Federal

USDOT FY2016 Budget

Included in the six-year transportation funding proposal are provisions to:

• Allow NHTSA to issue an imminent hazard order requiring auto manufacturers to immediately take action to alleviate harm in cases where there is an imminent risk of injury or death.
• Amend recall authority to require rental companies and used car dealers to fix vehicles before making them available to the public.
• Require franchise dealers of a motor vehicle manufacturer to check VINs for open recalls every time a vehicle from that manufacturer is brought in for service and notify the vehicle owner
• Establish a pilot grant program under which a participating state will inform each consumer, at the time of registration in the state, of any open recall on that vehicle.
• Give DOT the authority to require independent tire dealers to follow the same registration procedures as franchise tire dealers and increases the time period for consumers to receive a free remedy for defective tires to 6 months.

California

AB 516 - Requires the DMV to develop a temporary license plate system to enable vehicle dealers and lessor-retailers to provide temporary license plates, and would require the system to begin operation on or before January 1, 2017. Requires, commencing January 1, 2017, a motor vehicle dealer or lessor retailer to affix a temporary license plate, at the time of sale, to a vehicle sold without a permanent license plate. Imposes a state-mandated local program. Provides that no reimbursement is required by this act for a specified reason.

AB 2197 - Requires the DMV to request proposals before April 1, 2015 for the development of a temporary license plate system that would enable vehicle dealers and lessor-retailers to print temporary license plates on weatherproof paper or other media selected by the DMV. Requires a vehicle dealer or lessor-retailer to install temporary license plates at the time of sale and to electronically record and transmit information, such as the plates' number and the vehicle’s make and model, to the temporary license plate system. Authorizes vehicle dealers and the DMV to impose fees for temporary license plate processing.

Illinois

SB 1641 -Allows the Secretary of State to use moneys in the NMVTIS Trust Fund to pay for any expenses related to vehicle registration or titling.

HB 2503 - Requires that title applications for a motor vehicle to be verified by NMVTIS prior to the title issuance. Requires that applications for a salvage certificate be verified by NMVTIS for a vehicle history report prior to the certificate issuance. Provides that each application title or a salvage certificate that NMVTIS returns with a warning or error to be reviewed by the Secretary of State or his or her designee, as to whether the warning or error warrants a change to the type of title or brand that is issued.

Provides that any title application or a salvage certificate returned with a NMVTIS warning indicating structural defects equivalent to a junk vehicle in this state or a brand indicating the motor vehicle is no longer capable of being driven shall receive a title with a “prior out of state junk” brand and shall be issued the appropriate title, salvage certificate or junk certificate that reflects the motor vehicle’s structural history if that history item was entered 120 months or more before the date of the submission of the current application for title. Any application that is returned with a NMVTIS warning or error indicating a brand or label from another jurisdiction that does not have a similar or comparable brand or label in IL, shall include a notation or brand on the certificate of title stating “previously branded”.

Any vehicle that is subject to the federal Truth in Mileage Act that is returned with a NMVTIS warning indicating the stated mileage on the application for title is 1,500 or fewer miles less than a previously recorded shall be deemed as having an acceptable margin of error and the higher of the two figures shall be indicated on the new certificate of title, if the previous mileage was recorded within 90 days of the date of the current application and if there are no indications of fraud or tampering.

States that any applicant who receives an alternative salvage or junk certificate or who receives a certificate of title with a brand or label indicating the vehicle was previously rebuilt prior out of state junk, previously branded or flood, may contest the Secretary’s designations by requesting an administrative hearing. Allows for refunds to be granted for any title-related transaction if a title application has not been processed by the Secretary of State. States that if any application for a certificate of title or salvage title is verified by NMVTIS and receives a warning from NMVTIS that the vehicle requires either a salvage certificate or a junk certificate in lieu of the original applied certificate of title or salvage title, then the applicant shall have six months to apply for a refund of cost or the difference of the certificate of title or salvage certificate.

Iowa

SF 422 and HF 563- Companion bills stipulate that the owner of a motor vehicle without title or junking certificate may dispose of the vehicle to a licensed recycler for scrap or junk if the vehicle is three model years old or older and is valued for scrap at less than $1,000.

Requires applicants to become an authorized vehicle recycler to provide proof of registration with NMVTIS and requires a vehicle recycler license to state the NMVTIS ID. Requires a licensed vehicle recycler subject to NMVTIS requirements to register with NMVTIS, and for any vehicle purchased to be reported to NMVTIS within 48 hours of purchase and compliance records to be kept for at least three years.

Stipulates that requirements do not apply to a vehicle that has been crushed or flattened so as to no longer resemble the vehicle described by the certificate of title if the purchasing recycler verifies that the seller has met the reporting requirements. Provides that the DOT shall adopt rules relating to the form of the verification, and the manner in which the verification shall be retained.

Provides that a violation is a serious misdemeanor punishable by a fine of at least $315, but not to exceed $1,875, and imprisonment not to exceed one year. Provides that a vehicle recycler license or application may be denied, revoked or suspended if DOT finds that the licensee has not complied with the provisions of the bill or with federal regulations relating to the NMVTIS.

Indiana

[HB 1396 ](http://iga.in.gov/static- documents/c/5/d/f/c5dfadc0/HB1396.02.COMH.CRS001.pdf)Requires a licensed automotive salvage recycler that buys vehicles to:

1. Report the purchase of a vehicle to the National Motor Vehicle Title Information System (NMVTIS) within 30 days after the vehicle is purchased.
2. Provide to the seller a valid NMVTIS report identification number.

Mississippi

HB 151 - Requires the Department of Revenue to develop and implement an Internet-based system by July 1, 2015 for used motor vehicle parts dealers and scrap metal processors to submit title information on vehicles purchased for parts or salvage. Repeals the requirement that a used motor vehicle parts dealer or scrap metal processors to report any transactions to NMVTIS until such a system is available.

Missouri

HB 524 - Authorizes the Director of the Department of Revenue to adopt rules and regulations that authorize a lienholder to electronically release a lien on property titled with the Department. Stipulates that only liens filed electronically with the Department may be released electronically. Provides that the Department shall confirm the release of the lien electronically.

New Hampshire

HB 310- Requires facilities where any motor vehicle is first crushed, shredded, baled, or sheared to submit to NMVTIS and to the Department of Safety within 30 days an electronic file containing information to identify the vehicle and provide contact information for all parties.

Requires the title to be assigned to the facility and submitted with any other documents to the Department. Stipulates that crushed, shredded, baled, or sheared shall be accompanied in transport with a copy of the NMVTIS report or some alternative proof of reporting.

North Carolina

SB 370 - Allows the use of electronic means to sign and notate an application for a certificate of title, a registration plate, a registration card, and any other document required by the Division of Motor Vehicles. Requires a secured party to provide electronic notice of the satisfaction or other discharge of a security interest in a motor vehicle for which the certificate of title is notated by a lien through electronic means.

Tennessee

HB 124 - Authorizes county clerks to charge a fee of $5 for same-day vehicle title printing services. Allows county clerks to enter into agreements with third-party service providers to facilitate online services available through the clerk’s web site. Allows such third-party providers to impose a transaction fee on all transactions to be paid to the third-party service provider.

Defines “live title printing services” to mean when a county clerk contracts with a third-party service provider that performs a live or real-time search for the customer data in the Department of Revenue’s database, followed by a real-time edit check for the transaction against the state’s business and logic database, and updates new customer information in the state’s database so that the transaction is immediately viewable statewide.

HB 1043 and SB 1098 Requires any motor vehicle dismantler and recycler required to be licensed or scrap metal processor who purchases motor vehicles for parts, dismantling or scrap to maintain a record of transactions for three years of each vehicle bought, sold, dismantled, exchanged or received by the dismantler and recycler or scrap metal processor.

Requires the purchasing dismantler and recycler or scrap metal processor to require the seller to provide proof of ownership by providing a properly endorsed vehicle title. Stipulates that if the motor vehicle dismantler and recycler or scrap metal processor purchases a vehicle that is twelve years old or older solely for parts, dismantling or scrap, obtaining the title is not required if the dismantler and recycler or scrap metal processor does not dismantle, crush or shred the vehicle for a period of three business days, including the date of purchase, and if the certain information is obtained by the buyer and maintained as a part of the record.

States that any motor vehicle dismantler and recycler required to be licensed, or scrap metal processor, who purchases a motor vehicle for scrap or parts, shall submit to the National Motor Vehicle Title Information System (NMVTIS) all information required pursuant to 28 C.F.R 25.56 within 24 hours, not counting weekends or legal holidays, of the close of business of the day the motor vehicle was received. Stipulates that failure to do so is a Class A misdemeanor punishable by a fine of $1,000.

Requires the Department of Revenue to verify within 24 hours of receipt of the information reported whether or not the motor vehicle reported has been reported stolen. Provides that the Department may develop a method to allow a person subject to this section to verify at the time of the transaction, through the use of the Internet, at no cost, that the vehicle has not been reported stolen, and that also allows for the Department’s response to be printed and retained by the person making the request.

Texas

HB 1977 –Repeals the requirement that a person performing booting operations must have a license to do so.

Repeals sections of law regarding:

1. A dual license for a vehicle storage facility employee and towing operator.
2. Incident management towing operator’s license.
3. Private property towing operator’s license.
4. Consent towing operator’s license.
5. Training license for a person engaged in the process of learning and assisting in the operation of a tow truck under the supervision of a licensed tow truck operator.
6. Boot operator’s license.
7. Continuing education programs for towing operators.

HB 3265 -Repeals provisions in existing statute that require a person who performs booting operations or operates a booting company to be licensed.

Provides that if a vehicle is not claimed by a person authorized to claim the vehicle before the 10th day after the date notice is mailed or published, the operator of the vehicle storage facility shall consider the vehicle to be abandoned and send notice of abandonment to a law enforcement agency. (Page 39)

Requires a vehicle storage facility accepting a non-consent towed vehicle to post a sign that complies with the font and size requirements determined by the Department stating, “Non-consent tow fees schedules available on request.”

Virginia

HB 2189- Changes the penalty for dealers' noncompliance with requirements for issuance of temporary license plates from a Class 3 misdemeanor to a Class 1 misdemeanor.