Pennsylvania Act 1995-74 — VEHICLE CODE (75 PA.C.S.) - AMEND TRANSFER OWNERSHIP OF VEHICLE

Act text

VEHICLE CODE (75 PA.C.S.) - AMEND TRANSFER OWNERSHIP OF VEHICLE
                  Act of Dec. 20, 1995, P.L. 666, No. 74              Cl. 75
                             Session of 1995
                               No. 1995-74

     SB 476

                                  AN ACT

     Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
        Statutes, further providing for the transfer of ownership of
        a vehicle; and providing for the development of an electronic
        lien program.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Section 1111 of Title 75 of the Pennsylvania
     Consolidated Statutes is amended by adding a subsection to read:
      § 1111.  Transfer of ownership of vehicle.
        * * *
        (a.1)  Exception for dealers.--When a certificate of title
     for a vehicle acquired by a licensed dealer for the purpose of
     resale is encumbered by a lien, delivery of the certificate of
     title by the dealer as a transferor at the time of delivery of
     the vehicle upon resale shall not be required for a vehicle
     being titled in this Commonwealth if, prior to delivery of the
     vehicle, the dealer obtains the applicable powers of attorney to
     properly execute transfer of the title and the dealer requests
     and receives the departmental verification of any lienholders,
     ownership, odometer information, title brands and any other
     information that the department deems necessary to be verified.
     Upon payment of the established fee, the department shall
     provide the dealer or authorized messenger service with
     verification of the required information. The department may
     supply the verified information by either written or electronic
     means. The application and a properly assigned certificate of
     title shall be delivered to the department within the time
     period prescribed by section 1103.1 (relating to application for
     certificate of title). If a dealer sells a vehicle after
     verification of the required information for a certificate of
     title encumbered by a lien, but fails to satisfy the lien or
     deliver an assignment and warranty of title to the dealer's
     transferee within 90 days of the date of purchase, and this
     failure is the result of an act or omission by the dealer, the
     dealer shall accept return of the vehicle from the transferee
     and shall refund the purchase price less actual depreciation of
     the vehicle while it was within the possession of the
     transferee. In refunding the purchase price, the price shall
     include the listed dollar value of any trade-in vehicle as
     stated in the sales transaction document in lieu of returning
     the transferee's trade-in vehicle.
        * * *
        Section 2.  Chapter 11 of Title 75 is amended by adding a
     subchapter to read:
                                CHAPTER 11
               CERTIFICATE OF TITLE AND SECURITY INTERESTS
                                  * * *
                               SUBCHAPTER C
                         ELECTRONIC LIEN PROGRAM
     Sec.
     1151.  Electronic media system for vehicle titles.
     1152.  Development of pilot program.
     1153.  Administration of system.
     1154.  Expansion of pilot program.
     1155.  Certification.
      § 1151.  Electronic media system for vehicle titles.
        (a)  Initial responsibilities of department.--The department
     is authorized to form a task force for the purpose of developing
     a system which will permit the voluntary recording of vehicle
     title information for new, transferred and corrected
     certificates of title, including the perfection and release of
     security interests, through electronic media in a cost-effective
     manner in lieu of the submission and maintenance of paper
     documents otherwise required by this chapter. The members of the
     task force shall be appointed by the secretary and shall include
     representatives from the department, the commercial banking
     industry, sales finance companies, credit unions, savings
     institutions and the vehicle dealership industry.
        (b)  Task force responsibilities.--The task force shall
     research methods whereby the department, lending institutions
     and sales finance companies may exchange and maintain
     information concerning the perfection and release of vehicle
     security interests without submitting or receiving the paper
     title document. Further, the task force shall develop methods
     whereby lending institutions and sales finance companies may
     submit, through a variety of electronic media, updated
     information pertaining to the title record, including the
     addition, assignment or release of vehicle security interests.
      § 1152.  Development of pilot program.
        The task force appointed under section 1151 (relating to
     electronic media system for vehicle titles) shall develop a
     pilot program to implement voluntary electronic transactions in
     lieu of the paper documents required by this chapter. The
     department may limit the number of counties in which the pilot
     program will be in effect and may also limit the number of
     lending institutions and sales finance companies participating
     in the program, but shall encourage lending institutions and
     sales finance companies of various sizes to participate.
      § 1153.  Administration of system.
        To carry out its responsibilities under this subchapter, the
     department is authorized to contract with private industries for
     the purpose of administrating a system which will permit the
     electronic communication of title information and security
     interest notification. A third party operating a secured host
     computer system interfacing with the department's computer
     system and the computer system of a lending institution or other
     sales finance company shall be bonded in the amount specified by
     the department and shall maintain audit trails for a period of
     time specified by the department. The department is authorized
     to pay a reasonable fee to a third party to administer the
     system. Information received under this section by a third party
     shall remain confidential as specified by the department.
      § 1154.  Expansion of pilot program.
        If, after 12 months of operation, the secretary certifies in
     the Pennsylvania Bulletin that the pilot program created under
     section 1152 (relating to development of pilot program) has been
     successful, the department shall promulgate regulations
     governing voluntary electronic media transactions in lieu of
     submission and maintenance of paper documents otherwise required
     by this chapter. Until the regulations are adopted, the
     department may maintain and expand the pilot program provided
     for in section 1152.
      § 1155.  Certification.
        Notwithstanding any other provision of law, a written or
     printed report of an electronic transaction or recording
     permitted under this subchapter, if certified as true and
     correct by the department, shall serve as evidence of any
     signature, acknowledgment or information which was provided to
     or by the department through electronic means, and the
     certification shall be admissible in any legal proceeding as
     evidence of the facts stated therein.
        Section 3.  This act shall take effect as follows:
        (1) The amendment of 75 Pa.C.C. § 1111 shall take effect upon
     publication of a notice to that effect in the Pennsylvania
     Bulletin.
        (2) The remainder of this act shall take effect immediately.

     APPROVED--The 20th day of December, A. D. 1995.

     THOMAS J. RIDGE