S 326

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No. 153. An act relating to miscellaneous amendments to laws relating to
motor vehicles.
                                     (S.326)
It is hereby enacted by the General Assembly of the State of Vermont:
                    * * * Nondriver Identification Cards * * *
Sec. 1. 23 V.S.A. § 115 is amended to read:
§ 115. NONDRIVER IDENTIFICATION CARDS
   (a)(1) Any Vermont resident who does not have an operator’s license may
make application to the Commissioner and be issued an identification card that
is attested by the Commissioner as to true name, correct age, residential
address unless the listing of another address is requested by the applicant or is
otherwise authorized by law, and any other identifying data as the
Commissioner may require that shall include, in the case of minor applicants,
the written consent of the applicant’s parent, guardian, or other person standing
in loco parentis.
                                      ***
      (4) An individual shall not hold at the same time an operator’s license
and a nondriver identification card issued pursuant to this section.
                                      ***
   (g)(1) An identification card issued to a first-time applicant and any
subsequent renewals by that person individual shall contain a photograph or
imaged likeness of the applicant.
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      (2) The photographic identification card shall be available at a location
designated by the Commissioner.
      (3)(A) An Except as otherwise provided pursuant to subdivision (B) of
this subdivision (g)(3), an individual issued an identification card under this
subsection that contains an imaged likeness section may renew the individual’s
identification card by mail.
          (B) Except that a renewal by an individual required to have a
photograph or imaged likeness under this subsection must be made An
identification card issued pursuant to this section shall be renewed in person so
that an updated imaged likeness of the individual is obtained not less often than
at least once every nine years to permit an updated photograph or imaged
likeness of the holder to be obtained.
                                         ***
   (k) At the option of the applicant, An applicant shall surrender the
applicant’s valid Vermont license may be surrendered in connection with an
application for an identification card pursuant to this section. In those
instances, the fee due under subsection (a) of this section shall be reduced by:
                                         ***
                     * * * Insufficient Funds for Fees * * *
Sec. 2. 23 V.S.A. § 110 is amended to read:
§ 110. BAD CHECKS INSUFFICIENT FUNDS RECEIVED FOR FEES
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   (a) Whenever any check or electronic funds transfer, including a credit or
debit charge, issued in payment of any fee or for any other purpose is tendered
to the Department of Motor Vehicles and payment is not honored by the bank
on which the check is drawn or entity to which the electronic funds transfer is
submitted, the Commissioner shall send a written notice of its nonpayment to
the maker or person presenting the check and if the check is not immediately
made good who provided insufficient funds and, if the required amounts are
not promptly paid as required by the Commissioner, the Commissioner shall
suspend the license or registration of the person or persons. In no case shall
the license or registration be reinstated until settlement has been made in full.
Settlement in full shall also include the payment of any penalties assessed by
the State Treasurer.
   (b) The Commissioner may require payment for any transaction solely by
certified check or in cash from persons whose licenses or registrations are
under suspension pursuant to subsection (a) of this section or from persons
who have repeatedly tendered checks or electronic payments to the Department
that have not been honored by the bank on which drawn.
                                      ***
* * * Penalties for Operation of Prohibited Vehicles in Smugglers’ Notch * * *
Sec. 3. 23 V.S.A. § 1006b is amended to read:
§ 1006b. SMUGGLERS’ NOTCH; WINTER CLOSURE OF VERMONT
          ROUTE 108; VEHICLE OPERATION PROHIBITED
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                                       ***
   (b) Vehicle operation prohibition.
                                       ***
      (2) The employer of an operator who is operating a vehicle in the scope
of employment and violates this subsection or the operator of a vehicle who is
operating a vehicle for personal purposes and violates this subsection shall be
subject to a civil penalty of $1,000.00 $10,000.00 or, if the violation results in
substantially impeding the flow of traffic on Vermont Route 108, a civil
penalty of $2,000.00 $20,000.00. For a second or subsequent conviction
within a three-year period, the applicable penalty shall be doubled.
                                       ***
Sec. 4. SMUGGLERS’ NOTCH; UPDATED SIGNAGE
   The Agency of Transportation shall update signage leading to Smugglers’
Notch that relates to the prohibitions and penalties set forth in 23 V.S.A.
§ 1006b to make drivers aware of the increased penalties for operating an
oversize vehicle in Smugglers’ Notch that are imposed pursuant to Sec. 3 of
this act.
                            * * * Salvage Titles * * *
Sec. 5. 23 V.S.A. § 2091 is amended to read:
§ 2091. SALVAGE CERTIFICATES OF TITLE; FORWARDING OF
            PLATES AND TITLES OF CRUSHED VEHICLES
                                       ***
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   (b)(1) Except as provided in subsection (c) of this section, the application
shall be accompanied by:
      (1)(A) any certificate of title for the vehicle; and
      (2)(B) any other information or documents that the Commissioner may
reasonably require to establish ownership of the vehicle and the existence or
nonexistence of any security interest in the vehicle.
      (2)(A) Supporting documents used to transfer ownership of a vehicle to
an insurer following payment of damages:
             (i) shall not require a notarized signature;
             (ii) may be signed electronically; and
             (iii) may be printed on hard copy.
          (B) As used in this subdivision (b)(2):
             (i) “Signed electronically” means that a person, with the intent to
sign the record, uses an electronic sound, symbol, or process attached to or
logically associated with a record and executed or adopted by a person. For
purposes of this subdivision (b)(2), an electronic signature on a supporting
document shall utilize a secure authentication system that identifies the
signatory with a degree of certainty equivalent to or greater than level 2 as
described in the National Institute of Standards and Technology’s June 2017
Digital Identity Guidelines, NIST Special Publication 800-63-3, Revision 3.
             (ii) “Supporting documents” include bills of sale, title documents,
odometer disclosure forms, and powers of attorney.
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          (C) An insurer shall indemnify and hold harmless the Department for
any claims arising from the issuance of a certificate of title based upon
supporting documents meeting the requirements of this subdivision (b)(2).
                                        ***
                            * * * Duplicate Titles * * *
Sec. 6. 23 V.S.A. § 2022 is amended to read:
§ 2022. DUPLICATE CERTIFICATE
   (a) If a certificate of title is lost, stolen, mutilated, or destroyed or becomes
illegible, the first lienholder or, if none, the owner or legal representative of the
owner named in the certificate, as shown by the records of the Commissioner,
shall promptly make application for and may obtain a duplicate title upon
furnishing information satisfactory to the Commissioner. It The duplicate title
shall be mailed or, if the person is at a Department of Motor Vehicles location,
hand delivered to the first lienholder named in it the title or, if none, to the
owner.
                                        ***
Sec. 7. 23 V.S.A. § 3801 is amended to read:
§ 3801. DEFINITIONS
   Except when the context otherwise requires, as used in this chapter:
                                        ***
      (20) “Title or certificate of title” means a written instrument or
document that certifies ownership of a vessel, snowmobile, or all-terrain
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vehicle and is issued by the Commissioner or equivalent official of another
jurisdiction.
                                       ***
Sec. 8. 23 V.S.A. § 3815 is amended to read:
§ 3815. DUPLICATE CERTIFICATE
   (a) If a certificate of title is lost, stolen, mutilated, or destroyed or becomes
illegible, the first lienholder or, if none, the owner or legal representative of the
owner named in the certificate of title, as shown by the records of the
Commissioner, shall promptly make application for and may obtain a duplicate
title upon furnishing information satisfactory to the Commissioner. It The
duplicate title shall be mailed or, if the person is at a Department of Motor
Vehicles location, hand delivered to the first lienholder named in it the title or,
if none, to the owner.
                                       ***
                             * * * Title Appeals * * *
Sec. 9. 23 V.S.A. § 2005 is amended to read:
§ 2005. APPEAL
   A person aggrieved by an act or omission of the Commissioner under this
chapter may appeal to the Civil Division of the Washington Unit of the
Superior Court for Washington County in the same manner as is provided for
in other civil actions.
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                       * * * Abandoned Motor Vehicles * * *
Sec. 10. 23 V.S.A. § 2012 is amended to read:
§ 2012. EXEMPTED VEHICLES
   No certificate of title need be obtained for:
                                       ***
      (2) a vehicle:
          (A) owned by a manufacturer or dealer and held for sale, even though
incidentally moved on the highway or used for purposes of testing or
demonstration, or;
          (B) used by an educational institution approved by the Agency of
Education for driver training purposes,; or
          (C) a vehicle used by a manufacturer solely for testing;
                                       ***
Sec. 11. 23 V.S.A. § 2158 is amended to read:
§ 2158. FEES FOR TOWING; PUBLIC PROPERTY; FUNDING
   (a)(1) A towing service may charge a fee of up to $125.00 $250.00 for
towing an abandoned motor vehicle from public property under the provisions
of sections 2151–2157 of this subchapter.
      (2) This fee shall be paid to:
          (A) the a towing service upon the issuance by the Department of
Motor Vehicles of a certificate of abandoned motor vehicles vehicle under
section 2156 of this title; or
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          (B) the Agency of Transportation if the Agency has a vehicle towed
from a State right-of-way and submits proof acceptable to the Commissioner
that the Agency has paid a towing service to tow the vehicle from the State
right-of-way.
      (3) The Commissioner of Motor Vehicles shall notify the Commissioner
of Finance and Management, who shall issue payment to the towing service or
Agency of Transportation, as applicable, for vehicles removed from public
property.
                                     ***
Sec. 11a. 23 V.S.A. § 2154 is amended to read:
§ 2154. IDENTIFICATION AND RECLAMATION OF ABANDONED
          MOTOR VEHICLES
   (a) The Department shall make a reasonable attempt to locate and provide
notice to an owner of an abandoned motor vehicle.
                                     ***
      (3) The Department shall maintain and keep current on its website a list
of vehicles for which an application for a certificate of abandoned motor
vehicle has been filed and contact information for Department personnel to
whom evidence of ownership may be presented under subsection (b) of this
section. At a minimum and to the extent permitted by federal law, the list shall
include the vehicle’s make; registration plate number or public vehicle
identification number, or both if available; model; model year; and the name
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and contact information of the person who applied for the certificate of
abandoned motor vehicle.
                                       ***
                           * * * Diesel Fuel Tax * * *
Sec. 12. 23 V.S.A. § 3015 is amended to read:
§ 3015. COMPUTATION AND PAYMENT OF TAX
   (a) Each report required under section 3014 of this title from licensed
distributors, dealers, or users shall be accompanied by evidence of an
electronic funds transfer payment or a remittance payable to the Department of
Motor Vehicles for the amount of tax due, which shall be computed and
transmitted in the following manner:
                                       ***
      (3)(A)(b)(1) Distributors and dealers filing a report required under
subsection 3014(a) of this title shall transmit payment of taxes due to the
Department of Motor Vehicles by means of an electronic funds transfer.
          (B)(2) Users filing a report required under subsection 3014(b) of this
title shall transmit payment of taxes due to the Department of Motor Vehicles
by means of an electronic funds transfer payment or by a remittance through
the U.S. mail. If a remittance is sent through the U.S. mail properly addressed
to the Department of Motor Vehicles, it shall be deemed received on the date
shown by the postmark on the envelope containing the report only for purposes
of avoiding penalty and interest. In the event a mailing date is affixed to the
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envelope by a machine owned by or under the control of the person submitting
the report and the U.S. Post Office has corrected or changed the date stamped
thereon by causing the official U.S. Post Office postmark to also be imprinted
on the envelope, the date shown by the official Post Office postmark shall be
the accepted date if different from the original postmark.
      (4)(c) All taxes, interest, user license fees, and penalties collected by the
Department of Motor Vehicles under this chapter shall be paid immediately to
the State Treasurer and credited to the Transportation Fund.
      (5)(d) Notwithstanding subdivision (4) subsection (c) of this section, the
one cent per gallon fee imposed by this chapter shall be deposited into the
Petroleum Cleanup Fund established by 10 V.S.A. § 1941. These fees shall be
deemed the petroleum distributor licensing fee established by 10 V.S.A.
§ 1942.
                     * * * Operation of Snowmobiles * * *
Sec. 13. 23 V.S.A. § 3207 is amended to read:
§ 3207. PENALTIES AND REVOCATION OR SUSPENSION OF
          REGISTRATION
                                       ***
   (c) A person who violates any of the following sections of this title shall be
subject to a civil penalty of $135.00 for each violation:
      § 3202 operation of an unregistered snowmobile
                                       ***
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   (g) A person who violates the provisions of section 3202 of this chapter
shall be subject to a civil penalty of $450.00 for a first offense and $500.00 for
a second or subsequent offense within a three-year period.
   (h) The Commissioner or his or her the Commissioner’s authorized agent
may suspend or revoke the registration of any snowmobile registered in this
State and repossess the number and certificate to it, when he or she the
Commissioner is satisfied that:
                                      ***
   (h)(i) Civil penalties established under this section shall be mandatory and
may shall not be reduced.
                   * * * Commercial Driver’s Licenses * * *
Sec. 14. 23 V.S.A. § 4107 is amended to read:
§ 4107. COMMERCIAL DRIVER’S LICENSE REQUIRED
                                      ***
   (d)(1) Notwithstanding the provisions of this section, during an emergency
declared by the Governor, an employee of a State agency or a Vermont
municipality may operate a commercial motor vehicle with a weight of 26,001
or more pounds without being required to hold a commercial driver’s license
while the emergency or emergency condition is ongoing if:
          (A) expressly permitted to do so pursuant to the terms of the
Governor’s declaration; and
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          (B) the individual is performing official duties or activities related to
the execution of emergency governmental functions pursuant to 49 C.F.R.
§ 383.3(d)(2).
      (2) An individual operating a vehicle pursuant to the provisions of this
subsection shall have a valid operator’s license issued pursuant to chapter 9 of
this title or the applicable laws of another state.
      (3) As used in this subsection, “emergency” means a situation,
condition, or event that involves significant imminent or ongoing risk to public
health and safety, infrastructure, or property.
Sec. 15. 23 V.S.A. § 4110 is amended to read:
§ 4110. APPLICATION FOR COMMERCIAL DRIVER’S LICENSE OR
          COMMERCIAL LEARNER’S PERMIT
   (a) The application for a commercial driver’s license or commercial
learner’s permit shall include the following:
                                        ***
      (8)(A) The applicable fee for the commercial driver’s license being
applied for. The four-year fee for a commercial driver’s license shall be
$108.00. The two-year fee shall be $72.00. The one-year fee for a
nondomiciled commercial driver’s license shall be $40.00. In those instances
where the applicant surrenders a valid Vermont Class D license, the total fees
due shall be reduced by:
                                        ***
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Sec. 16. 23 V.S.A. § 4125 is amended to read:
§ 4125. TEXTING VIOLATIONS; HANDHELD MOBILE TELEPHONE
          VIOLATIONS
   (a) Definitions. As used in this section,:
      (1) “driving” “Driving” means operating a commercial motor vehicle on
a public highway, including while temporarily stationary because of traffic, a
traffic control device, or other momentary delays. “Driving” does not include
operating a commercial motor vehicle with or without the motor running when
the operator has moved the vehicle to the side of or off a highway and has
halted in a location where the vehicle can safely remain stationary.
      (2) “Hands-free use” means the use of a portable electronic device
without utilizing either hand by employing an internal feature of, or an
attachment to, the device or the commercial motor vehicle.
      (3) “Public highway” means a State or municipal highway as defined in
19 V.S.A. § 1(12).
      (4) “Securely mounted” means the portable electronic device is placed
in an accessory specifically designed or built to support the hands-free use of a
portable electronic device that is not affixed to the windshield in violation of
section 1125 of this title and either:
          (A) is utilized in accordance with manufacturer specifications; or
          (B) causes the portable electronic device to remain completely
stationary under typical driving conditions.
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      (5) “Texting” means the reading or manual composing or sending of
electronic communications, including text messages, instant messages, or
email, using a portable electronic device.
      (6) “Use” means the use of a portable electronic device in any way that
is not a hands-free use, including an operator of a motor vehicle holding a
portable electronic device in the operator’s hand or hands while operating a
motor vehicle.
   (b) General prohibition on texting.
      (1) No operator shall engage in texting while driving a commercial
motor vehicle on a public highway in Vermont or in a location that is either
temporarily or permanently open to the public or the general circulation of
vehicles.
      (2) Texting while driving is permissible by operators of a commercial
motor vehicle when necessary to communicate with law enforcement officials
or other emergency services.
      (3) No person may individual shall be issued traffic complaints alleging
a violation of this section and a violation of section 1099 of this title from the
same incident.
                                       ***
   (e) The prohibitions set forth in this section do not apply to:
      (1) hands-free use;
      (2) the activation or deactivation of hands-free use;
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      (3) the use of a global positioning or navigation system that is installed
by the manufacturer of the commercial motor vehicle or securely mounted in
the vehicle; or
      (4) instances where the operator has moved the vehicle to the side of or
off the public highway and has stopped the vehicle, with or without the motor
running, in a location where the vehicle can safely and lawfully remain
stationary.
                                      ***
                    * * * Motorboat Validation Stickers * * *
Sec. 17. 23 V.S.A. § 3305 is amended to read:
§ 3305. FEES
                                      ***
   (b)(1) Annually or biennially, the owner of each motorboat required to be
registered by this State shall file an application for a number with the
Commissioner of Motor Vehicles on forms approved by him or her the
Commissioner.
      (2) The application shall be signed by the owner of the motorboat and
shall be accompanied by:
          (A) an annual fee of $31.00, or a biennial fee of $57.00, for a
motorboat in class A; by
          (B) an annual fee of $49.00, or a biennial fee of $93.00, for a
motorboat in class 1; by
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          (C) an annual fee of $80.00, or a biennial fee of $155.00, for a
motorboat in class 2; by or
          (D) an annual fee of $153.00, or a biennial fee of $303.00, for a
motorboat in class 3.
      (3)(A) Upon receipt of the application in approved form, the
Commissioner shall enter the application upon the records of the Department
of Motor Vehicles and issue to the applicant a registration certificate stating
the number awarded to the motorboat and the name and address of the owner.
          (B) The owner shall paint on or attach to each side of the bow of the
motorboat the identification number in such the manner as may be prescribed
by rules of the Commissioner in order that it may be clearly visible. Validation
stickers shall be placed within six inches preceding the registration number on
the port side of the motorboat and within six inches following the registration
number on the starboard side of the motorboat.
          (C) The registration shall be void one year from the first day of the
month following the month of issue in the case of annual registrations or void
two years from the first day of the month following the month of issue in the
case of biennial registrations.
          (D) A motorboat of less than 10 horsepower used as a tender to a
registered motorboat shall be deemed registered, at no additional cost, and
shall have painted or attached to both sides of the bow the same registration
number as the registered motorboat with the number “1” after the number.
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          (E) The number shall be maintained in legible condition.
          (F) The registration certificate shall be pocket size and shall be
available at all times for inspection on the motorboat for which issued,
whenever the motorboat is in operation.
          (G) A duplicate registration may be obtained upon payment of a fee
of $3.00 to the Commissioner.
          (H) Registration fees shall be allocated in accordance with section
3319 of this title.
   (c) A person engaged in the business of selling or exchanging dealer in
motorboats, as defined in subdivision 4(8) of this title, of a type otherwise
required to be registered by this subchapter shall register and obtain
registration certificates for use as described under subdivision (1) of this
subsection, subject to the requirements of chapter 7 of this title. A
manufacturer of motorboats may register and obtain registration certificates
under this section.
      (1) A dealer motorboat registration number may be used:
          (A) for the purpose of testing or adjusting motorboats in the
immediate vicinity of his or her the dealer’s place of business;
                                       ***
          (C) for demonstration when the prospective purchaser is operating
the motorboat and is not accompanied by the dealer or his or her the dealer’s
employee, but not for more than three days;
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                                       ***
      (4) The Commissioner shall issue a registration certificate of number for
each identifying number awarded to the dealer in the manner described in
subsection (a)(b) of this section, except that a motorboat shall not be described
in the certificate. A dealer’s registration certificate expires one year from the
first day of the month of issuance.
      (5) A dealer’s identifying number shall be displayed as required by
subsection (a)(b) of this section except that the number may be temporarily
attached.
                                       ***
   (d)(1) Registration of a motorboat ends when the owner transfers title to
another. The former owner shall immediately return directly to the
Commissioner the registration certificate previously assigned to the transferred
motorboat with the date of sale and the name and residence of the new owner
endorsed on the back of the certificate.
      (2) When a person transfers the ownership of a registered motorboat to
another, files a new application, and pays a fee of $6.00, he or she the person
may have registered in his or her the person’s name another motorboat of the
same class for the remainder of the registration period without payment of any
additional registration fee. However, if the fee for the registration of the
motorboat sought to be registered is greater than the registration fee for the
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transferred motorboat, the applicant shall pay the difference between the fee
first paid and the fee for the class of motorboat sought to be registered.
                                       ***
   (g) The owner shall notify the Commissioner of the transfer of any part of
the owner’s interest other than the creation of a security interest in a motorboat
numbered in this State under subsections (a) and (b) and (c) of this section or
of the destruction or abandonment of the motorboat, within 15 days after the
transfer, destruction, or abandonment. The transfer, destruction, or
abandonment shall end the certificate of number for the motorboat except that
in the case of a transfer of a part interest that does not affect the owner’s right
to operate the motorboat, the transfer shall not end the certificate of number.
   (h) Any holder of a registration certificate shall notify the Commissioner
within 15 days if his or her the holder’s address ceases to be the address
appearing on the certificate and shall, as a part of the notification, furnish the
Commissioner with his or her the holder’s new address. The Commissioner
may provide by rule for the surrender of the certificate bearing the former
address and its replacement with a certificate bearing the new address or for
the alteration of an outstanding certificate to show the new address of the
holder.
                                       ***
                      * * * Personal Flotation Devices * * *
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Sec. 18. 23 V.S.A. § 3306 is amended to read:
§ 3306. LIGHTS AND EQUIPMENT
                                       ***
   (b)(1) Personal flotation devices. Each vessel, except sailboards, shall,
consistent with federal regulations, carry for each individual aboard at least
one wearable U.S. Coast Guard-approved personal flotation device that is in
good and serviceable condition and capable of being used in accordance with
the U.S. Coast Guard approval label.
                                       ***
      (4) Cold weather.
          (A) Except as otherwise provided pursuant to subdivision (B) of this
subdivision (b)(4), on or before May 1 of each year and on or after November
1 of each year, all individuals aboard a vessel, while under way and the
individual is on an open deck, shall wear a properly secured wearable U.S.
Coast Guard–approved personal flotation device as intended by the
manufacturer.
          (B) The requirements of this subdivision (b)(4) shall not apply to an
individual who is:
             (i) aboard a vessel that is located in water that is not more than
three feet deep; and
             (ii) actively engaged in hunting or bow fishing and who holds a
valid license issued under 10 V.S.A. part 4.
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          (C) A violation of this subdivision (b)(4) shall not be subject to the
penalty set forth in section 3317 of this chapter or constitute a traffic violation
pursuant to section 2302 of this title.
      (5) Inspected commercial vessels. U.S. Coast Guard-inspected
commercial vessels shall be exempt from the provisions of this subsection.
                                          ***
Sec. 19. PERSONAL FLOTATION DEVICES; COLD WEATHER
          REQUIREMENTS; EDUCATION AND OUTREACH
   On or before September 30, 2026, the Department of Public Safety, in
consultation with the U.S. Coast Guard and the Departments of Fish and
Wildlife, of Forests, Parks, and Recreation, of Motor Vehicles, and of Health,
shall develop and implement a public education and outreach campaign to
make the public aware of the requirements under 23 V.S.A. § 3306(b)(4)
related to the use of personal flotation devices from November 1 through May
1. The outreach campaign shall include online and written information, which
may be distributed to municipalities, retailers, and public and water safety
organizations.
                             * * * Kei Vehicles * * *
Sec. 20. 23 V.S.A. § 4 is amended to read:
§ 4. DEFINITIONS
   Except as may otherwise be provided by law, and unless the context
otherwise requires in statutes relating to motor vehicles and enforcement of the
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law regulating vehicles, as provided in this title and 20 V.S.A. part 5, the
following definitions shall apply:
                                       ***
       (28) “Pleasure car” shall include includes all motor vehicles not
otherwise defined in this title and shall include includes plug-in electric
vehicles, battery electric vehicles, or plug-in hybrid electric vehicles as defined
pursuant to subdivision (85) of this section, and kei vehicles as defined
pursuant to subdivision (90) of this section.
                                       ***
       (72) “Farm truck” means a motor truck or kei truck that, at the option of
the owner, may be registered under the provisions of subsection 367(f) of this
title or may be unregistered when used in accordance with subsection 370(b) of
this title.
                                       ***
       (89) “Kei truck” means a kei vehicle that is designed, used, or
maintained primarily for the transportation of property.
       (90) “Kei vehicle” means a motor vehicle that has four wheels, an
engine displacement of 660 cubic centimeters or less, an overall length of 130
inches or less, an overall height of 78 inches or less, and an overall width of 60
inches or less.
Sec. 21. 23 V.S.A. § 1044 is added to read:
§ 1044. OPERATION OF KEI VEHICLES
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   (a) A kei vehicle registered as a pleasure car shall be subject to all
provisions of this title that are applicable to pleasure cars.
   (b) A kei truck registered as a farm truck shall be subject to all provisions
of this title that are applicable to farm trucks.
   (c) The Traffic Committee and political subdivisions of this State shall not
adopt any rules or ordinances that would have the effect of prohibiting:
      (1) a kei vehicle that is registered as a pleasure car from being operated
in the same manner and locations as other pleasure cars; and
      (2) a kei truck that is registered as a farm truck from being operated in
the same manner and locations as other farm trucks.
                          * * * Inspection Manual * * *
Sec. 22. INSPECTION MANUAL; AMENDMENT
   (a)(1) The Department of Motor Vehicles shall amend the inspection
manual to increase its focus on vehicle conditions that constitute genuine
safety issues; eliminate outdated procedures; and provide clear, consistent
guidance for both inspection mechanics and members of the public.
      (2) It is the intent of the General Assembly that the amendments to the
inspection manual adopted pursuant to this section shall ensure that:
          (A) the inspection manual only requires failure of an inspection
when, as determined by the Commissioner, the condition of a vehicle system
or component constitutes an immediate safety risk; and
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          (B) a vehicle owner shall be advised of conditions of vehicle systems
and components that do not constitute an immediate safety risk but may
become a safety risk at some time in the future.
      (3) In preparing the amendments to the inspection manual, the
Department shall specifically determine whether amendments to the provisions
relating to the following vehicle systems and components are necessary to
comply with the legislative intent set forth in subdivision (2) of this subsection:
          (A) tires;
          (B) power steering;
          (C) suspension;
          (D) brake rotors;
          (E) lighting;
          (F) electrical systems and components;
          (G) windshield;
          (H) windows;
          (I) windshield wipers;
          (J) vehicle body; and
          (K) in the discretion of the Commissioner, any other vehicle systems
or components.
      (4) In preparing the amendments to the inspection manual, the
Department shall determine whether any tests or procedures require
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amendment or elimination, including the on-highway road test for brakes and
the headlamp aiming test.
      (5) In preparing the amendments to the inspection manual, the
Department shall provide additional visual guidance regarding when certain
conditions warrant failure of an inspection.
   (b) On or before August 1, 2026, the Department of Motor Vehicles shall:
      (1) file with the Secretary of State pursuant to the provisions of 3 V.S.A.
§ 838 proposed amendments to the Inspection of Motor Vehicles rules (CVR
14-050-022) necessary to implement the provisions of this section; and
      (2) adopt emergency rules pursuant to 3 V.S.A. § 844 to implement the
provisions of this section while permanent rule amendments are pending,
which shall be deemed to have met the standard for emergency rulemaking set
forth in 3 V.S.A. § 844(a).
   (c) The Commissioner of Motor Vehicles shall submit to the House and
Senate Committees on Transportation the following reports regarding the rule
amendments proposed pursuant to this section:
      (1) Not more than five days after the Department files proposed rule
amendments to the Inspection of Motor Vehicles rules (CVR 14-050-022) with
the Secretary of State pursuant to 3 V.S.A. § 838, the Commissioner shall
submit a summary of the proposed amendments and an annotated copy of the
inspection manual that shows the proposed changes.
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      (2) Not more than five days after the Department files final proposed
rule amendments to the Inspection of Motor Vehicles rules (CVR 14-050-022)
with the Secretary of State and Legislative Committee on Administrative Rules
pursuant to 3 V.S.A. § 841, the Commissioner shall submit a summary of the
proposed amendments, an annotated copy of the inspection manual that shows
the proposed changes, and a copy of the responsiveness summary, if any, that
is submitted with the final proposed rules pursuant to 3 V.S.A. § 841(b)(2).
      (3) Not more than five days after the Department files the adopted rule
amendments to the Inspection of Motor Vehicles rules (CVR 14-050-022) with
the Secretary of State and Legislative Committee on Administrative Rules
pursuant to 3 V.S.A. § 843, the Commissioner shall submit a brief written
statement of the date on which the rule amendments were submitted pursuant
to 3 V.S.A. § 843, the effective date of the rule amendments, and any changes
to the final proposed rule that were approved by the Legislative Committee on
Administrative Rules.
   (d) Nothing in this section shall be construed to permit the Department of
Motor Vehicles to amend the rules relating to emissions inspections for motor
vehicles.
                  * * * Limited-Use Specialty Vehicles * * *
Sec. 23. 23 V.S.A. § 4 is amended to read:
§ 4. DEFINITIONS
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   Except as may otherwise be provided by law, and unless the context
otherwise requires in statutes relating to motor vehicles and enforcement of the
law regulating vehicles, as provided in this title and 20 V.S.A. part 5, the
following definitions shall apply:
                                       ***
      (91) “Limited-use specialty vehicle” means a motor vehicle that is:
          (A) built by either:
             (i) a manufacturer that manufactures not more than 325 vehicles
per year for sale in the United States; or
             (ii) an individual and not for resale;
          (B) maintained solely for occasional transportation, including
exhibitions, club activities, parades, and other functions of public interest; and
          (C) not used for daily transportation of passengers or property on any
highway.
Sec. 24. 23 V.S.A. § 375 is added to read:
§ 375. LIMITED-USE SPECIALTY VEHICLES
   (a) The Commissioner shall issue a certificate of registration for not more
than 12 additional limited-use specialty vehicles per year.
   (b) A vehicle that has been registered as a limited-use specialty vehicle
shall not be permitted to be registered as any other type of vehicle.
   (c) The annual fee for registration of a limited-use specialty vehicle shall be
$26.00.
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   (d) A vehicle registered under this section may be used on public
highways:
      (1) in exhibitions, club activities, parades, and other functions of public
interest; and
      (2) for occasional transportation of passengers or property, not to exceed
one day per week.
Sec. 25. 23 V.S.A. § 1222 is amended to read:
§ 1222. INSPECTION OF REGISTERED VEHICLES
                                       ***
   (f) Notwithstanding the provisions of subsection (a) of this section, a
limited-use specialty vehicle registered pursuant to section 375 of this title
shall undergo a safety inspection and visual emissions inspection each year but
shall not be required to undergo an OBD systems inspection.
                            * * * License Plates * * *
Sec. 26. 23 V.S.A. § 511 is amended to read:
§ 511. MANNER OF DISPLAY
   (a) Number plates.
      (1) A motor vehicle operated on any highway shall have displayed in a
conspicuous place either one or two number plates as the Commissioner may
require. Such The number plates shall be furnished by the Commissioner and
shall show the number assigned to such the vehicle by the Commissioner. If
only one number plate is furnished, the same plate shall be securely attached to
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the rear of the vehicle. If two are furnished, one shall be securely attached to
the rear and one to the front of the vehicle.
      (2) Except as otherwise provided by law:
          (A) The number Number plates shall be kept entirely unobscured,
and the numerals and letters thereon on the plates shall be plainly legible at all
times.
          (B) A person shall not color, tint, or change in any manner the
numerals, letters, or background of the plate from their appearance at the time
the plate was issued.
          (C) A person shall not cover or obscure any numerals or letters on a
number plate with any material or substance.
      (3) They Number plates shall be kept horizontal, shall be so fastened as
not to swing, excepting, however, there may be installed on a motor truck or
truck tractor a device that would, upon contact with a substantial object, permit
the rear number plate to swing toward the front of the vehicle, provided such
device automatically returns the number plate to its original rigid position after
contact is released, and the ground clearance of the lower edges thereof shall
be established by the Commissioner pursuant to the provisions of 3 V.S.A.
chapter 25.
                                       ***
   (e) Temporary and in-transit registration plates. A motor vehicle issued a
temporary or in-transit registration plate under sections section 312, 458, 463,
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and 516-518, or 517 of this title operated on any highway shall have the
temporary or in-transit registration plate displayed horizontally in a
conspicuous place on the rear of the vehicle, including in the rear window.
The temporary or in-transit registration plate shall be kept entirely unobscured,
and the numerals and letters thereon on the plate shall be plainly legible at all
times as provided pursuant to subsection (a) of this section.
Sec. 27. REPEAL
   23 V.S.A. § 518 (electronic issuance of temporary plate and temporary
registration) is repealed.
* * * Tax Record Confidentiality; Disclosure; Agency of Transportation * * *
Sec. 28. 32 V.S.A. § 3102 is amended to read:
§ 3102. CONFIDENTIALITY OF TAX RECORDS
                                       ***
   (e) The Commissioner may, in the Commissioner’s discretion and subject
to such conditions and requirements as the Commissioner may provide,
including any confidentiality requirements of the Internal Revenue Service,
disclose a return or return information:
                                       ***
      (25) To the Agency of Transportation, provided that the disclosure
relates to tax revenue generated on the premises of airports in the State and is
necessary to demonstrate compliance with Federal Aviation Administration
grant funding requirements relating to airport revenue.
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                                       ***
                  * * * Motorcycle Exhaust Requirements * * *
Sec. 29. 23 V.S.A. § 1260 is added to read:
§ 1260. MOTORCYCLE EXHAUST; EXCESSIVE NOISE;
          PROHIBITIONS
   (a) A motorcycle operated on a highway shall be equipped with an exhaust
system that includes a muffler or other mechanical device designed to reduce
the noise emitted by the motorcycle.
   (b) A motorcycle shall be in violation of this section if the motorcycle’s
exhaust system:
      (1) has missing or removed internal baffles;
      (2) has a cutout or bypass;
      (3) has been modified to bypass the muffler system;
      (4) is not equipped with a muffler that meets the requirements of
40 C.F.R. § 205.169; or
      (5) is a straight-pipe or similar type of exhaust system that does not
include any mechanical features to reduce the noise emitted by the motorcycle.
   (c)(1) A motorcycle that violates the requirements of this section shall not
pass an inspection required under section 1222 of this chapter.
      (2) Notwithstanding subdivision (1) of this subsection, if the orientation
or location of a motorcycle’s muffler prevents an inspection mechanic from
reasonably determining if the muffler has a label certifying compliance with
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40 C.F.R. § 205.169, the inspection mechanic shall presume that the muffler
meets the requirements of 40 C.F.R. § 205.169.
   (d) The provisions of this section shall not apply when a motorcycle is
operated in a race, contest, or demonstration of speed or skill at an authorized
public exhibition held in accordance with applicable State and municipal laws.
Sec. 30. MOTORCYCLE EXHAUST; INSPECTION MANUAL;
          RULEMAKING
   The Commissioner of Motor Vehicles shall, pursuant to the provisions of
3 V.S.A. chapter 25, amend the Inspection of Motor Vehicles rules (CVR 14-
050-022) as necessary to implement the provisions of 23 V.S.A. § 1260.
                             * * * Effective Date * * *
Sec. 31. EFFECTIVE DATE
   This act shall take effect on July 1, 2026.
Date Governor signed bill: June 16, 2026
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