GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	1 

SENATE BILL 162

Short Title:  Dealer Plate/License Changes.	(Public)
─────────────────────────────────────── 
Sponsors: Senators Kerr, Plexico, Seymour, and Winner of Buncombe; Cooper, Lee, Gunter, Gulley, Martin of Guilford, and Forrester.
─────────────────────────────────────── 
Referred to:  Transportation.
─────────────────────────────────────── 

February 15, 1993

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE REQUIREMENTS FOR LICENSURE AS A MOTOR VEHICLE WHOLESALER OR DEALER, TO LIMIT THE NUMBER OF MOTOR VEHICLE DEALER LICENSE PLATES THAT CAN BE ISSUED TO THE SAME DEALER, TO EXPAND THE USE OF TRANSPORTER PLATES, AND TO CHANGE THE FEE FOR TRANSPORTER PLATES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 20-286(5a) and (6) read as rewritten:
"(5a)	Established office. – An office that meets the following requirements:
a.	Contains at least 250 square feet of floor space in a permanent enclosed building that is not a residence.
b.	Is a place where the books, records, and files required by the Division under this Article are kept.
c.	Is contiguous to an enclosed or open area that is owned or leased by the person who operates the office and that is large enough for the display of at least 10 motor vehicles.
(6)	Established salesroom. – A salesroom that meets the following requirements:
a.	Contains at least 250 square feet of floor space in a permanent enclosed building that is not a residence.
b.	Displays, or is located immediately adjacent to, a sign having block letters not less than six inches in height on contrasting background, clearly and distinctly designating the trade name of the business.
c.	Is a place where a permanent business of bartering, trading, and selling motor vehicles will be carried on in good faith on an ongoing basis whereby the dealer can be contacted by the public at reasonable times.
d.	Is a place where the books, records, and files required by the Division under this Article are kept.
e.	Is a place where at least 10 motor vehicles can be displayed.
The term includes the area contiguous to or located within 500 feet of the premises on which the salesroom is located.  The term does not include a tent, a temporary stand, or other temporary quarters.  "
Sec. 2.  G.S. 20-295 reads as rewritten:
"§ 20-295. Action on application.
The Division shall either grant or deny an application for a license within 30 days after receiving it.  Any applicant denied a license shall, upon filing a written request within 30 days, be given a hearing at the time and place determined by the Commissioner or a person designated by the Commissioner.  A hearing shall be public and shall be held with reasonable promptness. "
Sec. 3.  G.S. 20-79 reads as rewritten:
"§ 20-79. Dealer license plates.
(a)	How To Get A Dealer Plate. – 
	A dealer licensed under Article 12 of this Chapter may obtain a dealer license plate by filing an application with the Division and paying the required fee.  An application must be filed on a form provided by the Division.  The required fee is the amount set by G.S. 20-87(7).
(b)	Number of Plates. –A dealer who was licensed under Article 12 of this Chapter for the previous 12-month period ending April 30 may obtain the number of dealer license plates allowed by the following table; the number allowed is based on the number of motor vehicles the dealer sold during the relevant 12-month period and the average number of qualifying sales representatives the dealer employed during that same 12-month period:

Vehicles Sold In Relevant	Maximum Number of Plates
12-Month Period
Fewer than 5	None
At least 5 but less than 10	1
At least 10 but less than 25	2
At least 25 but less than 50	4
50 or more	At least 4, but no more than 4 times the average number of qualifying sales representatives employed by the dealer during the relevant 12-month period.

A dealer who was not licensed under Article 12 of this Chapter for part or all of the previous 12-month period ending April 30 may obtain the number of dealer license plates that equals four times the number of qualifying sales representatives employed by the dealer on the date the dealer files the application.  A 'qualifying sales representative' is a sales representative who works for the dealer at least 25 hours a week on a regular basis and is compensated by the dealer for this work.
A dealer who sold fewer than 50 motor vehicles the previous 12-month period ending April 30 but has sold at least 50 motor vehicles since May 1 may apply for additional dealer license plates at any time.  The maximum number of dealer license plates the dealer may obtain is the number the dealer could have obtained if the dealer had sold at least 50 motor vehicles in the previous 12-month period ending April 30.
A dealer who applies for a dealer license plate must certify to the Division the number of motor vehicles the dealer sold in the relevant period.  Making a false certification is a misdemeanor and is grounds for denial, suspension, or revocation of a dealer's license under G.S. 20-294.
(c)	Form and Duration. –A dealer license plate is subject to G.S. 20-63, except for the requirement that the plate display the registration number of a motor vehicle and the requirement that the plate be a 'First in Flight' plate.  In addition, a dealer license plate must have a distinguishing symbol identifying the plate as a dealer license plate.
A dealer license plate is issued for a fiscal year beginning July 1 and ending June 30.  During the fiscal year for which it is issued, a dealer may transfer a dealer license plate from one vehicle to another.  When a dealer surrenders the license issued under Article 12 of this Chapter or the Division revokes the dealer's license, the dealer must surrender to the Division all dealer license plates issued to the dealer.
(d)	Restrictions on Use. –A dealer license plate may be displayed only on a motor vehicle that meets all of the following requirements:
(1)	Is in the inventory of a dealer.
(2)	Is covered by liability insurance that meets the requirements of Article 9A of this Chapter.
(3)	Is not used by the dealer in another business in which the dealer is engaged.
(4)	Is driven on a highway by a person who is an officer of the dealer, an employee of the dealer, or a person to whom the dealer has issued a demonstration permit and who carries the following while driving the motor vehicle:
a.	The manufacturer's certificate of origin for the motor vehicle, if it is new.
b.	The certificate of title for the motor vehicle, if it is not new.
c.	Any demonstration permit issued to the driver of the motor vehicle.
A dealer may issue a demonstration permit for a motor vehicle to a person licensed to drive that type of motor vehicle.  A demonstration permit authorizes the person named in the permit to drive the motor vehicle described in the permit for a period of 96 hours after the time the permit is issued.  A dealer may, for good cause, renew a demonstration permit for one additional 96-hour period.
A dealer may not lend, rent, lease, or otherwise place a dealer license plate at the disposal of a person except as authorized by this section.  Violation of any of the restrictions on the use of dealer license plates is a misdemeanor and is grounds for denial, suspension, or revocation of a dealer's license under G.S. 20-294.
(e)	Transfer of Dealer Registration. – No change in the name of a firm, partnership or corporation, nor the taking in of a new partner, nor the withdrawal of one or more of the firm, shall be considered a new business; but if any one or more of the partners remain in the firm, or if there is change in ownership of less than a majority of the stock, if a corporation, the business shall be regarded as continuing and the dealers' plates originally issued may continue to be used."
Sec. 4.  G.S. 20-288(a) reads as rewritten:
"(a)	A person may obtain a license by filing an application with the Division.  An application must be on a form provided by the Division and contain the information required by the Division.  An application for a license must be accompanied by the required fee and by an application for a dealer license plate."
Sec. 5.  G.S. 20-79.2 reads as rewritten:
"§ 20-79.2. Transporter plates.
	(a) Who Can Get A Plate. –  A person engaged in a business requiring the limited operation of a motor vehicle for any of the following purposes may obtain a transporter plate authorizing the movement of the vehicle for the specific purpose:
(1)	To facilitate the manufacture, construction, rebuilding, or delivery of a new or used motor vehicle between manufacturer, dealer, seller, or purchaser.
(2)	To repossess a motor vehicle.
(3)	To pick up or deliver a motor vehicle to be prepared for sale by a dealer.
(4)	To move a motor vehicle that is owned by a public utility, as defined in G.S. 62-3(23)a, and is a replaced vehicle offered for sale.
(5)	To take a motor vehicle either to or from a motor vehicle auction where the vehicle will be or was offered for sale.
(6)	To road test a repaired truck whose GVWR is at least 15,000 pounds when the test is performed within a 10-mile radius of the place where the truck was repaired and the truck is owned by a person who has a fleet of at least five trucks whose GVWRs are at least 15,000 pounds and who maintains the place where the truck was repaired.
(7)	To move a mobile office, a mobile classroom, or a manufactured home when the Utilities Commission has authorized the move.
(b)	How To Get A Plate. – A person may obtain a transporter plate by filing an application with the Division and paying the required fee.  An application must be on a form provided by the Division and contain the information required by the Division.  The fee for a transporter plate is the same as the fee set in G.S. 20-87(7) for a dealer license plate.
													(c)	Form, Duration, and Transfer. –  A transporter plate is a type of commercial license plate.   A transporter plate is issued on a calendar year basis.  During the calendar year for which it is issued, a person may transfer a transporter plate from one vehicle to another as long as the vehicle is driven only for a purpose authorized by subsection (a).
	."
Sec. 6.  G.S. 20-79.3 is repealed.
Sec. 7.  Sections 5 and 6 of this act become effective January 1, 1994.  The remainder of this act becomes effective July 1, 1993.