HB 337 — Change Salvage Vehicle Transfer Requirements.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 H 21 HOUSE BILL 337 Committee Substitute Favorable 4/9/19 Short Title:

Representatives Torbett and Lewis (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Transportation, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House March 13, 2019 A BILL TO BE ENTITLED AN ACT TO AMEND LAWS GOVERNING THE TRANSFER OF SALVAGE VEHICLES BY REMOVING NOTARY REQUIREMENTS, PERMITTING ELECTRONIC SIGNATURES, AND ALLOWING ACCESS TO DIVISION OF MOTOR VEHICLE SYSTEMS FOR SALVAGE VEHICLE TITLE PROCESSING.

The required notarization of any electronic signature on any application or document submitted to the Division pursuant to this subsection may be performed electronically in accordance with Article 2 of Chapter 10B of the General Statutes.Statutes." SECTION 2.

The Division will not certify or approve a specific electronic process or vendor.

Any entity offering an electronic signature process assumes all responsibility and liability for the accuracy of the signature.

The Division shall be held harmless from any liability to a claim arising from applications submitted with an inaccurate electronic signature pursuant to this subsection." SECTION 2.

– The Division shall accept electronic applications for the issuance of registration plates, registration certificates, salvage certificatescertificate of title, and certificates of title, and is authorized to electronically collect fees from online motor vehicle registration vendors under contract with the Division.

TransactionsMotor authorized in this subsection and conducted by a licensed used motor vehicle dealer whosetransactions primaryauthorized businessin isthis thesubsection sale of salvage vehicles on behalf of insurers may include submissions to the Division on behalf of insurers pursuant to G.S.

"(b) In order to assign or transfer title or interest in any motor vehicle registered under the provisions of this Article, the owner shall execute in the presence of a person authorized to administer oaths an assignment and warranty of title on the reverse of the certificate of title in form approved by the Division, including in such assignment the name and address of the *H337-v-2* General Assembly Of North Carolina Session 2019 transferee;

The provisions of this section shall not apply to any foreclosure or repossession under a chattel mortgage or conditional sales contract or any *H337-v-1* General Assembly Of North Carolina Session 2019 judicial sale.

20-109.1(b)(2)20-109.1(b)(2)orG.S. or (ii) any transfer to a used motor vehicle dealer pursuant to G.S.

20-109.1(b)(3) or(ii)anytransferto ausedmotorvehicle dealer pursuant to G.S.

The knowing and intentional filing of a false sworn certification with the Division pursuant to this subsection shall constitute a Class H felony.Adealerprincipal,owner,ormanagerofa motorvehicledealershipwhoisnotasignatorymotorvehicledealership whoisnotasignatory of the sworn certification required under this subsection may only be charged for a criminal violation for filing a false certification under this subsection by another dealership employee if the dealer principal, owner, or manager had actual knowledge of the falsity of the sworn certification at the time the sworn certification was submitted to the Division.

Noperson shall have a causeof actionagainstaction against the Division orDivision contractors arising from the transfer of a vehicle by a sworn certification pursuant to this section.

20-109.1(b)(2) or G.S.

20-109.1(e1)."20-109.1(b)(2), SECTION20-109.1(b)(3), 4.or G.S.

20-109.1(e1).20-109.1(e1)." SECTION 4.

Page 2 House Bill 337-Second Edition General Assembly Of North Carolina Session 2019 (2) An insurance company taking the vehicle for sale or disposal for salvage purposes where the title is taken or requested as a part of a bona fide claim settlement transaction and only for the purpose of resale.

Page 2 House Bill 337-First Edition General Assembly Of North Carolina Session 2019 (3) A charitable organization operating under section 501(c)(3) of the Internal Revenue Code (26 U.S.C.

20-109.1(b)(2) or G.S.

20-109.1(e1)."20-109.1(b)(2), SECTION20-109.1(b)(3), 5.or G.S.

20-109.1(e1).20-109.1(e1)." SECTION 5.

20-78(a) reads as rewritten:

"(a) The Division, upon receipt of a properly endorsed certificate of title, application for transfer thereof and payment of all proper fees, shall issue a new certificate of title as upon an original registration.

The Division, upon receipt of an application for transfer of registration plates, together with payment of all proper fees, shall issue a new registration card transferring and assigning the registration plates and numbers thereon as upon an original assignment of registration plates.

The Division, upon receipt of an application for transfer thereof and payment of all proper fees, but without receipt of a properly endorsed certificate of title, shall issue a salvage certificate of title pursuant to G.S.

20-109.1(b)(2) G.S.

20-109.1(b)(2), 20-109.1(b)(3), or G.S.

20-109.1(e1).20-109.1(e1)." SECTION 6.

G.S.

20.00 House Bill 337-First Edition Page 3 General Assembly Of North Carolina Session 2019 (8) Each application for renewing a security interest on a certificate of title or removing a lien or security interest from a certificate of title.................20.00 (9) Each application for certificate of title for a motor vehicle transferred to a manufacturer, as defined in G.S.

20.00 House Bill 337-Second Edition Page 3 General Assembly Of North Carolina Session 2019 (10) Each application for a salvage certificate of title made by an insurer or by a used motor vehicle dealer pursuant to subdivision (b)(2) or subsection (e1) of G.S.

20-79.4..........................................................................................25.00." SECTION 6.7.

(2)Notwithstanding Ifany aother salvageprovision vehicleof ownerlaw, failswith torespect assign and deliver the vehicle's certificate of title to thea insurervehicle withindescribed 30 days of the payment of the claim in accordance with subdivision (b)(1) of this section,subsection, the insurer,following withoutshall surrenderingbe theexempt certificatefrom of title, may, at any time thereafter, request that the Divisionrequirements sendof thenotarization, insurerincluding aexemption form to use to transfer title to the vehicle from the insurernotarization toof aelectronic personsignature whorequirements buysof theG.S. vehicle from the insurer.

The request shall be made on a form prescribed by the Division and shall be accompanied by proof of payment of the claim and proof of notice sent to the owner and any lienholder requesting the vehicle's certificate of title.

If the records of the Division indicatethereis anoutstandinglien against the vehicleimmediatelybefore the payment of the claim and if the payment was made to a lienholder or to a lienholder and the owner jointly, the proof of payment shall include evidence that funds were paid to the first lienholder shown on the records of the Division.

The notice must be sent by the insurer at least 30 days prior to requesting the Division send the insurer a form to use to transfer title and must besent bycertifiedmail orbyanothercommerciallyavailabledeliveryservice providing proof of delivery to the address on record with the Division.

Upon theDivision'sreceiptofsuchrequest,thevehicle's certificateoftitleisdeemed to be assigned to the insurer.