GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2015
S 2
SENATE BILL 446
House Committee Substitute Favorable 7/28/15
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Short Title: Dealer Loaners/Unmanned Aircraft/Brunswick Co. |
(Public) |
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Sponsors: |
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Referred to: |
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March 26, 2015
A BILL TO BE ENTITLED
AN ACT to PROVIDE FOR THE UNIFORM TREATMENT OF FRANCHISED DEALER LOANER VEHICLES; to clarify that agents or agencies of the state or a political subdivision of the state shall have authority to procure and operate unmanned aircraft systems upon approval of the state chief information officer and to modify the regulation of unmanned aircraft systems to conform to faa guidelines; and authorizing brunswick county to regulate navigable waters within its boundaries.
The General Assembly of North Carolina enacts:
UNIFORM TREATMENT OF FRANCHISED DEALER LOANER VEHICLES
SECTION 1. G.S. 20‑4.01(48a) reads as rewritten:
"(48a) U‑drive‑it vehicles. – The following
vehicles that are either rented to a person, to be operated by that person:person,
or loaned by a franchised motor vehicle dealer, with or without charge, to
customers of that dealer who are having a vehicle serviced or repaired by the
dealer:
a. A private passenger vehicle other than the following:
1. A private passenger vehicle of nine‑passenger capacity or less that is rented for a term of one year or more.
2. A private passenger vehicle that is rented to public school authorities for driver‑training instruction.
b. A property‑hauling vehicle under 7,000 pounds that does not haul products for hire and that is rented for a term of less than one year.
c. Motorcycles."
SECTION 2. G.S. 20‑286(10), as amended by Section 8 of S.L. 2015‑125, reads as rewritten:
"(10) Motor vehicle. – Any motor propelled vehicle, trailer or semitrailer, required to be registered under the laws of this State. This term does not include mopeds, as that term is defined in G.S. 20‑4.01.
a. "New motor vehicle" means a motor vehicle that has never been the subject of a completed, successful, or conditional sale that was subsequently approved other than between new motor vehicle dealers, or between a manufacturer and a new motor vehicle dealer of the same franchise. For purposes of this subdivision, the fact that a new motor vehicle dealer may use a new motor vehicle as a service loaner or use a new motor vehicle for demonstration purposes does not render a new motor vehicle a used motor vehicle, notwithstanding the commencement of the manufacturer's original warranty as a result of the franchised dealer's use of the vehicle for demonstration or loaner purposes or the dealer's receipt of incentive or warranty compensation or other reimbursement or consideration from a manufacturer, factory branch, distributor, distributor branch, or third‑party warranty, maintenance or service contract company relating to the use of a vehicle as a demonstrator or service loaner.
b. "Used motor vehicle" means a motor vehicle other than described in paragraph (10)a above."
SECTION 3. Article 3 of Chapter 20 of the General Statutes is amended by adding a new section to read:
"§ 20‑79.02. Loaner/Dealer "LD" License Plate for Franchised Dealer Loaner Vehicles.
(a) Application. – A franchised motor vehicle dealer, as defined in G.S.20‑286(8b) and licensed in accordance with Article 12 of this Chapter, who agrees, either with or without charge, to loan one or more new motor vehicles owned by the dealer to customers of the dealer who are having their vehicles serviced by the dealer, may obtain a Loaner/Dealer "LD" license plate for those vehicles by filing an application with the Division and paying the required fee. Receipt by a franchised motor vehicle dealer of compensation, or other consideration from a manufacturer, distributor, manufacturer branch, distributor branch, third‑party warranty, maintenance or service contract company, or other third‑party source related to a vehicle, including, but not limited to, incentive compensation or reimbursement for maintenance, repairs, or other work performed on the vehicle, shall not prevent the franchised motor vehicle dealer from receiving an LD license plate for the vehicle as provided by this subsection. An application must be filed on a form provided by the Division and contain the information required by the Division. The annual fee for an LD license plate is two hundred dollars ($200.00) per 12 calendar months.
(b) Number of Plates. – There shall be no limit on the number of LD license plates a franchised motor vehicle dealer may be issued, provided that the applicable annual fee for each plate is paid.
(c) Form and Duration. – An LD 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" or "First in Freedom" plate. An LD license plate must have a distinguishing symbol identifying the plate as an LD license plate. Subject to the limitations contained in this section, an LD license plate may continue in existence perpetually and may be transferred to other vehicles in the loaner fleet of the dealer when the vehicle on which the LD license plate is displayed has been sold or leased to a third party or otherwise removed from the loaner fleet of the dealer.
(d) Restrictions on Use. – An LD license plate may be displayed only on a motor vehicle that meets all of the following requirements:
(1) Is part of the inventory of a franchised motor vehicle dealer.
(2) Is not consigned to the franchised motor vehicle dealer or affiliate.
(3) Is covered by liability insurance that meets the requirements of Article 9A of this Chapter; provided, however, that nothing contained herein shall prevent or prohibit a franchised motor vehicle dealer from contractually shifting the risk of loss and insurance requirements contained in Article 9A of this Chapter to the individuals or entities to which the vehicles are loaned.
(4) Is not used by the franchised motor vehicle dealer in another business in which the dealer is engaged.
(5) Is driven on a highway by a customer of the franchised motor vehicle dealer who is having a vehicle serviced or repaired by the dealer.
(6) A copy of the registration card for the LD license plate issued to the franchised motor vehicle 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 franchised motor vehicle 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. A copy of the assignment by the franchised motor vehicle dealer shall be carried by the person operating the motor vehicle.
(7) A vehicle displaying an LD license plate may be driven by anyone who is licensed to drive the type of motor vehicle for which the plate is issued.
(8) An LD license plate may be displayed only on the motor vehicle for which it has been assigned by the franchised motor vehicle dealer.
(9) The franchised motor vehicle dealer to whom LD license plates have been issued shall be responsible for completing and maintaining documentation prescribed by the Division relating to the assignment of each motor vehicle on which an LD license plate is displayed to customers of the franchised dealer.
(e) Sanctions. – The following sanctions apply when a motor vehicle displaying an LD license plate is driven in violation of the restrictions on the use of the plate:
(1) The individual driving the motor vehicle is responsible for an infraction and is subject to a penalty of one hundred dollars ($100.00).
(2) The franchised motor vehicle dealer to whom the plate is issued is subject to an infraction and is subject to a penalty of two hundred fifty dollars ($250.00).
(3) The Division may rescind all LD license plates issued to the franchised motor vehicle dealer for knowing repeated violations of this section.
(f) Transfer of Dealer Registration. – No change in the name of a firm, partnership, or corporation shall be considered a new business and the franchised motor vehicle dealer's LD plates may continue to be used.
(g) Penalties. – The clear proceeds of all civil penalties, civil forfeitures, and civil fines that are collected pursuant to this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.
(h) Applicability. – Prior to January 1, 2019, a new motor vehicle dealer's use of LD license plates on loaner vehicles shall be voluntary. Any new motor vehicle that a new motor vehicle dealer places into service as a loaner vehicle on or after January 1, 2019, shall display LD license plates as provided in this subsection during the period of time the vehicle is in use as a service loaner vehicle, in the event either:
(1) The new motor vehicle dealer is receiving incentive or warranty compensation from a manufacturer, factory branch, distributor, or distributor branch for the use of the vehicle as a service loaner; or
(2) The new motor vehicle dealer is receiving a fee or other compensation from the dealer's customers for the use of the vehicle as a service loaner."
SECTION 4. G.S. 20‑79(d) reads as rewritten:
"(d) Restrictions on Use. – A dealer license plate may be displayed only on a motor vehicle that meets all of the following requirements:
(1) Is part of the inventory of the dealer.
(2) Is not consigned to the dealer.
(3) Is covered by liability insurance that meets the requirements of Article 9A of this Chapter.
(4) Is not used by the dealer in another business in which the dealer is engaged.
(5) Is driven on a highway by a person who meets one of the following descriptions:
a. Has a demonstration permit to test‑drive the motor vehicle and carries the demonstration permit while driving the motor vehicle.
b. Is an officer or sales representative of the dealer and is driving the vehicle for a business purpose of the dealer.
c. Is an employee of the dealer and is driving the vehicle in the course of employment.
d. 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.
e. 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.
f. Is an officer, sales representative, or other employee of a franchised motor vehicle dealer or is an immediate family member of an officer, sales representative, or other employee of a franchised motor vehicle dealer.
(6) 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.
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 demonstration permit may be issued in accordance with this subsection by a franchised motor vehicle dealer who loans a vehicle without any additional charge, to customers of the dealer who are having a vehicle serviced or repaired by the dealer. A franchised motor vehicle dealer shall not be prohibited from using a demonstration permit pursuant to this subdivision 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 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."
UNMANNED AIRCRAFT SYSTEMS
SECTION 5. Section 7.16(e) of S.L. 2013‑360, as amended by Section 7.11(a) of S.L. 2014‑100, reads as rewritten:
(1) "Unmanned aircraft" means an aircraft that is operated without the possibility of human intervention from within or on the aircraft.
(2) "Unmanned aircraft system" means an unmanned aircraft and associated elements, including communication links and components that control the unmanned aircraft that are required for the pilot in command to operate safely and efficiently in the national airspace system."
SECTION 6. Section 34.30(j) of S.L. 2014‑100 reads as rewritten:
"SECTION 34.30.(j) No Except as
authorized under Section 7.16(e) of S.L. 2013‑360, as amended by Section
7.11(a) of S.L. 2014‑100, no operation of unmanned aircraft systems
by agents or agencies of the State, or agents or agencies of State or
a political subdivision of the State, State shall be
authorized in this State until the knowledge and skills test required by
G.S. 63‑95, as enacted in subsection (g) of this section, has been
implemented.
No operation of unmanned aircraft systems for commercial purposes shall be authorized in this State until the FAA has authorized commercial operations and the licensing system required by G.S. 63‑96, as enacted in subsection (g) of this section, has been implemented."
SECTION 7. G.S. 63‑95(b) reads as rewritten:
"(b) The Division shall develop a knowledge and
skills test for operating an unmanned aircraft system that complies with
all applicable State and federal regulations and shall provide for
administration of the test. The test shall ensure that the operator of an
unmanned aircraft system is knowledgeable of the State statutes and regulations
regarding the operation of unmanned aircraft systems. The Division may
permit a person, including an agency of this State, an agency of a political
subdivision of this State, an employer, or a private training facility, to
administer the test developed pursuant to this subsection, provided the test is
the same as that administered by the Division and complies with all applicable
State and federal regulations."
SECTION 8. G.S. 63‑96 reads as rewritten:
"§ 63‑96.
License Permit required for commercial operation of unmanned
aircraft systems.
(a) No person shall operate an unmanned aircraft
system, as defined in G.S. 15A‑300.1, in this State for commercial
purposes unless the person is in possession of a license permit issued
by the Division valid for the unmanned aircraft system being operated.
Application for such license the permit shall be made in the
manner provided by the Division. Unless suspended or revoked, the license permit
shall be effective for a period to be established by the Division not
exceeding eight years.
(b) No person shall be issued a license permit
under this section unless all of the following apply:
(1) The person is at least 18 17 years of
age.
(2) The person possesses a valid drivers license issued by any state or territory of the United States or the District of Columbia.
(3) The person has passed the knowledge and skills test
for operating an unmanned aircraft system as prescribed in G.S. 63‑95(b).
(4) The person has satisfied all other applicable requirements of this Article or federal regulation.
(c) A license permit to operate an
unmanned aircraft system for commercial purposes shall not be issued to a
person while the person's license or permit to operate an unmanned
aircraft system is suspended, revoked, or cancelled in any state.
(d) The Division shall develop and administer a
program that complies with all applicable federal regulations to license
issue permits to operators of unmanned aircraft systems for
commercial purposes. The program must include the following components:
(1) A system for classifying unmanned aircraft systems based on characteristics determined to be appropriate by the Division.
(2) A fee structure for licenses.permits.
(3) A license permit application process.
(4) Technical guidance for complying with program requirements.
(5) Criteria under which the Division may suspend or
revoke a license.permit.
(6) Criteria under which the Division may waive licensure
permitting requirements for applicants currently holding a valid
license or permit to operate unmanned aircraft systems issued by another
state or territory of the United States, the District of Columbia, or the
United States.
(7) A designation of the geographic area within which a
licensee permittee shall be authorized to operate an unmanned
aircraft system.
(8) Requirements pertaining to the collection, use, and
retention of data by licensees permittees obtained through the
operation of unmanned aircraft systems, to be established in consultation with
the State Chief Information Officer.
(9) Requirements for the marking of each unmanned
aircraft system operated pursuant to a license permit issued
under this section sufficient to permit allow identification of
the owner of the system and the person licensed issued a permit to
operate it.
(10) A system for providing agencies that conduct other
operations within regulated airspace with the identity and contact information
of licensees permittees and the geographic areas within which the
licensee permittee is permitted authorized to
operate an unmanned aircraft system.
(e) A person who operates an unmanned aircraft system
for commercial purposes other than as permitted authorized under
this section shall be guilty of a Class 1 misdemeanor.
(f) The Division may issue rules and regulations to implement the provisions of this section."
SECTION 9. Prior to the implementation of the knowledge test and permitting process required by G.S. 63‑96, any person authorized by the FAA for commercial operation of an unmanned aircraft system in this State shall not be in violation of that statute, provided that they make application for a State permit for commercial operation within 60 days of the full implementation of the permitting process and are issued a State commercial operation permit in due course.
BRUNSWICK COUNTY TO REGULATE NAVIGABLE WATERS WITHIN ITS BOUNDARIES
SECTION 10.(a) The Board of Commissioners of Brunswick County may adopt and enforce ordinances for the navigable waters within the county's jurisdictional boundaries which (i) relate to the operation of boats and vessels, including restrictions concerning the types of activities conducted on the navigable waters within the jurisdictional limits of the county; (ii) restrict the anchoring of boats and vessels as to location; and (iii) generally, regulate the anchoring of vessels within its navigable waters. The Board may make all reasonable rules and regulations as it deems necessary for the safe and proper use of the navigable waters within the jurisdictional limits of the county for the occupants of boats and vessels, swimmers, fishermen, and others using the navigable waters and may provide for enforcement of ordinances adopted by the county under this section in accordance with G.S. 153A‑123.
SECTION 10.(b) If any rules or regulations of the North Carolina Wildlife Commission, the Division of Marine Fisheries in the Department of Environment and Natural Resources, the Marine Fisheries Commission, the U.S. Coast Guard, or the U.S. Army Corps of Engineers expressly conflict with ordinances adopted by the county under the authority granted by this section, then the State or federal rule or regulation shall prevail over the county ordinance to the extent of the conflict.
SECTION 10.(c) Brunswick County may appropriate funds to carry out the power and authority granted by this section.
SECTION 10.(d) If any part or parts of this section shall be held to be unconstitutional, the unconstitutionality shall not affect the validity of the remaining parts of this section.
EFFECTIVE DATE
SECTION 11. Section 3 of this act becomes effective July 1, 2016. The remainder of this act is effective when it becomes law. Sections 1 and 4 of this act expire December 31, 2018.