New Jersey-2010-S357-Introduced

An Act concerning certain motor vehicle and boating fees, amending P.L.1984, c.152 and P.L.2007, c.335 and supplementing Title 39 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 12 of P.L.1984, c.152 (C.12:7A-12) is amended to read as follows:

12. a. The purchaser of any marine equipment for which a certificate of ownership is required in this State shall, within 10 days after its purchase, submit to the [director] chief administrator evidence of the purchase. Upon presentation to the [director] chief administrator of the certificate of origin or certificate of ownership, with proper assignment and certification of the seller, a record of the transaction shall be made and filed. A certificate of ownership shall be made and filed. A certificate of ownership shall be issued by the [director] chief administrator and delivered to the buyer, in case of a sale not subject to a security interest, and the [director] chief administrator shall collect a fee of $20 for the issuance and filing thereof.

b. In the case of a sale subject to a security interest, the original certificate of ownership, with the name and address of the holder of the encumbrance or secured party or his assignee recorded thereon, shall be delivered to the holder of the encumbrance or secured party or his assignee and a nonnegotiable copy thereof shall be delivered to the buyer. The [director] chief administrator shall collect a fee of $30 for [his] the chief administrator's services in issuing a certificate and a copy thereof, and for making and filing a record of the transaction pursuant to this subsection.

c. Except as otherwise provided in this section, whenever a security interest is created in any marine equipment, other than a security interest which is required to be noted on the certificate of origin or the certificate of ownership as provided in sections 11 and 12 of this act, there shall be filed with the [director] chief administrator the certificate of ownership of the marine equipment together with a financing statement on a form prescribed by the [director] chief administrator. The [director] chief administrator shall make and file a record of the transaction and shall issue a certificate of ownership recording the name and address of the secured party or his assignee thereon, and shall deliver it to the secured party or his assignee. A copy of the certificate of ownership so issued shall be delivered to the owner. The [director] chief administrator shall collect a fee of $30 for [his] the chief administrator's services in issuing a certificate and copy thereof and for making and filing a record of the transaction pursuant to this subsection.

d. The financing statement required to be filed pursuant to subsection c. of this section shall be signed only by the owner, shall not be required to be acknowledged or proved, and shall show, in addition to such matters as the [director] chief administrator may require for the proper identification of the marine equipment affected, the date of the security agreement, and the names and addresses of the parties thereto. The security agreement or a copy thereof, or any proof of execution thereof other than that contained in the financing statement, need not be presented to the [director] chief administrator. When the owner is a corporation, it shall be sufficient if the financing statement is signed by any officer thereof, or by any agent designated by the corporation for that purpose, and it shall not be necessary that the financing statement recite the authorization of the agent. When there is more than one owner, it shall be sufficient if the financing statement is signed by any one of them.

e. Nothing in subsections c. and d. of this section shall apply to a security interest in marine equipment which constitutes inventory held for sale, but the interest shall be subject to chapter 9 of Title 12A of the New Jersey Statutes.

f. In addition to the fees elsewhere in this section provided for, there shall be paid to the [director] chief administrator a fee of $10 for notice of satisfaction of the lien or encumbrance of the record or abstract, or of the termination of the security interest where the marine equipment is subject to a lien or encumbrance or a security interest.

g. Notwithstanding any other provision of this section to the contrary, when any dealer is the purchaser of any marine equipment in this State, [he] the dealer shall, within 10 days after its purchase, submit to the [director] chief administrator the evidence of purchase. Upon presentation of the certificate of ownership with proper assignment and certification of the seller to the [director] chief administrator, a record of the transaction shall be made and filed. A certificate of ownership shall be issued by the [director] chief administrator and delivered to the purchaser, and the [director] chief administrator shall collect a fee for the issuing and filing thereof. A purchaser of any marine equipment who fails to comply with the provisions of this subsection shall pay the [director] chief administrator a penalty plus the issuing and filing fee.

h. The failure of a person to comply with the requirements of this section shall constitute a violation within the provisions of section 25 of this act, but the failure shall not affect the validity of any instrument creating or reserving a security interest in any marine equipment as between the parties to the instrument.

i. The notation of the name and business or residence address of a secured party or his assignee on the certificate of origin or on the certificate of ownership, as provided in sections 9 and 10 of this act, and the presentation to the [director] chief administrator of the certificate of origin or certificate of ownership so noted, in the compliance with the security interest filing requirements of this act, shall be in lieu of all filing requirements imposed by chapter 9 of Title 12A of the New Jersey Statutes and shall constitute the perfection of the security interest in the marine equipment, and the rights and remedies of the debtors and the secured parties in respect to the security interest shall, except as otherwise expressly provided in this act, be subject to and governed by chapter 9 of Title 12A of the New Jersey Statutes.

j. Any security interest perfected pursuant to chapter 9 of Title 12A of the New Jersey Statutes not later than 30 days after either the effective date of [this] P.L. 1987 [amendatory act] , c.138 or June 15, 1987, whichever date is later, shall remain perfected pursuant to that Title 12A until perfected as required under P.L. 1984, c.152 (C.12:7A-1 et seq.). For this category of security interest, perfection in accordance with P.L.1984, c.152 shall occur not later than one year after either the effective date of [this] P.L.1987 [amendatory act] ,c.138 or June 15, 1987, whichever date is later. For this category of security interest, the subsequent perfection under P.L. 1984, c.152 shall be deemed to be a continuation of the initial perfection pursuant to chapter 9 of Title 12A of the New Jersey Statutes.

(cf: P.L.1987, c.138, s.6)

2. Section 13 of P.L.1984, c.152 (C.12:7A-13) is amended to read as follows:

13. a. If a certificate of ownership or title papers are lost, the [director] chief administrator may, upon proof by certification or otherwise in the manner required by [him] the chief administrator and if satisfied with the application, prepare a certificate of ownership, certify it, and authorize its use in place of the original, with the same effect as the original. The [director] chief administrator shall collect a fee of $25 for this duplicate certificate.

b. A person who falsely states, in an application to the [director] chief administrator for a duplicate certificate of ownership, that a certificate of ownership or title papers are lost, shall be subject to the penalties of section 25 of this act. Notwithstanding any other provision of law, a prosecution may be commenced at any time up to three years after the issuance of the duplicate certificate.

(cf: P.L.1984, c.152, s.13)

3. Section 15 of P.L.1984, c.152 (C.12:7A-15) is amended to read as follows:

15. a. The [director] chief administrator shall, on the record or abstract of any marine equipment registered with [him] the chief administrator which is subject to a security interest of which notice is required to be filed with [him] the chief administrator, make a notation of the existence of the security interest and shall index the same under the name of the owner of record of the marine equipment so long as the security interest remains unterminated of record.

b. Upon request from any person, the [director] chief administrator shall issue a certificate, for which [he] the chief administrator shall be entitled to a fee of $10.50, showing names and addresses of the parties to any contract of conditional sale or chattel mortgage or other instrument or to any financing statement; the name and address of the holder of any lien under such contract, chattel mortgage, or other instrument or of the secured party; the date thereof or of the financing statement; the date of filing; the make, model, and identification number or numbers of the marine equipment; and, if the condition in the contract of conditional sale or chattel mortgage has been performed or the security interest has been terminated, a statement to that effect.

c. For a full certified copy of any instrument showing a lien on or a security interest in any marine equipment the [director] chief administrator shall be entitled to a fee of $5 for the certificate plus a fee for each copy of any paper certified.

d. When evidence of satisfaction of any contract of conditional sale or chattel mortgage or other instrument or evidence of the termination of the security interest shall be presented to the [director] chief administrator, he shall make a notation thereof on his records.

e. The [director] chief administrator, [his] the chief administrator's agents, and employees of the [Division of Motor Vehicles in the Department of Law and Public Safety] commission or the agency or instrumentality of the State that may process certificates of ownership, registrations, and associated functions shall not incur any personal liability in carrying out the provisions of this section or in furnishing any information provided herein from the records of the State.

(cf: P.L.1984, c.152, s.15)

4. Section 18 of P.L.1984, c.152 (C.12:7A-18) is amended to read as follows:

18. a. If the title papers or certificate of ownership are defective or improper, or if the marine equipment was purchased and its sale consummated in another state or country, in accordance with the laws of the state or country regulating the sale of marine equipment and not made for the purpose of evading the provisions of this act, the owner of the marine equipment may apply to the [director] chief administrator to correct the defects, or permit the title papers to be received.

b. The [director] chief administrator, upon whatever proof as [he] the chief administrator requires showing that it is just and equitable that the defects should be corrected or that the title papers or certificate of ownership should be received, with or without hearing, shall determine the truth and merits of the application and whether the holder appears to be the bona fide owner of the marine equipment, and may issue [his] a certificate correcting the defects or permitting the title papers or certificate of ownership to be so recorded and filed. The person submitting the papers shall pay a fee of $20 to the [director] chief administrator for the issuing and filing of the certificate.

c. The [director] chief administrator may promulgate regulations supplementing this section, prescribing a procedure for the issuance of a certificate of ownership to a purchaser who purchased marine equipment in a state or jurisdiction that does not require or issue title papers.

d. Before issuing a certificate the [director] chief administrator may require the person to advertise in a newspaper having a general circulation in the county where [he] the person resides, or where the marine equipment is located, or both, for the space of two weeks, at least once a week, a notice briefly stating that the person has applied to the [director] chief administrator to correct defects in the marine equipment title papers or receive title papers out of time, or as the case may be, giving a description of the marine equipment as provided by regulation, and that if anyone desires to be heard in opposition thereto [he] the person may do so by appearing before the [director] chief administrator or [his] the chief administrator's designee on a date and at a place named, or communicating with the [director] chief administrator or [his] the chief administrator's designee prior thereto. The applicant shall also serve like notice on local police, both where the applicant resides and where the marine equipment is located, the State Marine Police Force, and any other person or agency as prescribed by the [director] chief administrator. The notice shall be made personally or by certified mail. Proofs of the publication and service shall be submitted to the [director] chief administrator. The [director] chief administrator, [his] the chief administrator's agent, or inspector may have the notice advertised or served at the cost and expense of the applicant.

(cf: P.L.1984, c.152, s.18)

5. Section 28 of P.L.1984, c.152 (C.12:7A-28) is amended to read as follows:

a. The [director] New Jersey Motor Vehicle Commission is authorized to adopt, pursuant to law, regulations to implement the provisions of this act. The [director] commission shall, to the maximum extent practicable and feasible, adopt regulations similar to those adopted for implementation of chapter 10 of Title 39 of the Revised Statutes.

b. The [director] commission may adopt regulations regarding stop sale, stop use or stop movement orders in lieu of seizure, whether actual or constructive, of marine equipment that does not conform to the provisions of this act or any regulations adopted pursuant to this act.

c. [The director] Unless such fees have set by law, the commission shall adopt, and may amend, rules providing a schedule of reasonable fees similar to those adopted for implementation of chapter 10 of Title 39 of the Revised Statutes, to the maximum extent practicable and feasible, to defray the administrative costs of issuing certificates of ownership, providing copies and duplicates of certificates, and filing certificates, as provided for by sections 12, 13, 15 and 18 of [this act] P.L.1984, c.152.

d. All rules and regulations for the implementation of this act shall be adopted by the [director] commission pursuant to the provisions of the "Administrative Procedure Act," P.L. 1968, c. 410 (C. 52:14B-1 et seq.).

(cf: P.L.1984, c.152, s.28)

6. Section 16 of P.L.2007, c.335 (C.39:2A-36.1) is amended to read as follows:

16. a. On and after the effective date of P.L.2007, c.335 (C.39:2A-36.1 et al.), the board may, by regulation adopted pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), increase fees and surcharges collected pursuant to the following statutes, notwithstanding any law, rule, or regulation to the contrary:

Section 4 of P.L.1995, c.401 (C.12:7-73); section 24 of P.L.1984, c.152 (C.12:7A-24); section 28 of P.L.1984, c.152 (C.12:7A-28); section 1 of P.L.1983, c.65 (C.17:29A-33); section 6 of P.L.1983, c.65 (C.17:29A-35); section 9 of P.L.1998, c.108 (C.27:5F-42); R.S.39:2-10; section 1 of P.L.1969, c.301 (C.39:3-4b); section 2 of P.L.1969, c.301 (C.39:3-4c); section 2 of P.L.1968, c.439 (C.39:3-8.1); section 1 of P.L.1992, c.87 (C.39:3-8.2); section 23 of P.L.1975, c.180 (C.39:3-10a); section 1 of P.L.1977, c.23 (C.39:3-10b); section 1 of P.L.1979, c.261 (C.39:3-10f); section 22 of P.L.1990, c.103 (C.39:3-10.30); [R.S.39:3-13;] R.S.39:3-18; R.S.39:3-19; section 2 of P.L.1974, c.162 (C.39:3-19.2); section 12 of P.L.1979, c.224 (C.39:3-19.5); [R.S.39:3-20;] section 1 of P.L.1973, c.319 (C.39:3-20.1); [R.S.39:3-21;] R.S.39:3-24; R.S.39:3-25; R.S.39:3-26; section 2 of P.L.1964, c.195 (C.39:3-27.4); section 2 of P.L.1968, c.247 (C.39:3-27.6); section 2 of P.L.1977, c.369 (C.39:3-27.9); section 2 of P.L.1979, c.457 (C.39:3-27.16); section 2 of P.L.1981, c.139 (C.39:3-27.19); R.S.39:3-28; R.S.39:3-30; R.S.39:3-31; section 1 of P.L.1961, c.77 (C.39:3-31.1); R.S.39:3-32; section 1 of P.L.1999, c.192 (C.39:3-33a); section 1 of P.L.2001, c.35 (C.39:3-33b); section 2 of P.L.1959, c.56 (C.39:3-33.4); section 4 of P.L.1959, c.56 (C.39:3-33.6); R.S.39:3-36; section 1 of P.L.1979, c.314 (C.39:3-54.14); section 2 of P.L.1999, c.308 (C.39:3-75.2); R.S.39:3-84; section 2 of P.L.1999, c.396 (C.39:3-84.7); section 3 of P.L.1973, c.307 (C.39:3C-3); section 10 of P.L.1983, c.105 (C.39:4-14.3j); section 23 of P.L.1983, c.105 (C.39:4-14.3w); R.S.39:4-26; R.S.39:4-30; section 11 of P.L.1985, c.14 (C.39:4-139.12); section 1 of P.L.1972, c.38 (C.39:5-30.4); section 31 of P.L.1994, c.60 (C.39:5-36.1); section 20 of P.L.1952, c.173 (C.39:6-42); section 2 of P.L.1983, c.141 (C.39:6B-3); R.S.39:7-3; section 3 of P.L.1975, c.156 (C.39:8-11); section 8 of P.L.1975, c.156 (C.39:8-16); section 9 of P.L.1975, c.156 (C.39:8-17); section 15 of P.L.1975, c.156 (C.39:8-23); section 5 of P.L.1995, c.112 (C.39:8-45); section 7 of P.L.1995, c.112 (C.39:8-47); section 12 of P.L.1995, c.112 (C.39:8-52); section 11 of P.L.1995, c.157 (C.39:8-69); section 13 of P.L.1995, c.112 (C.39:8-53); section 14 of P.L.1995, c.112 (C.39:8-54); [R.S.39:10-11; R.S.39:10-12; R.S.39:10-14; R.S.39:10-16;] R.S.39:10-19; R.S.39:10-25; section 5 of P.L.1983, c.323 (C.39:10-35); section 8 of P.L.1983, c.455 (C.39:10A-15); R.S.39:11-8; section 2 of P.L.1951, c.216 (C.39:12-2); section 5 of P.L.1951, c.216 (C.39:12-5); and section 2 of P.L.1983, c.360 (C.39:13-2).

b. (1) In determining an appropriate increase of any fee or surcharge pursuant to subsection a. of this section, the board shall consider at least the following factors: (a) the year in which the fee or surcharge was last increased; (b) the actual costs to the State of New Jersey for administering any transaction, process, filing, registration, inspection, audit, or any license, permit, or other document issuance, for which the fee or surcharge is collected; and (c) the annual percentage increase in the Consumer Price Index or other similar relevant index.

No fee or surcharge set forth in this section shall be increased by regulation more than once during any five-year period, and no such fee or surcharge shall be increased beyond an amount that exceeds the actual costs to the State of New Jersey for administering any transaction, process, filing, registration, inspection, audit, or any license, permit, or other document issuance, for which the fee or surcharge is collected.

(2) All increases in a fee or surcharge after the first increase shall also be subject to the following limitation: the increase shall not exceed the cumulative annual percentage increase in the Consumer Price Index for the five fiscal years prior to the date of the proposed subsequent increase.

(3) All increases in fees or surcharges imposed by regulation proposed to be adopted in a calendar year shall be consolidated in one single regulatory proposal in that calendar year.

(4) As used in this section, the "Consumer Price Index" means the consumer price index for all urban consumers in the New York City and Philadelphia areas as reported by the Department of Labor or successor index.

c. Pursuant to subsection b. of section 105 of P.L.2003, c.13 (C.39:2A-36), 100 percent of the increased revenues collected from such increase shall be remitted to the commission.

(cf: P.L.2007, c.335, s.16)

7. (New section) a. Any regulations adopted by the board pursuant to section 16 of P.L.2007, c.335 (C.39:2A-36.1) prior to the effective date of P.L. , c. (C. )(pending before the Legislature as this bill) increasing fees collected pursuant to R.S.39:3-13, R.S.39:3-20, R.S.39:3-21, R.S.39:10-11, R.S.39:10-12, R.S.39:10-14, and R.S.39:10-16 are hereby rescinded.

b. The board is directed to rescind regulations adopted after March 5, 2009 and prior to the effective date of P.L. , c. (C. )(pending before the Legislature as this bill) increasing fees under N.J.A.C.13:82-9.1.

c. All revenues collected from fees increased pursuant to regulations rescinded under subsection a. or b. of this section shall be refunded to the person who paid the fees.

8. This act shall take effect immediately.

STATEMENT

This bill removes the power of the board of the New Jersey Motor Vehicle Commission to increase fees by regulation in regard to: R.S.39:3-13 (fees for permits and articulated vehicle endorsements); R.S.39:3-20 (fees for registration of commercial motor vehicles based on weight); R.S.39:3-21 (motorcycle registration fee); R.S.39:10-11 (motor vehicle certificate of ownership fees); R.S.39:10-12 (duplicate certificate of ownership fee); R.S.39:10-14 (fees for lien or change of title search); and R.S.39:10-16 (fee for corrected certificate of ownership). The bill amends existing law to set by statute the amount of certain boating certificate of ownership fees rather than to let the fees be established by regulation. The fees are established at the current rates. The bill also rescinds or requires the rescinding of any regulations increasing the above mentioned fees adopted by the board of the commission before the date this bill becomes law. This bill is in response to a rule proposal (41 N.J.R.862(a)) by the Motor Vehicle Commission to adopt regulations to increase fees in the above-mentioned areas. Of particular concern is the proposal to increase the fee for motorcycle registration from $10 to $65 (a more than 600% increase) and the fee for motor vehicle and boat certificates of ownership from $20 to $60 (a 300% increase).