A BILL TO BE ENTITLED
AN ACT MODIFYING THE ACTION TO BE TAKEN BY THE dIVISION OF MOTOR VEHICLES When it is notified of a lapse in financial responsibility.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 20‑311 reads as rewritten:
"§ 20‑311.  Action by the Division when notified of a lapse in financial responsibility.
(a)	Action. – When the Division receives evidence, by a notice of termination of a motor vehicle liability policy or otherwise, that the owner of a motor vehicle registered or required to be registered in this State does not have financial responsibility for the operation of the vehicle, the Division shall review its records and confirm whether a lapse in financial responsibility under G.S. 20‑309 occurred. If the review indicates a lapse of financial responsibility occurred, the Division shall notify the owner by mail or electronically. The notice shall inform the owner of the evidence demonstrating lapse and that the owner must respond to the notice within 10 days of the date the notice was sent. The owner's response shall explain how the owner has met the duty to have continuous financial responsibility for the vehicle. Based on the owner's response, the Division shall take the appropriate action listed:
(1)	Division correction. – If the owner responds within the required time and the response establishes that the owner has not had a lapse in financial responsibility, the Division shall correct its records. Evidence demonstrating that a lapse did not occur includes proof of continuous financial responsibility or a form indicating transfer of title under G.S. 20‑72 or G.S. 20‑109.1 prior to the termination of the liability policy.
…."
SECTION 2.  This act is effective when it becomes law.