A BILL TO BE ENTITLED
AN ACT To make changes to various Division of motor vehicles processes.
The General Assembly of North Carolina enacts:

TEMPORARILY AUTHORIZE DIVISION OF MOTOR VEHICLES TO PROCESS TITLES THROUGH COMMISSION CONTRACTORS
SECTION 1.(a)  Notwithstanding any provision of law to the contrary, the Division of Motor Vehicles is authorized to enter into agreements to utilize commission contractors under contract with the Division pursuant to G.S. 20‑63(h) to process certificates of title and renewals of vehicle registrations issued by the Division. The Division must provide compensation to a commission contractor for processing titles and registration renewals at the transaction rate established for issuing a title or registration document in G.S. 20‑63(h). The Division may only enter into agreements under this section with commission contractors that use the State courier service for delivery. The Division must deliver to the commission contractor any paperwork or supplies necessary for processing a title or registration renewal and provide appropriate guidance on processing. A commission contractor that enters into an agreement under this section is authorized to mail registration plates and stickers directly to customers using prepaid envelopes provided by the Division.
SECTION 1.(b)  This section is effective when it becomes law and expires December 31, 2020.

AUTHORIZE DIVISION OF MOTOR VEHICLES TO DISTRIBUTE TEMPORARY REGISTRATION PLATES THROUGH COMMISSION CONTRACTORS
SECTION 2.  G.S. 20‑79.1 is amended by adding a new subsection to read:
"(l)	The Division is authorized to enter into agreements to utilize commission contractors under contract with the Division under G.S. 20‑63(h) to distribute temporary registration plates to dealers as provided in this section. The Division must provide compensation to commission contractors for distributing temporary registration plates at the transaction rate established for issuing registration documents in G.S. 20‑63(h). The Division must provide commission contractors with any forms, equipment, and supplies necessary for distributing temporary registration plates and provide appropriate guidance and supervision of the distribution. The Division shall, insofar as practicable, identify at least six commission contractors to enter into agreements with under this subsection to make temporary registration plates more available to dealers across all geographic regions of the State."

TEMPORARY APPLICATION FOR NOTATIONS OF SECURITY INTERESTS MODIFICATIONS
SECTION 3.(a)  Electronic Signatures for Applications for Notations of Security Interest Signed by Debtor. – Notwithstanding any other provision of law to the contrary, an application for a notation of a security interest submitted to the Division of Motor Vehicles pursuant to G.S. 20‑58(a)(2) signed by a debtor may be signed by electronic signature by the debtor without notarization provided the application is submitted by a licensed or regulated lender in this State having a lienholder identification number issued by the Division.
SECTION 3.(b)  Certain Documentary Evidence Not Required for Applications Without Debtor Signature. – Notwithstanding any other provision of law to the contrary, an application for a notation of a security interest submitted to the Division of Motor Vehicles pursuant to G.S. 20‑58(a)(2) signed by the secured party instead of the debtor does not require documentary evidence of the applicant's security interest in that motor vehicle signed by the debtor provided the application is submitted by a licensed or regulated lender in this State having a lienholder identification number issued by the Division.
SECTION 3.(c)  Manufactured Home Applicability. – This section does not apply to applications for a notation of a security interest for manufactured homes.
SECTION 3.(d)  Division Liability. – The Division shall not be liable for any cause of action arising from a notation of security interest fraudulently or erroneously placed on a certificate of title for applications submitted to the Division pursuant to this section. Any entity offering an electronic signature process for applications submitted pursuant to this section assumes all responsibility and liability for the accuracy of the signature. The Division shall be held harmless from any liability to a claim arising from applications submitted with an inaccurate electronic signature pursuant to this section.
SECTION 3.(e)  This section is effective when it becomes law and applies to applications for notation of security interests submitted to the Division of Motor Vehicles on or after that date and before December 1, 2020.

ELECTRONIC SUBMISSION AUTHORIZATION FOR DEALER TEMPORARY MOTOR VEHICLE PLATE ORDERS
SECTION 4.(a)  G.S. 20‑79.1(a) reads as rewritten:
"(a)	The Division may, subject to the limitations and conditions hereinafter set forth, deliver temporary registration plates or markers designed by said Division to a dealer duly registered under the provisions of this Article who applies for at least 25 such plates or markers and who encloses with the application a fee of one dollar ($1.00) for each plate or marker for which application is made. The application shall be made upon a form prescribed and furnished by the Division. The Division shall provide methods for physical and electronic application submission and payment. Any electronic application submitted to the Division under this subsection may include a method for electronic signature by the dealer. Dealers, subject to the limitations and conditions hereinafter set forth, may issue temporary registration plates or markers to owners of vehicles, provided that owners comply with the pertinent provisions of this section."
SECTION 4.(b)  This section becomes effective October 1, 2020, and applies to dealer applications for temporary registration plates or markers submitted on or after that date.

CLARIFY CERTAIN DMV CRIMINAL HISTORY RECORD CHECK REQUIREMENTS
SECTION 5.(a)  G.S. 20‑288 reads as rewritten:
"§ 20‑288.  Application for license; license requirements; expiration of license; bond.
…
(b)	The Division shall require in such application, or otherwise, information relating to matters set forth in G.S. 20‑294 as grounds for the refusing of licenses, and to other pertinent matters commensurate with the safeguarding of the public interest, all of which shall be considered by the Division in determining the fitness of the applicant to engage in the business for which he seeks a license. The Division shall not require submission of an applicant's fingerprints to be used in performing a criminal history record check of an applicant for a license or license renewal.
…."
SECTION 5.(b)  G.S. 93B‑8.1 is amended by adding a new subsection to read:
"(c1)	Nothing in this section or in G.S. 93B‑1 shall be construed as authorizing an occupational licensing board or a State agency licensing board to require an applicant to consent to a criminal history record check or use of fingerprints or other identifying information required by the State or National Repositories of Criminal Histories as a condition of granting or renewing a license."
SECTION 5.(c)  This section becomes effective July 1, 2020, and applies to applications for licensure or renewal received on or after that date.

GRACE PERIOD AUTHORIZED FOR EXPIRATION OF MOTOR VEHICLE DEALER LICENSES WHEN RENEWAL PAPERWORK HAS BEEN SUBMITTED
SECTION 6.(a)  G.S. 20‑295 reads as rewritten:
"§ 20‑295.  Action on application; grace period while application for license renewal is pending.
(a)	Division Action. – The Division shall either grant or deny an application for a license or license renewal 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.
(b)	Pending License Renewal Grace Period. – When an application for license renewal has been timely submitted prior to expiration of the license, the license shall remain valid for up to 30 days after the expiration date until the Division grants or denies the application. The Division shall ensure that any database maintained by the Division that indicates the status of a license issued under this Article reflects that the license continues to be valid during this period."
SECTION 6.(b)  This section becomes effective October 1, 2020, and applies to licenses that expire on or after that date.

EFFECTIVE DATE
SECTION 7.  Except as otherwise provided, this act is effective when it becomes law.