A BILL TO BE ENTITLED
AN ACT to change article 3A of Chapter 20, safety and emissions inspection programs, to allow for electronic inspection processes and authorization.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 20‑66 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(b1)	Repealed by Session Laws 1993, c. 467, s. 2.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.
(d),	(e) Repealed by Session Laws 1993 (Reg. Sess., 1994), c. 761, § 5.
(f)	Repealed by Session Laws 1993, c. 467, s. 2.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.
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.
(h)	Repealed by Session Laws 2004‑167, s. 3, as amended by Session Laws 2004‑199, s. 59, effective January 1, 2006.
(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¢).
(j)	Inspection Prior to Renewal of Registration. – The Division shall not renew the registration of a vehicle unless it has a current  safety or emissions inspection.
(k)	Return of Registration Plates Upon Expiration. – Registration plates that are not renewed shall be surrendered to the Division within 120 days of expiration."
SECTION 2.  G.S. 20‑183.2(c) reads as rewritten:
"(c)	Definitions. – The following definitions apply in this Part:
(1)	Electronic inspection authorization. – An inspection authorization that is generated electronically through the electronic accounting system that creates a unique nonduplicating authorization number assigned to the vehicle's inspection receipt upon successful passage of an inspection. The term 'electronic inspection authorization' shall include the term 'inspection sticker' during the transition period to use of electronic inspection authorizations.
(2)	Emissions county. – A county listed in G.S. 143‑215.107A(c) or designated by the Environmental Management Commission pursuant to G.S. 143‑215.107A(d) and certified to the Commissioner of Motor Vehicles as a county in which the implementation of a motor vehicle emissions inspection program will improve ambient air quality.
(3)	Federal installation. – An installation that is owned by, leased to, or otherwise regularly used as the place of business of a federal agency."
SECTION 3.  G.S. 20‑183.4 reads as rewritten:
"§ 20‑183.4.  License required to perform safety inspection; qualifications for license.
(a)	License Required. – A safety inspection must be performed by one of the following methods:
(1)	At a station that has a safety inspection station license issued by the Division and by a mechanic who is employed by the station and has a safety inspection mechanic license issued by the Division.
(2)	At a place of business of a person who has a safety self‑inspector license issued by the Division and by an individual who has a safety inspection mechanic license issued by the Division.
(b)	Station Qualifications. – An applicant for a license as a safety inspection station must meet all of the following requirements:
(1)	Have a place of business that has adequate facilities, space, and equipment to conduct a safety inspection. A place of business designated in a station license that has been suspended or revoked cannot be the designated place for any other license applicant during the period of the suspension or revocation, unless the Division finds that operation of the place of business as an inspection station during this period by the license applicant would not defeat the purpose of the suspension or revocation because the license applicant has no connection with the person whose license was suspended or revoked or because of another reason. A finding made by the Division under this subdivision must be set out in a written statement that includes the finding and the reason for the finding.
(2)	Regularly employ at least one mechanic who has a safety inspection mechanic license.
(3)	Designate the individual who will be responsible for the day‑to‑day operation of the station. The individual designated must be of good character and have a reputation for honesty.
(4)	Have equipment and software to transfer information on safety inspections to the Division by electronic means. During the initial implementation of the electronic inspection process, the vendor selected by the Division shall provide the equipment and software at no cost to a station that holds a license on October 1, 2008.
(c)	Mechanic Qualifications. – An applicant for a license as a safety inspection mechanic must meet all of the following requirements:
(1)	Have successfully completed an eight‑hour course approved by the Division that teaches students about the safety equipment a motor vehicle is required to have to pass a safety inspection and how to conduct a safety inspection using equipment to electronically transmit the vehicle information and inspection results.(2)	Have a drivers license.
(3)	Be of good character and have a reputation for honesty.
(d)	Self‑Inspector Qualifications. – An applicant for a license as a safety self‑inspector must meet all of the following requirements:
(1)	Operate a fleet of at least 10 vehicles that are subject to a safety inspection.
(2)	Regularly employ or contract with an individual who has a safety inspection mechanic license and who will perform a safety inspection on the vehicles that are part of the self‑inspector's fleet."
SECTION 4.  G.S. 20‑183.4A reads as rewritten:
"§ 20‑183.4A.  License required to perform emissions inspection; qualifications for license.
(a)	License Required. – An emissions inspection must be performed by one of the following methods:
(1)	At a station that has an emissions inspection station license issued by the Division and by a mechanic who is employed by the station and has an emissions inspection mechanic license issued by the Division.
(2)	At a place of business of a person who has an emissions self‑inspector license issued by the Division and by an individual who has an emissions inspection mechanic license.
(b)	Station Qualifications. – An applicant for a license as an emissions inspection station must meet all of the following requirements:
(1)	Have a license as a safety inspection station.
(2)	Repealed by Laws 2000‑134, s. 15, effective January 1, 2006.
(2a)	Have equipment to analyze data provided by the on‑board diagnostic (OBD) equipment approved by the Environmental Management Commission.
(3)	Have equipment and software to transfer information on emissions inspections to the Division by electronic means. During the initial implementation of the electronic inspection process, the vendor selected by the Division shall provide the software at no cost to a station that holds a license on October 1, 2008.
(4)	Regularly employ at least one mechanic who has an emissions inspection mechanic license.
(c)	Mechanic Qualifications. – An applicant for a license as an emissions inspection mechanic must meet all of the following requirements:
(1)	Have a license as a safety inspection mechanic.
(2)	Repealed by Laws 2000‑134, s. 15, effective January 1, 2006.
(2a)	Have successfully completed an eight‑hour course approved by the Division that teaches students about the causes and effects of the air pollution problem, the purpose of the emissions inspection program, the vehicle emission standards established by the United States Environmental Protection Agency, the emission control devices on vehicles, how to conduct an emissions inspection using equipment to analyze data provided by the on‑board diagnostic (OBD) equipment approved by the Environmental Management Commission, and any other topic required by 40 C.F.R. § 51.367 to be included in the course. Successful completion requires a passing score on a written test and on a hands‑on test in which the student is required to conduct an emissions inspection of a motor vehicle.
(d)	Self‑Inspector Qualifications. – An applicant for a license as an emissions self‑inspector must meet all of the following requirements:
(1)	Have a license as a safety self‑inspector.
(2)	Operate a fleet of at least 10 vehicles that are subject to an emissions inspection.
(3)	Repealed by Laws 2000‑134, s. 15, effective January 1, 2006.
(3a)	Have, or have a contract with a person who has, equipment to analyze data provided by the on‑board diagnostic (OBD) equipment approved by the Environmental Management Commission.
(4)	Regularly employ or contract with an individual who has an emissions inspection mechanic license and who will perform an emissions inspection on the vehicles that are part of the self‑inspector's fleet."
SECTION 5.  G.S. 20‑183.4C(a) reads as rewritten:
"(a)	Inspection. – A vehicle that is subject to a safety inspection, an emissions inspection, or both must be inspected as follows:
(1)	A new vehicle must be inspected before it is sold at retail in this State. Upon purchase, a receipt approved by the Division must be provided to the new owner certifying compliance.
(2)	A used vehicle must be inspected before it is offered for sale at retail in this State by a  dealer. Upon purchase, a receipt approved by the Division must be provided to the new owner certifying compliance.
	(4)	A new or used vehicle acquired by a resident of this State from outside the State must be inspected within 10 days after the vehicle is registered with the Division.
(5)	A vehicle owned by a new resident of this State who transfers the registration of the vehicle from the resident's former home state to this State must be inspected within 10 days after the vehicle is registered with the Division.
	(6)	A vehicle that has been inspected in accordance with this Part must be inspected by the last day of the month in which the registration on the vehicle expires.
(7)	A vehicle that is required to be inspected in accordance with this Part may be inspected 90 days prior to midnight of the last day of the month as designated by the vehicle registration sticker.
(8)	A new or used vehicle acquired from a retailer in this State and registered with the Division with a new registration or a transferred registration must be inspected in accordance with this Part when the current registration expires.
(9)	A used vehicle acquired from a private sale in this State must be inspected in accordance with this Part within 30 days after the vehicle is registered with the Division or when the current registration expires if it has not received a passing inspection within the previous 12 months.
(10)	An unregistered vehicle must be inspected within 30 days after the vehicle is registered with the Division or not later than 30 days after a transferred registration expires.
(11)	A person who owns a vehicle located outside of this State when its emissions inspection becomes due may obtain an emissions inspection in the jurisdiction where the vehicle is located, in lieu of a North Carolina emissions inspection, as long as the inspection meets the requirements of 40 C.F.R. § 51."
SECTION 6.  G.S. 20‑183.4D reads as rewritten:
"§ 20‑183.4D.  Procedure when a vehicle is inspected.
(a)	Receipt. – When a safety inspection mechanic or an emissions inspection mechanic inspects a vehicle, the mechanic must give the person who brought the vehicle in for inspection an inspection receipt. The inspection receipt must state the date of the inspection, identify the mechanic performing the inspection, identify the station or self‑inspector where the inspection was performed, and list the components of the inspection performed and indicate for each component whether the vehicle passed or failed. A vehicle that fails a component of an inspection may be repaired at any repair facility chosen by the owner or operator of the vehicle.
(b)	Electronic Inspection Authorization. – When a vehicle that is subject to a safety inspection only passes the safety inspection, the safety inspection mechanic who performed the inspection must issue an electronic inspection authorization to the vehicle at the place designated by the Division. When a vehicle that is subject to both a safety inspection and an emissions inspection passes both inspections or passes the safety inspection and has a waiver for the emissions inspection, the emissions mechanic performing the inspection must issue an electronic inspection authorization to the vehicle at the place designated by the Division.
							
(e)	When Electronic Inspection Authorization Expires. – An electronic inspection authorization issued under this Part expires at midnight of the last day of the month designated by the vehicle registration sticker of the following year."
SECTION 7.  G.S. 20‑183.5 reads as rewritten:
"§ 20‑183.5.  When a vehicle that fails an emissions inspection may obtain a waiver from the inspection requirement.
(a)	(For amendment to subsection (a) effective January 1, 2006, see notes.) Requirements. – The Division may issue a waiver for a vehicle, excluding a vehicle owned or being held for retail sale by a motor vehicle dealer, that meets all of the following requirements:
(1)	Fails an emissions inspection because it passes the visual inspection but fails the analysis of exhaust emissions or the analysis of data provided by the on‑board diagnostic (OBD) equipment.
(2)	Has documented repairs costing at least the waiver amount made to the vehicle to correct the cause of the failure. The waiver amount is two hundred dollars ($200.00).
(3)	Is reinspected and again fails the inspection because it passes the visual inspection but fails the analysis of exhaust emissions or the analysis of data provided by the on‑board diagnostic (OBD) equipment.
(4)	Meets any other waiver criteria required by 40 C.F.R. § 51.360, or as designated by the Division.
(b)	Procedure. – To obtain a waiver, a person must contact a local enforcement office of the Division. Before issuing a waiver, an employee of the Division must review the inspection receipts issued for the inspections of the vehicle, review the documents establishing what repairs were made to the vehicle and at what cost, review any statement denying warranty coverage of the repairs made, and do a visual inspection of the vehicle, if appropriate, to determine if the documented repairs were made. The Division must issue a waiver if it determines that the vehicle qualifies for a waiver. A person to whom a waiver is issued must present the waiver to the self‑inspector or inspection station performing the inspection to obtain an electronic inspection authorization.
(c)	Repairs. – The following repairs and their costs cannot be considered in determining whether the cost of repairs made to a vehicle equals or exceeds the waiver amount:
(1)	Repairs covered by a warranty that applies to the vehicle.
(2)	Repairs needed as a result of tampering with an emission control device of the vehicle.
(3)	Repairs made by an individual who is not professionally engaged in the business of repairing vehicles.
(4)	OBD diagnostics without corresponding repairs.
(d)	Electronic Inspection Authorization. – An electronic inspection authorization issued to a vehicle after the vehicle receives a waiver from the requirement of passing the emissions inspection expires at the same time it would if the vehicle had passed the emissions inspection."
SECTION 8.  G.S. 20‑183.5A reads as rewritten:
"§ 20‑183.5A.  When a vehicle that fails a safety inspection because of missing emissions control devices may obtain a waiver.
(a)	Requirements. – The Division may issue a waiver for a vehicle that meets all of the following requirements:
(1)	Fails a safety inspection because it does not have one or more emissions control devices.
(2)	Has documented repairs within the previous calendar year to replace missing emissions control devices costing at least the waiver amount made to the vehicle to correct the cause of the failure. The waiver amount is two hundred dollars ($200.00) if the vehicle is a 1996 or newer model.
(b)	Procedure. – To obtain a waiver, a person must contact a local enforcement office of the Division. Before issuing a waiver, an employee of the Division must review the inspection receipts issued for the inspections of the vehicle, review the documents establishing what repairs were made to the vehicle and at what cost, review any statement denying warranty coverage of the repairs made, and do a visual inspection of the vehicle, if appropriate, to determine if the documented repairs were made. The Division must issue a waiver if it determines that the vehicle qualifies for a waiver. A person to whom a waiver is issued must present the waiver to the self‑inspector or inspection station performing the inspection to obtain an electronic inspection authorization. 
(c)	Repairs. – The following repairs and their costs cannot be considered in determining whether the cost of repairs made to a vehicle equals or exceeds the waiver amount:
(1)	Repairs covered by a warranty that applies to the vehicle.
(2)	Repairs needed as a result of tampering with an emission control device of the vehicle.
(3)	Repairs made by an individual who is not professionally engaged in the business of repairing vehicles.
(d)	Sticker Expiration. – An inspection sticker put on a vehicle after the vehicle receives a waiver from the requirement of passing the safety inspection expires at the same time it would if the vehicle had passed the safety inspection."
SECTION 9.  G.S. 20‑183.5A(d) reads as rewritten:
"(d)	Electronic Inspection Authorization Expiration. – An electronic inspection authorization issued to a vehicle after the vehicle receives a waiver from the requirement of passing the safety inspection expires at the same time it would if the vehicle had passed the safety inspection."
SECTION 10.  G.S. 20‑183.6 is repealed.
SECTION 11.  G.S. 20‑183.6A(a) reads as rewritten:
"(a)	Division. – The Division is responsible for administering the safety inspection and the emissions inspection programs. In exercising this responsibility, the Division must:
(1)	Conduct performance audits, record audits, and equipment audits of those licensed to perform inspections to ensure that inspections are performed properly.
(2)	Ensure that Division personnel who audit license holders are knowledgeable about audit procedures and about the requirements of both the safety inspection and the emissions inspection programs.
(3)	Perform an emissions inspection on a vehicle when requested to do so by a vehicle owner so the owner can compare the result of the inspection performed by the Division with the result of an inspection performed at an emissions inspection station.
(4)	Investigate complaints about a person licensed to perform inspections and reports of irregularities in performing inspections.
(5)	Establish written procedures for the issuance of electronic inspection authorizations to persons licensed to perform electronic inspection authorizations.(6)	Submit information and reports to the federal Environmental Protection Agency as required by 40 C.F.R. Part 51.
(b)	License Holders. – A person who is licensed by the Division under this Part must post the license at the place required by the Division and must keep a record of inspections performed. The inspection record must identify the vehicle that was inspected, indicate the type of inspection performed and the date of inspection, and contain any other information required by the Division. A self‑inspector or an inspection station must send its records of inspections to the Division in the form and at the time required by the Division. An auditor of the Division may review the inspection records of a person licensed by the Division under this Part during normal business hours."
SECTION 12.  G.S. 20‑183.7 reads as rewritten:
"§ 20‑183.7.  Fees for performing an inspection and issuing an electronic inspection authorization to a vehicle; use of civil penalties.
(a)	Fee Amount. – When a fee applies to an inspection of a vehicle or the issuance of an electronic inspection authorization, the fee must be collected. The following fees apply to an inspection of a vehicle and the issuance of an electronic inspection authorization:

Type	Inspection	
		Authorization
Safety Only		$12.75	$0.85
Emissions and Safety	23.75	6.25.

The fee for performing an inspection of a vehicle applies when an inspection is performed, regardless of whether the vehicle passes the inspection. The fee for an electronic inspection authorization applies when an electronic inspection authorization is issued to a vehicle. The fee for inspecting after‑factory tinted windows shall be ten dollars ($10.00), and the fee applies only to an inspection performed with a light meter after a safety inspection mechanic determined that the window had after‑factory tint. A safety inspection mechanic shall not inspect an after‑factory tinted window of a vehicle for which the Division has issued a medical exception permit pursuant to G.S. 20‑127(f).
A vehicle that is inspected at an inspection station and fails the inspection is entitled to be reinspected at the same station at any time within 30 days of the failed inspection without paying another inspection fee.
The inspection fee for an emissions and safety inspection set out in this subsection is the maximum amount that an inspection station or an inspection mechanic may charge for an emissions and safety inspection of a vehicle. An inspection station or an inspection mechanic may charge the maximum amount or any lesser amount for an emissions and safety inspection of a vehicle. The inspection fee for a safety only inspection set out in this subsection may not be increased or decreased. The authorization fees set out in this subsection may not be increased or decreased.
(b)	Self‑Inspector. – The fee for an inspection does not apply to an inspection performed by a self‑inspector. The fee for issuing an electronic inspection authorization to a vehicle applies to an inspection performed by a self‑inspector.
(c)	Fee Distribution. – Fees collected for electronic inspection authorizations are payable to the Division of Motor Vehicles. The amount of each fee listed in the table below shall be credited to the Highway Fund, the Emissions Program Account established in subsection (d) of this section, the Telecommunications Account established in subsection (d1) of this section, the Volunteer Rescue/EMS Fund established in G.S. 58‑87‑5, the Rescue Squad Workers' Relief Fund established in G.S. 58‑88‑5, and the Division of Air Quality of the Department of Environment and Natural Resources:

Recipient	Safety Only	Emissions and
		Safety 
	Electronic	Electronic
	Authorization Authorization
Highway Fund	.55	.55
Emissions Program Account	.00	3.00
Telecommunications Account	.00	1.75
Volunteer Rescue/EMS Fund	.18	.18
Rescue Squad Workers' Relief Fund	.12	.12
Division of Air Quality	.00	.65

(d)	Emissions Program Account. – The Emissions Program Account is created as a nonreverting account within the Highway Fund. The Division shall administer the Account. Revenue in the Account may be used only to fund the vehicle emissions inspection and maintenance program.
(d1)	Telecommunications Account. – The Telecommunications Account is created as a nonreverting account within the Highway Fund. The Division shall administer the Account. Revenue in the Account may be used only to provide equipment and telecommunications services associated with the vehicle safety and emissions inspection and maintenance program.
(e)	Civil Penalties. – Civil penalties collected under this Part shall be credited to the Highway Fund as nontax revenue.
(f)	Inspection Stations Required to Post Fee Information. – The Division shall approve the form and style of one or more standard signs to be used to display the information required by this subsection. The Division shall require that one or more of the standard signs be conspicuously posted at each inspection station in a manner reasonably calculated to make the information on the sign readily available to each person who presents a motor vehicle to the station for inspection. The sign shall include the following information:
(1)	The maximum and minimum amounts of the inspection fee authorized by this section.
(2)	The amount of the inspection fee charged by the inspection station and a statement that clearly indicates that the amount of the inspection fee is determined by the inspection station, that the inspection fee is retained by the inspection station to compensate the station for performing the inspection, and that the inspection fee is not paid to the State.
(3)	The amount of the electronic inspection authorization fee, if the motor vehicle passes the inspection, a statement that the electronic inspection authorization fee is paid to the State, and a brief summary of the purposes for which the electronic inspection authorization fee is collected.
(4)	The total fee to be charged if the motor vehicle passes the inspection.
(5)	A statement that a vehicle that fails an inspection may be reinspected at the same station within 30 days of the inspection without payment of another inspection fee.
(g)	Information on Receipt. – The information set out in subdivisions (1) through (5) of subsection (f) of this section shall be set out in not smaller than 12 point type and shall be shown graphically in the form of a pie chart on the inspection receipt.
(h)	Subsections (f) and (g) of this section apply only to inspection stations that perform both emissions and safety inspections."
SECTION 13.  G.S. 20‑183.7B reads as rewritten:
"§ 20‑183.7B.  Acts that are Type I, II, or III safety violations.
(a)	Type I. – It is a Type I violation for a safety self‑inspector, a safety inspection station, or a safety inspection mechanic to do any of the following:
(1)	Issue a safety electronic inspection authorization to a vehicle without performing a safety inspection of vehicle.
(2)	Issue a safety electronic inspection authorization to a vehicle after performing a safety inspection of the vehicle and determining that the vehicle did not pass the inspection.
(3)	Allow a person who is not licensed as a safety inspection mechanic to perform a safety inspection for a self‑inspector or at a safety station.
(4)	Sell, issue, or otherwise give an electronic inspection authorization to another, other than as the result of a vehicle inspection in which the vehicle passed the inspection.
(5)	Be unable to account for five or more electronic inspection authorizations at any one time upon the request of an officer of the Division.
(6)	Perform a safety‑only inspection on a vehicle that is subject to both a safety and an emissions inspection.
(7)	Transfer an electronic inspection authorization from one vehicle to another.
(8)	Conduct a safety inspection of a vehicle without driving the vehicle and without raising the vehicle and without opening the hood of the vehicle to check equipment located therein.
(9)	Solicit or accept anything of value to pass a vehicle other than as provided in this Part.
(b)	Type II. – It is a Type II violation for a safety self‑inspector, a safety inspection station, or a safety inspection mechanic to do any of the following:
(1)	Issue a safety electronic inspection authorization to a vehicle without driving the vehicle and checking the vehicle's braking reaction, foot brake pedal reserve, and steering free play.
(2)	Issue a safety electronic inspection authorization to a vehicle without raising the vehicle to free each wheel and checking the vehicle's tires, brake lines, parking brake cables, wheel drums, exhaust system, and the emissions equipment.
(3)	Issue a safety electronic inspection authorization to a vehicle without raising the hood and checking the master cylinder, horn mounting, power steering, and emissions equipment.
(4)	Conduct a safety inspection of a vehicle outside the designated inspection area.
(5)	Issue a safety electronic inspection authorization to a vehicle with inoperative equipment, or with equipment that does not conform to the vehicle's original equipment or design specifications, or with equipment that is prohibited by any provision of law.
(6)	Issue a safety electronic inspection authorization to a vehicle without performing a visual inspection of the vehicle's exhaust system.
(7)	Issue a safety electronic inspection authorization to a vehicle without checking the exhaust system for leaks.
(8)	Issue a safety electronic inspection authorization to a vehicle that is required to have any of the following emissions control devices but does not have the device:
a.	Catalytic converter.
b.	PCV valve.
c.	Thermostatic air control.
d.	Oxygen sensor.
e.	Unleaded gas restrictor.
f.	Gasoline tank cap.
g.	Air injection system.
h.	Evaporative emissions system.
i.	Exhaust gas recirculation (EGR) valve.
(9)	Issue a safety electronic inspection authorization to a vehicle after failing to inspect four or more of following:
a.	Emergency brake.
b.	Horn.
c.	Headlight high beam indicator.
d.	Inside rearview mirror.
e.	Outside rearview mirror.
f.	Turn signals.
g.	Parking lights.
h.	Headlights – operation and lens.
i.	Headlights – aim.
j.	Stoplights.
k.	Taillights.
l.	License plate lights.
m.	Windshield wiper.
n.	Windshield wiper blades.
o.	Window tint.
(10)	Impose no fee for a safety inspection of a vehicle or the issuance of a safety electronic inspection authorization or impose a fee for one of these actions in an amount that differs from the amount set in G.S. 20‑183.7.
(c)	Type III. – It is a Type III violation for a safety self‑inspector, a safety inspection station, or a safety inspection mechanic to do any of the following:
(1)	Fail to post a safety inspection station license issued by the Division.
(2)	Fail to send information on safety inspections to the Division at the time or in the form required by the Division.
(3)	Fail to post all safety information required by federal law and by the Division.
(4)	Fail to put the required information on an  inspection receipt in a legible manner using ink.
(5)	Issue a receipt that is signed by a person other than the safety inspection mechanic.
(6)	Place an incorrect expiration date on an electronic inspection authorization.
(7)	Issue a safety electronic inspection authorization to a vehicle after having failed to inspect three or fewer of the following:
a.	Emergency brake.
b.	Horn.
c.	Headlight high beam indicator.
d.	Inside rearview mirror.
e.	Outside rearview mirror.
f.	Turn signals.
g.	Parking lights.
h.	Headlights – operation and lens.
i.	Headlights – aim.
j.	Stoplights.
k.	Taillights.
l.	License plate lights.
m.	Windshield wiper.
n.	Windshield wiper blades.
o.	Window tint.
(d)	Other Acts. – The lists in this section of the acts that are Type I, Type II, or Type III violations are not the only acts that are one of these types of violations. The Division may designate other acts that are a Type I, Type II, or Type III violation."
SECTION 14.  G.S. 20‑183.8 reads as rewritten:
"§ 20‑183.8.  Infractions and criminal offenses for violations of inspection requirements.
(a)	Infractions. – A person who does any of the following commits an infraction and, if found responsible, is liable for a penalty of up to fifty dollars ($50.00):
(1)	Operates a motor vehicle that is subject to inspection under this Part on a highway or public vehicular area in the State when the vehicle has not been inspected in accordance with this Part, as evidenced by the vehicle's lack of a current electronic inspection authorization or otherwise.
(2)	Allows an electronic inspection authorization to be issued to a vehicle owned or operated by that person, knowing that the vehicle was not inspected before the electronic inspection authorization was issued or was not inspected properly.
(3)	Issues an electronic inspection authorization on a vehicle, knowing or having reasonable grounds to know that an inspection of the vehicle was not performed or was performed improperly. A person who is cited for a civil penalty under G.S. 20‑183.8B for an emissions violation involving the inspection of a vehicle may not be charged with an infraction under this subdivision based on that same vehicle.
(4)	Alters the original certified configuration or data link connectors of a vehicle in such a way as to make an emissions inspection by analysis of data provided by on‑board diagnostic (OBD) equipment inaccurate or impossible.
(b)	Defenses to Infractions. – Any of the following is a defense to a violation under subsection (a) of this section:
(1)	The vehicle was continuously out of State for at least the 30 days preceding the date the electronic inspection authorization expired and a current electronic inspection authorization was obtained within 10 days after the vehicle came back to the State.
(2)	The vehicle displays a dealer license plate or a transporter plate, the dealer repossessed the vehicle or otherwise acquired the vehicle within the last 10 days, and the vehicle is being driven from its place of acquisition to the dealer's place of business or to an inspection station.
(3)	Repealed by Session Laws 1997‑29, s. 5.
(4)	The charged infraction is described in subdivision (a)(1) of this section, the vehicle is subject to a safety inspection or an emissions inspection and the vehicle owner establishes in court that the vehicle was inspected after the citation was issued and within 30 days of the expiration date of the inspection sticker that was on the vehicle or the electronic inspection authorization was issued to the vehicle when the citation was issued.
(c)	Felony. – A person who does any of the following commits a Class I felony:
(1)	Forges an inspection sticker or inspection receipt.
(2)	Buys, sells, issues, or possesses a forged inspection sticker or electronic inspection authorization.
(3)	Buys, sells, issues, or possesses an electronic inspection authorization other than as the result of either of the following:
a.	Having a license as an inspection station, a self‑inspector, or an inspection mechanic and obtaining the electronic inspection authorization from the Division through an electronic authorization vendor in the course of business.
b.	A vehicle inspection in which the vehicle passed the inspection or for which the vehicle received a waiver.
(4)	Solicits or accepts anything of value in order to pass a vehicle that fails a safety or emissions inspection.
(5)	Fails a vehicle for any reason not authorized by law."
SECTION 15.  G.S. 20‑183.8A reads as rewritten:
"§ 20‑183.8A.  Civil penalties against motorists for emissions violations.
The Division shall assess a civil penalty against a person who owns or leases a vehicle that is subject to an emissions inspection and who does any of the following:
(1)	Fails to have the vehicle inspected within four months after it is required to be inspected under this Part.
(2)	Instructs or allows a person to tamper with an emission control device of the vehicle so as to make the device inoperative or fail to work properly.
(3)	Incorrectly states the county of registration of the vehicle to avoid having an emissions inspection of the vehicle.
The amount of penalty is two hundred fifty dollars ($250.00). As provided in G.S. 20‑54, the registration of a vehicle may not be renewed until a penalty imposed under this section has been paid."
SECTION 16.  G.S. 20‑183.8C reads as rewritten:
"§ 20‑183.8C.  Acts that are Type I, II, or III emissions violations.
(a)	Type I. – It is a Type I violation for an emissions self‑inspector, an emissions inspection station, or an emissions inspection mechanic to do any of the following:
(1)	Issue an emissions electronic inspection authorization on a vehicle without performing an emissions inspection of the vehicle.
(1a)	Issue an emissions electronic inspection authorization to a vehicle after performing an emissions inspection of the vehicle and determining that the vehicle did not pass the inspection.
(2)	Use a test‑defeating strategy when conducting an emissions inspection by changing the emission standards for a vehicle by incorrectly entering the vehicle type or model year, or using data provided by the on‑board diagnostic (OBD) equipment of another vehicle to achieve a passing result.
(3)	Allow a person who is not licensed as an emissions inspection mechanic to perform an emissions inspection for a self‑inspector or at an emissions station.
(4)	Sell, issue, or otherwise give an electronic inspection authorization to another other than as the result of a vehicle inspection in which the vehicle passed the inspection or for which the vehicle received a waiver.
(5)	Be unable to account for five or more electronic inspection authorizations at any one time upon the request of an auditor of the Division.
(6)	Perform a safety‑only inspection on a vehicle that is subject to both a safety and an emissions inspection.
(7)	Transfer an electronic inspection authorization from one vehicle to another.
(b)	Type II. – It is a Type II violation for an emissions self‑inspector, an emissions inspection station, or an emissions inspection mechanic to do any of the following:
(1)	Use the identification code of another to gain access to an emissions analyzer or to equipment to analyze data provided by on‑board diagnostic (OBD) equipment.
(2)	Keep compliance documents in a manner that makes them easily accessible to individuals who are not inspection mechanics.
(3)	Issue a safety electronic inspection authorization or an emissions electronic inspection authorization on a vehicle that is required to have one of the following emissions control devices but does not have it:
a.	Catalytic converter.
b.	PCV valve.
c.	Thermostatic air control.
d.	Oxygen sensor.
e.	Unleaded gas restrictor.
f.	Gasoline tank cap.
g.	Air injection system.
h.	Evaporative emissions system.
i.	Exhaust gas recirculation (EGR) valve.
(4)	Issue a safety electronic inspection authorization or an emissions electronic inspection authorization on a vehicle without performing a visual inspection of the vehicle's exhaust system and checking the exhaust system for leaks.
(5)	Impose no fee for an emissions inspection of a vehicle or the issuance of an emissions electronic inspection authorization or impose a fee for one of these actions in an amount that differs from the amount set in G.S. 20‑183.7.
(c)	Type III. – It is a Type III violation for an emissions self‑inspector, an emissions inspection station, or an emissions inspection mechanic to do any of the following:
(1)	Fail to post an emissions license issued by the Division.
(2)	Fail to send information on emissions inspections to the Division at the time or in the form required by the Division.
(3)	Fail to post emissions information required by federal law to be posted.
	(5)	Fail to put the required information on an inspection receipt in a legible manner.
	(d)	Other Acts. – The lists in this section of the acts that are Type I, Type II, or Type III violations are not the only acts that are one of these types of violations. The Division may designate other acts that are a Type I, Type II, or Type III violation."
SECTION 16.1.  The Division may utilize the vendor currently providing services for the emissions stations to help implement the provisions of this act.
SECTION 16.2.  The Division shall report on the progress of implementing this act to the Joint Legislative Transportation Oversight Committee by May 1, 2008.
SECTION 17.  This act becomes effective October 1, 2008, and applies to offenses committed on or after that date.