§ 20-79.1 — Use of temporary registration plates or markers by purchasers of motor vehicles in lieu of dealers' plates

North Carolina § 20-79.1

• Jurisdiction: North Carolina
• Ch. 20: Motor Vehicles
• Art. 3: Motor Vehicle Act of 1937

Text

(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.
(b) Every dealer who has made application for temporary registration plates or markers shall maintain in permanent form a record of all temporary registration plates or markers delivered to him, and shall also maintain in permanent form a record of all temporary registration plates or markers issued by him, and in addition thereto, shall maintain in permanent form a record of any other information pertaining to the receipt or the issuance of temporary registration plates or markers that the Division may require. Each record shall be kept for a period of at least one year from the date of entry of such record. Every dealer shall allow full and free access to such records during regular business hours, to duly authorized representatives of the Division and to peace officers.
(c) Every dealer who issues temporary registration plates or markers shall also issue a temporary registration certificate upon a form furnished by the Division and deliver it with the registration plate or marker to the owner.
(d) A dealer shall:
(1) Not issue, assign, transfer, or deliver temporary registration plates or markers to anyone other than a bona fide purchaser or owner of a vehicle which he has sold.
(2) Not issue a temporary registration plate or marker without first obtaining from the purchaser or owner a written application for titling and registration of the vehicle and the applicable fees.
(3) Within 60 days of the issuance of a temporary registration plate or marker, mail or deliver the application and fees to the Division or deliver the application and fees to a local license agency for processing. Delivery need not be made if the contract for sale has been rescinded by all parties to the contract.
(4) Not deliver a temporary registration plate to anyone purchasing a vehicle that has an unexpired registration plate that is to be transferred to the purchaser.
(5) Not lend to anyone, or use on any vehicle that he may own, any temporary registration plates or markers.
A dealer may issue temporary markers, without obtaining the written application for titling and registration or collecting the applicable fees, to nonresidents for the purpose of removing the vehicle from the State.
(e) Every dealer who issues temporary plates or markers shall write clearly and indelibly on the face of the temporary registration plate or marker:
(1) The dates of issuance and expiration;
(2) The make, motor number, and serial numbers of the vehicle; and
(3) Any other information that the Division may require.
It shall be unlawful for any person to issue a temporary registration plate or marker containing any misstatement of fact or to knowingly write any false information on the face of the plate or marker.
(f) If the Division finds that the provisions of this section or the directions of the Division are not being complied with by the dealer, the Division may suspend, after a hearing, the right of a dealer to issue temporary registration plates or markers. Nothing in this section shall be deemed to require a dealer to collect or receive property taxes from any person.
(g) Every person to whom temporary registration plates or markers have been issued shall permanently destroy such temporary registration plates or markers immediately upon receiving the limited registration plates or the annual registration plates from the Division: Provided, that if the limited registration plates or the annual registration plates are not received within 60 days of the issuance of the temporary registration plates or markers, the owner shall, notwithstanding, immediately upon the expiration of such 60-day period, permanently destroy the temporary registration plates or markers.
(h) Temporary registration plates or markers shall expire and become void upon the receipt of the limited registration plates or the annual registration plates from the Division, or upon the rescission of a contract to purchase a motor vehicle, or upon the expiration of 60 days from the date of issuance, depending upon whichever event shall first occur. No refund or credit or fees paid by dealers to the Division for temporary registration plates or markers shall be allowed, except in the event that the Division discontinues the issuance of temporary registration plates or markers or unless the dealer discontinues business. In this event the unissued registration plates or markers with the unissued registration certificates shall be returned to the Division and the dealer may petition for a refund. Upon the expiration of the 60 days from the date of issuance, a second 60-day temporary registration plate or marker may be issued by the dealer upon showing the vehicle has been sold or leased, and that the dealer, having used reasonable diligence, is unable to obtain the vehicle's statement of origin or certificate of title so that the lien may be perfected. For purposes of this subsection, a dealer shall be considered unable to obtain the vehicle's statement of origin or certificate of title if the statement of origin or certificate of title either (i) has not been delivered to the dealer or (ii) was lost or misplaced.
(i) A temporary registration plate or marker may be used on the vehicle for which issued only and may not be transferred, loaned, or assigned to another. In the event a temporary registration plate or marker or temporary registration certificate is lost or stolen, the owner shall permanently destroy the remaining plate or marker or certificate and no operation of the vehicle for which the lost or stolen registration certificate, registration plate or marker has been issued shall be made on the highways until the regular license plate is received and attached thereto.
(j) The Commissioner of Motor Vehicles shall have the power to make such rules and regulations, not inconsistent herewith, as he shall deem necessary for the purpose of carrying out the provisions of this section.
(k) The provisions of G.S. 20-63, 20-71, 20-110 and 20-111 shall apply in like manner to temporary registration plates or markers as is applicable to nontemporary plates.
(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)(1). 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. If the Division enters into agreements with commission contractors under this subsection, the Division shall make every effort to enter into agreements with commission contractors across all geographic regions of the State in order to make temporary registration plates accessible to all dealers. (1957, c. 246, s. 1; 1963, c. 552, s. 8; 1975, c. 716, s. 5; 1985, c. 95; c. 263; 1997-327, ss. 1, 2; 2000-182, s. 5; 2007-471, s. 1; 2009-445, s. 25(a); 2010-95, s. 22(d); 2013-414, s. 70(c); 2018-42, ss. 2(e), 4; 2018-145, s. 4; 2019-181, s. 5(d); 2020-77, ss. 2, 4(a); 2024-30, s. 14(a).)
§ 20-79.1A. Limited registration plates.
(a) Eligibility. - A limited registration plate is issuable to any of the following:
(1) A person who applies, either directly or through a dealer licensed under Article 12 of this Chapter, for a title to a motor vehicle and a registration plate for the vehicle and who submits payment for the applicable title and registration fees but does not submit payment for any municipal corporation property taxes on the vehicle. A person who submits payment for municipal corporation property taxes receives an annual registration plate.
(2) A person who applies for a plate for a vehicle that was previously registered with the Division but whose registration has not been current for at least a year because the plate for the vehicle was surrendered or the vehicle's registration expired over a year ago.
(b) Form and Authorization. - A limited registration plate must be clearly and visibly designated as "temporary." The plate expires on the last day of the second month following the date of application of the limited registration plate. The plate may be used only on the vehicle for which it is issued and may not be transferred, loaned, or assigned to another. If the plate is lost or stolen, the vehicle for which the plate was issued may not be operated on a highway until a replacement limited registration plate or a regular license plate is received and attached to the vehicle.
(c) Registration Certificate. - The Division is not required to issue a registration certificate for a limited registration plate. A combined tax and registration notice issued under G.S. 105-330.5 serves as the registration certificate for the plate. (2007-471, s. 2; 2009-445, ss. 24(b), 25(a); 2010-95, ss. 22(c), (d); 2013-414, s. 70(b), (c); 2014-3, s. 14.24.)
§ 20-79.1B. Print-on-demand temporary registration plates.
(a) Implementation. - No later than January 1, 2025, the Division shall implement a statewide print-on-demand temporary registration plate system for on-demand printing of temporary registration plates with vehicle owner information electronically associated and transferred to the Division as required by this Chapter. Plates issued through the print-on-demand temporary registration plate system implemented under this section are in lieu of temporary plates issued by dealers under G.S. 20-79.1 and temporary registration plates issued by commission contractors under G.S. 20-50(b) but are otherwise subject to all conditions and limitations applicable to temporary registration plates set forth in this Article. The Division shall contract with a qualified vendor or vendors after consultation with the North Carolina Automobile Dealers Association and the Carolinas Independent Automobile Dealers Association to develop and implement this statewide print-on-demand temporary registration plate system.
(b) Minimum Standards for System. - When contracting with a qualified vendor or vendors to implement the system required in subsection (a) of this section, the Division shall set the following minimum standards:
(1) The Division shall issue a competitive request for proposal to assess the qualifications of any vendor or vendors responsible for the establishment and ongoing support of the statewide print-on-demand temporary registration plate system. The Division may also reserve the right to receive input regarding specifications for the print-on-demand temporary registration plate system from parties that do not respond to a request for proposal to establish and operate a print-on-demand temporary registration plate system. The Division shall select at least two vendors.
(2) Any contract entered into with a vendor or vendors shall include no costs or charges payable by the Division to the vendor or vendors. The vendor or vendors shall reimburse the Division for documented reasonable implementation costs directly associated with the establishment of the statewide print-on-demand temporary registration plate system.
(3) Upon implementation of the print-on-demand temporary registration plate system, the qualified vendor or vendors may charge participating motor vehicle dealers or their agents a fee for each temporary registration plate printed and registered with the Division. The print-on-demand temporary registration plate fee shall be consistent with market pricing in an amount not to exceed fifteen dollars ($15.00) for costs associated with the development and ongoing administration of the print-on-demand temporary registration plate system. The qualified vendor or vendors shall not charge motor vehicle dealers or their agents any additional fee for the printing and registration of a print-on-demand temporary registration plate. To recover their costs, participating motor vehicle dealers or their agents may charge the purchaser of a motor vehicle or lessee of an automotive lease an amount equal to the print-on-demand temporary registration plate fee plus a fee in an amount not to exceed fifteen dollars ($15.00) for each print-on-demand temporary registration plate printed and registered with the Division.
(4) The print-on-demand temporary registration plate system must include the following elements:
a. A design and layout for the print-on-demand temporary registration plate established by the Division and of a quality as to resist deterioration or fading from exposure to the elements during the period for which display is required.
b. The ability of motor vehicle dealers to directly connect to the system in order to issue print-on-demand temporary registration plates to the owner or lessee of a motor vehicle that will be registered in this State or another state, including a web-based option for motor vehicle dealers who do not utilize an online vehicle registration vendor to complete and file Division required documents related to motor vehicle titling and registration.
c. The ability of commission contractors to directly connect to the system in order to issue print-on-demand temporary registration plates to the owner or lessee of a motor vehicle.
d. Each print-on-demand temporary registration plate must contain identifying information for the motor vehicle, as determined by the Division, to include the date of issue, the date of expiration, the name of the issuing entity, and unique identifying information for the plate that will be assigned by the Division.
e. The ability for identifying information on a print-on-demand temporary registration plate and vehicle owner information to be transmitted to the Division upon issuance of the plate.
f. The ability to implement and maintain a distribution procedure for print-on-demand temporary registration plates in accordance with subsections (c) and (d) of this section.
(c) Distribution of Print-on-Demand Temporary Registration Plate Materials. - In order to assist the Division with the administration and security of the print-on-demand temporary registration system, the system shall include a procedure for a motor vehicle dealer to obtain print-on-demand temporary registration plate materials from a registered distributor. A commission contractor may obtain print-on-demand temporary registration plate materials from a registered distributor or the Division. A registered distributor may charge a fee for distribution of print-on-demand temporary registration plate materials not to exceed ten dollars ($10.00) per print-on-demand temporary registration plate.
(d) Print-on-Demand Temporary Registration Plate Materials Distributors. - The Division shall register two print-on-demand temporary registration plate materials distributors in the State. One registered distributor shall be a trade association composed of a minimum of 400 new motor vehicle dealers located in this State. One registered distributor shall be a trade association comprised of a minimum of 400 used motor vehicle dealers located in this State.
(e) Experience Required. - Qualified vendors shall have experience in directly providing electronic solutions to State motor vehicle departments or agencies.
(f) Mandatory Participation. - Beginning on October 1, 2025, all motor vehicle dealers and other entities that issue at least five temporary registration plates annually shall utilize exclusively the print-on-demand temporary registration plate system for the issuance of all temporary registration plates to vehicle owners or lessees.
(g) Definition. - For purposes of this section, print-on-demand temporary registration plate system means a computerized system that allows the on-demand and on-site printing of required vehicle registration and other information on a temporary registration plate by the issuer of the plate and allows required information about the vehicle owner or lessee to whom the temporary plate has been issued to be transferred to the Division in electronic format. (2024-30, s. 8(a).)