To establish electronic notification systems for salvage motor vehicle dealers and secondary metals recyclers on salvage and derelict motor vehicles; establish fees for such system.

DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES
Division of Motor Vehicles

RULE NO.: RULE TITLE:
15C-20.001: Derelict Motor Vehicle Electronic Application and Notification
15C-20.002: Secondary Metals Recycler and Salvage Motor Vehicle Dealer Participation Requirements
15C-20.003: Electronic Notification System Vendors; Certification; Requirements
15C-20.004: Electronic System Procedure Requirements
15C-20.005: Derelict Motor Vehicles
15C-20.006: Derelict Motor Vehicle Certificates
15C-20.007: Electronic Application for Derelict Motor Vehicle Certificates
15C-20.008: Enforcement/Compliance

PURPOSE AND EFFECT: To establish electronic notification systems for salvage motor vehicle dealers and secondary metals recyclers on salvage and derelict motor vehicles; establish fees for such system.

SUMMARY: These rules will allow the Agency to establish and provide an electronic notification system to secondary metals recyclers and salvage motor vehicle dealers, for “end of life” vehicles (vehicles that are to be destroyed or dismantled).

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has been prepared by the agency.

The SERC is available by contacting Selma Sauls at the address, telephone number or email listed below. The following is a summary of the SERC: No adverse impact on economic growth, private sector job creating or employment, or private sector investment. No adverse impact on business competitiveness or innovation. No increase in regulatory costs. No increased spending of the Agency anticipated. No cost to other states, local governmental entities, small counties or small cities. No impact on state or local revenues.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein:

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 319.30(8)(a), (h) FS.
LAW IMPLEMENTED: 319.30 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: May 30, 2012, 2:00 p.m.

PLACE: 2900 Apalachee Parkway, Room #A427, Tallahassee, Florida

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Selma Sauls, Government Operations Consultant I, 2900 Apalachee Parkway, Tallahassee Florida 32399, [e-mail], [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULES IS: Selma Sauls, Government Operations Consultant I, 2900 Apalachee Parkway, Tallahassee Florida 32399, [e-mail], [phone]

 

THE FULL TEXT OF THE PROPOSED RULES IS:

15C-20.001 Secondary Metals Recyclers or Salvage Motor Vehicle Dealers.

(1) Purpose and Scope. This rule prescribes and defines the procedures for secondary metals recyclers and salvage motor vehicle dealers to return certificates of title and salvage certificates of title to the Department for motor vehicles or mobile homes they receive and dismantle, destroy or change in such manner that it is not the motor vehicle or mobile home described in the certificate of title. This rule also prescribes and defines application procedures for derelict motor vehicle certificates. This includes procedures for secondary metals recyclers and salvage motor vehicle dealers to electronically submit information and apply for the derelict motor vehicle certificate.

(2) Definitions. The words or terms as used in this rule shall have the statutory meanings set forth in Section 319.30, F.S. and as follows:

(a) “Department” means the Department of Highway Safety and Motor Vehicles.

(b) “Electronic Notification System” means the system owned by the Department which allows authorized secondary metals recyclers and salvage motor vehicle dealers to notify the Department of receipt of a vehicle which has been or is to be dismantled or destroyed and allows a secondary metals recycler or salvage motor vehicle dealer to apply for a derelict motor vehicle certificate.

(c) “Electronic Notification Vendor” means a Department-approved entity who hosts an approved system for interface between secondary metals recyclers or salvage motor vehicle dealers and the Department.

(d) “National Motor Vehicle Titling Information System” (NMVTIS) means the nationwide electronic system that provides information about a vehicle’s condition and history to include a vehicle’s title, most recent odometer reading, brand history and historical theft data.

(3) Secondary metals recyclers and salvage motor vehicle dealers shall submit all certificates of title and salvage certificates of title within 30 days of dismantling, destroying or changing the motor vehicle or motor home.

(4) Secondary metals recyclers and salvage motor vehicle dealers may use the Department’s Electronic Notification System to submit title cancellation information in lieu of sending the titles to the Department. Electronic notification shall be made through a vendor approved by the Department and as prescribed in these rules.

(5) In the case of electronic titles (e-titles), secondary metals recyclers and salvage motor vehicle dealers may receive vehicles with e-titles. The secondary metals recyclers and salvage motor vehicle dealers will use the Electronic Notification System to verify the owner and that there are no liens on the vehicle. Notification to the Department on vehicles with e-titles must be done via the Electronic Notification System.

Rulemaking Authority 319.30(8)(a), (h) FS. Law Implemented 319.30(8)(a) FS. History–New_________.

 

15C-20.002 Secondary Metals Recycler and Salvage Motor Vehicle Dealer Participation Requirements.

(1) Secondary metals recyclers and salvage motor vehicle dealers requesting authorization to use the Electronic Notification System must meet the following requirements:

(a) Have a valid registration as a secondary metals recycler with the Department of Revenue or a valid license with the Department of Highway Safety and Motor Vehicles as a salvage motor vehicle dealer.

(b) Enter into a contract with a Department-approved electronic notification vendor.

(c) Ensure only those users authorized by the vendor shall have access to the system.

(d) Ensure they have a method for secure storage of required documentation to meet retention timeframes.

(e) Submit notification of intent to participate to the Department which includes:

1. License or registration number

2. Licensed or registered business name

3. Doing Business As (DBA) business name(s)

4. Valid physical address for the business

5. Valid mailing address for the business

6. Valid email and telephone number for the business

7. Valid EIN number if applicable

(2) Dealers with a “VF”, “VI”, “RU” or “RV” license which meet the requirements set forth in this rule may also request authorization to use the Electronic Notification System.

(3) The Department will notify the secondary metals recycler or salvage motor vehicle dealer of approval to use the Electronic Notification System.

(4) The secondary metals recycler and salvage motor vehicle dealers must keep their valid contact information up to date with the Department. Changes to contact information must be submitted within 10 days of the change.

Rulemaking Authority 319.30(8)(a), (h) FS. Law Implemented 319.30(8)(a) FS. History–New________.

 

15C-20.003 Electronic Notification System Vendors; Certification; Requirements.

(1) The Department shall certify electronic notification vendors who meet the minimum requirements set forth in this rule.

(2) Entities requesting approval to become an Electronic Notification System vendor must meet the following requirements prior to being approved by the Department:

(a) Enter into a contract with the Department.

(b) Demonstrate to the Department that the vendor’s system at a minimum can successfully process title cancellations/junk titles.

(c) Provide a performance bond or irrevocable letter of credit for $50,000 to the Department.

(d) Attest that they have a method for secure storage of required documentation to meet retention schedules.

(3) The electronic notification vendor shall:

(a) Provide all support, assistance and training to any secondary metals recycler or salvage motor vehicle dealer using their system.

(b) Follow the installation procedures as set forth by the Department.

(c) Maintain all records of electronic transfers for a period of three years.

(d) Provide a verification of cancellation receipt to the secondary metals recycler or salvage motor vehicle dealer for each title record cancelled electronically.

(e) Maintain all contractual agreements for a period of three fiscal years after completion or termination of the contract.

(f) Make all records available for inspection or audit at any time during normal business hours by the Department or its agent.

(g) Make records available to any Law Enforcement Officer conducting an investigation who submits an official written request.

(h) Provide at its own expense all equipment necessary to provide an interface between the electronic notification vendor and the Department’s server.

(i) Ensure that only authorized users have access to the Electronic Notification System with access limited to business purposes only.

(j) Ensure that all user accounts are unique and can be traced back to individuals and transactions processed.

(k) Electronic Notification System users whose access has been revoked, suspended or denied by the Department or an approved vendor for any reason noted in Rule 15C-20.008, F.A.C., will be prevented from and shall not access the system until all issues have been resolved to the satisfaction of the Department.

(4) Electronic notification vendors may charge a fee to secondary metals recyclers or salvage motor vehicle dealers for use of the system.

Rulemaking Authority 319.30(8)(a), (h) FS. Law Implemented 319.30(8)(a) FS. History–New________.

 

15C-20.004 Electronic System Procedure Requirements.

(1) The secondary metals recycler or salvage motor vehicle dealer shall submit the following information to the Department through the electronic notification vendor:

(a) Name, address, and contact information of the reporting secondary metals recycler or salvage motor vehicle dealer;

(b) Vehicle Identification Number (VIN);

(c) Florida Title Number;

(d) Previous State and Title Number (if no Florida title);

(e) Date of receipt of the motor vehicle or mobile home;

(f) Name of the individual and entity from whom the motor vehicle or mobile home was obtained.

(2) The vendor shall forward the information, including the secondary metals recycler registration or motor vehicle dealer license information, to the Department.

(3) The Department’s database shall verify the record as a valid title which can be dismantled, destroyed or changed. If the Department’s database indicates the vehicle has been stolen, the title is not valid or the Florida title information provided does not reflect a current Florida title, notification will be provided back to the vendor. If the motor vehicle or mobile home has not been dismantled or destroyed it may not be dismantled or destroyed until this is resolved.

(4) After the Department’s database verifies the record as a valid Florida title, the system will check NMVTIS. If NMVTIS indicates that the vehicle is stolen or otherwise should not be dismantled, destroyed or changed, a stop shall be placed on the record and notification provided back to the vendor of the problem.

(5) If both the Department’s database and NMVTIS verify the title as valid for dismantling, destroying or changing, the Department shall cancel the title. Confirmation of the title cancellation shall be sent to the vendor.

(6) The secondary metals recycler or salvage motor vehicle dealer must keep the original certificate of title or salvage certificate of title for a period of 3 years after the date of purchase of the motor vehicle or motor home. These records must be maintained in chronological order. After 3 years, the secondary metals recycler or salvage motor vehicle dealer must destroy the titles by shredding or otherwise securely disposing of the paper records so that no further use of the paper can be made. Secondary metals recyclers and salvage motor vehicle dealers may retain copies of the destroyed titles. The secondary metal recycler or salvage motor vehicle dealer shall maintain a log or record of the destruction of each original certificate of title which shall include the vehicle information, the name of company representative who destroyed the certificate of title and the date of destruction.

Rulemaking Authority 319.30(8)(a), (h) FS. Law Implemented 319.30(8)(a) FS. History–New________.

 

15C- 20.005 Derelict Motor Vehicles.

(1) If a secondary metals recycler or salvage motor vehicle dealer obtains a derelict motor vehicle for dismantling or destruction and the certificate of title, salvage certificate of title, or certificate of destruction is not available, the secondary metals recycler or salvage motor vehicle dealer must, within 24 hours of receiving the derelict motor vehicle, apply for a derelict motor vehicle certificate with a tax collector’s office, license plate agency or via the Department’s Electronic Notification System.

(2) For purposes of application and securing derelict motor vehicles, weekends are defined as between 5:00 PM Friday and 8:00 AM Monday. Holidays begin at 5:00 PM the day before the holiday and end at 8:00 a.m. the day following the holiday. The 10 model years for the derelict motor vehicle begins with the model year of the vehicle as year one.

Rulemaking Authority 319.30(8)(a), (h) FS. Law Implemented 319.30(8)(a) FS. History–New________.

 

15C-20.006 Derelict Motor Vehicle Certificates.

(1) If applying for a derelict motor vehicle certificate at a tax collector’s office or license plate agency, application must be made on Form HSMV 82137 S (Rev 04/12), incorporated herein by reference. The secondary metals recycler or salvage motor vehicle dealer must apply within 24 hours of receiving the derelict motor vehicle. If application is made at a tax collector’s office or license plate agency, the 24 hour notice excludes weekends and holidays. The derelict motor vehicle certificate application must be completed by the seller or owner, transporter and purchaser prior to the purchaser taking possession of the derelict motor vehicle.

(2) The derelict motor vehicle certificate application must be accompanied by:

(a) A legible copy of the seller’s or owners valid Florida driver license or Florida identification card, or a valid driver license or identification card issued by another state.

(b) If the seller is not the owner of record of the vehicle being sold, the secondary metals recycler or salvage motor vehicle dealer shall, at the time of sale, ensure that a smudge-free right thumbprint, or other digit if the seller has no right thumb, of the seller is imprinted upon the derelict motor vehicle certificate application.

(3) Secondary metals recyclers and salvage motor vehicle dealers must pay a fee to the Department of $3 per derelict motor vehicle.

(4) The Department shall approve and issue a derelict motor vehicle certificate if the derelict motor vehicle is free of any stops or brands that would restrict dismantling, destroying or changing of the vehicle.

(5) If there are no active liens or a lien of 3 years or more on the derelict motor vehicle, the secondary metals recycler or salvage motor vehicle dealer must secure the vehicle for 3 full business days from the issuance date of the derelict motor vehicle certificate. The destruction date shall be included on the derelict motor vehicle certificate.

(6) If there is an active lien of less than 3 years on the derelict motor vehicle, the secondary metals recycler or salvage motor vehicle dealer must secure the derelict motor vehicle for 10 calendar days from the issuance date of the derelict motor vehicle certificate. If an out of state title with an active lien of less than 3 years is on the derelict motor vehicle, the secondary metals recycler or salvage motor vehicle dealer must secure the derelict motor vehicle for 30 calendar days from the date of the Department lienholder notification.

(a) The Department shall issue a derelict motor vehicle certificate without an authorized destruction date.

(b) Upon issuance of the derelict motor vehicle certificate, the Department shall notify the lienholder that the derelict motor vehicle certificate has been issued and the Department’s intent to remove the lien from the record.

(c) The lienholder shall have 10 calendar days to protest removal of the lien.

1. If there is no written statement protesting removal of the lien received by the Department within the 10 calendar day period described above, the Department may remove the lien and update the title record with an authorized destruction date.

2. If the lienholder files a written statement to the Department that the lien is still outstanding within the 10 calendar day period described above, the Department will not remove the lien and shall place an administrative hold on the record for 30 calendar days from the date of the lienholder response notification.

a. During the 30 calendar day period:

(I) The lienholder must satisfy the lien or:

(A) Contact the secondary metals recycler or salvage motor vehicle dealer and/or owner to resolve the issue;

(B) Obtain the derelict motor vehicle along with a statement from the secondary metals recycler or salvage motor vehicle dealer stating the possession change and that they have no interest in the derelict motor vehicle;

(C) Apply for the title to the derelict motor vehicle or a repossession certificate with the local tax collector’s office. The tax collector’s office shall scan and send the paperwork to the Department as backup documentation for the cancellation of the derelict motor vehicle title action. The 30 day administrative stop shall be removed by the Department to allow the tax collector’s office to process the certificate of repossession once the cancellation is completed.

b. If after this 30 calendar day period there is no transfer of title or issuance of a repossession certificate, the secondary metals recycler or salvage motor vehicle dealer shall be authorized to destroy the vehicle.

c. The secondary metals recycler or salvage motor vehicle dealer must secure the derelict motor vehicle until the Department issues an authorized destruction date.

d. The secondary metals recycler or salvage motor vehicle dealer must print the Department’s issuance of a destruction date and store this along with the derelict motor vehicle certificate before destroying or dismantling the derelict motor vehicle.

(7) The secondary metals recycler or salvage motor vehicle dealer shall not dismantle or destroy a derelict motor vehicle without an authorized destruction date.

Rulemaking Authority 319.30(8)(a), (h) FS. Law Implemented 319.30(8)(a) FS. History–New________.

 

15C-20.007 Electronic Application for Derelict Motor Vehicle Certificates.

(1) A secondary metals recycler or salvage motor vehicle dealer may apply electronically for a derelict motor vehicle certificate.

(2) Secondary metals recyclers and salvage motor vehicle dealers must first enter into a contract with a Department approved electronic notification vendor as set forth in Rule 15C-20.003, F.A.C., prior to participating in the electronic application process.

(3) The secondary metals recycler or salvage motor vehicle dealer must complete Form HSMV 82137 S (Rev. 04/12) obtaining the signatures of the seller or owner, transporter and purchaser and meeting all other derelict motor vehicle certificate application criteria. The secondary metals recycler or salvage motor vehicle dealer shall then enter the information required via the vendor’s Electronic Notification System.

(4) The electronic application for a derelict motor vehicle certificate must be made within 24 hours of receiving the derelict motor vehicle.

(5) Electronic notification vendors must ensure the following is included in the electronic application process:

(a) The name of the owner/seller disposing of the derelict motor vehicle.

(b) The address of the owner/seller disposing of the derelict motor vehicle.

(c) The Personal ID number of the owner/seller disposing of the derelict motor vehicle.

1. This shall be a Florida driver license or Florida identification card; or

2. Out of state driver license or out of state identification card listing the state name.

(d) Purchase Price.

(e) The Make, Year, Body and Color of the derelict motor vehicle.

(f) The VIN and title number, with the state name if not Florida, of the derelict motor vehicle received.

(g) The date, time, and location of pickup of the derelict motor vehicle by transporter.

(h) Name and address of transporter business transporting the derelict motor vehicle.

(i) Name and Florida driver license number of driver transporting the derelict motor vehicle

(j) Registered or licensed business name of the secondary metals recycler or salvage motor vehicle dealer acquiring the derelict motor vehicle

(k) Valid physical and mailing address of the secondary metals recycler or salvage motor vehicle dealer acquiring the derelict motor vehicle.

(l) Valid email address and telephone number for the secondary metals recycler or salvage motor vehicle dealer acquiring the derelict motor vehicle.

(m) License or registration number of the secondary metals recycler or salvage motor vehicle dealer acquiring the derelict motor vehicle.

(n) Date and time of the acquisition of the derelict motor vehicle by the secondary metals recycler or salvage motor vehicle dealer.

(6) Secondary metals recycler and salvage motor vehicle dealers must pay a fee to the department of $3 per derelict motor vehicle for electronic notification. Department-approved vendors are authorized to charge additional fees to administer the Electronic Notification System.

(7) The Department shall approve and issue an electronic derelict motor vehicle certificate if the vehicle is free of any stops or brands that would not allow the derelict motor vehicle to be dismantled, destroyed or changed.

(8) If there are no active liens or a lien of 3 years or more on the derelict motor vehicle, the secondary metals recycler or salvage motor vehicle dealer must secure the vehicle for 3 full business days from the issuance date of the derelict motor vehicle certificate. The destruction date shall be included on the derelict motor vehicle certificate.

(9) If there is an active lien of less than 3 years on the derelict motor vehicle, the secondary metals recycler or salvage motor vehicle dealer must secure the derelict motor vehicle for 10 calendar days from the issuance date of the derelict motor vehicle certificate. If an out of state title with an active lien of less than 3 years is on the derelict motor vehicle, the secondary metals recycler or salvage motor vehicle dealer must secure the derelict motor vehicle for 30 calendar days from the date of the Department lienholder notification.

(a) The Department shall electronically issue the derelict motor vehicle certificate and notify the secondary metals recycler or salvage motor vehicle dealer that there is a lien of less than 3 years along with information on the lienholder. There will be no authorized destruction date on the certificate.

(b) The Department shall notify the lienholder that the derelict motor vehicle certificate has been issued and the Department’s intent to remove the lien from the record.

(c) The lienholder shall have 10 calendar days to protest removal of the lien.

1. If there is no written statement protesting removal of the lien received by the Department within the 10 calendar day period, the Department may remove the lien and update the title record with an authorized destruction date. Electronic notification and an updated derelict motor vehicle certificate with an authorized destruction date will be sent to the secondary metals recycler or salvage motor vehicle dealer.

2. If the lienholder files a written statement to the Department that the lien is still outstanding within the 10 calendar day period, the Department will not remove the lien and shall place an administrative hold on the record for 30 calendar days. Electronic notification shall be sent to the secondary metals recycler or salvage motor vehicle dealer holding the derelict motor vehicle certificate.

a. During the 30 calendar day period:

(I) The lienholder must satisfy the lien or:

(A) Contact the secondary metals recycler or salvage motor vehicle dealer and/or owner to resolve the issue;

(B) Obtain the derelict motor vehicle along with a statement from the secondary metals recycler or salvage motor vehicle dealer stating the possession change and that they have no interest in the derelict motor vehicle;

(C) Apply for the title to the derelict motor vehicle or a repossession certificate with the local tax collector’s office. The tax collector’s office shall scan and send the paperwork to the Department as backup documentation for the cancellation of the derelict motor vehicle title action. The 30 day administrative stop shall be removed by the Department to allow the tax collector’s office to process the certificate of repossession once the cancellation is completed.

b. If after this 30 calendar day period there is no transfer of title or issuance of a repossession certificate, the secondary metals recycler or salvage motor vehicle dealer shall be authorized to destroy the vehicle.

c. The secondary metals recycler or salvage motor vehicle dealer must secure the derelict motor vehicle until the Department issues a derelict motor vehicle certificate with an authorized destruction date.

d. The secondary metals recycler or salvage motor vehicle dealer must print and retain the Department’s derelict motor vehicle certificate with an authorized destruction date before destroying or dismantling the derelict motor vehicle.

e. The secondary metals recyclers and salvage motor vehicle dealers who use the Electronic Notification System shall not dismantle or destroy a derelict motor vehicle without a derelict motor vehicle certificate with an authorized destruction date.

Rulemaking Authority 319.30(8)(a), (h) FS. Law Implemented 319.30(8)(a) FS. History–New________.

 

15C-20.008 Enforcement/Compliance.

(1) The Department shall enforce compliance with the requirements of the Electronic Notification System. The following are prohibited and may result in the termination of certification as an electronic notification vendor:

(a) Providing access to the Electronic Notification System to a client or person not authorized by the Department.

(b) Willful misrepresentation of electronic notification policies, procedures, contractual terms or other titling procedures.

(c) Using Department information for reasons other than authorized electronic notification services.

(d) Failure to correct errors as required by the Department.

(2) The Department shall enforce compliance with the requirements of the Electronic Notification System with regard to secondary metals recyclers and salvage motor vehicles dealers using the Electronic Notification System. The Department will revoke a secondary metals recycler or salvage motor vehicle dealer’s ability to use the system for any violation of these rules or for any action that jeopardizes the integrity of the system. This rule shall not prevent the Department from imposing any additional sanctions or fines as allowed by other applicable laws or rules including, but not limited to Section 320.27, F.S. Additionally, the following are prohibited:

(a) Failure to comply with Department procedures and rules.

(b) Unauthorized access of data by users.

(c) Failure to remain in good standing with the State

(d) Failure to correct errors or clear pending transactions as required by the Department.

(e) Entering any false information into the electronic notification service.

(f) Applying for a derelict motor vehicle certificate for any derelict motor vehicle not authorized by statute for such certificate.

(g) Any violation of Section 319.30 or 319.33, F.S.

Rulemaking Authority 319.30(8)(a), (h) FS. Law Implemented 319.30(8)(a) FS. History–New________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Julie Baker, Bureau Chief, Department of Highway Safety and Motor Vehicles

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Governor and Cabinet

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: April 24, 2012

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: November 10, 2011