News in 2010

NEW LAW AFFECTS FEES CHARGED BY THE FLORIDA DHSMV ON MOTOR VEHICLE

INQUIRIES

For many years, Florida tax collectors have had the ability to provide a motor vehicle record to qualified entities without collecting a statutorily mandated $0.50 fee (FS 320.05). Businesses, including Auto Data Direct and its customers, have benefited from this because several tax collectors have opted not to collect the $0.50 fee. In its need for additional revenue, the Florida Legislature has closed this loophole.

Effective January 1, 2011, Florida House Bill 971 (lines 957-971) removes the Tax Collector exemption to waive the $.50 fee payable to the Florida Department of Highway Safety and Motor Vehicles. In order to comply with the new law in January, Florida inquiries by VIN, tag, title, vessel or decal will be assessed an additional $.50 which will be owed to the State of Florida.

NEW LAW AFFECTS SALVAGE POOLS & INSURANCE COMPANIES

Effective September 1, 2010, a new Florida law will affect salvage pools and other entities who may temporarily store damaged or dismantled motor vehicles pursuant to an agreement with an insurance company and also sell or re-sell damaged or dismantled motor vehicles.

Florida House Bill 971 (lines 789 -828) states that an insurance company may notify a salvage pool that obtains possession of a damaged or dismantled motor vehicle and instruct them to release the vehicle to the owner.

After a salvage pool receives an official release statement from an insurance company, it must then send, by certified mail , a notice to the owner that the vehicle is available for pickup.

• The notice must inform the owner that they have 30 days after the receipt of the notice to pick up the vehicle from the salvage pool.
• If the motor vehicle is not claimed within 30 days after the owner receives the notice, the salvage pool may apply for a Certificate of Destruction or a Certificate of Title.

Upon applying for a Certificate of Destruction or Certificate of Title, the salvage pool must provide:

• A copy of the release statement from the insurance company
• Proof of providing the 30-day notice to the owner
• Applicable fees

Salvage pools cannot collect storage fees or apply for a title under FS 713.585 or [FS 713.78](http://www.leg.state.fl.us/statutes/index.cfm?mode=View Statutes&SubMenu=1&App_mode=Display_Statute&URL=0700-0799/0713/Sections/0713.78.html).

Once the DHSMV writes rules for this new law, Auto Data Direct and its DirectPost-Office certified mail service will be able to assist salvage pools with this new requirement.

CURBSTONING: IMPORTANT INFORMATION FOR TOWING COMPANIES AND AUTO DEALERS

Effective July, 1, 2010 Florida House Bill 631 (lines 135-232) empowers local governments to adopt an ordinance which allows the tow of a motor vehicle parked in violation of FS 316.1951. Florida law outlaws the sales or rental of automobiles on public property without the proper permission, license or permits, a practice commonly known as “curbstoning.”

If an ordinance is adopted by a local government, law enforcement can issue a citation and have a vehicle immediately removed at the owner’s expense. The owner of the vehicle will be assessed a $100 penalty, payable to the authorized agency plus any towing and storage fees. The vehicle cannot be released to the owner from impound or towing and storage until a release form prescribed by the DHSMV has been completed verifying that the fine has been paid to the authorized agency. The owner may pay the towing and storage charges to the towing facility pursuant to [FS 713.78](http://www.leg.state.fl.us/statutes/index.cfm?mode=View Statutes&SubMenu=1&App_mode=Display_Statute&URL=0700-0799/0713/Sections/0713.78.html) before payment of the fine or before the release form has been completed.

LAW CLARIFICATION REGARDING THE ELECTRONIC FILING SYSTEM

Florida House Bill 971 (lines 853-910) clarifies that jurisdiction over the Electronic Filing System (EFS) is preempted to the state and the DHSMV shall have regulatory authority over the system. The December 10, 2009 program standards will remain in effect until the DHSMV will adopt rules in accordance with chapter 120 to replace the standards. The Florida Administrative Weekly has published that an EFS rule development workshop will be held on July 8 and 13 at 10:00 am at the DHSMV office in Tallahassee.

LAW CLARIFICATION REGARDING DERELICT VEHICLES

Effective July, 1, 2010 Florida House Bill 631 (lines 511-631) has several updates pertaining to derelict motor vehicles. Below is a brief summary of some of these clarifications:

• The definition of a Seller - Owner of record or a person who has physical possession and responsibility for a derelict motor vehicle and attests that possession of the vehicle was obtained through lawful means along with all ownership rights.
• Seller identification required to be provided to the purchaser - Name, address, and a valid driver license number or a valid identification card number.
• If the seller is not the owner of record of the vehicle being sold, a smudge-free right thumbprint is imprinted upon the derelict motor vehicle certificate of application and transmitted to the DHSMV along with a copy of the seller’s driver’s license or identification card.
• Rules pertaining to the lien status of the vehicle:
  • If there is no active lien, or liens of 3 years or more, the vehicle must be secured for 3 full business days.
  • If there are active liens of less than 3 years, the vehicle must be secured for 10 days. The DHSMV must notify the lien holder that a derelict motor vehicle certificate has been issued and notify the lien holder of the DHSMV’s intent to remove the lien.
    • If the lien holder does not provide a written statement protesting the removal of the lien from its records, the DHSMV may remove the lien 10 days after the receipt of the application.
    • If the lien holder does provide a written statement protesting the removal of the lien from its records, the DHSMV will not remove the lien, and shall place an administrative hold on the record for 30 days to allow the lien holder the ability to apply for title or a repossession certificate. The licensed dealer must secure the derelict vehicle until the Department ’s administrative stop is removed, the lien holder submits a lien satisfaction or the lien holder takes possession of the vehicle.

Once the DHSMV writes rules for this new law, Auto Data Direct will be able to assist dealers with this new requirement.