GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	4 

SENATE BILL 162
Transportation Committee Substitute Adopted 3/25/93
Finance Committee Substitute #2 Adopted 4/14/93
House Committee Substitute Favorable 6/17/93

Short Title:  Dealer Plate/License Changes.	(Public)
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Sponsors:
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Referred to:  
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February 15, 1993

A BILL TO BE ENTITLED
AN ACT TO LIMIT THE NUMBER OF MOTOR VEHICLE DEALER LICENSE PLATES THAT CAN BE ISSUED TO THE SAME DEALER, TO MODIFY THE SANCTIONS FOR MISUSE OF A DEALER LICENSE PLATE, TO EXPAND THE USE OF TRANSPORTER PLATES, TO ESTABLISH A SPECIAL SPORTS EVENT TEMPORARY PLATE, AND TO CHANGE THE FEES FOR DEALER PLATES AND TRANSPORTER PLATES.
The General Assembly of North Carolina enacts:
Section. 1.  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. 2.  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 12	1
At least 12 but less than 25	4
At least 25 but less than 37	5
At least 37 but less than 49	6
49 or more	At least 6, 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 49 motor vehicles the previous 12-month period ending April 30 but has sold at least that number 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 49 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 material misstatement in an application for a dealer license plate is grounds for the 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 one of the following occurs, a dealer must surrender to the Division all dealer license plates issued to the dealer:
(1)	The dealer surrenders the license issued to the dealer under Article 12 of this Chapter.
(2)	The Division suspends or revokes the license issued to the dealer under Article 12 of this Chapter.
(3)	The Division rescinds the dealer license plates because of a violation of the restrictions on the use of a dealer license plate.
To obtain a dealer license plate after it has been surrendered, the dealer must file a new application for a dealer license plate and pay the required fee for the plate.
(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 part of the inventory of the dealer.
(2)	Is not consigned to the dealer.
(3)	Is covered by liability insurance that meets the requirements of Article 9A of this Chapter.
(4)	Is not used by the dealer in another business in which the dealer is engaged.
(5)	Is driven on a highway by a person who meets the following requirements and who carries a copy of the registration card for the dealer plate displayed on the motor vehicle and any demonstration permit issued to that person while driving the motor vehicle:
a.	Is an officer of the dealer, an employee of the dealer, or a person to whom the dealer has issued a demonstration permit.
b.	Is at least 18 years old unless the person is test-driving the vehicle and has a demonstration permit or is an employee of the dealer and regularly works for the dealer at least 15 hours a week.
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 each person named in the permit to drive the motor vehicle described in the permit for up to 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 subsection.
(e)	Sanctions. – The following sanctions apply when a motor vehicle displaying a dealer license plate is driven in violation of the restrictions on the use of the plate:
(1)	The individual driving the motor vehicle is responsible for an infraction and is subject to a penalty of fifty dollars ($50.00).
(2)	The dealer to whom the plate is issued is subject to a civil penalty imposed by the Division of two hundred dollars ($200.00).
(3)	The Division may rescind all dealer license plates issued to the dealer whose plate was displayed on the motor vehicle.
A penalty imposed under subdivision (1)	of this subsection is payable to the county where the infraction occurred, as required by G.S. 14-3.1.  A civil penalty imposed under subdivision (2) of this subsection shall be credited to the Highway Fund as nontax revenue.
	(f)	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. 3.  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. 4.  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 new or used truck cabs or bodies between manufacturer, dealer, seller, or purchaser.
(2)	To repossess a motor vehicle.
(3)	To pick up a motor vehicle that is to be repaired or otherwise prepared for sale by a dealer, to road-test the vehicle, if it is repaired, within a 10-mile radius of the place where it is repaired, and to deliver the vehicle to the 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 mobile or manufactured home.
(8)	To drive a motor vehicle that is at least 25 years old to and from a parade or another public event and to drive the motor vehicle in that event.  A person who owns a motor vehicle that is at least 25 years old is considered to be in the business of collecting those vehicles.
(9)	To drive a motor vehicle that is part of the inventory of a dealer to and from a motor vehicle trade show or exhibition or to, during, and from a parade in which the motor vehicle is used.
													(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 one-half the fee set in G.S. 20-87(5) for a passenger motor vehicle of not more than 15 passengers.
(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) of this section.  The Division may rescind a transporter plate that is displayed on a motor vehicle driven for a purpose that is not authorized by subsection (a) of this section."
Sec. 5.  G.S. 20-79.3 is repealed.
Sec. 6.  G.S. 20-95(b) reads as rewritten:
"(b)	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. 7.  G.S. 20-87(7) reads as rewritten:
"(7)	Dealer License Plates. – The fee for a dealer license plate is the regular fee for each of the first five plates issued to the same dealer and is one-half the regular fee for each additional dealer license plate issued to the same dealer.  The 'regular fee' is the fee set in subdivision (5) of this section for a private passenger motor vehicle of not more than 15 passengers."
Sec. 8.  G.S. 20-110 (c), (e), and (f) are repealed.
Sec. 9.  G.S. 20-111(1) reads as rewritten:
"(1)	To drive a vehicle on a highway, or knowingly permit a vehicle owned by that person to be driven on a highway, when the vehicle is not registered with the Division in accordance with this Article or does not display a current registration plate."
Sec. 10.  G.S. 20-293 is repealed.
Sec. 11.  G.S. 20-294 reads as rewritten:
"§ 20-294.  Grounds for denying, suspending or revoking licenses.
The Division may deny, suspend, or revoke a license issued under this Article for any one or more of the following grounds:
(1)	Making a material misstatement in an application for a license.
(2)	Willfully and intentionally failing to comply with this Article, Article 15 of this Chapter, or G.S. 20-52.1, 20-75, 20-82, 20-108, 20-109, or a rule adopted by the Division under this Article.
(3)	Failing to have an established salesroom, if the license holder is a motor vehicle dealer, or failing to have an established office, if the license holder is a wholesaler.
(4)	Willfully defrauding any retail buyer, to the buyer's damage, or any other person in the conduct of the licensee's business.
(5)	Employing fraudulent devices, methods or practices in connection with compliance with the requirements under the laws of this State with respect to the retaking of motor vehicles under retail installment contracts and the redemption and resale of such motor vehicles.
(6)	Using unfair methods of competition or unfair deceptive acts or practices.
(7)	Knowingly advertising by any means, any assertion, representation or statement of fact which is untrue, misleading or deceptive in any particular relating to the conduct of the business licensed or for which a license is sought.
(8)	Knowingly advertising a used motor vehicle for sale as a new motor vehicle.
(9)	Being convicted of an offense set forth under G.S. 20-106, 20-106.1, 20-107, or 20-112 while holding such a license or within five years next preceding the date of filing the application; or being convicted of a felony involving moral turpitude under the laws of this State, another state, or the United States.
(10)	Submitting a bad check to the Division of Motor Vehicles in payment of highway use taxes collected by the licensee.
(11)	Knowingly giving an incorrect certificate of title, or failing to give a certificate of title to a purchaser, a lienholder, or the Division, as appropriate, after a vehicle is sold.
(12)	Making a material misstatement in an application for a dealer license plate."
Sec. 12.  G.S. 20-75 reads as rewritten:
"§ 20-75.  When transferee is dealer or insurance company.
When the transferee of a vehicle registered under this Article is a dealer who is licensed under Article 12 of this Chapter and who holds the vehicle for resale or is an insurance company taking such vehicle for sale or disposal for salvage purposes where such title is taken as a part of a bona fide claim settlement transaction and only for the purpose of resale, such transferee shall not be required to register such vehicle nor forward the certificate of title to the Division as provided in G.S. 20-73. To assign or transfer title or interest in the vehicle, the dealer or insurance company shall execute in the presence of a person authorized to administer oaths a reassignment and warranty of title on the reverse of the certificate of title in the form approved by the Division, including in such reassignment the name and address of the transferee, and title to such vehicle shall not pass or vest until such reassignment is executed and the motor vehicle delivered to the transferee.
The dealer 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 that where a security interest in the motor vehicle is obtained from the transferee in payment of the purchase price or otherwise, the dealer 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 certificate of title and necessary fees to the Division within 20 days. Any person who delivers or accepts a certificate of title assigned in blank shall be guilty of a misdemeanor.
The title to a salvage vehicle shall be forwarded to the Division  as provided in G.S. 20-109.1."
Sec. 13.  Part 5 of Article 3 of Chapter 20 of the General Statutes is amended by adding a new section between G.S. 20-79 and G.S. 20-79.1 to read:
"§ 20-79.01. Special sports event temporary license plates.
(a)	Application. – A dealer who is licensed under Article 12 of this Chapter and who agrees to loan to another for use at a special sports event a vehicle that could display a dealer license plate if driven by an officer or employee of the dealer may obtain a temporary special sports event license plate for that vehicle by filing an application with the Division and paying the required fee.  A 'special sports event' is a sports event that is held no more than once a year and is open to the public.  An application must be filed on a form provided by the Division and contain the information required by the Division.  The fee for a temporary special sports event license plate is five dollars ($5.00).
(b)	Form and Duration. – A temporary special sports event license plate must state on the plate the date it was issued, the date it expires, and the make, model, and serial number of the vehicle for which it is issued.  A temporary special sports event license plate may be issued for no more than 45 days.  The dealer to whom the plate is issued must destroy the plate on or before the date it expires.
(c)	Restrictions on Use. – A temporary special sports event license plate may be displayed only on the vehicle for which it is issued.  A vehicle displaying a temporary special sports event license plate may be driven by anyone who is licensed to drive the type of vehicle for which the plate is issued and may be driven for any purpose."
Sec. 14.  Sections 4, 5, and 6 of this act become effective January 1, 1994.  The remainder of this act becomes effective July 1, 1993.