GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2019
SESSION LAW 2020-51
HOUSE BILL 455
AN ACT to extend deadlines RELATED to loaner dealer registration plates and dealer data requirements and to include out‑of‑state titles in the title in transit process.
The General Assembly of North Carolina enacts:
SECTION 1.(a) G.S. 20‑79.02(g) reads as rewritten:
"(g) Applicability. –
Prior to January 1, 2021, 2025, a new motor vehicle dealer may,
but is not required to, display an LD license plate on a service loaner
vehicle. Beginning on or after January 1, 2021, 2025, a new motor
vehicle dealer shall display an LD license plate on any new motor vehicle
placed into service as a loaner vehicle if either of the following
circumstances exists:
(1) The new motor vehicle dealer is receiving incentive or warranty compensation from a manufacturer, factory branch, distributor, or distributor branch for the use of the vehicle as a service loaner.
(2) The new motor vehicle dealer is receiving a fee or other compensation from the dealer's customers for the use of the vehicle as a service loaner."
SECTION 1.(b) Section 1.1(b) of S.L. 2015‑232, as amended by Section 4.5(b) of S.L. 2018‑27, reads as rewritten:
"SECTION 1.1.(b) This
section is effective when this act becomes law and expires December 31, 2020.2024."
SECTION 1.(c) Section 1.4(b) of S.L. 2015‑232, as amended by Section 4.5(c) of S.L. 2018‑27, reads as rewritten:
"SECTION 1.4.(b) This
section is effective when this act becomes law and expires December 31, 2020.2024."
SECTION 2. Section 13 of S.L. 2019‑125, reads as rewritten:
"SECTION 13. Sections
1 through 6 and Sections 8 and 9 of this act are effective when they become law
and apply to all current and future franchises and other agreements in
existence between any new motor vehicle dealer located in this State and a
manufacturer or distributor as of that date. Section 7 of this act becomes
effective October 1, 2020, May 1, 2021, and applies to all
current and future franchises and other agreements in existence between any new
motor vehicle dealer located in this State and a manufacturer, distributor, dealer management computer system vendor, or third party
as of that date. The remainder of this act is effective when it becomes
law."
SECTION 3.(a) G.S. 20‑52.1(d) reads as rewritten:
"(d) When a
manufacturer's statement of origin or an existing certificate of title on a
motor vehicle is unavailable, a motor vehicle dealer licensed under Article 12
of this Chapter may also transfer title to a vehicle currently titled in
this State to another by certifying in writing in a sworn statement to the
Division signed by the dealer principal, general manager, general sales
manager, controller, owner, or other manager of the dealership that, to the
best of the signatory's knowledge and information as of the date of sworn
certification, all prior perfected liens on the vehicle that are known or
reasonably ascertainable by the signatory have been paid and that the motor
vehicle dealer, despite having used reasonable diligence, is unable to obtain
the vehicle's statement of origin or certificate of title. For purposes of this
subsection, a dealer may certify that the dealer is unable to obtain the
vehicle's statement of origin or certificate of title because the statement of
origin or certificate of title was either (i) not delivered to the dealer or
(ii) lost or misplaced. The Division is authorized to require any information
it deems necessary for the transfer of the vehicle and shall develop a form for
this purpose. The knowing and intentional filing of a false sworn certification
with the Division pursuant to this subsection shall constitute a Class H
felony. A dealer principal, owner, or manager who is not a signatory of the
sworn certification under this subsection may only be charged for a criminal
violation for filing a false certification under this subsection by another
dealership employee if the dealer principal, owner, or manager had actual
knowledge of the falsity of the sworn certification at the time the sworn
certification was submitted to the Division. The dealer shall hold harmless and
indemnify the consumer‑purchaser from any damages arising from the use of
the procedure authorized by this subsection. No person shall have a cause of
action against the Division or Division contractors arising from the transfer
of a vehicle by a sworn certification pursuant to this section."
SECTION 3.(b) G.S. 20‑72(b) reads as rewritten:
"(b) In order to assign or transfer title or interest in any motor vehicle registered under the provisions of this Article, the owner shall execute in the presence of a person authorized to administer oaths an assignment and warranty of title on the reverse of the certificate of title in form approved by the Division, including in such assignment the name and address of the transferee; and no title to any motor vehicle shall pass or vest until such assignment is executed and the motor vehicle delivered to the transferee. The provisions of this section shall not apply to any foreclosure or repossession under a chattel mortgage or conditional sales contract or any judicial sale. The provisions of this subsection shall not apply to (i) any transfer to an insurer pursuant to G.S. 20‑109.1(b)(2) or (ii) any transfer to a used motor vehicle dealer pursuant to G.S. 20‑109.1(e1). The provisions of this subsection requiring that an assignment and warranty of title be executed in the presence of a person authorized to administer oaths shall not apply to any transfer of title to or from an insurer pursuant to G.S. 20‑109.1.
When a manufacturer's statement of
origin or an existing certificate of title on a motor vehicle is unavailable, a
motor vehicle dealer licensed under Article 12 of this Chapter may also
transfer title to a vehicle currently titled in this State to another by
certifying in writing in a sworn statement to the Division that is signed by
the dealer principal, general manager, general sales manager, controller,
owner, or other manager of the dealership that, to the best of the signatory's
knowledge and information as of the date of the sworn certification, all prior
perfected liens on the vehicle that are known or reasonably ascertainable by
the signatory have been paid and that the motor vehicle dealer, despite having
used reasonable diligence, was unable to obtain the vehicle's statement of
origin or certificate of title. For purposes of this subsection, a dealer may
certify that the dealer is unable to obtain the vehicle's statement of origin
or certificate of title if the statement of origin or certificate of title has
either (i) not been delivered to the dealer or (ii) has been lost or misplaced.
The Division is authorized to request any information it deems necessary to
transfer the vehicle and shall develop a form for this purpose. The knowing and
intentional filing of a false sworn certification with the Division pursuant to
this subsection shall constitute a Class H felony. A dealer principal, owner,
or manager of a motor vehicle dealership who is not a signatory of the sworn
certification required under this subsection may only be charged for a criminal
violation for filing a false certification under this subsection by another
dealership employee if the dealer principal, owner, or manager had actual
knowledge of the falsity of the sworn certification at the time the sworn
certification was submitted to the Division.
Any person transferring title or interest in a motor vehicle shall deliver the certificate of title duly assigned in accordance with the foregoing provision to the transferee at the time of delivering the vehicle, except when a certificate of title is unavailable as provided in this subsection or in G.S. 20‑72.1, and except that where a security interest is obtained in the motor vehicle from the transferee in payment of the purchase price or otherwise, the transferor shall deliver the certificate of title to the lienholder and the lienholder shall forward the certificate of title together with the transferee's application for new title and necessary fees to the Division within 20 days. If the title to a vehicle is unavailable and the dealer transfers the vehicle on a sworn certification pursuant to this section or G.S. 20‑52.1, and the title is subsequently received or found by the dealer, the dealer shall retain a copy for its records and submit the title to the Division. Any person who delivers or accepts a certificate of title assigned in blank shall be guilty of a Class 2 misdemeanor. No person shall have a cause of action against the Division or Division contractors arising from the transfer of a vehicle by a sworn certification pursuant to this section.
The title to a salvage vehicle shall be forwarded to the Division as provided in G.S. 20‑109.1, except with respect to the title of any salvage vehicle transferred pursuant to G.S. 20‑109.1(b)(2) or G.S. 20‑109.1(e1)."
SECTION 4. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 24th day of June, 2020.
s/ Philip E. Berger
President Pro Tempore of the Senate
s/ Tim Moore
Speaker of the House of Representatives
s/ Roy Cooper
Governor
Approved 12:16 p.m. this 30th day of June, 2020