AN ACT to clarify that the commissioner of motor vehicles of north carolina may enter into motor vehicle registration and licensing reciprocity agreements with foreign nations AND to direct the commissioner of motor vehicles to negotiate a memorandum of understanding regarding the exchange of noncommercial drivers licenses with taiwan.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 20‑4.4 reads as rewritten:

§ 20‑4.4.  Authority for reciprocity agreements; provisions; reciprocity standards.

(a)        The Commissioner may enter into an agreement or arrangement for interstate or intrastate operations with the duly authorized representatives of another jurisdiction, granting to vehicles or to owners of vehicles which are properly registered or licensed in such jurisdiction and for which evidence of compliance is supplied, benefits, privileges and exemptions from the payment, wholly or partially, of any taxes, fees, or other charges imposed upon such vehicles or owners with respect to the operation or ownership of such vehicles under the laws of this State. Such an agreement or arrangement shall provide that vehicles properly registered or licensed in this State when operated upon highways of such other jurisdiction shall receive exemptions, benefits and privileges of a similar kind or to a similar degree as are extended to vehicles properly registered or licensed in such jurisdiction when operated in this State. Each such agreement or arrangement shall, in the judgment of the Commissioner, be in the best interest of this State and the citizens thereof and shall be fair and equitable to this State and the citizens thereof, and all of the same shall be determined on the basis and recognition of the benefits which accrue to the economy of this State from the uninterrupted flow of commerce.

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SECTION 2.  The Commissioner of Motor Vehicles (Commissioner) shall evaluate whether the Department of Transportation, Division of Motor Vehicles (DMV), and the Republic of China (Taiwan) have established comparable knowledge, skill, and testing requirements for drivers license applicants prior to the drivers license being issued. Provided that the DMV and Taiwan have established comparable requirements and testing standards, no later than January 1, 2027, the Commissioner shall negotiate a memorandum of understanding (MOU) with the Ministry of Transportation and Communication of Taiwan related solely to the exchange of noncommercial drivers licenses. No later than October 1, 2027, the Commissioner shall report to the Joint Legislative Transportation Oversight Committee on the status of the memorandum of understanding.

SECTION 3.  There is appropriated from the Highway Fund to the Department of Transportation, Division of Motor Vehicles, the sum of five thousand dollars ($5,000) in nonrecurring funds for the 2026‑2027 fiscal year to be used to conduct a public awareness campaign regarding the reciprocity authorized by this act.

SECTION 4.  This act is effective when it becomes law.