North Carolina § 20-79 - Dealer license plates.

§ 20-79. Dealer license plates.

How to Get a Dealer Plate. - The Division may issue a person licensed under Article 12 of this Chapter the appropriate classification of dealer license plate. A person eligible for a dealer license plate may obtain one 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). Number of Plates. - A dealer who was licensed under Article 12 of this Chapter for the previous 12-month period ending December 31 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: 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, a "First in Freedom" plate, or a "National/State Mottos" plate. A dealer license plate must have a distinguishing symbol identifying the plate as a dealer license plate. The symbol may vary depending upon the classification of dealer license plate issued. The Division must provide suitably reduced sized license plates for motorcycle dealers and manufacturers. The dealer surrenders the license issued to the dealer under Article 12 of this Chapter. The Division suspends or revokes the license issued to the dealer under Article 12 of this Chapter. The Division rescinds the dealer license plates because of a violation of the restrictions on the use of a dealer license plate. (Effective until December 31, 2024) Restrictions on Use. - A dealer license plate may be displayed only on a motor vehicle that meets all of the following requirements: Is part of the inventory of the dealer. Is not consigned to the dealer. Is covered by liability insurance that meets the requirements of Article 9A of this Chapter. Is not used by the dealer in another business in which the dealer is engaged. Is driven on a highway by a person who meets one of the following descriptions: Has a demonstration permit to test-drive the motor vehicle and carries the demonstration permit while driving the motor vehicle. Is an officer or sales representative of the dealer and is driving the vehicle for a business purpose of the dealer. Is an employee of the dealer and is driving the vehicle in the course of employment. Is an employee of the dealer or of a contractor of the dealer and is driving the vehicle within a 20-mile radius of a place where the vehicle is being repaired or otherwise prepared for sale. Is an employee of the dealer or of a contractor of the dealer and is transporting the vehicle to or from a vehicle auction or to the dealer's established salesroom. Is an officer, sales representative, or other employee of an independent or franchised motor vehicle dealer or is an immediate family member of an officer, sales representative, or other employee of an independent or franchised motor vehicle dealer. A copy of the registration card for the dealer plate issued to the dealer is carried by the person operating the motor vehicle or, if the person is operating the motor vehicle in this State, the registration card is maintained on file at the dealer's address listed on the registration card, and the registration card must be able to be produced within 24 hours upon request of any law enforcement officer. (Effective December 31, 2024) Restrictions on Use. - A dealer license plate may be displayed only on a motor vehicle that meets all of the following requirements: Is part of the inventory of the dealer. Is not consigned to the dealer. Is covered by liability insurance that meets the requirements of Article 9A of this Chapter. Is not used by the dealer in another business in which the dealer is engaged. Is driven on a highway by a person who meets one of the following descriptions: Has a demonstration permit to test-drive the motor vehicle and carries the demonstration permit while driving the motor vehicle. Is an officer or sales representative of the dealer and is driving the vehicle for a business purpose of the dealer. Is an employee of the dealer and is driving the vehicle in the course of employment. Is an employee of the dealer or of a contractor of the dealer and is driving the vehicle within a 20-mile radius of a place where the vehicle is being repaired or otherwise prepared for sale. Is an employee of the dealer or of a contractor of the dealer and is transporting the vehicle to or from a vehicle auction or to the dealer's established salesroom. Is an officer, sales representative, or other employee of an independent or franchised motor vehicle dealer or is an immediate family member of an officer, sales representative, or other employee of an independent or franchised motor vehicle dealer. A copy of the registration card for the dealer plate issued to the dealer is carried by the person operating the motor vehicle or, if the person is operating the motor vehicle in this State, the registration card is maintained on file at the dealer's address listed on the registration card, and the registration card must be able to be produced within 24 hours upon request of any law enforcement officer. 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: The individual driving the motor vehicle is responsible for an infraction and is subject to a penalty of one hundred dollars ($100.00). The dealer to whom the plate is issued is subject to a civil penalty imposed by the Division of two hundred fifty dollars ($250.00). The Division may rescind all dealer license plates issued to the dealer whose plate was displayed on the motor vehicle. 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. Penalties. - The clear proceeds of all civil penalties, civil forfeitures, and civil fines that are collected by the Department of Transportation pursuant to this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. Definition. - For purposes of this section, the term "dealer" means a person who is licensed under Article 12 of this Chapter. Vehicles Sold In Relevant Maximum Number of Plates ------------------------- ------------------------- 12-Month Period ----------------- Fewer than 12 3 At least 12 but less than 25 6 At least 25 but less than 37 7 At least 37 but less than 49 8 49 or more At least 8, but no more than 5 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 December 31 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 December 31 but has sold at least that number since January 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 December 31. 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 . A dealer engaged in the alteration and sale of specialty vehicles may apply for up to two dealer plates in addition to the number of dealer plates that the dealer would otherwise be entitled to under this section. This subsection does not apply to manufacturers licensed under Article 12 of this Chapter. A dealer license plate is issued for a period of one year. The Division shall vary the expiration dates of dealer registration renewals so that an approximately equal number expires at the end of each month, quarter, or other period consisting of one or more months. A dealer license plate may be transferred from one vehicle to another. When the Division issues a dealer plate, it may issue a registration that expires at the end of any monthly interval. When one of the following occurs, a dealer must surrender to the Division all dealer license plates issued to the dealer: 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. 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 franchised motor vehicle dealer is not prohibited from using a demonstration permit pursuant to this subsection by reason of the dealer's receipt of incentive or warranty compensation or other reimbursement or consideration from a manufacturer, factory branch, distributor, distributor branch or from a third-party warranty, maintenance, or service contract company relating to the use of the vehicle as a demonstrator or service loaner. 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. 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. 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. History (1937, c. 407, s. 43; 1947, c. 220, s. 2; 1949, c. 583, s. 3; 1951, c. 985, s. 2; 1959, c. 1264, s. 3.5; 1961, c. 360, s. 15; 1975, c. 716, s. 5; 1979, c. 239; c. 612, s. 1; 1985, c. 764, s. 21; 1985 (Reg. Sess., 1986), c. 852, s. 17; 1989, c. 770, s. 74.1(a); 1993, c. 321, s. 169.4; c. 440, s. 2; c. 539, s. 343; 1993 (Reg. Sess., 1994), c. 697, ss. 1, 2; c. 761, s. 6; 1994, Ex. Sess., c. 24, s. 14(c); 1997-335, s. 1; 2001-212, s. 1; 2004-167, s. 4; 2004-199, s. 59; 2005-276, s. 6.37(q); 2007-291, s. 1; 2007-481, s. 1; 2010-132, s. 5; 2011-318, s. 2; 2014-100, s. 34.28(b); 2015-232, s. 1.4(a); 2015-264, s. 42(b); 2016-90, s. 13.5; 2018-5, s. 34.27(b); 2018-27, s. 4.5(c); 2018-42, s. 3(c); 2020-51, s. 1(c).) Subsection (d) Set Out Twice. - The first version of subsection (d) set out above is effective until December 31, 2024. The second version of subsection (d) set out above is effective December 31, 2024. Editor's Note. - Session Laws 2014-100, s. 34.28(d), made the amendment to subsection (c) of this section by Session Laws 2014-100, s. 34.28(b), effective July 1, 2015, and applicable to registration plates issued on or after that date. Session Laws 2015-232, s. 1.4(b), as amended by Session Laws 2018-27, s. 4.5(c), Session Laws 2018-42, s. 3(c), and Session Laws 2020-51, s. 1(c), made the last sentence of the next-to-last paragraph of subsection (d), as added by Session Laws 2015-232, s. 1.4(a), effective August 25, 2015, and expires December 31, 2024. Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.7, is a severability clause. Session Laws 2018-27, s. 5, is a severability clause. Session Laws 2020-3, s. 4.7(a)-(h), as amended by Session Laws 2020-97, ss. 3.15(a), 3.16(a), provides: "(a) Definition. - For purposes of this section, 'credential' means any of the following issued by the Division of Motor Vehicles: "(1) Drivers license. "(2) Learner's permit. "(3) Limited learner's permit. "(4) Limited provisional license. "(5) Full provisional license. "(6) Commercial drivers license. "(7) Commercial learner's permit. "(8) Temporary driving certificate. "(9) Special identification card. "(10) Handicapped placard. "(11) Vehicle registration. "(12) Temporary vehicle registration. "(13) Dealer license plate. "(14) Transporter plate. "(15) Loaner/Dealer 'LD' plate. "(16) Vehicle inspection authorization. "(17) Inspection station license. "(18) Inspection mechanic license. "(19) Transportation network company permit. "(20) Motor vehicle dealer license. "(21) Sales representative license. "(22) Manufacturer license. "(23) Distributor license. "(24) Wholesaler license. "(25) Driver training school license. "(26) Driver training school instructor license. "(27) Professional housemoving license. "(b) Extend Validity of Credentials. - Notwithstanding renewal, duration, or expiration provisions of G.S. 20-7 , 20-11, 20-37.6, 20-37.7, 20-37.13, 20-50, 20-66, 20-79, 20-79.02, 20-79.2, 20-183.4B, 20-183.4D, 20-280.3, 20-288, 20-324, and 20-359, or any other provision of law to the contrary, the Division of Motor Vehicles shall extend for a period of five months the validity of any credential that expires on or after March 1, 2020, and before August 1, 2020. The Division shall extend for a period of five months the validity of any credential listed in subdivisions (6), (7), (9), (10), and (18) of subsection (a) of this section that expires on or after March 1, 2020, and before the date 30 days after the date the Governor (i) rescinds Executive Order No. 116 or (ii) issues another executive order lifting restrictions on Division of Motor Vehicles functions. Notwithstanding G.S. 20-37.13 (h) and G.S. 20-37.13 A(a), the Division of Motor Vehicles is authorized to waive the requirement that commercial drivers license and commercial learner's permit holders have a medical examination and certification, as required by federal law, consistent with any waiver of medical qualifications standards issued by the Federal Motor Carrier Safety Administration. A credential extended under this section shall expire five months from the date it otherwise expires as prescribed by law prior to this section. However, the subsequent expiration of a credential extended under this section shall occur on the date prescribed by law prior to this section without regard to the extension. The Division shall notify individuals affected by an extension granted under this section, including information on new expiration dates and how the extension affects subsequent renewal and expiration dates. "(b1) Extension of Intrastate Medical Waivers. - Notwithstanding the limitation on duration of waivers in G.S. 20-37.13 A(b), the Division of Motor Vehicles may extend for up to five months the validity of a medical waiver issued by the Division under G.S. 20-37.13 A if the waiver expires on or after March 1, 2020, and before the date 30 days after the date the Governor (i) rescinds Executive Order No. 116 or (ii) issues another executive order lifting restrictions on Division of Motor Vehicles functions, and the Division's Medical Review Unit determines the extension is appropriate. "(c) Driving Eligibility Certificates. - Notwithstanding G.S. 20-11 (n)(3), a driving eligibility certificate dated on or after February 9, 2020, and before March 10, 2020, remains valid and may be accepted by the Division of Motor Vehicles to meet the requirements for a license or permit issued under G.S. 20-11 until 30 days after the date the Governor rescinds Executive Order No. 116 or the date the Division reopens all drivers license offices, whichever is earlier. "(d) Waive Penalties. - Notwithstanding any provision of law to the contrary, the Division shall waive any fines, fees, or penalties associated with failing to renew a credential during the period of time the credential is valid by extension under subsection (b) of this section. "(e) Motor Vehicle Taxes. - Notwithstanding any provision of law to the contrary, due dates for motor vehicle taxes that are tied to registration expiration under Article 22A of Chapter 105 of the General Statutes shall be extended to correspond with extended expiration dates under subsection (b) of this section. "(f) Validity by Extension a Defense. - A person may not be convicted or found responsible for any offense resulting from failure to renew a credential issued by the Division if, when tried for that offense, the person shows that the offense occurred during the period of time the credential is valid by extension under subsection (b) of this section. "(g) Report. - Within 30 days of the extensions made under subsection (b) of this section, the Division shall submit a report to the Joint Legislative Transportation Oversight Committee and the Fiscal Research Division detailing implementation of this section. "(h) Effective Date. - This section is effective retroactively to March 1, 2020, and applies to expirations occurring on or after that date." Session Laws 2020-3, s. 5, is a severability clause. Session Laws 2020-97, s. 4.5, is a severability clause. Effect of Amendments. - Session Laws 2010-132, s. 5, effective December 1, 2010, and applicable to offenses committed on or after that date, in the first paragraph in subsection (b), increased the maximum number of plates by 2 in the first four entries, and in the last entry, substituted "At least 8, but no more than 5 times the average number" for "At least 6, but no more than 4 times the average number"; added subdivisions (d)(5)d. and (d)(5)e.; in subdivision (e)(1), substituted "one hundred dollars ($100.00)" for "fifty dollars ($50.00)"; and in subdivision (e)(2), substituted "two hundred fifty dollars ($250.00)" for "two hundred dollars ($200.00)." Session Laws 2014-100, s. 34.28(b), inserted "or a 'First in Freedom' plate" at the end of the first sentence in subsection (c). See Editor's note for effective date and applicability. Session Laws 2015-232, s. 1.4(a), as amended by Session Laws 2018-27, s. 4.5(c), Session Laws 2018-42, s. 3(c), and Session Laws 2020-51, s. 1(c), added the last sentence of the next-to-last paragraph of subsection (d). For effective date and expiration, see editor's note. Session Laws 2015-264, s. 42(b), effective October 1, 2015, removed former designations (i) and (ii) and inserted "from" preceding "a third-party warranty" in the last sentence of the next-to-last paragraph of subsection (d). Session Laws 2016-90, s. 13.5, effective July 11, 2016, in subdivision (d)(5)f., substituted "an independent or franchised" for "a franchised." Session Laws 2018-5, s. 34.27(b), effective July 1, 2018, substituted "'First in Flight' plate, a 'First in Freedom' plate, or a 'National/State Mottos' plate" for "'First in Flight' plate or a 'First in Freedom' plate" in the first paragraph of subsection (c).