AN ACT to allow the division of motor vehicles to refuse to register a vehicle if the VEHICLE is not in compliance with the inspections REQUIREments, to require proof of FINANCIAL responsibility for a three‑day trip permit, and to make technical changes to the inspection program statutes.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 20‑54(6) reads as rewritten:
"(6)	The vehicle is not in compliance with the inspection requirements of Part 2 of Article 3A of this Chapter or a civil penalty assessed as a result of the failure of the vehicle to comply with that Part has not been paid."
SECTION 2.  G.S. 20‑183.4C reads as rewritten:
"§ 20‑183.4C.  When a vehicle must be inspected; three‑day trip permit.
(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.
(1a)	A new motor vehicle dealer who is also licensed pursuant to this Article may, notwithstanding subdivision (1) of this section, examine the safety and emissions control devices on a new motor vehicle and perform such services necessary to ensure the motor vehicle conforms to the required specifications established by the manufacturer and contained in its predelivery check list. The completion of the predelivery inspection procedure required or recommended by the manufacturer on a new motor vehicle shall constitute the inspection required by subdivision (1) of this section. For the purposes of this subdivision, the date of inspection shall be deemed to be the date of the sale of the motor vehicle to a purchaser.
(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.
(3)	Repealed by Session Law 2007‑503, s. 5, effective October 1, 2008.
(4)	Except as authorized by the Commissioner for a single period of time not to exceed 12 months from the initial date of registration, a new or used vehicle acquired by a resident of this State from outside the State must be inspected before the vehicle is registered with the Division.
(5)	Except as authorized by the Commissioner for a single period of time not to exceed 12 months from the initial date of registration, 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 before the vehicle is registered with the Division.
(5a)	Repealed by Session Law 2007‑503, s. 5, effective October 1, 2008.
(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 before the vehicle is registered with the Division unless it has received a passing inspection within the previous 12 months.
(10)	An unregistered vehicle must be inspected before the vehicle is registered with the Division unless it has received a passing inspection within the previous 12 months.
(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.
(b)	Permit. – The Division may issue a three‑day trip permit to a person that authorizes the person to drive a vehicle whose inspection authorization or registration has expired. The permit may only be issued when the person has furnished proof of financial responsibility. The permit must describe the vehicle whose inspection authorization or registration has expired. The permit authorizes the person to drive the described vehicle only from the place the vehicle is parked to an inspection station, repair shop, or Division or contract agent registration office.
The Division may issue a 10‑day temporary permit to a person that authorizes the person to drive a vehicle that failed to pass the emissions inspection. The permit must describe the vehicle that failed to pass inspection and the date that it failed to pass inspection.
(c)	Exemption. – The Division may issue a temporary exemption from the inspection requirements of this Article for any vehicle that has been determined by the Division to be principally garaged, as defined under G.S. 58‑37‑1(11), in this State and is primarily operated outside a county subject to emissions inspection requirements or outside of this State."
SECTION 3.  G.S. 20‑183.7(c) and (d) read as rewritten:
"(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 Inspection 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
	Electronic	Safety
	Authorization	Electronic		Authorization
Highway Fund	.55	.55
Inspection 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)	Inspection Program Account. – The Inspection 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 inspection and maintenance program."
SECTION 4.  G.S. 20‑183.8A reads as rewritten:
"§ 20‑183.8A.  Civil penalties against motorists for emissions violations; waiver.
(a)	Civil Penalties. – The Division must assess a civil penalty against a person who owns or leases a vehicle that is subject to an inspection and who engages in any of the emissions violations set out in this subsection. As provided in G.S. 20‑54, the registration of a vehicle may not be renewed until a penalty imposed under this subsection has been paid. The civil penalties and violations are as follows:
(1)	Fifty dollars ($50.00) for failure to have the vehicle inspected within four months after it is required to be inspected under this Part.
(2)	Two hundred fifty dollars ($250.00) for instructing or allowing 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)	Two hundred fifty dollars ($250.00) for incorrectly stating the vehicle's county of registration to avoid having an emissions inspection of the vehicle.
(b)	Waiver. – The Division must waive the civil penalty assessed under subdivision (a)(1) of this section against a person who establishes the following:
(1)	The person was continuously out of the State on active military duty from the date the electronic authorization expired to the date the four‑month grace period expired.
(2)	No person operated the vehicle from the date the electronic authorization expired to the date the four‑month grace period expired.
(3)	The person obtained a current electronic authorization within 30 days after returning to the State."
SECTION 5.  G.S. 20‑183.8 is amended by adding a new subsection to read:
"(b1)	A person who performs a safety inspection without a license, as required under G.S. 20‑183.4, or an emissions inspection without a license, as required under G.S. 20‑183.4A, is guilty of a Class 3 misdemeanor."
SECTION 6.  Section 5 of this act becomes effective December 1, 2009, and applies to offenses committed on or after that date. The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 16th day of July, 2009.

	s/	 Walter H. Dalton
	 President of the Senate

	s/	 Joe Hackney
	 Speaker of the House of Representatives

	s/	 Beverly E. Perdue
	 Governor

Approved 5:45 p.m. this 17th day of July, 2009