A BILL TO BE ENTITLED
AN ACT to create new motor vehicle titling and registration categories for motor VEHICLES classified as custom built VEHICLES, replica vehicles, AND street rods, to require an ADDITIONAL thirty-dollar registration fee to support the division of motor vehicles bureau of license and theft motor VEHICLE examination program, and to make corresponding changes.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 20‑4.01(33) reads as rewritten:
"(33)	a.	Flood Vehicle. – A motor vehicle that has been submerged or partially submerged in water to the extent that damage to the body, engine, transmission, or differential has occurred.
b.	Non‑U.S.A. Vehicle. – A motor vehicle manufactured outside of the United States and not intended by the manufacturer for sale in the United States.
c.	Reconstructed Vehicle. – A motor vehicle of a type required to be registered hereunder that has been materially altered from original construction due to removal, addition or substitution of new or used essential parts and includes glider kits.d.	Salvage Motor Vehicle. – Any motor vehicle damaged by collision or other occurrence to the extent that the cost of repairs to the vehicle and rendering the vehicle safe for use on the public streets and highways would exceed seventy‑five percent (75%) of its fair retail market value, whether or not the motor vehicle has been declared a total loss by an insurer. Repairs shall include the cost of parts and labor. Fair market retail values shall be as found in the NADA Pricing Guide Book or other publications approved by the Commissioner.
e.	Salvage Rebuilt Vehicle. – A salvage vehicle that has been rebuilt for title and registration.
f.	Junk Vehicle. – A motor vehicle which is incapable of operation or use upon the highways and has no resale value except as a source of parts or scrap, and shall not be titled or registered.
g.	Replica Vehicle. – A motor vehicle sold unassembled and manufactured from a kit. When the kit is assembled the completed vehicle replicates an earlier year, make, and model vehicle. Replica vehicles shall be titled as the year, make, and model of the vehicle intended to be replicated. A label of 'Replica' shall be applied to the title and registration card. All Replica vehicle titles shall be branded as 'Specially Constructed Vehicle.' However, this classification does not apply to motorcycles. If the vehicle is a motorcycle, it shall be classified as a 'Custom Built' vehicle.
h.	Street Rod Vehicle. – A motor vehicle manufactured prior to 1949, which has been altered from the manufacturer's original design; or has a body constructed from non‑original materials. The model year of a Street Rod shall continue to be recognized as the manufacturer's assigned model year. The manufacturers name shall continue to be used as the make with a label of 'Street Rod' applied to the title and registration card. All Street Rod titles will be branded as 'Specially Constructed Vehicle.' However, this classification does not apply to motorcycles. If the vehicle is a motorcycle, it shall be classified as a 'Custom Built' vehicle.
i.	Custom Built Vehicle. – A motor vehicle reconstructed or assembled by a non‑manufacturer from new or used parts, which has an exterior that does not replicate or resemble any other manufactured vehicle. The vehicle will be titled and registered showing the make as 'Custom Built' and the year the vehicle was built shall be the vehicle model year. All custom built vehicle titles shall be branded as 'Specially Constructed Vehicle.'
j.	Specially Constructed Vehicle. – A motor vehicle of a type required to be registered hereunder that has been materially altered from original construction due to removal, addition, or substitution of new or used essential parts; and includes replicas, street rods, and custom built vehicles.
k.	Inoperable Vehicle. – A motor vehicle of a type that is mechanically unfit or unsafe to be operated or moved upon a public street, highway, or public vehicular area. A vehicle of this type may be titled but no registration may be issued until such time as the Bureau of License and Theft inspects the vehicle to ensure it is mechanically fit for operation on a public street, highway, or public vehicular area. If a title of this type is issued, no Highway Use taxes may be assessed pursuant to Article 5 of Chapter 105 of the General Statutes. Once a vehicle has been deemed safe and operable pursuant to an inspection by the Bureau of License and Theft, the Commissioner shall title the vehicle by classifying it in the proper category and collecting all Highway Use taxes applicable to the value of the car at the time the vehicle is retitled to a proper classification described in this subdivision.
SECTION 2.  G.S. 20‑53 is amended by adding a new subsection to read:
"(e)	Every applicant for a Custom Built, Replica, or Street Rod title and registration shall pay to the Division a onetime fee of thirty dollars ($30.00) which shall be in addition to any other fee required by this Chapter. The proceeds of this onetime fee shall be used by the Division for the administration of the Antique, Custom Built, Replica, and Street Rod motor vehicle examination programs. Nothing in this subsection shall require existing Custom Built vehicle owners to pay any additional fees; however, if an existing Custom Built vehicle owner desires a vehicle title classification change, they may, upon application and payment of the additional fee, be eligible for such reclassification."
SECTION 3.  G.S. 20‑53 is amended by adding a new subsection to read:
"(f)	Every agent of the Division of Motor Vehicles, Bureau of License and Theft, shall attend an annual in‑service training course that incorporates a classroom training program detailing the inspection procedure for inoperable vehicles and complete a physical examination of a test vehicle to verify that the agent can determine which vehicles are operable and inoperable based on the uniform training required by this subsection to ensure uniform statewide enforcement of the titling provisions of this Part."
SECTION 4.  G.S. 20‑71.3(a) reads as rewritten:
"(a)	Motor vehicle certificates of title and registration cards issued pursuant to G.S. 20‑57 shall be branded in accordance with this section.
As used in this section, "branded" means that the title and registration card shall contain a designation that discloses if the vehicle is classified as any of the following:
(1)	Salvage Motor Vehicle.
(2)	Salvage Rebuilt Vehicle.
(3)	Reconstructed Vehicle.
(4)	Flood Vehicle.
(5)	Non‑U.S.A. Vehicle.
(6)	Specially Constructed Vehicle.
(7)	Inoperable Vehicle.
(8)	Any other classification authorized by law.
SECTION 5.  G.S. 20‑71.3(b) reads as rewritten:
"(b)	Any motor vehicle up to and including six model years old damaged by collision or other occurrence, that is to be retitled in this State, shall be subject to preliminary and final inspections by the License and Theft Bureau of the Division. For purposes of this section, the term "six model years" shall be calculated by counting the model year of the vehicle's manufacture as the first model year and the current calendar year as the final model year.
These inspections serve as antitheft measures and do not certify the safety or road‑worthiness of a vehicle."
SECTION 6.  G.S. 20‑71.4(a)(2) reads as rewritten:
"(2)	Transfer a motor vehicle when the transferor has knowledge that the vehicle is, or was, a flood vehicle, a reconstructed vehicle, a specially constructed vehicle, or a salvage motor vehicle, without disclosing that fact in writing to the transferee prior to the transfer of the vehicle."
SECTION 7.  This act becomes effective July 1, 2008, and applies to applications received by the Division of Motor Vehicles on or after that date.