AN ACT requiring the division of motor vehicles to provide printed copies of drivers license handbooks to the department of instruction, modifying the laws relating to the licensure of commercial driver training schools and instructors, and appropriating funds to the division of motor vehicles.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 20‑88.1(d) reads as rewritten:

(d)      The Division shall prepare a driver license handbook that explains the traffic laws of the State and shall periodically revise the handbook to reflect changes in these laws. The Division, in consultation with the State Highway Patrol, the North Carolina Sheriff's Association, and the North Carolina Association of Chiefs of Police, shall include in the driver license handbook a description of law enforcement procedures during traffic stops and the actions that a motorist should take during a traffic stop, including appropriate interactions with law enforcement officers. At the request of the Department of Public Instruction, Instruction (DPI), the Division shall provide free printed copies of the handbook to that Department for use in the program of driver education offered at public high schools. The Division shall annually report to the chairs of the Joint Legislative Oversight Committee on Transportation and the Joint Legislative Oversight Committee on Education on the number of printed handbooks requested by DPI and the number of printed handbooks it provided.

SECTION 2.  G.S. 20‑322(d) reads as rewritten:

(d)      In addition to regulations adopted by the Commissioner under subsection (c) of this section, commercial driver training schools providing courses to prepare an individual for a limited learner's permit or another provisional license through the public schools must meet shall:

(1)        Meet all requirements set in G.S. 115C‑215 for the program of driver education offered in the public schools.

(2)        Maintain current copies of all contracts entered into by the school and make them available for inspection at the request of the Division.

SECTION 3.(a)  G.S. 20‑323 reads as rewritten:

§ 20‑323.  Licenses or permits for instructors necessary; regulations as to requirements.

(a)        No person shall act as an instructor on or after July 1, 1965, unless such person applies for and obtains from the Commissioner a license or a temporary instructor's permit in the manner and form prescribed by the Commissioner.

(a1)      The Commissioner may issue a temporary instructor's permit to an applicant. The permit shall be valid for a period not to exceed 12 months and shall authorize the applicant to provide instruction subject to supervision and evaluation conditions established by the Commissioner.

(b)        Regulations adopted by the Commissioner shall state the requirements for both an instructor's license, license and a temporary instructor's permit, including requirements concerning moral character, physical condition, knowledge of the courses of instruction, knowledge of the motor vehicle laws and safety principles, previous personal and employment records, and such other matters as the Commissioner may prescribe, for the protection of the public.

SECTION 3.(b)  G.S. 20‑324 reads as rewritten:

§ 20‑324.  Expiration and renewal of licenses; fees.continuing education; fees.

(a)        Renewal. – A license issued under this Article expires two four years after the date the license is issued. To renew a license, the license holder must file an application for renewal with the Division. The Division shall offer remote renewal of licenses issued pursuant to this section.

(a1)      Continuing Education. – The Division shall establish continuing education requirements for the renewal of licenses issued to instructors pursuant to this Article. The rules for continuing education requirements shall:

(1)        Require no more than 24 credit hours of continuing education every four years.

(2)        Permit courses accredited by the North Carolina Driver & Traffic Safety Education Association (NCDTSEA), the North Carolina Private Commercial Driving Schools Association (NCPCDSA), and NC Driving School, Inc., to count toward the continuing education credit hour requirement.

(3)        Permit up to two driver education instruction related courses annually to count toward the continuing education credit hour requirements. Subjects permissible pursuant to this subdivision include first aid or courses addressing pedagogical methods.

(4)        Permit in‑person, live online, and verified asynchronous training courses to count toward the continuing education credit hour requirement.

(5)        Direct the Commissioner to review any forms required to satisfy license renewal or continuing education requirements every two years and simplify, clarify, and modernize those forms as needed. The Commissioner shall consult with the Department of Public Instruction, NCDTSEA, NCPCDSA, and NC Driving School, Inc., during this review.

(b)        Fees. – An application for an initial license or the renewal of a license must be accompanied by the an application fee for the license. The application fee for a school license is eighty dollars ($80.00). The application fee for an instructor license is sixteen dollars ($16.00). license set by the Commissioner. The application fee for a license is not refundable. Fees collected under this section must be credited to the Highway Fund.

SECTION 3.(c)  The Department of Transportation, Division of Motor Vehicles, shall adopt rules to implement this section.

SECTION 3.(d)  Subsections (a) and (b) of this section become effective January 1, 2027, and apply to licenses issued or renewed on or after that date.

SECTION 4.(a)  There is appropriated from the Highway Fund to the Department of Transportation, Division of Motor Vehicles, the sum of one hundred thousand dollars ($100,000) in nonrecurring funds for the 2026‑2027 fiscal year to be used for costs associated with complying with the requirements of this act.

SECTION 4.(b)  This section becomes effective July 1, 2026.

SECTION 5.  Except as otherwise provided, this act is effective when it becomes law.