§ 20-79. Dealer license plates.
Part 5. Issuance of SpecialPlates.
§ 20‑79. Dealer licenseplates.
(a) How to Get a DealerPlate. The Division may issue a person licensed under Article 12 of thisChapter the appropriate classification of dealer license plate. A personeligible for a dealer license plate may obtain one by filing an applicationwith the Division and paying the required fee. An application must be filed ona form provided by the Division. The required fee is the amount set by G.S. 20‑87(7).
(b) Number of Plates. A dealer who was licensed under Article 12 of this Chapter for the previous 12‑monthperiod ending December 31 may obtain the number of dealer license platesallowed by the following table; the number allowed is based on the number ofmotor vehicles the dealer sold during the relevant 12‑month period andthe average number of qualifying sales representatives the dealer employedduring that same 12‑month period:
VehiclesSold In Relevant MaximumNumber of Plates
12‑MonthPeriod
Fewerthan 12 1
Atleast 12 but less than 25 4
Atleast 25 but less than 37 5
Atleast 37 but less than 49 6
49 or more Atleast 6, but no more than 4 times the average number of qualifying salesrepresentatives employed by the dealer during the relevant 12‑monthperiod.
A dealer who was not licensedunder Article 12 of this Chapter for part or all of the previous 12‑monthperiod ending December 31 may obtain the number of dealer license plates thatequals four times the number of qualifying sales representatives employed bythe dealer on the date the dealer files the application. A "qualifyingsales representative" is a sales representative who works for the dealerat least 25 hours a week on a regular basis and is compensated by the dealerfor this work.
A dealer who sold fewer than49 motor vehicles the previous 12‑month period ending December 31 but hassold at least that number since January 1 may apply for additional dealerlicense plates at any time. The maximum number of dealer license plates thedealer may obtain is the number the dealer could have obtained if the dealerhad sold at least 49 motor vehicles in the previous 12‑month periodending December 31.
A dealer who applies for adealer license plate must certify to the Division the number of motor vehiclesthe dealer sold in the relevant period. Making a material misstatement in anapplication 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 thealteration and sale of specialty vehicles may apply for up to two dealer platesin addition to the number of dealer plates that the dealer would otherwise beentitled to under this section.
This subsection does not applyto manufacturers licensed under Article 12 of this Chapter.
(c) Form and Duration. A dealer license plate is subject to G.S. 20‑63, except for therequirement that the plate display the registration number of a motor vehicleand the requirement that the plate be a "First in Flight" plate. Adealer license plate must have a distinguishing symbol identifying the plate asa dealer license plate. The symbol may vary depending upon the classificationof dealer license plate issued. The Division must provide suitably reducedsized license plates for motorcycle dealers and manufacturers.
A dealer license plate isissued for a period of one year. The Division shall vary the expiration datesof dealer registration renewals so that an approximately equal number expiresat the end of each month, quarter, or other period consisting of one or moremonths. A dealer license plate may be transferred from one vehicle to another.When the Division issues a dealer plate, it may issue a registration thatexpires at the end of any monthly interval. When one of the following occurs, adealer must surrender to the Division all dealer license plates issued to thedealer:
(1) The dealersurrenders the license issued to the dealer under Article 12 of this Chapter.
(2) The Divisionsuspends or revokes the license issued to the dealer under Article 12 of thisChapter.
(3) The Divisionrescinds the dealer license plates because of a violation of the restrictionson the use of a dealer license plate.
To obtain a dealer licenseplate after it has been surrendered, the dealer must file a new application fora dealer license plate and pay the required fee for the plate.
(d) Restrictions onUse. A dealer license plate may be displayed only on a motor vehicle thatmeets all of the following requirements:
(1) Is part of theinventory of the dealer.
(2) Is not consigned tothe dealer.
(3) Is covered byliability insurance that meets the requirements of Article 9A of this Chapter.
(4) Is not used by thedealer in another business in which the dealer is engaged.
(5) Is driven on ahighway by a person who meets one of the following descriptions:
a. Has a demonstrationpermit to test‑drive the motor vehicle and carries the demonstrationpermit while driving the motor vehicle.
b. Is an officer orsales representative of the dealer and is driving the vehicle for a businesspurpose of the dealer.
c. Is an employee ofthe dealer and is driving the vehicle in the course of employment.
(6) A copy of theregistration card for the dealer plate issued to the dealer is carried by theperson operating the motor vehicle or, if the person is operating the motorvehicle in this State, the registration card is maintained on file at thedealer's address listed on the registration card, and the registration cardmust be able to be produced within 24 hours upon request of any law enforcementofficer.
A dealer may issue ademonstration permit for a motor vehicle to a person licensed to drive thattype of motor vehicle. A demonstration permit authorizes each person named inthe permit to drive the motor vehicle described in the permit for up to 96 hoursafter the time the permit is issued. A dealer may, for good cause, renew ademonstration 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 personexcept as authorized by this subsection.
(e) Sanctions. Thefollowing sanctions apply when a motor vehicle displaying a dealer licenseplate is driven in violation of the restrictions on the use of the plate:
(1) The individualdriving the motor vehicle is responsible for an infraction and is subject to apenalty of fifty dollars ($50.00).
(2) The dealer to whomthe plate is issued is subject to a civil penalty imposed by the Division oftwo hundred dollars ($200.00).
(3) The Division mayrescind all dealer license plates issued to the dealer whose plate wasdisplayed on the motor vehicle.
A penalty imposed undersubdivision (1) of this subsection is payable to the county where theinfraction occurred, as required by G.S. 14‑3.1. A civil penalty imposedunder subdivision (2) of this subsection shall be credited to the Highway Fundas nontax revenue.
(f) Transfer of DealerRegistration. 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 thefirm, shall be considered a new business; but if any one or more of thepartners remain in the firm, or if there is change in ownership of less than amajority of the stock, if a corporation, the business shall be regarded ascontinuing and the dealers' plates originally issued may continue to be used.
(g) Penalties. Theclear proceeds of all civil penalties, civil forfeitures, and civil fines thatare collected by the Department of Transportation pursuant to this sectionshall be remitted to the Civil Penalty and Forfeiture Fund in accordance withG.S. 115C‑457.2.
(h) Definition. Forpurposes of this section, the term "dealer" means a person who islicensed under Article 12 of this Chapter. (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.)