South Carolina General Assembly
117th Session, 2007-2008

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Bill 3323

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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

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COMMITTEE REPORT

March 13, 2007

H. 3323

Introduced by Reps. Harrison and Cotty

S. Printed 3/13/07--H.    [SEC 3/14/07 12:13 PM]

Read the first time January 23, 2007.

            

THE COMMITTEE ON EDUCATION AND PUBLIC WORKS

To whom was referred a Bill (H. 3323) to amend Section 56-19-265, Code of Laws of South Carolina, 1976, relating to the Department of Motor Vehicles' acceptance of electronically filed lien information for newly, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass with amendment:

Amend the bill, as and if amended, Section 56-19-265, as contained in SECTION 1, page 2, by adding after the / . / on line 26:

/ The lienholder shall have the option to receive a paper certificate of title and to receive notices of subsequent liens and satisfaction of liens by the United States Postal Service. /

When amended, Section 56-19-265 shall read:

/ "Section 56-19-265.    (A)    Notwithstanding any other provisions of this chapter, the Department of Motor Vehicles may accept electronically filed lien information for newly acquired vehicles, vehicles already titled, and lien releases. requirement in this chapter that a lien on a motor vehicle or mobile home shall be noted on the face of the certificate of title, if there are one or more liens or encumbrances on the motor vehicle or mobile home, the Department of Motor Vehicles may electronically transmit the lien to the first lienholder and notify the first lienholder of any additional liens. Subsequent lien satisfactions may be electronically transmitted to the department and shall include the name and address of the person satisfying the lien. When electronic transmission of liens and lien satisfaction is used, a certificate of title need not be issued until the last lien is satisfied and a clear certificate of title is issued to the owner of the motor vehicle or mobile home. When a motor vehicle or mobile home is subject to an electronic lien, the certificate of title for the motor vehicle or mobile home is considered to be physically held by the lienholder for purposes of compliance with state or federal odometer disclosure requirements, and a duly certified copy of the department's electronic record of the lien is admissible in any civil, criminal, or administrative proceeding in this State as evidence of the existence of the lien. The lienholder shall have the option to receive a paper certificate of title and to receive notices of subsequent liens and satisfaction of liens by the United States Postal Service.

(B)    The department is authorized to collect a transaction fee from commercial parties who either transmit or retrieve data from the department pursuant to this section. The fee must not exceed five dollars for each transaction and must be mutually agreed to by all parties. These fees must be placed by the Comptroller General into a special restricted account to be used by the department to defray the expenses of this program.

(C)    Commercial parties and lenders who either transmit or retrieve data from the department pursuant to this section, notwithstanding Sections 37-2-202 and 37-3-202, may collect transaction fees from owners of the vehicles or mobile homes not to exceed a fee of ten dollars for each transaction which must be mutually agreed to by all parties." /

Renumber sections to conform.

Amend title to conform.

ROBERT E. WALKER for Committee.

            

A BILL

TO AMEND SECTION 56-19-265, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPARTMENT OF MOTOR VEHICLES' ACCEPTANCE OF ELECTRONICALLY FILED LIEN INFORMATION FOR NEWLY ACQUIRED VEHICLES, VEHICLES ALREADY TITLED, AND LIEN RELEASES, AND THE COLLECTION OF A TRANSACTION FEE FOR THE TRANSMISSION OR RETRIEVAL OF DATA FROM THE DEPARTMENT PURSUANT TO THIS SECTION, SO AS TO PROVIDE THAT IF THERE ARE ONE OR MORE LIENS OR ENCUMBRANCES ON A MOTOR VEHICLE OR MOBILE HOME, THE DEPARTMENT MAY ELECTRONICALLY TRANSMIT THE LIEN TO THE FIRST LIENHOLDER AND NOTIFY THE FIRST LIENHOLDER OF ANY ADDITIONAL LIENS, AND LIEN SATISFACTIONS, TO PROVIDE WHEN ELECTRONIC TRANSMISSION OF LIENS AND LIEN SATISFACTIONS IS USED, A CERTIFICATE OF TITLE MAY BE ISSUED WHEN THE LAST LIEN IS SATISFIED AND A CLEAR CERTIFICATE IS ISSUED, TO PROVIDE THAT WHEN A MOTOR VEHICLE OR MOBILE HOME IS SUBJECT TO AN ELECTRONIC LIEN, ITS CERTIFICATE OF TITLE IS PHYSICALLY HELD BY THE LIENHOLDER, TO PROVIDE THAT A CERTIFIED COPY OF AN ELECTRONIC RECORD OF A LIEN IS ADMISSIBLE IN COURT AS EVIDENCE OF THE EXISTENCE OF A LIEN, AND TO PROVIDE THAT A TRANSACTION FEE MAY BE COLLECTED BY COMMERCIAL PARTIES AND LENDERS WHO TRANSMIT OR RETRIEVE DATA PURSUANT TO THIS SECTION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 56-19-265 of the 1976 Code is amended to read:

"Section 56-19-265.    (A)    Notwithstanding any other provisions of this chapter, the Department of Motor Vehicles may accept electronically filed lien information for newly acquired vehicles, vehicles already titled, and lien releases. requirement in this chapter that a lien on a motor vehicle or mobile home shall be noted on the face of the certificate of title, if there are one or more liens or encumbrances on the motor vehicle or mobile home, the Department of Motor Vehicles may electronically transmit the lien to the first lienholder and notify the first lienholder of any additional liens. Subsequent lien satisfactions may be electronically transmitted to the department and shall include the name and address of the person satisfying the lien. When electronic transmission of liens and lien satisfaction is used, a certificate of title need not be issued until the last lien is satisfied and a clear certificate of title is issued to the owner of the motor vehicle or mobile home. When a motor vehicle or mobile home is subject to an electronic lien, the certificate of title for the motor vehicle or mobile home is considered to be physically held by the lienholder for purposes of compliance with state or federal odometer disclosure requirements, and a duly certified copy of the department's electronic record of the lien is admissible in any civil, criminal, or administrative proceeding in this State as evidence of the existence of the lien.

(B)    The department is authorized to collect a transaction fee from commercial parties who either transmit or retrieve data from the department pursuant to this section. The fee must not exceed five dollars for each transaction and must be mutually agreed to by all parties. These fees must be placed by the Comptroller General into a special restricted account to be used by the department to defray the expenses of this program.

(C)    Commercial parties and lenders who either transmit or retrieve data from the department pursuant to this section, notwithstanding Sections 37-2-202 and 37-3-202, may collect transaction fees from owners of the vehicles or mobile homes not to exceed a fee of ten dollars for each transaction which must be mutually agreed to by all parties."

SECTION    2.    This act takes effect upon approval by the Governor.

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