Bill Text: MS HB1589 | 2024 | Regular Session | Engrossed
Bill Title: Motor vehicles; revise certain provisions regarding discharge of liens and scrapping.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed) 2024-04-30 - Conference Report Adopted [HB1589 Detail]
Download: Mississippi-2024-HB1589-Engrossed.html
MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Ways and Means
By: Representative Lamar
House Bill 1589
(As Passed the House)
AN ACT TO AMEND SECTION 63-21-16, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A LIENHOLDER MUST ELECTRONICALLY TRANSMIT THE SATISFACTION AND RELEASE AND DISCHARGE OF A LIEN ON A MOTOR VEHICLE TO THE DEPARTMENT OF REVENUE NOT LATER THAN TEN DAYS AFTER THE DATE OF SATISFACTION OF THE LIEN; TO AMEND SECTIONS 63-21-39 AND 63-21-18, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT BEFORE A SCRAP METAL PROCESSOR MAY PURCHASE OR RECEIVE A MOTOR VEHICLE FROM THE OWNER OR AUTHORIZED AGENT OF THE OWNER OF THE MOTOR VEHICLE FOR THE PURPOSE OF SCRAPPING, DISMANTLING OR DESTROYING THE MOTOR VEHICLE, THE SCRAP METAL PROCESSOR MUST VERIFY THE ABSENCE OF ANY LIEN ON THE MOTOR VEHICLE; TO PROVIDE THAT IF A LIEN EXISTS ON THE MOTOR VEHICLE, THE SCRAP METAL PROCESSOR MAY NOT PURCHASE OR RECEIVE THE MOTOR VEHICLE FOR THE PURPOSE OF SCRAPPING, DISMANTLING OR DESTROYING THE VEHICLE, AND IS PROHIBITED FROM PURCHASING OR RECEIVING THE MOTOR VEHICLE FOR SUCH PURPOSES DURING ANY TIME FOR WHICH A LIEN EXISTS ON THE MOTOR VEHICLE; TO PROVIDE THAT A SCRAP METAL PROCESSOR MUST UTILIZE THE DEPARTMENT OF REVENUE'S AUTOMATED STATEWIDE MOTOR VEHICLE REGISTRATION SYSTEM FOR THE PURPOSE OF COMPLYING WITH SUCH REQUIREMENTS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 63-21-16, Mississippi Code of 1972, is amended as follows:
63-21-16. (1) All designated agents appointed by the Department of Revenue under Section 63-21-13, Mississippi Code of 1972, may electronically transmit to the Department of Revenue information entered by them on applications for a certificate of title given in connection with the sale or transfer of a motor vehicle, manufactured home or mobile home or a loan for which the owner's motor vehicle, manufactured home or mobile home is pledged to that institution as collateral for the loan. The format and the data required to be transmitted shall be established by the Department of Revenue. Transmission of data shall meet minimum criteria and edits established by the Department of Revenue equal to any edit presently existing in the statewide title registration system, or as may be established, to which the county tax collectors shall also conform. All data transmitted must successfully pass edits established by the Department of Revenue, including lienholder name, mailing address and lienholder account number assigned to a lienholder by the Department of Revenue to identify the lienholder, for the purpose of causing the data to appear in the certificate of title for which the application is made.
(2) It shall be the responsibility of the designated agent to verify all data before it is electronically transmitted. It shall also be the responsibility of the designated agent to ensure that the required certification of designated agent and the certification of statement of facts that are contained on the application for certificate of title appear above the signatures of both the owner and the authorized representative of the designated agent. Data which cannot be transmitted because of error shall be corrected by the designated agent when the statewide title registration system indicates that the data is erroneous or is not valid for the purposes of titling the motor vehicle, manufactured home or mobile home or for transfer of the data.
(3) When an institution has agreed to loan money for the purchase of a motor vehicle, manufactured home or mobile home, the institution shall complete an application for certificate of title or require the borrower to provide to the institution the copy of the application for certificate of title contained in the application packet which is designated "Lienholder's Copy" according to provisions of the Motor Vehicle and Manufactured Housing Title Law, which the owner will receive from the county tax collector or any designated agent upon completion of the application for title and registration process.
(4) An application for certificate of title originating from a designated agent shall be entered on the statewide title registration system by the originating lending institution when the transaction is for the purpose of perfecting the institution's interest in a vehicle, manufactured home or mobile home currently owned or purchased by the applicant, in connection with application for certificate of title or the purchase of a license tag or both.
(5) When an institution in this state adds a second lien on a certificate of title in possession of a first lienholder institution in this state, the second lienholder institution seeking to be shown on the certificate of title shall:
(a) Prepare the application for certificate of title in accordance with the requirements of Sections 63-21-15 and 63-21-45(1)(c);
(b) Obtain all required signatures; and
(c) Forward the completed application for certificate of title to the first lienholder together with any necessary remittance advice, a check for the title fee payable to the Department of Revenue and a cover letter to the first lienholder requesting that the first lienholder attach the certificate of title to the required documents sent by the second lienholder and then forward the application, certificate of title and required documents to the Department of Revenue.
(6) Upon receipt of the application for certificate of title from the second lienholder institution to record the second lien, the first lienholder institution shall compare the data contained in the application for certificate of title to the information contained in the original certificate of title. If the first lienholder institution is satisfied as to the ownership, accuracy and order of priority of liens as shown in the application, it shall enter the data contained on the application for certificate of title prepared by the second lienholder on the statewide title registration system, including the designated agent number of the second lienholder. After entering the data from the application for certificate of title, the first lienholder institution shall immediately forward the application for certificate of title with the certificate of title attached to the application, the remittance advice and the second lienholder's check for the title fee to the Department of Revenue within three (3) working days.
(7) In an assignment of lien pursuant to Section 63-21-47, the assignee shall receive the notice of assignment along with the current title attached and with the assignors interest open. The assignee lienholder shall prepare an application for certificate of title according to the notice of assignment, showing the assignee institution as the lienholder, and then shall electronically transmit the data to the Department of Revenue. The completed application shall be forwarded to the Department of Revenue within three (3) working days.
(8) The Department of Revenue, upon receipt of applications for certificate of title, shall verify the data by accessing it on the statewide title registration system by the title application control number appearing on the application for title. After receiving verification that is satisfactory to the Department of Revenue that the data necessary for the issuance of a new certificate of title exists, the Department of Revenue shall issue a new certificate of title that records the interests of all the parties named in the application for certificate of title.
(9) Designated agents shall be connected to the statewide title registration system for the purpose of electronic transfer of applications for certificate of title data in the order of priority established by the Department of Revenue.
(10) If a participating designated agent fails to comply with the provisions of this section or the rules adopted by the Department of Revenue to implement this section, the Department of Revenue may impose a penalty of Twenty-five Dollars ($25.00) for each instance of noncompliance. Any penalty imposed under this section not paid within thirty (30) days after a notice is given shall be subject to collection from the bond of the designated agent that is required to be provided under the provisions of Section 63-21-13(3). The penalty provided shall also be assessable, due and collectible from any licensed motor vehicle dealer or manufactured home or mobile home dealer for failure to accept an application for certificate of title for each and every vehicle, manufactured home or mobile home he sells to a consumer. These penalties shall be cumulative, supplemental and in addition to the penalties provided by any other law.
(11) This section shall apply to all designated agents appointed by the Department of Revenue under Section 63-21-13, that choose to electronically transmit information on applications for certificates of title to the Department of Revenue. This section shall not apply to other designated agents.
(12) Notwithstanding the foregoing, the Department of Revenue shall not issue a certificate of title to a manufactured home or mobile home with respect to which title has been retired to real property under Section 63-21-30 unless with respect to the same manufactured home or mobile home title has been severed from real property pursuant to Section 63-21-30.
(13) Notwithstanding any requirement in this chapter that a lien on a motor vehicle or manufactured home shall be noted on the face of the certificate of title, if there are one or more liens or encumbrances on the motor vehicle or manufactured home, the Department of Revenue may electronically transmit the lien to the first lienholder and notify the first lienholder of any additional liens. Subsequent lien satisfactions may be electronically transmitted to the Department of Revenue and shall include the name and address of the person satisfying the lien. When electronic transmission of liens and lien satisfactions is used, a certificate of title need not be issued until the last lien is satisfied and a clear certificate of title is issued to the owner of the motor vehicle or manufactured home. When a motor vehicle is subject to an electronic lien, the certificate of title for the motor vehicle shall be considered to be physically held by the lienholder for purposes of compliance with state or federal odometer disclosure requirements. A duly certified copy of the Department of Revenue's electronic record of the lien shall be admissible in any civil, criminal, or administrative proceeding in this state as evidence of the existence of the lien.
(14) A lienholder must electronically transmit the satisfaction and release and discharge of a lien on a motor vehicle to the Department of Revenue not later than ten (10) days after the date of satisfaction of the lien. The failure of a lienholder to comply with the requirements of this subsection shall be a violation of this chapter. Any lienholder who knowingly and willfully fails to transmit the satisfaction and release and discharge of a lien on a motor vehicle within ten (10) days after the date of the satisfaction of the lien shall be in violation of this section, and subject to a civil penalty of up to Two Hundred Fifty Dollars ($250.00) per violation, which shall be in addition to any other penalty provided in this chapter. In addition, a lienholder shall be liable for any attorney's fees, legal fees and/or other fees and costs incurred by a person in any action necessary to discharge and/or release a lien or otherwise affecting a lien for which the lienholder failed to transmit the required information.
(15) Notwithstanding any other provision of this chapter to the contrary, if a lien on a motor vehicle is older than eight (8) years from the date the lien was placed on the motor vehicle, the lien shall be recorded by the Department of Revenue in the automated statewide motor vehicle registration system as having been satisfied and released and discharged, unless annually recertified by the lienholder by utilizing the format and transmitting the data required by the Department of Revenue.
SECTION 2. Section 63-21-18, Mississippi Code of 1972, is amended as follows:
63-21-18. The Mississippi
Department of Information Technology Services shall provide equipment for the
operation and maintenance of the automated statewide motor vehicle,
manufactured housing and mobile home registration system by the * * * Department of Revenue.
The automated statewide motor vehicle, manufactured housing and mobile home registration system shall provide for computer terminals and printers, as authorized by the Mississippi Department of Information Technology Services, to be located in the quantity necessary in each county seat tax collector's office and any other office in which more than fifty percent (50%) of the motor vehicle registrations in the county are made.
All county tax collectors shall
participate in such system as it applies to Chapter 19, Title 27; Chapter 51,
Title 27; Chapter 21, Title 63; Mississippi Code of 1972, in accordance with rules
and regulations promulgated by the * * * Department of Revenue.
Such rules and regulations shall provide that counties which have an existing
computer system designed to produce registration data may elect to use such
existing system to communicate title/registration data to the * * * department through the
computer furnished by the state as hereinabove provided in this section. If
the * * *
Department of Revenue finds and determines that a county has failed to
successfully establish or update title/registration data into the statewide vehicle,
manufactured housing and mobile home title/registration system, either through
use of equipment supplied by the * * * Department of Revenue
or through the interfacing between the network system and county computer
equipment, the * * * Department of Revenue shall thereafter cause
to be withheld the county's homestead exemption reimbursement monies, except
for school districts and municipalities, until such time as the county has
complied with this provision. Such monies as are withheld from a county for
failure to comply with this provision shall be placed into a special escrow
account to be established in the State Treasury. Once the county achieves
compliance by successfully establishing or updating title/registration data
into the statewide vehicle, manufactured housing and mobile home
title/registration system, then the * * * department shall cause to be
released to the county all funds held in escrow on the county's behalf during
the period of noncompliance. All interest earned shall accrue to the benefit
of the county on any funds placed in an escrow account. Any cost involved in
interfacing between existing county computer systems and the state-provided
computer shall be paid by the county.
The computer terminals and printers placed in each county tax collector's office may be utilized to provide additional computer functions as authorized by the Mississippi Department of Information Technology Services.
The State Fiscal Officer shall issue his warrants to the State Treasurer for the expenditures for the implementation and maintenance of the system upon requisitions signed by the * * * Commissioner of Revenue, as authorized by the Legislature.
It is the intent of the
Legislature that the operation of the statewide motor vehicle, manufactured
housing and mobile home title registration system shall be the responsibility
of the * * *
Department of Revenue.
The * * * Department of Revenue
shall provide for the transfer of motor vehicle, manufactured housing and
mobile home title and lien registration information to the * * * department by electronic
means from banks and other lending institutions as provided in Section 63-21-18.
The Mississippi Department of Information Technology Services shall cooperate
with the * * * Department of Revenue in implementing the
provisions of Section 63-21-18, and shall provide the * * * Department of Revenue
with whatever assistance the * * * department needs to carry out
the provisions of Section 63-21-18.
A scrap metal processor must utilize the Department of Revenue's automated statewide motor vehicle registration system for the purpose of complying with the requirements of Section 63-21-39(1)(a).
SECTION 3. Section 63-21-39, Mississippi Code of 1972, is amended as follows:
63-21-39. (1) (a) An owner who scraps, dismantles or destroys a vehicle and a person who purchases a vehicle as scrap or to be dismantled or destroyed shall indicate same on the back of the certificate of title and shall immediately cause the certificate of title and any other documents required by the Department of Revenue to be mailed or delivered to the Department of Revenue for cancellation. A certificate of title of the vehicle shall not again be issued except upon application containing the information the Department of Revenue requires, accompanied by a certificate of inspection in the form and content specified in Section 63-21-15(5) and proof of payment of a fee as provided in subsection (2) of this section. Before a scrap metal processor may purchase or receive a motor vehicle from the owner or authorized agent of the owner of the motor vehicle for the purpose of scrapping, dismantling or destroying the motor vehicle, the scrap metal processor must verify under Section 63-21-18 the absence of any lien on the motor vehicle. If a lien exists on the motor vehicle, the scrap metal processor may not purchase or receive the motor vehicle for the purpose of scrapping, dismantling or destroying the vehicle, and may not purchase or receive the motor vehicle for such purposes during any time for which a lien exists on the motor vehicle.
(b) Notwithstanding any other provision of this chapter to the contrary, if the owner or authorized agent of the owner has not obtained a title in his or her name for the vehicle to be transferred, has lost the title for the vehicle to be transferred, or has returned the title to the Department of Revenue in accordance with paragraph (a) of this subsection, he or she may sign a statement swearing that, in addition to the foregoing conditions, the vehicle is at least ten (10) model years old. The statement described in this paragraph may be used only to transfer such a vehicle to a licensed used motor vehicle parts dealer or scrap metal processor. The department shall promulgate a form for the statement which shall include, but not be limited to:
(i) A statement that the vehicle shall never be titled again; it must be dismantled or scrapped;
(ii) A description of the vehicle including the year, make, model and vehicle identification number;
(iii) The name, address, and driver's license number, nondriver identification card number or tribal identification card number of the owner;
(iv) A certification that the owner:
1. Never obtained a title to the vehicle in his or her name; or
2. Was issued a title for the vehicle, but the title was lost or stolen;
(v) A certification that the vehicle:
1. Is at least ten (10) model years old; and
2. Is not subject to any security interest or lien;
(vi) An acknowledgment that the owner and buyer of the vehicle realizes this form will be filed with the department and that:
1. It is a misdemeanor, punishable by a fine of not more than One Thousand Dollars ($1,000.00) or imprisonment for not more than six (6) months, or both, for conviction of a first offense of knowingly falsifying any information on this statement; and
2. It is a felony, punishable by a fine of not less than One Thousand Dollars ($1,000.00) nor more than Five Thousand Dollars ($5,000.00) or imprisonment for not less than one (1) year nor more than five (5) years, or both, for conviction of a second or subsequent offense of knowingly falsifying any information on this statement;
(vii) The owner's signature and the date of the transaction;
(viii) The name and address of the business acquiring the vehicle;
(ix) The National Motor Vehicle Title Information System identification number; and
(x) The business agent's signature and date along with a printed name and title if the agent is signing on behalf of a corporation.
(c) Until such time as the department makes available an Internet-based system, the used motor vehicle parts dealer or scrap metal processor shall mail or otherwise deliver the statement required under paragraph (b) of this subsection (1) to the Department of Revenue within three (3) business days of the completion of the transaction, requesting that the department cancel the Mississippi certificate of title and registration. Once the department develops an Internet-based system, the used motor vehicle parts dealer or scrap metal processor shall utilize such system and within two (2) business days electronically submit the information contained in the statement using that system.
(d) Within two (2) business days of each day's close of business, the used motor vehicle parts dealer or scrap metal processor who purchases or receives motor vehicles for scrap or for parts shall deliver in a format approved by the department, by electronic means once developed and made available by the department, a list of all such vehicles purchased that day for scrap or for parts. That list shall contain the following information:
(i) The name, address and contact information for the reporting entity;
(ii) The vehicle identification numbers of such vehicles;
(iii) The dates such vehicles were obtained;
(iv) The names of the individuals or entities from whom the vehicles were obtained, for use by law enforcement personnel and appropriate governmental agencies only;
(v) A statement of whether the vehicles were, or will be, crushed or disposed of, or offered for sale or other purposes;
(vi) A statement of whether the vehicle is intended for export out of the United States; and
(vii) The National Motor Vehicle Title Information System identification number of the business acquiring the vehicle.
In addition, the scrap metal processor must certify compliance with the requirements of Section 63-21-39(1)(a).
(e) (i) For purposes of this subsection, the term "motor vehicle" shall not include a vehicle which has been crushed or flattened by mechanical means such that it is no longer the motor vehicle as described by the certificate of title, or such that the vehicle identification number is no longer visible or accessible.
(ii) In cases in which crushed or flattened vehicles are purchased or received, the purchasing or receiving used motor vehicle parts dealer or scrap metal processor shall verify that the seller has reported the vehicles in accordance with this subsection. Such verification may be in the form of a certification from the seller or a contract between the seller and the purchasing or receiving used motor vehicle parts dealer or scrap metal processor attesting to the seller's compliance with the reporting requirements of this subsection. Such verification must clearly identify the seller by a government issued photograph identification card or employer identification number, and the verification and copy of the identification card or number shall be maintained by the purchasing or receiving used motor vehicle parts dealer or scrap metal processor for a period of not less than two (2) years.
(f) The information obtained by the department in accordance with paragraph (d) of this subsection (1) shall be reported to the National Motor Vehicle Title Information System, in a format that will satisfy the requirement for reporting this information, in accordance with rules adopted by the United States Department of Justice in 28 CFR 25.56.
(g) Until such time as the department develops and makes available the Internet-based system described in paragraph (d) of this subsection, the used motor vehicle parts dealer or scrap metal processor who purchases or receives motor vehicles for scrap or for parts shall deliver the information required by paragraph (d) to the National Motor Vehicle Title Information System through any data consolidator approved by such system, within forty-eight (48) hours of the day the vehicle was purchased or acquired by such used motor vehicle parts dealer or scrap metal processor which shall satisfy the requirements of paragraph (d).
(h) The information obtained by the department in accordance with paragraph (d) of this subsection (1) shall be made available only to law enforcement agencies and for purposes of canceling certificates of title. The information shall otherwise be considered to be confidential business information of the respective reporting entities.
(i) All records required under the provisions of this subsection shall be maintained for a period of two (2) years by the reporting entity and shall include a scanned or photocopied copy of the seller's or seller's representative's driver's license or state-issued identification card or other valid form of identification.
(j) A person who knowingly and willfully violates this subsection (1), or any person who knowingly and willfully falsifies or assists another person in falsifying the statement or information required under paragraph (b) or (d) of this subsection, or any person who knowingly and willfully sells a vehicle upon which there is an unsatisfied lien or security interest, or who purchases a vehicle without complying with either paragraph (a) or (b) of this subsection and who knowingly and willfully destroys or dismantles a vehicle upon which he knows that there is an unsatisfied lien or security interest shall:
(i) Be guilty of a misdemeanor, punishable by a fine not more than One Thousand Dollars ($1,000.00) or imprisonment for not more than six (6) months, or both, for conviction of a first offense; or
(ii) Upon conviction of a second or subsequent offense, a felony, punishable by imprisonment for not less than one (1) year nor more than five (5) years or a fine of not less than One Thousand Dollars ($1,000.00) nor more than Five Thousand Dollars ($5,000.00), or both.
In addition, the court may order each person convicted to pay restitution to any party suffering monetary loss in the amount of such loss. No part of any sentence imposed by the court shall be suspended unless such restitution has been paid in full.
(k) A person who knowingly and willfully fails to deliver the title as required under paragraph (a) of this subsection, or the statement required under paragraph (b) of this subsection to the Department of Revenue within seventy-two (72) hours of the completion of the transaction, or who, until such time as the department develops and makes available the Internet-based system described in paragraph (d), fails to deliver the information required by paragraph (d) to the National Motor Vehicle Title Information System through any data consolidator approved by such system, within two (2) business days of the day the vehicle was purchased or acquired by such used motor vehicle parts dealer or scrap metal processor shall be in violation of this section, and subject to a civil penalty of up to One Thousand Dollars ($1,000.00) per violation. Actions to impose this penalty may be brought by any local or state law enforcement agency, district attorney, or by the Attorney General, in any court of competent jurisdiction. One-half (1/2) of the monies generated from such civil penalties shall be deposited in a special fund created in the State Treasury for use by the Department of Revenue's Title Bureau, and one-half (1/2) of the monies generated from such civil penalties shall be deposited in the general fund of the municipality if the suit was brought in a municipal court, or in the general fund of the county if the suit was brought in the court of a county.
(2) For the purpose of requesting a branded title on a vehicle with a salvage certificate of title, every owner of a vehicle that has been issued a salvage certificate of title in this state or any other state which has been restored in this state to its operating condition which existed prior to the event which caused the salvage certificate of title to be issued shall make application to the Department of Revenue, accompanied by a certificate of inspection issued by the Department of Public Safety in the form and content specified in Section 63-21-15(5) and the payment of a fee of Seventy-five Dollars ($75.00) for each motor vehicle for which a certificate of inspection is issued. In addition, the Department of Public Safety may charge such a person a fee in the amount of Twenty-five Dollars ($25.00) for performing any vehicle identification number verification required by federal law or regulation for the vehicle for which the person is applying for a title. All such monies shall be collected by the Department of Public Safety and paid to the State Treasurer for deposit in a special fund that is hereby created in the State Treasury to be known as the "Salvage Certificate of Title Fund." Monies in the special fund may be expended by the Department of Public Safety, upon appropriation by the Legislature. The Department of Revenue shall establish by regulation the minimum requirements by which a vehicle which has been issued a salvage certificate of title may be issued a branded title.
(3) Before a branded title may be issued for a vehicle for which a salvage certificate of title has been issued, the applicant shall submit, by hand delivery or mail, such documents and information to the Department of Public Safety as the department may require for the purpose of determining if the vehicle complies with the requirements of this section and all applicable regulations promulgated by the Commissioner of Public Safety and the Department of Revenue. The Department of Public Safety also may require that an applicant bring a vehicle for which application for a branded title is being made to a Highway Patrol facility for a visual inspection whenever the department deems that a visual inspection is necessary or advisable. Nothing in this section shall be construed to prohibit inspectors of the Mississippi Highway Patrol from conducting on-site inspections and investigations of motor vehicle rebuilders or motor vehicle repair businesses to determine if such businesses are in compliance with all applicable laws relating to the motor vehicle title laws of this state and regulations promulgated by the Commissioner of Public Safety and the Department of Revenue.
SECTION 4. This act shall take effect and be in force from and after July 1, 2024.
