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Bill Analysis — Senate Bill 379, Issuance of Unregisterable Cert. of Title (May 6, 2021)

Summary

Bill analysis of Senate Bill 379, Issuance of Unregisterable Cert. of Title, for the Senate Commerce and Insurance committee, dated May 6, 2021. It states the bill would require the Division of Motor Vehicles (DMV) to create and issue an unregisterable certificate of title for certain eligible motor vehicles, and would create an application process for insurance companies or their agents and contractors to apply for one under certain circumstances. It would also create a towing and storage lien and priority for out-of-state registered vehicles in the possession of an insurance company, agent, or contractor. The act would become effective October 1, 2021.

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“Bill Analysis — Senate Bill 379, Issuance of Unregisterable Cert. of Title (May 6, 2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-05-06-s379-smbg-33-e1-v1-935e5755cb/, SHA-256 33084e34491959b2d9f4e79e41c372f02179d009ef074b3b5bdea4bf23f8b14c.

Full text

                                                     SENATE BILL 379:
                                                     Issuance of Unregisterable Cert. of Title.
      2021-2022 General Assembly
     Committee:     Senate Commerce and Insurance. If favorable, Date:          May 6, 2021
                    re-refer to Rules and Operations of the Senate
     Introduced by: Sens. B. Jackson, McInnis                      Prepared by: Howard Marsilio
     Analysis of:   First Edition                                               Staff Attorney

     OVERVIEW: Senate Bill 379 would require the Division of Motor Vehicles (DMV) to create and issue
     an unregisterable certificate of title for certain eligible motor vehicles, and would create an application
     process for insurance companies or their agents and contractors to apply for an unregistrable
     certificate of title under certain circumstances.
     CURRENT LAW: Generally certificates of titles evidence the ownership of vehicles and the liens
     against vehicles. A new title is issued when a title is lost or vehicle ownership or lienholder information
     changes. Vehicle titles can be issued, duplicated, corrected, cancelled, branded, and junked.
     Procedures vary for certificate of title applications based on the type of vehicle and other circumstances
     as outlined by law. Currently, there is no certificate of title, title application process, or title brand that
     relates to an unregisterable certificate of title.
     BILL ANALYSIS: Senate Bill 379 would:
            •     Require DMV to create and issue an unregisterable certificate of title to an owner of an eligible
                  vehicle, which looks different than other types of titles and contains a notice stating that the vehicle
                  is no longer able to be registered in this State for highway use, and only allows for ownership
                  transfer for parts, destruction, or recycling.
            •     Clarify that the Division may rescind an unregisterable certificate of title issued in error.
            •     Create an application process for an insurance company to apply for an unregisterable certificate
                  of title to a vehicle registered in another state, under certain conditions, when the insurance
                  company is unable to obtain a properly endorsed title or other ownership documents for the vehicle.
                  These conditions include, among others, that the vehicle is a declared a total loss vehicle, and the
                  owner has accepted an insurance settlement from the insurance company.
            •     Create a towing and storage lien and priority for out-of-state registered vehicles in the possession,
                  with the owner's permission, of an insurance company, agent, or contractor of the insurance
                  company.
            •     Authorize the application for an unregisterable certificate of title by the agent or contractor for the
                  purpose of selling the vehicle to satisfy the towing and storage lien, if the insurance company
                  denies coverage or fails to reach a settlement and the owner or lienholder fails to pay the lien and
                  take possession of the vehicle.
            •     Would specify that any owner, lienholder, or subsequent purchaser would have no cause of action
                  against the Division based on harm that results from an unregisterable certificate of title issuance
                  to, or actions by, an insurance company, agent or contractor under these processes.
                                                                                                                                                             Legislative Analysis
     Jeffrey Hudson
                                                                                                                                                                   Division
         Director                                           S379-SMBG-33(e1)-v-1                                                                               919-733-2578
This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
Senate Bill 379
Page 2

EFFECTIVE DATE: This act would become effective October 1, 2021.

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