House Bill 1306

AN ACT TO AMEND SECTION 63-21-16, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FROM AND AFTER JULY 1, 2011, ALL DESIGNATED AGENTS APPOINTED BY THE DEPARTMENT OF REVENUE SHALL BE REQUIRED TO ELECTRONICALLY TRANSMIT MOTOR VEHICLE TITLE INFORMATION TO THE DEPARTMENT OF REVENUE; 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) (a) Except as otherwise provided in paragraph (b) of this subsection, all designated agents appointed by the Department of Revenue under Section 63-21-13, Mississippi Code of 1972, may electronically transmit to the Department of Revenue 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 of Revenue. Transmission of data shall meet minimum criteria and edits established by the Department of Revenue 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 of Revenue, including lienholder name, mailing address and lienholder account number assigned to a lienholder by the Department of Revenue to identify the lienholder, for the purpose of causing the data to appear in the certificate of title for which the application is made.

(b) From and after July 1, 2011, all designated agents appointed by the Department of Revenue under Section 63-21-13, Mississippi Code of 1972, shall electronically transmit to the Department of Revenue 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 Department of Revenue. Transmission of data shall meet minimum criteria and edits established by the Department of Revenue 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 of Revenue, including lienholder name, mailing address and lienholder account number assigned to a lienholder by the Department of Revenue 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(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 of Revenue 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 of Revenue.

(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 of Revenue 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 of Revenue. The completed application shall be forwarded to the Department of Revenue within three (3) working days.

(8) The Department of Revenue, 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 of Revenue that the data necessary for the issuance of a new certificate of title exists, the Department of Revenue 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 of Revenue.

(10) If a participating designated agent fails to comply with the provisions of this section or the rules adopted by the Department of Revenue to implement this section, the Department of Revenue 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 of Revenue under Section 63-21-13, that choose to electronically transmit information on applications for certificates of title to the Department of Revenue and to all designated agents that are required to electronically transmit information on applications for certificates of title to the Department of Revenue. This section shall not apply to other designated agents.

SECTION 2. This act shall take effect and be in force from and after July 1, 2010.