HB 269 Modifies laws relating to certificates of ownership

     Handler: Scott

Current Bill Summary

- Prepared by Senate Research -


CCS/SCS/HB 269 - This act establishes a procedure for adding or deleting names on an application for certificate of ownership for a motor vehicle or trailer that would cause it to be inconsistent with the names listed on a notice of lien. Under the act, the owner shall provide the director with documentation evidencing the lienholder's authorization to add or delete names on the application for certificate of ownership (Section 301.190). The act creates a similar procedure for outboard motors, motorboats, vessels, watercrafts and manufactured homes (Sections 306.410 and 700.320).

This act modifies the law with respect to garagekeeper liens that secure the payment for services rendered upon motor vehicles. Under the act, the time period for applying for a certificate of ownership is shortened. Currently, if a chattel item (i.e. motor vehicle) is not redeemed within three months of the completion of labor, the lienholder may apply to the director of revenue for a certificate of ownership or certificate of title. This act changes that time period to 45 days.

Currently, if the charges are for storage or the service of towing and the item has not been redeemed three months after the charges for storage have commenced, the lienholder shall notify the owner and any lienholder of record that an application for a lien title will be made unless the owner or lienholder makes satisfactory arrangements within 45 days. This act changes those time periods to 45 days and 30 days respectively.

The act requires the application for a certificate of ownership shall be accompanied by an affidavit. Such affidavit shall be accompanied by a copy of the 30 day notice provided to the owner of the chattel and any person holding a security interest in the chattel. Currently, the Director of Revenue is required to notify the owner and any lien holder of record of a motor vehicle, trailer, outboard motor, aircraft, or vessel, when an application is made for a lien title on such item. This provision is repealed (Section 430.082). A similar provision can be found in SB 319 (2009).

Under current law, when a person who is not a resident of the United States buys a nonrepairable motor vehicle or a salvage motor vehicle, the seller must stamp the words "FOR EXPORT ONLY" on the face of the title and in each unused reassignment space on the back of the title and forward it to the Department of Revenue. This act specifies that it is the operator of the salvage pool or salvage disposal sale or the subsequent purchaser who is required to fulfill these duties. This provision is contained in HB 644 (2009)(Section 301.218)(SA 1).

STEPHEN WITTE


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