GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	4 

SENATE BILL 1579
Second Edition Engrossed 6/16/94
Third Edition Engrossed 6/29/94
House Committee Substitute Favorable 7/7/94

Short Title:  DMV and DOT Technical Changes.	(Public)
─────────────────────────────────────── 
Sponsors:
─────────────────────────────────────── 
Referred to:  
─────────────────────────────────────── 

May 25, 1994

A BILL TO BE ENTITLED
AN ACT TO MAKE TECHNICAL, CONFORMING, AND ADMINISTRATIVE CHANGES TO THE MOTOR VEHICLE LAWS AND OTHER LAWS CONCERNING THE DEPARTMENT OF TRANSPORTATION.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 20-17(2) reads as rewritten:
"(2)	Either of the following impaired driving offenses:
a.	Impaired driving under G.S. 20-138.1.
b.	Impaired driving under G.S. 20-138.2 when the person convicted did not take a chemical test at the time of the offense or the person took a chemical test at the time of the offense and the test revealed that the person had an alcohol concentration at any relevant time after driving of less than 0.04 or of 0.08 or more."
Sec. 1.1.  G.S. 20-7 is amended by adding a new subsection to read:
"( p)	The Division must give the clerk of superior court in each county at least 50 copies of the driver license handbook free of charge.  The clerk must give a copy to a person who requests it."
Sec. 2.  G.S. 20-28(a), as amended by Section 320 of Chapter 539 of the 1993 Session Laws, reads as rewritten:
"(a)	Driving While License Revoked. – Any person whose drivers license has been revoked who drives any motor vehicle upon the highways of the State while the license is revoked is guilty of a Class 1 misdemeanor.  Upon conviction, the person's license shall be revoked for an additional period of one year for the first offense, two years for the second offense, and permanently for a third or subsequent offense.
The restoree of a revoked drivers license who operates a motor vehicle upon the highways of the State without maintaining financial responsibility as provided by law shall be punished as for operating without a drivers license."
Sec. 3.  G.S. 20-28(b), as amended by Section 321 of the 1993 Session Laws, is repealed.
Sec. 4.  G.S. 20-35, as amended by Section 324 of Chapter 539 of the 1993 Session Laws, reads as rewritten:
"§ 20-35.  Penalties for violating Article; defense to driving without a license.
(a)	Penalty. – A violation of this Article is a Class 2 misdemeanor unless a statute in the Article sets a different punishment for the violation.  If a statute in this Article sets a different punishment for a violation of the Article, the different punishment applies. 
(b)	
(c)	Defenses. – A person may not be convicted of failing to carry a regular drivers license if, when tried for that offense, the person produces in court a regular drivers license issued to the person that was valid when the person was charged with the offense.  A person may not be convicted of driving a motor vehicle without a regular drivers license if, when tried for that offense, the person shows all the following:
(1)	That, at the time of the offense, the person had an expired license.
(2)	The person renewed the expired license within 30 days after it expired and now has a drivers license.
(3)	The person could not have been charged with driving without a license if the person had the renewed license when charged with the offense."
Sec. 5.  G.S. 20-66, as amended by Section 2 of Chapter 467 of the 1993 Session Laws, reads as rewritten:
"§ 20-66.  Renewal of vehicle registration.
(a)	Annual Renewal. – The registration of a vehicle must be renewed annually.  To renew the registration of a vehicle, the owner of the vehicle must file an application with the Division and pay the required registration fee.  The Division may receive and grant an application for renewal of registration at any time before the registration expires.
(b)	Method of Renewal. – When the Division renews the registration of a vehicle, it must issue a new registration card for the vehicle and either a new registration plate or a registration renewal sticker.  The Division may renew a registration plate for any type of vehicle by means of a renewal 
						sticker.
(b1)	Repealed by Session Laws 1993, c. 467, s. 2.
(c)	Renewal Stickers. – A registration renewal sticker issued by the Division must be displayed on the registration plate that it renews in the place prescribed by the Commissioner and must indicate the period for which it and the registration plate on which it is displayed are valid.  Except where physical differences between a registration renewal sticker and a registration plate render a provision of this Chapter inapplicable, the provisions of this Chapter relating to registration plates apply to registration renewal stickers.
		(f)	Repealed by Session Laws 1993, c. 467, s. 2.
(g)	When Renewal Sticker Expires. – The registration of a vehicle that is renewed by means of a registration renewal sticker expires at midnight on the last day of the month designated on the sticker.  It is lawful, however, to operate the vehicle on a highway until midnight on the fifteenth day of the month following the month in which the sticker expired if the vehicle is not registered under the International Registration Plan.  If the vehicle is registered under the International Registration Plan, it is not lawful to operate the vehicle on a highway after the sticker expires.
The Division may vary the expiration dates of registration renewal stickers issued for a type of vehicle so that an approximately equal number expires at the end of each month, quarter, or other period consisting of one or more months.  When the Division implements registration renewal for a type of vehicle by means of a renewal sticker, it may issue a registration renewal sticker that expires at the end of any monthly interval beginning at nine months and ending at eighteen months.
(h)	When Calendar-Year Plate Expires. – The registration of a vehicle that is not renewed by means of a registration renewal sticker expires at midnight on December 31 of each year.  It is lawful, however, to operate the vehicle on a highway until midnight on the following February 15.
(i)	Property Tax Consolidation. – When the Division receives an application under subsection (a) for the renewal of registration before the current registration expires, the Division shall grant the application if it is made for the purpose of consolidating the property taxes payable by the applicant on classified motor vehicles, as defined in G.S. 105-330.  The registration fee for a motor vehicle whose registration cycle is changed under this subsection shall be reduced by a prorated amount.  The prorated amount is one-twelfth of the registration fee in effect when the motor vehicle's registration was last renewed multiplied by the number of full months remaining in the motor vehicle's current registration cycle, rounded to the nearest multiple of twenty-five cents (25¢)."
Sec. 6.  Section 343 of Chapter 539 of the 1993 Session Laws is repealed.
Sec. 7.  G.S. 20-88.1 is amended by adding a new subsection to read:
"( d)	The Division shall prepare a driver license handbook that explains the traffic laws of the State and shall periodically revise the handbook to reflect changes in these laws.  At the request of the Department of Education, the Division shall provide free copies of the handbook to that Department for use in the program of driver education offered at public high schools."
Sec. 8.  G.S. 20-95 reads as rewritten:
"§ 20-95.  Prorated fee for license plate issued for other than a year.
(a)	Calendar-Year Plate. –The fee for a calendar-year license plate issued on or after April 1 of a year is a percentage of the annual fee determined in accordance with the following table:
Date Plate Issued	Percentage of Annual Fee
April 1 through June 30  	75%
July 1 through September 30	50
October 1 through December 31	25.
(a1)	Plate With Renewal Sticker. – The fee for a license plate whose registration is renewed by means of a registration renewal sticker for a period of other than 12 months is a prorated amount of the annual fee.  The prorated amount is one-twelfth of the annual fee multiplied by the number of full months in the period beginning the date the renewal sticker becomes effective until the date the renewal sticker expires, rounded to the nearest dollar.
(b)	Scope. – This section does not apply to license plates issued pursuant to G.S. 20-79.1, 20-79.2, 20-84, 20-84.1, 20-87(9) or (10), and 20-88(c)."
Sec. 9.  G.S. 20-97(a), as rewritten by Section 1.1 of Chapter 456 of the 1993 Session Laws, reads as rewritten:
"(a)	All taxes levied under the provisions of this Article are intended as compensatory taxes for the use and privileges of the public highways of this State, and shall be paid by the Commissioner to the State Treasurer, to be credited by him to the State Highway Fund; and no county or municipality shall levy any license or privilege tax upon any motor vehicle licensed by the State of North Carolina, except that cities and towns may levy not more than five dollars ($5.00) per year upon any vehicle resident therein, and except that Alleghany County may levy not more than ten dollars ($10.00) per year upon any vehicle resident therein.  Provided, further, that cities and towns may levy, in addition to the amounts hereinabove provided for, a sum not to exceed fifteen dollars ($15.00) per year upon each vehicle operated in such city or town as a taxicab."
Sec. 10.  G.S. 20-118(c)(1) reads as rewritten:
"(1)	Two consecutive sets of tandem axles may carry a gross weight of 34,000 pounds each without penalty provided the overall distance between the first and last axles of the consecutive sets of tandem axles is 36 feet or more.  "
Sec. 11.  G.S. 20-118(c)(5), as amended by Chapter 426 of the 1993 Session Laws, reads as rewritten:
"(5)	The light-traffic road limitations provided for pursuant to subdivision (b)(4) of this section do not apply to a vehicle while that vehicle is transporting only the following from its point of origin on a light-traffic road to the nearest highway that is not a light-traffic road:
a.	Processed or unprocessed seafood from boats or any other point of origin to a processing plant or a point of further distribution.
b.	Meats or agricultural crop products originating from a farm to first market.
c.	Unprocessed forest products originating from a farm or from woodlands to first market.
d.	Livestock or poultry from their point of origin to first market.
e.	Livestock by-products or poultry by-products from their point of origin to a rendering plant.
f.	Recyclable material from its point of origin to a scrap-processing facility for processing.  As used in this subpart, the terms 'recyclable' and 'processing' have the same meaning as in G.S. 130A-290(a).
g.	Garbage collected by the vehicle from residences or garbage dumpsters if the vehicle is fully enclosed and is designed specifically for collecting, compacting, and hauling garbage from residences or from garbage dumpsters.  As used in this subpart, the term 'garbage' does not include hazardous waste as defined in G.S. 130A-290(a), spent nuclear fuel regulated under G.S. 20-167.1, low-level radioactive waste as defined in G.S. 104E-5, or radioactive material as defined in G.S. 104E-5.
	" " )."
Sec. 12.  G.S. 20-118(c)(9) is repealed.
Sec. 13.  G.S. 20-118(c)(12), as enacted by Chapter 470 of the 1993 Session Laws, reads as rewritten:
"(12)	Subsections (b) and (e) of this section do not apply to a vehicle that meets one of the following descriptions, is hauling agricultural crops from the farm where they were grown to first market, is within 35 miles of that farm, and does not exceed its registered weight:
a.	Is a five-axle combination with a gross weight of no more than 88,000 pounds, a single-axle weight of no more than 22,000 pounds, a tandem-axle weight of no more than 42,000 pounds, and a length of at least 51 feet between the first and last axles of the combination.
	c.	Is a four-axle combination with a gross weight that does not exceed the limit set in subdivision (b)(3) of this section, a single-axle weight of no more than 22,000 pounds, and a tandem-axle weight of no more than 42,000 pounds."
Sec. 14.  G.S. 20-118(e), as amended by Chapters 426 and 533 of the 1993 Session Laws, reads as rewritten:
"(e)	Penalties. –
(1)	Except as provided in subdivision (2) of this subsection, for each violation of the single-axle or tandem-axle weight limits set in subdivision (b)(1), (b)(2), or (b)(4) of this section, the Department of Transportation shall assess a civil penalty against the owner or registrant of the vehicle in accordance with the following schedule: for the first 1,000 pounds or any part thereof, four cents (4¢) per pound; for the next 1,000 pounds or any part thereof, six cents (6¢) per pound; and for each additional pound, ten cents (10¢) per pound. These penalties apply separately to each weight limit violated. In all cases of violation of the weight limitation, the penalty shall be computed and assessed on each pound of weight in excess of the maximum permitted.
(2)	The penalty for a violation of the single-axle or tandem-axle weight limits by a vehicle that is transporting an item listed in subdivision (c)(5) of this section is one-half of the amount it would otherwise be under subdivision (1) of this subsection. " " 
(3)	Except as provided in subdivision (4) of this subsection, for a violation of an axle-group weight limit set in subdivision (b)(3) of this section, the Department of Transportation shall assess a civil penalty against the owner or registrant of the motor vehicle in accordance with the following schedule: for the first 2,000 pounds or any part thereof, two cents (2¢) per pound; for the next 3,000 pounds or any part thereof, four cents (4¢) per pound; for each pound in excess of 5,000 pounds, ten cents (10¢) per pound.  These penalties apply separately to each axle-group weight limit violated. The penalty shall be assessed on each pound of weight in excess of the maximum permitted.
(4)	The penalty for a violation of an axle-group weight limit by a vehicle " " that is transporting an item listed in subdivision (c)(5) of this section is one-half of the amount it would otherwise be under subdivision (3) of this subsection.
(5)	A violation of a weight limit in this section is not punishable under G.S. 20-176."
Sec. 15.  G.S. 20-118(f) is repealed.
Sec. 16.  G.S. 20-118(i) is repealed.
Sec. 17.  G.S. 20-174.1(b) reads as rewritten:
"(b)	Violation of this section is a Class 2 misdemeanor."
Sec. 18.  G.S. 20-193 is repealed.
Sec. 19.  Article 6 of Chapter 20 of the General Statutes is repealed.
Sec. 20.  G.S. 20-218, as amended by Chapter 217 of the 1993 Session Laws, reads as rewritten:
"§ 20-218.  Standard qualifications for school bus drivers; speed limit for school buses and school activity buses.
(a)	Qualifications. – No person shall drive a school bus over the highways or public vehicular areas of North Carolina while it is occupied by children unless the person furnishes to the superintendent of the schools of the county in which the bus shall be operated a certificate from any representative duly designated by the Commissioner and from the Director of Transportation or a designee of the Director in charge of school buses in the county showing that the person has been examined by them and is fit and competent to drive a school bus over the highways and public vehicular areas of the State.  The driver of a school bus must be at least 18 years of age and hold a Class A, B, or C commercial drivers license and a school bus driver's certificate.  The driver of a school activity bus must meet the same qualifications as a school bus driver or must have a license appropriate for the class of vehicle being driven.
(b)	Speed Limits. – It is unlawful to drive a school bus loaded with children over the highways or public vehicular areas of the State at a greater rate of speed than 45 miles per hour.  It is unlawful to drive a school activity bus loaded with children over the highways or public vehicular areas of North Carolina at a greater rate of speed than 55 miles per hour.
(c)	Punishment. –A person who violates this section commits a Class 3 misdemeanor."
Sec. 21.  G.S. 20-218.1 is repealed.
Sec. 22.  G.S. 20-4.01(27) is amended by adding two new subparts to read:
"d3.	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.
d4.	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 signal, and that bears the words 'School Bus' on the front and rear in letters at least 8 inches in height.  The term includes a public, private, or parochial vehicle that meets this description."
Sec. 23.  G.S. 20-218.2 reads as rewritten:
"§ 20-218.2.  Speed limit for nonprofit activity buses.
It is unlawful to drive an activity bus that is owned by a nonprofit organization and is transporting persons in connection with nonprofit activities over the highways or public vehicular areas of North Carolina at a greater rate of speed than 55 miles per hour.  A person who violates this section commits a Class 3 misdemeanor.
."
Sec. 24.  G.S. 20-219 is repealed.
Sec. 25.  Article 8A of Chapter 20 of the General Statutes is repealed.
Sec. 26.  G.S. 20-279.7A reads as rewritten:
"§ 20-279.7A.  Forms to carry statement concerning perjury.
A person who makes a false affidavit or falsely sworn or affirmed statement concerning information required to be submitted under this Article commits a Class I felony.  The Division shall include a statement of this offense on a form that it provides under this Article and that must be completed under oath."
Sec. 27.  G.S. 20-279.34 is repealed.
Sec. 28.  G.S. 20-309.1 is repealed.
Sec. 29.  G.S. 20-310 is repealed.
Sec. 30.  Article 36 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-36-85.  Termination of a nonfleet private passenger motor vehicle insurance policy.
(a)	Definitions. – The following definitions apply in this section:
(1)	Policy. – A nonfleet private passenger motor vehicle liability insurance policy, including a policy that provides medical payments, uninsured motorist, or underinsured motorist coverage, whose named insured is one individual or two or more individuals who reside in the same household.
(2)	Terminate. – To cancel or refuse to renew a policy.
(b)	Termination Restrictions. – An insurer shall not terminate a policy for a reason that is not specified in G.S. 58-37-50(1) through (5) or G.S. 58-36-65(g).  A termination of a policy is not effective unless the insurer either has notified a named insured of the termination by sending a written termination notice by first class mail to the insured's last known address or is not required by this subsection to send a written termination notice.  Proof of mailing of a written termination notice is proof that the notice was sent.
An insurer is not required to send a written termination notice if any of the following applies:
(1)	The insurer has manifested its willingness to renew the policy by issuing or offering to issue a renewal policy, a certificate, or other evidence of renewal.
(2)	The insurer has manifested its willingness to renew the policy by any means not described in subdivision (1) of this subsection, including mailing a premium notice or expiration notice by first class mail to the named insured and the failure of the insured to pay the required premium on or before the premium due date.
(3)	A named insured has given written notification to the insurer or its agent that the named insured wants the policy to be terminated.
(c)	Contents of Notice. – The form of a written termination notice used by an insurer must be approved by the Commissioner before it is used.  A written termination notice must state the reason for the termination and the date the termination is effective.  If the policy is terminated for nonpayment of the premium, the effective date may be 15 days from the date the notice is mailed.  If the policy is terminated for any other reason, the effective date must be at least 60 days after the notice is mailed.  A written termination notice must include or be accompanied by a statement that advises the insured of the penalty for driving a vehicle without complying with Article 13 of Chapter 20 of the General Statutes and that the insured has the right to request the Department to review the termination.
(d)	Request for Review. – An insured who receives from an insurer a written termination notice may obtain review of the termination by filing with the Department a written request for review within 10 days after receiving a termination notice that complies with subsection (c) of this section.  An insured who does not file a request within the required time waives the right to a review.
(e)	Administrative Review. –   When the Department receives a written request to review a termination, it must investigate and determine the reason for the termination.  The Department shall enter an order for one of the following upon completing its review:
(1)	Approval of the termination, if it finds the termination complies with the law.
(2)	Renewal or reinstatement of the policy, if it finds the termination does not comply with the law.
(3)	Renewal or reinstatement of the policy and payment by the insurer of the costs of the Department's review, not to exceed one thousand dollars ($1,000), if it finds the termination does not comply with the law and the insurer willfully violated this section.
The Department shall mail a copy of the order to the insured and the insurer.  An insured or an insurer who disagrees with the determination of the Department may file a petition for a contested case under Article 3A of Chapter 150B of the General Statutes and the rules adopted by the Commissioner to implement that Article.  The petition must be filed within 30 days after receiving the copy of the order.
(f)	Delegation. – The Commissioner shall designate an employee or a deputy to conduct the departmental review of a termination.  The Commissioner may designate a deputy to conduct a contested case hearing concerning a termination.  The Commissioner may not designate a deputy who conducted the departmental review of a termination to conduct a contested case hearing concerning the same termination.
(g)	Effect of Review on Policy. – A policy shall remain in effect during administrative and judicial review of an insurer's action to terminate the policy.
(h)	Liability Limit. – There is no liability on the part of and no cause of action for defamation or invasion of privacy arises against an insurer, an insurer's authorized representatives, agents, or employees, or a licensed insurance agent or broker for a communication or statement made concerning a written notice of termination.
(i)	Records. – An insurer shall keep a record of a termination for three years."
Sec. 31.  G.S. 20-310.2 is repealed.
Sec. 32.  The title to Article 12E of Chapter 120 of the General Statutes reads as rewritten:
"ARTICLE 12E.
"Joint Legislative Transportation Oversight Committee."
Sec. 33.  G.S. 158-42(d) reads as rewritten:
"(d)	Administration. – The Division of Motor Vehicles of the Department of Transportation shall collect and administer a tax levied under this section.  Immediately after adopting a resolution levying or repealing a tax under this section, the Commission shall deliver a certified copy of the resolution to the Division of Motor Vehicles.  The tax is due at the same time and subject to the same restrictions as the tax levied in G.S. 20-87 and G.S. 20-88.  The tax shall be prorated in accordance with G.S. 20-95.  The Commissioner of Motor Vehicles may adopt rules necessary to administer the tax."
Sec. 34.  G.S. 160A-623(g) reads as rewritten:
"(g)	Vehicles Subject to Tax.  Only vehicles required to pay a tax under G.S. 20-87(1), (2), (4), (5), (6), and (7) and G.S. 20-88 shall be subject to the tax provided by this section.  Taxes shall be prorated in accordance with G.S. 20-95."
Sec. 35.  Section 1 of this act becomes effective October 1, 1994, and applies to offenses occurring on or after that date.  Sections 2 through 4, 17, 20, 23, and 26 of this act become effective the same date that Chapter 539 of the 1993 Session Laws becomes effective and apply to offenses committed on or after the effective date of Chapter 539; prosecutions for, or sentences based on, offenses occurring before the effective date of Chapter 539 are not abated or affected by these sections.  Sections 29 through 31 of this act become effective February 1, 1995, and apply to policies written on or after that date.  The remaining sections of this act are effective upon ratification.