North Carolina 2025-2026 Regular Session

North Carolina House Bill H980 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 980
	3	+	H D
	4	+	HOUSE BILL DRH40509-NEfa-16
	5	+
5	6
6	7
7	8		Short Title: Remove Barriers to Employment from Court Debt. (Public)
8	9		Sponsors: Representative Chesser.
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Appropriations, if favorable, Finance, if favorable, Rules, Calendar, and
11		-	Operations of the House
12		-	April 14, 2025
13		-	H980 -v-1
	10	+	Referred to:
	11	+
	12	+	DRH40509 -NEfa-16
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT TO REMOVE BARRIERS TO EMPLOYMENT DUE TO COURT DEBT AND TO 2
16	15		APPROPRIATE FUNDS TO IMPLEMENT A TEXT REMINDER SYSTEM FOR COURT 3
17	16		DATES. 4
18	17		The General Assembly of North Carolina enacts: 5
19	18		6
20	19		ELIMINATE GOVERNMENT 'S AUTHORITY TO SUSPEND A DRIVERS LICENSE 7
21	20		FOR NONPAYMENT OF FINE, PENALTY, OR COST OR NONAPPEARANCE IN 8
22	21		COURT FOR MOTOR VEHICLE OFFENSES 9
23	22		SECTION 1.(a) G.S. 20-24.1 is repealed. 10
24	23		SECTION 1.(b) G.S. 20-24.2 is repealed. 11
25	24		SECTION 1.(c) G.S. 15A-1116(a) reads as rewritten: 12
26	25		"(a) Use of Contempt or Fine Collection Procedures: Notification of DMV. – If the person 13
27	26		does not comply with a sanction ordered by the court, the court may proceed in accordance with 14
28	27		Chapter 5A of the General Statutes. If the person fails to pay a penalty or costs, the court may 15
29	28		proceed in accordance with Article 84 of this Chapter. If the infraction is a motor vehicle 16
30	29		infraction, the court must report a failure to pay the applicable penalty and costs to the Division 17
31	30		of Motor Vehicles as specified in G.S. 20-24.2." 18
32	31		19
33	32		REINSTATE SUSPENDED LICENSES WITHOUT ANY ACTION REQUIRED BY 20
34	33		LICENSE HOLDER; WAIVE ASSOCIATED FEES AND PROVIDE PEOPLE NOTICE 21
35	34		OF REINSTATEMENT 22
36	35		SECTION 2.(a) Article 2 of Chapter 20 of the General Statutes is amended by adding 23
37	36		a new section to read: 24
38	37		"§ 20-24.3. Prohibition on revocation issued solely for failure to appear or pay fine, penalty, 25
39	38		or costs. 26
40	39		Notwithstanding any other provision of law, the Division shall not revoke the drivers license 27
41	40		of a person charged with or convicted of an infraction, misdemeanor, or felony if the revocation 28
42	41		is solely for one or both of the following reasons: (i) the person failed to appear, after being 29
43	42		notified to do so, when the case was called for a trial or hearing or (ii) the person failed to pay a 30
44	43		fine, penalty, or court costs ordered by the court." 31
45	44		SECTION 2.(b) Within three months of the effective date of this section, the 32
46	45		Division of Motor Vehicles (Division) shall terminate all suspensions of drivers licenses pursuant 33
47		-	to G.S. 20-24.1 or G.S. 20-24.2 in effect prior to the effective date of this section. The Division 34 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 980-First Edition
49		-	shall waive all fees associated with reinstatement of a drivers license after a suspension based on 1
50		-	G.S. 20-24.1 or G.S. 20-24.2. If a person has no other suspensions pursuant to other sections, the 2
51		-	drivers license shall be reinstated without any action required on the person's part. 3
52		-	SECTION 2.(c) Upon termination of suspensions pursuant to this section, the 4
53		-	Division shall provide notice to each person whose license suspension was terminated by 5
54		-	first-class mail to the address on file with the Division. The notice shall inform the person of the 6
55		-	other legal consequences associated with continued failure to appear or to pay fines and the 7
56		-	options for resolution of any fines and fees that they owe. The Division shall post information to 8
57		-	its website about the termination of suspensions pursuant to G.S. 20-24.1 or G.S. 20-24.2. 9
58		-	10
59		-	COLLECT DATA TO MONITOR IMPLEMENTATION AND MEASURE IMPACT 11
60		-	SECTION 3.(a) No later than October 1, 2025, the Division of Motor Vehicles shall 12
61		-	collect data and publish a report that shows, as of a result of this act, all of the following 13
62		-	information: 14
63		-	(1) The total number of suspensions on account of failure to pay fines or fees that 15
64		-	were terminated, disaggregated by race, ethnicity, gender, and zip code of 16
65		-	residence of the person with the suspension; the length of the suspension; the 17
66		-	charge; the charge level; and court. 18
67		-	(2) The total number of suspensions on account of failure to appear in court that 19
68		-	were terminated, disaggregated by race, ethnicity, gender, and zip code of 20
69		-	residence of the person with the suspension; the length of the suspension; the 21
70		-	charge; the charge level; and court. 22
71		-	(3) The total number of people whose licenses were reinstated, disaggregated by 23
72		-	race, ethnicity, gender, and zip code of residence. 24
73		-	(4) The total number and amount of fees, including reinstatement fees, that were 25
74		-	waived. 26
75		-	(5) The total amount of fines and fees related to a prosecution of Driving While 27
76		-	License Revoked that were waived. 28
77		-	SECTION 3.(b) Article 2 of Chapter 20 of the General Statutes is amended by 29
78		-	adding a new section to read: 30
79		-	"§ 20-24.4. Data collection. 31
80		-	No later than March 31, 2025, and annually thereafter, the Administrative Office of the 32
81		-	Courts shall collect data and publish a report that provides data related to compliance, collections, 33
82		-	and appearance rates in courts that adjudicate motor vehicle offenses. All data presented shall be 34
83		-	disaggregated by county, court, charge, as well as demographic information about the person 35
84		-	against whom the fine or fee was levied, or who was prosecuted, including race, ethnicity, gender, 36
85		-	and zip code of residence. At a minimum, that report shall include all of the following: 37
86		-	(1) The total amount of fines and fees debt imposed in the preceding year. 38
87		-	(2) The total amount of fines and fees collected in the preceding year. 39
88		-	(3) The total amount of fines and fees resolved through alternative means, such 40
89		-	as community service, in the preceding year. 41
90		-	(4) The total amount of fines and fees waived in the preceding year. 42
91		-	(5) The rate of nonappearance in court. 43
92		-	(6) The rate of intentional evasion of prosecution in court." 44
93		-	45
94		-	FORGIVENESS OF OUTSTANDING FINES AND FEES ASSOCIATED WITH 46
95		-	PREVIOUS DWLR CONVICTIONS IF UNDERLYING SUSPENSION WAS DUE TO 47
96		-	FAILURE TO PAY OR FAILURE TO AP PEAR 48
97		-	SECTION 4. G.S. 20-28 is amended by adding a new subsection to read: 49
98		-	"(a4) As of October 1, 2025, any unpaid fines and fees assessed as a result of a charge 50
99		-	pursuant to subsection (a) of this section are no longer enforceable or collectable if the only 51 General Assembly Of North Carolina Session 2025
100		-	House Bill 980-First Edition Page 3
	46	+	to G.S. 20-24.1 or G.S. 20-24.2 in effect prior to the effective date of this section. The Division 34
	47	+	shall waive all fees associated with reinstatement of a drivers license after a suspension based on 35
	48	+	H.B. 980
	49	+	Apr 10, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH40509-NEfa-16
	52	+	G.S. 20-24.1 or G.S. 20-24.2. If a person has no other suspensions pursuant to other sections, the 1
	53	+	drivers license shall be reinstated without any action required on the person's part. 2
	54	+	SECTION 2.(c) Upon termination of suspensions pursuant to this section, the 3
	55	+	Division shall provide notice to each person whose license suspension was terminated by 4
	56	+	first-class mail to the address on file with the Division. The notice shall inform the person of the 5
	57	+	other legal consequences associated with continued failure to appear or to pay fines and the 6
	58	+	options for resolution of any fines and fees that they owe. The Division shall post information to 7
	59	+	its website about the termination of suspensions pursuant to G.S. 20-24.1 or G.S. 20-24.2. 8
	60	+	9
	61	+	COLLECT DATA TO MONITOR IMPLEMENTATION AND MEASURE IMPACT 10
	62	+	SECTION 3.(a) No later than October 1, 2025, the Division of Motor Vehicles shall 11
	63	+	collect data and publish a report that shows, as of a result of this act, all of the following 12
	64	+	information: 13
	65	+	(1) The total number of suspensions on account of failure to pay fines or fees that 14
	66	+	were terminated, disaggregated by race, ethnicity, gender, and zip code of 15
	67	+	residence of the person with the suspension; the length of the suspension; the 16
	68	+	charge; the charge level; and court. 17
	69	+	(2) The total number of suspensions on account of failure to appear in court that 18
	70	+	were terminated, disaggregated by race, ethnicity, gender, and zip code of 19
	71	+	residence of the person with the suspension; the length of the suspension; the 20
	72	+	charge; the charge level; and court. 21
	73	+	(3) The total number of people whose licenses were reinstated, disaggregated by 22
	74	+	race, ethnicity, gender, and zip code of residence. 23
	75	+	(4) The total number and amount of fees, including reinstatement fees, that were 24
	76	+	waived. 25
	77	+	(5) The total amount of fines and fees related to a prosecution of Driving While 26
	78	+	License Revoked that were waived. 27
	79	+	SECTION 3.(b) Article 2 of Chapter 20 of the General Statutes is amended by 28
	80	+	adding a new section to read: 29
	81	+	"§ 20-24.4. Data collection. 30
	82	+	No later than March 31, 2025, and annually thereafter, the Administrative Office of the 31
	83	+	Courts shall collect data and publish a report that provides data related to compliance, collections, 32
	84	+	and appearance rates in courts that adjudicate motor vehicle offenses. All data presented shall be 33
	85	+	disaggregated by county, court, charge, as well as demographic information about the person 34
	86	+	against whom the fine or fee was levied, or who was prosecuted, including race, ethnicity, gender, 35
	87	+	and zip code of residence. At a minimum, that report shall include all of the following: 36
	88	+	(1) The total amount of fines and fees debt imposed in the preceding year. 37
	89	+	(2) The total amount of fines and fees collected in the preceding year. 38
	90	+	(3) The total amount of fines and fees resolved through alternative means, such 39
	91	+	as community service, in the preceding year. 40
	92	+	(4) The total amount of fines and fees waived in the preceding year. 41
	93	+	(5) The rate of nonappearance in court. 42
	94	+	(6) The rate of intentional evasion of prosecution in court." 43
	95	+	44
	96	+	FORGIVENESS OF OUTSTANDING FINES AND FEES ASSOCIATED WITH 45
	97	+	PREVIOUS DWLR CONVICTIONS IF UNDERLYING SUSPENSION WAS DUE TO 46
	98	+	FAILURE TO PAY OR FAILURE TO APPEAR 47
	99	+	SECTION 4. G.S. 20-28 is amended by adding a new subsection to read: 48
	100	+	"(a4) As of October 1, 2025, any unpaid fines and fees assessed as a result of a charge 49
	101	+	pursuant to subsection (a) of this section are no longer enforceable or collectable if the only 50 General Assembly Of North Carolina Session 2025
	102	+	DRH40509-NEfa-16 Page 3
101	103		underlying suspension or suspensions leading to the person's drivers license being revoked were 1
102	104		pursuant to G.S. 20-24.1." 2
103	105		3
104	106		CONFORMING AMENDMENTS 4
105	107		SECTION 5.(a) G.S. 20-13.2(e) reads as rewritten: 5
106	108		"(e) Before the Division restores a driver's license that has been suspended or revoked 6
107	109		under any provision of this Article, other than G.S. 20-24.1, Article, the person seeking to have 7
108	110		his driver's license restored shall submit to the Division proof that he has notified his insurance 8
109	111		agent or company of his seeking the restoration and that he is financially responsible. Proof of 9
110	112		financial responsibility shall be in one of the following forms: 10
111	113		(1) A written certificate or electronically-transmitted facsimile thereof from any 11
112	114		insurance carrier duly authorized to do business in this State certifying that 12
113	115		there is in effect a nonfleet private passenger motor vehicle liability policy for 13
114	116		the benefit of the person required to furnish proof of financial responsibility. 14
115	117		The certificate or facsimile shall state the effective date and expiration date of 15
116	118		the nonfleet private passenger motor vehicle liability policy and shall state the 16
117	119		date that the certificate or facsimile is issued. The certificate or facsimile shall 17
118	120		remain effective proof of financial responsibility for a period of 30 18
119	121		consecutive days following the date the certificate or facsimile is issued but 19
120	122		shall not in and of itself constitute a binder or policy of insurance or 20
121	123		(2) A binder for or policy of nonfleet private passenger motor vehicle liability 21
122	124		insurance under which the applicant is insured, provided that the binder or 22
123	125		policy states the effective date and expiration date of the nonfleet private 23
124	126		passenger motor vehicle liability policy. 24
125	127		The preceding provisions of this subsection do not apply to applicants who do not own 25
126	128		currently registered motor vehicles and who do not operate nonfleet private passenger motor 26
127	129		vehicles that are owned by other persons and that are not insured under commercial motor vehicle 27
128	130		liability insurance policies. In such cases, the applicant shall sign a written certificate to that 28
129	131		effect. Such certificate shall be furnished by the Division and may be incorporated into the 29
130	132		restoration application form. Any material misrepresentation made by such person on such 30
131	133		certificate shall be grounds for suspension of that person's license for a period of 90 days. 31
132	134		For the purposes of this subsection, the term "nonfleet private passenger motor vehicle" has 32
133	135		the definition ascribed to it in Article 40 of General Statute Chapter 58. 33
134	136		The Commissioner may require that certificates required by this subsection be on a form 34
135	137		approved by the Commissioner. The financial responsibility required by this subsection shall be 35
136	138		kept in effect for not less than three years after the date that the license is restored. Failure to 36
137	139		maintain financial responsibility as required by this subsection shall be grounds for suspending 37
138	140		the restored driver's license for a period of thirty (30) days. Nothing in this subsection precludes 38
139	141		any person from showing proof of financial responsibility in any other manner authorized by 39
140	142		Articles 9A and 13 of this Chapter." 40
141	143		SECTION 5.(b) G.S. 20-19(k) reads as rewritten: 41
142	144		"(k) Before the Division restores a driver's license that has been suspended or revoked 42
143	145		under G.S. 20-138.5(d), or under any provision of this Article, other than G.S. 20-24.1, Article, 43
144	146		the person seeking to have the person's driver's license restored shall submit to the Division proof 44
145	147		that the person has notified the person's insurance agent or company that the person is seeking 45
146	148		the restoration and that the person is financially responsible. Proof of financial responsibility 46
147	149		shall be in one of the following forms: 47
148	150		(1) A written certificate or electronically-transmitted facsimile thereof from any 48
149	151		insurance carrier duly authorized to do business in this State certifying that 49
150	152		there is in effect a nonfleet private passenger motor vehicle liability policy for 50
151	153		the benefit of the person required to furnish proof of financial responsibility. 51 General Assembly Of North Carolina Session 2025
152		-	Page 4 ~~House Bill 980-First Edition~~
	154	+	Page 4 DRH40509-NEfa-16
153	155		The certificate or facsimile shall state the effective date and expiration date of 1
154	156		the nonfleet private passenger motor vehicle liability policy and shall state the 2
155	157		date that the certificate or facsimile is issued. The certificate or facsimile shall 3
156	158		remain effective proof of financial responsibility for a period of 30 4
157	159		consecutive days following the date the certificate or facsimile is issued but 5
158	160		shall not in and of itself constitute a binder or policy of insurance. 6
159	161		(2) A binder for or policy of nonfleet private passenger motor vehicle liability 7
160	162		insurance under which the applicant is insured, provided that the binder or 8
161	163		policy states the effective date and expiration date of the nonfleet private 9
162	164		passenger motor vehicle liability policy. 10
163	165		Subdivisions (1) and (2) of this subsection do not apply to applicants who do not own 11
164	166		currently registered motor vehicles and who do not operate nonfleet private passenger motor 12
165	167		vehicles that are owned by other persons and that are not insured under commercial motor vehicle 13
166	168		liability insurance policies. In such cases, the applicant shall sign a written certificate to that 14
167	169		effect. Such certificate shall be furnished by the Division and may be incorporated into the 15
168	170		restoration application form. Any material misrepresentation made by such person on such 16
169	171		certificate shall be grounds for suspension of that person's license for a period of 90 days. 17
170	172		For the purposes of this subsection, the term "nonfleet private passenger motor vehicle" has 18
171	173		the definition ascribed to it in Article 40 of General Statute Chapter 58. 19
172	174		The Commissioner may require that certificates required by this subsection be on a form 20
173	175		approved by the Commissioner. The financial responsibility required by this subsection shall be 21
174	176		kept in effect for not less than three years after the date that the license is restored. Failure to 22
175	177		maintain financial responsibility as required by this subsection shall be grounds for suspending 23
176	178		the restored driver's license for a period of 30 days. Nothing in this subsection precludes any 24
177	179		person from showing proof of financial responsibility in any other manner authorized by Articles 25
178	180		9A and 13 of this Chapter." 26
179	181		SECTION 5.(c) G.S. 20-28.1(a) reads as rewritten: 27
180	182		"(a) Upon receipt of notice of conviction of any person of a motor vehicle moving offense, 28
181	183		such offense having been committed while such person's driving privilege was in a state of 29
182	184		suspension or revocation, the Division shall revoke such person's driving privilege for an 30
183	185		additional period of time as set forth in subsection (b) hereof. For purposes of this section a 31
184	186		violation of G.S. 20-7(a), 20-24.1, G.S. 20-7(a) or 20-28(a) G.S. 20-28(a) or (a2) shall not be 32
185	187		considered a "motor vehicle moving offense" unless the offense occurred in a commercial motor 33
186	188		vehicle or the person held a commercial drivers license at the time of the offense." 34
187	189		SECTION 5.(d) G.S. 20-217(g2) reads as rewritten: 35
188	190		"(g2) Pursuant to G.S. 20-54, failure of a person to pay any fine or costs imposed pursuant 36
189	191		to this section shall result in the Division withholding the registration renewal of a motor vehicle 37
190	192		registered in that person's name. The clerk of superior court in the county in which the case was 38
191	193		disposed shall notify the Division of any person who fails to pay a fine or costs imposed pursuant 39
192	194		to this section within 40 days of the date specified in the court's judgment, as required by 40
193	195		G.S. 20-24.2(a)(2). judgment. The Division shall continue to withhold the registration renewal 41
194	196		of a motor vehicle until the clerk of superior court notifies the Division that the person has 42
195	197		satisfied the conditions of G.S. 20-24.1(b) applicable to the person's case. The provisions of this 43
196	198		subsection shall be in addition to any other actions the Division may take to enforce the payment 44
197	199		of any fine imposed pursuant to this section." 45
198	200		SECTION 5.(e) G.S. 110-142.2(f) reads as rewritten: 46
199	201		"(f) Upon receipt of certification under subsection (d) or (e) of this section, the Division 47
200	202		of Motor Vehicles shall reinstate the license to operate a motor vehicle in accordance with G.S. 48
201	203		20-24.1, upon payment of the restoration fee and remove any restriction of the individual's motor 49
202	204		vehicle registration." 50
203	205		51 General Assembly Of North Carolina Session 2025
204		-	~~House Bill 980-First Edition~~ Page 5
	206	+	DRH40509-NEfa-16 Page 5
205	207		FUNDS FOR TEXT REMINDER SYSTEM FOR COURT APPEARANCES 1
206	208		SECTION 6. Of the funds appropriated to the Administrative Office of the Courts 2
207	209		for the 2025-2026 fiscal year, the sum of two hundred fifty thousand dollars ($250,000) in 3
208	210		recurring funds shall be used to implement a text reminder system of upcoming court 4
209	211		appearances. 5
210	212		6
211	213		EFFECTIVE DATE 7
212	214		SECTION 7. Sections 1 through 5 of this act become effective October 1, 2025. 8
213	215		Prosecutions for offenses based on revocations imposed pursuant to G.S. 20-24.1 and in effect 9
214	216		prior to termination by the Division, as provided in Section 2(b) of this act, are not abated or 10
215	217		affected by this act, and the statutes that would be applicable but for this act remain applicable 11
216	218		to those prosecutions. Section 6 of this act becomes effective July 1, 2025. The remainder of this 12
217	219		act is effective when it becomes law. 13