MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Judiciary B; Ways and Means
By: Representative Shirley
House Bill 6
AN ACT TO AMEND SECTION 63-21-39, MISSISSIPPI CODE OF 1972,
TO MAKE IT A FELONY FOR A FIRST OFFENSE OF KNOWINGLY FALSIFYING ANY INFORMATION
ON THE AFFIDAVIT FORM USED TO CANCEL A CERTIFICATE OF TITLE FOR SCRAP MOTOR
VEHICLES; TO REQUIRE THE DEPARTMENT OF REVENUE TO DEVELOP AND IMPLEMENT AN
INTERNET-BASED SYSTEM FOR ELECTRONICALLY SUBMITTING CERTAIN TITLE INFORMATION
NOT LATER THAN JULY 1, 2014; TO PROVIDE THAT A LICENSED USED MOTOR VEHICLE
DEALER SHALL NOT DISMANTLE OR DESTROY A MOTOR VEHICLE UNTIL IT RECEIVES
NOTIFICATION FROM THE DEPARTMENT THAT THERE ARE NO LIENS ON THE MOTOR VEHICLE;
TO PROVIDE THAT THE USED MOTOR VEHICLE PARTS DEALER OR SCRAP METAL PROCESSOR
SHALL SECURE THE MOTOR VEHICLE FOR THREE FULL BUSINESS DAYS IF THE DEPARTMENT'S
RECORDS INDICATE THAT THERE IS NO ACTIVE LIEN BEFORE DESTROYING OR DISMANTLING
THE MOTOR VEHICLE; TO PROVIDE THAT IF THERE IS AN ACTIVE LIEN, THE USED MOTOR
VEHICLE PARTS DEALER OR SCRAP METAL PROCESSOR SHALL SECURE THE MOTOR VEHICLE
FOR FIFTEEN DAYS AND THE DEPARTMENT SHALL NOTIFY THE LIENHOLDER; TO PROVIDE
THAT THE DEPARTMENT MAY REMOVE THE LIEN FROM ITS RECORDS IF A WRITTEN STATEMENT
PROTESTING REMOVAL OF THE LIEN IS NOT RECEIVED BY THE DEPARTMENT FROM THE
LIENHOLDER WITHIN THE FIFTEEN-DAY PERIOD; TO PROVIDE FOR THE ACTIONS TO BE
TAKEN IF A WRITTEN PROTEST FROM THE LIENHOLDER IS RECEIVED; TO MAKE IT A
MISDEMEANOR TO KNOWINGLY DESTROY OR DISMANTLE A MOTOR VEHICLE THAT HAS AN
ACTIVE LIEN; AND FOR RELATED PURPOSES.; 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 misdemeanor, punishable by a fine of not more than One Thousand Dollars ($1,000.00)
or imprisonment for not more than six (6) months, or both, for conviction of a first offense of knowingly
falsifying any information on this statement; and
2. It 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 three (3) business days 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 within two (2) business days
electronically submit the information contained in the statement using that
system. The department shall develop and implement the Internet-based
system not later than July 2014.
(d) * * *
Within two (2) business days 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)
Until such time as the department develops and makes available the Internet‑based
system described in paragraph (d) of this subsection, the used motor vehicle
parts dealer or scrap metal processor who purchases or receives motor vehicles
for scrap or for parts shall deliver the information required by paragraph (d)
to the National Motor Vehicle Title Information System through any data
consolidator approved by such system, within forty‑eight (48) hours of
the day the vehicle was purchased or acquired by such used motor vehicle parts
dealer or scrap metal processor which shall satisfy the requirements of
paragraph (d).
(h)
The information obtained by the department in accordance with paragraph (d) of
this subsection (1) 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.
(i)
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.
(j)
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) or (d) of this subsection, or any person who
knowingly and willfully sells a vehicle upon which there is an unsatisfied lien
or security interest, or who purchases a vehicle without complying with either
subsection (1)(a) or (1)(b) of this section and who knowingly and willfully
destroys or dismantles a vehicle upon which he knows that there is an
unsatisfied lien or security interest shall:
(i)
Be guilty of a misdemeanor, punishable by a fine not more than One Thousand
Dollars ($1,000.00) or imprisonment for not more than six (6) months, 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.
(k)
A person who knowingly and willfully fails to deliver the title as required
under paragraph (a) of this subsection, or the statement required under paragraph (b) of this
subsection to the Department of Revenue within seventy‑two (72) hours of
the completion of the transaction, or who, until
such time as the department develops and makes available the Internet‑based
system described in paragraph (d), fails to deliver the information required by
paragraph (d) to the National Motor Vehicle Title Information System through
any data consolidator approved by such system, within two (2) business days of
the day the vehicle was purchased or acquired by such used motor vehicle parts
dealer or scrap metal processor shall be in violation of this section, and
subject to a civil penalty of up to One Thousand Dollars ($1,000.00) per
violation. Actions to impose this penalty may be brought by any local or state
law enforcement agency, district attorney, or by the Attorney General, in any
court of competent jurisdiction. One‑half (1/2) of the monies generated
from such civil penalties shall be deposited in a special fund created in the
State Treasury for use by the Department of Revenue's Title Bureau, and one‑half
(1/2) of the monies generated from such civil penalties shall be deposited in
the general fund of the municipality if the suit was brought in a municipal
court, or in the general fund of the county if the suit was brought in the
court of a county. 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.
* * * (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.
(e) * * *(i) A person who knowingly falsifies
any information on the affidavit provided for under paragraph (b) of this
subsection shall be guilty of a felony, and such person shall be punished in
accordance with the provisions of Section 63-21-73.
* * *(d) Within two (2) business days 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)
Until such time as the department develops and makes available the Internet‑based
system described in paragraph (d) of this subsection, the used motor vehicle
parts dealer or scrap metal processor who purchases or receives motor vehicles
for scrap or for parts shall deliver the information required by paragraph (d)
to the National Motor Vehicle Title Information System through any data
consolidator approved by such system, within forty‑eight (48) hours of
the day the vehicle was purchased or acquired by such used motor vehicle parts
dealer or scrap metal processor which shall satisfy the requirements of
paragraph (d).
(h)
The information obtained by the department in accordance with paragraph (d) of
this subsection (1) 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.
(i)
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.
(j)
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) or (d) of this subsection, or any person who
knowingly and willfully sells a vehicle upon which there is an unsatisfied lien
or security interest, or who purchases a vehicle without complying with either
subsection (1)(a) or (1)(b) of this section and who knowingly and willfully
destroys or dismantles a vehicle upon which he knows that there is an
unsatisfied lien or security interest shall:
(i)
Be guilty of a misdemeanor, punishable by a fine not more than One Thousand
Dollars ($1,000.00) or imprisonment for not more than six (6) months, 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.
(k)
A person who knowingly and willfully fails to deliver the title as required
under paragraph (a) of this subsection, or the statement required under paragraph (b) of this
subsection to the Department of Revenue within seventy‑two (72) hours of
the completion of the transaction, or who, until
such time as the department develops and makes available the Internet‑based
system described in paragraph (d), fails to deliver the information required by
paragraph (d) to the National Motor Vehicle Title Information System through
any data consolidator approved by such system, within two (2) business days of
the day the vehicle was purchased or acquired by such used motor vehicle parts
dealer or scrap metal processor shall be in violation of this section, and
subject to a civil penalty of up to One Thousand Dollars ($1,000.00) per
violation. Actions to impose this penalty may be brought by any local or state
law enforcement agency, district attorney, or by the Attorney General, in any
court of competent jurisdiction. One‑half (1/2) of the monies generated
from such civil penalties shall be deposited in a special fund created in the
State Treasury for use by the Department of Revenue's Title Bureau, and one‑half
(1/2) of the monies generated from such civil penalties shall be deposited in
the general fund of the municipality if the suit was brought in a municipal
court, or in the general fund of the county if the suit was brought in the
court of a county.
(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. (a) A licensed
used motor vehicle dealer or scrap metal processor shall not dismantle or
destroy a motor vehicle until it receives notification from the department that
there are no liens on the motor vehicle. The department must notify the used
motor vehicle parts dealer or scrap metal processor whether or not there are
any liens on the motor vehicle within twenty-four (24) business hours of
receipt of the title as provided for in subsection (1) of this section or
receipt of the statement provided for in subsection (2) of this section.
(b) The used motor
vehicle parts dealer or scrap metal processor shall secure the motor vehicle
for three (3) full business days, excluding weekends and holidays, if the
department's records indicate that there is no active lien before destroying or
dismantling the motor vehicle.
(c) If there is an
active lien, the used motor vehicle parts dealer or scrap metal processor shall
secure the motor vehicle for fifteen (15) days and the department shall
immediately notify the lienholder.
(d) Fifteen (15)
days after the receipt of the title as provided for in subsection (1) of this
section or receipt of the statement provided for in subsection (2) of this
section, the department may remove the lien from its records if a written
statement protesting removal of the lien is not received by the department from
the lienholder within the fifteen-day period. If the lienholder files a
written statement within the fifteen-day period that the lien is still
outstanding with the department and the used motor vehicle parts dealer or
scrap metal processor, the department shall not remove the lien from its
records and place an administrative hold on the record for thirty (30) days to
allow the lienholder to take any appropriate action. The used motor vehicle
parts dealer or scrap metal processor must secure the motor vehicle until the
department's administrative hold is removed, the lienholder submits a lien
satisfaction, or the lienholder takes possession of the vehicle.
(e) A person who
knowingly destroys or dismantles a motor vehicle that has an active lien in
violation of this subsection (2) shall be guilty of a misdemeanor, and such
person shall be punished by a fine of not more than One Thousand Dollars
($1,000.00) upon a first offense and not more than Five Thousand Dollars
($5,000.00) upon a second or any subsequent offense.
( * * *23) 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.
( * * *34) 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. This act
shall take effect and be in force from and after July 1, 2014.