News in 2013

Throughout the country, state legislators are considering new laws that strengthen reporting requirements for the National Motor Title Information System (NMVTIS) in an effort to bolster the effectiveness of the national database. While some states have already adopted and implemented specific rules, others have recently passed laws that will become effective over the next few months.

In an effort to keep our ADD customers informed on changes that may impact their business, we’ve taken a look around the nation to provide a brief round- up of what’s happening with NMVTIS requirements. Below is a recap of both current and recently passed legislative requirements.

Alabama requires the completion of Form MVT 5-18 as part of the dismantling process. The completed form includes seller and purchaser information and specifically requires that the dismantler’s NMVTIS identification number be provided. A NMVTIS ID is also required in order to renew a dismantler license. Read the Alabama regulations.

California requires that auto dealers pull a NMVTIS vehicle history report for every used vehicle sold at retail in the state, and that a red warning label be prominently displayed if there is any brand information associate with the vehicle. Read the California regulations.

Florida passed a new law that changes the good faith procedure for locating out-of-state owners or lienholders as part of the towed vehicle notification. The process includes a record check through the NMVTIS to determine the current state of title. The same legislation also requires tow, storage, and recovery businesses to report information about the vehicles they handle to NMVTIS. Licensed salvage motor vehicle dealers are required to report the purchase of “derelict” vehicles to NMVTIS. Tow operators must report vehicles to NMVTIS prior to applying for a Certificate of Destruction with the Florida DHSMV. All applications for a certificate of destruction in Florida must now include proof of reporting to NMVTIS. The law has an effective date of July 1, 2013. Read Florida HB 7125.

Georgia currently requires that vehicle information be reported to the state, which will then forward the information to NMVTIS. Auto Data Direct is the portal through which Georgia customers submit this information. Read the Georgia regulations.

Minnesota passed a new law that requires scrap vehicle operators who are not licensed and operators who purchase scrap without proof of ownership to submit information on the purchase or acquisition of a scrap vehicle to NMVTIS by the close of business the following day. The law has an effective date of August 1, 2013. Read Minnesota HF 1214.

Mississippi currently requires a NMVTIS ID on its title cancellation form – Form 78-031. It also just passed a law that requires used motor vehicle parts dealers or scrap metal processors who purchase or receive motor vehicles for scrap or parts to submit a list of those vehicles to the Department of Revenue within 48 hours. The bill provides for the Mississippi DOR to create an internet-based system to accept salvage vehicle data which DO will in turn provide to NMVTIS, however, the bill also specifies that until such a system is in place, recyclers should continue to report to NMVTIS through a data consolidator. A civil penalty of up to $1,000 per violation will be levied for failure to report as required above. The law has an effective date of July 1, 2013. Read Mississippi HB 1344.

South Carolina currently allows a demolisher or secondary metals recycler who purchases or otherwise acquires a vehicle with title certification may wreck, dismantle, demolish, or otherwise dispose of the vehicle after the transaction has taken place. The business must report the vehicle to NMVTIS in compliance with federal laws and regulations. South Carolina also requires a NMVTIS ID for access to the SCDMV theft check required before disposal of a vehicle that does not have a valid certificate of title, magistrate’s order of sale, or sheriff’s disposal authority. Read the South Carolina regulations.

Tennessee recently passed a law that provides that any motor vehicle dismantler and recycler or scrap metal processor who purchases a motor vehicle solely for parts, dismantling or scrap that is 12 years or older may purchase the vehicle without seeing and obtaining a copy of the title if certain conditions are met. Conditions include obtaining the name, address, and NMVTIS ID number of the dismantler and recycler or scrap metal processor. The information must be maintained for three years. The law has an effective date of July 1, 2013. Read Tennessee SB 69.

Texas currently requires a NMVTIS ID when renewing or applying for a Salvage Vehicle Dealer License. Read the Texas regulations.

Utah currently requires an operator of a motor vehicle auction to comply with the reporting requirements of NMVTIS. It also recently amended existing laws to state that certain in-state purchasers who are not a licensed as a salvage vehicle buyer may not bid on or purchase more than five salvage vehicles with a nonrepairable or salvage certificate in any 12-month period. They can not offer for sale, sell or exchange more than two vehicles with a salvage certificate in any 12-month period to someone not licensed as a salvage vehicle buyer or crusher or offer for sale, sell or exchange a vehicle with a nonrepairable certificate to someone not licensed as a salvage vehicle buyer or crusher. It provides that a vehicle that has been issued a nonrepairable certificate may not be registered. The law makes it a second degree felony to knowingly or intentionally conceal, remove, destroy or alter a branded certificate of title. Read Utah SB 249.

As additional state and federal laws and regulations are created that impact ADD customers, ADD will share the information to provide you with the tools to comply in this ever-changing regulatory environment. For more information about NMVTIS legislation, email ADD or give us a call at 855-300-3455 .