PRINTER'S NO. 2351
No. 1700 Session of 1990
INTRODUCED BY CORMAN, FISHER AND STOUT, JUNE 22, 1990
REFERRED TO TRANSPORTATION, JUNE 22, 1990
AN ACT
1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
2 Statutes, establishing the Motor Vehicle Transaction Recovery
3 Fund; providing for assessments on holders of motor vehicle
4 dealer registration plates and on agents of the department;
5 and providing for penalties.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Title 75 of the Pennsylvania Consolidated
9 Statutes is amended by adding a chapter to read:
10 CHAPTER 23
11 MOTOR VEHICLE TRANSACTION RECOVERY FUND
12 Sec.
13 2301. Definitions.
14 2302. Establishment and maintenance of fund.
15 2303. Disbursements.
16 2304. Assignment of claims.
17 2305. Appeals.
18 2306. Exemptions.
19 2307. Enforcement.
1 § 2301. Definitions.
2 The following words and phrases when used in this chapter
3 shall have the meanings given to them in this section unless the
4 context clearly indicates otherwise:
5 "Fund." The Motor Vehicle Transaction Recovery Fund
6 established in this chapter.
7 "Member." Every holder of motor vehicle dealer registration
8 plates and every person authorized to act as an agent of the
9 department with respect to vehicle titling and registration.
10 § 2302. Establishment and maintenance of fund.
11 (a) Establishment.--There is hereby established in the
12 General Fund a Motor Vehicle Transaction Recovery Fund.
13 (b) Assessments.--
14 (1) Every applicant for motor vehicle dealer
15 registration plates or for the authority to act as an agent
16 for the department with respect to vehicle titling and
17 registration shall pay, in addition to any other license fees
18 and bonds, an assessment of $75 to the fund.
19 (2) No current holder of motor vehicle dealer
20 registration plates or person having the authority to act as
21 an agent of the department may continue to operate without
22 paying the assessment within 120 days of the effective date
23 of this act.
24 (c) Use and maintenance of fund.--The assessments shall be
25 used to establish and maintain the fund and shall be deposited
26 into the State Treasury and credited to the fund. The fund shall
27 be used solely to provide the Department of Transportation and
28 the Department of Revenue with the money necessary to process
29 documents relating to the titling and registration of vehicles
30 as described in this chapter. The fund shall be invested and
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1 interest and dividends shall accrue to the fund.
2 (d) Minimum balance.--Whenever the balance of the fund falls
3 below $500,000, the secretary may assess all members an
4 additional assessment of up to $50 to bring the fund up to at
5 least the $500,000 minimum. Not more than one additional
6 assessment may be made against a member in any 12-month period.
7 § 2303. Disbursements.
8 (a) Authorization.--The secretary, or his designee, may, in
9 his discretion, authorize a disbursement from the fund to cover
10 the amount of any fees and taxes pertaining to an application
11 for titling or registration of a vehicle which a member failed
12 to forward to the department. The disbursement may not exceed
13 the amount paid to the member for the fees and taxes associated
14 with the titling and registration.
15 (b) Proof of loss.--In order to substantiate a disbursement
16 from the fund, an aggrieved party shall forward to the
17 department an application provided by the department. Along with
18 other documentation, the department shall require the aggrieved
19 party to provide the original or acceptable copies of the
20 canceled check or money order paid to the member and the
21 registration or other document issued to the aggrieved party by
22 the member.
23 (c) Procedure.--Upon receipt of an application for
24 disbursement, the department shall notify the member. If the
25 member fails to forward the necessary titling or registration
26 documents, fees and taxes within 15 days, the secretary may
27 suspend the member and, where applicable, direct the Department
28 of State to do so. If payment is not made by the member within
29 15 days and the secretary is satisfied concerning the proof of
30 the claim, he shall direct that the titling and registration
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1 documents be processed with moneys from the fund.
2 § 2304. Assignment of claims.
3 By making application to the fund, an aggrieved party assigns
4 to the Commonwealth any claim he may have for restitution
5 arising out of the failure of the member to forward the titling
6 and registration documents, fees and taxes. The department may
7 coordinate with applicable Commonwealth agencies the filing of a
8 civil complaint against the member for reimbursement to the
9 fund. Nothing contained in this chapter shall limit the
10 authority of the department, the Department of Revenue or any
11 other government agency to take civil, criminal or disciplinary
12 action against any member for any violation of this title or any
13 statute or regulation. Payment by the fund shall not relieve
14 payment by any surety.
15 § 2305. Appeals.
16 Any aggrieved party may appeal the decision of the secretary
17 to the court of common pleas vested with jurisdiction of such
18 appeals by or pursuant to Title 42 (relating to judiciary and
19 judicial procedure).
20 § 2306. Exemptions.
21 No person who acts solely as either a notary or messenger for
22 motor vehicle forms shall be bound by the provisions of this
23 chapter.
24 § 2307. Enforcement.
25 (a) Criminal penalty.--Any member who issues or forwards to
26 the department any documents relative to the titling or
27 registration of a vehicle without having paid the requisite fee
28 to the fund commits a summary offense and shall, upon
29 conviction, be sentenced to pay a fine of $100 for each document
30 submitted.
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1 (b) Administrative penalties.--The department and the
2 Department of State may suspend the license and recall motor
3 vehicle dealer plates and the authority to issue temporary
4 registrations of any member who does not pay the requisite fee
5 to the fund prior to acting as a member. The suspension and
6 recall shall remain in effect until the requisite fee is paid,
7 plus an additional 30 days.
8 Section 2. This act shall take effect in 60 days.
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