium on a liability
Page 63 95-LJXZ-7
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 insurance policy begins the day after the installment was due
2 rather than the effective date of the policy.
3 If a vehicle ovmer is subject to a penalty because the owner
4 had a lapse in financial responsibility and still does not have
5 financial responsibility ^ the Division must assess part of the
6 penalty when it establishes that the owner is subject to a
7 penalty and part of it when the owner applies to the Division to
8 register a vehicle upon obtaining financial responsibility. The
9 Division must calculate the first part of the penalty based on
10 the number of days in the lapse up to the date of the revocation
11 notice the Division sends the owner. The Division must calculate
12 the second part of the penalty based on the number of days in the
13 lapse from the date of the revocation notice to the date the
14 owner obtains financial responsibility.
15 (c) Revocation Period. — The revocation period for a
16 revocation based on a response that establishes that a vehicle
17 owner does not have financial responsibility is indefinite and
18 ends when the owner obtains financial responsibility or transfers
19 the vehicle to an owner who has financial responsibility. The
20 revocation period for a revocation based on a response that
21 establishes the occurrence of an accident during a lapse in
22 financial responsibility or the knowing operation of a vehicle
23 without financial responsibility is 30 days. The revocation
24 period for a revocation based on failure of a vehicle owner to
25 respond is indefinite and ends when the owner responds.
26 (d) Revocation Notice. — When the Division revokes the
27 registration of an owner's vehicle ^ it must notify the owner of
28 the revocation. The notice must inform the owner of the
29 following;
30 ( 1 ) That the owner must return the vehicle's license
31 plate and registration card to the Division, if the
32 owner has not done so already , and that failure to
33 do so is a Class 2 misdemeanor under G.S. 20-45.
34 (2) That the vehicle's license plate and registration
35 card are subject to seizure by a law enforcement
36 officer.
37 (3) That the registration of the vehicle cannot be
38 renewed while the registration is revoked.
39 (4) That the owner must pay any penalties assessed, a
40 restoration fee, and the fee for a license plate
41 when the owner applies to the Division to register
42 a vehicle whose registration was revoked.
43 A vehicle whose registration has been revoked may not be
44 registered during the revocation period in the name of the owner.
95-LJXZ-7 Page 64
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 a child of the owner^ the owner's spouse^ or a child of the
2 owner's spouse. This restriction does not apply to a spouse who
3 is living separate and apart from the owner.
4 (f) Registration After Revocation. — At the end of a
5 revocation period ^ a vehicle owner who has financial
6 responsibility may apply to register a vehicle whose registration
7 was revoked. The owner must pay any penalty assessed, a
8 restoration fee of twenty-five dollars ($25.00), and the fee for
9 a license plate. "
10 Sec. 3. G.S. 20-316 reads as rewritten:
11 "S 20-316. Divisional hearings upon lapse of liability insurance
12 coverage.
13 Any person whose r e gi s tration license plate has been revoked
14 under G.S. 20-309( e ) — &*^ 20-311 may request a hearing. Upon
15 receipt of s uch a request, the Division shall, — »e — e arly — ae-
16 practical, — afford — him — an — opportunity — £«*^ — h e aring . Upon — s uch
17 h e aring must hold a hearing as soon as practical. At the
18 hearing, the duly authorized agents of the Division may
19 administer oaths and issue subpoenas for the attendance of
20 witnesses and the production of relevant books and documents. If
21 it appears that continuous financial responsibility existed for
22 the vehicle involved, or if it appears the lapse of financial
23 responsibility is not reasonably attributable to the neglect or
24 fault of the person whose r e gistration license plate was revoked,
25 the Division shall withdraw its order of revocation and s uch the
26 person may retain the r e gi s tration license plate. Otherwise, the
27 order of revocation shall be affirmed and the r e gi s tration
28 license plate surrendered."
29 Sec. 4. This act becomes effective January 1, 1996, and
30 applies to lapses of financial responsibility occurring on or
31 after that date.
32
33
Page 65 95-LJXZ-7
Explanation of Proposal 7
Insurance Lapse Penalty Changes
This proposal makes three changes in the consequences of driving a vehicle
without liability insurance for the vehicle, effective January 1, 1996, and makes
technical changes to the affected statutes. The three changes are:
(1) A change in the penalty amount from $50 to the greater of (i) $25 or (ii)
the dollar amount equal to the number of days in a lapse in insiu-ance
multiplied by the owner's drivers license points.
(2) A change in the revocation period for the failure of a vehicle owner to have
insurance from 30 days to an indefinite period that ends when the owner
obtains insurance.
(3) A change in the restoration fee from $50 to $25.
The Division of Motor Vehicles of the Department of Transportation asked the
committee to review the insurance penalty provisions as a result of the number of
complaints the Division receives about those provisions. The committee reviewed the
provisions and determined that changes are needed to make the penalties fit the purpose
for which they are imposed. The purpose of imposing penalties for lapses in insurance
is to prevent drivers from operating vehicles that are uninsured. The penalty needs to
be high enough so that it is not cheaper to pay a penalty when the Division determines
there has been a lapse than it is to maintain insurance and it should not be so high as to
be excessively harsh when applied to unintentional and unknowing lapses.
The committee decided that the current penalty of $50 does not gauge the penalty
to the risk. The danger of an uninsured driver to the motoring public is greater for
drivers with poor driving records than it is for drivers with good driving records. A flat
$50 penalty does not distinguish between drivers, however. To make the penalty fit the
risk, the committee decided to change the penalty from a fixed penalty to one based on
a simple formula. The formula is the days in a lapse multiplied by the drivers license
points of the person who had the lapse, with the proviso that the penalty must be at
least $25. Thus, if the lapse were for 12 days and the person had 5 drivers license
points, the penalty would be $60. If the person had no points, the penalty would be
$25.
The committee decided that the fixed 30-day revocation period should also be
changed to fit the purjwse of preventing the operation of an uninsured vehicle. Once a
person who had a lapse obtains insurance, the risk to others posed by driving without
Page 66
insurance is over. The committee reasoned that the person should then be able to
renew the revoked registration and not wait until the end of the 30-day period. Finally,
the committee decided that the $50 restoration fee can be lowered to $25. The
restoration fee for a drivers license, other than one revoked for driving while impaired,
is $25.
Section 1 of the proposal deletes from G.S. 20-309(e) the current provisions on
the penalties for having a lapse in insurance. It does this because the revised
provisions are incorporated in G.S. 20-311, as rewritten by section 2 of the proposal.
Section 2 revises the insurance penalty provisions as described above and adds
more of the current procedure concerning imposition of the penalty to the statutes.
Section 3 makes a conforming change needed as a result of moving the penalty
provisions from G.S. 20-309 to G.S. 20-311. Section 4 sets the effective date at
January 1, 1996.
Page 67
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
Proposal 8 (95-RWZ-Oll)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Let Dot Sell Ferry Souvenirs. (Public)
Sponsors: Transportation Oversight Committee.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION TO SELL
3 SOUVENIRS ON FERRIES AND AT FERRY FACILITIES.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 136-82 reads as rewritten:
6 "S 136-82. Department of Transportation to establish and
7 maintain ferries.
8 The Department of Transportation is vested with authority to
9 provide for the establishment and maintenance of ferries
10 connecting the parts of the State highway system, whenever in its
11 discretion the public good may so require, and to prescribe and
12 collect such tolls therefor as may, in the discretion of the
13 Department of Transportation, be expedient.
14 To accomplish the purpose of this section said Department of
15 Transportation is authorized to acquire, own, lease, charter or
16 otherwise control all necessary vessels, boats, terminals or
17 other facilities required for the proper operation of such
18 ferries or to enter into contracts with persons, firms or
19 corporations for the operation thereof and to pay therefor such
20 reasonable sums as may in the opinion of said Department of
21 Transportation represent the fair value of the public service
22 rendered.
23 To provid e for th e comfort and convoni e nco of the paccong e rc on
24 th e f e rri e s e etablichod and maintained pursuant to this coction,
95-RWZ-Oll Page 68
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 ^t»e The Department of Transportation, notwithstanding any other
2 provision of law, may operate, or contract for the operation of,
3 concessions on the ferries and at ferry facilities to provide to
4 passengers on the ferries food, drink, and other refreshments,
5 «tA4 personal comfort it e ms — feo*^ — thos e — paccongorc . items, and
6 souvenirs publicizing the ferry system. "
7 Sec. 2. This act becomes effective July 1, 1995.
• • • EXPLANATION • • •
This proposed amends G.S. 136-82 to allow DOT to sell or contract for the sale of souvenirs publicizing the
ferry system on ferries and at ferry facilities.
Paae 69 95-RWZ-Oll
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
Proposal 9 (95-RWZ-Oll)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Let Dot Dredge For Local Gov't. (Public)
Sponsors: Transportation Oversight Committee.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION TO PERFORM
3 DREDGING SERVICES FOR UNITS OF LOCAL GOVERNMENT.
4 The General Assembly of North Carolina enacts:
5 Section 1. Article 6 of Chapter 136 of the General
6 Statutes is amended by adding a new section to read:
7 " 5 136-82.3. Authority to perform dredging services.
8 The Department of Transportation may perform dredging services,
9 on a cost-reimbursement basis, for a unit of local government if
10 the unit cannot obtain the services from a private company at a
11 cost that the unit can afford. A unit of local government is
12 considered to be unable to obtain dredging services at a cost it
13 can afford if it solicits bids for the dredging services in
14 accordance with Article 8 of Chapter 143 of the General Statutes
15 and does not receive a responsible bid to perform the services
16 for the amount of funds available to the unit to pay for the
17 services. "
18 Sec. 2. G.S. 66-58(c) is amended by adding a new
19 subdivision to read:
20 " (16) The performance by the Department of
21 Transportation of dredging services for a unit
22 of local government. "
23 Sec. 3. This act becomes effective July 1, 1995.
95-RWZ-OlO Paoe 70
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
* * • Explanation * • •
litis proposal amends G.S. 66-58 (restriaions on government business activity) and adds new G.S. 136-82.2
to allow the Department of Transportation to perform dredging services on a cost reimbursement basis for local
governments.
Paae 71 95-RWZ-OlO
GENERAL ASSEMBLY OF HORTH CAROLINA
SESSION 1995
S or H
Proposal 10 (95-RWZ-002)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: License Photos Confidential. (Public)
Sponsors: Transportation Oversight Conunittee.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE CONFIDENTIAL ALL PHOTOGRAPHIC IMAGES RECORDED BY
3 THE DIVISION OF MOTOR VEHICLES FOR DRIVERS LICENSES.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-43(a) reads as rewritten:
6 "(a) All records of the Division, other than those declared by
7 law to be confidential for the use of the Division, shall be open
8 to public inspection during office hours. A photographic image
9 recorded in any format by the Division for a drivers license is
10 confidential and shall not be released except for law enforcement
11 purposes. "
12 Sec. 2. This act is effective upon ratification.
Currently, the Division of Motor Vehicles does not retain a copy of the photographs that appear on drivers
licenses. The Division has proposed the installation of a new photography system for drivers licenses that would
digitally record each applicant 's photograph and retain the image in a computer database. This proposal, which
has not as yet been funded, caused concern among members of the Joint Legislative Transportation Oversight
Committee about misuse of the database and the privacy of those photographed. To address these concerns, the
Committee approved this proposal. It amends the drivers license records law (G.S. 20-43) to make confidential
any photographic image recorded by the Division of Motor Vehicles for drivers licenses. Under this proposal,
images recorded by the Division for drivers licenses could only be released for law enforcement purposes.
95-RWZ-002 Paqe 72
SUBCOMMITEE
REPORTS
SUBCOMMITTEES
The Chairmen of the Transportation Oversight Committee appointed
a new subcommittee and continued one subcommittee to deliberate on
issues and bring back recommendations to the full Committee. The
subcommittees and their membership are as follows:
INMATE LABOR
Representative Bob Hunter, Chair
Representative Mary McAllister
Senator Jim Speed
Senator Paul Smith
MOTOR FUEL TAX EVASION
Representative John McLaughlin, Chair
Representative Ed Bowen
Senator Paul Smith
76
REPORT FROM THE SUBCOMMITTEE ON THE USE OF
INMATE LABOR IN ROAD SQUADS
This subcommittee made eleven recommendations to the General
Assembly and to the Departments of Correction and Transportation
in the Spring of 1994. The subcommittee continued its work in the
fall to follow-up on these recommendations.
COMMITTEE PROCEEDINGS
November 2, 1994 Meeting
The subcommittee reviewed the actions taken by the
Departments of Correction and Transportation since the group's
recommendations were published in April. The committee
recommendations and the department actions are summarized below:
1 ) Recommend that the Departments of Transportation and
Correction review all of their procedures to maximize
the use of road squad inmate labor without imperiling
the public. Assign a lead staff person to oversee,
coordinate and evaluate procedures to ensure that the
greatest number of inmates are assigned to road squads.
Response: Lead staff persons are Frank Pace for the
Department of Transportation (DOT) and Boyd Bennett for
the Department of Correction (DOC). DOT reports that
the numbers of medium custody inmates increased from 736
to 784 in 1993-94. The medium custody inmate utili-
zation increased from 47.5% to 59.6% in 1993-94. This
means the inmates worked 59.6% of the days they were
paid to work. DOC receives an appropriation for medium
custody workers whether they show up at DOT or not.
2 ) Recommend that at each road squad unit a labor pool be
created. This would allow for the replacement of
inmates who are not available on a particular day,
thereby assuring an ample pool of eligible inmates. In
addition, it is recommended that DOC develop a procedure
to make relief officers available when needed for road
squads .
Response: Labor pools have been created at prisons that
have had difficulties in meeting road squad quotas. DOC
has been unable to develop a procedure to make relief
officers available because it has not received an
appropriation for additional staff. When possible,
correctional officers are assigned to the road squad to
replace an absent officer. ,
78
3 ) Recommend that inmates who meet the criteria for road
squad assignment be assigned to units with road squads,
and the DOC review their need for road squads, by unit,
in order to assign as many eligible inmates to road
squad units as possible.
Response: This is an ongoing process for the Division
of Prisons.
4 ) Recommend placing more minimum custody inmates on road
squads, including using 14 man crews under DOC
supervision.
Response: A new work program called the Community Work
Program will have 41 crews at 13 sites across the state.
The crews will be supervised by a correctional officer
and will work for cities, counties and other
governmental agencies. DOT will not be the primary
focus of these crews, but will receive some man-hours of
labor.
5 ) Recommend that DOC construct additional day room space
onto existing barracks.
Response: No action
6 ) Recommend that DOC funding be based on the actual number
of labor days for both minimum and medium custody
inmates .
Response: No action â–
7) Recommend that DOC comply with the requirements of G.S.
148-26.5 and compute the annual cost of the inmate labor
road squad program, and report these costs to the Joint
Legislative Transportation Oversight Committee. The
Fiscal Research Division will work with the department
in preparing a format for computing the actual costs of
operating the inmate road squads.
Response: No action.
79
8 ) Recommend DOC review its practice of prohibiting the use
of inmates with serious assaultive crimes against
persons until they are within 6 months of being eligible
for minimum custody. A recommendation is that DOC
consider changing the 6 month time frame to one year and
2 years for all others.
Response: The Division of Prisons is revising its
policy to allow assaultive inmates on road squads when
they are within 12 months of being eligible for minimum
custody.
9 ) Recommend that DOT identify employees of the DOT and
inmates on road squads by means of signs and appropriate
apparel, or other ways of identifying work crews on our
highways and roads.
Response: DOT is using "Inmates Working" signs for
medium custody crews. 2,000 safety vests with INMATE
printed in four inch block letters have been issued.
10) Recommend that the departments use more inmates to paint
guard rails and eradicate weeds and shrubs around guard
rails and road signs. Recommend that DOC review their
policy of not allowing medium custody inmates to use
chain saws.
Response: DOT has directed their personnel to make
these assignments part of the inmate program. Chain
saws are still not allowed by DOC.
1 1 ) Require both departments to report quarterly to the
Joint Legislative Transportation Oversight Committee on
the status of their efforts to comply with the
recommendations of the subcommittee and full committee.
The Fiscal Research Division staff will make
recommendations on reporting requirements to the
departments .
Response: Both departments have reported.
January 11, 1995 Meeting
The Department of Correction (DOC) provided answers to several
questions raised by the subcommittee at its meeting on November 2.
- DOC is considering a new health grading program that would
increase the number of health grades from 3 to 4 . Those inmates
with minor health problems now graded B and not allowed to work on
a road squad, would be given a grade that recognizes their health
limitations but still permits them to work.
80
- DOC will add 35 medium security road squads with 420 inmates by
June 1995. The inmates are housed in 9 prison units in the
Piedmont and Eastern regions of the state. This increase will push
the cost of the medium custody road squads to $10.7 million from
its current budget of $6.1 million. DOT pays $4.6 million from the
Highway Fund for its share of the program cost.
- DOC gave the committee copies of the inmate assignment file
summaries for 1993 and 1994 (see attached). The number of inmates
assigned to work detail rose from 14,886 in 1993 to 15,988 in
1994.
- DOC has produced a brochure on the inmate labor program, and has
written numerous news releases that have been carried in papers
across the state. The Subcommittee was given a packet of articles
written on working inmates. Rep. Hunter asked that legislative
staff work with DOC in publicizing the inmate labor program.
- DOC will re-evaluate the number of inmates assigned to road
squads once several lawsuits are settled.
- DOC reported that in December, only 4% of the days were not
worked due to the lack of an officer being available.
81
NORTH CAROLINA DEPARTMENT OF CORRECTION
DIVISION OF PRISONS
Assignment FUe Summary
11-1-93 12-15-94
INMATE ASSIGNMENTS
1.
On-Unit Assignments (Food Servi(
Maintenance, etc.)
2.
Off-Site Assignments (State/Local
Gov., etc.)
3.
Road Squads
4.
Enterprise
5.
Work Release Program
6.
Education Related Programs
7.
Substance Abuse Programs
8.
Construction
4,577
4,892
552
542
1,554
1,616
1,758
1,848
1,068
1,088
4,117
3,742
258
257
118
56
Other Program Assignments
(Vocational Rehabilitation, etc.)
884
,947
INMATES UNAVAILABLE FOR ASSIGNMENT
New Admissions
Administrative Segregation
Disciplinary Segregation
Intensive Management
Protective Custody
Health Service (Mental Health,
Inpatient, etc.)
14,886
365
15,988
64
1,283
835
757
232
418
1,739
1,345
93
69
339
3,328
4,21]
INMATES UNASSIGNED
Unassigned (Out-to-Court, Off-Site
Hospital, etc.)
Assignment Pending (New Arrivals, Waiting
Transfer, etc.)
523
2.970
559
2,005
Population Count on November 1, 1993
Population Count on December 15, 1994
21,707
22,763
82
FUEL TAX EVASION
SUBCOMMITTEE REPORT
The Fuel Tax Evasion Subcommitee was appointed to review
the Department of Transportation's proposed expenditures for
improved detection and enforcement of motor fuel tax law evasion
in North Carolina. Representative John McLaughlin was chairman
of the subcommittee, and Representative Ed Bowen and Senator
Paul Smith were members. The subcommittee met once on October
20, 1994.
Section 14 of Chapter 754 of the 1993 Session Laws (Regular
Session 1994) authorizes the Secretary of the Department of
Transportation to expend funds within its existing budget for
the 1994-95 fiscal year to "expand efforts that encourage
compliance with fuel tax laws." The authorizing legislation
required the Department to provide the Joint Legislative
Transportation Oversight Committee with an itemized list of
planned expenditures for their review prior to implementation.
The Department established a $2 million reserve for
FY1994-95 from surplus revenues available after the close of the
1993-94 fiscal year. With the cooperation of tax administrators
from the Department of Revenue and officers in the Enforcement
Section of the Division of Motor Vehicles, the Department of
Transportation developed a comprehensive Fuel Tax Compliance
Plan that was submitted to the Joint Legislative Transportation
Oversight Committee on October 5, 1994. The committee appointed
a subcommittee to study the plan and formulate recommendations
for action that would be considered at the committee's November
meeting.
The Department of Transportation chose to address the fuel
tax evasion problem with an eight-year plan that has three
phases: near-term, intermediate and long-term. A summary of the
expenditures and objectives of each phase are provided on the
following page. Cumulative multiyear cost projections were
estimated by the Department at $23.6 million, which also
estimated an eventual increase of annual fuel tax revenues of
$40 million.
The subcommittee heard an explanation of the Plan from the
Department of Transportation. Staff then presented an itemized
list of the expenditures in the Plan as well as the following
findings:
1. Expenditures beyond fiscal year 1994-95 are outside the
scope of the authorizing law and expenditures in future
years need to be addressed by the House and Senate
Appropriations Committees in the budgets for those years.
84
2. The Plan's major focus is more effective enforcement
of fuel tax laws among interstate motor carriers. The exchange
of data between Division of Motor Vehicles Enforcement and the
Department of Revenue is critical for this effort to succeed.
Expenditures necessary to accomplish this exchange are:
(a) Three additional management information systems
positions in the Department of Revenue.
(b) Funds for Lockheed contracts to move the motor fuel
taxpayer database from the management of the Lockheed
Corporation to the Department of Revenue.
(c) Consultant fees in the Department of Transportation to
build the inter-agency data exchange network.
(d) The purchase of 150 cellular phones for Division of
Motor Vehicles enforcement vehicles.
3. All other expenditures in the Plan presented to the
Transportation Oversight Committee are non-essential
expenditures for the 1994-95 fiscal year and should be brought
before the Senate and House Appropriations committees when the
General Assembly convenes in 1995.
Subcommittee staff then presented an alternative
expenditure plan based on the previous findings. After a period
of discussion, the subcommittee adopted the alternative plan.
85
THE FUEL TAX COMPLIANCE PLAN
BACKGROUND
House Bill 1843, enacted during the 1994 Session, authorized the Department of
Transportation to expend funds within their existing budget for the 1994-95 fiscal year to
'exptand efforts that encourage compliance with fuel tax laws'. These expenditures must
be itemized and provided to the Transportation Oversight Ck)mmittee and members of the
House and Senate Appropriations committees for review before DOT can make those
expenditures.
At the end of the last fiscal j^ear, DOT set aside a $2 million one-time reserve for this
purpose. A reserve, by definition, consists of non-recurring dollars.
The Fuel Tax Compliance Plan developed by DOT, with the help of the Motor Fuels Tax
Division of the Department of Revenue, goes beyond the one-jrear authorization of expen-
ditures provided for in HB 1843. Their plan is an eight-year plan that takes place in three
phases.
NEAR TERM PHASE
The first phase will start immediately and will be completed in 15 months. Estimated
expenditures are $3.1 million for this period, and cumulative expenditures over the life of
the eight-year plan are $13.9 million.
NCDOT expenditures consist of: > ' .
A Hiring 6 permanent employees in the MIS Division: $347,508 (full fiscal year
cost)
B. 10,400 hours of consultant time at $50/hour
C. 11 personal computers for use by the 6 additional DOT employees and the
consultants
D. $6000/month rent for additional space to house the computers, new DOT per-
sonnel, and consultants
E. Purchase of 300 cellular telephones to put in all DMV Enforcement Section
vehicles
F. Cellular network service contract of $150,000 per year to service the 300 cellular
phones
G. Additional SIPS mainframe charges of $240,000/year
H. A one-time consultant fee of $125,000 to transfer NC's motor fuel taxpayer
database from the Lockheed Corporation to the Department of Revenue
I. $100,000 for DOT to advertise the enhanced enforcement efforts
J. Additional expenses of $33,000 for training of personnel and maintenance of the
new data processing equipment
The Department of Revenue's estimated expenditures consist of:
A Hiring of 10 permanent employees in the Motor Fuels Tax Division at $461,112
(full FY cost)
B. $380,500 in additional data processing equipment
C. Additional office space rental at $1,350/month
D. Additional expenses totaling $38,756 in new employee support (travel, utilities,
telephone and postage) plus a one-time office furniture expense of $6000
86
The goal of the first phase of the eight-year plan is to develop a database system of motor
carrier activity that can be accessed by DMV enforcement personnel. From weigh station
terminals and from cellular telephones in enforcement vehicles, DMV will check on the
status of a motor carrier account for both fuel tax and DMV violations. If found to be
delinquent, the tax can be collected or the truck can be detained. In addition, motor
carriers will be expected to provide certain information to DMV personnel at all weigh
stations, such as estimates of miles driven in North Carolina and amounts of fuel pur-
chased in the state. Data collection and data entry at this phase are manual. The
Department of Revenue will cross-check this data with their fuel tax accounts. They'll be
looking for DMV reports on truckers who consistently report no fuel tax mileage in North
Carolina.
INTERMEDIATE PHASE
The intermediate phase will start in early 1996 and be completed in 1999. Estimated
expenditures during this period are $4.5 million, and total expenditures are $5.6 million.
In general, expenditures here consist of buying personal computers for DMV enforcement
vehicles and beginning the modernization of the entire computer system in the enforce-
ment section of the Division of Motor Vehicles. The software in several sections, such as
Motor Carrier Safety and Overweight Penalties, will be rewritten. Major expenses during
this phase are consultant costs of $3.1 million and vehicular PC purchases of $900,000,
plus some rental expenses of additional floor space.
LONG TERM PHASE
The long-term phase begins in 1999 and is completed in 2001. Estimated expenditures in
this period are $4.1 million.
Expenditures in this phase consist of establishing a state IVHS (Intelligent Vehicle
Highway System). A detailed expenditure list will be developed in future years after a
national committee recommends a list of standards for all states to incorporate in their
programs. Anticipated recommendations are utilizing transponders or bar codes on trucks
to collect identifying data electronically while the trucks are in motion. The Department of
Revenue also intends to establish an electronic funds transfer prc^am for motor carriers
to pay their quarterly fuel tax pwyments.
MANDATED
REPORTS
MANDATED REPORTS
The Department of Transportation has submitted to the
Transportation Oversight Committee all reports either mandated by
the General Assembly or requested by the Committee members and
staff. The key findings and recommendations of each report are
summarized below.
EMISSIONS INSPECTION PROGRAM - QUARTERLY REPORT
The effective date for the new state emission law was
October 1, 1994. The new law was designed to place
North Carolina in compliance with EPA regulations on
inspection and maintenance (I/M) programs as required by
the Clean Air Act. DMV reports an I/M budget of
$2,031,586 in 1994-95. The new law places these funds
in a dedicated nonreverting fund. There are 28 Emission
inspectors that cover 1,281 stations in 19 counties.
The new law creates additional audits for the staff to
perform. The law also requires computer matching of
emissions inspection records with registration
information. This computer matching system will not be
ready until March 1995.
RESERVE FUNDS
The General Assembly estimated that the 1993-94 credit
balance in the Highway Fund would be $4 0.5 million due
to reversions and revenue in excess of estimates. The
actual credit balance for last fiscal year came in at
$54,963,878.87. The $14,463,878 in unanticipated
revenue was placed into the following reserves:
Aid to Municipalities $737,081.00
Secondary Road Construction 737,081.00
Uncollectible Accounts ^ 57,490.06
Operations Administration^ ' _ 1,054,991.00
Increased Subsistence Allowance^ ' 200,000.00
Emergencies/Public Access Roads 2,000,000.00
Highway Maintenance 9,677,235.81
$14,463,878.87
(1) Includes $4 00,000 to match federal grant on motor
carriers and $580,000 for DMV telephones.
(2) General Assembly increased subsistence rates, but failed
to increase Highway Fund budget.
90
SMALL BUSINESS ENTERPRISE PROGRAM - QUARTERLY REPORT
The first projects in this program were let to contract
in February, 1994. From February to October 1994, 496
projects were awarded to small businesses totaling $8.9
million. Of this amount, 9% went to minority owned
businesses and 23% went to women owned businesses.
CARAT UPDATE
The Congestion Avoidance and Reduction for Autos and
Trucks (CARAT) program was initiated in 1992 in the
Charlotte urban area. This project will utilize traffic
management technologies to reduce congestion on 1-77.
To date, DOT has written a CARAT proposal and area-wide
plan, prepared contract documents, started a Motorist
Assistance Patrol, obtained variable message signs and
highway advisory radio, and upgraded alternate routes.
RIGHT-OF-WAY MOWING CONTRACTS
DOT began contract mowing in 1986 and now 70% of all
road miles are mowed by contractors. In 1994, 92
counties used private mowers under a 1, 2, or 3 year
contract. The overall performance by these contractors
was good.
In 1993, the cost per shoulder mile for mowing by state
forces was $25.19, while the cost per mile for
contractors was $23.56. 22 contractors do the state's
mowing with Dixie Lawn Service controlling contracts for
32 counties.
ADOPT-A-HIGHWAY PROGRAM
This report reviewed the legal issues relating to the
use of contract services to clean the roadsides under
the Adopt-a-highway program. Department of Justice
attorneys argue that the firm contracting out its
roadside cleanup could be violating 1) the law against
advertising on highway right-of-way, 2) the Umstead Act
by competing with the private billboard industry, and 3)
state purchasing laws that authorize the Secretary of
Administration to contract for services. The Department
of Justice says contracting out could be a violation of
the law, but does not definitively state that it is a
violation. If the General Assembly is interested in
allowing businesses to contract out their roadside
cleanup duties for Adopt-a-highway, then the Departments
of Justice and Transportation suggests legislation be
approved for that purpose. There is currently no statute
91
authorizing the Adopt-a-highway program. DOT is opposed
to the commercialization of this program.
92
APPENDIX
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SARH-JO-r^ia-lOQ/DN
JOINT LEGISLATIVE
TRANSPORTATION OVERSIGHT
COMMITTEE
REPORT TO THE
1995 GENERAL ASSEMBLY
OF NORTH CAROLINA
1996 REGULAR SESSION
A UMITED NUMBER OF COPIES OF THIS REPORT IS AVAILABLE
FOR DISTRIBUTION THROUGH THE LEGISLATIVE LIBRARY.
ROOMS 2126, 2226
STATE LEGISLATIVE BUILDING
RALEIGH, NORTH CAROUNA 27611
TELEPHONE: (919) 733-7778
OR
ROOM 500
LEGISLATIVE OFFICE BUILDING
RALEIGH, NORTH CAROUNA 27603-5925
TELEPHONE: (919) 733-9390
TABLE OF CONTENTS
LETTER OF TRANSMITTAL i
COMMITTEE MEMBERSHIP ii
PREFACE iii
COMMITTEE PROCEEDINGS 1
RECOMMENDATIONS 5
1. AN ACT TO EXPEDITE DISPOSAL OF UNCLAIMED VEHICLES BY
TOWING AND STORAGE BUSINESSES 5
2. AN ACT TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION TO
ESTABUSH SPEED UMITS UP TO SEVENTY MILES PER HOUR ON
CONTROLLED ACCESS HIGHWAYS 12
3. AN ACT TO ALLOW UTIUTY POLES CARRIED ON SIDE-LOADERS TO
EXTEND MORE THAN THREE FEET BEYOND THE FRONT BUMPER OF
THE VEHICLE 18
4. AN ACT TO PROHIBIT VEHICLE TOWING OF PERSONS ON SLEDS OR
SIMILAR DEVICES /. 22
5. AN ACT TO EUMINATE THE ONE DOLLAR FEE FOR MAIL-IN VEHICLE
REGISTRATION 24
6. AN ACT TO ALLOW COUNTIES TO ELECTRONICALLY REMOVE A
VEHICLE REGISTRATION TAX BLOCK UPON FULL PAYMENT OF
PROPERTY TAXES 27
7. AN ACT TO DELETE THE UNNECESSARY "L" ENDORSEMENT FOR A
COMMERCIAL DRIVERS UCENSE 29
8. AN ACT TO ESTABUSH A STANDARD TIME PERIOD OF 60 DAYS IN
WHICH TO OBTAIN OR CHANGE A DRIVERS UCENSE, A SPECIAL
IDENTIFICATION CARD, OR A VEHICLE REGISTRATION 32
9. AN ACT TO ALLOW THE DIVISION OF MOTOR VEHICLES TO USE
DIFFERENT COLOR BORDERS TO DISTINGUISH THE AGE OF UCENSE
HOLDERS, THEREBY MAKING IT EASIER TO ISSUE DUPUCATE
UCENSES BY MAIL WHEN THE PHOTOGRAPH ON THE ORIGINAL
UCENSE IS A DIGITIZED IMAGE 40
10. AN ACT TO CONFORM THE MOTOR VEHICLE LAWS TO THE FEDERAL
DEREGULATION OF TRUCKING AND TO MAKE TECHNICAL CHANGES
TO THE MOTOR VEHICLE LAW 43
11. AN ACT TO REQUIRE ALL VEHICLE REGISTRATION OFFICES OF THE
DIVISION OF MOTOR VEHICLES TO BE OPER^.TED BY A CONTRACT
AGENT 76
SUMMARY OF MANDATED REPORTS 79
May 1, 1996
TO THE MEMBERS OF THE 1995 GENERAL ASSEMBLY (REGULAR SESSION
1996):
The Joint Legislative Transportation Oversight Committee submits its annual
report to you for your consideration. The report was prepared by the Committee
pursuant to G.S. 120-70.5 1(a).
Respectfully submitted.
Z-^^:-^^^-^^^^
Rep. Joanne Bowie <~^ Senator David Hoyle //
Co-chair Co-chair ^
Joint Legislative Transportation Oversight Committee
JOINT LEGISLATIVE TRANSPORTATION OVERSIGHT COMMITTEE
MEMBERSHIP
1995 - 1996
President Pro Tempore Appointments
Speaker's Appointments
Sen. David W
PC Box 2494
Gastonia, NC 28053
(704)867-0822
Hoyle, Cochair
Rep. Joanne W. Bowie, Cochair
106 Nut Bush Drive East
Greensboro, NC 27410
(910)294-2587
Sen. Wib GuUey
4803 Montvale Drive
Durham, NC 27705
(919)419-4447
Rep. Bobby H. Barbee, Sr.
PC Box 700
Locust, NC 28097
(704)888-4423
Sen. Hamilton C. Horton, Jr.
324 North Spring Street
Winston-Salem, NC 27101
(910)773-1324
Rep. Edward C. Bowen
Route 1, Box 289
HarreUs, NC 28444
(910)532-4183
Sen. John H. Kerr, 111
PO Box 1616
Goldsboro, NC 27533
(919)734-1841
Rep. James W. Crawford, Jr.
509 CoUege St.
Oxford, NC 27565
(919)693-6119
Sen. R.L. "Bob" Martin
PO Box 387
Bethel, NC 27812
(919)825-4361
Rep. George M. Holmes
3927 West Old Hwy 421
Hamptonville, NC 27020
(910)468-2401
Sen. Anthony E. Rand
2008 Utho Place
Fayetteville, NC 28304
(800)682-7971
Rep. John B. McLaughlin
PO Box 158
Newell, NC 28126
(704)596-0845
Sen. Paul S. Smith
POBox 916
Salisbury, NC 28145
(704)633-9463
Rep. W. Edwin McMahan
5815 Westpark Drive
Charlotte, NC 28217
(704)561-3402
Sen. James D. Speed
Route 6, Box 542
Louisburg, NC 27549
(919)853-2167
Rep. David Miner
PO Box 500
HoUy Springs, NC 27540
(919)552-2311
Staff:
Mr. Gregory Bems
Ms. Sabra Faires
Mr. Karl Knapp
Fiscal Research Division
(919) 733-4910
Clerk:
Ms. Sharon Gaudette
(919) 733-5853
Mr. Giles Perry
Research Division
(919) 733-2578
PREFACE
The Joint Legislative Transportation Oversight Committee was established in 1989
by Article 12E of Chapter 120 of the General Statutes. The Committee was formed in
conjunction with the creation of the Highway Trust Fund. The Committee consists of
eight members of the Senate appointed by the President Pro Tempore of the Senate and
eight members of the House of Representatives appointed by the Speaker of the House
of Representatives. Members serve two-year terms.
The Committee's oversight powers are broad, as quoted from G.S. 120-70.5 1(a):
~ Review reports prepared by the Department of Transportation or any
other agency of State government related, in any marmer, to
transportation, when those reports are required by law.
— Monitor the funds deposited in and expenditures from the North
Carolina Highway Trust Fund, the Highway Fund, the General Fund,
or any other fund, when those expenditures are related, in any
marmer, to transportation.
~ Determine whether funds related, in any manner, to transportation are
being spent in accordance with law.
Determine whether any revisions are needed in the funding for a
program for which funds in the Trust Fund, the Highway Fund, the
General Fund, or any other fund when those expenditures are related,
in any marmer, to transportation may be used, including revisions
needed to meet any statutory timetable or program.
— Report to the General Assembly at the beginning of each regular
session concerning its determination of needed changes in the funding
or operation of programs related, n any maimer, to transportation.
COMMITTEE
PROCEEDINGS
Following the 1995 Session of the General Assembly, the Joint Legislative
Transportation Oversight Committee met seven times from October 1995 to May 1996.
The Committee examined a variety of topics which are briefly summarized below.
October 10, 1995
The first meeting of the Committee following the 1995 Session was held on
October 10, 1995 at 10:00 a.m. in room 544 of the Legislative Office Building. The
Committee first heard a presentation by DOT Secretary Garland Garrett, who
introduced DOT Division Directors and offered his assistance to the Committee. The
Committee then heard a review of action taken during the 1995 session on the
committee's recommendations and a summary of other transportation issues considered
during the 1995 session. The Committee then moved to the topic of hazardous waste
contamination at seventy-two asphalt plant sites around the state. Following this
discussion, Grayson Kelley of the Attorney General's Office outlined the impact of
recent Supreme Court decisions on DOT's minority goals program.
November 1, 1995
The Committee's second fall meeting was held November 1, 1995 at Forsyth
Technical College in Winston-Salem. The Committee heard from the Mayors of
Winston-Salem and Greensboro, a member of the Forsyth Board of Commissioners, and
concerned citizens on the area's transportation needs. Conmiittee staff then presented a
comparison of the North Carolina and Virginia DMV and heard from a Virginia DMV
official. Following this presentation, the Committee received comments from the
towing industry in support of House BiU 853, Motor vehicle towing modifications.
Committee staff then reported on fuel tax exemptions for community colleges. DOT
presented reports on General Services consolidation, and the maintenance backlog.
Finally, Committee staff updated progress on the Highway Fund/Highway Trust Fund
financial model.
December 6, 1995
The third meeting of the Committee was held December 6, 1995 in room 544 of
the Legislative Office Building. The Committee first heard a staff presentation on
funding of state-assisted visitor centers. Representatives of visitor centers in western
and northeastern North Carolina spoke about the services offered by their respective
facilities. DOT presented reports on renovations to the Raleigh District Drive facility,
and on consolidation of DOT General Services. Next, the Committee heard from a
citizen of Valle Crusis about the design of a new bridge in that area and his concerns
about public input in the DOT decision making process. Staff reviewed federal and
state public participation requirements, and DOT explained their public participation
process. The Committee then continued its discussion of the asphalt plant clean-up
issue. Finally, the Committee received a staff report on motor vehicle towing and
storage and requested a bill draft for consideration at the next meeting.
January 31, 1996
The Committee met on January 31, 1996 at 10:00 a.m. in room 544 of the
Legislative Office Building. The Committee first discussed Committee staff changes,
and then received a staff report on the National Highway System Bill. Next, the
Committee discussed and approved a bill to allow DOT to set speed limits up to 70
mph on non-interstate limited access highways. The committee then heard a
background report on the EPA audit of the DMV emissions program. The Committee
then considered and approved a draft bill to expedite disposal of towed and stored
vehicles and a draft bill to allow utility companies to carry poles that extend more than
three feet beyond the front of their vehicles. Committee staff then presented a report on
DMV implementation of the window tinting law changes. The members joined the
State Ports Study Committee in a joint afternoon meeting, which focused on the
transportation needs of the State Ports.
March 6, 1996
The Committee met on March 6, 1996 at the Cone University Center of the
University of North Carolina at Charlotte. In the morning, the Committee heard from
interested parties on proposed legislation to issue bonds to expedite the construction of
urban loops in North Carolina. In the afternoon, the Committee heard a report from
DOT on consolidation of DOT General Services, a report from committee staff on the
motor fleet study, and a report from DOT on the impact of federal budget cuts on
public transit funding in NC. The Committee also received a report on 1-73/74, and
suggestions from DOT for various changes to the statutes requested for the 1996
session. The Committee asked that these suggestions be drafted for consideration at the
next meeting. Finally, the Committee received an update from DOT on road
maintenance costs attributable to the harsh winter.
April 10, 1996
The Committee met on April 10, 1996 at 9:00 a.m. in room 544 of the Legislative
Office BuDding. The committee considered and approved bill drafts on (1) prohibiting
sleds from being pulled behind vehicles; (2) deleting from the statutes the unnecessary
"L" endorsement for commercial drivers Ucenses; (3) establishing a standard time
period of 60 days in which to obtain or change a drivers Ucense, ID card, or
registration; (4) allowing DMV to use different color borders on drivers licenses to
allow duplicate licenses to be issued by mail; (5) allowing counties to elecfronically
remove registration blocks upon payment of property taxes; and (6) eliminating the $1
mail-in vehicle registration fee. The text of these proposals may be found in the
legislative proposal section of this report. The Committee also approved an extension
of the Highway fund/Highway trust fund financial model contract, decided to take no
further action on proposed changes to Motor fleet management of DOT vehicles, and
heard an update on DOT's accounting system project. Next, the committee received
the annual report of the triangle transit authority, and a report from Duke graduate
students on the best source of funding for the mid-Currituck County bridge. The
committee also received a DMV report on motor vehicle registration cost comparisons.
the impact of the Federal Privacy Act on DMV, and "STARS", the new vehicle titling
and registration computer system. The committee received a bill to conform NC law to
the federal deregulation of trucking and a DMV report on mail-in vehicle registration.
May 1, 1996
The Committee met on May 1, 1996 at 9:00 a.m. in Room 1228 of the Legislative
Building. The Committee considered and approved legislation concerning privatization
of DMV Offices in Raleigh and Charlotte, and conforming North Carolina law to the
recent federal law changes governing intrastate motor carriers. In addition, the
Committee heard reports on implementation of the dealer plate law, the visitor center
funding subcommittee, and the Highway Fund/Highway Trust Fund financial model.
The Committee also reviewed and approved this report for transmittal to the 1996
Regular Session of the 1995 General Assembly.
RECOMMENDATIONS
&
LEGISLATIVE PROPOSALS
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
LEGISLATIVE PROPOSAL 1
96-RWZ-004A
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Expedite Towed Vehicle Disposal. (Public)
Sponsors:
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO EXPEDITE DISPOSAL OF UNCLAIMED VEHICLES BY TOWING AND
3 STORAGE BUSINESSES.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-77 (d) reads as rewritten:
6 "(d) An operator of a place of business for garaging,
7 repairing, parking or storing vehicles for the public in which a
8 vehicle remains unclaimed for 30 daySj 10 days, or the landowners
9 upon whose property a motor vehicle has been abandoned for more
10 than 40 — days, 30 days, shall, within five days after the
11 expiration of that period, report the vehicle as unclaimed to the
12 Division. Failure to make such report shall constitute a Class 3
13 misdemeanor.
14 Any vehicle which remains unclaimed after report is made to the
15 Division may be sold by such operator or landowner in accordance
16 with the provisions relating to the enforcement of liens and the
17 application of proceeds of sale of Article 1 of Chapter 44A."
18 Sec. 2. G.S. 44A-4(a) reads as rewritten:
19 "(a) Enforcement by Sale. — If the charges for which the lien
20 is claimed under this Article remain unpaid or unsatisfied for 30
21 days days or, in the case of towing and storage charges on a
96-RWZ-004A Page 5
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 motor vehicle / 10 days following the maturity of the obligation
2 to pay any such charges, the lienor may enforce the lien by
3 public or private sale as provided in this section. The lienor
4 may bring an action on the debt in any court of competent
5 jurisdiction at any time following maturity of the obligation.
6 Failure of the lienor to bring such action within a 180-day
7 period following the commencement of storage shall constitute a
8 waiver of any right to collect storage charges which accrue after
9 such period. Provided that when property is placed in storage
10 pursuant to an express contract of storage, the lien shall
11 continue and the lienor may bring an action to collect storage
12 charges and enforce his lien at any time within 120 days
13 following default on the obligation to pay storage charges.
14 The owner or person with whom the lienor dealt may at any time
15 following the maturity of the obligation bring an action in any
16 court of competent jurisdiction as by law provided. If in any
17 such action the owner or other party requests immediate
18 possession of the property and pays the amount of the lien
19 asserted into the clerk of the court in which such action is
20 pending, the clerk shall issue an order to the lienor to
21 relinquish possession of the property to the owner or other
22 party. The request for immediate possession may be made in the
2 3 complaint, which shall also set forth the amount of the asserted
24 lien and the portion thereof which is not in dispute, if any. If
25 within three days after service of the summons and complaint, as
26 the number of days is computed in G.S. lA-1, Rule 6, the lienor
27 does not file a contrary statement of the amount of the lien at
2 8 the time of the filing of the complaint, the amount set forth in
29 the complaint shall be deemed to be the amount of the asserted
30 lien. The clerk may at any time disburse to the lienor that
31 portion of the cash bond, which the plaintiff says in his
32 complaint is not in dispute, upon application of the lienor. The
33 magistrate or judge shall direct appropriate disbursement of the
34 disputed or undisbursed portion of the bond in the judgment of
35 the court. In the event an action by the owner pursuant to this
36 section is heard in district or superior court, the substantially
37 prevailing party in such court may be awarded a reasonable
38 attorney's fee in the discretion of the judge."
39 Sec. 3. G.S. 44A-4(b)(l) reads as rewritten:
Page 6 96-RWZ-004A
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 "(1) If the property upon which the lien is claimed is a
2 motor vehicle that is required to be registered,
3 the lienor following the expiration of the 30-day
4 period provided by subsection (a) shall give notice
5 to the Division of Motor Vehicles that a lien is
6 asserted and sale is proposed and shall remit to
7 the Division a fee of ten dollars ($10.00). The
8 Division of Motor Vehicles shall issue notice by
9 registered or certified mail, return receipt
10 requested, within 15 days of receipt of notice from
11 the lienor, to the person having legal title to the
12 property, if reasonably ascertainable, to the
13 person with whom the lienor dealt if different, and
14 to each secured party and other person claiming an
15 interest in the property who is actually known to
16 the Division or who can be reasonably ascertained.
17 The notice shall state that a lien has been
18 asserted against specific property and shall
19 identify the lienor, the date that the lien arose,
20 the general nature of the services performed and
21 materials used or sold for which the lien is
22 asserted, the amount of the lien, and that the
23 lienor intends to sell the property in satisfaction
24 of the lien. The notice shall inform the recipient
25 that the recipient has the right to a judicial
26 hearing at which time a determination will be made
27 as to the validity of the lien prior to a sale
28 taking place. The notice shall further state that
29 the recipient has a period of 10 days from the date
30 of receipt in which to notify the Division by
31 registered or certified mail, return receipt
32 requested, that a hearing is desired and that if
33 the recipient wishes to contest the sale of his
34 property pursuant to such lien, the recipient
35 should notify the Division that a hearing is
36 desired and the Division shall notify lienor. The
37 notice shall state the required information in
38 simplified terms and shall contain a form whereby
39 the recipient may notify the Division that a
40 hearing is desired by the return of such form to
96-RWZ-004A Page 7
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 the Division. Failure of the recipient to notify
2 the Division within 10 days of the receipt of such
3 notice that a hearing is desired shall be deemed a
4 waiver of the right to a hearing prior to the sale
5 of the property against which the lien is asserted,
6 the Division shall notify the lienor, and the
7 lienor may proceed to enforce the lien by public or
8 private sale as provided in this section and the
9 Division shall transfer title to the property
10 pursuant to such sale. If the Division is notified
11 within the 10-day period provided above that a
12 hearing is desired prior to sale, the lien may be
13 enforced by sale as provided in this section and
14 the Division will transfer title only pursuant to
15 the order of a court of competent jurisdiction.
16 If the Division notifies the lienor that the
17 registered or certified mail notice has been
18 returned as undeliverable, the lienor may institute
19 a special proceeding in the county where the
20 vehicle is being held, for authorization to sell
21 that vehicle.
22 If the market value of the vehicle, as
23 determined by the schedule of values adoptd by the
24 Commissioner under G.S. 105-187.3, is less than
25 eight hundred dollars ($800.00) and one of the
26 following applies, the lienor may institute a
27 special proceeding in the county where the vehicle
28 is being held for authorization to sell the
29 vehicle;
30 a. The registered or certified mail notice has
31 been delivered and no hearing was requested.
32 b. The person having legal title to the
33 vehicle, the person with whom the lienor dealt
34 if different, and each secured party or other
35 person claiming an interest in the vehicle
36 cannot be ascertained by the Division.
37 In such a proceeding a lienor may include more
38 than one vehicle, but the proceeds of the sale of
39 each shall be subject only to valid claims against
40 that vehicle, and any excess proceeds of the sale
Page 8 96-RWZ-004A
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 shall escheat to the State and be paid immediately
2 to the treasurer for disposition pursuant to
3 Chapter 116B of the General Statutes. A vehicle
4 owner or possessor claiming an interest in such
5 proceeds shall have a right of action under G.S.
6 116B-38.
7 The application to the clerk in such a special
8 proceeding shall contain the notice of sale
9 information set out in subsection (f) hereof. If
10 the application is in proper form the clerk shall
11 enter an order authorizing the sale on a date not
12 less than 14 days therefrom, and the lienor shall
13 cause the application and order to be sent
14 immediately by first-class mail pursuant to G.S.
15 lA-1, Rule 5, to each person to whom the Division
16 has mailed notice pursuant to this subsection.
17 Following the authorized sale the lienor shall file
18 with the clerk a report in the form of an
19 affidavit, stating that two or more bona fide bids
20 on the vehicle were received, the names, addresses
21 and bids of the bidders, and a statement of the
22 disposition of the sale proceeds. The clerk then
23 shall enter an order directing the Division to
24 transfer title accordingly.
25 If prior to the sale the owner or legal
26 possessor contests the sale or lien in a writing
27 filed with the clerk, the proceeding shall be
28 handled in accordance with G.S. 1-399."
29 Sec. 4. G.S. 44A-4(e) reads as rewritten:
30 "(e) Public Sale. --
31 (1) Not less than 20 days prior to sale by public sale
32 the lienor:
33 a. Shall notify the Commissioner of Motor
34 Vehicles as provided in G.S. 20-114 (c) if the
35 property upon which the lien is claimed is a
36 motor vehicle; and
37 al. Shall cause notice to be mailed to the person
38 having legal title to the property if
39 reasonably ascertainable, to the person with
40 whom the lienor dealt if different, and to
96-RWZ-004A Page 9
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 each secured party or other person claiming an
2 interest in the property who is actually known
3 to the lienor or can be reasonably
4 ascertained, provided that notices provided
5 pursuant to subsection (b) hereof shall be
6 sufficient for these purposes if such notices
7 contain the information required by subsection
8 (f ) hereof; and
9 b. Shall advertise the sale by posting a copy of
10 the notice of sale at the courthouse door in
11 the county where the sale is to be held;
12 and shall publish notice of sale once a week for
13 two consecutive weeks in a newspaper of general
14 circulation in the same county, the date of the
15 last publication being not less than five days
16 prior to the sal e, sale if the vehicle is less than
17 five years old.
18 (2) A public sale must be held on a day other than
19 Sunday and between the hours of 10:00 A.M. and 4:00
20 P.M.:
21 a. In any county where any part of the contract
22 giving rise to the lien was performed, or
23 b. In the county where the obligation secured by
24 the lien was contracted for.
25 (3) A lienor may purchase at public sale."
26 Sec. 5. This act becomes effective October 1, 1996.
Page 10 96-RWZ-004A
Explanation of Legislative Proposal 1
Currently, towing and storage businesses report that it takes six months or longer
to dispose of vehicles towed to their lots that are stored but never claimed. To
expedite this process, the draft bill would:
1. Require report to DMV in 10 days.
Sections 1 and 2 of the draft bUl would require towing/storage businesses to report
unclaimed vehicles, and allow them to begin the process to sell the vehicle to
satisfy the towing/storage lien, after 10 days. Currently, the towing/storage
business waits 30 days, as provided by law, before reporting the vehicle to DMV
and beginning the disposal process. In addition, landowners would have to report
vehicles abandoned on their property after 30 days (now-60).
2. Require DMV to respond to towing business's notice in 15 days.
Section 3 of the draft bill would require DMV to respond to towing/storage
business notices within 15 days of receipt. Under current law, after the towing
business sends in notice to DMV, DMV then sends certified letters to the
registered owner and any lienholders on the vehicle, notifying them of the lien,
and the right to a hearing. DMV is currently 60-90 days behind on responding to
towing/storage business notices.
3. Elxpedite disposal process for certain vehicles valued at less than $800
Section 3 of the bill would authorize the faster Special Proceeding process to be
used for vehicles valued at less that $800, if:
a. Notice by DMV to the registered owner and any lienholders is delivered,
and no one requests a hearing; OR
b. The registered owner and other lienholders cannot be ascertained by
DMV.
4. Eliminate publication notice for older cars before private sale.
Section 4 of the bUl would eliminate the requirement that notice be pubUshed
before public sale of the vehicle unless the vehicle is less than 5 years old. Notice
would still have to be mailed before public sale of older vehicles.
â– 11-
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1996
LEGISLATIVE PROPOSAL 2
96-RWZ-OOlB
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Speed Limits. (Public)
Sponsors:
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION TO ESTABLISH
3 SPEED LIMITS UP TO SEVENTY MILES PER HOUR ON DESIGNATED PARTS
4 OF CONTROLLED ACCESS HIGHWAYS.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 20-141 reads as rewritten:
7 "S 20-141. Speed restrictions.
8 (a) No person shall drive a vehicle on a highway or in a
9 public vehicular area at a speed greater than is reasonable and
10 prudent under the conditions then existing.
11 (b) Except as otherwise provided in this Chapter, it shall be
12 unlawful to operate a vehicle in excess of the following speeds:
13 (1) Thirty-five miles per hour inside municipal
14 corporate limits for all vehicles.
15 (2) Fifty-five miles per hour outside municipal
16 corporate limits for all vehicles v e hicl e s, — e xc e pt
17 on rural Int e rstat e Highways wh e r e th e s p ee d limit
18 ha s b ee n rai se d pur s uant to G . S . — 20-141(d) (2) , — and
19 except for school buses and school activity buses.
96-RWZ-OOlB Page 12
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 (c) Except while towing another vehicle, or when an advisory
2 safe-speed sign indicates a slower speed, or as otherwise
3 provided by law, it shall be unlawful to operate a passenger
4 vehicle upon the interstate and primary highway system at less
5 than the following speeds:
6 (1) Forty miles per hour in a speed zone of 55 miles
7 per hour.
8 (2) Forty-five miles per hour in a speed zone of 60
9 miles per hour or greater.
10 These minimum speeds shall be effective only when appropriate
11 signs are posted indicating the minimum speed.
12 (d) (1) Whenever the Department of Transportation
13 determines on the basis of an engineering and
14 traffic investigation that any speed allowed by
15 subsection (b) is greater than is reasonable and
16 safe under the conditions found to exist upon any
17 part of a highway outside the corporate limits of a
18 municipality or upon any part of a highway
19 designated as part of the Interstate Highway System
20 or oth e r any part of a controlled-access highway
21 (either inside or outside the corporate limits of a
22 municipality), the Department of Transportation
23 shall determine and declare a reasonable and safe
24 speed limit.
25 (2) Whenever the Department of Transportation
26 determines on the basis of an engineering and
27 traffic investigation that a higher maximum speed
28 than those set forth in subsection (b) is
29 reasonable and safe under the conditions found to
30 exist upon any part of a highway designated as part
31 of the Interstate Highway System or oth e r any part
32 of a controlled-access highway (either inside or
33 outside the corporate limits of a municipality) the
34 Department of Transportation shall determine and
35 declare a reasonable and safe speed limit. A speed
36 limit set pursuant to this subsection may not
37 exceed 70 miles per hour. The — D e partm e nt — ©f-
38 Tran s portation — s hall — eet — fehe — B^eed — limit — not — to
39 e xc ee d — that — allow e d — by — applicabl e — F e d e ral — law on
Page 13 96-RWZ-OOlB
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 any part of th e Int e r s tat e Highway Sy s t e m that th e y
2 d ee m to b e s af e.
3 Speed limits set pursuant to this subsection are not effective
4 until appropriate signs giving notice thereof are erected upon
5 the parts of the highway affected.
6 (e) Local authorities, in their respective jurisdictions, may
7 authorize by ordinance higher speeds or lower speeds than those
8 set out in subsection (b) upon all streets which are not part of
9 the State highway system; but no speed so fixed shall authorize a
10 speed in excess of 55 miles per hour. Speed limits set pursuant
11 to this subsection shall be effective when appropriate signs
12 giving notice thereof are erected upon the part of the streets
13 affected.
14 (f) Whenever local authorities within their respective
15 jurisdictions determine upon the basis of an engineering and
16 traffic investigation that a higher maximum speed than those set
17 forth in subsection (b) is reasonable and safe, or that any speed
18 hereinbefore set forth is greater than is reasonable and safe,
19 under the conditions found to exist upon any part of a street
20 within the corporate limits of a municipality and which street is
21 a part of the State highway system (except those highways
22 designated as part of the interstate highway system or other
23 controlled-access highway) said local authorities shall determine
24 and declare a safe and reasonable speed limit. A speed limit set
25 pursuant to this subsection may not exceed 55 miles per hour.
26 Limits set pursuant to this subsection shall become effective
27 when the Department of Transportation has passed a concurring
28 ordinance and signs are erected giving notice of the authorized
29 speed limit.
30 The Department of Transportation is authorized to raise or
31 lower the statutory speed limit on all highways on the State
32 highway system within municipalities which do not have a
33 governing body to enact municipal ordinances as provided by law.
34 The Department of Transportation shall determine a reasonable and
35 safe speed limit in the same manner as is provided in G.S. 20-
36 141(d)(1) and G.S. 20-141(d)(2) for changing the speed limits
37 outside of municipalities, without action of the municipality.
38 (g) Whenever the Department of Transportation or local
39 authorities within their respective jurisdictions determine on
40 the basis of an engineering and traffic investigation that slow
96-RWZ-OOlB ' Page 14
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 speeds on any part of a highway considerably impede the normal
2 and reasonable movement of traffic, the Department of
3 Transportation or such local authority may determine and declare
4 a minimum speed below which no person shall operate a motor
5 vehicle except when necessary for safe operation in compliance
6 with law. Such minimum speed limit shall be effective when
7 appropriate signs giving notice thereof are erected on said part
8 of the highway. Provided, such minimum speed limit shall be
9 effective as to those highways and streets within the corporate
10 limits of a municipality which are on the State highway system
11 only when ordinances adopting the minimum speed limit are passed
12 and concurred in by both the Department of Transportation and the
13 local authorities. The provisions of this subsection shall not
14 apply to farm tractors and other motor vehicles operating at
15 reasonable speeds for the type and nature of such vehicles.
16 (h) No person shall operate a motor vehicle on the highway at
17 such a slow speed as to impede the normal and reasonable movement
18 of traffic except when reduced speed is necessary for safe
19 operation or in compliance with law; provided, this provision
20 shall not apply to farm tractors and other motor vehicles
21 operating at reasonable speeds for the type and nature of such
22 vehicles.
2 3 -(-jr^ Th e D e partm e nt of Transportation s hall hav e authority to
24 d es ignat e and appropriat e ly mark c e rtain highway s of th e Stat e as
25 truck rout e s .
26 (j) Any person convicted of violating this section by
27 operating a vehicle on a street or highway in excess of 55 miles
28 per hour and at least 15 miles per hour over the legal limit
29 while fleeing or attempting to elude arrest or apprehension by a
30 law-enforcement officer with authority to enforce the motor
31 vehicle laws is guilty of a Class 1 misdemeanor.
32 ( j 1 ) A person who drives a vehicle on a highway at a speed
33 that is more than 15 miles per hour more than the speed limit
34 established by law for the highway where the offense occurred is
35 guilty of a Class 2 misdemeanor.
36 (j2) A person who drives a motor vehicle in a highway work
37 zone at a speed greater than the speed limit set and posted under
38 G.S. 20-141 is responsible for an infraction and is required to
39 pay a penalty of one hundred dollars ($100.00). A "highway work
40 zone" is the area between the first sign that informs motorists
Page 15 96-RWZ-OOlB
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 of the existence of a work zone on a highway and the last sign
2 that informs motorists of the end of the work zone. This
3 subsection applies only if a sign posted at the beginning of the
4 highway work zone states the penalty for speeding in the work
5 zone.
6 4J(-) Th e maximum s p ee d limit on any public highway within th e
7 Stat e of North Carolina s hall not e xc ee d 55 mil e s p e r hour e xc e pt
8 -fef — tho se — portion s — &£ — &he — Int e rstat e — Highway — Sy s t e m — wh e r e — ^tie
9 D e partm e nt — ei — Transportation — se ts — a high e r — s p ee d — limit pursuant
10 to subdivision (d)(3) — of this s e ction .
11 (1) Notwithstanding any other provision contained in G.S. 20-
12 141 or any other statute or law of this State, including
13 municipal charters, any speed limit on any portion of the public
14 highways within the jurisdiction of this State shall be uniformly
15 applicable to all types of motor vehicles using such portion of
16 the highway, if on November 1, 1973, such portion of the highway
17 had a speed limit which was uniformly applicable to all types of
18 motor vehicles using it. Provided, however, that a lower speed
19 limit may be established for any vehicle operating under a
20 special permit because of any weight or dimension of such
21 vehicle, including any load thereon. The requirement for a
22 uniform speed limit hereunder shall not apply to any portion of
23 the highway during such time as the condition of the highway,
24 weather, an accident, or other condition creates a temporary
25 hazard to the safety of traffic on such portion of the highway.
26 (m) The fact that the speed of a vehicle is lower than the
27 foregoing limits shall not relieve the operator of a vehicle from
28 the duty to decrease speed as may be necessary to avoid colliding
29 with any person, vehicle or other conveyance on or entering the
30 highway, and to avoid injury to any person or property.
31 (n) Notwithstanding any other provision contained in G.S. 20-
32 141 or any other statute or law of this State, the failure of a
33 motorist to stop his vehicle within the radius of its headlights
34 or the range of his vision shall not be held negligence per se or
35 contributory negligence per se."
36 Sec. 2. This act is effective upon ratification.
96-RWZ-OOlB Page 16
Explanation of Legislarive Proposal 2
The National Highway System Designation Act of 1995, signed into law by the
President on November 28, 1995, aboUshed the national 55 mph speed limit. North
Carolina is now free to set its own speed limits on Interstate, other Federal, and State
Highways.
Current North Carolina law sets the maximum State speed limit at 55 mph, except
for Interstate Highways. On Interstates, NC DOT is authorized to set the speed limit
up to 70 mph, based on its engineering and traffic investigation of the segment
proposed for a higher speed limit.
The draft bill would return the N.C. speed limit law to pre- 1975, before the
national 55 mph speed limit was mandated by Federal Law. The bill would reestablish
dot's authority to set speed limits up to 70 mph on non-Interstate, controlled-access
highways. In addition, the draft eliminates ambiguous and obsolete language added in
the mid-70s amendments.
-17-
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
LEGISLATIVE PROPOSAL 3
95-LJ-25 (1.3)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Utility Pole Extension. (Public;
Sponsors: Senators Hoyle, Gulley, Horton, Kerr, Martin of Pittj
Rand, Smith, and Speed.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ALLOW UTILITY POLES CARRIED ON SIDE-LOADERS TO EXTEND
3 MORE THAN THREE FEET BEYOND THE FRONT BUMPER OF THE VEHICLE.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-116(f) reads as rewritten:
6 "(f) The load upon any vehicle operated alone, or the load
7 upon the front vehicle of a combination of vehicles, shall not
8 extend more than three feet beyond the front — wh ee l s — &f — s uch
9 v e hicl e — &i^ — the — front — bump e r — of — s uch — v e hicl e , — ii — tfe — ie — e quipp e d
10 with — Buch — a — bump e r , foremost part of the vehicle. Under this
11 subsection 'load' shall include the boom on a self-propelled
12 vehicle.
13 A utility pole carried by a self-propelled pole carrier may
14 extend beyond the front overhang limit set in this subsection if
15 the pole cannot be dismembered, the pole is less than 80 feet in
16 length, and either of the following circumstances apply;
17 ( 1 ) It is daytime and the front of the extending load
18 of poles is marked by a flag of the type required
19 by G.S. 20-117 for certain rear overhangs.
2 (2 ) It is nighttime, operation of the vehicle is
21 required to make emergency repairs to utility
2 2 service, and the front of the extending load of
95-LJ-25 Page 18
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 poles is marked by a light of the type required by
2 G.S. 20-117 for certain rear overhangs.
3 As used in this subsection, a 'self-propelled pole carrier' is
4 a vehicle designed to carry a pole on the side of the vehicle at
5 a height of at least five feet when measured from the bottom of
6 the brace used to carry the pole. A self-propelled pole carrier
7 may not tow another vehicle when carrying a pole that extends
8 beyond the front overhang limit set in this subsection. "
9 Sec. 2. This act becomes effective July 1, 1996.
Page 19 95-LJ-25
Explanation of Legislative Proposal 3
Utility Pole Extension
This proposal creates an exception to the current limit on the length of a load that
may extend beyond the front of a vehicle. The current limit, which is set in G.S. 20-
116(f), is three feet. The proposal exempts self-propelled pole carriers from this limit
in certain circumstances, effective July 1, 1996.
A self-propelled pole carrier is a side-loader vehicle that can carry utility poles on
both sides of the vehicle, with the weight of the load distributed appropriately in front
of and behind the vehicle. For the weight of the poles to be balanced, the poles need
to extend more than 3 feet in front of the vehicle.
The poles are carried at a height of at least 5 feet from the ground when measured
from the bottom of the brace used to carry the pole. This type of vehicle is used in
Ueu of a pole trailer towed by a truck- tractor. The overall length of the self-propeUed
pole carrier and the poles carried by the vehicle is 65 feet compared to an overall
length of 104 feet for a pole trailer, towing unit, and overhanging poles. The proposal
prohibits a self-propelled pole carrier from towing another vehicle.
The circumstances under which the bill allows a self-propelled pole carrier to
exceed the 3-foot front overhang limit are when the vehicle is carrying a utility pole
that carmot be dismembered and either of the following appUes:
(1) It is daylight and the front overhang is marked by a flag.
(2) It is dark, is an emergency, and the front overhang is marked by a red
Ught.
The proposal is recommended at the request of Duke Power Company. That
company developed this type of vehicle in the mid 1980's to haul poles of more than
40 feet in length more safely and efficiently than hauling them on trailers. The
company has been using these vehicles on the highways in South Carolina and off the
highways in North Carolina. The company's experience with these vehicles is that they
are safer than using a pole trailer and a towing unit.
-20^
Current law does not limit the length by which a load may overhang the rear of a
vehicle. If the rear ovrehang is more than 4 feet, however, G.S. 20-117 requires the
extending load to be marked by a red flag in the daytime and a red light at night. This
proposal does not change the law on rear overhangs.
-21-
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
LEGISLATIVE PROPOSAL 4
96-RWZ-014A
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Vehicle May Not Tow Sled. (Public)
Sponsors;
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO PROHIBIT VEHICLE TOWING OF PERSONS ON SLEDS OR SIMILAR
3 DEVICES.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-123 is amended by adding the
6 following subsection to read:
7 " (d) No person shall tow on a highway of the State by means of a
8 vehicle a person on a sled, skis, skates, skateboard, or other
9 similar device not intended for highway use. "
10 Sec. 2. This act becomes effective December 1, 1996.
96-RWZ-014A Page 22
Explanation of Legislative Proposal 4
This draft would amend the motor vehicle law to forbid the towing on a highway
of persons on sleds, skates, or other devices not intended for highway use. Violation of
this section would be punishable as infraction, with a penalty of up to $100 (G.S. 20-
176).
-23-
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
LEGISLATIVE PROPOSAL 5
96-RWZ-015A
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: No Fee For Mail-In Registration. (Public)
Sponsors;
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ELIMINATE THE ONE DOLLAR FEE FOR MAIL-IN VEHICLE
3 REGISTRATION.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-85.1 reads as rewritten:
6 S 20-85.1. Registration by mail; one-day title service; fees.
7 "(a) The owner of a vehicle registered in North Carolina may
8 renew that vehicle registration by mail. A po s tag e and handling
9 f ee of — on e dollar — ( $1 . 00) — p e r v e hicl e to b e r e gist e r e d shall b e
10 charg e d for this s e rvic e.
11 (b) The Commissioner and the employees of the Division
12 designated by the Commissioner may prepare and deliver upon
13 request a certificate of title, charging a fee of fifty dollars
14 ($50.00) for one-day title service, in lieu of the title fee
15 required by G.S. 20-85(a). The fee for one-day title service
16 must be paid by cash or by certified check. The fee collected
17 under this subsection shall be credited to the Highway Trust
18 Fund.
96-RWZ-015A Page 24
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 (c) Th e f ee coll e ct e d under cube e ction (a) shall b e cr e dit e d to
2 the Highway Fund. Th e f ee coll e ct e d und e r subs e ction — (^3-) — shall
3 b e cr e dit e d to th e Highway Trust Fund ."
4 Sec. 2. This act becomes effective December 1, 1996.
Page 25 96-RWZ-015A
Explanation of Legislative Proposal 5
No fee for mail -in registration
This draft would eliminate the $1 additional fee currently charged by the Division
of Motor Vehicles to persons who renew their vehicle registration by mail.
-26-
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
LEGILATIVE PROPOSAL 6
96-RWZ-022A
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: County Remove Registration Block. (Public)
Sponsors ;
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ALLOW COUNTIES TO ELECTRONICALLY REMOVE A VEHICLE
3 REGISTRATION TAX BLOCK UPON FULL PAYMENT OF PROPERTY TAXES.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-50.4 reads as rewritten:
6 "S 20-50.4. Division to refuse to register vehicles on which
7 taxes are delinquent.
8 Upon receiving the list of motor vehicle owners and motor
9 vehicles sent by county tax collectors pursuant to G.S. 105-
10 330.7, the Division shall refuse to register for the owner named
11 in the list any vehicle identified in the list until either the
12 vehicle owner presents the Division with a paid tax receipt
13 identifying the vehicle for which registration was r e fus e d .
14 refused or the county electronically certifies to the Division
15 that the tax has been paid. The Division shall not refuse to
16 register a vehicle for a person, not named in the list, to whom
17 the vehicle has been transferred in good faith. Where a motor
18 vehicle owner named in the list has transferred the registration
19 plates from the motor vehicle identified in the list to another
20 motor vehicle pursuant to G.S. 20-64 during the first vehicle's
96-RWZ-022A Page 27
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 tax year, the Division shall refuse registration of the second
2 vehicle until the vehicle owner presents the Division with a paid
3 tax receipt identifying the vehicle from which the plates were
4 trancforrod. transferred or the county electronically certifies
5 to the Division that the tax has been paid. An electronic
6 certification by the county must be in the format required by the
7 Division.
8 Sec. 2. This act is effective upon ratification.
Page 28 96-RWZ-022A
Explanation of Legislative Proposal 6
Current law requires DMV to "block" the registration of a vehicle that has
outstanding property taxes. To remove the "block", the person affected must pay the
tax at the county tax office, and then take the receipt to DMV.
This draft would allow counties, once the new DMV computer system is fully in
operation, to remove the vehicle registration "block" electronically, at the time
payment is received from the taxpayer.
28.1
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
LEGISLATIVE PROPOSAL 7
95-LJ-30
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Delete "L" CDL Endorsement. (Public)
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO DELETE THE UNNECESSARY "L" ENDORSEMENT FOR A COMMERCIAL
3 DRIVERS LICENSE.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-37. 16(c) reads as rewritten:
6 "(c) Endorsements. The endorsements required to drive
7 certain motor vehicles are as follows:
8 Endorsement Vehicles That Can Be
9 Driven
10 H Vehicles carrying hazardous
11 materials, other than tank
12 vehicles
13 I, Doubl e trail e r s that ar e long e r
14 combination v e hicl es
15 M Motorcycles
16 N Tank vehicles not carrying
17 hazardous materials
18 P Vehicles carrying passengers
19 T Double trailers oth e r than
2 long e r combination v e hicl e s
21 X Tank vehicles carrying
22 hazardous materials.
95-LJ-30 Page 29
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 To obtain an H or an X endorsement, an applicant must take a
2 test. This requirement applies when a person first obtains an H
3 or an X endorsement and each time a person renews an H or an X
4 endorsement. An applicant who has an H or an X endorsement issued
5 by another state who applies for an H or an X endorsement must
6 take a test unless the person has passed a test that covers the
7 information set out in 4 9 C.F.R. § 383.121 within the preceding
8 two years. "
9 Sec. 2. This act is effective upon ratification.
Page 30 95-LJ-30
Explanation of Legislative Proposal 7
Delete "L" CDL Endorsement
This proposal deletes a commercial drivers license endorsement that is unnecessary
because it is not used now and never has been used by the Division of Motor Vehicles.
The unnecessary endorsement is an "L" endorsement, which is described in the statute
as an endorsement for double trailers that are longer combination vehicles. Reference
to an "L" endorsement that does not exist is confusing and conflicts with current drivers
license administration. The practice in this State and nationwide is to use "L" as a
restriction, rather than an endorsement, that prohibits the holder of the license from
driving a vehicle that has air brakes.
An endorsement is an authorization to drive certain vehicles for which a drivers
license alone is not sufficient. To drive a vehicle for which an endorsement is required,
a person must have a license and an endorsement. To obtain an endorsement, a person
must pass an additional written test and often an additional skills test. A restriction
limits the scope of a drivers license, such as by requiring the driver to wear glasses
while driving. Both an endorsement and a restriction are noted on the face of a drivers
license.
-31-
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
LEGISLATIVE PROPOSAL 8
95-LJ-31(1.2)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION]
Short Title: 60 Days To Change DMV Info.
(Public)
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ESTABLISH A STANDARD TIME PERIOD OF 60 DAYS IN WHICH TO
3 OBTAIN OR CHANGE A DRIVERS LICENSE, A SPECIAL IDENTIFICATION
4 CARD, OR A VEHICLE REGISTRATION.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 20-4.6 is repealed.
7 Sec. 2. G.S. 20-7(a) reads as rewritten:
8 "(a) License Required. — To drive a motor vehicle on a
9 highway, a person must be licensed by the Division under this
10 Article or Article 2C of this Chapter to drive the vehicle and
11 must carry the license while driving the vehicle. The Division
12 issues regular drivers licenses under this Article and issues
13 commercial drivers licenses under Article 2C.
14 A license authorizes the holder of the license to drive any
15 vehicle included in the class of the license and any vehicle
16 included in a lesser class of license, except a vehicle for which
17 an endorsement is required. To drive a vehicle for which an
18 endorsement is required, a person must obtain both a license and
19 an endorsement for the vehicle. A regular drivers license is
20 considered a lesser class of license than its commercial
21 counterpart.
95-LJ-31
Page 32
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 The classes of regular drivers licenses and the motor vehicles
2 that can be driven with each class of license are:
3 (1) Class A. -- A Class A license authorizes the holder
4 to drive any of the following:
5 a. A Class A motor vehicle that is exempt under
6 G.S. 20-37.16 from the commercial drivers
7 license requirements.
8 b. A Class A motor vehicle that has a combined
9 GVWR of less than 26,001 pounds and includes
10 as part of the combination a towed unit that
11 has a GVWR of at least 10,001 pounds.
12 (2) Class B. — A Class B license authorizes the holder
13 to drive any Class B motor vehicle that is exempt
14 under G.S- 20-37.16 from the commercial drivers
15 license requirements.
16 (3) Class C. — A Class C license authorizes the holder
17 to drive any of the following:
18 a. A Class C motor vehicle that is not a
19 commercial motor vehicle.
20 b. When operated by a volunteer member of a fire
21 department, a rescue squad, or an emergency
22 medical service (EMS) in the performance of
23 duty, a Class A or Class B fire-fighting,
24 rescue, or EMS motor vehicle or a combination
25 of these vehicles.
26 The Commissioner may assign a unique motor vehicle to a class
27 that is different from the class in which it would otherwise
28 belong.
29 A new resident of North Carolina who has a drivers license
30 issued by another jurisdiction must obtain a license from the
31 Division within ^M- 60^ days after becoming a resident."
32 Sec. 3. G.S. 20-7(f) reads as rewritten:
33 " (f) Expiration and Temporary License. -- The first drivers
34 license the Division issues to a person expires on the person's
35 fourth or subsequent birthday that occurs after the license is
36 issued and on which the individual's age is evenly divisible by
37 five, unless this subsection sets a different expiration date.
38 The first drivers license the Division issues to a person who is
39 at least 17 years old but is less than 18 years old expires on
40 the person's twentieth birthday. The first drivers license the
4 1 Division issues to a person who is at least 62 years old expires
42 on the person's birthday in the fifth year after the license is
43 issued, whether or not the person's age on that birthday is
44 evenly divisible by five.
Page 33 95-LJ-31
GENERAL ASSEMBLY OF NORTH CAROLINA ' SESSION 1995
1 A drivers license that was issued by the Division and is
2 renewed by the Division expires five years after the expiration
3 date of the license that is renewed. A person may apply to the
4 Division to renew a license during the 60-day period before the
5 license expires. The Division may not accept an application for
5 renewal made before the 60-day period begins.
7 Any p e r s on s e rving — in th e arm e d forc es of th e Unit e d Stat e s on
8 activ e — duty — awd — holding — a — valid driv e r s — lic e ns e prop e rly — issu e d
9 und e r — thi s — s e ction — afid — station e d — out s id e — feiie — Stat e — ei — North
10 Carolina — may — r e n e w — feiie — lic e n se — by — making — application — fee — tiie
11 Divi s ion by mail . Any — oth e r p e rson, — e xc e pt — a nonr es id e nt, — wb©
12 hold s — a valid driv e rs — lic e ns e — issu e d und e r this — s e ction and who
13 is t e mporarily r e siding out s id e North Carolina, — may al s o r e n e w by
14 making application to th e Divi s ion by mail . For purpo se s of this
15 se ction "t e mporarily" shall m e an not l e ss than 30 days continuou s
16 abs e nc e from North Carolina . In e ith e r ca se , — feb«
17 The Division may renew by mail a drivers license issued by the
18 Division to a person who meets any of the following descriptions:
19 ( 1 ) Is serving on active duty in the armed forces of
20 the United States and is stationed outside this
21 State.
22 ( 2 ) Is a resident of this State and has been residing
2 3 outside the State for at least 30 continuous days.
24 When renewing a license by mail, the Division may waive the
25 examination and color photograph that would otherwise be required
2 6 ioi^ — febe — r e n e wal — &f — a — driv e r s — lic e n se , for the renewal and may
27 impose in li e u th e r e of any conditions it consid e rs appropriat e to
28 e ach particular application , finds advisable. A license renewed
29 by mail is a temporary license that expires -3^ 6^ days after the
30 person to whom it is issued returns to this State."
31 Sec. 4. G.S. 20-7.1 reads as rewritten:
32 "§ 20-7.1. Notification Notice of change of addr ess, address or
33 name.
34 Wh e n e v e r th e hold e r of a lic e n se — i ss u e d und e r th e provi s ion of
35 G . S . — 20-7 — ha^ — a — chang e — in th e addr e ss — as — s hown on — such lic e ns e ,
36 he — &* — &iie — s hall — apply — fo* — a — duplicat e — lic e n se — within — M — days
37 aft e r — s uch — addr ess — h«t€ — b^e« — chang e d . — Provid e d, — that — i^ — febe
38 lic e ns ee ' s — mailing — addr e s s — has — bee© — chang e d — by — gov e rnm e ntal
39 action and th e r e has b ee n no actual chang e of r es id e nc e location,
40 upon giving notic e — in writing to th e Divi s ion of Motor V e hicl es
41 in Ral e igh within 60 days of thi s chang e of addr es s, th e lic e n see
4 2 iRay — tt&e — his — curr e nt — lic e r se — &f^ — p e rmit — until — it* — e xpiration — &Â¥â–
43 obtain a duplicat e lic e ns e or p e rmit showing th e n e w addr e s s upon
4 4 paym e nt — &i — febe — r e quir e d — f ee. — He — p e r s on — shall — be — charg e d — with
95-LJ-31 Page 34
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 having — violat e d — thi s — s e ction — wh e n — only — hi-s — mailing — addr ess — h*s-
2 b ee n chang e d by gov e rnm e ntal action .
3 (a) Address. -- A person whose address changes from the address
4 stated on a drivers license must notify the Division of the
5 change within 60 days after the change occurs. If the person's
6 address changed because the person moved, the person must obtain
7 a duplicate license within that time limit stating the new
8 address. A person who does not move but whose address changes
9 due to governmental action may not be charged with violating this
10 subsection.
11 (b) Name. — A person whose name changes from the name stated
12 on a drivers license must notify the Division of the change
13 within 60 days after the change occurs and obtain a duplicate
14 drivers license stating the new name,
15 (c) Fee. -- G.S. 20-14 sets the fee for a duplicate license. "
16 Sec. 5. G.S. 20-37. 12(e) reads as rewritten:
17 "(e) In accordanc e with G . S . — 20-7, G.S. 20-7 sets the time
18 period in which a new resident of North Carolina bd« — 3-0 — days — to
19 must obtain a license from the Division. The Commissioner may
20 establish by rule the conditions under which the test
21 requirements for a commercial drivers license may be waived for a
22 new resident who is licensed in another state."
23 Sec. 6. G.S. 20-37.9 reads as rewritten:
24 "§ 20-37.9. Notification Notice of change of addr ess, address or
25 neune.
2 6 Wh e n e v e r — feiie — hold e r — &i — a — s p e cial — id e ntification — card — issu e d
2 7 und e r — G . S . — 20-37 . 7 — ha* — a — chang e — ie — feive — addr ess — a« — s hown — on th e
28 sp e cial id e ntification card, h e or sh e shall apply for r e issuanc e
29 of a sp e cial id e ntification card within 60 days aft e r the addr e ss
30 hs^ beoB — chang e d . T^ie fee f^f^ r e i s suanc e &i a sp e cial
31 id e ntification — card — i-s — febe — &^me — ae — t4i€ — fee — &et — ifl — G . S . — 20-37 . 7
32 ir&i^ — i ss uing — a — sp e cial — id e ntification — card . ii — a — chang e — ©4
33 addr ess — i* — tiie — r es ult — ©^ — gov e rnm e ntal — action — a«d — th e r e — irS — ft©
34 actual chang e of g e ographical location, — th e hold e r of th e card i s
35 not r e quir e d to chang e th e addr e ss on th e card until th e Division
36 issu e s th e hold e r anoth e r card .
37 (a) Address. -- A person whose address changes from the address
38 stated on a special identification card must notify the Division
39 of the change within 60 days after the change occurs. If the
40 person's address changed because the person moved, the person
4 1 must obtain a new special identification card within that time
4 2 limit stating the new address. A person who does not move but
43 whose address changes due to governmental action may not be
4 4 charged with violating this subsection.
Page 35 95-LJ-31
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 (b) Name. -- A person whose name changes from the name stated
2 on a special identification card must notify the Division of the
3 change within 60 days after the change occurs and obtain a new
4 special identification card stating the new name,
5 (c) Fee. — G.S. 20-37.7 sets the fee for a special
6 identif cation card. "
7 Sec. 7. G.S. 20-67 reads as rewritten:
8 "§ 20-67. Notice of change of address or name.
9 (a) Address. — Wh e n e v e r — any p e r s on, — aft e r making — application
10 for or obtaining — febe — r e gi s tration of — a v e hicl e or a — c e rtificate
11 of titl e , — shall mov e from th e A person whose address nam e d in th e
12 application — &¥■— shown upon — a — r e gistration — card or c e rtificat e of
13 titl e , — s uch — p e rson — s hall — within — 3^ — days — th e r e aft e r — notify — feb^
14 Divi s ion — ifi — writing — oi — hie — ©id — aftd — new — addr e ss e s . changes from
15 the address stated on a certificate of title or registration card
16 must notify the Division of the change within 60 days after the
17 change occurs. The person may obtain a duplicate certificate of
18 title or registration card stating the new address but is not
19 required to do so. A person who does not move but whose address
20 changes due to governmental action may not be charged with
21 violating this subsection.
22 (b) Name. Wh e n e v e r — feiie — Rawe — &i — afty — p e rson — wbe — h«t6 — mad e
23 application — £o*^ — e^ — obtain e d — feiie — r e gistration — oi — a — v e hicl e — g^ — a
2 4 c e rtificat e — &i — titl e — is — th e r e aft e r — chang e d — by — marriag e — g^
2 5 oth e rwi se , — such — p e rson — shall — th e r e aft e r — forward — &r — cau se — 1« — be
26 forward e d — to — feive — Divi s ion — febe — c e rtificat e — &f — titl e — aad — fee — mak e
2 7 application — £e^ — corr e ction — o4 — fe^ie — c e rtificat e — ea — forms — provid e d
28 by th e Division . A person whose name changes from the name stated
2 9 on a certificate of title or registration card must notify the
30 Division of the change within 60 days after the change occurs.
31 The person may obtain a duplicate certificate of title or
32 registration card but is not required to do so.
3 3 (c) Fee. -- G.S. 20-85 sets the fee for a duplicate certificate
34 of title or registration card. "
35 Sec. 8. This act becomes effective December 1, 1996.
95-LJ-31 Page 36
Explanation of Legislative Proposal 8
60 Days To Change DMV Information
This proposal establishes 60 days as the standard time period in which a new
resident of this State must obtain a drivers license, a special identification card, or a
vehicle registration and in which a current resident of this State must notify the Division
of a change of address or name. It also makes standard a requirement that a person
whose name changes notify the Division of the change within 60 days. Further, it
establishes a standard requirement that a person who has not moved but whose address
has changed must notify the Division of the change. Finally, it makes clarifying changes
to the affected statutes.
Under current law. some of these time periods are 30 days, some are 60 days, and
some are unlimited and no notice is required in some instances for a change of name.
The current law is as follows:
Circumstance
New resident to obtain license
New resident to obtain license
Renewal of temporary license upon
return to State
Notice of change of address for
license
Notice of change of name for license
Notice of change of address for
special id card
Notice of change of name for special
id card
Notice of change of address for
vehicle registration
Noice of change of name for vehicle
registration
Days
Statute
Allowed
30
30
20-4.6
20-7(a),
20-37. 12(e)
30
20-7(f)
60
60, but
required only
for CDL
20-7.1.
20-37. 15(b)
20-37. 15(b)
60
20-37.9
Not required
.,
30
20-67(a)
Unlimited
20-67(b)
Section 1 repeals G.S. 20-4.6 because it is unnecessary and confusing. The
section addresses privileges of vehicles registered in another state and requires
-37-
new residents to register their vehicles with the Division within 30 days after
becoming a resident. The part that addresses privileges of vehicles registered
in another state conflicts with G.S. 20-4.8, which is the controlling law. and
the part that sets a time limit for a new resident to register a vehicle both
conflicts with the proposed 60-day limit and unnecessarily repeats G.S. 20-67.
Section 2 changes the time in which a new resident must obtain a drivers
license from 30 days to 60 days.
Section 3 extends from 30 days to 60 days the time in which a person who
has a temporary drivers license must obtain a regular license. The Division
can issue a temporary drivers license by mail as the renewal of a license
previously issued by the Division when the license holder is out of the State.
A temporary license now expires 30 days after the license holder returns to the
State.
Section 4 rewrites the statute requiring a duplicate license for a change of
address to add a requirement to notify the Division of a change of name.
Notification of a change of name is now required for a commercial drivers
license but not a regular license. Lack of correct names is part of the reason
the Division cannot currently match many license revocation orders to licensed
drivers. G.S. 20-37. 15(b), in the commercial drivers license provisions, states
that when a person's name changes, the person must apply for a dupHcate
license as provided in G.S. 20-7.1. Currently, however, G.S. 20-7.1 does not
address obtaining a duplicate when a name changes. The rewritten section
adds a cross-reference to the fee for a duplicate license but does not impose a
new fee. Failure to obtain a duplicate license as required is a Class 2
misdemeanor under G.S. 20-35.
Section 5 makes a conforming change to the CDL statutes. The relevant
statute now unnecessarily repeats the time period in which a new resident must
obtain a drivers license. This section deletes the current 30-day limit and
substitutes a cross reference to the new 60-day limit.
Section 6 conforms the special id statute to the drivers license statute with
respect to notice of a change of address or name. The special id statute
currently does not require notification of a change of name. Also, the statute
is not clear whether a person whose address has changed but who has not
moved must notify the Division. As interpreted, the statute means that a
person in this circumstance must notify the Division but is not required to get a
new special id card.
Section 7 rewrites the statute requiring a person to notify DMV of a change
of name or address for purposes of vehicle registration. The statute clarifies
-38-
that a person who has not moved but whose address has changed must notify
the Division of the change. This is the practice although the statute addresses
only a move. In making this change, the statute is conformed to the drivers
license change of address provisions. The rewritten section also adds a cross
reference to the fee for a duplicate certificate of title or duplicate fee. It does
not change the fee. however. Failure to notify the Division of a change or
address or name as required is a Class 2 misdemeanor under G.S. 20-176.
-39-
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
LEGISLATIVE PROPOSAL 9
95-LJ-32(1.2)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Digitized Imagery License Changes. (Public)
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ALLOW THE DIVISION OF MOTOR VEHICLES TO USE DIFFERENT
3 COLOR BORDERS TO DISTINGUISH THE AGE OF LICENSE HOLDERS,
4 THEREBY MAKING IT EASIER TO ISSUE DUPLICATE LICENSES BY MAIL
5 WHEN THE PHOTOGRAPH ON THE ORIGINAL LICENSE IS A DIGITIZED
6 IMAGE .
7 The General Assembly of North Carolina enacts:
8 Section 1. G.S. 20-7(n) reads as rewritten:
9 "(n) Format. — A drivers license issued by the Division must
10 be tamperproof and must contain all of the following information:
An identification of this State as the issuer of
the license.
The license holder's full name.
The license holder's residence address.
A color photograph of the license holder, taken by
the Division.
A physical description of the license holder,
including sex, height, eye color, and hair color.
The license holder's date of birth.
The license holder's social security number or
another identifying number assigned by the
Division.
95-LJ-32 Page 40
11
(1)
12
13
(2)
14
(3)
15
(4)
16
17
(5)
18
19
(6)
20
(V)
21
22
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 (8) Each class of motor vehicle the license holder is
2 authorized to drive and any endorsements or
3 restrictions that apply.
4 (9) The license holder's signature.
5 (10) The date the license was issued and the date the
6 license expires.
7 The Commissioner may waive the requirement of a color
8 photograph on a license if the license holder proves to the
9 satisfaction of the Commissioner that taking the photograph would
10 violate the license holder's religious convictions. In taking
11 photographs of license holders, the Division must distinguish
12 between license holders who are less than 21 years old and
13 license holders who are at least 21 years old by using different
14 color backgrounds or borders for each group. The Division shall
15 determine the different colors to be used.
16 At the request of an applicant for a drivers license, a license
17 issued to the applicant must contain the applicant's race."
18 Sec. 2. G.S. 20-14 reads as rewritten:
19 "§ 20-14. Duplicate licenses.
20 A person may obtain a duplicate of a license issued by the
21 Division by paying a fee of ten dollars ($10.00) and giving the
22 Division satisfactory proof that any of the following has
23 occurred:
24 (1) The person's license has been lost or destroyed.
25 (2) It is necessary to change the name or address on
26 the license.
27 (3) Because of age, the person is entitled to a license
28 with a different color photographic background .
29 background or a different color border.
30 (4) The Division revoked the person's license, the
31 revocation period has expired, and the period for
32 which the license was issued has not expired."
33 Sec. 3. This act is effective upon ratification.
Page 41 95-LJ-32
Explanation of Legislative Proposal 9
Digitized Imagery License Changes
The Division of Motor Vehicles plans to use digitized imagery for the photograph
of a person on a drivers license beginning sometime after October of 1996. When this
occurs, the Division's records will include that image of the person. Therefore, a
person who needs a duplicate license because of a change of address or name change
would not have to visit a Division office. The Division could issue the duplicate
license, complete with the digitized image, by mail.
A problem in implementing the issuance of a digitized duplicate license by mail is
the requirement that a drivers license of a person who is at least 21 years old have a
different color background than a drivers license issued to a person who is less than 21
years old. A digitized image can be edited to change the colors in the image, but
editing requires more time and costs more than not editing the image. This bill
resolves the potential editing problem by allowing the Division to use different color
borders, as opposed to different color backgrounds, to distinguish the age group of the
license holder.
-42-
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
LEGISLATIVE PROPOSAL 10
95-LJ-16(1.4)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: DMV Trucking/Technical Changes. (Public)
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO CONFORM THE MOTOR VEHICLE LAWS TO THE FEDERAL
3 DEREGULATION OF TRUCKING AND TO MAKE TECHNICAL CHANGES TO THE
4 MOTOR VEHICLE LAWS.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 20-1 reads as rewritten:
7 "S 20-1. Division of Motor Vehicles of — t^e — D e pairtm e nt — oi
8 Tran s portation? pow e r s and duti es, established.
9 The D e partm e nt — &i — Motor — V e hicle s — is — h e r e by — r e d es ignat e d — ^he
10 Division of Motor Vehicles of the Department of Tran s portation .
11 The — Division — &f — Motor V e hicl e s — shall — hav e — the — sam e — pow e rs — a«d
12 duti e s as wor e h e ld by th e Departm e nt of Motor V e hicl e s e xc e pt as
13 oth e rwi se — provid e d — ifi — thi s — Articl e. â €” Ai4 — pow e r s , — duti e s — a«4
14 functions r e lating to th e coll e ction of motor fu e l tax e s and th e
15 coll e ction — &£ — ^he — gasolin e and — oi^l — insp e ction — tax es — s hall
16 continu e — to — be — v e st e d — in — and — e x e rci se d — by — feho — S e cr e tary — of-
17 R e v e nu e ; — and — wh e r e v e r — it — is — now — provid e d — by — iaw — that — r e port s
18 s hall — be — fil e d with — the — S e cr e tary — of — R e v e nu e , — of — D e partm e nt — of-
19 R e v e nu e , — a s a basi s for coll e cting th e motor fu e l or gasolin e and
20 o44 — in s p e ction tax e s, — or e nforcing any of th e law s r e garding th e
21 motor — fu e l — of — gasolin e — and — oil — in s p e ction — tax es , — s uch — r e port s
22 shall — continu e to b e mad e to th e D e partm e nt of R e v e nu e and th e
23 Commission e r — of — Motor — Vehicl e s — shall — mak e — availabl e — te — the
95-LJ-16 Page 43
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 Socretary — &i — R e v e nu e all — information — from — fil es — &i — feiie — Divi s ion
2 of Motor V e hicl e s which th e S e cr e tary of R e v e nu e may r e qu e st to
3 e nabl e — him — fee — b e tt e r — e nforc e — the — taw — with — r e sp e ct — fe« — fehe
4 coll e ction — of — such tax es. — Nothing — in this — Articl e — shall — depriv e
5 ^fefee — Utiliti e s — Commission — &f — afty — &i — felve — duti e s — &i^ — pow e r s — r©w
6 v es t e d — i« — it — with — r e gard — to — febe — r e gulation — &f — motor — v e hicl e
7 carriers. Transportation is established. This Chapter sets out
8 the powers and duties of the Division. "
9 Sec. 2. G.S. 20-4.01(27)c. reads as rewritten:
10 "c. Common carriers of passengers. — Vehicles
11 operated under a franchi se certificate of
12 authority issued by the Utilities Commission
13 for operation on the highways of this State
14 between fixed termini or over a regular route
15 for the transportation of persons or prop e rty
16 for compensation."
17 Sec. 3. G.S. 20-4.01 is amended by adding the following
18 subdivisions in the appropriate alphabetical order to read:
19 " ( 11a) For-hire Motor Carrier. — A person who
20 transports passengers or property by motor
21 vehicle for compensation.
22 (21b) Motor Carrier. — A for-hire motor carrier or
23 a private motor carrier.
24 (29a) Private Motor Carrier. — A person who
25 transports passengers or property by motor
26 vehicle in interstate commerce and is not a
27 for-hire motor carrier. "
28 Sec. 4. G.S. 20-4.01(31) reads as rewritten:
29 "(31) Property-Hauling Vehicles. —
30 a. Ex e mpt for-hir e v e hicl e s . ■•'- Vehicles used for
31 the transportation of prop e rty — to*^ — hir e — bttfe
32 net — lic e ns e d — ae — common — carri e r s — &f — contract
33 carri e r s ei prop e rty und e r franchi se
34 c e rtificat es »j? p e rmit s i ss u e d by the
35 Utiliti es — Commi ss ion — &i^ — by — the — Int e rstat e
36 Comm e rc e — Commission; — provid e d, — that — the — t e rm
37 "for hir e " — s hall — includ e e v e ry arrang e m e nt by
38 which th e own e r of a v e hicl e u ses , — or p e rmit s
39 such v e hicl e to be u se d, ir&r^ tlie
40 transportation of — th e prop e rty of — anoth e r for
41 comp e n s ation, subj e ct to tfee following
42 e x e mptions ;
43 4r^ 54ie — tran s portation — of farm — crop s &Â¥â–
44 products, — including logs, bark, pulp, and
Page 44 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 tannic acid wood d e liv e r e d from farm s and
2 for e st — to — tbe — fir s t — &f^ — primary — mark e t,
3 and th e transportation of wood chip s from
4 the — plac e — wh e r e — wood — hae — b ee n — convertod
5 into — chip s — to — th e ir — first — o* — primary
6 mark e t .
7 2^ ¥he — tran s portation — &i, — p e richablo — food*
8 which ar e still ownod by th e growor whil e
9 b e ing d e liv e r e d to the — first or primary
10 mark e t — by — an — op e rator who — h»s — not moro
11 than on e truck, truck-tractor, or trailor
12 in a for'-hir e operation .
13 ^3^ The — transportation — of m e rchandis e haulod
14 for n e ighborhood farm e r s incid e ntally and
15 not a s a r e gular bucin e cs in going to and
16 from farms and primary mark e ts .
17 4^ The — transportation — of — T . V . A . — oi^ — A. A. A.
18 phosphate — and/or — agricultural — lim e ston e
19 in bulk which is furnish e d as a grant of
20 aid und e r th e Unit e d Stat e s Agricultural
21 Adju s tm e nt Administration .
22 5^ The tran s portation of fu e l fo*: tbo
23 e xclu s iv e — uee — of — feh« — public — s chool s — of-
24 th e State
25 4^ V e hicles whos e sole op e ration in carrying
26 th e prop e rty of othorc — is limit e d to tho
27 transportation of th e Unitod Stat e s mail
28 pur s uant to a contract, — or th e e xt e nsion
29 or r e n e wal of such contract .
30 7-.- V e hicles l e as e d for a torm of on e y e ar or
31 mor e to the s am e p e rson — wh e n us e d
32 e xclu s iv e ly by s uch p e r s on i«
33 transporting his own property.
34 b^ Common carri e r of prop e rty vehicles.
35 V e hicloc us e d fo*: the transportation of-
36 prop e rty c e rtifi e d by th e Utiliti e s Commission
37 o*: — the Int e rstate — Comm e rc e — Commission — st&
38 common carriorc .
39 G^ Privat e haul e r v e hicloc . — --- Vehicles used for
4 the — transportation — of — prop e rty — not — falling
41 within ©ne &f the abovo-dof inod
4 2 classifications; provid e d , self --propellod
4 3 v e hicloc — e quipp e d — with — p e rmanent — living — and
44 B l ee ping facilities us e d fof: camping
95-LJ-16 Page 45
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 activiti es — shall — be — claccif i e d — as — privat e
2 pas se ng e r v e hicl es.
3 d. Semitrailers. — Vehicles without motive power
4 designed for carrying property or persons and
5 for being drawn by a motor vehicle, and so
6 constructed that part of their weight or their
7 load rests upon or is carried by the pulling
8 vehicle.
9 e. Trailers. — Vehicles without motive power
10 designed for carrying property or persons
11 wholly on their own structure and to be drawn
12 by a motor vehicle, including "pole trailers"
13 or a pair of wheels used primarily to balance
14 a load rather than for purposes of
15 transportation.
16 -f— Contract — carri e r — &f — prop e rty — v e hicl es. «=-=
17 Vehicles u se d foj? the tran s portation of-
18 prop e rty und e r a franchi se p e rmit &i a
19 r e gulat e d — contract — carri e r i ss u e d — by — febe
20 Utilities Commission &f^ feiie Int e r s tat e
21 Comm e rc e Commieeion ."
22 Sec. 5. G.S. 20-37. 16(e) reads as rewritten:
23 "(e) The requirements for a commercial drivers license do not
24 apply to vehicles used for personal use such as recreational
25 vehicles. A commercial drivers license is also waived for the
26 following classes of vehicles as permitted by regulation of the
2 7 United States Department of Transportation:
28 (1) Vehicles owned or operated by the Department of
29 Defense, including the National Guard, while they
30 are driven by active duty military personnel, or
31 members of the National Guard when on active duty,
32 in the pursuit of military purpos es ; purposes.
33 (2) Any vehicle when used as firefighting or emergency
34 equipment for the purpose of preserving life or
35 property or to execute emergency governmental
36 functions; and functions.
37 (3) Farm v e hicl es — that m ee t A farm vehicle that meets
38 all of the following criteria:
39 a. Controll e d Is controlled and operated by the
40 farmer or the farmer's employee and used
41 exclusively for farm us e ; use.
42 b. U se d Is used to transport either agricultural
43 products, farm machinery, or farm supplies,
44 both to or from a farm; farm.
Page 46 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 c. Not Is not used in the operations of a conunon
2 ©* contract for-hire motor carri e r; and
3 carrier.
4 d. U se d Is used within 150 miles of the farmer's
5 farm.
6 A farm vehicle includes a forestry vehicle that
7 meets the listed criteria when applied to the
8 forestry operation."
9 Sec. 6. G.S. 20-64.1 is repealed.
10 Sec. 7. G.S. 20-87(1) reads as rewritten:
11 " ( 1 ) Common Carri e r, Contract Carri e r s and Ex e mpt
12 For-Hire Passenger Carri e r Vehicles. — For^hire
13 pa sse nger v e hicl e s — s hall — be — tax e d — at — the — rate — &ir
14 The fee for a passenger vehicle that is operated
15 for compensation and has a capacity of fifteen
16 passengers or less is seventy-eight dollars
17 ($78 . 00) pef^ y e ar fo*^ e ach v e hicl e of-
18 f ift ee n-'Tpase e ng e r capacity or l e es — and v e hicl e s — &i-
19 ov e r fift ee n-pa s seng e r capacity s hall b e classifi e d
20 a s bus es and shall b e tax e d at a rat e of ($78.00) .
21 The fee for a passenger vehicle that is operated
22 for compensation and has a capacity of more than
23 fifteen passengers is one dollar and forty cents
24 ($1.40) per hundred pounds of empty weight p e r y e ar
25 fof — e ach — v e hicl e ; — provid e d, — how e v e r, — no — lic e ns e
26 s hall — be — i ss u e d — fof^ — the — op e ration — of — any — taxicab
2 7 until — febe — gov e rning — body — of — the — city — oi^ — town — in
28 which s uch taxicab i s principally op e rat e d, — if th e
29 principal — op e ration — is — in — a — city — o*^ — town, — ba&
30 issu e d a c e rtificat e showing ;
31 a-^ That th e op e rator of such taxicab ha s provid e d
32 liability insuranc e or oth e r form of ind e mnity
33 for — injury — to — p e r s on — o*: — damag e — to — prop e rty
34 r e sulting from th e op e ration of s uch taxicab,
35 in — s uch — amount — as — r e quir e d — by — the — city — o*^
36 town, — and
37 b^ That — the — conv e ni e nc e — and — n e c e ssity — of — the
38 public r e quir e s th e op e ration of such taxicab .
39 A14 — p e r s on s — op e rating — taxicabs — on — January — l-r
40 1945, — s hall — be — e ntitl e d — to — a — c e rtificat e — of-
41 n e c ess ity — and — conv e ni e nce — fo^p — the — numb e r — of-
42 taxicab s op e rat e d by th e m on s uch dat e , unl e ss
4 3 s inc e s aid dat e th e lic e n se of such p e rson or
44 p e rsons — to — op e rat e — a — taxicab — or taxicabs — has-
95-LJ-16 Page 47
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 b ee n — r e vok e d — &f^ — th e ir — right — fee — op e rat e — h*e-
2 b ee n — withdrawn — &f — r e vok e d; — provid e d — that — aii
3 p e r s on s — op e rating — taxicab s — in Edg e comb e , — L ee ,
4 Naeh — and — Union — Counti es — ©n — January — lr^ — 1945,
5 chall bo entitl e d to c e rtificat es of n e c ess ity
6 And — conv e ni e nc e — only with — &be — approval — &i — the
7 gov e rning authority ei the town o*^ city
8 involv e d .
9 A — taxicab — shall — be — d e fin e d — afi — any — motor
10 vehicle, s e ating — nin e — &f^ — f e w e r — pass e ng e r s ,
11 op e rated upon any s tr ee t or highway on call or
12 d e mand, acc e pting — ©i^ — soliciting — pa sse ng e r s
13 indiscriminat e ly for hir e b e tw ee n s uch point s
14 along — str ee t s — or highway s — a s may b e dir e ct e d
15 by — fehe — pass e ng e r — &f^ — pa sse ng e r s se — b e ing
16 tran s port e d, and shall not includ e — motor
17 vehicles — or motor v e hicl e carri e r s — ae — d e fin e d
18 in — Articl e — 15 — &£ — thi s — Chapt e r . — Such — taxicab
19 chall not b e constru e d to bo a common carri e r
20 nor it s op e rator a public s e rvic e corporation .
21 of the vehicle. "
22 Sec. 8. G.S. 20-88(b) reads as rewritten:
23 "(b) The following fees are imposed on the annual registration
24 of self-propelled property-hauling vehicles; the fees are based
25 on the type of vehicle and its weight:
26 SCHEDULE OF WEIGHTS AND RATES
28 Rates Per Hundred Pound Gross Weight
29
30 Farmer Rate
31 Not over 4,000 pounds $0.23
32 4,001 to 9,000 pounds inclusive .29
33 9,001 to 13,000 pounds inclusive .37
34 13,001 to 17,000 pounds inclusive .51
35 Over 17,000 pounds .58
36 SCHEDULE OF WEIGHTS AND RATES
37 ^^^^^^^^,,^^^_^^,^^,,^^,^^_^==^^_^^=^^=^^^=
38 Rates Per Hundred Pound Gross Weight
39 Privat e Haul e r,
40 Contract Carriors, Flat
41 Rat e Common Carri e rs and
42 Ex e mpt for--Hiro Carri e r s
4 3 General Rate
44 Not over 4,000 pounds $0.46
Page 48 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 4,001 to 9,000 pounds inclusive .63
2 9,001 to 13,000 pounds inclusive .78
3 13,001 to 17,000 pounds inclusive 1.06
4 Over 17,000 pounds 1.20
5 (1) The minimum fee for a vehicle licensed under this
6 subsection is seventeen dollars and fifty cents
7 ($17.50) at the farmer rate and twenty-one dollars
8 and fifty cents ($21.50) at the privat e — haul e r,
9 contract carri e r, and common carri e r rat e s , general
10 rate.
11 (2) The term "farmer" as used in this subsection means
12 any person engaged in the raising and growing of
13 farm products on a farm in North Carolina not less
14 than 10 acres in area, and who does not engage in
15 the business of buying products for resale.
16 (3) License plates issued at the farmer rate shall be
17 placed upon trucks and truck-tractors that are
18 operated exclusively in the carrying or
19 transportation of applicant's farm products, raised
20 or produced on his farm, and farm supplies and not
21 operated in hauling for hire.
22 (4) "Farm products" means any food crop, livestock,
23 poultry, dairy products, flower bulbs, or other
24 nursery products and other agricultural products
25 designed to be used for food purposes, including in
26 the term "farm products" also cotton, tobacco,
27 logs, bark, pulpwood, tannic acid wood and other
28 forest products grown, produced, or processed by
29 the farmer.
30 (5) The Division shall issue necessary rules and
31 regulations providing for the recall, transfer,
32 exchange or cancellation of "farmer" plates, when
33 vehicle bearing such plates shall be sold or
34 transferred.
35 (5a) Notwithstanding any other provision of this
36 Chapter, license plates issued pursuant to this
37 subsection at the farmer rate may be purchased for
38 any three-month period at one fourth of the annual
39 fee.
40 (6) There shall be paid to the Division annually as of
41 the first of January, the following fees for
42 "wreckers" as defined under G.S. 20-4.01(50): a
4 3 wrecker fully equipped weighing 7,000 pounds or
44 less, seventy-five dollars ($75.00); wreckers
95-LJ-16 Page 49
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 weighing in excess of 7,000 pounds shall pay one
2 hundred forty-eight dollars ($148.00). Fees to be
3 prorated quarterly. Provided, further, that nothing
4 herein shall prohibit a licensed dealer from using
5 a dealer's license plate to tow a vehicle for a
6 customer."
7 Sec. 9. G.S. 20-88(f) is repealed.
8 Sec. 10. G.S. 20-91 reads as rewritten:
9 "S 20-91. R e cord s , — application s , — r e port s or r e turn s r e quir e d of
10 carri e r s of pa sse ng e r s and prop e rt y^ Audit of vehicle
11 registrations under the International Registration Plan.
12 -fa-) — Individual — motor — v e hicl e — mil e ag e — r e cord s, — motor — v e hicl e
13 e quipm e nt — r e cord s , — motor — v e hicl e — inv e ntory — r e cords — and — motor
14 v e hicl e — r e v e nu e — r e cord s — shall — be — pr e par e d — and — maintain e d — in
15 accordanc e with rul e s and r e gulations issu e d by th e Commieeion e r .
16 Application s — £of — lic e n s ing — of — r e gist e ring — motor — v e hicl e s — in
17 North — Carolina — s hall — be — appli e d — £of^ — on — forms — approv e d — by — ^:be
18 Commi ss ion e r and — fil e d in accordanc e with rul es — and r e gulation s
19 issu e d — by the — Commission e r . Applications £ot^ lic e nsing — ot
20 r e gist e ring motor v e hicl es in North Carolina ar e acc e pt e d s ubj e ct
21 to audit .
22 (b) it — shall — be — ^he — duty — of — the — Commission e r, — by — comp e t e nt
23 auditor s , — to hav e th e book s , — r e cord s , — tax r e turn s , — application s ,
24 *nd — any — and — ail — oth e r — p e rtin e nt — r e cord s — or — docum e nt s — &i — any
25 r e gistrant — lic e n s ing — of^ — r e gist e ring motor v e hicl e s, — or that — ate
26 r e quir e d — fee — lic e n se — or — r e gi s t e r — motor — v e hicl es , und e r — febe
27 provisions of thi s Articl e , audit e d fof^ the purpo se of-
28 d e t e rmining — wh e th e r — s uch — r e gistrant — is — maintaining — acc e ptabl e
29 r e cord s , filing corr e ct application s and paying corr e ct
30 r e gi s tration f ee s or tax es a s r e quir e d .
31 Ev e ry r e gi s trant s ubj e ct to lic e nsing or r e gistration and audit
32 und e r th e provision s — of — thi s — Articl e — shall — r e tain all — p e rtin e nt
33 lic e n s ing and r e gi s tration docum e nts , book s , r e cord s , fea*
34 r e turn s , — application s and all supporting r e cords and docum e nt s on
35 which an application for lic e n s ing or r e gistration i s bas e d for a
36 p e riod of thr ee — full — r e gi s tration y e ar s. — Th e s e r e cord s — shall at
37 Ai4 — tim es — during — the — busin e s s — hour s — of — febe — day — be — subj e ct — fe©
38 audit . The Division may audit a person who registers or is
39 required to register a vehicle under the International
40 Registration Plan to determine if the person has paid the
41 registration fees due under this Article. A person who registers
4 2 a vehicle under the International Registration Plan must keep any
43 records used to determine the information provided to the
44 Division when registering the vehicle. The records must be kept
Page 50 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 for three years after the date of the registration to which the
2 records apply. The Division may examine these records during
3 business hours. If it — ins — d e t e rmin e d — th ese the records are not
4 located in North Carolina and ife — b e com e e — n e c e ssary — fof^ — th»
5 auditors — to trav e l — to th e plac e wh e r e — s uch r e cords — ar e normally
6 k e pt, an auditor must travel to the location of the records, the
7 registrant shall reimburse North Carolina for per diem and travel
8 expense incurred in the performance of s uch the audit. Wh e r e If
9 more than one registrant is audited on the same out-of-state
10 trip, the per diem and travel expense may be prorated.
11 The Commissioner may enter into reciprocal audit agreements
12 with other agencies of this State or agencies of another s tat e or
13 s tat es , jurisdiction for the purpose of conducting joint audits
14 of any registrant subject to audit under this Articl e, section.
15 (c) If an audit is conducted and it becomes necessary to assess
16 the registrant for deficiencies in registration fees or taxes due
17 based on the audit, the assessment will be determined based on
18 the schedule of rates prescribed for that registration year,
19 adding thereto and as a part thereof an amount equal to five
20 percent (5%) of the tax to be collected. If, during an audit, it
21 is determined that:
22 (1) A registrant failed or refused to make acceptable
23 records available for audit as provided by law; or
24 (2) A registrant misrepresented, falsified or concealed
25 bis^ records, then all plates and cab cards shall be
26 deemed to have been issued erroneously and are
27 subject to cancellation. The Commissioner may
28 assess the registrant for an additional percentage
29 up to one hundred percent (100%) North Carolina
30 registration fees at the rate prescribed for that
31 registration year, adding thereto and as a part
32 thereof an amount equal to five percent (5%) of the
33 tax to be collected. The Commissioner may cancel
34 all registration and reciprocal privileges.
35 As a result of an audit, no assessment shall be issued and no
36 claim for refund shall be allowed which is in an amount of less
37 than ten dollars ($10.00).
38 The notice of any assessments will be sent to the registrant by
39 registered or certified mail at the address of the registrant as
40 it appears in the records of the Division of Motor Vehicles in
41 Raleigh. The notice, when sent in accordance with the
42 requirements indicated above, will be sufficient regardless of
43 whether or not it was ever received.
95-LJ-16 Page 51
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 The failure of any registrant to pay any additional
2 registration fees or tax within 30 days after the billing date,
3 shall constitute cause for revocation of registration license
4 plates, cab cards and reciprocal privileges.
5 4-d-) — Exc e pt — i« — accordanc e — with — prop e r — judicial — ord e r, — ©i^ — as-
6 oth e rwi se — provid e d — by — law, i* — s hall — be — unlawful tof: — fehe
7 Conuniseion e r — &£ — Motor — V e hicl e s, — any — d e puty, — a ss i s tant, — ag e nt,
8 cl e rk, oth e r offic e r, e mploy ee , or form e r offic e r or e mploy ee , to
9 divulg e or mako known in any mann e r th e amount of tax paid by any
10 carrier — &i — pacc e ng e r s — ©f^ — carri e r — &i — prop e rty — as — set — forth — &f-
11 disclosed — in — a«y — application, r e port — ©f^ — r e turn — r e quir e d — ift
12 remitting — said — tax, — &f — as — oth e rwi se — di s clo se d . — Nothing — in — thi s
13 section — shall — be — constru e d — fe© — prohibit — febe — publication — of-
14 statistics, — 6© — classifi e d — as — fe© — pr e v e nt — the — id e ntification — &fr
15 particular — application s , r e port s — ©*= — r e turns, and — fehe — it e ms
16 th e r e of; — th e in s p e ction of such application s , — r e port s or r e turn s
17 by — febe — Gov e rnor, — Attorn e y — G e n e ral, — Utiliti e s — Gommission e r, — ©t
18 th e ir — ©t — tfes — duly — authoriz e d — r e pr e s e ntativ es ; — or th e — in s p e ction
19 by a l e gal r e pr e s e ntativ e of th e Stat e of th e application, — r e port
20 ©*^ — r e turn — &i — any — carri e r — ©f — pass e ng e r s — ©f^ — carri e r — ©f — prop e rty
21 which s hall bring an — action to s e t asid e or r e vi e w th e tax ba se d
22 th e r e on, ©*= — again s t — which action — ©*^ — proc ee ding bac b ee n
23 in s titut e d to r e cov e r any tax or p e nalty impos e d by this Articl e.
24 Any p e r s on, — offic e r, — ag e nt, — cl e rk, — e mploy ee , — or form e r offic e r or
25 e mploy ee violating the provision s of this se ction s hall b e guilty
26 of a misd e m e anor . — Nothing in this subs e ction or in any oth e r law
27 shall pr e v e nt th e e xchang e of information b e tw ee n th e Division of
28 Motor V e hicl es and the D e partm e nt ©f R e v e nu e wh e n s uch
29 information i s n ee d e d by e ith e r or both of said d e partm e nt s — £©i^
30 fehe purpo ses ©f prop e rly e nforcing the law s with the
31 admini s tration — ©f — which — e ith e r — ©*^ — both — ©f — s aid — departm e nt s — i*
32 charg e d . "
33 Sec. 11. G.S. 20-92 is repealed.
34 Sec. 12. G.S. 20-99(a) reads as rewritten:
35 "(a) If any tax imposed by this Chapter, or any other tax
36 levied by the State and payable to the Commissioner of Motor
37 Vehicles, or any portion of such tax, be not paid within 30 days
38 after the same becomes due and payable, and after the same has
39 been assessed, the Commissioner of Motor Vehicles shall issue an
40 order under his hand and official seal, directed to the sheriff
41 of any county of the State, commanding him to levy upon and sell
42 the real and personal property of the taxpayer found within his
43 county for the payment of the amount thereof, with the added
44 penalties, additional taxes, interest, and cost of executing the
Page 52 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 same, and to return to the Commissioner of Motor Vehicles the
2 money collected by virtue thereof within a time to be therein
3 specified, not less than 60 days from the date of the order. The
4 said sheriff shall, thereupon, proceed upon the same in all
5 respects with like effect and in the same manner prescribed by
6 law in respect to executions issued against property upon
7 judgments of a court of record, and shall be entitled to the same
8 fees for his services in executing the order, to be collected in
9 the same manner. Upon th e i s suanc e of said ord e r to th e s h e riff,
10 in th e e v e nt th e d e linqu e nt taxpay e r shall b e th e op e rator of any
11 common — carri e r — &£ — pa see ng e r e — ef — common — carri e r — &£ — prop e rty
12 v e hicl e , — th e franchis e c e rtificat e i s su e d to such op e rator shall
13 b e com e — null — and — void — and — s hall — be — canc e l e d — by — ^he — Utiliti es
14 Commission e r, — and — i^ — s hall — be — unlawful — fof — any — s uch — common
15 carri e r of pass e ng e rs — or th e op e rator of — any common carri e r of
16 prop e rty v e hicl e to continu e th e op e ration und e r s aid franchi se."
17 Sec. 13. G.S. 20-101 reads as rewritten:
18 "S 20-101. For-rhir e Certain business vehicles to be marked.
19 Ai4 — motor — v e hicl e s — lic e ns e d — as — common — carri e r s — ©*^ — contract
20 carri e r s &£ — pa sse ng e r s — &f — prop e rty, e x e mpt — for--hir e — motor
21 carri e rs, and — for^-hir e — pa s s e ng e r-'-carrying — motor — carri e rs — &£
22 gr e at e r — than — fift ee n- — pa sse ng e r — capacity — s hall — hav e — print e d — on
23 e ach sid e of th e v e hicl e in l e tt e r s not l ess than thr ee inch es in
24 h e ight — ^he — nam e — and — hom e — addr e ss — of — ^he — own e r, — ^he — c e rtificat e
25 numb e r, — p e rmit — numb e r , — of — e x e mption — numb e r — und e r — which — s aid
26 v e hicl e — irS — op e rat e d, — and — s uch — oth e r — id e ntification — as — may — be
27 r e quir e d and approv e d by th e Utiliti e s Commi ss ion A motor vehicle
28 that is subject to 49 U.S.C. Part 390, the federal motor carrier
29 safety regulations, must be marked as required by that Part. A
30 motor vehicle that is not subject to those regulations, has a
31 gross vehicle weight rating of more than 10,000 pounds, and is
32 used in intrastate commerce must have the name of the owner
33 printed on the side of the vehicle in letters not less than three
34 inches in height. "
35 Sec. 14. G.S. 20-113 is repealed.
36 Sec. 15. G.S. 20-116(e) reads as rewritten:
37 "(e) Except as provided by G.S. 20-115.1, no combination of
38 vehicles coupled together shall consist of more than two units
39 and no such combination of vehicles shall exceed a total length
40 of 60 feet inclusive of front and rear bumpers, subject to the
41 following exceptions: Said length limitation shall not apply to
42 vehicles operated in the daytime when transporting poles, pipe,
4 3 machinery or other objects of a structural nature which cannot
44 readily be dismembered, nor to such vehicles transporting such
95-LJ-16 Page 53
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 objects operated at nighttime by a public utility when required
2 for emergency repair of public service facilities or properties,
3 but in respect to such night transportation every such vehicle
4 and the load thereon shall be equipped with a sufficient number
5 of clearance lamps on both sides and marker lamps upon the
6 extreme ends of said projecting load to clearly mark the
7 dimensions of such load: Provided that vehicles designed and used
8 exclusively for the transportation of motor vehicles shall be
9 permitted an overhang tolerance front or rear not to exceed five
10 feet. Provided, that wreckers in an emergency may tow a
11 combination tractor and trailer to the nearest feasible point for
12 repair and/or storage: Provided, however, that a combination of a
13 house trailer used as a mobile home, together with its towing
14 vehicle, shall not exceed a total length of 55 feet exclusive of
15 front and rear bumpers. Provided further, that the said
16 limitation that no combination of vehicles coupled together shall
17 consist of more than two units shall not apply to trailers not
18 exceeding three in number drawn by a motor vehicle used by
19 municipalities for the removal of domestic and commercial refuse
20 and street rubbish, but such combination of vehicles shall not
21 exceed a total length of 50 feet inclusive of front and rear
22 bumpers. Provided further, that the said limitation that no
23 combination of vehicles coupled together shall consist of more
24 than two units shall not apply to a combination of vehicles
25 coupled together by a saddle mount device used to transport motor
26 vehicles in a driveway service when no more than three saddle
27 mounts are used and provided further, that equipment used in said
28 combination is approved by the safety regulations of the
29 Int e rstat e Comm e rc e Commi Bs ion Federal Highway Administration and
30 the safety regulation s — &f — th e North Carolina — Division of Motor
31 Vehicles — and — the — D e partm e nt — &4 — Transportation . rules of the
32 Division. "
33 Sec. 16. G.S. 20-123(a) reads as rewritten:
34 "(a) No motor v e hicl e shall b e driv e n upon any highway drawing
35 or having attach e d th e r e to mor e than on e trail e r or s e mitrail e r ;
36 Provid e d — that — thi s — provi s ion — shall — Rot — apply — fee — trail e r s — ROfe
37 e xc ee ding — thr ee — i« — numb e r — drawn — by — a — motor — v e hicl e — u se d — by
38 municipaliti e s — for th e r e moval of dom e stic and comm e rcial r e fus e
39 and — street — rubbi s h, — b«fe — s uch — combination — &£ — vehicl es — shall — nofe
40 exceed — a — total — l e ngth — &i — M — f ee t — inclusiv e — »f — front — aftd — r e ar
41 bump e r s ; — Provid e d — that — thi s — provi s ion — s hall — n©fe^ — apply — feo — a
42 combination of v e hicl es coupl e d tog e th e r by a saddl e mount d e vic e
43 us e d to transport motor v e hicl es — in a driv e away s e rvice wh e n no
44 mor e — than — two — saddl e — mount s — ai=e — u se d — a«d — provid e d — furth e r — that
Page 54 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 e quipm e nt — u se d — i« †” s aid — combination — i^ — approved — by — febe — saf e ty
2 r e gulation s of th e Int e r s tat e Comm e rc e Commi ss ion and th e s af e ty
3 r e gulation s of th e North Carolina Divi s ion of Motor V e hicl es and
4 ^tbe — D e partm e nt — o£ — Tran s portation . — Nothing — h e r e in — s hall The
5 limitations in G.S. 20-116 on combination vehicles do not
6 prohibit the towing of farm trailers not exceeding three in
7 number nor exceeding a total length of 50 feet during the period
8 from one-half hour before sunrise until one-half hour after
9 sunset provid e d that when a red flag of at least 12 inches square
10 s hall b e is prominently displayed on the last vehicle. The towing
11 of farm trailers and equipment a s h e r e in p e rmitt e d shall not bo
12 applicabl e allowed by this subsection does not apply to
13 interstate or federal numbered highways."
14 Sec. 17. G.S. 20-130. 1(b) (13) reads as rewritten:
15 "(13) Afty — light s — that — may — be — pr es crib e d — by — the
16 Int e rstat e Comm e rc e Commission; A light
17 required by the Federal Highway
18 Administration; " .
19 Sec. 18. G.S. 20-215.1 reads as rewritten:
20 "S 20-215.1. Definitions.
21 Unl e ss th e cont e xt oth e rwis e r e quir e s, — th e following t e rms and
22 phra ses s hall — hav e , fof^ — the — purpo se — &f — this — Articl e , the
23 following — m e aning ; The following definitions apply in this
24 Article:
25 (1) 'Migratory Migratory farm work e r ' m e ans any worker.
26 — An individual b e ing transport e d by motor carri e r
27 to oi^ from e mploym e nt who is employed in
28 agriculture.
29 (2) 'Motor Motor carrier of migratory farm work e rs'
30 m e ans any p e rson, — firm or corporation workers. — A
31 person who or which for compensation transports at
32 any one time in North Carolina five or more
33 migratory farm workers to or from their employment
34 by any motor vehicle, other than a passenger
35 automobile or station wagon, — e xc e pt a wagon. The
36 term does not include any of the following:
37 a_^ A migratory farm worker who is transporting
38 him se lf — &^ his or her immediate family, — but-
39 do e s net includ e any "common carri e r"
40 c e rtifi e d family.
41 b^ A carrier of passengers regulated by the North
42 Carolina Utilities Commission or the
43 Int e r s tat e Comm e rc e Commission; — provid e d, — the
44 provision s of thi s Articl e shall not apply to
95-LJ-16 Page 55
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 tbe United States Department of^
2 Transportation.
3 c_^ The transportation of migratory farm workers
4 on a vehicle ovmed by a farmer when s uch the
5 migratory farm workers are employed or to be
6 employed by the farmer to work on bie — own a
7 farm oi? — farm owned or controlled by him . the
8 farmer.
9 (3) Repealed by Session Laws 1973, c. 1330, s. 39."
10 Sec. 19. G.S. 20-279.32 reads as rewritten:
11 "S 20-279.32. Exceptions.
12 This Articl e , — e xc e pt — i4« — provi s ion s — »€ — to th e — filing of proof
13 of financial r es pon s ibility by a common carri e r and its driv e rs,
14 do es — ftot — apply — to — »»y — v e hicl e — op e rat e d — und e r — a — p e rmit — &^
15 c e rtificat e — &i — conv e ni e nc e — ©*= — n e c es sity — i s su e d — by — the — North
16 Carolina — Utiliti e s — Commi ss ion, — ©i^ — by — the — Int e rstat e — Comm e rc e
17 Commission, — if public liability and prop e rty damag e insuranc e for
18 th e prot e ction of — th e public — Le — r e quir e d to b e carri e d upon — i4^
19 Article does not apply to a motor vehicle registered under G.S.
20 20-382 or G.S. 20-382.1 by a for-hire motor carrier. This Article
21 does not apply to any motor vehicle owned by the State of North
22 Carolina, nor does it apply to the operator of a vehicle owned by
23 the State of North Carolina who becomes involved in an accident
24 while operating the state-owned vehicle if the Commissioner
25 determines that the vehicle at the time of the accident was
26 probably being operated in the course of the operator's
27 employment as an employee or officer of the State. This Article
28 does not apply to any motor vehicle owned by a county or
29 municipality of the State of North Carolina, nor does it apply to
30 the operator of a vehicle owned by a county or municipality of
31 the State of North Carolina who becomes involved in an accident
32 while operating such vehicle in the course of the operator's
33 employment as an employee or officer of the county or
34 municipality. This Article does not apply to the operator of a
35 vehicle owned by a political subdivision, other than a county or
36 municipality, of the State of North Carolina who becomes involved
37 in an accident while operating such vehicle if the Commissioner
38 determines that the vehicle at the time of the accident was
39 probably being operated in the course of the operator's
40 employment as an employee or officer of the subdivision providing
41 that the Commissioner finds that the political subdivision has
42 waived any immunity it has with respect to such accidents and has
4 3 in force an insurance policy or other method of satisfying claims
44 which may arise out of the accident. This Article does not apply
Page 56 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 to any motor vehicle owned by the federal government, nor does it
2 apply to the operator of a motor vehicle owned by the federal
3 government who becomes involved in an accident while operating
4 the government-owned vehicle if the Commissioner determines that
5 the vehicle at the time of the accident was probably being
6 operated in the course of the operator's employment as an
7 employee or officer of the federal government."
8 Sec. 20. G.S. 20-317 reads as rewritten:
9 "$ 20-317. Insurance required by any other law; certain operators
10 not affected.
11 This Article shall not be held to apply to or affect policies
12 of automobile insurance against liability which may now or
13 hereafter be required by any other law of this State, and such
14 policies, if they contain an agreement or are endorsed to conform
15 to the requirements of this Article, may be certified as proof of
16 financial responsibility under this Articl e ; — provid e d, — how e v e r,
17 that nothing contain e d in thi s Articl e shall affect op e rator s of
18 motor — v e hicl es — that — afe — new — &¥^ — her e aft e r — r e quir e d — ^e — furnish
19 e vid e nc e — &£ — in s uranc e — &f — financial — r es ponsibility — ^e — t4ie — North
20 Carolina Utiliti es Commiseion of: t4ie Int e r s tat e Comm e rc e
21 Commi s sion or both, — but to th e e xt e nt that any insuranc e policy,
22 bond — of — oth e r — agr ee m e nt — fil e d — with — ef — c e rtifi e d — ^o — ^be — North
23 Carolina Utiliti e s — Commi ss ion or — Int e r s tat e Comm e rc e Commi ss ion
24 as — e vid e nc e of — financial — r es ponsibility affords — l e ss prot e ction
25 te — t^he — public — than — ^he — financial — r es pon s ibility — r e quir e d — 1« — be
26 c e rtifi e d to th e Divi s ion of Motor V e hicl es — und e r this Articl e
27 ac — a — condition pr e c e d e nt to — r e gistration of motor v e hicl e s, — ^rhe
28 amounts , — provi s ion s — and — t e rm s — ei — such — policy, — bend — ef — oth e r
29 agr ee m e nt s o c e rtifi e d s hall b e d ee m e d to b e modifi e d to conform
30 to th e financial r es ponsibility r e quir e d to b e prov e d und e r thi s
31 Articl e — as — a — condition — pr e c e d e nt — fee — r e gi s tration — ef — motor
32 v e hicl e s — in thi s — Stat e. — ife — i s th e — int e ntion of this — s e ction to
33 r e quir e — own e r s — &£ — se lf- — prop e ll e d motor v e hicl e s — r e gi s t e r e d — in
34 thi s — Stat e — and — op e rat e d — und e r — p e rmits — from — febe — North — Carolina
35 Utiliti e s — Commis s ion — &f — febe — Int e r s tat e — Comm e rc e Commi s sion — fee
36 s how and maintain proof of — financial r e spon s ibility which i s at
37 l e a s t e qual to th e proof of financial r e spon s ibility r e quir e d of
38 oth e r own e r s of se lf-prop e ll e d motor v e hicl es r e gist e r e d in thi s
39 Stat e. Article. This Article applies to vehicles of motor
40 carriers required to register with the Division under G.S. 20-382
41 or G.S. 20-382. lonly to the extent that the amount of financial
42 responsibility required by this Article exceeds the amount
43 required by the United States Department of Transportation. "
44 Sec. 21. G.S. 20-376 reads as rewritten:
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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 "S 20-376. Definitions.
2 Ae — u se d — i« — thi s — Articl e , The following definitions apply in
3 this Article;
4 -(-i4- "C e rtificat e " m e ans a c e rtificat e &f public
5 conv e ni e nc e — and — n e c ess ity — i s su e d — by — feiie — North
6 Carolina Utiliti es Conuni s sion pur s uant to the
7 provi s ion s — of — Chapt e r — &2 — to — a — conunon — carri e r — by
8 motor v e hicl e.
9 -f24- "C e rtificat e — of — Ex e mption" — m e ans — a — c e rtificat e
10 i ss u e d — by — febe — Division — authorizing — tran s portation
11 se rvic e s which ar e e x e mpt from e conomic r e gulation s
12 und e r th e Public Utiliti e s Act .
13 4^ R e p e al e d by S e s s ion Law s — 1.**3 — (R e g . — S ess. , — 1994 ) ,
14 c . 631, c . 5 .
15 44-)- "Common carri e r by motor v e hicl e " m e ans — any p e r s on
16 which — hold s — it se lf — out — to — febe — g e n e ral — public — to
1,7 e ngag e — in — the — transportation — by — motor — v e hicl e — in
18 intra s tat e — comm e rc e — of — p e r s on s — of — prop e rty — Of — any
19 cla ss — or class es — th e r e of — for comp e n s ation, — wh e th e r
20 ov e r r e gular oi^ irr e gular rout es , e xc e pt ae^
21 e x e mpt e d in G . S . 63i^260 .
22 4-5-)- "Contract — carri e r — by — motor — v e hicl e " — m e an s — any
23 p e r s on — which, und e r — an — individual — contract — &^
24 agr ee m e nt with anoth e r p e r s on and with s uch
25 additional p e r s on s — a s may b e approv e d by th e North
26 Carolina Utiliti e s Commi ss ion, e ngag e s in feh«
27 tran s portation oth e r than the tran s portation
28 r e f e rr e d to — in s ubdivi s ion — (-4-) — of this — s e ction, — by
29 motor v e hicl e of p e rson s or prop e rty in intrastat e
30 comm e rc e — fof^ — comp e n s ation, — e xc e pt — ae — e x e mpt e d — in
31 C . S . 63^360 .
32 44^ Ropoalod by Soccion Laws 1993 — (Rog . — S e cc . , — 1994) ,
33 c . 6 3 1, B . 5 .
34 -f-5-)- "Ex e mpt carri e r" m e ans any p e rson providing
35 tran s portation — by — motor — v e hicl e — £^f — comp e nsation
36 which — ie — d e clar e d — to — be — e x e mpt — from — e conomic
37 r e gulation by the North Carolina Utiliti es
38 Commission or th e Int e rstat e Comm e rc e Commission .
39 -f-&-)- "For^hir e carri e r" — m e an s any p e rson e ngag e d in th e
40 transportation — of — p e rsons — &f — prop e rty — by — motor
41 v e hicl e for comp e n s ation .
42 4^ "For e ign comm e rc e " m e ans comm e rc e b e tw ee n any plac e
43 -in — the — Unit e d — Stat es — and — any — plac e — in — a — for e ign
Page 58 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 country, — &e — b e tw ee n — plac es — in — ^be — Unit e d — Stat es
2 through any for e ign country .
3 ( 10) through — H.2-) — Ropoal e d by — S es sion Laws — l*M — (R e g .
4 S e es . , 1994), c . 621, s . 5 .
5 ( 13) "Int e r s tat e — conun e rc e " — meaAS — conun e rc e — b e tw ee n — any
6 plac e in a stat e and any plac e in anoth e r s tat e or
7 b e tw ee n plac es — in — the — same — s tat e — through — anoth e r
9 ( 14 ) "Intra s tat e comm e rc e " m e ans comm e rc e b e tw ee n points
10 »ad — ov e r — a — rout e — of^ — within — a — t e rritory — wholly
11 within thi s — Stat e , — which comm e rc e is not a part of
12 a — prior — &f — s ub se qu e nt — mov e m e nt — to — of — from — points
13 out s ide — &i — this — Stat e — in — int e rstat e — of — for e ign
14 comm e rc e , — and — includ es — aJr4 — transportation — within
15 thi s Stat e — £of — comp e nsation — in int e rstat e — or-
16 for e ign comm e rc e which hac b ee n e x e mpt e d — by
17 Congr e s s from f e d e ral r e gulation .
18 ( 15) "Intrastat e op e ration s " m e an s th e transportation of
19 p e rsons or prop e rty for comp e nsation in intra s tat e
20 comm e rc e.
21 ( 16) "Motor — carri e r" — m e ans — both — a — for^-hir e — carri e r by
22 motor — v e hicl e — and — a — privat e — carri e r — by — motor
23 v e hicl e.
24 ( 17) , 44«^ R e p e al e d — by — S ess ion — l^a^^ 1**3 (R e g .
25 S e sc . , 1994), c . 631, c . 5 .
26 ( 19 ) "P e rmit" — m e an s — a — p e rmit — issu e d — by — ^be — North
27 Carolina — Utiliti e s Commission — pur s uant — 1« — the
28 provi s ion s — of Chapt e r 63 — to a contract carri e r by
29 motor v e hicl e.
30 ( 3 0) R e p e al e d by S e ssion Laws 1993 — (Reg . — Socs . , — 1994) ,
31 c . 631, c . 5 .
32 (31 ) "Privat e carri e r" m e an s any p e r s on not includ e d in
33 the — d e finitions — &i — common — carri e r — of — contract
34 carri e r, which tran s port s in intra s tat e comm e rc e in
35 it s own v e hicl e or v e hicl es prop e rty of which such
36 p e r s on i s — th e own e r, — l e s see , — or bail ee , — wh e n s uch
37 tran s portation — is — £of — the — purpos e — »£ — sal e , — l e a se ,
38 r e nt — Of — bailm e nt, — of — wh e n — &ueh — tran s portation — ic-
39 pur e ly an incid e ntal adjunct to seme oth e r
40 e stabli s h e d privat e bu s in ess own e d and op e rat e d by
41 s uch — p e r s on — oth e r — than — the — tran s portation — ei-
42 prop e rty for comp e n s ation .
43 ( 3 3) R e p e al e d by S e ssion Laws 1993 — (R e g . S e es . , — 1994) ,
44 c . 631, c . 5 .
95-LJ-16 Page 59
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 " ( 1 ) Federal safety regulations. — The federal motor
2 carrier safety regulations contained in 49 U.S.C.
3 Subchapter B, Parts 350 through 399.
4 (2 ) Foreign commerce. — Commerce between any of the
5 following!
6 a^ A place in the United States and a place in a
7 foreign country.
8 b^ Places in the United States through any
9 foreign country.
10 (3) Interstate commerce. — Commerce between any of the
11 following;
12 a^ A place in a state and a place in another
13 state.
14 b^ Places in the same state through another
15 state.
16 (4 ) Intrastate commerce. — Commerce that is between
17 points and over a route wholly within this State
18 and is not part of a prior or subsequent movement
19 to or from points outside of this State in
20 interstate or foreign commerce. "
21 Sec. 22. G.S. 20-378 is repealed.
22 Sec. 23. G.S. 20-379 reads as rewritten:
23 "S 20-379. To — inv e stigat e — Bo^ef — carri e r s — uadef — its — control ;
24 visitation and insp e ction . Division to audit motor carriers for
25 compliance.
26 -(-a-) — The Division shall — from tim e to tim e visit th e plac es — &i-
27 business — aftd — inv e stigat e — febe — book s — and — pap e r s — of — 344 — motor
28 carri e rs to ascortain if all th e ord e rs, rul e s and r e gulations of
29 trbe — North — Carolina — Utiliti es — Commission — afid — febe — Divi s ion — hav e
30 been complied with, — aftd — shall — hav e — full — pow e r and authority to
31 e xamin e a44 offic e r s , ag e nt s and — employ ees &f s uch — motor
32 carriers, — and all oth e r p e r s on s , — und e r oath or oth e rwi se , — and to
33 compel — tfee — production of — pap e r s — and th e att e ndanc e of witn e ss es
34 to obtain th e information necocsary for carrying into e ff e ct and
35 oth e rwis e e nforcing th e provisions of thi s Articl e and Chapt e r 62
36 of th e G e n e ral Statut e s .
37 -fJs-) — Officers — »f — th e Division may during — aii — roasonablo hour s
38 e nt e r — upon — any — promis es — occupi e d — by — any — motor — carri e r — £o*^ — th&
39 purpo se — &i — making th e — e xamination s — and t es t s — and e xorcising any
40 power — provid e d — fo*^ — in — thi s — Articl e — a«d — i« — Chapt e r — 63 — &i — febe
41 G e n e ral — Statut es , — and may — s e t up — and us e — on — such pr e mi ses — any
42 apparatu s — and — applianc es — n e c e ssary — ther e for . — Such motor — carri e r
43 shall — have — fcbe — right — fee — be — repr e s e nt e d — afe — febe — making — oi — such
44 e xaminations, — t e st s and in s pection s.
Page 60 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA . SESSION 1995
1 The Division must periodically audit each motor carrier to
2 determine if the carrier is complying with this Article. In
3 conducting the audit, the Division may examine a person under
4 oath, compel the production of papers and the attendance of
5 witnesses, and copy a paper for use in the audit. An employee of
6 the Division may enter the premises of a motor carrier during
7 reasonable hours to enforce this Article. When on the premises
8 of a motor carrier, an employee of the Division may set up and
9 use equipment needed to make the tests required by this Article. "
10 Sec. 24. G.S. 20-380 reads as rewritten:
11 "$ 20-380. *o Division may investigate accidents involving motor
12 carri e r s ; to carriers emd promote general safety program.
13 The Division may conduct a progremi of accident prevention and
14 public safety covering all motor carriers with special emphasis
15 on highway safety and transport safety and may investigate the
16 causes of any accident on a highway involving a motor carrier.
17 Any information obtained upon s uch in an investigation shall be
18 reduced to writing and a report thereof filed in the office of
19 the Division, which shall be subject to public inspection but
20 such report shall not be admissible in evidence in any civil or
21 criminal proceeding arising from such accident. The Division may
22 adopt rules a»d — r e gulation s for the safety of the public as
23 affected by motor carriers and the safety of motor carrier
24 employees. The Division shall cooperate with and coordinate its
25 activities for motor carriers with other programs — &i — ^be — North
26 Carolina — Utiliti es — Commi ss ion, — ^he North — Carolina — Insuranc e
27 D e partm e nt, — the — North — Carolina — Industrial — Commission — and — oth e r
28 agencies and organizations engaged in the promotion of highway
29 safety and employee safety."
30 Sec. 25. G.S 20-381 reads as rewritten:
31 "S 20-381. Additional Specific powers and duties of Division
32 applicable to motor v e hicl es, carriers .
33 The Division 4s — h e r e by — v es t e d with has the following powers
34 and duti es: duties concerning motor carriers:
35 (1) To prescribe qualifications and maximum hours of
36 service of drivers and their h e lp e r s , — and — rul es
37 r e gulating saf e ty of helpers.
38 ( la) To set safety standards for op e ration and
39 e quipm e nt; — aad — in — the — int e r es t — &i — uniformity — &i-
40 intrastat e — and — int e rstat e — rul es and — r e gulation s
41 applicabl e within th e Stat e with r e sp e ct to maximum
42 hours — &i — se rvic e — &£ — v e hicl e — driv e rs — and — th e ir
43 h e lp e rs, — and s af e ty of op e ration and e quipm e nt, — ^be
44 Divi s ion — may — adopt — and — e nforc e the — rul es — and
95-LJ-16 Page 61
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 r e gulation s — adopt e d and promulgat e d by — febe — Unit e d
2 Stat e s — D e partm e nt — ei — Transportation — with — r es p e ct
3 th e r e to, insofar — ac it — finds — the — &a«e — 1« — be
4 practical — and advantag e ou s — for application — in thi s
5 Stat e — and — not — in — conflict — with — this — Articl e. — in
6 ord e r — te — promot e — s af e ty — &£ — op e ration — »£ — motor
7 carri e r s , — fehe — Division — may — avail — it se lf — &i — the
8 assi s tanc e of any oth e r ag e ncy of th e Stat e having
9 sp e cial — knowl e dg e of — such matt e rs — and — it may mak e
10 s uch vehicles of motor carriers engaged in foreign,
11 interstate, or intrastate commerce over the
12 highways of this State and for the safe operation
13 of these vehicles. The Division may stop and
14 inspect a vehicle to determine if it is in
15 compliance with these standards and may conduct any
16 investigations and tests a s may b e d ee m e d it finds
17 necessary to promote the safety of equipment and
18 the safe operation on the highway of v e hicl e s upon
19 th e highways , these vehicles.
20 ( la) To enforce this Article, rules adopted under this
21 Article, and the federal safety regulations.
22 (2) Th e Division and it s duly authoriz e d in s p e ctor s and
23 ag e nt s shall hav e authority at any tim e to To enter
24 upon the premises of a«y a motor carri e r, — subj e ct
25 to th e provi s ions of thi s Articl e , — for th e purpos e
26 Gi — insp e cting — any carrier to inspect a motor
27 vehicle a«4 or any equipment used by s uch the motor
28 carri e rs i« — the — tran s portation — &f- carrier in
29 transporting passengers and — prop e rty, or prop e rty
30 and property.
31 (2a) To prohibit the use by any a motor carrier of any
32 motor vehicle or part s — th e r e of — &t motor vehicle
33 equipment th e r e on — adjudg e d — by — s uch — ag e nt s — and
34 in s p e ctor s — to — be the Division finds fee — be unsafe
35 for use in the transportation of passengers and or
36 property upon — the — public — highway s — oi — thi s — Stat e ;
37 and wh e n — s uch — ag e nt s — of — insp e ctor s — s hall — di s cov e r
38 any — motor — v e hicl e — &f — such — motor — carri e r on a
39 highway. If an agent of the Division finds a motor
40 vehicle of a motor carrier in actual use upon the
41 highways in the transportation of passengers and or
42 property to be unsafe or any parts thereof or any
43 equipment thereon to be unsaf e , — s uch — ag e nt s — &;e-
44 in s p e ctor s — may, — ii — th e y — a*^ unsafe and is of the
Page 62 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 opinion that further use of such vehicle, parts or
2 equipment are inuninently dangerous, the agent may
3 B top s uch v e hicl e and require the operator thereof
4 to discontinue its use and to substitute therefor a
5 safe vehicle, parts or equipment at the earliest
6 possible time and place, having regard for both the
7 convenience and the safety of the passengers And or
8 property. When an inspector or agent stops a motor
9 vehicle on the highway, under authority of this
10 section, and the motor vehicle is in operative
11 condition and its further movement is not dangerous
12 to the passengers and or property and or to the
13 users of the highways, it shall be the duty of the
14 inspector or agent to guide the vehicle to the
15 nearest point of substitution or correction of the
16 defect. Such agents or inspectors shall also have
17 the right to stop any motor vehicle which is being
18 used upon the public highways for the
19 transportation of passengers ««4 or property by a
20 motor carrier subject to the provisions of this
21 Article and to eject therefrom any driver or
22 operator who shall be operating or be in charge of
23 such motor vehicle while under the influence of
24 intoxicating — liquor s, alcoholic beverages. It
25 shall be the duty of all inspectors and agents of
26 the Division to make a written report, upon a form
27 prescribed by the Division, of inspections of all
28 motor equipment and a copy of each such written
29 report, disclosing defects in such equipment,
30 shall be served promptly upon the motor carrier
31 operating the same, either in person by the
32 inspector or agent or by mail. Such agents and
33 inspectors shall also make and serve a similar
34 written report in cases where a motor vehicle is
35 operated in violation of th e laws of this Stat e or
36 of th e ord e rs, — rul es — and r e gulation s — of th e North
37 Carolina — Utiliti es — Commission — &f — Division , this
38 Chapter.
39 (3) To relieve the highways of all undue burdens and
40 safeguard traffic thereon by promulgating adopting
41 and enforcing r e a s onabl e — rul es , — r e gulation s rules
42 and orders designed and calculated to minimize the
43 dangers attending transportation on the highways of
44 all commodities including explosives or highway
95-LJ-16 Page 63
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 flanunable or combustible liquids, substances or
2 gases."
3 Sec. 26. G.S. 20-382 reads as rewritten:
4 "S 20-382. Registration of for-hire interstate motor carriers
5 and verification that their for-hire vehicles are insured.
6 (a) Registration. — A for-hire motor carrier may not operate
7 a for-hire motor vehicle in interstate commerce in this State
8 unless the motor carrier has complied with all of the following
9 requirements:
10 (1) Registered its operations with the Division by
11 doing one of the following:
12 a. Filing a copy of the certificate of authority
13 issued to it by the Int e rstat e — Comm e rc e
14 Commiesion United States Department of
15 Transportation allowing it to operate in this
16 State and any amendments to that authority.
17 b. Certifying to the Division that it carries
18 only items that are not regulated by the
19 Int e rstat e — Comm e rc e — Commission . United States
20 Department of Transportation.
21 (2) Verified, in accordance with subsection (b) or (c)
22 of this section, that it has insurance for each
23 for-hire motor vehicle it operates.
24 (3) Paid the fees set in G.S. 20-385.
25 (b) Insurance Verification for ICC-Rogulat e d Federally
26 Regulated Motor Carriers. — A for-hire motor carrier that
27 operates a for-hire motor vehicle in interstate commerce in this
28 State, is regulated by the Int e rstate Comm e rc e Commission, United
29 States Department of Transportation, and designates this State as
30 its registration state must obtain a receipt from the Division
31 verifying that each for-hire motor vehicle the motor carrier
32 operates in any jurisdiction is insured. To obtain a receipt, the
33 motor carrier must apply annually to the Division during the
34 application period and state the number of for-hire motor
35 vehicles the motor carrier intends to operate in each
36 jurisdiction during the next calendar year. The certificate of
37 authority issued to the motor carrier by the Int e r s tate Comm e rc e
38 Commission United States Department of Transportation is proof
39 that the motor carrier has insurance for its for-hire motor
40 vehicles.
41 The motor carrier must keep a copy of the receipt in each of
42 its for-hire motor vehicles. The motor carrier may transfer the
4 3 receipt from one for-hire motor vehicle to another as long as the
44 total number of for-hire motor vehicles operated in any
Page 64 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 jurisdiction and in all jurisdictions does not exceed the number
2 stated on the receipt.
3 A motor carrier may operate more for-hire motor vehicles in a
4 jurisdiction than stated in its most recent annual application
5 only if the motor carrier files another application with the
6 Division and obtains a receipt stating the increased number. A
7 motor carrier that obtains a receipt for an increased number of
8 for-hire motor vehicles must put a copy of the new receipt in
9 each of its for-hire motor vehicles. The new receipt replaces
10 rather than supplements the previous receipt.
11 (c) Insurance Verification for Nonregulated Motor Carriers. —
12 A for-hire motor carrier that operates a for-hire motor vehicle
13 in interstate commerce in this State and is exempt from
14 regulation by the Int e rstat e — Comm e rc e — Commi ss ion United States
15 Department of Transportation must verify to the Division that
16 each for-hire motor vehicle the motor carrier operates in this
17 State is insured. To do this, the motor carrier must obtain
18 annually for each for-hire motor vehicle a cab card approved by
19 the Commissioner and a North Carolina identification stamp issued
20 by the Division. To obtain an identification stamp, the motor
21 carrier must apply annually to the Division during the
22 application period for an identification stamp for each for-hire
23 motor vehicle the motor carrier intends to operate in this State
24 during the next 12-month period beginning February 1.
25 The motor carrier must place the identification stamp on the
26 cab card and keep the cab card in the for-hire motor vehicle for
27 which it was issued. An identification steunp is issued for a
28 specific for-hire motor vehicle and is not transferable from one
29 for-hire motor vehicle to another.
30 A motor carrier may operate in this State a for-hire motor
31 vehicle for which it did not obtain an identification stamp
32 during the most recent annual application period only if it
33 obtains for that vehicle either a cab card and identification
34 stamp or an emergency permit. A motor carrier may obtain an
35 additional identification stamp after the close -of the annual
36 application period by filing an application for it with the
37 Division. An identification stamp issued after the close of the
38 annual application period expires the same date as one issued
39 during the annual application period.
40 A motor carrier may obtain an emergency permit by filing an
41 application for it with the Division. An emergency permit allows
42 the motor carrier to operate a for-hire motor vehicle in this
43 State without a cab card and identification stamp between the
95-LJ-16 Page 65
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 time the motor carrier has applied for an identification stamp
2 and the time the Division issues the identification stamp."
3 Sec. 27. G.S. 20-382.1 reads as rewritten:
4 "S 20-382.1. Registration of for-hire intrastate motor carriers
5 and verification that their vehicles are insured.
6 (a) Registration. — A for-hire motor carrier may not operate
7 a for-hire motor vehicle in intrastate commerce in this State
8 unless the motor carrier has complied with all of the following
9 requirements :
10 ( 1 ) Registered its operations with the Stat e by doing
11 on e of th e following ;
12 *^ Obtaining a c e rtificat e or a p e rmit — from th e
13 North — Carolina — Utiliti e s — Commieeion, — L4 — fehe
14 motor carri e r haul s r e gulat e d it e m s.
15 fe^ Obtaining a c e rtificat e of e x e mption from th e
16 Divi s ion, Li — the — motor — carri e r — haul s — only
17 it e ms — that — »pe — n©t — r e gulat e d — by — tiie — North
18 Carolina Utiliti e s Commi ss ion . Division.
19 (2) Verified, in accordance with subsection (b) of this
20 section, that it has insurance for each for-hire
21 motor vehicle it operates in this State.
22 (3) Paid the fees set in G.S. 20-385.
23 (b) Insurance Verification. — A for-hire motor carrier that
24 operates a for-hire vehicle in intrastate commerce in this State
25 must verify to the Division that each for-hire motor vehicle it
26 operates in this State is insured. To do this, the motor carrier
27 must submit an insurance verification form to the Division and
28 must file annually with the Division a list of the for-hire
29 vehicles it operates in this State."
30 Sec. 28. G.S. 20-384 reads as rewritten:
31 "S 20-384. Carri e r e iB»e4 comply w4^b saf e ty rul es and
32 r e gulation s. Penalty for certain violations.
33 -(-a-) Scop e. — -- Th e Divi s ion may adopt highway s af e ty rul es — f^t
34 ail — for-hir e — motor — carri e r — v e hicl es — and — ail — privat e — carri e r
35 v e hicl e s — e ngag e d — i« — int e r s tat e — comm e rc e — and — intra s tat e — comm e rc e
36 over — the — highway s — of — North — Carolina — wh e th e r — common — carri e r s ,
37 contract carri e r s , — e x e mpt carri e r s , — or privat e carri e r s.
38 -^ Infraction . — — ■A motor carrier who fails to conduct a
39 safety inspection of a vehicle as required by 49 C . F . R . Part 396,
40 396 of the federal Motor — Carri e r — Saf e ty — Regulation s , safety
41 regulations or who fails to mark a vehicle that has been
42 inspected as required by that Part commits an infraction and, if
43 found responsible, is liable for a penalty of up to fifty dollars
44 ($50.00)."
Page 66 95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 Sec. 29. G.S. 20-385 reads as rewritten:
2 "S 20-385. Fee schedule.
3 (a) Amounts. —
4 (1) Verification by a for-hire motor
5 carrier of insurance for each for-hire
6 motor vehicle operated in this State $ 1.00
7 (2) Application by an intrastate motor carrier
8 for a c e rtificat e of e x e mption registration
9 with the Division 25.00
10 (3) Certification by an interstate motor carrier
11 that it is not regulated by the iGQ United
12 States Department of Transportation 25.00
13 (4) Application by an interstate motor carrier
14 for an emergency permit
15 10.00.
16
17 (b) Reciprocal Agreements. — The fee set in subdivision
18 (a)(1) of this section does not apply to the verification of
19 insurance by an interstate motor carrier regulated by the
20 Int e rstat e — Comm e rc e — Commission United States Department of
21 Transportation if the Division had a reciprocal agreement on
22 November 15, 1991, with another state by which no fee is imposed.
23 The Division had reciprocal agreements as of that date with the
24 following states: California, Delaware, Indiana, Maryland,
25 Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New
26 Jersey, Pennsylvania, Texas, and Vermont."
27 Sec. 30. G.S. 20-393 reads as rewritten:
28 "S 20-393. Disclosure of information by employee of Division
29 unlawful.
30 It shall be unlawful for any agent or employee of the Division
31 knowingly and willfully to divulge any fact or information which
32 may come to his knowledge during the course of any exeunination or
33 inspection made under authority of this Article, except to the
34 Division or as may be directed by the Division or upon approval
35 of a r e qu e st to th e Division by th e Utiliti e s Commission or by a
36 court or judge thereof."
37 Sec. 31. G.S. 20-118(b)(3) reads as rewritten:
38 "(3) The gross weight imposed upon the highway by any
39 axle group of a vehicle or combination of vehicles
40 shall not exceed the maximum weight given for the
41 respective distance between the first and last axle
42 of the group of axles measured Icngitudinally to
43 the nearest foot as set forth in the following
44 table:
95-LJ-16 Page 67
GENERAL ASSEMBLY OF
NORTH CAROLINA
SESSION 1995
1
Distance
Maximum
Weight in
Pounds for any Group of Two
2
Between
or More
Consecutive Axles
3
Axles*
2 Axles
3 Axles
; 4 Axles
5 Axles
6 Axles
7 Axles
4
4
38000
5
5
38000
6
6
38000
7
7
38000
8
8 or
less
38000
38000
9
more
than
8
38000
42000
10
9
39000
42500
11
10
40000
43500
12
11
44000
13
12
45000
50000
14
13
45500
50500
15
14
46500
51500
16
15
47000
52000
17
16
48000
52500
58000
18
17
48500
53500
58500
19
20
18
19
49500
50000
54000
54500
59000
60000
21
20
51000
55500
60500
66000
22
21
51500
56000
61000
66500
23
22
52500
56500
61500
67000
24
23
53000
57500
62500
68000
25
24
54000
58000
63000
68500
74000
26
25
54500
58500
63500
69000
74500
27
26
55500
59500
64000
69500
75000
28
27
56000
60000
65000
70000
75500
29
28
57000
60500
65500
71000
76500
30
29
57500
61500
66000
71500
77000
31
30
58500
62000^
66500
72000
77500
32
31
59000
62500^tA
67500
72500
78000
33
32
60000
63500^tit
68000
73000
78500
34
33
64000^
68500
74000
79000
35
34
64500:*-fc
69000
74500
80000
36
35
65500^ti
70000
75000
37
36
66000**
70500
75500
38
37
66500**
71000
76000
39
38
67500**
72000
77000
40
39
68000
72500
77500
41
40
68500
73000
78000
42
41
69500
73500
78500
43
42
70000
74000
79000
44
43
Page
68
70500
75000
80000
95-LJ-16
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 44 71500 75500
2 45 72000 76000
3 46 72500 76500
4 47 73500 77500
5 48 74000 78000
6 49 74500 78500
7 50 75500 79000
8 51 76000 80000
9 52 76500
10 53 77500
11 54 78000
12 55 78500
13 56 79500
14 57 80000
15 *Distance in Feet Between the Extremes of any Group of Two or
16 More Consecutive Axles.
17 **See exception in G.S. 20-118{c) ( 1 ) . "
18 Sec. 32. G.S. 20-135.1 is repealed.
19 Sec. 33. G.S. 20-179. 3(b) (1) reads as rewritten:
20 "(1) A person convicted of the offense of impaired
21 driving under G.S. 20-138.1 is eligible for a
22 limited driving privilege if:
23 a. At the time of the offense he held either a
24 valid driver's license or a license that had
25 been expired for less than one year;
26 b. At the time of the offense he had not within
27 the preceding seven years been convicted of an
28 offense involving impaired driving;
29 c. Punishment Level Three, Four, or Five was
30 imposed for the offense of impaired driving;
31 d. Subsequent to the offense he has not been
32 convicted of, or had an unresolved charge
33 lodged against him for, an offense involving
34 impaired driving; and
35 e. The person has obtained and filed with the
36 court a substance abuse assessment of the type
37 s p e cifi e d in G . S . — 3 0'^179(m) . required by G.S.
38 20-17.6 for the restoration of a drivers
39 license.
40 A person whose North Carolina driver's license is
41 revoked because of a conviction in another
42 jurisdiction substantially equivalent to impaired
43 driving under G.S. 20-138.1 is eligible for a
44 limited driving privilege if he would be eligible
95-LJ-16 Page 69
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 for it had the conviction occurred in North
2 Carolina. Eligibility for a limited driving
3 privilege following a revocation under G.S. 20-
4 16.2(d) is governed by G.S. 20-16 .2 (el ) . "
5 Sec. 34. This act is effective upon ratification.
Page 70 95-LJ-16
Explanation of Legislative Proposal 10
DMV Taicking Deregulation Changes
Recent changes in federal law have made many provisions of Chapter 20 of the
General Statutes that relate to motor carriers obsolete. The 1994 federal FAA
Authorization Act prohibited states from regulating rates, routes, and services of motor
carriers, other than household movers. This prohibition ended the authority of the
North Carolina Utilities Commission to regulate most intrastate motor carriers. In
response, the 1995 General Assembly enacted Chapter 523 (House Bill 941) of the
1995 Session Laws. That Chapter removed the then unenforceable statutory provisions
in the State's public utility law concerning regulation of motor carriers. The 1995
federal ICC Termination Act abolished the federal Interstate Commerce Commission
and transferred its remaining duties to the United States Department of Transportation,
to be divided between the Federal Highway Administration and a newly created Surface
Transportation Board.
This act changes various provisions in Chapter 20 to conform to the federal
changes and to make other technical changes. The changes made in response to the
recent federal legislation are in Sections 1 through 30. The statutes affected are in
numerical order in those sections for ease of location. Technical changes that are
unrelated to the deregulation of trucking begin at Section 31. The changes are
described below in a section-by-section analysis.
Section 1 rewrites G.S. 20-1 to eliminate obsolete provisions in that statute. The
statute was rewritten in 1973 as a transitional provision in the reorganization of
government that was occurring then. As part of the reorganization, what was the
Department of Motor Vehicles was merged into the Department of Transportation and
became a Division of that Department. The text of the section is therefore obsolete.
Furthermore, the Utilities Commission no longer has the power to regulate motor
carriers and the reference to that power is obsolete. The Division and the Department
of Revenue have the authority under G.S. 105 -25 9(b) (7) to exchange information.
-71-
Section 2 changes the definition of "common carriers of passengers" that is part of
the definition of passenger vehicle. It changes a reference to a franchise certificate to a
certificate of authority to match the terminology used in the utilities law and deletes a
reference to the transportation of property for the same reason. Under the utilities law,
a common carrier of passengers is a bus company (G.S. 62-3(la)), and the authority
granted to the company by a certificate of authority does not address the transportation
of property.
Section 3 adds a new definition of motor carrier that parallels the definition of
motor carrier under section 13102 of the ICC Termination Act.
Section 4 deletes obsolete definitions of exempt for-hire vehicles, common carrier
of property vehicles, private hauler vehicles, and contract carrier of property vehicles.
These definitions are all linked to categories of property-hauling trucks regulated by the
Utilities Commission; these categories and the regulation by the Utilides Commission
no longer exist.
Section 5 deletes a reference in the commercial drivers license law to common and
contract carriers and substitutes a reference to motor carriers. There is no longer a
distinction between common and contract carriers.
Section 6 repeals G.S. 20-64.1. That statute refers to the revocation of license
plates by the Ufilities Commission under provisions of law that no longer exist.
Section 7 amends G.S. 20-87(1) to remove references to common carrier, contract
carrier, and exempt for-hire passenger vehicles and substitute a generic reference to
passenger vehicles operated for compensation. It also deletes obsolete taxicab
provisions; G.S. 20-280 requires taxicabs to have financial responsibility and G.S.
160A-304 addresses the regulation of taxicabs by cities and towns.
Section 8 amends G.S. 20-88(b), the schedule of registration weight fees, to delete
references to the obsolete categories of private hauler, contract carrier, flat rate
common carrier, and exempt for-hire carrier.
-72-
Section 9 repeals 20-88(f). Its provisions about the registration of vehicles of
nonresidents are unnecessary and it contains an obsolete reference to taxation at the
common carrier rate. The amendment made to G.S. 20-88(b) by the previous section
of this act substitutes a general rate for the previous common, contract, and exempt
rate.
Section 10 amends G.S. 20-91 to reflect its current application as the authority for
audits of persons who register vehicles under the International Registration Plan. It
changes references to carriers of passengers or property to vehicles registered under the
International Registration Plan.
Section 11 repeals a statute, G.S. 20-92, that is unnecessary in part and obsolete
in the remaining part. The tax referred to in this section was primarily a gross receipts
tax that was imposed as a franchise tax from the 1930's until the last vestige of it was
eliminated effective in 1982. The category of common carrier of property no longer
exists and even if it did, the revocation of a common carrier plate for failure to pay
registration fees could be handled the same as the failure of other vehicles to pay.
Section 12 amends 20-91 to delete references to repeal of franchise issued by
Utilities Commission as an enforcement action.
Section 13 rewrites G.S. 20-101 to delete references to the Utilities Commission
and to categories of vehicles, such as exempt for-hire vehicles, that no longer exist.
Section 14 repeals G.S. 20-113 because it is obsolete. It refers to qualification
under the tax provisions of Chapter 20 for a class of service. The tax provisions and
the classifications of services, however, do not exist.
Section 15 deletes a reference in G.S. 20-1 16(e) to the Interstate Commerce
Commission and inserts a reference to the Federal Highway Administration. It also
applies the definition of "Division" and "rule".
Section 16 amends G.S. 20-123 to delete portions that are repeated in G.S. 20-
116(e) and contain obsolete references to the Interstate Commerce Commission.
-73^
Section 17 amends an exception to the prohibition on the use of red lights in
vehicles to delete a reference to the abolished Interstate Commerce Commission and
substitute a reference to the Federal Highway Administration.
Section 18 revises definitions to apply the term motor carrier of passengers
correctly.
Section 19 amends G.S. 20-279.32, the security deposit insurance provisions, to
conform the current exception for regulated motor carriers to the deregulated motor
carriers. The same group is covered under both the current and revised law.
Section 20 amends the financial responsibility law to conform the current
exception for regulated motor carriers to the deregulated motor carriers. The same
group is covered under both the current and the revised law.
Section 21 rewrites the definition section for Article 17, Motor Carrier Safety
Regulation Unit, to delete now obsolete definitions, to add a definition of federal safety
regulations for ease of reference, and to retain the definitions of foreign commerce,
interstate commerce, and intrastate commerce. Section 3 of this bill adds definitions of
for-hire motor carrier, private motor carrier, and motor carrier to G.S. 20-4.01, the
definiuon section for all of Chapter 20. The definitions in Article 17 stem from the
transfer in the eariy 1980s of part of the responsibility for regulating motor carriers
from the North Carolina Utilities Commission to the Division of Motor Vehicles.
Section 22 repeals G.S. 20-378 because it is redundant; it repeats 20-2(b).
Section 23 amends 20-379 to delete obsolete references to the North Carolina
Utilities Commission and the enforcement of Chapter 62.
Section 24 amends 20-380 to delete obsolete references to the North Carolina
Utilities Commission.
Section 25 amends 20-381 to delete obsolete references to the North Carolina
Utilities Commission.
-74-
Section 26 amends G.S. 20-382 to correct references to the Interstate Commerce
Commission.
Section 27 amends 20-382.1, registration of intrastate for-hire motor vehicles, to
eliminate references to being regulated or exempt from regulation by the North
Carolina Utilities Commission. The section substitutes a registration requirement with
the Division.
Section 28 repeals 20-384(a) and rewrites the catchline appropriately. 20-384(a)
repeats 20-381(1).
Section 29 revises the fee schedule to eliminate references to filings that no longer
exist.
Section 30 amends 20-393 to eliminate obsolete references to the North Carolina
Utilities Commission.
Sections 31 through 33 make other technical changes. Section 31 corrects an
obsolete reference in the "bridge formula" weight table to an exception that expired
August 31. 1988. The former exception allowed tandem axles on tank trailers, dump
trailers, and ocean going transport containers to carry up to 34,000 pounds if the
distance between the 2nd and 5th axles in consecutive sets of tandem axles was at least
30 feet. The weight table has not been adjusted accordingly since the exception
expired.
Section 32 repeals an unnecessary statute on seat belts. The section requires the
Commissioner to approve seat safety belts before they can be used. The Commissioner
does not set standards for this equipment because G.S. 20-135.2 makes the direction to
the Commissioner moot. That statute sets the standard for seat safety belts.
Section 33 corrects an incorrect cross reference in the limited driving privilege
statute to substance abuse assessments. Chapter 496 of the 1995 Session Laws (House
Bill 458) repealed G.S. 20-179(m) and Chapter 506 of the 1995 Session Laws added a
new cross reference to the statute that had been repealed by the previous act.
-75-
S or
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
LEGISLATIVE PROPOSAL 11
95-LJ-36
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Privatize All DMV Tag Offices.
(Public)
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO REQUIRE ALL VEHICLE REGISTRATION OFFICES OF THE
3 DIVISION OF MOTOR VEHICLES TO BE OPERATED BY A CONTRACT AGENT.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-63(h) reads as rewritten:
6 "(h) Conunission Contracts for Issuance of Plates and
7 Certificates. — All registration plates, registration
8 c e rtificat e s cards, and certificates of title issued by the
9 Division, outside of those i ss u e d from th e Ral e igh offic es of th e
10 s aid — Division — and — tho se issued and handled through the United
11 States mail, shall be issued insofar a s practicabl e and possibl e
12 through commission contracts e nt e r e d into by th e Division for th e
13 i ss uanc e of such plat es and c e rtificat es in localiti es throughout
14 North Carolina with p e rson s , — firms, — corporation s or gov e rnm e ntal
15 s ubdivi s ions — &f — feh« — Stat e — &f — North — Carolina — and — the — Divi s ion
16 s hall — mak e — a — r e a s onabl e — e ffort — in — e v e ry — locality, — e xc e pt — as-
17 h e r e inb e for e — not e d, — fe€ — e nt e r — into a — commission contract — for th e
18 i ss uanc e — &i — such plat es — and — c e rtificat es — and — a — r e cord — &i — th ese
19 e fforts — shall — b e maintain e d — in th e — Divi s ion .
In th e — e v e nt — tb«
20 Divi s ion — ic — un s ucc ess ful — in — making — commi s sion — contracts — a&
21 h e r e inb e for e
22 c e rtificat es
-sot — ott*^ — it — s hall — th e n — i ss u e — s aid — plat es — and
through — th«^ — r e gular — e mploy ee s — &f — the — Division .
95-LJ-36
Page 76
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1995
1 Whenever rogictration — plat es , rogietration — c e rtificat e s a«4
2 cortif icates &i titl e ai^e is s u e d — by — tb« — Division — through
3 conunicsion — contract — arrang e m e nt s , — fehe — Divi s ion — shall — provid e
4 proper cuporvision — of — s uch — distribution , contracts with one or
5 more entities. The Division must supervise the performance of
6 the entities with whom it contracts. Commission contracts
7 entered under this subsection shall provide for the payment of
8 compensation *fe — a — rat e — of — sixty — c e nt s — ( 60C ) — pe* — tran s action .
9 based on a specified rate for each transaction performed under
10 the contract. The applicable rate and the transactions to which
11 the rate applies shall be set by the General Assembly each year
12 in the Current Operations Appropriations Act. If the General
13 Assembly does not set a rate or the transactions to which the
14 rate applies for a year, the rate or transactions last set by the
15 General Assembly remain in effect. Nothing contained in this
16 subsection will allow or permit the operation of fewer outlets in
17 any county in this State than are now being operated."
18 Sec. 2. This act is effective upon ratification.
19 Notwithstanding the effective date of the act, the Division of
20 Motor Vehicles of the Department of Transportation may issue
21 registration cards, registration plates, and certificates of
22 title from its Raleigh office and its Charlotte office until July
23 1, 1997, or until the effective date of a commission contract to
24 provide these services, whichever comes first.
25
Page 77 95-LJ-36
Explanation of Legislative Proposal 1 1
Privatize All DMV Tag Offices
This proposal eliminates the "Raleigh window" and the "Charlotte window" of the
Division of Motor Vehicles effective July 1, 1997. These two offices are the only "tag"
offices operated by employees of the Division. All the other tag offices are operated by
contract agents.
The Joint Legislative Transportation Oversight Committee adopted this proposal
after receiving a report from the Productivity Management Section comparing the
vehicle registration costs of contract agents with those of the Raleigh and Charlotte
offices. The study found that the transaction cost at the contract offices is $1.76, the
cost at the Raleigh Office is $2.50, and the cost at the Charlotte Office is $3.20. The
study found that the combined annual savings of privatizing the Raleigh and Charlotte
offices would be approximately $551,544.
The bill requires all vehicle registration services, except those handled by mail, to
be handled by contract agents. The bill specifically eliminates the authority of the
Division to operate the Raleigh office. It does not make a similar statutory change for
the Charlotte office because the operation of that office is not specifically authorized by
the statute.
The bill deletes the obsolete reference to the $.60 transaction rate and substitutes a
reference to the rate set in the Current Operations Appropriations Act. The rate set in
the appropriations act is the controlling rate.
-78-
MANDATED
REPORTS
The following is a list of the reports the Committee was mandated to make by
action of the General Assembly.
1. Liens on Towed and Stored Vehicles
Authority: Section 18.1 of Chapter 507 of the 1995 Session Laws.
Disposition: The Committee completed study of this issue, and its recommendation
is included in the legislative proposals section of this report.
2. Mid-Currituck County Bridge Funding
Authority: Section 2 of Chapter 485 of the 1995 Session Laws.
Disposition: The Committee received a report on this topic prepared by Graduate
students from the Terry Sanford Institute of Public Policy, Duke University.
3. Wake County DMV Customer Service Center
Authority: Section 18.4 of Chapter 507 of the 1995 Session Laws.
Disposition: The Committee deferred action on this topic pending completion of
the audit of the Division of Motor Vehicles by the Joint Legislative Commission on
Government Operations.
4. Use of Special Registration Plate Fund for Visitor Centers.
Authority: Section 18.7 of Chapter 324 of the 1995 Session Laws.
Disposition: Subcommittee scheduled to meet on this topic April 30, 1996 was
unable to take action do to lack of a quorum.
79
JOINT LEGISLATIVE
TRANSPORTATION OVERSIGHT
COMMITTEE
REPORT TO THE
1997 GENERAL ASSEMBLY
OF NORTH CAROLINA
1997 REGULAR SESSION
A LIMITED NUMBER OF COPIES OF THIS REPORT ARE AVAILABLE FOR
DISTRIBUTION THROUGH THE LEGISLATIVE LIBRARY
ROOMS 2126. 2226
STATE LEGISLATIVE BUILDING
RALEIGH, NC 27611
(919)733-7778
OR
ROOM 500
LEGISLATIVE OFFICE BUILDING
RALEIGH, NC 27603-5925
(919)733-9390
TABLE OF CONTENTS
LETTER OF TR,/^NSMITTAL i
COMMITTEE MEMBERSHIP ii
PREFACE iii
COMMITTEE PROCEEDINGS 1
RECOMMENDATIONS AND LEGISLATIVE PROPOSALS 4
1 . AN ACT TO INCREASE FROM ONE YEAR TO TWO YEARS THE
RENEWAL PERIOD FOR LICENSES ISSUED TO COMMERCIAL
DRIVER TRAINING SCHOOLS AND INSTRUCTORS AND TO ADJUST
THE RENEWAL FEES ACCORDINGLY 4
2. AN ACT TO INCLUDE A NO CONTEST PLEA IN THE DEFINITION OF
AN OUT-OF-STATE DRIVING CONVICTION 6
3. AN ACT TO INCLUDE THE COLLECTION OF AN EMISSIONS
PENALTY IN THE LIST OF ITEMS FOR WTIICH BRANCH AGENTS OF
THE DIVISION OF MOTOR VEHICLES ARE COMPANSATED 8
4. AN ACT TO MODIFY THE DEFINITION OF MOPED THAT IS USED IN
THE MOTOR VEHICLE LAWS 10
5. AN ACT TO IMPLEMENT A RECOMMENDATION OF THE
PERFROMANCE AUDIT OF THE DIVISION OF MOTOR VEHICLES OF
THE DEPARTMENT OF TRANSPORTATION BY ELIMINATING THE
POSITION OF COMMISSIONER OF MOTOR VEHICLES AND
ALLOWING THE SECRETARY OF TRANSPORTATION TO
DESIGNATE A DEPUTY TO BE THE HEAD OF THE DIVISION II
6. AN ACT TO MODIFY THE PENALTY SCHEDULE FOR VIOLATIONS
OF THE VEHICLE EMISSION INSPECTION PROGR.AM. TO CLARJFY
THE PROCEDURE FOR IMPOSING THE PENALTIES, AND TO MAKE
OTHER CHANGES TO THE VEHICLE EMISSION INSPECTION LAWS 31
7. AN ACT TO CLARIFY THAT THE FEE SET BY LAW FOR A VEHICLE
EMISSIONS INSPECTION IS A UNIFORM STATEWIDE FEE 43
8. AN ACT TO ELIMINATE THE ONE DOLLAR FEE FOR MAIL-IN
VEHICLE REGISTRATION 45
9. AN ACT TO ESTABLISH A STANDARD TIME PERIOD OF 60 DAYS IN
WHICH TO OBTAIN OR CHANGE A DRIVERS LICENSE. A SPECIAL
IDENTIFICATION CARD. OR A VEHICLE REGISTR.ATION 48
10. AN ACT TO REDUCE BY HALF THE NUMBER OF SALVAGE
INSPECTIONS PERFORMED BY DMV ENFORCEMENT AND TO
ELIMINATE ISSU.ANCE OF UNBRANDED TITLES FOR VEHICLES
BRANDED IN OTHER STATES 57
11. AN ACT TO REDUCE THE NUMBER OF POSITIONS IN THE DIVISION
OF MOTOR VEHICLES ENFORCEMENT SECTION 60
12. A JOINT RESOULTION URGING CONGRESS TO REPEAL THE
DRIVER'S PRIVACY PROTECTION ACT OF 1994. AND AN ACT TO
INDEMNIFY STATE EMPLOYEES FOR ANY LEGAL COSTS
ASSOCIATED WTTH NONCOMPLIANCE UTTH THE FEDERAL
DRIVER-S LICENSE PROVACY PROTECTION ACT 62
MANDATED REPORTS 66
RESULTS OF 1996 LEGISLATIVE PROPOSALS 67
January 29. 1997
TO THE MEMBERS OF THE 1997 GENER.\L ASSEMBLY (REGULAR SESSION);
The Joint Legislative Transportation Oversight Committee submits its annual
report to you for your consideration. The report was prepared by the Committee pursuant
toG.S. 1 20-70.5 i(a).
Respectfully submitted.
TiVP Tnnnnp Knwip /Slf^atnr F)a\;iH T4ovlf» ^-y ^
Representative Joanne feowie ^:^i€naiOT David Hoyle
Co-chair Co-chair
/ ,-
'-^ Joint Legislative Transportation Oversight Committee
JOINT LEGISLATIVE TRANSPORTATION 0\ ERSIGHT COMMITTEE
MEMBERSHIP
1995-1997
President Pro Tempore Appointments
Sen. David W. Hovle. Co-chair
P.O. Box 2494
Gastonia. N.C. 28053
(704) 867-0822
Sen. Wib Gullev
4803 Montvale Drive
Durham. N.C. 27705
(919)419.4447
Sen. Hamihon C. Horton, Jr.
324 North Spring Street
Winston-Salem. N.C. 27101
(910)773-1324
Sen. John H. Kerr. Ill
P.O.Box 1616
Goldsboro, N. C. 27533
(919)734-1841
Sen. R. L. "Bob" Martin
P.O. Box 387
Bethel, N.C. 27812
(919)825-4361
Sen. Anthonv E. Rand
2008 Litho Place
Fayetteville. N.C. 28304
(800) 682-7971
Sen. Paul S. Smith
P.O. Box 916
Salisbury, N.C. 28145
(704) 633-9463
Sen. James D. Speed
Route 6. Box 542
Louisburg, N.C. 27549
(919)853-2167
Staff:
Ms. Sabra Faires
Mr. Tonv Goldman
Mr. Karl Knapp
Fiscal Research Division
(919)733-4910
Mr. Giles Perry
Research Division
(919)733-2578
Speaker's Appointments
Rep. Joanne W. Bowie, Co-chair
106 Nut Bush Drive East
Greensboro. N. C. 27410
(910)294-2587
Rep. Bobby H. Barbee. Sr.
P.O. Box 700
Locust. N.C. 28097
(704) 888-4423
Rep. Edward C. Bowen
Route 1, Box 289
Harrells. N. C. 28444
(910)532-4183
Rep. James W. Crawford. Jr.
509 College Street
Oxford, RC. 27565
(919)693-6119
Rep. George M. Holmes
3927 West Old Hv\^' 421
Hamptonville. N.C.' 27020
(910)468-2401
Rep. John B. McLaughlin
P.O.Box 158
Newell. N.C. 28126
(704) 596-0845
Rep. W. Edwin McMahan
5815 Westpark Drive
Charlotte. N.C. 28217
(704)561-3402
Rep. David Miner
P.O. Box 500
Holly Springs. N.C. 27540
(919)552-2311
Clerk:
Ms. Sharon Gaudette
(919)733-5853
PREFACE
The Joint Legislative Transportation Oversight Committee was estabHshed in 1989 by Article
12E of Chapter 120 of the General Statutes. The Committee was fonned in conjunction with the
creation of the Highway Trust Fund. The Committee consists of eight members of the Senate
appointed by the President Pro Tempore of the Senate and eight members of the House of
Representatives appointed by the Speaker of the House of Representatives. Members serve two-
year terms.
The Committee's oversight powers are broad, as quoted from G.S. 120-70.5 1(a):
â– Review reports prepared by the Department of Transportation or any other
agency of State government related, in any manner, to transportation, when
those reports are required by law.
â– Monitor the funds deposited in and expenditures from the North Carolina
Highway Trust Fund, the Highway Fimd, the General Fund, or any other fund,
when those expenditures are related, in any manner, to transportation.
â– Determine whether funds related, in any manner, to transportation are being
spent in accordance with law.
â– Determine whether any revisior^s are needed in the funding for a program for
which funds in the Trust Fund, the Highway Fund, the General Fund, or any
other fund when those expenditures are related, in any maimer, to
transportation may be used, including revisions needed to meet any statutory
timetable or program.
â– Report to the General Assembly at the beginning of each regular session
concerning its determination of needed changes in the funding or operation of
programs related, in any manner, to transportation.
COMMITTEE
PROCEEDINGS
*•'.â–
Following the 1996 Regular Session and Second Extraordinan Session of the General Assembly,
the Committee met four times from September 1996 to Januar>- 1997. The Committee examined
a variety of topics, as summarized below.
September 4, 1996
The first meeting of the Committee following the 1996 Short Session and Second Extraordinary
Session was held on September 4. 1996 at 9:00 a.m. in Room 544 of the Legislative Office
Building.
The Committee heard aN update on the implementation of the State Titling and Registration
System (STARS) from DOT Deputy Secretary Frederick Aikens and Carol Howard, Director of
the DMV Vehicle Registration Section. The update indicated that the system had missed its
scheduled May 1996 implementation date, and that a conflict with the implementation of the
digitized driver license system had further delayed the STARS implementation until November
12. 1996. The Committee also heard from Mercidee Benton. DOT Director of Administration on
plans for improvement of the DOT accounting system over the next five years. The plans were
formulated in conjunction with the Office of State controller and will begin with a Business
Practice Review of DOT financial procedures. Committee staff provided briefings on the several
topics including: 1) actions of the General Assembly on transportation legislation and
appropriations during the Short Session and Extra Session; 2) 1995-96 Highway Fund revenues
and expenditures; and 3) the schedule of reports that would be made to the committee by DOT
prior to the 1997 legislative session.
The Committee also heard a presentation by State Highway Administrator Larry Goode on
changes in speed limits on State highways and on the accident in a DOT work zone on 1-85.
Mr. Goode provided maps and charts indicating where speed limit changes were planned and
indicated that current driver speeds served as a guide to the establishment of new speed limits.
Finally, the Committee heard a presentation on public involvement in the DOT planning and
design process by Calvin Leggett, DOT Director of Planning and Programming.
November 14, 1996
The second meeting of the Committee was held on November 14, 1996 at 10:00 a.m. in Room
544 of the Legislative Office Building.
The Committee heard a report from DOT Deputy Chief Engineer C.A. Gardner on the efforts of
DOT employees in response to Hurricane Fran, which indicated that over 3,500 DOT employees
had participated in the removal of over 5,000,000 cubic yards of debris at an imreimbursed cost
of over $30 million. Committee staff presented information on two concerns about the DMV
enforcement section that were raised by the performance audit of DMV conducted in the spring
of 1996. The presentations focused on the effect of DMV's rest area security program on its
weight enforcement activities and on the amount of time devoted to carr>'ing out revocation
orders. A subcommittee chaired by Senator Gulley and Representative McMahan was appointed
to investigate possible changes to revocation order procedures.
1
Comminee staff provided information on the North Carolina Railroad Company and recent legal
actions that have invalidated the lease of the railroad to Norfolk Southern. State Highway
Administrator Larr>- Goode presented the quarterly report on construction contracts financed
through use of cash flow procedures. Committee staff presented an update on the effecii\eness
of the 1995 legislation to change the point of motor fuel taxation to the terminal rack. The
presentation indicated that motor fuel tax revenues had increased as expected as a result of the
legislation. Major Jern.' Arrowood of DMV Enforcement presented a mandated report on
changes to the salvage vehicle inspection laws. The report proposed that only salvage vehicles
that are less than six model years old be inspected and indicated that this could cut salvage
inspections in half Committee staff was instructed to prepare draft legislation for the ne.\t
meeting that would amend the salvage statutes. Deputy Secretarj- Frederick Aikens presented
plans for studies of technology improvements at DMV. as required by statute. Mr. Aikens also
demonstrated the DMV automated voice response system for answering telephone inquiries.
Wayne Hurder. Director of the DMV Driver License Section presented a mandated report on the
section's efforts to create a formula for the allocation of driver license offices throughout the
Stale. Final presentation of the formula was promised before the 1997 legislative session.
December 12, 1996
The third meeting of the Committee was held on December 12, 1996 at 10:00 a.m. in Room 544
of the Legislative Office Building.
The Committee heard the report of the subcommittee on DMV revocation orders, which
indicated that it needed further time to examine the issue. Committee staff presented information
on the length of driver license renewal periods in other states, which indicated that North
Carolina's five-year period is above the national average. Duane Smith, DOT Management
Information Systems staff, presented a mandated report on improvements that should be made to
DMV's International Registration Plan software, which indicated that improvements to the
system would cost $855,400 for 1997-98 and $1,422,000 for 1998-99. Mr. Smith also presented
a mandated report on the Department's use of contract programmers for maintenance of the
driver license and vehicle registration computer systems. The Department recommended that the
use of contractors be continued, but at a reduced level.
Don Coins, DOT Chief Engineer, presented reports on the maintenance backlog and maintenance
funding. The Committee discussed the performance of the Department at improving road
conditions and asked for further information on the topic. The Committee considered draft
legislation on salvage inspection changes, emissions penalties, and driver license privacy, but
took no action regarding any of the legislation. The Committee also heard ft-om the
Department's Legislative Liaison, Ruth Sappie, concerning several legislative proposals that the
Department would like the Committee to consider. The Committee agreed to review draft bills
at the January meeting. The Committee expressed its support for a proposal, presented by State
Highway Administrator Larrv' Goode, to use proceeds of a surplus property sale to build
additional salt facilities and make renovations at an airport facility in Edenton.
Januan 15, 1997
The final meeting of the Committee before the 1997 Session of the General Assembly was held
on Januar>' 15. 1997 at 10:00 a.m. in Room 643 of the Legislative Office Building.
The Committee heard a report by Deputy Secretan.' Frederick Aikens on DOT"s efforts to
implement recommendations of the DMV performance audit. The report indicated that some
progress had been made in the areas of automation but that implementation of many
recommendations remains incomplete. In response to a legislative mandate to study the funding
of driver education programs. Committee staff presented a report on the subject. Deputy Chief
Engineer C.A. Gardner presented a mandated report on implementation of the Green Roads
initiative to plant trees along State highways. The report indicated that only 300 of the planned
700 acres could be planted this year due to a shortage of seedlings.
The Department's Legislative Liaison. Ruth Sappie. presented a mandated report on the funding
of visitor centers, which recommended that no more centers be built, that State funding for one
center be eliminated, that all remaining centers should pay their own utility costs, and that Sate
welcome centers should be transferred from the Department of Commerce to the Department of
Transportation. The Committee heard a report on asphalt quality issues from Deputy State
Highway Administrator B.G. Jenkins. Committee staff presented the quarterly cash flow
construction report. Wayne Hurder. Director of DMV's Driver License Section presented the
final version of the mandated driver license office plan, which included recommendations for
closure of some offices and staffing changes at others.
The Committee considered and approved legislation on the following matters:
1 ) expanding the definition of out-of-state driving convictions;
2) extending the renewal period for driving instructor licenses to two years;
3) allowing tag agents to receive compensation for collecting emission inspection civil
penalties;
4) reducing motor vehicle salvage inspections;
5) reducing the number of DMV inspectors;
6) removing the fee for mail-in renewal of registration;
7) establishing a standard time of 60 days to change or obtain driver license and registration
information;
8) making technical changes of laws related to mopeds;
9) converting the DMV commissioner position to a Deputy Secretary;
10) modifying emissions inspection laws;
1 1 ) requiring safety and emissions inspectors to fully collect fees; and
12) resolving to oppose implementation of the Federal Driver License Privacy Protection Act and
indemnify State employees for legal costs arising from noncompliance with the Act.
RECOMMENDATIONS
&
LEGISLATIVE PROPOSALS
: GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
S or H
Legislative Proposal 1
97-LJX-012(1.2)
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: 2-year Driver Instructor License. (Public)
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO INCREASE FROM ONE YE?^ TO TWO YEARS THE RENEWAL PERIOD
3 FOR LICENSES ISSUED TO COMMERCIAL DRIVER TRAINING SCHOOLS AND
4 INSTRUCTORS AND TO ADJUST THE RENEWAL FEES ACCORDINGLY.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 20-324 reads as rewritten:
7 "S 20-324. Expiration and renewal of licenses; fees.
8 A44 — lic e ns e e — i ss u e d und e r th e provi s ion s — of this Articl e shall
9 e xpir e — on — the — last — day — &f — Jun e — in — febe — y e ar — following — th e ir
10 iscuanc e and may b e r e n e w e d upon application to th e Commi ss ion e r
11 a s pr e scrib e d by hie — r e gulations . — Each application for a n e w or
12 r e n e wal — school — lic e nc e — s hall — be — accompani e d — by — a — ^ee — &f — forty
13 dollars — ( $ 40 . 00 ) , — and — e ach — application — fof: — a — new — ©«^ — a — r e n e wal
14 instructor' e — lic e nc e — s hall — be — accompani e d — by — a — f«e — &£ — e ight
15 dollars — ( $ 8 . 00) . — Th e lic e ns e — fees — coll e ct e d under this — se ction
16 s hall b e us e d und e r th e sup e rvision and dir e ction of th e Dir e ctor
17 of th e Budg e t for th e admini s tration of this Articl e. — No lic e n se
18 iee — shall b e r e fund e d in th e e v e nt that th e licens e ic r e j e ct e d;
19 susp e nd e d, — or r e vok e d .
20 (a) Renewal. — A license issued under this Article expires
21 two years after the date the license is issued. To renew a
97-LJX-012 Page 4
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 license, the license holder must file an application for renewal
2 with the Division.
3 (b) Fees. -- An application for an initial license or the
4 renewal of a license must be accompanied by the application fee
5 for the license. The application fee for a school license is
6 eighty dollars ($80.00). The application fee for an instructor
7 license is sixteen dollars ($16.00). The application fee for a
8 license is not refundable. Fees collected under this section
9 must be credited to the Highway Fund. "
10 Section 2. This act becomes effective July 1, 1997.
Explanation of Proposal
This proposal changes the renewal cycle for commerical driver
traning schools and instructors in those schools from one year to
two years. The proposal adjusts the renewal fees accordingly by
doubling the current annual renewal fees. The proposal also puts
the renewals on a staggered basis so that licenses expire two
years after they are issued. Under current law, all licenses
expire annually on June 30. The proposal was requested by the
Division of Motor Vehicles.
Page 5 97-LJX-012
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
Legislative Proposal 2
97-LJ-Oll
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Out-of-state Driving Conviction. (Public)
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO INCLUDE A NO CONTEST PLEA IN THE DEFINITION OF AN OUT-
3 OF-STATE DRIVING CONVICTION.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-4.01(4a) reads as rewritten:
6 "(4a) Conviction. — A conviction for an offense
7 committed in North Carolina or another state:
8 a. In-State. When referring to an offense
9 committed in North Carolina, the term means
10 any of the following:
11 1. A final conviction of a criminal offense,
12 including a no contest plea.
13 2. A determination that a person is
14 responsible for an infraction, including
15 a no contest plea.
16 3. An unvacated forfeiture of cash in the
17 full amount of a bond required by Article
18 26 of Chapter 15A of the General
19 Statutes.
20 4. A third or subsequent prayer for judgment
21 continued within any five-year period.
97-LJ-Oll Page 6
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 b. Out-of-state. When referring to an offense
2 committed outside North Carolina, the term
3 means any of the following:
4 1. An unvacated adjudication of guilt .
5 guilt, including a no contest plea.
6 2 . A determination that a person has
7 violated or failed to comply with the law
8 in a court of original jurisdiction or an
9 authorized administrative tribunal.
10 3. An unvacated forfeiture of bail or
11 collateral deposited to secure the
12 person's appearance in court.
13 4. A violation of a condition of release
14 without bail, regardless of whether or
15 not the penalty is rebated, suspended, or
16 probated."
17 Section 2. This act becomes effective November 1, 1997,
18 and applies to offenses committed on or after that date.
Explanation of Proposal
This proposal changes the definition of out-of-state conviction
for drivers license purposes. It includes a plea of no contest
in the definition. This change makes an out-of-state conviction
the same as an in-state-conviction with respect to no contest
pleas. Under current law, a plea of no contest is included in the
definition of an in-state-conviction but not an out-of-state
conviction.
Page 7 97-LJ-Oll
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
S or H
Legislative Proposal 3
97-LJ-013
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Change Tag Agent Compensation. (Public)
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO INCLUDE THE COLLECTION OF AN EMISSIONS PENALTY IN THE
3 LIST OF ITEMS FOR WHICH BRANCH AGENTS OF THE DIVISION OF MOTOR
4 VEHICLES ARE COMPENSATED.
5 The General Assembly of North Carolina enacts:
6 Section 1. Section 155 of the 1993 Session Laws, as
7 amended by Section 20.1 of Chapter 769 of the 1993 Session Laws
8 and by Section 18.18 of Chapter 507 of the 1995 Session Laws
9 (Reg. Sess. 1996), reads as rewritten:
10 "Sec. 155. The Division of Motor Vehicles of the Department of
11 Transportation shall compensate a contractor with whom it has a
12 contract under G.S. 20-63 (h) at the rate of one dollar and twenty
13 cents ($1.20) for each transaction performed in accordance with
14 the requirements set by the Division. A transaction is any of
15 the following activities:
16 (1) Issuance of a registration plate, a registration
17 card, a registration renewal sticker, or a
18 certificate of title.
19 (2) Issuance of a handicapped placard or handicapped
20 identification card.
21 (3) Acceptance of an application for a personalized
22 registration plate.
97-LJ-013 Page 8
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 (4) Acceptance of a surrendered registration plate,
2 registration card, or registration renewal sticker,
3 or acceptance of an affidavit stating why a person
4 cannot surrender a registration plate, registration
5 card, or registration renewal sticker.
6 (5) Cancellation of a title because the vehicle has
7 been junked.
8 (6) Acceptance of an application for, or issuance of, a
9 refund for a fee or a tax, other than the highway
10 use tax.
11 (7) Receipt of the civil penalty imposed by G.S. 20-309
12 for a lapse in financial responsibility or receipt
13 of the restoration fee imposed by that statute.
14 (7a) Receipt of the civil penalty imposed by G.S. 20-
15 183. 8A for an emission inspection violation.
16 (8) Acceptance of a notice of failure to maintain
17 financial responsibility for a motor vehicle.
18 (9) Collection of the highway use tax.
19 Performance at the same time of any combination of the items
20 that are listed within each subdivision or are listed within
21 subdivisions (1) through (8) of this section is a single
22 transaction. Performance of the item listed in subdivision (9)
23 of this section in combination with any other items listed in
24 this section is a separate transaction."
25 Section 2. This act becomes effective July 1, 1997.
26
Explanation of Proposal
This proposal adds collection of an emissions penalty to the
list of transactions for which branch agents of the Division of
Motor Vehicles are compensated. Under current law, the
registration of a vehicle that was not inspected within 4 months
of the required time cannot be renewed without payment of a civil
penalty.
Page 9 97-LJ-013
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
S or H
Legislative Proposal 4
97-LJ-14
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Modify Definition of Moped. (Public)
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MODIFY THE DEFINITION OF MOPED THAT IS USED IN THE
3 MOTOR VEHICLE LAWS.
4 The General Assembly of North Carolina enacts:
5: Section 1. G.S. 20-4 .01 (27 )dl . reads as rewritten:
6 " dl. Moped. — V e hicl e s — having A vehicle that has
7 two or three wheels ^nd — op e rabl e — p e dal s and
8 e quipp e d — with a motor which that does not
9 exceed 50 cubic centimeters piston
10 displacement and cannot propel the vehicle at
11 a speed greater than 20 miles per hour on a
12 level surface."
13 Section 2. This act is effective when it becomes law.
Explanation of Proposal
This proposal deletes the requirement that a moped have pedals.
Some mopeds that are manufactured now do not have pedals.
97-LJ-14 Page 10
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
S or H
Legislative Proposal 5
97-LJ-15
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: DMV Head Is A DOT Deputy. (Public
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO IMPLEMENT A RECOMMENDATION OF THE PERFORMANCE AUDIT OF
3 THE DIVISION OF MOTOR VEHICLES OF THE DEPARTMENT OF
4 TRANSPORTATION BY ELIMINATING THE POSITION OF COMMISSIONER OF
5 MOTOR VEHICLES AND ALLOWING THE SECRETARY OF TRANSPORTATION TO
6 DESIGNATE A DEPUTY TO BE THE HEAD OF THE DIVISION.
7 The General Assembly of North Carolina enacts:
8 Section 1. G.S. 20-1 reads as rewritten:
9 "S 20-1. Division of Motor Vehicles established.
10 The Division of Motor Vehicles of the Department of
11 Transportation is established. This Chapter sets out the powers
12 and duties of the Division. The Secretary of Transportation
13 shall administer the Division. The Secretary may delegate to a
14 Deputy of the Department of Transportation or another employee of
15 the Department any duty of the Secretary concerning the
16 administration of the Division.
17 Sec. 2. G.S. 20-2 reads as rewritten:
18 "S 20-2. Commiceion e r — of — Motor — V e hicl e B? Authority to adopt
19 rules.
20 -fa-) Commission e r — and — Assi s tant s. — -^ — Sfbe — Divi s ion — ei — Motor
21 V e hicl e s — shall — he — administ e r e d — by — ^^le — Commission e r — &i — Motor
22 V e hicl e s, — who shall b e appoint e d by and s e rv e at th e pl e asur e of
23 the S e cr e tary &f the D e partm e nt ei Transportation . ¥be
97-LJ-15 Page 11
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 Commic s ion e r — shall — he — paid — ah — annual — salary — feo — be — fix e d — by — the
2 G e n e ral Ascembly in th e Curr e nt Op e rations Appropriations Act and
3 allow e d hie trav e ling e xp e ns e s as allow e d by law .
4 In any action, — proc ee ding, — or matt e r of any kind, — to which th e
5 Conunicsion e r of Motor V e hicl e s is a party or in which h e may hav e
6 d« — int e r e st, aii — pl e adings, l e gal — notic e s , — proof — ei — claim,
7 warrants ie^ coll e ction, c e rtificat es ei tax liability,
8 e x e cutions, — and oth e r l e gal docum e nt s , may be cignod and vorifiod
9 on b e half of th e Commission e r of Motor V e hicl e s by th e Assistant
10 Commiseion e r — &i — Motor V e hicl e s — or by — a«y — dir e ctor — &ff — assistant
11 dir e ctor of any s e ction of the Division of Motor V e hicl e s or by
12 any oth e r ag e nt or e mploy ee of th e Division so authoriz e d by the
13 Commission e r of Motor V e hicles .
14 4^-) Rul e s . — =— The Commission e r Secretary may adopt rules to
15 implement this Chapter. Chapter 150B of the General Statutes
16 governs the adoption of rules by the Commission e r . Secretary. "
17 Sec. 3. G.S. 20-3 is repealed.
18 Sec. 4. G.S. 20-4.01(4) is repealed.
19 Sec. 5. G.S. 20-4.01 is amended by adding a new
20 subdivision in the appropriate alphabetical order to read:
21 " (39a) Secretary. — The Secretary of the North
22 Carolina Department of Transportation. "
23 Sec. 6. G.S. 20-4.2(2) is repealed.
24 Sec. 7. The following statutes are amended by deleting
25 the word "Commissioner", the phrase "Commissioner of Motor
26 Vehicles", the phrase "State Commissioner of Motor Vehicles", or
27 the phrase "Commissioner of the Division of Motor Vehicles" each
28 time they appear and substituting the word "Secretary":
29
G.S.
20-4.3
30
G.S.
20-4.4
31
G.S.
20-4.6
32
G.S.
20-4.10
33
G.S.
20-4.20
34
G.S.
20-4.22
35
G.S.
20-7
36
G.S.
20-9
37
G.S.
20-11
38
G.S.
20-13.2
39
G.S.
20-16.1
40
G.S.
20-17.1
41
G.S.
20-19
42
G.S.
20-24
43
G.S.
20-26
44
G.S.
20-29.1
Page 12 97-LJ-15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1
G.S.
20-30
2
G.S.
20-37.12
3
G.S.
20-37.16
4
G.S.
20-37.23
5
G.S.
20-39
6
G.S.
20-40
7
G.S.
20-41
8
G.S.
20-42
9
G.S.
20-43
10
G.S.
20-43.4
11
G.S.
20-45
12
G.S.
20-47
13
G.S.
20-48
14
G.S.
20-50
15
G.S.
20-56
16
G.S.
20-57
17
G.S.
20-61
18
G.S.
20-63
19
G.S.
20-64
20
G.S.
20-64.2
21
G.S.
20-66
22
G.S.
20-71.2
23
G.S.
20-71.3
24
G.S.
20-71.4
25
G.S.
20-78
26
G.S.
20-83
27
G.S.
20-84
28
G.S.
20-84.2
29
G.S.
20-85.1
30
G.S.
20-86.1
31
G.S.
20-91
32
G.S.
20-91.1
33
G.S.
20-91.2
34
G.S.
20-94
35
G.S.
20-97
36
G.S.
20-99
37
G.S.
20-100
38
G.S.
20-108
39
G.S.
20-109.1
40
G.S.
20-114
41
G.S.
20-124
42
G.S.
20-125
43
G.S.
20-125.1
44
G.S.
20-126
97-LJ-
15
Page 13
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1
G.S.
, 20-127
2
G.S.
20-128.2
3
G.S.
20-129
4
G.S.
20-129.2
5
G.S.
20-130
6
G.S.
20-133
7
G.S.
20-135.2
8
G.S.
20-135. 2A
9
G.S.
20-135. 2B
10
G.S.
20-135.4
11
G.S.
20-140.4
12
G.S.
20-141.3
13
G.S.
20-179.3
14
G.S.
20-183.3
15
G.S.
20-183. 8D
16
G.S.
20-183. 8E
17
G.S.
20-218
18
G.S.
20-279.2
19
G.S.
20-279.3
20
G.S.
20-279.5
21
G.S.
20-279.6
22
G.S.
20-279. 6A
23
G.S.
20-279.7
24
G.S.
20-279.8
25
G.S.
20-279.9
26
G.S.
20-279.10
27
G.S.
20-279.11
28
G.S.
20-279.12
29
G.S.
20-279.13
30
G.S.
20-279.16
31
G.S.
20-279.19
32
G.S.
20-279.20
33
G.S.
20-279.22
34
G.S.
20-279.24
35
G.S.
20-279.25
36
G.S.
20-279.26
37
G.S.
20-279.27
38
G.S.
20-279.28
39
G.S.
20-279.29
40
G.S.
20-279.30
41
G.S.
20-279.31
42
G.S.
20-279.32
43
G.S.
20-279.33
44
G.S.
20-281
Page 14 97-LJ-15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 G.S. 20-283
2 G.S. 20-288
3 G.S. 20-295
4 G.S. 20-296
5 G.S. 20-300
6 G.S. 20-301
7 G.S. 20-302
8 G.S. 20-305
9 G.S. 20-305.1
10 G.S. 20-305.2
11 G.S. 20-305.3
12 G.S. 20-305.4
13 G.S. 20-308.1
14 G.S. 20-321
15 G.S. 20-322
16 G.S. 20-323
17 G.S. 20-324
18 G.S. 20-325
19 G.S. 20-382
20 G.S. 20-382.2.
21 Sec. 8. G.S. 20-49 reads as rewritten:
22 "S 20-4 9. Police authority of Division.
23 Th e Gonuni es ion e r and — such offic e r s Officers and inspectors of
24 the Division ets — he — s hall — d es ignat e designated by the Secretary
25 and all members of the Highway Patrol shall have the power:
26 ( 1 ) Of peace officers for the purpose of enforcing the
27 provisions of this Article and of any other law
28 regulating the operation of vehicles or the use of
29 the highways.
30 (2) To make arrests upon view and without warrant for
31 any violation committed in their presence of any of
32 the provisions of this Article or other laws
33 regulating the operation of vehicles or the use of
34 the highways.
35 ( 3 ) At all time to direct all traffic in conformance
36 with law, and in the event of a fire or other
37 emergency or to expedite traffic or to insure
38 safety, to direct traffic as conditions may
39 require, notwithstanding the provisions of law.
4 (4) When on duty, upon reasonable belief that any
41 vehicle is being operated in violation of any
42 provision of this Article or of any other law
43 regulating the operation of vehicles to require the
44 driver thereof to stop and exhibit his driver's
97-LJ-15 Page 15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 license and the registration card issued for the
2 vehicle, and submit to an inspection of such
3 vehicle, the registration plates and registration
4 card thereon or to an inspection and test of the
5 equipment of such vehicle.
6 (5) To inspect any vehicle of a type required to be
7 registered hereunder in any public garage or repair
8 shop or in any place where such vehicles are held
9 for sale or wrecking, for the purpose of locating
10 stolen vehicles and investigating the title and
11 registration thereof.
12 (6) To serve all warrants relating to the enforcement
13 of the laws regulating the operation of vehicles or
14 the use of the highways.
15 (7) To investigate traffic accidents and secure
16 testimony of witnesses or of persons involved.
17 (8) To investigate reported thefts of motor vehicles,
18 trailers and semitrailers and make arrest for
19 thefts thereof.
20 (9) For the purpose of determining compliance with the
21 provisions of this Chapter, to inspect all files
22 and records of the persons hereinafter designated
23 and required to be kept under the provisions of
24 this Chapter or of the registrations of the
25 Division:
26 a. Persons dealing in or selling and buying new,
27 used or junked motor vehicles and motor
28 vehicle parts; and
29 b. Persons operating garages or other places where
30 motor vehicles are repaired, dismantled, or
31 stored."
32 Sec. 9. G.S. 20-79. l(j) is repealed.
33 Sec. 10. G.S. 20-84.2 is amended by deleting the word
34 "Commissioner's" each time it appears and substituting the word
35 "Secretary's".
36 Sec. 11. G.S. 20-88.01 reads as rewritten:
37 "S 20-88.01. Revocation of registration for failure to register
38 for or comply with road tax or pay civil penalty for buying or
39 selling non- tax-paid fuel.
40 (a) Road Tax. — The Secretary of Revenue may notify the
41 Commie s ion e r Division of those motor vehicles that are registered
42 or are required to be registered under Article 36B of Chapter 105
43 and whose owners or lessees, as appropriate, are not in
44 compliance with Article 363, 36C, or 36D of Chapter 105. When
Page 16 97-LJ-15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 notified, the Conmiieeion e r Division shall withhold or revoke the
2 registration plate for the vehicle.
3 (b) Non-tax-paid Fuel. — The Secretary of Revenue may notify
4 the Conuni e eion Q r Division of those motor vehicles for which a
5 civil penalty imposed under G.S. 105-449.118 has not been paid.
6 When notified, the Commi ss ion e r Division shall withhold or revoke
7 the registration plate of the vehicle."
8 Sec. 12. G.S. 20-279 . 21 (b) ( 3 )b. reads as rewritten:
9 "b. Where the insured, under the uninsured
10 motorist coverage, claims that he has
11 sustained bodily injury as the result of
12 collision between motor vehicles and asserts
13 that the identity of the operator or owner of
14 a vehicle (other than a vehicle in which the
15 insured is a passenger) cannot be ascertained,
16 the insured may institute an action directly
17 against the insurer: Provided, in that event,
18 the insured, or someone in his behalf, shall
19 report the accident within 24 hours or as soon
20 thereafter as may be practicable, to a police
21 officer, peace officer, other judicial
22 officer, or to the Commiecion e r — &£ — Motor
23 V e hicl e s . Division. The insured shall also
24 within a reasonable time give notice to the
25 insurer of his injury, the extent thereof, and
26 shall set forth in the notice the time, date
27 and place of the injury. Thereafter, on forms
28 to be mailed by the insurer within 15 days
29 following receipt of the notice of the
30 accident to the insurer, the insured shall
31 furnish to insurer any further reasonable
32 information concerning the accident and the
33 injury that the insurer requests. If the forms
34 are not furnished within 15 days, the insured
35 is deemed to have complied with the
36 requirements for furnishing information to the
37 insurer. Suit may not be instituted against
38 the insurer in less than 60 days from the
39 posting of the first notice of the injury or
40 accident to the insurer at the address shown
41 on the policy or after personal delivery of
42 the notice to the insurer or its agent. The
4 3 failure to post notice to the insurer 60 days
44 before the initiation of the suit shall not be
97-LJ-15 Page 17
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 grounds for dismissal of the action, but shall
2 automatically extend the time for filing of an
3 answer or other pleadings to 60 days after the
4 time of service of the summons, complaint, or
5 other process on the insurer."
6 Sec. 13. G.S. 20-282 reads as rewritten:
7 "S 20-282. Cooperation in enforcement of Article.
8 The provisions of this Article shall be enforced by the
9 Commission e r of Motor V e hicl es Division in cooperation with the
10 Commissioner of Insurance, the North Carolina Automobile Rate
11 Administrative Office and with all law-enforcement officers and
12 agents and other agencies of the State and the political
13 subdivisions thereof."
14 Sec. 14. G.S. 20-309 reads as rewritten:
15 "S 20-309. Financial responsibility prerequisite to registration;
16 must be maintained throughout registration period.
17 (a) No self-propelled motor vehicle shall be registered in
18 this State unless the owner at the time of registration has
19 financial responsibility for the operation of such motor vehicle,
20 as provided in this Article. The owner of each motor vehicle
21 registered in this State shall maintain financial responsibility
22 continuously throughout the period of registration.
23 (b) Financial responsibility shall be a liability insurance
24 policy or a financial security bond or a financial security
25 deposit or by qualification as a self-insurer, as these terms are
26 defined and described in Article 9A, Chapter 20 of the General
27 Statutes of North Carolina, as amended.
28 (c) When it is certified that financial responsibility is a
29 liability insurance policy, the Commiscion e r — ©^ — Motor V e hicl es
30 Division may require that the owner to produce records to prove
31 the fact of s uch insurance, and failure to produce such records
32 shall be prima facie evidence that no financial responsibility
33 exists with regard to the vehicle concerned. It shall be the duty
34 of insurance companies, upon request of the Division, to verify
35 the accuracy of any owner's certification.
36 (d) When liability insurance with regard to any motor vehicle
37 is terminated by cancellation or failure to renew, or the owner's
38 financial responsibility for the operation of any motor vehicle
39 is otherwise terminated, the owner shall forthwith surrender the
40 registration certificate and plates of the vehicle to the
41 Division ei — Motor — V e hicl e s unless financial responsibility is
42 maintained in some other manner in compliance with this Article.
43 (e) Upon termination by cancellation or otherwise of an
44 insurance policy provided in subsection (b) of this section, the
Page 18 97-LJ-15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 insurer shall notify the Division of such termination; provided,
2 no cancellation notice is required if the insurer issues a new
3 insurance policy complying with this Article at the same time the
4 insurer cancels or otherwise terminates the old policy, no lapse
5 in coverage results, and the insurer sends the certificate of
6 insurance form for the new policy to the Division. The Division,
7 upon receiving notice of cancellation or termination of an
8 owner's financial responsibility as required by this Article,
9 shall notify such owner of such cancellation or termination, and
10 such owner shall, to retain the registration plate for the
11 vehicle registered or required to be registered, within 10 days
12 from date of notice given by the Division either:
13 (1) Certify to the Division that he had financial
14 responsibility effective on or prior to the date of
15 such termination; or
16 (2) In the case of a lapse in financial responsibility,
17 pay a fifty dollar ($50.00) civil penalty; and
18 certify to the Division that he now has financial
19 responsibility effective on the date of
20 certification, that he did not operate the vehicle
21 in question during the period of no financial
22 responsibility with the knowledge that there was no
23 financial responsibility, and that the vehicle in
24 question was not involved in a motor vehicle
25 accident during the period of no financial
26 responsibility.
27 Failure of the owner to certify that he has financial
28 responsibility as herein required shall be prima facie evidence
29 that no financial responsibility exists with regard to the
30 vehicle concerned and unless the owner's registration plate has
31 on or prior to the date of termination of insurance been
32 surrendered to a representative of the Division by surr e nd e r to
33 a« — ag e nt — &i^ — r e pr e s e ntativ e — of — the — Division — d e signat e d — by — feb^
34 Commi ss ion e r, — or d e positing — felie — sam e or deposited in the United
35 States mail, addressed to the Division of Motor Vehicles,
36 Raleigh, North Carolina, the Division shall revoke the vehicle's
37 registration for 30 days.
38 In no case shall any vehicle, the registration of which has
39 been revoked for failure to have financial responsibility, be
40 reregistered in the name of the registered owner, spouse, or any
41 child of the spouse, or any child of such owner within less than
42 30 days after the date of receipt of the registration plate by
43 the Division of Motor Vehicles, except that a spouse living
44 separate and apart from the registered owner may register such
97-LJ-15 Page 19
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 vehicle inunediately in such spouse's name. Additionally, as a
2 condition precedent to the reregistration of the vehicle by the
3 registered owner, spouse, or any child of the spouse, or any
4 child of such owner, except a spouse living separate and apart
5 from the registered owner, the payment of a restoration fee of
6 fifty dollars ($50.00) and the appropriate fee for a new
7 registration plate is required. Any person, firm or corporation
8 failing to give notice of termination shall be subject to a civil
9 penalty of two hundred dollars ($200.00) to be assessed by the
10 Commissioner of Insurance upon a finding by the Commissioner of
11 Insurance that good cause is not shown for such failure to give
12 notice of termination to the Division.
13 (f) The Commission e r — s hall administ e r — ot«d — e nforc e — the-
14 provisions — &i — this — Articl e — and — may — make — rul es — a«d — r e gulations
15 n e c e ssary for its admini s tration and Secretary shall provide for
16 hearings upon request of persons aggrieved by orders or acts of
17 the Commi s sion e r Secretary under the provisions of this Article."
18 Sec. 15. G.S. 20-315 is repealed.
19 Sec. 16. G.S. 20-320(2) is repealed.
20 Sec. 17. G.S. 1-105 reads as rewritten:
21 "S 1-105. Service upon nonresident drivers of motor vehicles and
22 upon the personal representatives of deceased nonresident drivers
23 of motor vehicles.
24 The acceptance by a nonresident of the rights and privileges
25 conferred by the laws now or hereafter in force in this State
26 permitting the operation of motor vehicles, as evidenced by the
27 operation of a motor vehicle by such nonresident on the public
28 highways of this State, or at any other place in this State, or
29 the operation by such nonresident of a motor vehicle on the
30 public highways of this State or at any other place in this
31 State, other than as so permitted or regulated, shall be deemed
32 equivalent to the appointment by such nonresident of the
33 Commission e r — &i — Motor V e hicl e s, Secretary of the Department of
34 Transportation , or his successor in office, to be his true and
35 lawful attorney and the attorney of his executor or
36 administrator, upon whom may be served all summonses or other
37 lawful process in any action or proceeding against him or his
38 executor or administrator, growing out of any accident or
39 collision in which said nonresident may be involved by reason of
40 the operation by him, for him, or under his control or direction,
41 express or implied, of a motor vehicle on such public highways of
42 this State, or at any other place in this State, and said
4 3 acceptance or operation shall be a signification of his agreement
44 that any such process against him or his executor or
Page 20 97-LJ-15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 administrator shall be of the same legal force and validity as if
2 served on him personally, or on his executor or administrator.
3 Service of such process shall be made in the following manner:
4 ( 1 ) By leaving a copy thereof, with a fee of ten
5 dollars ($10.00), in the hands of the Commieeion e r
6 of Motor V e hicl e s, Secretary of the Department of
7 Transportation, or in his office. Such service,
8 upon compliance with the other provisions of this
9 section, shall be sufficient service upon the said
10 nonresident.
11 (2) Notice of such service of process and copy thereof
12 must be forthwith sent by certified or registered
13 mail by plaintiff or the Commiesion e r — ei — Motor
14 V e hicl es Secretary of the Department of
15 Transportation to the defendant, and the entries on
16 the defendant's return receipt shall be sufficient
17 evidence of the date on which notice of service
18 upon the Commission e r — &i — Motor — V e hicl es Secretary
19 of the Department of Transportation and copy of
20 process were delivered to the defendant, on which
21 date service on said defendant shall be deemed
22 completed. If the defendant refuses to accept the
23 certified or registered letter, service on the
24 defendant shall be deemed completed on the date of
25 such refusal to accept as determined by notations
26 by the postal authorities on the original envelope,
2 7 and if such date cannot be so determined, then
28 service shall be deemed completed on the date that
29 the certified or registered letter is returned to
30 the plaintiff or Commieeion e r — &f — Motor — V e hicl es ,
31 Secretary of the Department of Transportation, as
32 determined by postal marks on the original
33 envelope. If the certified or registered letter is
34 not delivered to the defendant because it is
35 unclaimed, or because he has removed himself from
36 his last known address and has left no forwarding
37 address or is unknown at his last known address,
38 service on the defendant shall be deemed completed
39 on the date that the certified or registered letter
4 is returned to the plaintiff or Commi s sion e r — ©f-
41 Motor — V e hicl es. Secretary of the Department of
42 Transportation .
4 3 (3) The defendant's return receipt, or the original
44 envelope bearing a notation by the postal
97-LJ-15 Page 21
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 authorities that receipt was refused, and an
2 affidavit by the plaintiff that notice of mailing
3 the registered letter and refusal to accept was
4 forthwith sent to the defendant by ordinary mail,
5 together with the plaintiff's affidavit of
6 compliance with the provisions of this section,
7 must be appended to the summons or other process
8 ' and filed with said summons, complaint and other
9 papers in the cause.
10 Provided, that where the nonresident motorist has died prior to
11 the commencement of an action brought pursuant to this section,
12 service of process shall be made on the executor or administrator
13 of such nonresident motorist in the same manner and on the same
14 notice as is provided in the case of a nonresident motorist.
15 The court in which the action is pending shall order such
16 continuance as may be necessary to afford the defendant
17 reasonable opportunity to defend the action."
18 Sec. 18. G.S. 8-37 reads as rewritten:
19 "S 8-37. Certificate of Commie sion e r Division of Motor Vehicles
2 as to ownership of automobile.
21 In any civil or criminal action in which the ownership of a
22 motor vehicle is relevant, evidence as to the letters and numbers
23 appearing upon the registration plate attached to such vehicle or
24 of the motor vehicle identification number, together with
25 certified copies of records furnished pursuant to G.S. 20-42 by
26 the Commission e r Division of Motor Vehicles showing the name of
27 the owner of the vehicle to which such registration plate or
28 vehicle identification number is assigned, or a certified copy of
29 the certificate of title for such motor vehicle on file with the
30 Commi s sion e r Division of Motor Vehicles, is prima facie evidence
31 of the ownership of such motor vehicle."
32 Sec. 19. G.S. 44A-4(c) reads as rewritten:
33 "(c) Private Sale. — Sale by private sale may be made in any
34 manner that is commercially reasonable. If the property upon
35 which the lien is claimed is a motor vehicle, the sale may not be
36 made until notice is given to the Commi s sion e r Division of Motor
37 Vehicles pursuant to G.S. 20-114 (c). Not less than 30 days prior
38 to the date of the proposed private sale, the lienor shall cause
39 notice to be mailed, as provided in subsection (f) hereof, to the
40 person having legal title to the property, if reasonably
41 ascertainable, to the person with whom the lienor dealt if
42 different, and to each secured party or other person claiming an
4 3 interest in the property who is actually known to the lienor or
44 can be reasonably ascertained. Notices provided pursuant to
Page 22 97-LJ-15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 subsection (b) hereof shall be sufficient for these purposes if
2 such notices contain the information required by subsection (f)
3 hereof. The lienor shall not purchase, directly or indirectly,
4 the property at private sale and such a sale to the lienor shall
5 be voidable. "
6 Sec. 20. G.S. 44A-4(e) reads as rewritten:
7 "(e) Public Sale. —
8 (1) Not less than 20 days prior to sale by public sale
9 the lienor:
10 a. Shall notify the Conuni s sionor Division of
11 Motor Vehicles as provided in G.S. 20-114 (c)
12 ' if the property upon which the lien is claimed
13 is a motor vehicle; and
14 al. Shall cause notice to be mailed to the person
15 having legal title to the property if
16 reasonably ascertainable, to the person with
17 whom the lienor dealt if different, and to
18 each secured party or other person claiming an
19 interest in the property who is actually known
20 to the lienor or can be reasonably
21 ascertained, provided that notices provided
22 pursuant to subsection (b) hereof shall be
23 sufficient for these purposes if such notices
24 contain the information required by subsection
25 (f) hereof; and
26 b. Shall advertise the sale by posting a copy of
27 the notice of sale at the courthouse door in
28 the county where the sale is to be held;
29 and shall publish notice of sale once a week for
30 two consecutive weeks in a newspaper of general
31 circulation in the same county, the date of the
32 last publication being not less than five days
33 prior to the sale. The notice of sale need not be
34 published if the vehicle has a market value of less
35 than three thousand five hundred dollars ($3,500),
36 as determined by the schedule of values adopted by
37 the Commiesion e r Division of Motor Vehicles under
38 G.S. 105-187.3.
39 (2) A public sale must be held on a day other than
4 Sunday and between the hours of 10:00 A.M. and 4:00
41 P.M.:
42 a. In any county where any part of the contract
43 giving rise to the lien was performed, or
97-LJ-15 Page 23
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 b. In the county where the obligation secured by
2 the lien was contracted for.
3 (3) A lienor may purchase at public sale."
4 Sec. 21. G.S. 66-58(b)(15) reads as rewritten:
5 "(15) The State Department of Correction is
6 authorized to purchase and install automobile
7 license tag plant equipment for the purpose of
8 manufacturing license tags for the State and
9 local governments and for such other purposes
10 as the Department may direct.
11 The Commission e r Division of Motor V e hicl e s, — &¥^
12 s uch — oth e r — authority — ft€ — may — e x e rci se Vehicles and
13 any other entity that exercises the authority to
14 purchase automobile license tags is hereby directed
15 to purchase from, and to contract with, the State
16 Department of Correction for the State automobile
17 license tag requirements from year to year.
18 The price to be paid to the State Department of
19 Correction for such tags shall be fixed and agreed
20 upon by the Governor, the State Department of
21 Correction, and the Motor V e hicl e Commi ss ion e r, — ©t
22 s uch — authority — »« — may — be — authoriz e d — fe« — purcha se
23 such s uppli e s , agency purchasing the tags. "
24 Sec. 22. G.S. 105-187.1 reads as rewritten:
25 "S 105-187.1. Definitions.
26 The following definitions and the definitions in G.S. 105-164.3
27 apply to this Article:
28 -fi-)- "Commi ss ion e r" — m e an s — the — Commieeion e r — ©f — Motor
29 Vohicl e c .
30 (2) "Divi s ion" — m e an s — febe Division. — The Division of
31 Motor Vehicles, Department of Transportation.
32 (3) "Long-t e rm Long-term lease or r e ntal" — m e an s — a
33 rental. — A lease or rental made under a written
34 agreement to lease or rent property to the same
35 person for a period of at least 365 continuous
36 days.
37 (4) "Short '-t e rm Short-term lease or r e ntal" — m e ans — a
38 rental. — A lease or rental that is not a long-
39 term lease or rental."
40 Sec. 23. G.S. 105-187.3 reads as rewritten:
41 "S 105-187.3. Rate of tax.
42 (a) Amount. — The rate of the use tax imposed by this Article
4 3 is three percent (3%) of the retail value of a motor vehicle for
44 which a certificate of title is issued. The tax is payable as
Page 24 97-LJ-15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 provided in G.S. 105-187.4. The tax may not be more than one
2 thousand dollars ($1,000) for each certificate of title issued
3 for a Class A or Class B motor vehicle that is a commercial motor
4 vehicle, as defined in G.S. 20-4.01. The tax may not be more than
5 one thousand five hundred dollars ($1,500) for each certificate
6 of title issued for any other motor vehicle.
7 (b) Retail Value. -- The retail value of a motor vehicle for
8 which a certificate of title is issued because of a sale of the
9 motor vehicle by a retailer is the sales price of the motor
10 vehicle, including all accessories attached to the vehicle when
11 it is delivered to the purchaser, less the amount of any
12 allowance given by the retailer for a motor vehicle taken in
13 trade as a full or partial payment for the purchased motor
14 vehicle. The retail value of a motor vehicle for which a
15 certificate of title is issued because of a sale of the motor
16 vehicle by a seller who is not a retailer is the market value of
17 the vehicle, less the amount of any allowance given by the seller
18 for a motor vehicle taken in trade as a full or partial payment
19 for the purchased motor vehicle. A transaction in which two
20 parties exchange motor vehicles is considered a sale regardless
21 of whether either party gives additional consideration as part of
22 the transaction. The retail value of a motor vehicle for which a
23 certificate of title is issued because of a reason other than the
24 sale of the motor vehicle is the market value of the vehicle. The
25 market value of a vehicle is presumed to be the value of the
26 vehicle set in a schedule of values adopted by the Commi se ion e r .
27 Secretary of the Department of Transportation.
28 (c) Schedules. — In adopting a schedule of values for motor
29 vehicles, the CommiEsion e r Secretary of the Department of
30 Transportation shall adopt a schedule whose values do not exceed
31 the wholesale values of motor vehicles as published in a
32 recognized automotive reference manual."
33 Sec. 24. G.S. 105-187.4 reads as rewritten:
34 "S 105-187.4. Payment of tax.
35 (a) Method. 2:^ The tax imposed by this Article must be paid to
36 the Commieeion e r Division when applying for a certificate of
37 title for a motor vehicle. The Commi ee ion e r Division may not
38 issue a certificate of title for a vehicle until the tax imposed
39 by this Article has been paid. The tax may be paid in cash or by
4 check.
41 (b) Sale by Retailer. ^Z. When a certificate of title for a
42 motor vehicle is issued because of a sale of the motor vehicle by
43 a retailer, the applicant for the certificate of title must
44 attach a copy of the bill of sale for the motor vehicle to the
97-LJ-15 Page 25
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 application. A retailer who sells a motor vehicle may collect
2 from the purchaser of the vehicle the tax payable upon the
3 issuance of a certificate of title for the vehicle, apply for a
4 certificate of title on behalf of the purchaser, and remit the
5 tax due on behalf of the purchaser. If a check submitted by a
6 retailer in payment of taxes collected under this section is not
7 honored by the financial institution upon which it is drawn
8 because the retailer's account did not have sufficient funds to
9 pay the check or the retailer did not have an account at the
10 institution, the Division may suspend or revoke the license
11 issued to the retailer under Article 12 of Chapter 20 of the
12 General Statutes."
13 Sec. 25. G.S. 105-187.8 reads as rewritten:
14 "S 105-187.8. Refund for return of purchased motor vehicle.
15 When a purchaser of a motor vehicle returns the motor vehicle
16 to the seller of the motor vehicle within 90 days after the
17 purchase and receives a vehicle replacement for the returned
18 vehicle or a refund of the price paid the seller, whether from
19 the seller or the manufacturer of the vehicle, the purchaser may
20 obtain a refund of the privilege tax paid on the certificate of
21 title issued for the returned motor vehicle.
22 To obtain a refund, the purchaser must apply to the Division
23 for a refund within 30 days after receiving the replacement
24 vehicle or refund of the purchase price. The application must be
25 made on a form prescribed by the CommisBion Division and must be
26 supported by documentation from the seller of the returned
27 vehicle."
28 Sec. 26. G.S. 105-187.10 reads as rewritten:
29 "S 105-187.10. Penalties and remedies.
30 (a) Penalties. ^Z. '^^^ penalty for bad checks in G.S. 105-
31 236(1) applies to a check offered in payment of the tax imposed
32 by this Article. In addition, if a check offered to the Division
33 in payment of the tax imposed by this Article is returned unpaid
34 and the tax for which the check was offered, plus the penalty
35 imposed under G.S. 105-236(1), is not paid within 30 days after
36 the Commieeion e r Division demands its payment, the Commieeion e r
37 Division may revoke the registration plate of the vehicle for
38 which a certificate of title was issued when the check was
39 offered.
4 (b) Unpaid Taxes. 2:^ The remedies for collection of taxes in
41 G.S. 20-99 apply to the taxes levied by this Article and
42 collected by the Commiesion e r . Division.
43 (c) Appeals. ^Z. ^ taxpayer who disagrees with the presumed
44 value of a motor vehicle must pay the tax based on the presumed
Page 26 97-LJ-15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 value, but may appeal the value to the Commie s ion e r . Secretary of
2 the Department of Transportation. A taxpayer who appeals the
3 value must provide two estimates of the value of the v e hicl e — to
4 th e Commiseion e r . vehicle. If the Commi ss ion e r Secretary of the
5 Department of Transportation finds that the value of the vehicle
6 is less than the presumed value of the vehicle, the Commission e r
7 Division shall refund any overpayment of tax made by the taxpayer
8 with interest at the rate specified in G.S. 105-241.1 from the
9 date of the overpayment."
10 Sec. 27. G.S. 105-449.54 reads as rewritten:
11 "S 105-449.54. Commi e sion e r — ei — Motor — V e hicl e s Secretary of
12 Department of Transportation made process agent of nonresident
13 motor carriers.
14 The acceptance by a nonresident motor carrier of the rights
15 and privileges conferred by the laws now or hereafter in force in
16 this State permitting the operation of motor vehicles, as
17 evidenced by the operation of a motor vehicle by such
18 nonresident, either personally or through an agent or employee,
19 on the public highways of this State, or the operation by such
20 nonresident, either personally or through an agent or employee,
21 of a motor vehicle on the public highways of this State other
22 than as so permitted or regulated, shall be deemed equivalent to
23 the appointment by such nonresident motor carrier of the
24 Commi ss ion e r — of — Motor V e hicl e s; Secretary of the Department of
25 Transportation, or his successor in office, to be his true and
26 lawful attorney and the attorney of his executor or
27 administrator, upon whom may be served all summonses or other
28 lawful process or notice in any action, assessment proceeding or
29 other proceeding against him or his executor or administrator,
30 arising out of or by reason of any provisions of this Article
31 relating to such vehicle or relating to the liability for tax
32 with respect to operation of such vehicle on the highways of this
33 State. Said acceptance or operation shall be a signification by
34 such nonresident motor carrier of his agreement that any such
35 process against or notice to him or his executor or administrator
36 shall be of the same legal force and validity as if served on him
37 personally, or on his executor or administrator. All of the
38 provisions of G.S. 1-105 following the first paragraph thereof
39 shall be applicable with respect to the service of process or
40 notice pursuant to this section."
41 Sec. 28. G.S. 110-91 (a) { 13 ) reads as rewritten:
42 "(13) Transportation. — All child day care
4 3 facilities shall abide by North Carolina law
44 regulating the use of seat belts and child
97-LJ-15 Page 27
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 passenger restraint devices. All vehicles
2 operated by any facility staff person or
3 volunteer to transport children shall be
4 properly equipped with appropriate seat belts
5 or child restraint devices as approved by the
6 ': Commie cion e r — &i — Motor — V e hicloc . Secretary of
7 the Department of Transportation. Each adult
8 and child shall be restrained by an
9 appropriate seat safety belt or restraint
10 device when the vehicle is in motion. These
11 restraint regulations do not apply to vehicles
12 not required by federal law to be equipped
13 with seat restraints. All vehicles used to
14 transport children shall meet and maintain the
15 safety inspection standards of the Division of
16 Motor Vehicles of the Department of
17 Transportation and the facility shall comply
18 with all other applicable State and federal
19 ' laws and regulations concerning the operation
20 of a motor vehicle. Children may never be left
21 unattended in a vehicle.
22 The ratio of adults to children in child day
23 care vehicles may not be less than the staff/child
24 ratios prescribed by G.S. 110-91(7). The
25 Commission shall adopt standards for transporting
26 children under the age of two, including standards
27 addressing this particular age's staff /child ratio
28 during transportation."
29 Sec. 29. G.S. 143-166. 13(a) ( 13 ) reads as rewritten:
30 "(13) Members of License and Theft Enforcement
31 Section, Division of Motor Vehicles,
32 Department of Transportation, designated by
33 the Commission e r — &i — Motor — V e hicl e s Secretary
34 of the Department of Transportation as either
35 'inspectors' or uniformed weigh station
36 personnel;".
37 Sec. 30. G.S. 147-33.2(8) reads as rewritten:
38 "(8) At any time when the General Assembly is not in
39 session, suspend, or modify, in whole or in part,
40 generally or in its application to certain classes
41 of persons, firms, corporations or circumstances,
42 any law, rule or regulation with reference to the
43 subjects hereinafter enumerated, when he shall find
44 and proclaim after such study, investigation or
Page 28 97-LJ-15
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 hearings as he may direct, make or conduct, that
2 the operation, enforcement or application of such
3 law, or any part thereof, materially hinders,
4 impedes, delays or interferes with the proper
5 conduct of the war; said subjects being as follows:
6 a. The use of the roads, streets, and highways of
7 the State, with particular reference to speed
8 limits, weights and sizes of motor vehicles,
9 regulations of automobile lights and signals,
10 transportation of munitions or explosives and
11 parking or assembling of automobiles on
12 highways or any other public place within the
13 State; provided that any changes in the laws
14 referred to in this subdivision shall be first
15 approved by the Board of Transportation — afi4
16 the — Commission e r — &f — Motor — V e hicl e s — o^ — the
17 Stat e ; Transportation;
18 b. Public health, insofar as suspension or
19 modification of the laws in reference thereto
20 may be stipulated by the United States Public
21 Health Service or other authoritative agency
22 of the United States government as being
23 essential in the interest of national safety
24 and in the successful prosecution of the war
25 effort; provided that such suspension or
26 modification of public health laws shall first
27 be submitted to and approved by the Commission
28 for Health Services;
29 c. Labor and industry; provided, however, that
30 any suspension or modification of laws
31 regulating labor and industry shall be only
32 such as are certified by the Commissioner of
33 Labor of the State as being necessary in the
34 interest of national safety and in the
35 furtherance of the war program; and provided
36 further that any such changes as may result in
37 an increase in the hours of employment over
38 and above the limits of the existing statutory
39 provisions shall carry provision for adequate
40 additional compensation; and provided,
41 further, that no changes in such laws or
42 regulations shall be made as affecting
4 3 existing contracts between labor and
97-LJ-15 Page 29
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 management in this State except with the
2 approval of the contracting parties;
3 d. Whenever it should be certified by the
4 Adjutant General of the State that emergency
5 conditions require such procedure, the
6 Governor, with the approval of the Council of
7 State, shall have the power to call up and
8 mobilize State militia in addition to the
9 existing units of the State guard; to provide
10 transportation and facilities for mobilization
11 and full utilization of the State guard, or
12 other units of militia, in such emergency; and
13 to allocate from the Contingency and Emergency
14 _ Fund such eimounts as may be necessary for such
is purposes during the period of such emergency;
16 e. Manufacture, sale, transportation, possession
17 and use of explosives or fireworks, or
18 articles in simulation thereof, and the sale,
19 use and handling of firearms;".
20 Sec. 31. This act is effective when it becomes law.
21
Explanation of Proposal
This proposal implements a recommendation of the performance
audit of the Division of Motor Vehicles that was conducted by MGT
of America, Inc. The proposal deletes the position of
Commissioner of Motor Vehicles and makes the Secretary of
Transportation responsible for the Division of Motor Vehicles.
The proposal gives the Secretary the discretion to appoint a
Deputy Secretary of the Department of Transportation to be in
charge of the Division. The bill is long because it changes many
references to the Commissioner.
Page 30 97-LJ-15
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
S or H
Legislative Proposal 6
97-LJX-007(1.3)
(THIS IS A DRAFT AND NOT READY FOR INTRODUCTION)
Short Title: Modify Emissions Inspection Laws. (Public]
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MODIFY THE PENALTY SCHEDULE FOR VIOLATIONS OF THE
3 VEHICLE EMISSION INSPECTION PROGRAM, TO CLARIFY THE PROCEDURE
4 FOR IMPOSING THE PENALTIES, AND TO MAKE OTHER CHANGES TO THE
5 VEHICLE EMISSION INSPECTION LAWS.
6 The General Assembly of North Carolina enacts:
7 Section 1. G.S. 20-183.4 (b) reads as rewritten:
8 "(b) Station Qualifications. — An applicant for a license as
9 a safety inspection station must meet all of the following
10 requirements:
11 (1) Have a place of business that has adequate
12 facilities, space, and equipment to conduct a
13 safety inspection.
14 (2) Regularly employ at least one mechanic who has a
15 safety inspection mechanic license.
16 (3) Designate the individual who will be responsible
17 for the day-to-day operation of the station. The
18 individual designated must be of good character and
19 have a reputation for honesty. "
This section adds a requirement for obtaining a safety
inspection station license and an emissions inspection station
license. The new requirement is the designation of the person
who will be in charge of the station. That person must be of
97-LJX-007 Page 31
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
good character and have a reputation for honesty. Under current
law, an inspection mechanic must be of good character and have a
reputation for honesty. The addition is made to the statute that
applies to safety inspection stations. The new requirement will
apply to emissions inspection stations as well because an
emissions inspection station must meet all of the requirements of
a safety inspection station plus additional requirements.
2 Section 2. G.S. 20-183. 4C reads as rewritten:
3 "S 20-183. 4C. When a vehicle must be in s p e ct e d , inspected; one-
4 way trip permit.
5 (a) Inspection. — A vehicle that is subject to a safety
6 inspection, an emissions inspection, or both must be inspected as
7 follows:
8 (1) A new vehicle must be inspected before it is
9 off e r e d for s al e sold at retail in this State.
10 (2) A used vehicle must be inspected before it is
11 offered for sale at retail in this State by a
12 dealer at a location other than a public auction.
13 (3) A used vehicle that is offered for sale at retail
14 in this State by a dealer at a public auction must
15 be inspected before it is offered for sale unless
16 it has an inspection sticker that was put on the
17 vehicle under this Part and does not expire until
18 at least nine months after the date the vehicle is
19 offered for sale at auction.
20 (4) A used vehicle acquired by a resident of this State
21 from a person outside the State must be inspected
22 within 10 days after the vehicle is registered with
23 the Division.
24 (5j A vehicle owned by a new resident of this State who
25 transfers the registration of the vehicle from the
26 resident's former home state to this State must be
27 inspected within 10 days after the vehicle is
28 registered with the Division.
29 (6) A vehicle that has been inspected in accordance
30 with this Part must be inspected by the last day of
31 the month in which the inspection sticker on the
32 vehicle expires, unless another subdivision of this
33 section requires it to be inspected sooner.
34 (b) Permit. — The Division may issue a one-way trip permit to
35 a person that authorizes the person to drive to an inspection
36 station a vehicle whose inspection sticker has expired. The
37 permit must describe the vehicle whose inspection sticker has
Page 32
97-LJX-007
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 expired. The permit authorizes the person to drive the described
2 vehicle only from the place the vehicle is parked to an
3 inspection station. "
This section makes two changes in the current law. First, it
deletes the requirement that a new vehicle be inspected before it
is offered for sale and substitutes a requirement that the new
vehicle be inspected before it is sold. This change applies to
both safety and emissions inspections. The change eliminates the
problem dealers have of putting a sticker on a car that does not
sell for several months and then, at the request of the buyer,
having to do another inspection and put a more current sticker on
the car. Before 1995, dealers could put a substitute safety
inspection form on a separate piece of paper and then put a
sticker on when the vehicle was sold. This change eliminates the
need for an inspection until the vehicle is sold and does not
revive the former substitute form.
Second, the section restores the one-way trip permit for use in
taking a vehicle with an expired inspection sticker to a station
for inspection. Current law provides a defense to a charge of a
violation in this circumstance. The change is made as a result
of a determination that it is better public policy to provide a
way for a person to comply with the law in this circumstance by
obtaining the permit rather than to tell the person to take a
chance on not being caught and allowing them a defense that must
be proven if they are caught. The permit was deleted to reduce
the administrative burden on the Division.
4
5 Section 3. G.S. 20-183. 4D{c) reads as rewritten:
6 "(c) Content of Sticker. — An inspection sticker issued for a
7 vehicle that is subject to a safety inspection only must be a
8 different color from an inspection sticker issued for a vehicle
9 that is subject to both a safety and an emissions inspection. An
10 inspection sticker must indicate when it expires, must be printed
11 with a unique serial number and an official progreun seal, and
12 must be counterfeit resistant. The side of an inspection sticker
13 that is readable from the interior of a vehicle must contain the
14 following information:
15 (1) The date the inspection was performed.
16 (2) The odometer reading when the inspection was
17 performed.
18 (3) The signature, initials, or other identification of
19 the mechanic who performed the inspection and put
20 the sticker on the windshield.
21 (4 ) The vehicle identification number of the vehicle.
97-LJX-007 Page 33
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
This section requires an inspection sticker to contain the VIN
of the vehicle to which the sticker is attached. This change is
made at the request of the Division.
1 Section 4. G.S. 20-183.6 reads as rewritten:
2 "S 20-183.6. Businesses that replace windshields must register
3 with Division to get inspection stickers.
4 A person who is engaged in the business of replacing
5 windshields on vehicles that are subject to inspection under this
6 Part may register with the Division to obtain replacement
7 inspection stickers for use on replaced windshields. A
8 replacement inspection sticker put on a windshield that has been
9 replaced must contain the same information and expire at the same
10 time as the inspection sticker it replaces. A person who puts a
11 replacement inspection sticker on a replaced windshield must
12 remove the inspection sticker from the windshield that was
13 r e plac e d replaced , attach the removed inspection sticker to the
14 person's copy of the receipt given for replacing the windshield^
15 and keep the copy of the receipt containing the removed
16 inspection sticker until 30 days 18 months after it e xpir es, the
17 sticker was removed.
18 A person registered under this section must keep records of
19 replacement stickers put on replaced windshields and must be able
20 to account for all inspection stickers received from the
21 Division. The Division may suspend or revoke the registration of
22 a person under this section if the person fails to keep records
23 required by the Division or is unable to account for inspection
24 stickers received from the Division. An auditor of the Division
25 may review the records of a person registered under this section
26 during normal business hours.
27 A person who is registered under this section and has a safety
28 inspection station license or an emissions inspection station
29 license must keep the records of the inspection stickers used on
30 replaced windshields separate from the records of the inspection
31 stickers used on vehicles inspected. A person who is registered
32 under this section and has an inspection station license may not
33 inspect a vehicle whose windshield is being replaced unless the
34 inspection sticker on the windshield has expired or expires at
35 the end of the month in which the windshield is being replaced
36 and the person has the vehicle owner's permission to inspect the
37 vehicle. "
38 Section 5. G.S. 20-183.8 reads as rewritten:
39 "S 20-183.8. Infractions and criminal offenses for violations of
40 inspection requirements.
Page 34 97-LJX-007
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 "(a) Infractions. — A person who does any of the following
2 commits an infraction and, if found responsible, is liable for a
3 penalty of up to fifty dollars ($50.00):
4 (1) Operates a motor vehicle that is subject to
5 inspection under this Part on a highway or public
6 vehicular area in the State when the vehicle has
7 not been inspected in accordance with this Part, as
8 evidenced by the vehicle's lack of a current
9 inspection sticker or otherwise.
10 (2) Allows an inspection sticker to be put on a vehicle
11 owned or operated by that person, knowing that the
12 vehicle was not inspected before the sticker was
13 attached or was not inspected properly.
14 (3) Attach es Puts an inspection sticker t© on a
15 vehicle, knowing or having reasonable grounds to
16 know an inspection of the vehicle was not performed
17 or was performed improperly. A person who is cited
18 for a civil penalty under G.S. 20-183. SB for an
19 emissions violation involving the inspection of a
20 vehicle may not be charged with an infraction under
21 this subdivision based on that same vehicle. "
22 (b) Defenses to Infractions. — Any of the following is a
23 defense to a violation under subsection (a) of this section:
24 (1) The vehicle was continuously out of State for at
25 least the 30 days preceding the date the inspection
26 sticker expired and a current inspection sticker
2 7 was obtained within 10 days after the vehicle came
28 back to the State.
29 (2) The vehicle displays a dealer license plate or a
30 transporter plate, the dealer repossessed the
31 vehicle or otherwise acquired the vehicle within
32 the last 10 days, and the vehicle is being driven
33 from its place of acquisition to the dealer's place
34 of business or to an inspection station.
35 4-^ Th e v e hicl e was in a s tat e of di s r e pair on th e dat e
36 th e insp e ction s tick e r e xpir e d, — th e own e r has sinc e
37 r e pair e d — th e v e hicl e , — febe — v e hicl e — is — b e ing driv e n
38 from th e own e r's r es id e nc e or oth e r plac e wh e r e th e
39 own e r r e pair e d febe v e hicl e 1« an insp e ction
40 station, — and th e own e r has not oth e rwi se driv e n th e
41 v e hicl e s inc e th e insp e ction stick e r e xpir e d .
42 (4) The charged infraction is described in subdivision
43 (a)(1) of this section, the vehicle is subject to a
44 safety-only inspection, and the vehicle owner
97-LJX-007 Page 35
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 establishes in court that the vehicle was inspected
2 after the citation was issued and within 30 days of
3 the expiration date of the inspection sticker that
4 was on the vehicle when the citation was issued.
5 (c) Felony. — A person who forg es — a« — insp e ction — s tick e r
5 conunit s — a — Clas s — I — f e lony , does any of the following commits a
7 Class I felony;
8 ( 1 ) Forges an inspection sticker.
9 (2 ) Buysy sells ^ or possesses a forged inspection
10 sticker.
11 ( 3) Buys, sells, or possesses an inspection sticker
12 other than as the result of a vehicle inspection in
13 which the vehicle passed the inspection or for
14 which the vehicle received a waiver. "
This section makes three changes. First, it prevents an
emissions inspection station or an emissions mechanic from being
subject to both civil penalties and an infraction for the same
errors in performing emissions inspections of vehicles. It does
this by precluding the application of the infraction. The civil
penalties are harsher than the infraction. The infraction would
continue to apply to safety inspections, as opposed to emissions
inspections. Vehicles in 9 counties in the State are subject to
emissions inspections, but vehicles in every county are subject
to safety inspections.
Second, it deletes a defense that is no longer needed because
of the addition of the one-way trip permit. Third, it adds
additional felony offenses for buying, selling, or possessing
forged or real inspection stickers.
15 Section 6. G.S. 20-183. 8B reads as rewritten:
16 "S 20-183. 8B. Civil penalties against license holders and
17 suspension or revocation of license for emissions violations.
18 (a) Kinds of Violations. — The civil penalty schedule
19 established in this section applies to emissions self-inspectors,
20 emissions inspection stations, and emissions inspection
21 mechanics. The schedule categorizes emissions violations into
22 serious (Type I), minor (Type II), and technical (Type III)
23 violations.
24 A serious violation is a violation of this Part or a rule
25 adopted to implement this Part that directly affects the emission
26 reduction benefits of the emissions inspection program. A minor
27 violation is a violation of this Part or a rule adopted to
28 implement this Part that reflects negligence or carelessness in
29 conducting an emissions inspection or complying with the
30 emissions inspection requirements but does not directly affect
Page 36 97-LJX-007
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 the emission reduction benefits of the emissions inspection
2 program. A technical violation is a violation that is not a
3 serious violation, a minor violation, or another type of offense
4 under this Part.
5 (b) Penalty Schedule. — The Division must take the following
6 action for a violation:
7 (1) Type I. — For a first or second Type I violation
8 by an emissions self-inspector or an emissions
9 inspection station, assess a civil penalty of two
10 hundred fifty dollars ($250.00) and suspend the
11 license of the business for six months. For a third
12 or subsequent Type I violation within se v e n three
13 years by an emissions self-inspector or an
14 emissions inspection station, assess a civil
15 penalty of one thousand dollars ($1,000) and revoke
16 the license of the business for two years.
17 For a first or second Type I violation by an
18 emissions inspection mechanic, assess a civil
19 penalty of one hundred dollars ($100.00) and
20 suspend the mechanic's license for six months. For
21 a third or subsequent Type I violation within seven
22 years by an emissions inspection mechanic, assess a
23 civil penalty of two hundred fifty dollars
24 ($250.00) and revoke the mechanic's license for two
25 years.
26 (2) Type II. — For a first or second Type II violation
27 by an emissions self-inspector or an emissions
28 inspection station, assess a civil penalty of one
29 hundred dollars ($100.00). For a third or
30 subsequent Type II violation within s e v e n three
31 years by an emissions self -inspector or an
32 emissions inspection station, assess a civil
33 penalty of two hundred fifty dollars ($250.00) and
34 suspend the license of the business for 90 days.
35 For a first or second Type II violation by an
36 emissions inspection mechanic, assess a civil
37 penalty of fifty dollars ($50.00). For a third or
38 subsequent Type II violation within seven years by
39 an emissions inspection mechanic, assess a civil
4 penalty of one hundred dollars ($100.00) and
41 suspend the mechanic's license for 90 days.
42 (3) Type III. — For a first or second Type III
43 violation by an emissions self-inspector, an
44 emissions inspection station, or an emissions
97-LJX-007 Page 37
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 inspection mechanic, send a warning letter. For a
2 third or subsequent Type III violation within eevon
3 three years by the same emissions license holder,
4 assess a civil penalty of twenty-five dollars
5 ($25.00).
6 (c) Station or Self -Inspector Responsibility. — It is the
7 responsibility of an emissions inspection station and an
8 emissions self-inspector to supervise the emissions mechanics it
9 employs. A Typ e I violation by an emissions inspector mechanic is
10 considered a Typ e — I- violation by the station or self-inspector
11 for whom the mechanic is employed, n Typn tt .^r I T T violation by
12 Aft — omissions — m e chanic — is — not — automatically — a — Typ e — ii — oi: — m
13 violation by th e station or s e lf-insp e ctor for whom th e m e chanic
14 is — e mploy e d . The — Division may — d e t e rmi ne — which — Typ e — I-I — &r — Type
15 -1-14 — violations — by — a« — e mi ss ion s — m e chanic — **::€ — also — violations — by
16 th e station or s e lf-insp e ctor .
17 (d) Missing Stickers. — The Division must assess a civil
18 penalty against an emissions inspection station or an emissions
19 self-inspector that cannot account for an emissions inspection
20 sticker issued to it. A station or a self -inspector cannot
21 account for a sticker when the sticker is missing and the station
22 or self-inspector cannot establish reasonable grounds for
23 believing the sticker was stolen or destroyed by fire or another
24 accident.
25 The amount of the penalty is twenty-five dollars ($25.00) for
26 each missing sticker. If a penalty is imposed under subsection
27 (b) of this section as the result of missing stickers, the
28 monetary penalty that applies is the higher of the penalties
29 required under this subsection and subsection (b); the Division
30 may not assess a monetary penalty as a result of missing stickers
31 under both this subsection and svibsection (b). Imposition of a
32 monetary penalty under this subsection does not affect suspension
33 or revocation of a license required under subsection (b)."
This section revises the length of time during which prior
violations can be taken into account in determining the
applicable penalty for an emissions violation. The period is
reduced from 7 years to 3 years for emissions inspection stations
and self-inspectors. The reason for the reduction is the
frequency of inspections done by the Division of Motor Vehicles.
Federal law requires the Division to conduct overt performance
audits of stations twice per year for each test lane of the
station and additional covert audits. Given this frequency,
three years is a sufficient period to discern the stations whose
Page 38 97-LJX-007
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
performance is below the required standard and therefore subject
to a 2-year license revocation.
The section also reduces the period for mechanics for technical
(Type III) violations. It reduces the period from 7 years to 3
years. It does this to avoid complicating the penalty schedule
for Type III violations by creating a distinction between
stations and mechanics. These violations involve the failure to
comply with DMV recordkeeping or administrative requirements and
should be as simple as possible.
The section also eliminates the direction to the Division to
determine which Type II or III violations of a mechanic are to be
attributable to the station. The Division has not exercised this
authority. The failure of the Division to do this by rule makes
the Division unable to effectively enforce Type II or III
penalties against the stations.
1
2 Section 7. G.S. 20-183. 8C reads as rewritten:
3 "S 20-183. 8C. Acts that are Type I, II, or III emissions
4 violations.
5 (a) Type I. — It is a Type I violation for an emissions self-
6 inspector, an emissions inspection station, or an emissions
7 inspection mechanic to do any of the following:
8 (1) Put an emissions inspection sticker on a vehicle
9 without performing an emissions inspection of the
10 v e hicl e or aft e r p e rforming an e miseion s — insp e ction
11 in which th e v e hicl e did not pass — fehe — insp e ction .
12 vehicle.
13 ( la) Put an emissions inspection sticker on a vehicle
14 after performing an emissions inspection of the
15 vehicle and determining that the vehicle did not
16 pass the inspection.
17 (2) Use a test-defeating strategy when conducting an
18 emissions inspection, such as holding the
19 accelerator pedal down slightly during an idle
20 test, disconnecting or crimping a vacuum hose to
21 effect a passing result, or changing the emission
22 standards for a vehicle by incorrectly entering the
23 vehicle type or model year to achieve a passing
24 result.
25 (3) Allow a person who is not licensed as an emissions
26 inspection mechanic to perform an emissions
27 inspection for a self-inspector or at an emissions
28 station.
97-LJX-007 Page 39
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 (4) Sell or otherwise give an inspection sticker to
2 another other than as the result of a vehicle
3 inspection in which the vehicle passed the
4 inspection or for which the vehicle received a
5 waiver.
6 ( 5 ) Be unable to account for five or more inspection
7 stickers at any one time upon the request of an
8 auditor of the Division.
9 (6) Perform a safety-only inspection on a vehicle that
10 is subject to both a safety and an emissions
11 inspection.
12 (7) Transfer an inspection sticker from one vehicle to
13 another.
14 (b) Type II. — It is a Type II violation for an emissions
15 self-inspector, an emissions inspection station, or an emissions
16 inspection mechanic to do any of the following:
17 (1) Use the identification code of another to gain
18 access to an emissions analyzer.
19 (2) Keep inspection stickers and other compliance
20 documents in a manner that makes them easily
21 accessible to individuals who are not inspection
22 mechanics.
23 (3 ) Put an emissions inspection sticker on a vehicle
24 that is required to have one of the following
25 emissions control devices but does not have it;
26 a_^ Catalytic converter.
27 b^ PCV valve.
28 c^ Thermostatic air control.
29 d^ Oxygen sensor.
30 e^ Unleaded gas restrictor.
31 f_^ Gasoline tank cap.
32 (4 ) Put an emissions inspection sticker on a vehicle
33 that is required to have one of the following
34 systems without checking the system to determine if
35 it is in good working order;
36 a^ Exhaust system.
37 b^ Air injection system.
38 c^ Evaporative emission system.
39 (c) Type III. — It is a Type III violation for an emissions
40 self-inspector, an emissions inspection station, or an emissions
41 inspection mechanic to do any of the following;
42 (1) Fail to post an emissions license issued by the
43 Division.
Page 40 97-LJX-007
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 (2) Fail to send information on emissions inspections
2 to the Division at the time or in the form required
3 by the Division.
4 ( 3 ) Fail to post emissions information required by
5 federal law to be posted.
6 (4 ) Charge an amount for performing an inspection that
7 differs from the amount set in this Part.
8 ( 5 ) Fail to put the required information on an
9 inspection sticker in a legible manner using
10 indelible ink.
11 ( 6) Fail to put the required information on an
12 inspection receipt in a legible manner.
13 (7 ) Fail to maintain an emission analyzer calibration
14 log.
15 (d) Other Acts. — The lists in this section of the acts that
16 are Type I, Type II, or Type III violations are not the only acts
17 that are one of these types of violations. The Division may
18 designate other acts that are a Type I, Type II, or Type III
19 violation.
This section clarifies the penalty that applies when a vehicle
that should not have passed emissions inspection receives a
passing evaluation and, therefore, an emissions sticker, through
negligence or oversight of the inspector. The current law has
been interpreted to make the unintentional passes of below
standard vehicles a Type I violation. This interpretation is
contrary to the intent of the law, however. The section makes it
clear that an unintentional pass of a below standard vehicle is a
Type II rather than a Type I violation. The categorization of the
violation is critical because a Type I violation carries an
automatic license suspension but Type II does not.
20 Section 8. Article 3A of Chapter 20 of the General
21 Statutes is amended by inserting a new statute between G.S.20-
22 183. 8C and 20-183. 8D to read:
23 " S 20-183. 8C.1. Procedure for notifying a license holder of
24 certain emission violations.
2 5 When an auditor of the Division finds that an emissions
26 violation has occurred that could result in the loss of an
27 emissions inspection station license, an emissions self-inspector
28 license, or an emissions mechanic license, the auditor must give
29 the affected license holders written notice of the finding. The
30 notice must be given within five days after the violation
31 occurred. The notice must state the monetary penalty that could
32 apply to the violation as well as any period of suspension or
33 revocation that could apply to the violation. The notice must
97-LJX-007 Page 41
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 also inform the license holder of the right to a hearing if the
2 adverse action is imposed.
This section specifies the procedure for assessing a Type I
penalty violation. These violations require suspension of a
license. The effective date of a finding of violation therefore
determines when a station must stop doing business.
3 Section 9. G.S. 20-183. 8D reads as rewritten:
4 "S 20-183. BD. Suspension or revocation of lic e nco — fo*^ — safety
5 violation s, license.
6 (a) Safety. — The Division may suspend or revoke a safety
7 self-inspector license, a safety inspection station license, and
8 a safety inspection mechanic license issued under this Part if
9 the license holder fails to comply with this Part or a rule
10 adopted by the Commissioner to implement this Part.
11 (b) Emissions. — The Division may suspend or revoke an
12 emissions self-inspector license, an emissions inspection station
13 license, and an emissions inspection mechanic license issued
14 under this Part for any of the following reasons;
15 ( 1 ) The suspension or revocation is imposed under G.S.
16 20-183. 8B.
17 (2 ) Failure to pay a civil penalty imposed under G.S.
18 20-183. 8B within 30 days after it is imposed. "
This section makes failure to pay a civil penalty a grounds for
revoking an emissions license. Current law does not address
this.
19 Section 10. G.S. 20-99(e) reads as rewritten:
20 "(e) The provisions, procedures, and remedies provided in this
21 section s hall b e applicabl e apply to the collection of penalties
22 imposed under the provisions of Article 3A of this Chapter and of
23 G.S. 20-96, 20-118, or any other provisions of this Chapter
24 imposing a tax or penalty for operation of a vehicle in excess of
25 the weight limits provided in this Chapter and the Commissioner
26 is authorized to collect such taxes or penalties by the use of
27 the procedure established in subsections (a), (b), (c) and (d) of
28 this section."
29 Section 11. G.S. 20-183. 8(c), as amended by Section 5 of
30 this act, becomes effective November 1, 1997, and applies to
31 offenses committed on or after that date. The remaining changes
32 made by Section 5 of this act and the other sections of this act
33 become effective July 1, 1997.
Page 42 97-LJX-007
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
S or H
Legislative Proposal 7
97-LJ-17
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: Ensure Uniform Emissions Fee. (Public)
Sponsors: Transportation Oversight.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO CLARIFY THAT THE FEE SET BY LAW FOR A VEHICLE EMISSIONS
3 INSPECTION IS A UNIFORM, STATEWIDE FEE.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-183. 7{a) reads as rewritten:
6 "(a) Fee Amount. — When a fee applies to an inspection of a
7 vehicle or the issuance of an inspection sticker, the fee must be
8 collected. The following fees apply to an inspection of a
9 vehicle and the issuance of an inspection sticker:
10 Type Inspection Sticker
11 Safety Only, Without After-
12 Factory Tinted Window $ 8.25 $ 1.00
13 Safety Only, With After-Factory
14 Tinted Window 18.25 1.00
15 Emissions and Safety, Without
16 After-Factory Tinted Window 17.00 2.40
17 Emissions and Safety, With
18 After-Factory Tinted Window 27.00 2.40.
19 The fee for performing an inspection of a vehicle applies when
20 an inspection is performed, regardless of whether the vehicle
21 passes the inspection. The fee for an inspection sticker applies
22 when an inspection sticker is put on a vehicle. The fee for
23 performing an inspection of a vehicle with a tinted window
97-LJ-17 Page 43
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1997
1 applies only to an inspection performed with a light meter after
2 a safety inspection mechanic determined that the window had
3 after-factory tint.
4 A vehicle that is inspected at an inspection station and fails
5 the inspection is entitled to be reinspected at the same station
6 at any time within 30 days of the failed inspection without
7 paying another inspection fee."
8 Section 2. This act is effective when it becomes law.
Explanation of Proposal
This proposal makes it clear that the statutory fee for a
vehicle emissions inspection must be charged for each inspection.
This is the current interpretation and intent. A fee that is
lower or higher than the set amount is not allowed.
Page 44 97-LJ-17
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
S or H
LEGISLATIVE PROPOSAL 8
97-RW-232
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: No Fee For Mail-In Registration. (Public)
Sponsors :
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ELIMINATE THE ONE DOLLAR FEE FOR MAIL-IN VEHICLE
3 REGISTRATION.
4 The General Assembly of North Carolina enacts:
5 Section 1. G.S. 20-85.1 reads as rewritten:
6 S 20-85.1. Registration by mail; one-day title service; fees.
7 "(a) The owner of a vehicle registered in North Carolina may
8 renew that vehicle registration by mail. A postag e and handling
9 i^e — &i — »fte — dollar — ($1.00) — por vohiclo — to b e — r e gist e r e d — shall — be
10 charged for this s e rvic e.
11 (b) The Commissioner and the employees of the Division
12 designated by the Commissioner may prepare and deliver upon
13 request a certificate of title, charging a fee of fifty dollars
14 ($50.00) for one-day title service, in lieu of the title fee
15 required by G.S. 20-85(a). The fee for one-day title service
16 must be paid by cash or by certified check. The fee collected
17 under this subsection shall be credited to the Highway Trust
18 Fund.
Page 45
1 -f-&4 — Th e foe colloctGd und e r subcGction — (-a-) — shall b e cr e ditod to
2 th e Highway Fund . 5!4ie — foo collect e d und e r cubcoction — f-b-) — shall
3 b e cr e ditod to th e Highway Trust Fund ."
4 Section 2. This act becomes effective December 1, 1997.
Page 46
Explanation of Legislative Proposal 8
No fee for mail-in registration
This draft would eliminate the $1 additional fee currently
charged by the Division of Motor Vehicles to persons who renew
their vehicle registration by mail.
Page 47
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
S or H
LEGISLATIVE PROPOSAL 9
97-RW-233
(THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
Short Title: 60 Days To Change DMV Info. (Public
Sponsors ;
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ESTABLISH A STANDARD TIME PERIOD OF 60 DAYS IN WHICH TO
3 OBTAIN OR CHANGE A DRIVERS LICENSE, A SPECIAL IDENTIFICATION
4 CARD, OR A VEHICLE REGISTRATION.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 20-4.6 is repealed.
7 Section 2. G.S. 20-7(a) reads as rewritten:
8 "(a) License Required. — To drive a motor vehicle on a
9 highway, a person must be licensed by the Division under this
10 Article or Article 2C of this Chapter to drive the vehicle and
11 must carry the license while driving the vehicle. The Division
12 issues regular drivers licenses under this Article and issues
13 commercial drivers licenses under Article 2C.
14 A license authorizes the holder of the license to drive any
15 vehicle included in the class of the license and any vehicle
16 included in a lesser class of license, except a vehicle for which
17 an endorsement is required. To drive a vehicle for which an
18 endorsement is required, a person must obtain both a license and
19 an endorsement for the vehicle. A regular drivers license is
Page 48
1 considered a lesser class of license than its commercial
2 counterpart.
3 The classes of regular drivers licenses and the motor vehicles
4 that can be driven with each class of license are:
5 (1) Class A. — A Class A license authorizes the holder
6 to drive any of the following:
7 a. A Class A motor vehicle that is exempt under
8 G.S. 20-37.16 from the commercial drivers
9 license requirements.
10 b. A Class A motor vehicle that has a combined
11 GVWR of less than 26,001 pounds and includes
12 as part of the combination a towed unit that
13 has a GVWR of at least 10,001 pounds.
14 (2) Class B. — A Class B license authorizes the holder
15 to drive any Class B motor vehicle that is exempt
16 under G.S. 20-37.16 from the commercial drivers
17 license requirements.
18 (3) Class C. — A Class C license authorizes the holder
19 to drive any of the following:
20 a. A Class C motor vehicle that is not a
21 commercial motor vehicle.
22 b. When operated by a volunteer member of a fire
23 department, a rescue squad, or an emergency
24 medical service (EMS) in the performance of
25 duty, a Class A or Class B fire-fighting,
26 rescue, or EMS motor vehicle or a combination
27 of these vehicles.
28 The Commissioner may assign a unique motor vehicle to a class
29 that is different from the class in which it would otherwise
30 belong.
31 A new resident of North Carolina who has a drivers license
32 issued by another jurisdiction must obtain a license from the
33 Division within -^ 6£ days after becoming a resident."
34 Section 3. G.S. 20-7(f) reads as rewritten:
35 " (f) Expiration and Temporary License. — The first drivers
36 license the Division issues to a person expires on the person's
37 fourth or subsequent birthday that occurs after the license is
38 issued and on which the individual's age is evenly divisible by
39 five, unless this subsection sets a different expiration date.
40 The first drivers license the Division issues to a person who is
Page 49
1 at least 17 years old but is less than 18 years old expires on
2 the person's twentieth birthday. The first drivers license the
3 Division issues to a person who is at least 62 years old expires
4 on the person's birthday in the fifth year after the license is
5 issued, whether or not the person's age on that birthday is
5 evenly divisible by five.
7 A drivers license that was issued by the Division and is
8 renewed by the Division expires five years after the expiration
9 date of the license that is renewed. A person may apply to the
10 Division to renew a license during the 60-day period before the
11 license expires. The Division may not accept an application for
12 renewal made before the 60-day period begins.
13 Any p e rcon s e rving in th e arm e d forc e s of the Unit e d Statoc on
14 active duty — and holding — a valid drivorc — liconco properly — iccu e d
15 under — this — c e ction — ft«4 — station e d — outcide — febe — Stat e — &i — North
16 Carolina — may — ren e w — the — lic e ns e — by — making — application — fee — feive
17 Division — by — mail . Afty — oth e r — p e rson > — e xc e pt — a — nonr e sid e nt, — wh&
18 holds — a valid driv e rs — lic e ns e — issued und e r this — section and who
19 is temporarily residing outsid e North Carolina, — may also r e n e w by
2 making application to th e Division by mail . For purpos e s of this
21 section "temporarily" shall m e an not l e ss than 30 days continuous
22 absence from North Carolina . In e ith e r cas e , — the-
2 3 The Division may renew by mail a drivers license issued by the
24 Division to a person who meets any of the following descriptions;
2 5 ( 1 ) Is serving on active duty in the armed forces of
26 the United States and is stationed outside this
27 State.
2 8 (2 ) Is a resident of this State and has been residing
29 outside the State for at least 30 continuous days.
30 When renewing a license by mail, the Division may waive the
31 examination and color photograph that would otherwise be required
32 ^o*: — feite — r e n e wal — &i — a — drivers — license, for the renewal and may
33 impose in li e u th e reof any conditions it consid e rs appropriate to
34 e ach particular application , finds advisable. A license renewed
35 by mail is a temporary license that expires 2G- 60 days after the
36 person to whom it is issued returns to this State."
37 Section 4. G.S. 20-7.1 reads as rewritten:
38 "S 20-7.1. Notification Notice of change of addrocc . address or
3 9 name .
Page 50
1 Wh e never tho hold e r of a licenc e iecu e d undor th e provicion of
2 C . S . — 30 - 7 — h^« — a — chang e — in th e — addr e ss — a* — shown on — such — lic e ns e ;
3 he — &¥^ — &he — shall — apply — ir&f^ — a — duplicat e — lic e nce — within — 6-0 — days
4 aft e r — such — addr e cc — hd€ — be e n — chang e d . — Provided, that — i-i — feh^
5 lic e ns ee ' c — mailing — addr e ss — h*e — b ee n — changed — by — governm e ntal
6 action and there has boon no actual change of resid e nc e location,
7 upon — giving — notic e — in writing — fee — fehe — Division — &i — Motor V e hicloc
8 in Raleigh within 60 days of this change of addrecc, — th e lic e ncoe
9 fftay — \iee — hie — curr e nt — lic e nse — &f^ — p e rmit — until — ife€ — e xpiration — et
10 obtain a duplicat e licens e or p e rmit chov/ing th e n e w address upon
11 payment — &i — fehe — requir e d — i^e-. — He — person — shall — be — charged — with
12 having — violat e d — this — section v/h e n — only — his — mailing — addrecc — h^e-
13 b ee n changed by governmental action .
14 (a) Address. -- A person whose address changes from the address
15 stated on a drivers license must notify the Division of the
16 change within 60 days after the change occurs. If the person's
17 address changed because the person moved, the person must obtain
18 a duplicate license within that time limit stating the new
19 address. A person who does not move but whose address changes
20 due to governmental action may not be charged with violating this
21 subsection.
22 (b) Name. — A person whose name changes from the name stated
23 on a drivers license must notify the Division of the change
24 within 60 days after the change occurs and obtain a duplicate
25 drivers license stating the new name,
26 (c) Fee. — G.S. 20-14 sets the fee for a duplicate license. "
27 Section 5. G.S. 20-37. 12(e) reads as rewritten:
2 8 "(e) In accordance with G . S . — 20 - 7, G.S. 20-7 sets the time
29 period in which a new resident of North Carolina h^te — 30 days to
30 must obtain a license from the Division. The Commissioner may
31 establish by rule the conditions under which the test
32 requirements for a commercial drivers license may be waived for a
33 new resident who is licensed in another state."
34 Section 6. G.S. 20-37.9 reads as rewritten:
35 "S 20-37.9. Notification Notice of change of addrocc . address or
36 name.
37 Wh e never — fehe — holder — &i — a — cpocial — id e ntification — card — iccuod
38 undor G . S . — 20 - 37 . 7 — hae — a — chang e — in th e addrecc — a€ — chown on th e
39 special identification card, — ho or ch e shall apply for roiccuanco
40 of a cpocial identification card within 60 dayc aft e r th e addr e cc
Page 51
1 fe«t€ b ee n — chanqed . 5*^ f^e fo? — r e iesuanco q4 a cpocial
2 id e ntification — card — is — febe — cam e — a-G — t4ie — f^e — &et — ifl — C . S .. — 30 - 37 . 7
3 i-Q^ — ieeuing — a — cp e cial — idontif ication — card . 14 — a — chango — &i-
4 addr e cc — i€ — t4ie — r e sult — &i — governm e ntal — action — a«d — th e re — is — fto
5 actual chang e of g e ographical location, — th e hold e r of the card ic
6 not r e quired to chango th e addroee on th e card until the Divicion
7 iccuoc th e holder anoth e r card .
8 (a) Address. — A person whose address changes from the address
9 stated on a special identification card must notify the Division
10 of the change within 60 days after the change occurs. If the
1 1 person's address changed because the person moved; the person
12 must obtain a new special identification card within that time
13 limit stating the new address. A person who does not move but
14 whose address changes due to governmental action may not be
15 charged with violating this subsection.
16 (b) Name. -- A person whose name changes from the name stated
17 on a special identification card must notify the Division of the
18 change within 60 days after the change occurs and obtain a new
19 special identification card stating the new name,
2 (c) Fee. -- G.S. 20-37.7 sets the fee for a special
21 identification card. "
22 Section 7. G.S. 20-67 reads as rewritten:
23 "S 20-67. Notice of change of address or name.
24 (a) Address. -- Wh e n e v e r — afty — p e rson, — aft e r making — application
2 5 4r&i^ — Qi^ — obtaining — febe — r e gistration — g4 — a — vohiclo — &f^ — a — c e rtificat e
26 of title, — shall move from the A person whose address named in the
2 7 application — &*^ — shown — upon — a — r e gistration — card — &f^ — c e rtificat e — &f-
2 8 titl e , — such — p e rson — shall — within — 3-0 — days — thereafter — notify — febe
2 9 Divicion — i« — writing — &i — bis — aid — aftd — Rew — addr e ss e s . changes from
30 the address stated on a certificate of title or registration card
31 must notify the Division of the change within 60 days after the
32 change occurs. The person may obtain a duplicate certificate of
3 3 title or registration card stating the new address but is not
34 required to do so. A person who does not move but whose address
35 changes due to governmental action may not be charged with
36 violating this subsection.
37 (b) Name. Wh e n e v e r — fefee — nam e — oi — afty — person — wbe — ba€ — mad e
38 application — ir&f^ — &f^ — obtain e d — ^he — r e gistration — ei — a — vohiclo — &e — a
39 c e rtificate — &i — titl e — i« — th e r e aft e r — chang e d — by — marriag e — &Â¥â–
40 oth e r^^ico, — cuch — p e rson — shall — ther e aft e r — forward — ef^ — caus e — fee — be
Paqe 52
1 forwardod — fee — irhe — Division th e — cortif icato — &i — title — emd — to mako
2 application — ^r&i^ — corrGCtion — ei — t4)e — c e rtif icato — o» — forme — providod
3 by tho Divicion . A person whose name changes from the name stated
4 on a certificate of title or registration card must notify the
5 Division of the change within 60 days after the change occurs.
6 The person may obtain a duplicate certificate of title or
7 registration card but is not required to do so.
8 (c) Fee. -- G.S. 20-85 sets the fee for a duplicate certificate
9 of title or registration card. "
10 Section 8. This act becomes effective December 1, 1997.
Page 53
Explanation of Legislative Proposal 9
60 Days To Change DMV Information
This proposal establishes 60 days as the standard time period
in which a new resident of this State must obtain a drivers
license, a special identification card, or a vehicle registration
and in which a current resident of this State must notify the
Division of a change of address or name. It also makes standard
a requirement that a person whose name changes notify the
Division of the change within 60 days. Further, it establishes a
standard requirement that a person who has not moved but whose
address has changed must notify the Division of the change.
Finally, it makes clarifying changes to the affected statutes.
Under current law, some of these time periods are 30 days,
some are 60 days, and some are unlimited and no notice is
required in some instances for a change of name. The current law
is as follows:
Circumstance
New resident to obtain license
New resident to obtain license
Renewal of temporary license upon
return to State
Notice of change of address for
license
Notice of change of name for license
Notice of change of address for
special id card
Notice of change of name for special
id card
Notice of change of address for
vehicle registration
Notice of change of name for vehicle
registration
Statute
20-4.6
20-7(a),
20-
37.12(e)
30
20-7(f)
60
20-7.1,
20-
37.15(b)
60, but
required
only
for CDL
20-
37.15(b)
60
20-37.9
Not requi
red
30
20-67(a)
Unlimited
20-67(b)
Section 1 repeals G.S. 20-4.6 because it is unnecessary and
confusing. The section addresses privileges of vehicles
registered in another state and requires new residents to
register their vehicles with the Division within 30 days after
becoming a resident. The part that addresses privileges of
Page 54
vehicles registered in another state conflicts with G.S. 20-4.8,
which is the controlling law, and the part that sets a time limit
for a new resident to register a vehicle both conflicts with the
proposed 60-day limit and unnecessarily repeats G.S. 20-67.
Section 2 changes the time in which a new resident must obtain
a drivers license from 30 days to 60 days.
Section 3 extends from 30 days to 60 days the time in which a
person who has a temporary drivers license must obtain a regular
license. The Division can issue a temporary drivers license by
mail as the renewal of a license previously issued by the
Division when the license holder is out of the State. A
temporary license now expires 30 days after the license holder
returns to the State.
Section 4 rewrites the statute requiring a duplicate license
for a change of address to add a requirement to notify the
Division of a change of name. Notification of a change of name
is now required for a commercial drivers license but not a
regular license. Lack of correct names is part of the reason the
Division cannot currently match many license revocation orders to
licensed drivers. G.S. 20-37. 15(b), in the commercial drivers
license provisions, states that when a person's name changes, the
person must apply for a duplicate license as provided in G.S. 20-
7.1. Currently, however, G.S. 20-7.1 does not address obtaining
a duplicate when a name changes. The rewritten section adds a
cross-reference to the fee for a duplicate license but does not
impose a new fee. Failure to obtain a duplicate license as
required is a Class 2 misdemeanor under G.S. 20-35.
Section 5 makes a conforming change to the CDL statutes. The
relevant statute now unnecessarily repeats the time period in
which a new resident must obtain a drivers license. This section
deletes the current 30-day limit and substitutes a cross
reference to the new 60-day limit.
Section 6 conforms the special id statute to the drivers
license statute with respect to notice of a change of address or
name. The special id statute currently does not require
notification of a change of name. Also, the statute is not clear
whether a person whose address has changed but who has not moved
must notify the Division. As interpreted, the statute means that
a person in this circumstance must notify the Division but is not
required to get a new special id card.
Section 7 rewrites the statute requiring a person to notify DMV
of a change of name or address for purposes of vehicle
registration. The statute clarifies that a person who has not
Page 55
moved but whose address has changed must notify the Division of
the change. This is the practice although the statute addresses
only a move. In making this change, the statute is conformed to
the drivers license change of address provisions. The rewritten
section also adds a cross reference to the fee for a duplicate
certificate of title or duplicate fee. It does not change the
fee, however. Failure to notify the Division of a change or
address or name as required is a Class 2 misdemeanor under G.S.
20-176.
Page 56
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
S or H
LEGISLATIVE PROPOSAL 10
97-DRW-OOl.Ol
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Motor vehicle salvage changes. (Public
Sponsors :
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO REDUCE BY HALF THE NUMBER OF SALVAGE INSPECTIONS
3 PERFORMED BY DMV ENFORCEMENT AND TO ELIMINATE ISSUANCE OF
' 4 UNBRANDED TITLES FOR VEHICLES BRANDED IN OTHER STATES.
5 The General Assembly of North Carolina enacts:
6 Section 1. G.S. 20-17.3 reads as rewritten:
7 "S 20-71.3. Titles and registration cards to be branded.
8 Motor Vehicle certificates of title and registration cards
9 issued pursuant to G.S. 20-57 shall be branded. As used herein
10 "branded" means that the title and registration card shall
11 contain a designation that discloses if the vehicle is classified
12 as (a) Flood Vehicle, (b) Non-U. S. A. Vehicle, (c) Reconstructed
13 Vehicle, (d) Salvage Motor Vehicle, or (e) Salvage Rebuilt
14 Vehicle or other classification authorized by law. Any motor
15 vehicle damaged by collision or other occurrence up to six model
16 years old which is to be retitled in this State shall be subject
17 to preliminary and final inspections by the Enforcement Section
18 of the Division, and the Division shall refuse to issue a title
19 to a vehicle up to six model years old which has not undergone a
20 preliminary inspection. These inspections serve as an anti-theft
Page 57
1 measure and in no way should be construed to certify the safety
2 or roadworthiness of a vehicle. Any motor vehicle which has been
3 branded in another state shall be branded with the nearest
4 applicable brand specified in this section, except that no junk
5 vehicle or vehicle that has been branded junk in another state
6 shall be titled or registered. A motor v e hicle titl e d in anoth e r
7 ctato — aftd — damag e d — by — collieion — &i^ — oth e r — occurronco — »Ay — ^
8 r e paired and an unbrand e d titl e issu e d in North Carolina only if
9 febe — coct — &i — repairs , — including — parts — a«d — labor, — do e s — Rot — e xceed
10 sovonty - five perc e nt — ( 75% ) — of its — fair mark e t retail value . The
11 Commissioner shall prepare necessary forms and may adopt
12 regulations required to carry out the provisions of this Part 3A.
13 The title shall reflect the branding until surrendered to or
14 cancelled by the Commissioner."
15 Sec. 2. G.S. 20-71.4 reads as rewritten:
15 "S 20-71.4. Failure to disclose damage to a vehicle shall be a
17 misdemeanor.
18 (a) It shall be unlawful and constitute a Class 2 misdemeanor
19 for any transferor who knows or reasonably should know that a
20 motor vehicle has been involved in a collision or other
21 occurrence to the extent that the cost of repairing that vehicle
22 exceeds twenty-five percent (25%) of its fair market retail
23 value, or that the motor vehicle is, or was, a flood vehicle, a
24 reconstructed vehicle, or a salvage motor vehicle, to fail to
25 disclose that fact in writing to the transferee prior to transfer
25 of any vehicle up to fiv e six model years old. Failure to
27 disclose any of the above information will also result in civil
28 liability under G.S. 20-348. The Commissioner may prepare forms
29 to carry out the provisions of this section.
30 (b) It shall be unlawful for any person to remove the title or
31 supporting documents to any motor vehicle from the State of North
32 Carolina with the intent to conceal damage (or damage which has
33 been repaired) occurring as a result of a collision or other
34 occurrence. Violation of this statute shall constitute a Class 2
35 misdemeanor. "
36 Sec. 3. This act becomes effective July 1, 1997.
Page 58
Explanation of Legislative Proposal 10
Motor Vehicle Salvage Changes
Since 1989, the Enforcement Section of DMV has been required by
G.S. 20-71.3 to do preliminary and final inspection of all
vehicles that have been damaged in collisions, and are to be
retitled. This generally means cars that have been "totaled" and
are being repaired for resale.
DMV Enforcement carries out approximately 50,000 salvage
inspections each year.
The MGT audit of DMV, completed in April, 1996 found these
inspections "costly and ineffective" and recommended that the
number of inspections be reduced.
This proposal reduces by half the number of salvage inspections
performed by DMV Enforcement, and also eliminates issuance of
unbranded titles for vehicles branded in other states.
Page 59
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
S or H D
LEGISLATIVE PROPOSAL 11
97-DRW-013
THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION
Short Title: Reduce DMV Enforcement Positions. (Public
Sponsors :
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO REDUCE THE NUMBER OF POSITIONS IN THE DIVISION OF MOTOR
3 VEHICLES ENFORCEMENT SECTION.
4 The General Assembly of North Carolina enacts:
5 Section 1. Fifty positions in the Enforcement Section
6 of the Division of Motor Vehicles of the Department of
7 Transportation are eliminated effective July 1, 1998.
8 Sec. 2. This act becomes effective July 1, 1997.
Page 60
Explanation of Legislative Proposal 11
Reduce DMV Enforcement Staff
This proposal eliminates 17 positions in DMV Enforcement, which
corresponds to the number of personnel currently performing the
salvage inspections that would be eliminated by Legislative
Proposal 10.
Page 61
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
LEGISLATIVE PROPOSAL 12A
SENATE JOINT RESOLUTION 97-RW-230
THIS IS A DRAFT 23-JAN-97 16:19:55
Sponsors:
Referred to:
1 A JOINT RESOLUTION URGING CONGRESS TO REPEAL THE DRIVER'S PRIVACY
2 PROTECTION ACT OF 1994.
3 WHEREAS, North Carolina has an open public records
4 policy; and
5 WHEREAS, the Driver's Privacy Protection Act; of 1994
6 (18 U.S.C. §§2721 et sec.) will substantially restrict access to
7 North Carolina's public records; and
8 WHEREAS, the act is an unnecessary and unconstitutional
9 intrusion on the right of the State to control its own public
10 records; and
11 WHEREAS, the implementation of the act will increase
12 costs in the Division of Motor Vehicles by requiring additional
13 staff time, and by consuming limited staff time, constituting an
14 "unfunded mandate"; Now, therefore,
15 Be it resolved by the Senate, the House of Representatives
16 concurring:
17 Section 1. The General Assembly urges Congress to
18 repeal the Driver's Privacy Protection Act of 1994
19 (18(U.S.C.§§2721 et seq.)-
20 Section 2. This resolution is effective upon
21 ratification.
Page 62
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1997
LEGISLATIVE PROPOSAL 12B
HOUSE JOINT RESOLUTION 97-RW-230
THIS IS A DRAFT 23-JAN-97 16:19:55
Sponsors :
Referred to:
1 A JOINT RESOLUTION URGING CONGRESS TO REPEAL THE DRIVER'S PRIVACY
2 PROTECTION ACT OF 1994.
3 WHEREAS, North Carolina has an open public records
4 policy; and
5 WHEREAS, the Driver's Privacy Protection Act; of 1994
6 (18 U.S.C. §§2721 et sec.) will substantially restrict access to
7 North Carolina's public records; and
8 WHEREAS, the act is an unnecessary and unconstitutional
9 intrusion on the right of the State to control its own public
10 records; and
11 WHEREAS, the implementation of the act will increase
12 costs in the Division of Motor Vehicles by requiring additional
13 staff time, and by consuming limited staff time, constituting an
14 "unfunded mandate"; Now, therefore,
15 Be it resolved by the Senate, the House of Representatives
16 concurring:
17 Section 1. The General Assembly urges Congress to
18 repeal the Driver's Privacy Protection Act of 1994
19 (18(U.S.C.§§2721 et seq. ) .
20 Section 2. This resolution is effective upon
21 ratification.
Page 63
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1995
S or H
LEGISLATIVE PROPOSAL 12C
97-RW-231
THIS IS A DRAFT 23-JAN-97 16:19:55
Short Title: Indemnify State Employees/Privacy Act. (Public;
Sponsors :
Referred to;
1 A BILL TO BE ENTITLED
2 AN ACT TO INDEMNIFY STATE EMPLOYEES FOR ANY LEGAL COSTS
3 ASSOCIATED WITH NONCOMPLIANCE WITH THE FEDERAL DRIVER'S PRIVACY
4 PROTECTION ACT.
5 The General Assembly of North Carolina enacts:
6 Section 1. Chapter 20 of the North Carolina General
7 Statutes is amended by adding a new section to read:
8 "S 20-43.1 Indemnation.
9 The State shall indemnify all employees or officers of the
10 State for any attorney's fees^ damages, or other costs incurred
11 due to any legal proceeding asserting noncompliance with the
12 provision of the Driver's Privacy protection Act of 1994 (18
13 U.S.C. §§2721 et sec), or any amendments to that act. "
14 Section 2. This act is effective when it becomes law.
Page 64
Explanation of Legislative Proposal 12
Federal Driver's Privacy Protection Act
The 1994 federal Driver's Privacy Protection Act (18 U.S.C.
§§2721 et seq.)/ effective September 1997, requires the N.C.
Division of Motor Vehicles to close access to DMV records in most
cases to prevent disclosure of "personal information" such as
names, addresses, and phone numbers. Current N.C. law provides
that DMV records are open as public records, except for photos,
medical information, and Social Security numbers.
This change in federal law was sponsored as an amendment to the
1994 federal crime bill by Senator Barbara Boxer (D-Calif ornia)
in response to a stalking and murder in California where
information on the address of the victim was obtained from
California's DMV for the perpetrator by a private detective.
This Legislative Proposal reflects the Committee's decision on
January 15, 1997 to oppose the federal Act, ask Congress to
consider repeal, and indemnify State employees for any violation
of the Act while a challenge is pursued.
Page 65
MANDATED
REPORTS
Mandated Reports Presented to the Committee By DOT
Date Presented
Report Topic
Technology Improvements Study Plan
Cash Flow Construction Projects
Vehicle Salvage Law Changes
Driver License Office Location Plan
IRP Software Improvement Plan
Automated Systems Technical Support
Implementation of DMV Audit Findings
Green Roads Initiative Implementation
Visitor Center Funding
November 14. 1996
November 14. 1996. Januar>' 15, 1997
November 14. 1996
November 14. 1996, January 15, 1997
December 12. 1996
December 12. 1996
January 15, 1996
January 15, 1996
January 15, 1996
Mandated Committee Study
The Committee fulfilled the requirement of Section 19.14 of Chapter 18 of the 1996 Session
Laws that it study driver education programs. A report by Committee staff on the subject was
received and discussed.
66
RESULTS OF
1996
LEGISLATIVE PROPOSALS
1996 Proposal
1 . Expedite Towed Vehicle Disposal
2. Speed Limits
3. Utility Pole Extension
4. Vehicle May Not Tow Sled
5. No Fee For Mail-In Registration
6. County Remove Registration Block
7. Delete '"L" CDL Endorsement
8. 60 Days To Change DMV Info
9. Digitized Imager)' License Changes
10. DMV Trucking/Technical Changes
11. Privatize All DMV Tag Offices
Bill Number
Sponsor
Final Status
HB 1268
Bowie
Ratified
SB 1270
Hoyle
Ratified
SB 1181
Hoyle
Ratified
HB1142
McLaughlin
House Transportation
HB 1266
Bowie
House Finance
SB 1165
Gulley
Ratified
HB 1182
McLaughlin
Ratified
HB 1183
McLaughlin
Senate Transportation
HB 1141
McLaughlin
Ratified
SB 1274
Hoyle
Ratified
SB 1250
Horton
Senate Transportation
67
Bridgeport National
Bindery, Inc.
OCT. 2007
