SB281 By Senator Scofield RFD Transportation and Energy Rd 1 23-FEB-16

SYNOPSIS: Under existing statutory law, the motor vehicle title law provides for certain designated motor vehicles to be subject to the title law based on the model year of the vehicles. The Department of Revenue has further provided for exemptions from the title requirements by rule based on the age of the vehicle and has included in the exemption certain new types of vehicles, such as low speed vehicles.

This bill would update title requirements for motor vehicles based on the age of the vehicle including passenger vehicles, semi-trailers, travel trailers, utility trailers, and moving collapsible folding campers. The bill would also exempt the certain vehicles from title requirements.

The bill would also further designate the penalty when a dealer violates the law to a Class A misdemeanor.

The bill would also require a thirty-five day notice to the department prior to certain involuntary transfers of motor vehicles of law.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

A BILL TO BE ENTITLED AN ACT

Relating to motor vehicles and certificates of title; to amend Sections 32-8-30, as amended by Act 2015-362; 32-8-31; 32-8-42; and 32-8-46, Code of Alabama 1975, to further provide title requirements for certain motor vehicles; to change the penalty for a dealer who violates the law; to require notice to the department of an involuntary transfer of a motor vehicle title by operation of law; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Sections 32-8-30, as amended by Act 2015-362; 32-8-31; 32-8-42; and 32-8-46 of the 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 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) 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 herself 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 Class A misdemeanor and upon conviction shall be fined a sum not exceeding $500.00.

§32-8-31.

"No certificate of title shall be issued under this chapter for any of the following:

"(1) A vehicle owned by the United States or any agency thereof.

"(2) A vehicle owned by a manufacturer or dealer and held for sale, even though incidentally moved on the highway or used for purposes of testing or demonstration, or a vehicle used by a manufacturer solely for testing.

"(3) A vehicle owned by a nonresident of this state and not required by law to be registered in this state.

"(4) A vehicle for which the Alabama license plate issuing official has verified that both the current owner and operator is recorded as the owner and operator on a currently effective certificate of title issued by another state and the certificate of title is being held by a recorded lienholder.

"(5) A vehicle moved solely by animal power.

"(6) An implement of husbandry.

"(7) Special mobile equipment.

"(8) A pole trailer.

"(9) Travel trailers and mobile trailers designated 1989 year models and prior year models A trailer, semi-trailer, travel trailer, or moving collapsible and folding camper more than 20 model years old. This exemption is applicable on January 1 of each year and applies to a trailer, semi-trailer, travel trailer, or moving collapsible folding camper with a model year, as designated by the manufacturer, more than 20 years from the current calendar year.

"(10) A manufactured home as defined in Section 32-20-2.

"(11) Utility trailers other than moving collapsible and folding campers designated 1990 and subsequent year models.

"(12) A low speed vehicle, including neighborhood electric vehicles, defined as a four-wheeled motor vehicle with a top speed of not greater than 25 miles per hour, a gross vehicle weight rating of less than 3,000 pounds, and complying with the safety standards provided in 49 C.F.R. Section 571.500.

"(12)(13) A Any other motor vehicle designated a 1974 year model or prior year model more than 35 model years old. This exemption is applicable on January 1 of each year and applies to all motor vehicles with a model year, as designated by the manufacturer, more than 35 years from the current calendar year.

"(14) A mini-truck as defined in Section 40-12-240.

"(15) A motor-driven cycle as defined in Section 32-1-1.1.

"(13)(16) Any other vehicles as prescribed by the department.

§32-8-42.

"The department shall refuse issuance of certificate of title if any required fee is not paid or if the department has reasonable grounds to believe that one of the following exists:

"(1) The applicant is not the owner of the vehicle.

"(2) The application contains a false or fraudulent statement.

"(3) The vehicle was not manufactured to comply with federal and state statutes, rules, and regulations governing safety, emissions, and antitheft standards in effect at the time of manufacture, and has not subsequently been modified to comply with the standards.

"(4) A vehicle is designated a 1974 year model or prior year model exempt pursuant to Section 32-8-31.

"(5) The applicant fails to furnish required information or documents or any additional information the department reasonably requires.

§32-8-46.

"(a)(1) If the interest of an owner in a vehicle passes to another other than by voluntary transfer, the transferee shall, except as hereinafter provided in subsection (b), promptly mail or deliver to a designated agent the last certificate of title, if available, and proof of the transfer, together with his or her application for a new certificate in the form the department prescribes.

"(2) Except as provided in subdivision (3), a person or entity initiating an involuntary transfer by operation of law in this state shall give notice of the action to the department at least 35 calendar days prior to the date of the transfer. The notice shall be in a manner as prescribed by the department and shall include all of the following:

"a. The contact information for the person or entity filing the notice.

"b. The motor vehicle's identification number, year, make, and model.

"c. The date, time, and location of the involuntary transfer by operation of law.

"(3) The notice provisions of this subsection shall not apply to a motor vehicle transferred pursuant to Chapter 13 or to a motor vehicle transferred pursuant to a divorce decree.

"(4) The department shall maintain and appropriately index public records of motor vehicles reported to it pursuant to this subsection. The department may provide lists of the vehicle identification numbers for the motor vehicles without fee in a manner as the department determines.

"(5) An application for certificate of title may not be issued for a motor vehicle subject to an involuntary transfer by operation of law until the notice requirements of this subsection are satisfied.

"(b) If the interest of the owner is terminated or the vehicle is sold under a security agreement by a lienholder named in the certificate of title, the transferee shall promptly make application to a designated agent for a new certificate in the form the department prescribes. The application shall be accompanied by the last certificate of title and an affidavit made by or on behalf of the lienholder that the vehicle was repossessed and that the interest of the owner was lawfully terminated or sold pursuant to the terms of the security agreement.

"If the lienholder succeeds to the interest of the owner and holds the vehicle for resale, he or she need not secure a new certificate of title but, upon transfer to another person, shall promptly mail or deliver to the transferee the certificate, affidavit and other documents required by the department. The transferee shall promptly make application to a designated agent for a new certificate in the form prescribed by the department.

"(c) Notwithstanding anything to the contrary contained in this section, a person holding a certificate of title whose interest in the vehicle has been extinguished or transferred other than by voluntary transfer shall forthwith mail or deliver the certificate to the department upon request of the department; and the delivery of the certificate pursuant to the request of the department does not affect the rights of the person surrendering the certificate; and the action of the department in issuing a new certificate of title as provided herein is not conclusive upon the rights of an owner or lienholder named in the old certificate."

Section 2. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621 because the bill defines a new crime or amends the definition of an existing crime.

Section 3. This act shall become effective January 1, 2017, following its passage and approval by the Governor, or its otherwise becoming law.

Motor Vehicles

Revenue Department

Motor Vehicle Dealers

Crimes and Offenses

Criminal Law and Procedure

Code Amended