MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Bryan

AN ACT TO AMEND SECTIONS 63-21-5 AND 63-21-16, MISSISSIPPI CODE OF 1972, TO AUTHORIZE ALL DESIGNATED AGENTS APPOINTED BY THE STATE TAX COMMISSION TO ELECTRONICALLY TRANSMIT TO THE STATE TAX COMMISSION MOTOR VEHICLE TITLE INFORMATION; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 63-21-5, Mississippi Code of 1972, is amended as follows:

63-21-5. The following words and phrases when used in this chapter shall, for the purpose of this chapter, have the meanings respectively ascribed to them in this section except where the context clearly indicates a different meaning:

(a) "State Tax Commission" shall mean the State Tax Commission of the State of Mississippi.

(b) The term "dealer" shall mean every person engaged regularly in the business of buying, selling or exchanging motor vehicles, trailers, semitrailers, trucks, tractors or other character of commercial or industrial motor vehicles in this state, and having in this state an established place of business as defined in Section 27-19-303, Mississippi Code of 1972.

(c) The term "designated agent" shall mean each county tax collector in this state who may perform his duties under this chapter either personally or through any of his deputies, or such other persons as the State Tax Commission may designate. The term shall also mean those "dealers" as herein defined and/or their officers and employees, and other persons who are appointed by the State Tax Commission in the manner provided in Section 63-21-13, Mississippi Code of 1972, to perform the duties of "designated agent" for the purposes of this chapter.

(d) The term "implement of husbandry" shall mean every vehicle designed and adapted exclusively for agricultural, horticultural or livestock raising operations or for lifting or carrying an implement of husbandry and in either case not subject to registration if used upon the highways.

(e) The term "vehicle identification number" shall mean the numbers and letters on a vehicle designated by the manufacturer or assigned by the State Tax Commission for the purpose of identifying the vehicle.

(f) The term "lien" means every kind of written lease which is substantially equivalent to an installment sale or which provides for a right of purchase; conditional sale; reservation of title; deed of trust; chattel mortgage; trust receipt; and every other written agreement or instrument of whatever kind or character whereby an interest other than absolute title is sought to be held or given on a motor vehicle.

(g) The term "lienholder" shall mean any natural person, firm, copartnership, association or corporation holding a lien as herein defined on a motor vehicle.

(h) The term "manufacturer" shall mean any person regularly engaged in the business of manufacturing, constructing or assembling motor vehicles, either within or without this state.

(i) The term "motorcycle" shall mean every motor vehicle having a seat or saddle for the use of the rider and designed to travel on not more than three (3) wheels in contact with the ground, but excluding a farm tractor.

(j) The term "motor vehicle" shall include every automobile, motorcycle, mobile trailer, semitrailer, truck, truck tractor, trailer and every other device in, upon, or by which any person or property is or may be transported or drawn upon a public highway which is required to have a road or bridge privilege license, except such as is moved by animal power or used exclusively upon stationary rails or tracks.

(k) The term "new vehicle" shall mean a motor vehicle which has never been the subject of a first sale for use.

(l) The term "used vehicle" shall mean a motor vehicle that has been the subject of a first sale for use, whether within this state or elsewhere.

(m) The term "owner" shall mean a person or persons holding the legal title of a vehicle; in the event a vehicle is the subject of a deed of trust or a chattel mortgage or an agreement for the conditional sale or lease thereof or other like agreement, with the right of purchase upon performance of the conditions stated in the agreement and with the immediate right of possession vested in the grantor in the deed of trust, mortgagor, conditional vendee or lessee, said grantor, mortgagor, conditional vendee or lessee shall be deemed the owner for the purpose of this chapter.

(n) The term "person" shall include every natural person, firm, copartnership, association or corporation.

(o) The term "pole trailer" shall mean every vehicle without motive power designed to be drawn by another vehicle and attached to the towing vehicle by means of a reach or pole, or by being boomed or otherwise secured to the towing vehicle, and ordinarily used for transporting long or irregularly shaped loads such as poles, pipes, boats or structural members capable generally of sustaining themselves as beams between the supporting connections.

(p) The term "security agreement" shall mean a written agreement which reserves or creates a security interest.

(q) The term "security interest" shall mean an interest in a vehicle reserved or created by agreement and which secures payment or performance of an obligation. The term includes the interest of a lessor under a lease intended as security. A security interest is "perfected" when it is valid against third parties generally, subject only to specific statutory exceptions.

(r) The term "special mobile equipment" shall mean every vehicle not designed or used primarily for the transportation of persons or property and only incidentally operated or moved over a highway, including, but not limited to: ditch-digging apparatus, well-boring apparatus and road construction and maintenance machinery such as asphalt spreaders, bituminous mixers, bucket loaders, tractors other than truck tractors, ditchers, leveling graders, finishing machines, motor graders, road rollers, scarifiers, earth-moving carryalls and scrapers, power shovels and draglines, and self-propelled cranes, vehicles so constructed that they exceed eight (8) feet in width and/or thirteen (13) feet six (6) inches in height, and earth-moving equipment. The term does not include house trailers, dump trucks, truck-mounted transit mixers, cranes or shovels, or other vehicles designed for the transportation of persons or property to which machinery has been attached.

(s) The term "nonresident" shall mean every person who is not a resident of this state.

(t) The term "current address" shall mean a new address different from the address shown on the application or on the certificate of title. The owner shall within thirty (30) days after his address is changed from that shown on the application or on the certificate of title notify the State Tax Commission of the change of address in the manner prescribed by the State Tax Commission.

(u) The term "odometer" shall mean an instrument for measuring and recording the actual distance a motor vehicle travels while in operation; but shall not include any auxiliary instrument designed to be reset by the operator of the motor vehicle for the purpose of recording the distance traveled on trips.

(v) The term "odometer reading" shall mean the actual cumulative distance traveled disclosed on the odometer.

(w) The term "odometer disclosure statement" shall mean a statement certified by the owner of the motor vehicle to the transferee or to the State Tax Commission as to the odometer reading.

(x) The term "mileage" shall mean actual distance that a vehicle has traveled.

SECTION 2. Section 63-21-16, Mississippi Code of 1972, is amended as follows:

63-21-16. (1) * * * All designated agents appointed by the State Tax Commission under Section 63-21-13(3), Mississippi Code of 1972, may electronically transmit to the State Tax Commission information entered by them on applications for a certificate of title given in connection with the sale or transfer of a motor vehicle, or a loan for which the owner's motor vehicle is pledged to that institution as collateral for the loan. The format and the data required to be transmitted shall be established by the State Tax Commission. Transmission of data shall meet minimum criteria and edits established by the State Tax Commission 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 established edits of vehicle identification number, title number, year, make, series, body style, title type, lienholder name, mailing address and lienholder account number assigned to a lienholder by the State Tax Commission 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 or for transfer of the data.

(3) When an institution has agreed to loan money for the purchase of a motor vehicle, 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 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 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(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 State Tax Commission 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 State Tax Commission.

(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 State Tax Commission 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 State Tax Commission.

The completed application shall be forwarded to the State Tax Commission within three (3) working days.

(8) The State Tax Commission, 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 State Tax Commission that the data necessary for the issuance of a new certificate of title exists, the State Tax Commission 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 State Tax Commission.

(10) If a participating designated agent fails to comply with the provisions of this section or the rules adopted by the State Tax Commission to implement this section, the State Tax Commission 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 for failure to accept an application for certificate of title for each and every vehicle 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 State Tax Commission under Section 63-21-13(3), that choose to electronically transmit information on applications for certificates of title to the State Tax Commission. This section shall not apply to other designated agents.

SECTION 3. This act shall take effect and be in force from and after July 1, 1999.