AN ACT prohibiting the titling and registration of junk vehicles and removing any distinction based on vehicle age with respect to the branded title REQUIREMENTS for salvage vehicles.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 20‑71.3 reads as rewritten:

§ 20‑71.3.  Salvage and other vehicles – titles and registration cards to be branded.

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(b)        Any motor vehicle up to and including six model years old damaged by collision or other occurrence, that is to be retitled registered in this State, shall be subject to preliminary and final inspections by the Enforcement Section of the Division. For purposes of this section, the term six model years shall be calculated by counting the model year of the vehicle's manufacture as the first model year and the current calendar year as the final model year.No junk vehicle or vehicle that has been branded junk shall be titled or registered.

These inspections serve as antitheft measures and do not certify the safety or road‑worthiness of a vehicle.

(c)        The Division shall not retitle register a vehicle described in subsection (b) of this section that has not undergone the preliminary and final inspections required by that subsection.

(d)       Any motor vehicle up to and including six model years old that has been inspected pursuant to subsection (b) of this section may be retitled with an unbranded title based upon a title application by the rebuilder with a supporting affidavit disclosing all of the following:

(1)        The parts used or replaced.

(2)        The major components replaced.

(3)        The hours of labor and the hourly labor rate.

(4)        The total cost of repair.

(5)        The existence, if applicable, of the doorjamb TOTAL LOSS CLAIM VEHICLE marker.

The unbranded title shall be issued only if the cost of repairs, including parts and labor, does not exceed seventy‑five percent (75%) of its fair market retail value.

(e)        Any motor vehicle more than six model years old damaged by collision or other occurrence that is to be retitled by the State may be retitled, without inspection, with an unbranded title based upon a title application by the rebuilder with a supporting affidavit disclosing all of the following:

(1)        The parts used or replaced.

(2)        The major components replaced.

(3)        The hours of labor and the hourly labor rate.

(4)        The total cost of repair.

(5)        The existence, if applicable, of the doorjamb TOTAL LOSS CLAIM VEHICLE marker.

(6)        The cost to replace the air bag restraint system.

The unbranded title shall be issued only if the cost of repairs, including parts and labor and excluding the cost to replace the air bag restraint system, does not exceed seventy‑five percent (75%) of its fair market retail value.

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(h)        A branded title for a salvage motor vehicle damaged by collision or other occurrence shall be issued as follows:if the cost of repairs, including parts and labor, exceeds seventy‑five percent (75%) of its fair market value at the time of the collision or other occurrence.

(1)        For motor vehicles up to and including six model years old, a branded title shall be issued if the cost of repairs, including parts and labor, exceeds seventy‑five percent (75%) of its fair market value at the time of the collision or other occurrence.

(2)        For motor vehicles more than six model years old, a branded title shall be issued if the cost of repairs, including parts and labor and excluding the cost to replace the air bag restraint system, exceeds seventy‑five percent (75%) of its fair market value at the time of the collision or other occurrence.

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SECTION 2.  This act becomes effective October 1, 2021, and applies to any title or registration application submitted on or after that date.