Revision: Feb. 11, 2011, midnight
SB 156-FN-LOCAL – AS INTRODUCED
2011 SESSION
03/05
SENATE BILL 156-FN-LOCAL
AN ACT authorizing retail vehicle dealers to act as agents of the division of motor vehicles in the issuance of vehicle titles and registrations.
SPONSORS: Sen. Sanborn, Dist 7; Sen. Lambert, Dist 13; Sen. Bragdon, Dist 11; Sen. Luther, Dist 12; Sen. Merrill, Dist 21; Sen. Gallus, Dist 1; Sen. White, Dist 9; Sen. Bradley, Dist 3; Sen. Rausch, Dist 19; Sen. Morse, Dist 22; Sen. Groen, Dist 6; Sen. Carson, Dist 14; Sen. De Blois, Dist 18; Sen. Forsythe, Dist 4; Rep. T. Keane, Merr 13; Rep. Cohn, Merr 6; Rep. Kreis, Merr 6; Rep. Jennifer Coffey, Merr 6; Rep. Bettencourt, Rock 4
This bill authorizes retail vehicle dealers to act as agents of the division of motor vehicles in the issuance of vehicle titles and registrations.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0930
03/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT authorizing retail vehicle dealers to act as agents of the division of motor vehicles in the issuance of vehicle titles and registrations.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Statement of Purpose.
I. This bill known as Electronic Vehicle Registration (EVR) law will allow New Hampshire residents to choose the most convenient place to register their newly purchased vehicle: their town or city hall or the New Hampshire dealership where it was purchased.
II. Currently, New Hampshire residents and businesses can only register their vehicles at town or city halls. In more than 30 other states, customers can choose to electronically register their vehicle at the dealership. These dealers securely and quickly electronically transmit the official local and state fees and data to the appropriate entity. This bill seeks to replicate the success in those states.
III. This bill will:
(a) Allow customers to securely register their vehicles at dealerships but only at time of sale of the vehicle.
(b) Improve customer service at the towns, cities, state and dealerships.
(c) Allow law enforcement access to temporary plate information.
(d) Allow New Hampshire dealers to collect and electronically remit the official fees, securely and promptly, to the towns or cities and the state as they have successfully done in other states.
(e) Allow towns and cities and the state to collect revenues more quickly and safely.
IV. Current town revenues are to stay with the towns. The fees collected by dealer agents will be transmitted to the same government entity where the fees are currently sent or collected. This includes the registration permits fees (RSA 261:153, I), town clerk fee (RSA 261:152), title application fee (RSA 261:4, IV), municipal agent fee (RSA 261:74-d), waste reclamation fee (RSA 261:153, V), municipal transportation improvement fee (RSA 261:153, VI), collection of permit fees in unorganized places (RSA 261:160), and the public parking facilities fee (RSA 261:154).
2 New Paragraph; Notification of Unpaid Fines. Amend RSA 231:130-a by inserting after paragraph II the following new paragraph:
III. The town or city clerk may provide the notifications permitted by subparagraphs I(b) and I(c) to electronic vehicle registration integrators operating under an agreement with the department of safety pursuant to RSA 261:74-s.
3 Bond Required. Amend RSA 261:98, I to read as follows:
I.(a) Every retail vehicle dealer as defined in RSA 259:89-a, every auto wholesale dealer as defined in RSA 259:5-a, every automotive recycling dealer as specified by RSA 261:123, and certain utility dealers as defined by RSA 259:121 if required by rule of the commissioner, shall obtain a bond or equivalent proof of financial responsibility as described in paragraph VI, and continue in effect a surety bond or other equivalent proof of financial responsibility satisfactory to the department in the amount of $25,000 executed by a surety company authorized to transact business in the state by the insurance department.
(b) The bond or its equivalent shall only be for the benefit of:
(1) A natural person who purchases a vehicle from a dealer, an automotive recycling dealer, or a utility dealer, and who suffers loss on account of:
[(a)] (A) The dealer’s default or nonpayment of all valid bank drafts, including checks, drawn by the dealer for the purchase of motor vehicles;
[(b)] (B) The dealer’s failure to deliver in conjunction with the sale of a motor vehicle a valid motor vehicle title certificate free and clear of any prior owner’s interests and all liens except a lien created by or expressly assumed in writing by the buyer of the vehicle;
[(c)] (C) The motor vehicle purchased from the dealer was stolen; or
[(d)] (D) The dealer’s intentional or knowing failure to disclose the vehicle’s actual mileage at the time of sale.
(2) A New Hampshire town or city or the state of New Hampshire which suffers loss on account of:
(A) The dealer’s failure to collect all official fees related to motor vehicle registration, registration renewal, registration transfer, and title applications required and permitted under this chapter; or
(B) The dealer’s nonpayment of all official fees collected to register a motor vehicle, renew a registration, transfer a registration, or title a vehicle.
(c) Subparagraph (b)(2) shall apply to only those dealers who are dealer agents appointed pursuant to RSA 261:74-h. Subparagraph (b)(2), if applicable, shall not require the dealer to obtain a separate bond.
4 New Subdivision; Registration by Dealer Agents. Amend RSA 261 by inserting after section 74-g the following new subdivision:
Registration by Dealer Agents
261:74-h Appointment of Dealer Agents. Subject to the direction and approval of the commissioner, the director may appoint retail vehicle dealers meeting the requirements of RSA 261:103-a as agents to process motor vehicle registrations, registration renewals, or registration transfers and title applications in conjunction with the sale of a new or used vehicle by said dealer.
261:74-i Duration of Appointment. The director shall appoint those dealers that meet the reasonable security requirements and other requirements as set forth in this chapter and in rule. The appointment of any dealer for the purposes of this subdivision shall continue only as long as the ownership of the dealer remains the same, except as provided in RSA 261:74-j and RSA 261:74-q. In case of a transfer of ownership, the new owner may apply to become a dealer agent.
261:74-j Qualifications and Training of Dealer Agents. No dealer shall be appointed as an agent unless the dealer principal or its staff meet the qualifications and successfully complete the training programs established under RSA 261:74-r. No dealer agent may perform the duties required under this subdivision unless the dealer principal or its staff continues to meet the reasonable qualification and training requirements.
261:74-k Duties of Dealer Agents. Each dealer agent or its staff shall perform all the duties necessary to register motor vehicles, renew motor vehicle registrations, transfer motor vehicle registrations, and process title applications unless the director determines otherwise. Dealers shall be responsible to the division, or towns and cities where applicable, for any inventory of title applications, registration forms, and any other materials issued to them and for all moneys collected.
261:74-l Security and Record-Keeping Requirements. Before receiving title applications, registration forms, and any materials related to electronic vehicle registration, dealer agents shall adopt and implement security and record-keeping requirements satisfactory to the director.
261:74-m Examination of Dealer Agent Records. Any dealer appointed as an agent pursuant to this subdivision shall be deemed to have given its consent for authorized agents of the department and any auditor employed or commissioned by the state of New Hampshire or the municipality to examine, during usual business hours and with reasonable notice, the records required to be preserved under this chapter; provided no such agent shall be subjected to unnecessary or unreasonable examinations or investigations.
261:74-n Collection of Fees.
I. Dealer agents shall collect the fees required to process motor vehicle registrations, registration renewals, transfers of registrations, and title applications as set forth this chapter.
II. When a dealer agent processes motor vehicle registrations, the towns and cities shall receive the following fees through the dealer agent: the registration permit fee under RSA 261:153, I, town clerk fee under RSA 261:152, the title application fee under RSA 261:4, IV, the municipal agent fee under RSA 261:74-d, the waste reclamation fee under RSA 261:153, V, the municipal transportation improvement fee under RSA 261:153, VI, the collection of permit fees in unorganized places under RSA 261:160, and the public parking facilities fee under RSA 261:154.
III. When a registration permit applicant resides in a town that assesses, levies, or collects a resident tax pursuant to RSA 72:1, the applicant shall comply with the provisions of RSA 261:71 either by showing or causing to be shown to the dealer agent a tax receipt or by executing the affidavit permitted under RSA 261:71 at the time of sale; however, if a resident tax town electronically shares resident tax data with the electronic vehicle registration integrator, an applicant shall not be permitted to register a vehicle if such data reveals that the applicant is delinquent in paying the resident tax.
IV. If the applicant resides in a town or city which has adopted the provisions of RSA 231:130-a and the town or city has provided notification of unpaid fines to the electronic vehicle registration integrator pursuant to 231:130-a, III, a dealer agent shall not issue a registration permit to the applicant unless the town or city clerk’s records reveal no outstanding parking violations in this state.
261:74-o Optional Electronic Vehicle Registration Charge. Each dealer agent may collect a charge from the consumer to transmit the registration and title data and the fees collected required to register a motor vehicle, renew a motor vehicle registration, transfer a motor vehicle registration, or title a motor vehicle. This optional charge is in addition to other dealership fees or charges and the fees otherwise required to register a motor vehicle, transfer a motor vehicle registration, renew a motor vehicle registration, or title a motor vehicle. The charge shall be separately stated and identified as “optional electronic vehicle registration charge” on the purchase agreement between customer and dealer-agent. If a customer declines to pay the optional electronic vehicle registration charge, the dealer agent is not required to register or title the vehicle or collect the required fees.
261:74-p Proof of Residency. A dealer agent shall not process any vehicle registration, registration renewal, or transfer of motor vehicle registrations of a natural person unless the applicant has provided to the dealer agent a current New Hampshire driver’s license or New Hampshire nondriver’s picture identification card with an address matching the application to be transmitted. Dealer agents shall not process registrations for homeless residents without a permanent address eligible to register under RSA 261:52-c. A dealer agent may register the vehicles of a corporation or other legal entity with a place of business in this state if the applicant is a registered business in New Hampshire and in good standing.
261:74-q Revocation of Agency Status.
I. The director may revoke a dealer’s agent status for any violation of law or rule governing electronic vehicle registration, any violation of the dealer agent’s security and record-keeping plan, revocation or suspension of the dealer license, or any other action that in the director’s opinion adversely affects the registration system. If the director determines that a dealer agent has not continued to fulfill the requirements of this subdivision or has violated any of the rules adopted pursuant to this subdivision, the director shall commence a process to suspend or revoke the agent status of the dealer. The director shall take into account concerns by towns or cities about dealer agents.
II. Any dealer agent whose appointment is sought to be suspended or revoked shall be afforded the opportunity for a hearing before the bureau of hearings prior to such suspension or revocation. Following the hearing, the director may suspend or revoke the appointment as dealer agent upon satisfactory evidence of malfeasance, misfeasance, theft, financial instability, or violation of the rules adopted under this subdivision and that the revocation is in the best interest of the state.
III. Upon the revocation of such agency, the dealer agent shall surrender to the department or its authorized agent all materials issued by the state under the provision of this subdivision and all records pertaining to all matters authorized by this subdivision.
IV. Whenever an authorized auditor of the state of New Hampshire or the department determines that the public interest requires immediate action, the director may issue a temporary order suspending the authority of a dealer agent to register or transfer registrations, pending a hearing.
261:74-r Rulemaking. The director shall adopt rules pursuant to RSA 541-A relative to:
I. Minimum standards for the qualification of dealer agents and their staffs.
II. Minimum security standards for the dealer agent, staff, and dealer agent facility.
III. Training requirements and programs for dealer agents and their staffs.
IV. The collection, deposit, and remittance of state and local funds pursuant to this subdivision.
V. The completion of required reports and records and their submission to the department.
VI. Minimum standards of accuracy, legibility, and timeliness of submission for documents and reports.
VII. The indemnification of the state or town or city in case of loss.
VIII. The efficient and economical administration of this subdivision.
IX. Revocation and suspension of dealer agent status.
X. The ability to enter into agreements with dealer-agents and EVR Integrators.
261:74-s Agreements with Electronic Vehicle Registration Integrators.
I. Upon approval of the attorney general and governor and council, the department may enter into an agreement with an electronic vehicle registration integrator to provide, at no cost to the state, the necessary hardware, software, and network connections between dealer agents and the department for the electronic transmittal and receipt of registration and title data. The electronic vehicle registration integrator shall be authorized in the agreement to collect and transfer funds electronically from the dealers to the department, towns, cities, or town clerks, where appropriate. The first agreement entered into under this section shall not last longer than 270 days. RSA 261:141-b shall not apply to electronic transfers to or from an electronic vehicle registration integrator or a dealer agent. Electronic vehicle registration integrators shall transmit funds within one business day to the appropriate entity if the entity accepts electronic transfers of funds and within 30 days to any other entity.
II. An agreement under this section shall provide for minimum standards established by the department and the department of information technology for transfers of data and funds, financial solvency of the electronic vehicle registration integrator, training of dealer-agents by the electronic vehicle registration integrator, implementation of an electronic vehicle registration integrator “help line” to assist dealer agents, automatic calculation of all fees required by this chapter, bonding to indemnify the state, municipalities, and dealers in the event of loss, security, and privacy of motor vehicle records, access by state-appointed auditors to the records and reports of the electronic vehicle registration integrator, minimum standards for the accuracy and timeliness of submission of data and funds, reporting to the state, towns, or cities, transmittal of fees required to register a motor vehicle, renew a motor vehicle registration, transfer a motor vehicle registration, or title a vehicle provided said fees are transmitted to the appropriate entity in the manner set forth in this chapter, conditions for cancellation of the agreement, and the other requirements related to the efficient and economical administration of this subdivision.
5 Report by Commissioner of Safety. Six months after implementation of the first agreement entered into under the authority of RSA 261:74-s, the commissioner of safety shall submit a report evaluating the dealer agent program and the use of the electronic vehicle registration integrator. The report shall include recommendations for improving the program, if any. The commissioner shall submit the report to each senate and house standing committee with jurisdiction over transportation and commerce.
6 Effective Date. This act shall take effect upon its passage.
LBAO
11-0930
02/10/11
SB 156-FN-LOCAL - FISCAL NOTE
AN ACT authorizing retail vehicle dealers to act as agents of the division of motor vehicles in the issuance of vehicle titles and registrations.
FISCAL IMPACT:
The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from the New Hampshire Municipal Association. When completed, the fiscal note will be forwarded to the Senate Clerk's Office.