HB385 By Representative Johnson (R) RFD Financial Services Rd 1 02-APR-15

SYNOPSIS: This bill would standardize the surety bond amount for all designated agents of the Department of Revenue for the issuance of certificates of title.

This bill would also require that the owner of a motor vehicle subject to titling make application for a certificate of title to reflect the owner's current legal name.

A BILL TO BE ENTITLED AN ACT

Relating to motor vehicle titles; to amend Sections 32-8-30, 32-8-34, 32-8-35, and 32-8-39, Code of Alabama 1975; to standardize the surety bond amount for all designated agents of the Department of Revenue for the issuance of certificates of title; and to require that the owner of a motor vehicle subject to titling make application for a certificate of title to reflect the owner's current legal name.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Sections 32-8-30, 32-8-34, 32-8-35, and 32-8-39, Code of Alabama 1975, are amended to read as follows:

§32-8-30.

"(a) Except as provided in Section 32-8-31, every owner of a motor vehicle designated a 1975 year model, and all models subsequent thereto which is in this state and which is required to be registered under the motor vehicle laws of this state and for which no certificate of title has been issued by the department, shall make application to a designated agent as herein defined for a certificate of title to the vehicle.

"(b) Except as provided in Section 32-8-31, every owner of a travel trailer designated a 1990 year model, and all models subsequent thereto which is in this state and which is required to be registered under the motor vehicle laws of this state and for which no certificate of title has been issued by the department, shall make application to a designated agent as herein defined for a certificate of title to the travel trailer. In the event that the owner's legal name, as recorded on the current certificate of title, has changed, the owner shall make application for a corrected certificate of title to record the current legal name of the owner. The application for certificate of title shall be made prior to the renewal of the registration for the motor vehicle.

"(c) Any dealer, acting for himself or another, who sells, trades or otherwise transfers any vehicle required to be titled under this chapter who does not comply with the provisions of this chapter shall be guilty of a misdemeanor and upon conviction shall be fined in a sum not exceeding $500.00.

§32-8-34.

"(a) Each judge of probate, commissioner of licenses, director of revenue, or other county official in this state authorized and required by law to issue motor vehicle license tags shall by virtue of his or her office be a designated agent of the department. Judges of probate, commissioners of licenses, directors of revenue, or other county licensing officials may perform their duties under this chapter either personally or through any of their deputies.

"(b) Every dealer, as defined in this chapter or Chapter 20 of this title, shall be a designated agent of the department. The dealers may perform their duties under this chapter either personally or through any of their officers or employees; provided, that the dealer or persons shall enter into a bond with a corporate surety authorized to do business in this state as surety thereon, payable to the State of Alabama in a sum to be determined by the department, but in no event less than ten thousand dollars ($10,000) as provided in Section 40-12-398, conditioned on the faithful performance of their duties under this chapter.

"(c) The department may appoint other persons in this state as its designated agents. An appointee shall enter into a bond as provided in subsection (b). Full-time bonded employees of the Department of Revenue may serve as designated agents without additional bond. A qualified designated agent of the department located outside of this state may continue as a designated agent of the department as long as he or she complies with the requirements of this chapter.

§32-8-35.

"(a) The application for the first certificate of title of a vehicle in this state shall be made by the owner to a designated agent, on the form the department prescribes, and shall contain all of the following:

"(1) The current legal name, current residence, and current mailing address of the owner.

"(2) A description of the vehicle including the following data: Year, make, model, vehicle identification number, type of body, the number of cylinders, color, and whether new or used.

"(3) The date of purchase by applicant, the name and address of the person from whom the vehicle was acquired, and the names and addresses of any lienholders in the order of their priority and the dates of their security agreements.

"(4) Other information that the department may require.

"(b) If the application is for a vehicle purchased from a dealer, it shall contain the name and address of any lienholder holding a security interest created or reserved at the time of the sale and the date of the security agreement and shall be signed by the designated agent as well as the owner, and the designated agent shall forward the application to the department in a manner prescribed by the department.

"(c) If the application is for a new vehicle, it shall be accompanied by the certified manufacturer's statement of origin showing proper assignments to the applicant. The manufacturer upon the shipment of a motor vehicle into this state shall forthwith furnish the dealer with a certified statement of origin.

"(d) Each application shall contain or be accompanied by the certificate of a designated agent that the vehicle has been physically inspected by the agent, that the vehicle identification number and descriptive data shown on the application, pursuant to the requirements of subsection (a)(2), are correct, and that the agent identified the person signing the application and witnessed the signature.

"(e) If the application is for a first certificate of title on a vehicle other than a new vehicle, then the application shall conform with the requirements of this section; except, that in lieu of the manufacturer's statement of origin, the application shall be accompanied by a copy of the notarized bill of sale of the motor vehicle whereby the applicant claims title or in lieu thereof certified copies of the last two years' license tag and tax receipts and any other information the department may reasonably require to identify the vehicle and to enable the department to determine the ownership of the vehicle and the existence or nonexistence of security interests in it.

"(f) If the application refers to a vehicle last previously registered in another state or country, the application shall contain or be accompanied by the following:

"(1) Any certificate of title issued by the other state or country.

"(2) Any other information and documents as the department may reasonably require to establish the ownership of the vehicle and the existence or nonexistence of security interests in it.

"(3) The certificate of a designated agent that the vehicle has been physically inspected by him or her, that the vehicle identification number and descriptive data shown on the application pursuant to subsection (a)(2) are correct, and any other proof of the identity of the vehicle as the department may reasonably require.

"(g) Every designated agent, within 10 calendar days after an application is received by him or her, shall forward to the department, in a manner as prescribed by the department, the fee as provided in Section 32-8-6, and the application, along with any other evidence of title as may have been delivered to the designated agent by the applicant.

§32-8-39.

"(a) Each certificate of title issued by the department shall contain:

"(1) The date issued;

"(2) The current legal name and current address of the owner;

"(3) The names and addresses of any lienholders in the order of priority as shown on the application, or if the application is based on a certificate of title, as shown on the certificate;

"(4) The title number;

"(5) A description of the vehicle including the following data: year, make, model, vehicle identification number, type of body, number of cylinders, whether new or used and if a new vehicle the date of the first sale of the vehicle for use; and

"(6) Any other data the department prescribes.

"(b) Unless security is furnished as provided in Section 32-8-36, a distinctive certificate of title shall be issued for a vehicle last previously registered in another state or country, the laws of which do not require that lienholders be named on a certificate of title to perfect their security interests. The certificate shall contain the legend, "This vehicle may be subject to an undisclosed lien" and may contain any other information the department prescribes. If no notice of a security interest in the vehicle is received by the department within four months from the issuance of the distinctive certificate of title, the department shall, upon application and surrender of the distinctive certificate, issue a certificate of title in ordinary form.

"(c) The certificate of title shall contain forms for assignment and warranty of title by the owner, and for assignment and warranty of title by a dealer, and may contain forms for applications for a certificate of title by a transferee, the naming of a lienholder and the assignment or release of the security interest by a lienholder.

"(d) A certificate of title issued by the department is prima facie evidence of the facts appearing on it.

"(e) A certificate of title to a vehicle is not subject to garnishment, attachment, execution or other judicial process, but this subsection does not prevent a lawful levy upon the vehicle."

Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Revenue Department

Motor Vehicles

Certificate of Title

Code Amended