Bill Text: MS SB2482 | 2023 | Regular Session | Engrossed
Bill Title: Motor vehicles; allow Department of Revenue to transmit liens and receive lien satisfactions electronically.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2023-02-28 - Died In Committee [SB2482 Detail]
Download: Mississippi-2023-SB2482-Engrossed.html
MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Finance
By: Senator(s) Harkins
Senate Bill 2482
(As Passed the Senate)
AN ACT TO AMEND SECTION 63-21-16, MISSISSIPPI CODE OF 1972, TO ALLOW THE DEPARTMENT OF REVENUE TO TRANSMIT LIENS AND RECEIVE LIEN SATISFACTIONS ELECTRONICALLY; 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 * * * under Section 63-21-13, Mississippi
Code of 1972, may electronically transmit to the department * * * 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 * * *. Transmission of data shall meet
minimum criteria and edits established by the department * * * 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 * * *, including lienholder name, mailing
address and lienholder account number assigned to a lienholder by the department * * * 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 * * * 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 * * *.
(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 * * * 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 * * *. The completed application shall
be forwarded to the department * * * within three (3) working days.
(8) The department * * *, 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 * * * that the data necessary for the issuance of a new certificate
of title exists, the department * * * 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 * * *.
(10) If a participating
designated agent fails to comply with the provisions of this section or the
rules adopted by the department * * * to implement this section, the department * * * 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 * * * 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 manufacture home, the department 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 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'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.
SECTION 2. This act shall take effect and be in force from and after July 1, 2023.
