Bill Text: MS SB2541 | 2013 | Regular Session | Introduced
Bill Title: Motor vehicles; revise laws regarding scrapping of.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2013-02-05 - Died In Committee [SB2541 Detail]
Download: Mississippi-2013-SB2541-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Finance
By: Senator(s) Browning
Senate Bill 2541
AN ACT TO AMEND SECTION 63-21-39, MISSISSIPPI CODE OF 1972, TO REVISE THE PROVISIONS OF THE AFFIDAVIT FORM REQUIRED TO BE FILED WITH THE DEPARTMENT OF REVENUE WHEN CANCELLING A CERTIFICATE OF TITLE FOR SCRAP MOTOR VEHICLES WHEN THE CERTIFICATE OF TITLE IS NOT AVAILABLE; TO REQUIRE THAT WITHIN 48 HOURS 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 A LIST OF ALL SUCH VEHICLES PURCHASED THAT DAY FOR SCRAP OR FOR PARTS; TO REVISE THE DEFINITION OF "MOTOR VEHICLE" FOR THE PURPOSES OF THIS ACT; TO PROVIDE THAT WHEN A USED MOTOR VEHICLE PARTS DEALER OR SCRAP METAL PROCESSOR PURCHASES OR RECEIVES A CRUSHED OR FLATTENED VEHICLE, THAT DEALER OR PROCESSOR MUST VERIFY THAT THE SELLER HAS REPORTED THE VEHICLE AS REQUIRED BY THIS ACT; TO MAKE IT A CRIMINAL OFFENSE TO KNOWINGLY FALSIFY ANY INFORMATION ON THE AFFIDAVIT FORM PROVIDED BY THIS ACT; TO AUTHORIZE THE DEPARTMENT OF PUBLIC SAFETY TO CHARGE A FEE FOR ANY VEHICLE IDENTIFICATION NUMBER VERIFICATION REQUIRED BY FEDERAL LAW OR REGULATION ON A VEHICLE WITH A SALVAGE CERTIFICATE OF TITLE FOR WHICH A PERSON APPLIES FOR A CLEAR TITLE OR BRANDED TITLE; TO AUTHORIZE THE SEIZURE AND FORFEITURE OF ANY MOTOR VEHICLE, TRAILER OR SIMILAR CONVEYANCE USED TO TRANSPORT ANOTHER MOTOR VEHICLE OR CRUSHED MOTOR VEHICLE SOLD IN VIOLATION OF THIS SECTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. 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.
(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 Section 63-21-39(1)(a), 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 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 felony, punishable by a fine not less than One Thousand Dollars ($1,000.00) nor more than Five Thousand Dollars ($5,000.00) and/or imprisonment for not less than one year 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 seventy-two (72) hours 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 immediately electronically submit the
information contained in the statement * * * using that system.
(d) * * *
Within
forty-eight (48) hours 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.
(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 C.F.R. 25.56.
(g) The information obtained by the department in accordance with paragraph (d) of this subsection (1) shall not be subject to the Open Records Act of 1983 and 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.
(h) 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.
(i) 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 paragraphs (b) through (h) of this subsection, or any person who knowingly and willfully sells, destroys or dismantles a vehicle upon which there is an unsatisfied lien or security interest, shall:
(i) Be guilty of a felony, punishable by a fine not less than One Thousand Dollars ($1,000.00) nor more than Five Thousand Dollars ($5,000.00) and/or imprisonment for not less than one year, 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.
(j) Any motor vehicle, trailer or similar conveyance used to transport another motor vehicle or crushed motor vehicle sold in violation of this section may be seized by law enforcement and is subject to forfeiture as provided for in Section 2 of this act.
(2) For the purpose of requesting a clear title or 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 clear title.
(3) Before a clear title or 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 clear title or 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 2. (1) In addition to any other civil or criminal penalties provided by law, any motor vehicle, trailer or similar conveyance used to transport a motor vehicle or crushed motor vehicle sold in violation of Section 63-21-39 may be seized by law enforcement and be forfeited as provided herein.
(2)(a) No property used by any person as a common carrier in the transaction of business as a common carrier is subject to forfeiture under this section unless it appears that the owner or other person in charge of the property is a consenting party or privy to a violation of this act;
(b) No property is subject to forfeiture under this section by reason of any act or omission proved by the owner thereof to have been committed or omitted without his knowledge or consent; if the confiscating authority has reason to believe that the property is a leased or rented property, then the confiscating authority shall notify the owner of the property within five (5) days of the confiscation or within five (5) days of forming reason to believe that the property is a leased or rented property;
(c) Forfeiture of a property encumbered by a bona fide security interest is subject to the interest of the secured party if he neither had knowledge of nor consented to the act or omission.
(3) No property shall be forfeited under the provisions of this section, to the extent of the interest of an owner, by reason of any act or omission established by him to have been committed or omitted without his knowledge or consent.
(4) Seizure without process may be made if the seizure is incident to an arrest or a search under a search warrant or an inspection under an administrative inspection warrant.
(5) (a) When any property is seized under this section, proceedings shall be instituted within a reasonable period of time from the date of seizure or the subject property shall be immediately returned to the party from whom seized.
(b) A petition for forfeiture shall be filed by the Attorney General or a district attorney in the name of the State of Mississippi, the county, or the municipality, and may be filed in the county in which the seizure is made, the county in which the criminal prosecution is brought, or the county in which the owner of the seized property is found. Forfeiture proceedings may be brought in the circuit court or the county court if a county court exists in the county and the value of the seized property is within the jurisdictional limits of the county court as set forth in Section 9-9-21. A copy of the petition shall be served upon the following persons by service of process in the same manner as in civil cases:
(i) The owner of the property, if address is known;
(ii) Any secured party who has registered his lien or filed a financing statement as provided by law, if the identity of the secured party can be ascertained by the entity filing the petition by making a good faith effort to ascertain the identity of the secured party;
(iii) Any other bona fide lienholder or secured party or other person holding an interest in the property in the nature of a security interest of whom the seizing law enforcement agency has actual knowledge; and
(iv) Any person in possession of property subject to forfeiture at the time that it was seized.
(6) If the property is a motor vehicle susceptible of titling under the Mississippi Motor Vehicle Title Law and if there is any reasonable cause to believe that the vehicle has been titled, inquiry of the Department of Revenue shall be made as to what the records of the Department of Revenue show as to who is the record owner of the vehicle and who, if anyone, holds any lien or security interest that affects the vehicle.
(7) If the property is a motor vehicle and is not titled in the State of Mississippi, then an attempt shall be made to ascertain the name and address of the person in whose name the vehicle is licensed, and if the vehicle is licensed in a state which has in effect a certificate of title law, inquiry of the appropriate agency of that state shall be made as to what the records of the agency show as to who is the record owner of the vehicle and who, if anyone, holds any lien, security interest or other instrument in the nature of a security device that affects the vehicle.
(8) If the property is of a nature that a financing statement is required by the laws of this state to be filed to perfect a security interest affecting the property and if there is any reasonable cause to believe that a financing statement covering the security interest has been filed under the laws of this state, inquiry of the appropriate office designated in Section 75-9-501, shall be made as to what the records show as to who is the record owner of the property and who, if anyone, has filed a financing statement affecting the property.
(9) If the answer to an inquiry states that the record owner of the property is any person other than the person who was in possession of it when it was seized, or states that any person holds any lien, encumbrance, security interest, other interest in the nature of a security interest, mortgage or deed of trust that affects the property, the record owner and also any lienholder, secured party, other person who holds an interest in the property in the nature of a security interest, or holder of an encumbrance, mortgage or deed of trust that affects the property is to be named in the petition of forfeiture and is to be served with process in the same manner as in civil cases.
(10) If the owner of the property cannot be found and served with a copy of the petition of forfeiture, or if no person was in possession of the property subject to forfeiture at the time that it was seized and the owner of the property is unknown, there shall be filed with the clerk of the court in which the proceeding is pending an affidavit to such effect, whereupon the clerk of the court shall publish notice of the hearing addressed to "the Unknown Owner of _______________," filling in the blank space with a reasonably detailed description of the property subject to forfeiture. Service by publication shall contain the other requisites prescribed in Section 11-33-41, and shall be served as provided in Section 11-33-37, for publication of notice for attachments at law.
(11) No proceedings instituted pursuant to the provisions of this section shall proceed to hearing unless the judge conducting the hearing is satisfied that this section has been complied with. Any answer received from an inquiry required by this section shall be introduced into evidence at the hearing.
(12) (a) An owner of a property that has been seized shall file an answer within thirty (30) days after the completion of service of process. If an answer is not filed, the court shall hear evidence that the property is subject to forfeiture and forfeit the property to the seizing law enforcement agency. If an answer is filed, a time for hearing on forfeiture shall be set within thirty (30) days of filing the answer or at the succeeding term of court if court would not be in session within thirty (30) days after filing the answer. The court may postpone the forfeiture hearing to a date past the time any criminal action is pending against the owner upon request of any party.
(b) If the owner of the property has filed an answer denying that the property is subject to forfeiture, then the burden is on the petitioner to prove that the property is subject to forfeiture. However, if an answer has not been filed by the owner of the property, the petition for forfeiture may be introduced into evidence and is prima facie evidence that the property is subject to forfeiture. The burden of proof placed upon the petitioner in regard to property forfeited under the provisions of this chapter shall be by a preponderance of the evidence.
(c) At the hearing any claimant of any right, title or interest in the property may prove his lien, encumbrance, security interest, other interest in the nature of a security interest, mortgage or deed of trust to be bona fide and created without knowledge or consent that the property was to be used so as to cause the property to be subject to forfeiture.
(d) If it is found that the property is subject to forfeiture, then the judge shall forfeit the property. However, if proof at the hearing discloses that the interest of any bona fide lienholder, secured party, other person holding an interest in the property in the nature of a security interest, or any holder of a bona fide encumbrance, mortgage or deed of trust is greater than or equal to the present value of the property, the court shall order the property released to him. If the interest is less than the present value of the property and if the proof shows that the property is subject to forfeiture, the court shall order the property forfeited.
(13) Unless otherwise provided herein, all personal property which is forfeited under this section shall be liquidated and, after deduction of court costs and the expense of liquidation, the proceeds shall be divided as follows:
(a) If only one (1) law enforcement agency participates in the underlying criminal case out of which the forfeiture arises, fifty percent (50%) of the proceeds shall be forwarded to the State Treasurer and deposited in the Relief for Victims of Human Trafficking Fund, and fifty percent (50%) shall be deposited and credited to the budget of the participating law enforcement agency.
(b) If more than one (1) law enforcement agency participates in the underlying criminal case out of which the forfeiture arises, fifty percent (50%) of the proceeds shall be forwarded to the State Treasurer and deposited in the Relief for Victims of Human Trafficking fund, twenty-five percent (25%) of the proceeds shall be deposited and credited to the budget of the law enforcement agency whose officers initiated the criminal case and twenty five percent (25%) shall be divided equitably between or among the other participating law enforcement agencies, and shall be deposited and credited to the budgets of the participating law enforcement agencies. In the event that the other participating law enforcement agencies cannot agree on the division of their twenty five percent (25%), a petition shall be filed by any one of them in the court in which the civil forfeiture case is brought and the court shall make an equitable division.
(14) All money forfeited under this section shall be divided, deposited and credited in the same manner as provided in subsection (13).
(15) (a) Any county or municipal law enforcement agency may maintain, repair, use and operate for official purposes all property that has been forfeited to the agency if it is free from any interest of a bona fide lienholder, secured party or other party who holds an interest in the property in the nature of a security interest. The county or municipal law enforcement agency may purchase the interest of a bona fide lienholder, secured party or other party who holds an interest so that the property can be released for its use. If the property is a motor vehicle susceptible of titling under the Mississippi Motor Vehicle Title Law, the law enforcement agency shall be deemed to be the purchaser, and the certificate of title shall be issued to it as required by subsection (9) of this section.
(b)(i) If a vehicle is forfeited to or transferred to a sheriff's department, then the sheriff may transfer the vehicle to the county for official or governmental use as the board of supervisors may direct.
(ii) If a vehicle is forfeited to or transferred to a police department, then the police chief may transfer the vehicle to the municipality for official or governmental use as the governing authority of the municipality may direct.
(c) If a motor vehicle forfeited to a county or municipal law enforcement agency becomes obsolete or is no longer needed for official or governmental purposes, it may be disposed of in accordance with Section 19-7-5 or in the manner provided by law for disposing of municipal property.
(17) The forfeiture procedure set forth in this section is the sole remedy of any claimant, and no court shall have jurisdiction to interfere therewith by replevin, injunction, supersedeas or in any other manner.
SECTION 3. This act shall take effect and be in force from and after July 1, 2013.
