Remove Barriers to Employment from Court Debt.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 980

Short Title: Remove Barriers to Employment from Court Debt. (Public)
Sponsors: Representative Chesser.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Finance, if favorable, Rules, Calendar, and
Operations of the House
April 14, 2025
*H980-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REMOVE BARRIERS TO EMPLOYMENT DUE TO COURT DEBT AND TO 2
APPROPRIATE FUNDS TO IMPLEMENT A TEXT REMINDER SYSTEM FOR COURT 3
DATES. 4
The General Assembly of North Carolina enacts: 5
6
ELIMINATE GOVERNMENT'S AUTHORITY TO SUSPEND A DRIVERS LICENSE 7
FOR NONPAYMENT OF FINE, PENALTY, OR COST OR NONAPPEARANCE IN 8
COURT FOR MOTOR VEHICLE OFFENSES 9
SECTION 1.(a) G.S. 20-24.1 is repealed. 10
SECTION 1.(b) G.S. 20-24.2 is repealed. 11
SECTION 1.(c) G.S. 15A-1116(a) reads as rewritten: 12
"(a) Use of Contempt or Fine Collection Procedures: Notification of DMV. – If the person 13
does not comply with a sanction ordered by the court, the court may proceed in accordance with 14
Chapter 5A of the General Statutes. If the person fails to pay a penalty or costs, t he court may 15
proceed in accordance with Article 84 of this Chapter. If the infraction is a motor vehicle 16
infraction, the court must report a failure to pay the applicable penalty and costs to the Division 17
of Motor Vehicles as specified in G.S. 20-24.2." 18
19
REINSTATE SUSPENDED LICENSES WITHOUT ANY ACTION REQUIRED BY 20
LICENSE HOLDER; WAIVE ASSOCIATED FEES AND PROVIDE PEOPLE NOTICE 21
OF REINSTATEMENT 22
SECTION 2.(a) Article 2 of Chapter 20 of the General Statutes is amended by adding 23
a new section to read: 24
"§ 20-24.3. Prohibition on revocation issued solely for failure to appear or pay fine, penalty, 25
or costs. 26
Notwithstanding any other provision of law, the Division shall not revoke the drivers license 27
of a person charged with or convicted of an infraction, misdemeanor, or felony if the revocation 28
is solely for one or both of the following reasons: ( i) the person failed to appear, after being 29
notified to do so, when the case was called for a trial or hearing or (ii) the person failed to pay a 30
fine, penalty, or court costs ordered by the court." 31
SECTION 2.(b) Within three months of the effective date of this section, the 32
Division of Motor Vehicles (Division) shall terminate all suspensions of drivers licenses pursuant 33
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
Page 2 House Bill 980-First Edition
shall waive all fees associated with reinstatement of a drivers license after a suspension based on 1
G.S. 20-24.1 or G.S. 20-24.2. If a person has no other suspensions pursuant to other sections, the 2
drivers license shall be reinstated without any action required on the person's part. 3
SECTION 2.(c) Upon termination of suspensions pursuant to this section, the 4
Division shall provide notice to each person whose license suspension was terminated by 5
first-class mail to the address on file with the Division. The notice shall inform the person of the 6
other legal consequences associated with continued failure to appear or to pay fines and the 7
options for resolution of any fines and fees that they owe. The Division shall post information to 8
its website about the termination of suspensions pursuant to G.S. 20-24.1 or G.S. 20-24.2. 9
10
COLLECT DATA TO MONITOR IMPLEMENTATION AND MEASURE IMPACT 11
SECTION 3.(a) No later than October 1, 2025, the Division of Motor Vehicles shall 12
collect data and publish a report that shows, as of a result of this act, all of the following 13
information: 14
(1) The total number of suspensions on account of failure to pay fines or fees that 15
were terminated, disaggregated by race, ethnicity, gen der, and zip code of 16
residence of the person with the suspension; the length of the suspension; the 17
charge; the charge level; and court. 18
(2) The total number of suspensions on account of failure to appear in court that 19
were terminated, disaggregated by rac e, ethnicity, gender, and zip code of 20
residence of the person with the suspension; the length of the suspension; the 21
charge; the charge level; and court. 22
(3) The total number of people whose licenses were reinstated, disaggregated by 23
race, ethnicity, gender, and zip code of residence. 24
(4) The total number and amount of fees, including reinstatement fees, that were 25
waived. 26
(5) The total amount of fines and fees related to a prosecution of Driving While 27
License Revoked that were waived. 28
SECTION 3.(b) Article 2 of Chapter 20 of the General Statutes is amended by 29
adding a new section to read: 30
"§ 20-24.4. Data collection. 31
No later than March 31, 202 5, and annually thereafter, t he Administrative Office of the 32
Courts shall collect data and publish a report that provides data related to compliance, collections, 33
and appearance rates in courts that adjudicate motor vehicle offenses. All data presented shall be 34
disaggregated by county, court, charge, as well as demographic information about the person 35
against whom the fine or fee was levied, or who was prosecuted, including race, ethnicity, gender, 36
and zip code of residence. At a minimum, that report shall include all of the following: 37
(1) The total amount of fines and fees debt imposed in the preceding year. 38
(2) The total amount of fines and fees collected in the preceding year. 39
(3) The total amount of fines and fees resolved through alternative means, such 40
as community service, in the preceding year. 41
(4) The total amount of fines and fees waived in the preceding year. 42
(5) The rate of nonappearance in court. 43
(6) The rate of intentional evasion of prosecution in court." 44
45
FORGIVENESS OF OUTSTANDING FINES AND FEES ASSOCIATED WITH 46
PREVIOUS DWLR CONVICTIONS IF UNDERLYING SUSPENSION WAS DUE TO 47
FAILURE TO PAY OR FAILURE TO APPEAR 48
SECTION 4. G.S. 20-28 is amended by adding a new subsection to read: 49
"(a4) As of October 1, 202 5, any unpaid fines and fees assessed as a result of a charge 50
pursuant to subsection (a) of this section are no longer enforceable or collectable if the only 51
General Assembly Of North Carolina Session 2025
House Bill 980-First Edition Page 3
underlying suspension or suspensions leading to the person's drivers license being revoked were 1
pursuant to G.S. 20-24.1." 2
3
CONFORMING AMENDMENTS 4
SECTION 5.(a) G.S. 20-13.2(e) reads as rewritten: 5
"(e) Before the Division restores a driver's license that has been suspended or revoked 6
under any provision of this Article, other than G.S. 20-24.1, Article, the person seeking to have 7
his driver's license restored shall submit to the Division proof that he has notified his insurance 8
agent or company of his seeking the restoration and that he is financially responsible. Proof of 9
financial responsibility shall be in one of the following forms: 10
(1) A written certificate or electronically -transmitted facsimile thereof from any 11
insurance carrier duly authorized to do business in this State certifying that 12
there is in effect a nonfleet private passenger motor vehicle liability policy for 13
the benefit of the person required to furnish proof of financial responsibilit y. 14
The certificate or facsimile shall state the effective date and expiration date of 15
the nonfleet private passenger motor vehicle liability policy and shall state the 16
date that the certificate or facsimile is issued. The certificate or facsimile shall 17
remain effective proof of financial responsibility for a period of 30 18
consecutive days following the date the certificate or facsimile is issued but 19
shall not in and of itself constitute a binder or policy of insurance or 20
(2) A binder for or policy of nonflee t private passenger motor vehicle liability 21
insurance under which the applicant is insured, provided that the binder or 22
policy states the effective date and expiration date of the nonfleet private 23
passenger motor vehicle liability policy. 24
The preceding pro visions of this subsection do not apply to applicants who do not own 25
currently registered motor vehicles and who do not operate nonfleet private passenger motor 26
vehicles that are owned by other persons and that are not insured under commercial motor vehicle 27
liability insurance policies. In such cases, the applicant shall sign a written certificate to that 28
effect. Such certificate shall be furnished by the Division and may be incorporated into the 29
restoration application form. Any material misrepresentation made by such person on such 30
certificate shall be grounds for suspension of that person's license for a period of 90 days. 31
For the purposes of this subsection, the term "nonfleet private passenger motor vehicle" has 32
the definition ascribed to it in Article 40 of General Statute Chapter 58. 33
The Commissioner may require that certificates required by this subsection be on a form 34
approved by the Commissioner. The financial responsibility required by this subsection shall be 35
kept in effect for not less than three years after the date that the license is restored. Failure to 36
maintain financial responsibility as required by this subsection shall be grounds for suspending 37
the restored driver's license for a period of thirty (30) days. Nothing in this subsection precludes 38
any person from showing proof of financial responsibility in any other manner authorized by 39
Articles 9A and 13 of this Chapter." 40
SECTION 5.(b) G.S. 20-19(k) reads as rewritten: 41
"(k) Before the Division restores a driver's license that has been suspen ded or revoked 42
under G.S. 20-138.5(d), or under any provision of this Article, other than G.S. 20-24.1, Article, 43
the person seeking to have the person's driver's license restored shall submit to the Division proof 44
that the person has notified the person's insurance agent or company that the person is seeking 45
the restoration and that the person is financially responsible. Proof of financial responsibility 46
shall be in one of the following forms: 47
(1) A written certificate or electronically -transmitted facsimile thereof from any 48
insurance carrier duly authorized to do business in this State certifying that 49
there is in effect a nonfleet private passenger motor vehicle liability policy for 50
the benefit of the person required to furnish proof of financial responsibi lity. 51
General Assembly Of North Carolina Session 2025
Page 4 House Bill 980-First Edition
The certificate or facsimile shall state the effective date and expiration date of 1
the nonfleet private passenger motor vehicle liability policy and shall state the 2
date that the certificate or facsimile is issued. The certificate or facsimile shall 3
remain effective proof of financial responsibility for a period of 30 4
consecutive days following the date the certificate or facsimile is issued but 5
shall not in and of itself constitute a binder or policy of insurance. 6
(2) A binder for or policy of nonfle et private passenger motor vehicle liability 7
insurance under which the applicant is insured, provided that the binder or 8
policy states the effective date and expiration date of the nonfleet private 9
passenger motor vehicle liability policy. 10
Subdivisions (1) and (2) of this subsection do not apply to applicants who do not own 11
currently registered motor vehicles and who do not operate nonfleet private passenger motor 12
vehicles that are owned by other persons and that are not insured under commercial motor vehicle 13
liability insurance policies. In such cases, the applicant shall sign a written certificate to that 14
effect. Such certificate shall be furnished by the Division and may be incorporated into the 15
restoration application form. Any material misrepresentation made by such person on such 16
certificate shall be grounds for suspension of that person's license for a period of 90 days. 17
For the purposes of this subsection, the term "nonfleet private passenger motor vehicle" has 18
the definition ascribed to it in Article 40 of General Statute Chapter 58. 19
The Commissioner may require that certificates required by this subsection be on a form 20
approved by the Commissioner. The financial responsibility required by this subsection shall be 21
kept in effect for not less than thre e years after the date that the license is restored. Failure to 22
maintain financial responsibility as required by this subsection shall be grounds for suspending 23
the restored driver's license for a period of 30 days. Nothing in this subsection precludes any 24
person from showing proof of financial responsibility in any other manner authorized by Articles 25
9A and 13 of this Chapter." 26
SECTION 5.(c) G.S. 20-28.1(a) reads as rewritten: 27
"(a) Upon receipt of notice of conviction of any person of a motor vehicle moving offense, 28
such offense having been committed while such person's driving privilege was in a state of 29
suspension or revocation, the Division shall revoke such person's driving privilege for an 30
additional period of time as set forth in subsection (b) hereo f. For purposes of this section a 31
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
considered a "motor vehicle moving offense" unless the offense occurred in a commercial motor 33
vehicle or the person held a commercial drivers license at the time of the offense." 34
SECTION 5.(d) G.S. 20-217(g2) reads as rewritten: 35
"(g2) Pursuant to G.S. 20-54, failure of a person to pay any fine or costs imposed pursuant 36
to this section shall result in the Division withholding the registration renewal of a motor vehicle 37
registered in that person's name. The clerk of superior court in the county in which the case was 38
disposed shall notify the Division of any person who fails to pay a fine or costs imposed pursuant 39
to this section within 40 days of the date specified in the court's judgment, as required by 40
G.S. 20-24.2(a)(2). judgment. The Division shall continue to withhold the registration renewal 41
of a motor vehicle until the clerk of superior court notifies the Division that the person has 42
satisfied the conditions of G.S. 20-24.1(b) applicable to the person's case. The provisions of this 43
subsection shall be in addition to any other actions the Division may take to enforce the payment 44
of any fine imposed pursuant to this section." 45
SECTION 5.(e) G.S. 110-142.2(f) reads as rewritten: 46
"(f) Upon receipt of certification under subsection (d) or (e) of this section, the Division 47
of Motor Vehicles shall reinstate the license to operate a motor vehicle in accordance with G.S. 48
20-24.1, upon payment of the restoration fee and remove any restriction of the individual's motor 49
vehicle registration." 50
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General Assembly Of North Carolina Session 2025
House Bill 980-First Edition Page 5
FUNDS FOR TEXT REMINDER SYSTEM FOR COURT APPEARANCES 1
SECTION 6. Of the funds appropriated to the Administrative Office of the Courts 2
for the 2025 -2026 fiscal year, the sum of two hundred fifty thousand dollars ($250,000) in 3
recurring funds shall be used to implement a text reminder system of upcoming court 4
appearances. 5
6
EFFECTIVE DATE 7
SECTION 7. Sections 1 through 5 of this act become effective Oc tober 1, 2025. 8
Prosecutions for offenses based on revocations imposed pursuant to G.S. 20-24.1 and in effect 9
prior to termination by the Division, as provided in Section 2(b) of this act, are not abated or 10
affected by this act, and the statutes that would be applicable but for this act remain applicable 11
to those prosecutions. Section 6 of this act becomes effective July 1, 2025. The remainder of this 12
act is effective when it becomes law. 13