H.B. 938
GENERAL ASSEMBLY OF NORTH CAROLINA
Apr 30, 2024
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH30434-MVz-27F
Short Title: GSC Moral Turpitude/Occupational Licensure. (Public)
Sponsors: Representative Davis.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO CLARIFY THE PROHIBITION ON DENYING LICENSURE BASED ON A
3 DETERMINATION THAT A CONVICTION IS FOR A CRIME OF MORAL
4 TURPITUDE, TO MAKE CORRESPONDING CHANGES TO OCCUPATIONAL AND
5 STATE AGENCY LICENSURE STATUTES, AND TO MAKE OTHER TECHNICAL
6 CORRECTIONS.
7 The General Assembly of North Carolina enacts:
8 SECTION 1. G.S. 93B-8.1 reads as rewritten:
9 "§ 93B-8.1. Use of criminal history records.
10 (a) The following definitions apply in this section:
11 (1) Applicant. – An individual who makes application for licensure from a board.
12 (2) Board. – An occupational licensing board or a State agency licensing board as
13 defined in G.S. 93B-1.
14 (3) Criminal history record. – A State or federal history of conviction of a crime,
15 whether a misdemeanor or felony, that bears upon an applicant's or a licensee's
16 fitness to be licensed or disciplined.felony.
17 (3a) Deny licensure or denies licensure. – To refuse to issue a license to an
18 applicant, to refuse to renew the license of a licensee, or to revoke the license
19 of a licensee.
20 (4) Licensee. – An individual who has obtained a license to engage in or represent
21 himself or herself to be a member of a particular profession or occupation.
22 (b) Unless federal law governing a particular board provides otherwise, a board may deny
23 an applicant licensure on the basis of a conviction of a crime only if the board finds that the
24 applicant's criminal conviction history is directly related to the duties and responsibilities for the
25 licensed occupation or the conviction is for a crime that is violent or sexual in nature.
26 Notwithstanding any other provision of law, a board shall not automatically deny licensure on
27 the basis of an applicant's or licensee's criminal history, history record, and no board shall deny
28 an applicant a license licensure based on a determination that a conviction is for a crime of moral
29 turpitude. The board shall make its determination based on the factors specified in subsection
30 (b1) of this section.
31 (b1) Before a board may deny an applicant a license licensure due to a criminal conviction
32 under subsection (b) of this section, the board shall specifically consider all of the following
33 factors:
34 (1) The level and seriousness of the crime.
35 (2) The date of the crime.
36 (3) The individual's age of the individual at the time of the crime.
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1 (4) The circumstances surrounding the commission of the crime, if known.
2 (5) The nexus between the criminal conduct and the prospective duties of the
3 applicant as a licensee.
4 (6) The individual's prison, jail, probation, parole, rehabilitation, and employment
5 records of the applicant since the date the crime was committed.
6 (6a) The individual's completion of, or active participation in, rehabilitative drug
7 or alcohol treatment.
8 (6b) A Certificate of Relief granted pursuant to G.S. 15A-173.2.
9 (7) The subsequent commission of a crime by the applicant.individual's criminal
10 history record after the conviction.
11 (8) Any affidavits or other written documents, including character references.
12 (b2) If the board denies an applicant a license licensure under this section, the board shall
13 do all of the following:
14 (1) Make written findings specifying the factors in subsection (b1) of this section
15 the board deemed relevant to the applicant and explaining the reason for the
16 denial. The board's presiding officer shall sign the findings.
17 (2) Provide or serve a signed copy of the written findings to the applicant or
18 licensee within 60 days of the denial.
19 (3) Retain a signed copy of the written findings for no less than five years.
20 (b3) Each board shall include in its application for licensure and on its public website all
21 of the following information:
22 (1) Whether the board requires applicants to consent to a criminal history record
23 check.
24 (2) The factors considered by the board under subsection (b1) of this section when
25 making a determination of regarding licensure.
26 (3) The appeals process pursuant to Chapter 150B of the General Statutes if the
27 board denies an applicant licensure in whole or in part because of a criminal
28 conviction.
29 (b4) If a board requires an applicant to submit a criminal history record, the board shall
30 require the provider of the criminal history record to provide the applicant with access to the
31 applicant's criminal history record or otherwise deliver a copy of the criminal history record to
32 the applicant. If an applicant's criminal history includes matters that will or may prevent the board
33 from issuing a license to the applicant, the board shall notify the applicant in writing of the
34 specific issues in sufficient time for the applicant to provide additional documentation supporting
35 the application for consideration by the board prior to any final decision to deny the application.
36 After being notified of any potential issue with licensure due to one or more criminal convictions,
37 an applicant shall have has 30 days to respond by either correcting any inaccuracy in the criminal
38 history record or submitting evidence of mitigation or rehabilitation for consideration by the
39 board.
40 (b5) If, following a hearing, a board denies an application for licensure, the board's written
41 order shall include specific reference to any criminal conviction considered as part or all of any
42 basis for the denial and the rationale for the denial, as well as a reference to the appeal process
43 and the applicant's ability to reapply. No applicant shall be restricted from reapplying for
44 licensure for more than two years from the date of the most recent application.
45 (b6) Notwithstanding any other provisions in the law, an individual with a criminal history
46 may petition a board at any time, including before the individual starts or completes any
47 mandatory education or training requirements, for a predetermination of whether the individual's
48 criminal history will likely disqualify the individual from obtaining a license. This petition shall
49 include a criminal history record report obtained by the individual petitioner from a reporting
50 service designated by the board, the cost of which shall be borne by the applicant. petitioner.
51 Criminal history records relating to a predetermination petition are not public records under
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1 Chapter 132 of the General Statutes. A board may predetermine that the petitioner's criminal
2 history is likely grounds for denial of a license only after the board has applied the requirements
3 of subsection (b) of this section. Each board shall delegate authority for the predetermination to
4 its executive director or equivalent officer, or to a committee of the board, so that the
5 predeterminations can be made in a timely manner. No board member having served on a
6 predetermination committee for an individual a petitioner shall be required to recuse in any later
7 determinations or hearings involving the same applicant. individual as an applicant or licensee.
8 The board shall inform the individual petitioner of the board's determination within 45 days of
9 receiving the petition from the individual. The board may charge a fee to recoup its costs not to
10 exceed forty-five dollars ($45.00) for each petition. If the board determines an applicant a
11 petitioner would likely be denied licensure based on the individual's petitioner's criminal history,
12 the board shall notify the individual petitioner in writing of the following:
13 (1) The grounds and reasons for the predetermination.
14 (2) That the petitioner has the right to complete any requirements for licensure, to
15 apply to the board, and to have the petitioner's application considered by the
16 board under its application process.
17 (3) That further evidence of rehabilitation will be considered upon application.
18 (b7) A predetermination made under subsection (b6) of this section that a petitioner's
19 criminal history would likely prevent licensure is not a final agency decision and does not entitle
20 the individual to any right to judicial review under Article 4 of Chapter 150B of the General
21 Statutes.
22 (b8) A predetermination made under subsection (b6) of this section that a petitioner is
23 eligible for a license is binding if both of the following apply:
24 (1) The petitioner applies for licensure and fulfills all other requirements for the
25 occupational license.
26 (2) The applicant's petitioner's submitted criminal history was correct and remains
27 unchanged at the time of application for a license.
28 (c) If a board requires an applicant to consent to a criminal history record check or use of
29 fingerprints or other identifying information required by the State or National Repositories of
30 Criminal Histories, the board may deny licensure to an applicant who refuses to consent.
31 (c1) Nothing in this section or in G.S. 93B-1 authorizes a board to require an applicant to
32 consent to a criminal history record check or use of fingerprints or other identifying information
33 required by the State or National Repositories of Criminal Histories as a condition of granting or
34 renewing a license.
35 (d) This section does not apply to The North Carolina Criminal Justice Education and
36 Training Standards Commission and the North Carolina Sheriffs' Education and Training
37 Standards Commission."
38 SECTION 2.(a) G.S. 20-79.2 reads as rewritten:
39 "§ 20-79.2. Transporter plates.
40 …
41 (b2) Sanctions. – The following sanctions apply when a motor vehicle displaying a
42 "Dealer-Transporter" or "Transporter" license plate is driven in violation of the restrictions on
43 the use of the plate or of the requirement to have proof of financial responsibility:
44 (1) The individual driving the motor vehicle is responsible for an infraction and
45 is subject to a penalty of one hundred dollars ($100.00).
46 (2) The dealer or business to whom the plate is issued is subject to a civil penalty
47 imposed by the Division of two hundred fifty dollars ($250.00) per
48 occurrence.
49 (3) The Division may rescind all dealer license plates, dealer transporter plates,
50 or transporter plates issued to the dealer or business whose plate was displayed
51 on the motor vehicle.
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1 (4) A person who sells, rents, leases, or otherwise provides a transporter plate to
2 another person in exchange for the money or any other thing of value is guilty
3 of a Class I felony. A conviction for a violation of this subdivision is
4 considered a felony involving moral turpitude for purposes of G.S. 20-294.
5 A penalty imposed under subdivision (1) of this subsection is payable to the county where
6 the infraction occurred, as required by G.S. 14-3.1. A civil penalty imposed under subdivision
7 (2) of this subsection shall be credited to the Highway Fund as nontax revenue. A law
8 enforcement officer having probable cause to believe that a transporter plate is being used in
9 violation of this section may seize the plate.
10 …."
11 SECTION 2.(b) G.S. 20-294 reads as rewritten:
12 "§ 20-294. Grounds for denying, suspending, placing on probation, or revoking licenses.
13 In accordance with G.S. 20-295 and G.S. 20-296, G.S. 20-295, 20-296, and 93B-8.1, the
14 Division may deny, suspend, place on probation, or revoke a license issued under this Article for
15 any one or more of the following grounds:
16 …
17 (9) Being convicted of an offense set forth under G.S. 14-71.2, 14-160.4, 20-79.2,
18 20-106.1, 20-107, or 20-112 while holding such a the license or within five
19 years next preceding before the date of filing the application; or being
20 convicted of a felony involving moral turpitude under the laws of this State,
21 another state, or the United States. It shall be is an affirmative defense, and
22 will operate as a stay of this violation, any adverse action by the Division if
23 the person charged is determined to qualify and obtains seeks expunction,
24 certificate of relief, or pardon, or, if or to have the violative conviction is
25 vacated. If relief is granted, this violation is any adverse action by the Board
26 is dismissed. If relief is denied, the stay is lifted.
27 …."
28 SECTION 3.(a) G.S. 53-244.050 reads as rewritten:
29 "§ 53-244.050. License and registration application; claim of exemption.
30 (a) Applicants for a license or registration shall apply through the Nationwide Mortgage
31 Licensing System and Registry on a form acceptable to the Commissioner, including the
32 following information:
33 …
34 (4) The qualifications and business history of the applicant and, if applicable, the
35 business history of any partner, officer, or director, any person occupying a
36 similar status or performing similar functions, or any person directly or
37 indirectly controlling the applicant, including:applicant, including the
38 following:
39 a. A description of any injunction or administrative order by any state or
40 federal authority to which the person is or has been subject;subject.
41 b. Any conviction, within the past 10 years, of a misdemeanor involving
42 moral turpitude or any fraud, false statement or omission, any theft or
43 wrongful taking of property, bribery, perjury, forgery, counterfeiting,
44 extortion, or conspiracy to commit any of these offenses, or involving
45 any financial service or financial service- related business;
46 andbusiness.
47 c. Any felony convictions.
48 …."
49 SECTION 3.(b) G.S. 53-244.060 reads as rewritten:
50 "§ 53-244.060. Issuance of license or registration.
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1 If an applicant satisfies the requirements of G.S. 53-244.050, the Commissioner shall issue a
2 mortgage lender, mortgage broker, mortgage servicer, mortgage loan originator, or transitional
3 mortgage loan originator license, or a mortgage origination support registrant registration, unless
4 the Commissioner finds any of the following:
5 …
6 (2) The applicant or its controlling persons have been convicted of or plead guilty
7 or nolo contendere to a felony in a domestic, foreign, or military court:court
8 as described in either of the following:
9 a. During the seven-year period preceding the date of the application for
10 licensing and registration; orregistration.
11 b. At any time preceding the date of application, if the felony involved
12 an act of fraud, dishonesty, a breach of trust, or money laundering.
13 A pardon of a conviction shall not be is not a conviction for purposes of this
14 subdivision.
15 (3) The applicant or any of its controlling persons have been convicted