Legislation to Watch in 2015

California

AB 2197 - Requires the DMV to request proposals before April 1, 2015 for the development of a temporary license plate system that would enable vehicle dealers and lessor-retailers to print temporary license plates on weatherproof paper or other media selected by the DMV. Requires a vehicle dealer or lessor-retailer to install temporary license plates at the time of sale and to electronically record and transmit information, such as the plates' number and the vehicle’s make and model, to the temporary license plate system. Authorizes vehicle dealers and the DMV to impose fees for temporary license plate processing.

Illinois

SB 1641 -Allows the Secretary of State to use moneys in the NMVTIS Trust Fund to pay for any expenses related to vehicle registration or titling.

HB 2503 - Requires that title applications for a motor vehicle to be verified by NMVTIS prior to the title issuance. Requires that applications for a salvage certificate be verified by NMVTIS for a vehicle history report prior to the certificate issuance. Provides that each application title or a salvage certificate that NMVTIS returns with a warning or error to be reviewed by the Secretary of State or his or her designee, as to whether the warning or error warrants a change to the type of title or brand that is issued.

Provides that any title application or a salvage certificate returned with a NMVTIS warning indicating structural defects equivalent to a junk vehicle in this state or a brand indicating the motor vehicle is no longer capable of being driven shall receive a title with a "prior out of state junk" brand and shall be issued the appropriate title, salvage certificate or junk certificate that reflects the motor vehicle's structural history if that history item was entered 120 months or more before the date of the submission of the current application for title. Any application that is returned with a NMVTIS warning or error indicating a brand or label from another jurisdiction that does not have a similar or comparable brand or label in IL, shall include a notation or brand on the certificate of title stating "previously branded".

Any vehicle that is subject to the federal Truth in Mileage Act that is returned with a NMVTIS warning indicating the stated mileage on the application for title is 1,500 or fewer miles less than a previously recorded shall be deemed as having an acceptable margin of error and the higher of the two figures shall be indicated on the new certificate of title, if the previous mileage was recorded within 90 days of the date of the current application and if there are no indications of fraud or tampering.

States that any applicant who receives an alternative salvage or junk certificate or who receives a certificate of title with a brand or label indicating the vehicle was previously rebuilt prior out of state junk, previously branded or flood, may contest the Secretary's designations by requesting an administrative hearing. Allows for refunds to be granted for any title-related transaction if a title application has not been processed by the Secretary of State. States that if any application for a certificate of title or salvage title is verified by NMVTIS and receives a warning from NMVTIS that the vehicle requires either a salvage certificate or a junk certificate in lieu of the original applied certificate of title or salvage title, then the applicant shall have six months to apply for a refund of cost or the difference of the certificate of title or salvage certificate.

Iowa

SSB 1241 - Stipulates that the owner of a motor vehicle without title or junking certificate may dispose of the vehicle to a licensed recycler for scrap or junk if the vehicle is three model years old or older and is valued for scrap at less than $1,000.

Requires applicants to become an authorized vehicle recycler to provide proof of registration with NMVTIS and requires a vehicle recycler license to state the NMVTIS ID. Requires a licensed vehicle recycler subject to NMVTIS requirements to register with NMVTIS, and for any vehicle purchased to be reported to NMVTIS within 48 hours of purchase and compliance records to be kept for at least three years.

Stipulates that requirements do not apply to a vehicle that has been crushed or flattened so as to no longer resemble the vehicle described by the certificate of title if the purchasing recycler verifies that the seller has met the reporting requirements. Provides that the DOT shall adopt rules relating to the form of the verification, and the manner in which the verification shall be retained.

Provides that a violation is a serious misdemeanor punishable by a fine of at least $315, but not to exceed $1,875, and imprisonment not to exceed one year. Provides that a vehicle recycler license or application may be denied, revoked or suspended if DOT finds that the licensee has not complied with the provisions of the bill or with federal regulations relating to the NMVTIS.

Indiana

HB 1396

Requires a licensed automotive salvage recycler that buys vehicles to:

  1. Report the purchase of a vehicle to the National Motor Vehicle Title Information System (NMVTIS) within 30 days after the vehicle is purchased.
  2. Provide to the seller a valid NMVTIS report identification number.

Mississippi

HB 151 - Requires the Department of Revenue to develop and implement an Internet-based system by July 1, 2015 for used motor vehicle parts dealers and scrap metal processors to submit title information on vehicles purchased for parts or salvage. Repeals the requirement that a used motor vehicle parts dealer or scrap metal processors to report any transactions to NMVTIS until such a system is available.

New Hampshire

HB 310 - Requires facilities where any motor vehicle is first crushed, shredded, baled, or sheared to submit to NMVTIS and to the Department of Safety within 30 days an electronic file containing information to identify the vehicle and provide contact information for all parties.

Requires the title to be assigned to the facility and submitted with any other documents to the Department. Stipulates that crushed, shredded, baled, or sheared shall be accompanied in transport with a copy of the NMVTIS report or some alternative proof of reporting.

Ohio

HB 468 - Requires every salvage motor vehicle auction and salvage motor vehicle pool to comply with the reporting requirements of the National Motor Vehicle Title Information System.

Signed by Governor John Kasich on 12/15

Tennessee

HB 1043 & SB 1098 - Requires any motor vehicle dismantler and recycler required to be licensed or scrap metal processor who purchases motor vehicles for parts, dismantling or scrap to maintain a record of transactions for three years of each vehicle bought, sold, dismantled, exchanged or received by the dismantler and recycler or scrap metal processor.

Requires the purchasing dismantler and recycler or scrap metal processor to require the seller to provide proof of ownership by providing a properly endorsed vehicle title. Stipulates that if the motor vehicle dismantler and recycler or scrap metal processor purchases a vehicle that is twelve years old or older solely for parts, dismantling or scrap, obtaining the title is not required if the dismantler and recycler or scrap metal processor does not dismantle, crush or shred the vehicle for a period of three business days, including the date of purchase, and if the following information is obtained by the buyer and maintained as a part of the record:

  1. The name, address and National Motor Vehicle Title Information System (NMVTIS) identification number of the motor vehicle dismantler and recycler or scrap metal processor.
  2. The name, initials or other identification of the individual entering the information.
  3. The date of the transaction.
  4. A description of the motor vehicle, including the make and model to the extent practicable.
  5. The vehicle identification number (VIN) of the vehicle to the extent practicable.
  6. The license plate number of any vehicle transporting the motor vehicle being sold.
  7. The amount of consideration given for the vehicle.
  8. A written statement signed by the seller, and the seller’s agent.
  9. The name, address and fingerprints of the person from whom the vehicle is being purchased.
  10. A photocopy or electronic scan of a valid driver license of the seller, and the seller’s agent, if applicable, of the motor vehicle, or in lieu of the photocopy or scan of the valid driver license, any other identification card containing a photograph of the seller as issued by any state or federal agency of the United States.
  11. Proof confirming that the motor vehicle dismantler and recycler or scrap metal processor has reported the vehicle to the Department of Revenue within 24 hours, not counting weekends or legal holidays, of the close of business of the day the vehicle was received.

States that any motor vehicle dismantler and recycler required to be licensed, or scrap metal processor, who purchases a motor vehicle for scrap or parts, shall submit to the National Motor Vehicle Title Information System (NMVTIS) all information required pursuant to 28 C.F.R 25.56 within 24 hours, not counting weekends or legal holidays, of the close of business of the day the motor vehicle was received. Stipulates that failure to do so is a Class A misdemeanor punishable by a fine of $1,000.

Requires the Department of Revenue to verify within 24 hours of receipt of the information reported whether or not the motor vehicle reported has been reported stolen. Provides that the Department may develop a method to allow a person subject to this section to verify at the time of the transaction, through the use of the Internet, at no cost, that the vehicle has not been reported stolen, and that also allows for the Department's response to be printed and retained by the person making the request.

Provides that if the Department has not received information from a federal, state or local department or independent source that a vehicle has been reported as stolen it will continue to check against the National Crime Information Center (NCIC) for a period of 30 days. Authorizes the Department to comply with some or all of its responsibilities in this section through a contract with a United States Department of Justice approved third-party data consolidator, pursuant to 28 C.F.R. Part 25.