Report on the Use of Private, Fictitious, and Confidential License Plates on Public Vehicles

12 Pages·2000·0.5 MB·English

by  North Carolina Legislature

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Report On
THE USE OF PRIVATE, FICTITIOUS, AND CONFIDENTIAL
LICENSE PLATES ON PUBLIC VEHICLES
Submitted to
The Joint Legislative Commission Governmental Operations
OQ
By
The Division ofFiscal Research
North Carolina General Assembly
S~L
Pursuant to 1999-237 Section 7.7(d)
April 28, 2000
I. Statutory Background
A. State Policy as Established in C.S. 14-250
Vehicles owned by North Carolina state and county governments must be marked so that their status as
publicproperty is apparent. The marking requirement has been firm polIcy since 1925, when the General
Assembly adopted "An Act to Prohibit the Use ofPublic-Owned Automobiles for Private Purposes".
This act made it a duty ofevery state and countydepartment head to place on each vehicle a statement in
letters not-less than three inches high saying that the vehicle is pubhcly owned. Additionally, the words
"forofficial use only" must be included (S.L. 1925-239). Prominent marking continues to be an effective
measure to deter the misuse ofpublic vehicles.
The core ofthe 1925 legislation is now codified as G.S. 14-250 inArticle 31 ofthe General Statutes,
entitled "Misconduct in Public Office". The dozen ormore amendments that bring the 1925 law to its
current state fall into two categories. First, they allow alternative marking techniques. In 1949 the
General Assembly authorized·permanentand distinctive licenseplates for state, county, and municipal
vehicles. Currently, state vehicles maysatisfy the markingrequirement by displaying distinctive license
plates, generally referred to as "stateplates". Countyvehicles may use a combination ofdistinctive
plates and an eight-inch replica ofthe county seal.
Amendments in the second categoryhave introduced exemptions from the 1925 marking requirement. In
1929 automobiles "used by an officeror official in any county ofthe State for the purpose oftransporting,
apprehending or arresting persons charged with violations ofthe laws ofthe state o£North Carolina" were
made exempt. This entitles county criminaljustice officialsto drive an unmarked vehicle with private
plates. More recently, county-owned vehicles beingused to transport mental health, mental retardation,
and substance abuse clients have been excused from letteringrequirements (although they.must display
permanent licenseplates).
The 1971 General-Assembly gave discretion to the COuncil ofState to exempt state-owned vehicles from
the marking requirements for up to twelve months upon a finding "that it is in the public interest to do so
because ofthe use to be made ofthe vehicle" (S.L. 1971-3). This amendment was amajor departure from
previous policy. For thefirst time, statepersonnelcouldbepermittedto drive unmarkedstate-owned
vehicles withprivateplates. The administrative arrangement lasted until 1982 when thliGeneral
Assembly decided that it, ratherthan the Council ofState, should be the primary source ofexemptions for
state-owned vehicles and that the Council ofStateshould act only in aback-up capacitywhen the
legislature was out ofsession. In 1982 the General Assembly authorized 1,073 private license tags on
statevehicles owned by nine agencies. Two years laterthe General Assembly again changed the
exemption authority for state-owned vehicles, this timeby giving the Division ofMotor Fleet
Management in the Department ofAdministration the powerto deviate from legislatively determined
allocations after consultation with the Joint Legislative Commission on Governmental Operations and the
Advisory Budget Commission (S.L 1984-1034, sec. 120). Duringthe 1985 Session this authority was
also withdrawn (S.L. 1985-791, sec 52).
The 1985 Session Law essentially stabilized G.S. 14-250 in its current form, with authorityto allow
private license plates to state-owned vehicles vested onlyin the General Assembly. Each year agencies
desiring to have private plates submittheirrequests to the Division ofMotorFleet Management, which
License PlateUse -- page 1of11
forwards the reqqests to the Appropriations Committees. Allocations are fixed in the appropriation bill
for General Fund Operations each year. The current allocation maybe found at Section 7.7(a) ofS.L.
1999-237. Table 1on the following page shows the history ofallocations starting in the 1982-83 fiscal
year.
License Plate Use -- page 2 of11
Table1:PrivateLicenseTagsonState-CMredMeterVehicles1982-2001
Assicnrents 1982-83 1983-84 1984-85 1985-87 1987-89 1989-91 1991-93 1993-95 1995-97 1997-99 1995-01
Mrirrstration
CaDldPdice 1 1 1
f-lmanReiaticnsca.rol 6
TotalMrinistration 7 7 1
CAvisionofMlto'Vehides
Ucrose&Theft 97 97 97 97 97 97 97 97 97 97
Ucrose&TheftrvbtcrPool 11 11
OiefTranso.lnsoector 1
AsstDir.,Ucrose&Theft 1
RecimalTranso.Su:>ervisas 1
Transo.Insoectcrs 8
-
TotalDivisionofM::ltrYllehides 108 121 97 97 97 97 97 97 97 97
Coornerce
lrd.JstriaiDeveJoomentReos. 15 15
IntematicnalDeveJ 4 4
EcrraricDevekx:mentDirector 1 1
StatePcrtsDiroclcr 1 1
IDea.rtvSecretarv 1 1
Bd.a I>Jco"dicControl 1 1
UtilitiesCoom-TrarISJXlfCllatim 20
- Enfcrcement
UtilitiesCcmn.-QiefofRail 3
Safety;TrackInspeclcr;MJtcr
-
Po.tIErardEqtipnentInspectcr
TotalCoornerce 43 26
NCSU
SeaJritv 2 2
TotalNCSU 2 2
ECU
Secuity 2 2
TotalECU 2 2
foI'?CD
FcrestLawEi"fuce.Of. 3 3
TotalNRCD 3 3
Cotredion
PrdJatiavPardeatieers(intensiVE 400 511 25 25 25 25 25 25 25
-- -
Irrobatim)
TotalCotredion 498 511 25 25 25 25 25 25 25
Justice
SBlI>aa1ts 277 277 277 277 277 27, 277 277 277 m
rv'ajicaidinvestiqatcrs 3 3
TotalJustice 280 280 277 277 277 277 277 277 277 277
DimeControl
,ALEatieers 127 127 127 92" 92" 92* 92" 92*
Hid"MavPatrol(Gov.rv'ansim) 2 2 2
<.
E3utra"R.iJlicSafety 1 1
TotalDimeControl 130 130 129 92 92 92 92 92
Revenue 3 4
TotalRevenue 3 4
CapitolPolice 2 2 2
TotalCapitolPolice 2 2 2
WldifeResarcescan
WldlifeEnfcrcementatieers 12
TotalWld/ifeResoIrcescan 12
GtarxfTotal 1073 0 1082 504 399 491 491 491 404 497 505
"The92ALEVEtddesauth:JrizOOstEIlbedistriWedasfollow;:
1)54Clfl"OIY,;lf>g::ntIoffieers
2)20Clfl"OIY,;lf>g::ntIIoffieers
3)1totheDeputyDiroclcr
4)12totheDistrictaticestExtraVehdes
5)5totheDiroclcr,tobedistriWedattheDiroclcr'sdiscretim
License PlateUse -- page 3of11
The history ofG.S. 14-250 reflects a recognition that some exceptions should bemade to the ueneral
gov~rnment
policy first set in 1925, but also reflects a view that the executive branch agencies ofstate are
unlikely to apply the self-disciplineneeded to keep those exceptions in check. In the face ofthis
uncertainty, the General Assemblyhas withdrawn discretionary authority granted to the Council ofState
and the Division ofMotorFleet Management-and has exercised that authority itself. It is noteworthy that
this legislative skepticism does not extend to county government, which continues to operateunder the
broad exemption, adopted in 1929, that allows most county criminaljusticevehicles to avoid marking
requirements altogether.
B. Companions to C.S. 14-250
Other statutes affecting the meaning and administration ofG.S. 14-250 have sprouted in distant regionsof
North Carolina law, particularlyin Chapter20 where sections dealing with motor vehicles are found.
Chapter 20 provides that a limited number ofthe privateplates appearing onstate-owned vehicles maybe
"fictitious." Further, it provides that in some circumstances theIegistration information on state-owned
vehicles withprivateplates can be placed in a confidential file. -
Fictitious Plates. In 1971 the General Assembly-added G.S. 114-17.1 authorizing the Commissioner of
Motor Vehicles to provide State Bureau ofInvestigation undercover agents with "motor vehicle
registration plates under assumed names using false or fictitious addresses" (S.L. 1971-942). In 1983
G.S. 18B-500 was amended to give fictitious plates to alcohol law enforcement agents on special
undercover assignments, and at the same time anew subsection (g) was added to G.S. 20-39 that allowed
the Commissioner to issue fictitious plates to Division ofMotor Vehicles undercover officers (S.L. 1983
629). Thus fictitious plates were authorized for undercoverassignments in three important state law
enforcement agencies.
Two years laterthe fictitious plates legislation was revisited to add a_subsection currently codified as G.S.
20-39(h) (S.L. 1985-767). This subsection opened anew list ofusers eligible for fictitious plates -- local
law enforcement officers on special undercover assignments. However, it also imposed safeguard~
against proliferation. First, the Commissionercould allow fictitious plates only on public vehicles.
Second, he could only issue aplate afterthe Directorofthe State Bureau ofInvestigation (SBI) reviewed
the requesting agency's rationale and concluded in writing that the action was "justified and necessary".
Thirdly, he was required to recall each plate at the end ofsix months, when requested bythe Director of
the SBI, or when he found that the need for the fictitious plate could no longerbejustified. Finally, the
number ofoutstandingplates underthis subsectionwas capped at 100.
Amendments in the 1987, 1991, and 1995 Sessions brought the fictitious plates provision to its present
form. In 1987 eligibility for G.S. 20-39(h) plates was extended to beyond "local" officers to include
"local, state or federal" officers. (S.L. 1987-552). Session Law 1991-53 added language declaring that all
ofthe private plates assigned to SBI and Alcohol Law Enforcement agents under G.S. 14-250 could be
fictitious, and that those plates would not count against the fictitious plate cap. The 1995 amendment
consolidated the several laws governing fictitious plates so that they appear in subsections (g) and (h) of
G.S. 20-39. Essentially, current law allows the State Bureau ofInvestigation, the Division ofAlcohol
Law Enforcement, and the Division ofMotor Vehicles to make fictitious any or all ofthe private plates to
which they are entitled under G.S. 14-250. The numberoffictitious plates issued to other eligible users is
limited to 125. The issuance ofthose plates requires approval from the SBI director, and the plates expire
after six months.
License Plate Use -- page 4 of11
Confidential Plates. The 1991 legislation also amended G.S. 20-56. This section originated in the 1937
Session Laws, where Chapter407 requires the then Department ofMotor Vehicles to maintain a
registration index by licenseplate number, ownername, and vehicle or engine serial number. The 1991
amendment added a section requiring aseparate, confidential registration file:
TheDivision (ofMotorVehicles) shaHmaintainaseparateregistrationfile for vehicles bearingprivatetags whichare
owneaor leasedforuse byindividuals in the foHowing categories:
(1) Members offederal, state, and local lawenforcementagencies ifthe vehiclesare used for thepurposeof
transporting, apprehending, orarrestingpersons chargedwithviolationsofthe lawsofthe UnitedStates orthe Stateof
NorthCarolina;
-(2) Agents for the Internal Revenue Service;
(3) Public officials.
Individuals in the aforementionedcategoriesmustprovide satisfactoryevidenceto theCommissionerthat their
personal safety is atrisk. This file shallbeconfidential for theuse ofthe Division.
This section creates what are generallyreferred to as "confidential plates" within the permitted uses of
privateplates on publicly owned vehicles. Whether the registration data canbe moved to the confidential
file depends upon a finding bythe Commissioner ofMotor Vehicles that personal safety is at risk. As
explained previouslY,an unlimited number ofcountylaw enforcement personnel may be issued private
plates under G.S. 14-250 for use while "transporting, apprehending, or arresting persons". Clearly an
e{Ctralayer ofprotection shielding such personnel from detection is achieved by placingthe associated
registration data in a confidential file. Also, G.S. 14:..250 enables the General Assembly to approve
private plates for stateuse, and public officials driving these vehicles might also be candidates for the
confidential fi1e.-
C. Summary Observations on Statutory History
Ifthe principle adopted in 1925}s still perceived as avalid policy, then all publiclyowned vehicles should
be identifiabI-e to the public exceptw~ere compelling evidence shows detrimental impacts that outweigh
-thepublic's right to impose accountability. The General Assemblyhas struggled to preserve the core
policywhile occasionally flirting with exceptions that accommodate special needs~argelythose of
criminaljustice agencies.
II. Administration ofth.e Current Statutes
<!'o
A. Private License Tags on State-Owned Vehicles
Based on current law one would expect to find three varieties ofprivate plates in state-owned vehicles.
The first variety would be "plain vanilla"- the simple instance where, for whatever reason, a state agency
operatingunder the allocations set forth pursuantto G.S. 14-250 chooses to register a vehiclejust as
would an ordinary citizen. The agency would receive aprivate license tag along with a conventional
registration certificate. Any person notbarred underfederal privacy laws could, by submitting the license
plate number to the Division ofMotor Vehicles, getthe name and address ofthe state agency that owns
the vehicle.
The second variety would be distinguished onlybecause the agency owning the vehicle and eligible for a
privateplateunder G.S. 14-250 petitions Division ofMotor Vehicles to place the registration information
License Plate Use -- page 5 of11
in a confidential file. Thus no person could obtain the identity ofthe vehicle owner from the Division of
Motor Vehicles by citing the license plate number. However, the registration certificate carried in the
vehicle would show the name ofthe vehicle owner.
The third and final variety would differfrom the first two because the agency owning the vehicle and
eligible for a privateplate under G.S. 14-250 requests also that information on the registration certificate
and the corresponding entryto the DMV computer files be fictitious. As in the first case, any person not
barred under federal privacy laws could, by furnishing the Division ofMotor Vehicles with a license plate
number, obtain the name and address ofthe registered owner. In this case, though, the name and address
would be false.
Forreasons not altogether clear, in 1991 the Attorney General's Office advised the Division ofMotor
Vehicles that it could not issue the "plain vanilla" privateplates for use on state-owned vehicles. Thus,
accordingto DMVstaffallprivateplates on state-ownedvehicles must be afictitious registration ora
confidentialregistration.
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B. Fictitious Registration ofState-Owned Vehicles
Responsibility for the issuance offictitious plates is shared between the Division ofMotor Vehicles
(DMV) and the State Bureau ofInvestigation. The client groups eligible for fictitious plates are (1)
Division ofMotor Vehicles undercover agents (2) Alcohol Law Enforcement agents (3) State Bureau of
Investigation agents; and (4) federal, state, and local law enforcement agents who obtain approval-from
the Director ofthe State Bureau ofInvestigationunder G.S. 20-39(h). The number ofoutstanding
fictitious registrations in the last group cannot exceed 125.
DMV Undercover Agents. The Division ofMotorFleet Management, Department ofAdministration
owns all vehicles driven byDivision ofMotor Vehicles employees. When MotorFleet Management
acquires the vehicles they are titled and registered in the name ofMotor Fleet Management and delivered
to the Division ofMotorVehicles with apermanent state license tag attached. Enforcem~ntpersonnel in
the Division ofMotor Vehicles then request a fictitious registration certificate and a c-mresponding license
tag from the Vehicle Registration Section. The original permanenUag arid registration certificate is
restored when the vehicle is returned to Motor FleetManagement. Ordinarily, Motor Fleet Management
is not advised ofthe fictitious registration.
Alcohol Law Enforcement Agents. Vehicles driven byAlcohol Law Enforcement agents are owned by
the Department ofCrime Control and Public Safety and are titled and registered to that department as they
are acquired. A request is made to the Division ofMotorVehicles for fictitious registration documents
and fictitious license tags to replace the original registration. The Division ofMotor Vehicles maintains a
manual file that identifies the outstanding fictitious registrations in ALE.
State Bureau ofInvestigation Agents. Vehicles driven by State Bureau ofInvestigation agents are owned
bythe Department ofJustice and are titled and registered to that department as they are acquired.
Initially, either "state-owned" plates orprivateplates maybe issued. Ifstate-owned, the plates are later
exchanged for privateplates with fictitious registration. Ifprivateplates are initiallyissued, the
conversionto fictitious registration will involve onlythe concoction offalse documents, while the private
plate will remain on the vehicle. TheDivision ofMotor Vehicles maintains amanual file that identifies
the outstanding fictitious registrations inthe SBI.
License PlateUse -- page 6 of11
State. LocaL or Federal Agents Requiring SBI Approval. As ofmid-February2000 the fictitious plates in
this category have onlybeen issued to local and federal agencies. For this group, the first step in
obtaining a fictitious registration is contact with the Director ofthe State Bureau ofInvestigation. The
Directormust sign a written statement finding that the request isjustified and necessary. The statement is
then taken to the Division ofMotor Vehicles, where the curre!ltregistration documents and the license tag
are exchanged for fictitious replacements. Both the SBI and the Division ofMotor Vehicles record the
fictitious registrations in this category. No more than 125 can be outstanding at one time. At the end of
February2000 the number outstanding was 34.
C. Confidential Plates on State-Owned Vehicles
Registration information on publicly owned vehicles bearingprivate license tags may be moved bythe
Division ofMotor Vehicles (DMV) into the confidential file upon request from an organization or
individual who (1) falls in one ofthe three categories cited in G.S. 20-56, and (2) can furnish evidence
that a risk to personal safetyjustifies confidential status.
The central DMV office in Raleigh handles all requests for confidential registration. State agencies may
submit their request byletter or agencypersonn'el mayappear in_person. In many cases state agencies
obtainprivate plates with confidential registration when the vehicle is first acquired. Other instances
involve exchangingpermanentplates for privateplates and shifting the registration record to the
confidential file. Registration informationremains in the confidential file until the registrant asks that it be
removed.
Division ofMotor Vehicles administrators interpret theirresponsibilityunder the confidential registration
section ofG.S. 20-59 as being limited to that of(a) serviceprovider, and (b) guarantorofconfidentiality.
The Division is unlikelyto raise questions about the credentials ofarequestor orto challenge the claim
thatpersonal safetyis at risk. However, itzealously guards access to the confidential data. Only four -
- DMV personnel directly involved in file maintenance can access the information. _
Sinceregistration information is electronicallymoved to a different file when confidential status is
granted, any inquiryby a person oragency aboutinformation regarding a specific license tag is returned
"record missing". No information is released without approval ofthe tag holder. Ifthe inquiryis pressed,
DMV notifies the holder ofthe confidential tag that an inquiryhas beenmade and identifies the party
making the inquiry.
D. Agency Compliance
The principal compliance question guiding this studyis whether the administrative processes currentlyin
place actually restrain the number ofprivateplates on state-owned vehicles to levels at orbelow the
allocations made bythe General Assembly.
Table 2 below shows the best available count offictitious (column 2) and confidential registrations
(column 3) from files ofthe Division ofMotor Vehicles and the State Bureau ofInvestigation. Where
the sum ofthese, shownin column 4, exceeds the current limits set for the agency bythe General
Assembly as required in G.S. 14-250, shownin column 5, the agency is not complying with the law.
License Plate Use -- page 7 of11
Table 2. Agency Compliance with G.S. 14-250
(1) (2) (3) (4) (5) (6)
Agency Fictitious Confidential Total Statutory In
Registration Registration Private Limit Compliance?
.
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Alcohol LawEnforcement 12 144 156 92 No
ButnerPublicSafety 2 2 0 No
- - -
State HighvvayPatrol 144 144 144 Yes
LawEnforcementSupportSvcs 20 20 0 No
DeptofHealthand HumanServices 3 3 0 No
- -
DeptofJustice 2 2 0 No
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StateBureau ofInvestigation 302 56 358 277 No
NCState University 2 2 0 No
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Wildlife Resources Commission - 12 12 12 Yes
NCJusticeAcademy 1 1 0 No
DeptofAdministration 2 2 2 Yes
MotorFleetManagement 87 87 0 No
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Division-ofMotorVehicles 26 54 80 97- Yes
. -
DeptofCorrection - 18 - 18 25 Yes
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-
-
DeptofRevenue 14 14 22 Yes
Govemor's Mansion 4 4 0 No
SecretaryofState 1 1 0 No .,.
CrimeControl and PublicSafety 1 1 0 No
OfficeofJuvenileJustice 1 1 0 No
EastCarolina University 3 3 0 No
427 484 911 671
14 Agencies NonCompliant
6 Agencies Compliant
License PlateUse -- page 8 of11
The surprising level ofnoncompliancerevealed in Table 2 might owe to several causes: (I) the data may
be inaccurate (2) the data may be misleading (3) state agencies may not be aware ofthe law; or (4)
agencies may be aware ofthe law but choose to ignore it. In reality, all ofthese factors seem to be at
work.
Fictitious registrations are not identifiable in the computerized DMV database, so a record must be
maintained manuallyin the State Bureau ofInvestigation, the Division ofMotor Vehicles, and otheruser
agencies. Counts provided by these agencies do not agree. While confidential registrations canbe
extracted from the automated database, the list ofregistrants is confusingbecause a given agencymay
register vehicles using several different versIons ofits name. -Further, in the confidential file all Motor
Fleet Management vehicles are registered to the Department ofAdministration even though they are
assigned to and used by another agency. The count ofconfidential registrations maintained by Motor
Fleet Management does not always agree with the record as reported from the Division ofMotor
Vehicles. However, when these discrepancies are considered it appears likely that Table 2, which relies
on DMV'sbreakdown ofconfidential registrations, is a conservative <;:stimate that may overstate rather
than understate the level ofcompliance.
Setting aside questions ofaccuracy, there maybe some instances where the data could be perceived as
misleading. For example, as ofmid-February2000 the State Bureau ofInvestigation has 81 moreprivate
plates than the General Assembly authorized. The Bureau claims that 54 private plates are on vehicles
that have been retired from service and are being surplused. Ifthe SBI numbers are adjusted accordingly,
noncompliance shrinks to 27 vehicles.
Some state agency administrators maybe unaware ofthe limits on private license tags ormay misinterpret
requirements because the relationship among several statutoryprovisions is unclear. Since the Division
ofMotor Vehicles has not been given a clear enforcementrole, no checks are in place to prevent an
agency from obtaining an unauthorized confidential registration.
After considering these possible causes, however, it seems most likelythat_agencies view the allocations
assignedbythe General Assembly rather casually, rationalizing that sanctions are unlikely even if
. -
violations are discovered, that minor deviations are likely to be tolerated, or that the lack ofreliable
monitoring and reporting procedures signals indifference. Some agencies shown as non-compliant, like
the Department ofCrime Control and Public Safety, havebeen heavyusers ofprivateplates for many
years and have played a role in development ofthe controlling legislation. Itis unreasonable to believe
that managers in such an agency are unfamiliarwith the relevant statutes.
E. Private Plates on Non-State Public Vehicles
Although this report focuses on state-owned vehicles, the General Assembly originallyimposed marking
requirements on state and countyvehicles. At the same time that exceptions havebeen made for state and
countyvehicles, fictitious and confidential registration has been extended to local and federal criminal
justice agencies.
The number offictitious registrations for non-state vehicles is capped at 125, while actual numberhas
remained well below that limit in recent years. Thirtyfour registrations were outstanding at mid-February
2000, down from 46 in July 1999. Presumably, the requirement that the Director ofthe State Bureau of
License Plate Use -- page 9 of11