Bill Text: NJ A4521 | 2016-2017 | Regular Session | Introduced
Bill Title: Concerns transactions reported to MVC and motor vehicle certificates of ownership.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-01-23 - Introduced, Referred to Assembly Transportation and Independent Authorities Committee [A4521 Detail]
Download: New_Jersey-2016-A4521-Introduced.html
Sponsored by:
Assemblyman JOHN F. MCKEON
District 27 (Essex and Morris)
SYNOPSIS
Concerns transactions reported to MVC and motor vehicle certificates of ownership.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning vehicle certificates of ownership and amending R.S.39:10-11.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.39:10-11 is amended to read as follows:
39:10-11. A. The purchaser of a motor vehicle in this State, other than a dealer licensed pursuant to the provisions of R.S.39:10-19, shall, and the seller of the motor vehicle may, within 10 working days after [its purchase] the vehicle transaction, submit [to the director] evidence of the purchase to the chief administrator. Upon [presentation to the director] submission by the buyer of the certificate of origin, or certificate of ownership, or bill of sale issued prior to October 1, 1946, with proper assignment and certification of the seller, or upon submission by the seller of a copy of the completed and endorsed certificate of ownership signed by the buyer and seller, the chief administrator shall file a record of the transaction [shall be made and filed. A] . Upon submission by the buyer of the appropriate documentation accompanied by a fee of $20, the chief administrator shall issue a certificate of ownership [shall be issued by the director and delivered] to the buyer, [in case of a] if the sale is not subject to a security interest [, and the director shall collect a fee of $20 for the issuance and filing thereof].
The chief administrator may retroactively file and issue a seller a record of the transaction pursuant to this subsection for the sale of a vehicle on or after July 1, 1994. As evidence of the vehicle transaction, a seller shall submit a notarized affidavit of the transaction, a bill of sale or copy of the completed and endorsed certificate of ownership signed by the buyer and seller, and proof the seller surrendered the vehicle plates to the commission.
B. In the case of a sale subject to a security interest, a certificate of ownership, with the name and address of the holder of the encumbrance or secured party or his assignee recorded thereon, shall be delivered to the holder of the encumbrance or secured party or his assignee and a copy [thereof] shall be delivered to the buyer. The [director] chief administrator shall collect a fee of $30 for [his services in issuing] the issuance of a certificate and copy thereof, and for making [a record of] and filing the record of the transaction, pursuant to this subsection.
C. Except as hereinafter in this section otherwise expressly provided, whenever a security interest is created in a motor vehicle, other than a security interest which is required to be noted on the certificate of origin or the certificate of ownership, as provided in R.S.39:10-8 and R.S.39:10-9, there shall be filed with the [director] chief administrator the certificate of ownership of the motor vehicle, together with a financing statement on a form prescribed by the [director] chief administrator. The [director] chief administrator shall make and file a record of the transaction and shall issue a certificate of ownership, recording the name and address of the secured party or his assignee thereon, and shall deliver it to the secured party or his assignee. A copy of the certificate of ownership [so] issued shall be delivered to the buyer. The [director] chief administrator shall collect a fee of $20 for [his services in issuing] the issuance of a certificate and copy thereof and for making [a record of] and filing the record of the transaction, pursuant to this subsection.
D. The financing statement required to be filed pursuant to subsection C. [hereof] of this section shall be signed only by the buyer, shall not be required to be acknowledged or proved, and shall show, in addition to [such] matters as the [director] chief administrator may require for the proper identification of the motor vehicle affected, the date of the security agreement, and the names and addresses of the parties thereto. Nothing in this section [39:10-11 contained] shall be construed as requiring that the security agreement or a copy thereof, or any proof of execution thereof other than that contained in the financing statement, shall be presented to the [director] chief administrator. When the buyer is a corporation, it shall be sufficient if the financing statement is signed by any officer thereof, or by any agent designated by the corporation for that purpose, and it shall not be necessary that the financing statement recite the authorization of the agent. When there is more than one buyer, it shall be sufficient if the financing statement is signed by any one of them.
E. Nothing in subsections C. and D. of this section shall apply to security interests in motor vehicles which constitute inventory held for sale, but such interests shall be subject to chapter 9 of Title 12A of the New Jersey Statutes, nor shall anything in [the said] subsections C. and D. apply to interests in personal property subject to chapter 28 of Title 46 of the Revised Statutes.
F. In addition to [the] any other fees [elsewhere] established in this section [provided for], there shall be paid to the [director] chief administrator at the time a certificate of ownership is issued a fee of $10 for notice of satisfaction of the lien or encumbrance of the record or abstract, or of the termination of the security interest, where the motor vehicle is subject to a lien or encumbrance or a security interest as provided in R.S.39:10-14.
G. Notwithstanding any other provision of this chapter, [when] any dealer licensed under the provisions of R.S.39:10-19 [is the purchaser of] and purchasing a motor vehicle in this State [, he] may, within 10 working days after its purchase, submit [to the director the] evidence of the purchase to the chief administrator. Upon [presentation] submission of the certificate of ownership with proper assignment and certification of the seller [to the director], the chief administrator shall file a record of the transaction [shall be made and filed]. A certificate of ownership shall be issued by the [director] chief administrator and delivered to [such] the purchaser, and the [director] chief administrator shall collect a fee of $10 for the issuing and filing thereof.
If a dealer does not submit the evidence of purchase, upon resale of the motor vehicle he shall execute and attach to the certificate of ownership a dealer reassignment certificate. The [director] chief administrator shall issue dealer reassignment certificates in lots upon payment of a fee of $10 for each certificate.
H. Any purchaser of a motor vehicle who fails to comply with the provisions of this section shall pay to the [director] chief administrator a penalty of $25 plus the issuing and filing fee.
I. The failure of any person to comply with the requirements of this section shall not constitute a misdemeanor within the provisions of R.S.39:10-24 [, nor shall such failure] and shall not affect the validity of any instrument creating or reserving a security interest in a motor vehicle, as between the parties to such instrument.
J. The notation of the name and business or residence address of a secured party or his assignee, on the certificate of origin or on the certificate of ownership, as provided in R.S.39:10-8 and R.S.39:10-9, and the presentation to the [director] chief administrator, in accordance with R.S.39:10-11, of the certificate of origin or certificate of ownership [so noted], and the compliance with the requirements of subsections C. and D. of R.S.39:10-11 shall be in lieu of all filing requirements imposed by chapter 9 of Title 12A of the New Jersey Statutes and shall constitute the perfection of a security interest in the motor vehicle, and the rights and remedies of the debtors and the secured parties in respect to such security interest shall, except as otherwise expressly provided in this chapter, be subject to and governed by chapter 9 of Title 12A of the New Jersey Statutes.
(cf: P.L.1994, c.60, s.26)
2. This act shall take effect immediately.
STATEMENT
This bill authorizes the seller of a motor vehicle who is not a licensed dealer to submit evidence of the vehicle transaction.
Current law requires only a vehicle purchaser to submit evidence to the New Jersey Motor Vehicle Commission (MVC) of the sale of the vehicle, within 10 working days of the transaction and to receive a record for the transaction. The bill amends current law to allow a non-dealer seller to submit evidence of the transaction to the MVC in order to receive the record. This bill does not alter the responsibilities of the buyer in relation to submitting evidence of the vehicle purchase or paying the $20 fee to receive the certificate of ownership (commonly known as a title), nor does it revise the $25 penalty for a buyer who fails to comply with the requirements.
There are instances when a vehicle purchaser has not complied with the requirements to notify the MVC pursuant to R.S.39:10-11, and the vehicle record incorrectly reflects the seller as the vehicle owner, rather than the purchaser. In this situation, the seller of the vehicle may be held responsible for infractions associated with the vehicle, such as improper display of plates, which may lead to the vehicle being towed and stored and the assessment of additional fees and penalties. By allowing a seller to notify the MVC of a transaction, the MVC will have updated records, law enforcement will have access to accurate information when issuing a citation, and sellers will not be responsible for vehicles they no longer own.
The bill further allows the MVC to retroactively issue a seller a record of the transaction for the sale of a vehicle on or after July 1, 1994. A seller would need to submit evidence of the vehicle transaction to the MVC, consisting of a notarized affidavit of the transaction, a bill of sale or copy of the completed and endorsed certificate of ownership as signed by the buyer and seller, and proof that the vehicle plates were properly surrendered to the MVC.
