Alabama Licensing Officials Conference

January 16, 2019

Motor VehicleLegislative & Regulatory

Review

Motor Vehicle Division• Telephone number: (334) 242-9000• Licensing Offices select option 5• Provide name, county and reason for call• Call will be transferred to a live person in the

appropriate work unit• MVD staff should identify themselves, if not, ask

for their name• email: MVD@revenue.alabama.gov• Report any issues to MVD management

Acts 2018-261 & 2018-474• Allows parent or legal guardian of disabled

minor to obtain disability plates or placards• Effective – June 1, 2018• Authorizes registered nurse practitioner and

nurse midwife to certify disability parking privileges

• Effective – March 28, 2018• Application For Disability Access Parking

Privileges form (MVR 32-6-230) updated (Memo 2018- 004)

Act 2018-190 (SB214)• Vehicle owner opts-in/out to disclose certain personal info to

sponsoring organization at the time of initial registration– Owner name– Owner address– Owner email address, if available

• DOR provides info to sponsoring organization annually, upon request

• Sponsoring organization prohibited from reselling info• Includes: distinctive, collegiate and plates approved by LOC• Opt-in/out disclosure included in registration record, PROS and Pre-

commitment• Opt-in/out language added to POD registration receipt affidavit• Effective: January 1, 2019

Act 2018-190 (SB214 continued)

House Joint Resolution 14• Research and draft recommendations to combat

curbstoning and abandoned vehicle fraud• Recommendations submitted to legislature by February

2019• Proposed legislative changes:

– Master dealer regulatory license– Increase dealer license fee– Vehicle auction license– Require abandoned vehicles to be bonded– Increase title hold time on abandoned vehicles– Expand enforcement provisions

Fleet Registration PortalProposed legislation:• DOR portal to allow registration and renewal of

fleet vehicles• Fleet – 50 or more vehicles less than 12,000 lbs.• DOR will calculate ad valorem tax• DOR will issue registration• Fleet license plate• DOR rule making authority to expand to other

vehicles (i.e. IRP)

MLI Task Force• Eliminate 4 mo. suspension period• Reduce lookback period for 2nd and subsequent

violations to current and previous 2 years• Increase licensing official’s commission on

reinstatement fee from 10% to 15%• Change distribution date to 20th of the mo.• Increase annual amount retained by licensing

official’s office from $10K to $25K• Address inconsistencies with stored/inoperable

vehicles

Retired Law Enforcement Tag• Creates retired law enforcement officer tag• Applies to a retired state, county, municipal, or

federal law enforcement officer including a correctional officer

• Retired law enforcement officer ID card or badge• Additional fee $50 distributed to AL State Lodge

Fraternal Order of Police Inc.• Effective January 1, 2020

Print on Demand• 66 counties & all 4 cities currently on POD• Beginning Jan. 2019, MVD is updating plate

designs/redesigns with a single decal pocket• Continue to issue month sticker

• Printing on POD Material– Use Original Manufacturer Ink– Paper Setting = Label/Vinyl Label– Toner Darkness Setting = 4 - 6– Vendor defaults print job to paper tray with correct

receipt

Print on Demand• Include DOR assigned control number in decal field

on registration receipt and registration record• County system should produce audit report with:

• Control numbers • Time period• Sortable (clerkID, date, etc.)

• Remember vintage vehicle registrations still receive vintage decals and plain paper registration receipts

• Contact Sherry Helms or Jonathan Lawrence with questions

Print on Demand• MLI Reinstatement fees (32-7A-12)• Licensing officials retain 10%

• 50% to county general fund• 50% Special registration/titling

technology fund• Peace officers annuity fund 15%• Remainder to fund MLI program and state

general fund

Administrative Rule Updates

• Admin Rule 810-5-1-.228 (New 1/18/18)• Temporary Tags and Registration• Provides clarification for issuance procedures

• Admin Rule 810-5-8-.09 (Amended 3/23/18)• Identification Documentation Required for Registration• Driver ID only required for initial registrations or vehicle

transfers (Act 2017-242)

• Admin Rule 810-5-1-.201 (Amended 5/24/18)• Fee Exemption Rule• Provides exemptions for all license plate categories

Administrative Rule Updates

• Admin Rule 810-5-1-.206 (Repealed 4/9/18)• Armed Forces Reserve Distinctive License Plates• Exemption language added to Admin Rule 810-5-1-.201

• Admin Rule 810-5-1-.208 (Repealed 3/23/18)• National Guard Distinctive License Plates• Exemption language added to Admin Rule 810-5-1-.201

• Admin Rule 810-5-1-.218 (Repealed 3/23/18)• Disabled Veteran Distinctive License Plates• Exemption language added to Admin Rule 810-5-1-.201

Administrative Rule Updates

• Admin Rule 810-5-1-.225 Disability Access Parking Privileges (Being Amended)

• Act 2018-474• Authorizes a certified registered nurse practitioner and a certified

nurse midwife to provide certification for disability parking privileges on Form MVR 32-6-230

• Act 2018-261• Authorizes parents, stepparents, or legal guardians of a person

with disabilities to apply for disability access credentials

• Rule Hearing scheduled for February 12, 2019

Titles Updates

Alabama Title System

Alabama Title System There are two different application layouts.• Wizard style; guided step-by-step through the application.• Single page style; similar to ETAPS.• You can select your preference under My Settings.

Alabama Title System

Update AddressClick “Undeliverable Address” under “Actions” on the homepage. This will allow you to update the address if the title was returned as undeliverable by the postoffice.

Update AddressClick “Title Information” on the Motor Vehicle homepage.

Update Address?

RejectedApplications• Email for rejected applications• Can include multiple email address• Click “Rejected Applications” under “Actions” to view all rejected

applications.

RejectedApplicationsClick “Search Applications” to view all rejected applications.

RejectedApplications

RejectedApplications

Submit Applications

Rebuilt Inspections• Application packages are submitted in the same

manner as all other ALTS applications.

• Upon receipt, review, and approval of your application package, a Motor Vehicle Inspector should contact you for inspection within five (5) to seven (7) business days.

• For questions regarding my rebuilt inspection.• Phone: (334) 242-9000, Option 3• https://www.support.revenue.alabama.gov/hc/en-us

• Click on “Submit a Request”

MH Cancellation ProceduresCancellation procedures for manufactured homes permanently affixed to real property.

Three primary documents:– MSO– AL Title– MH Bond

Under the tab “Start A New Manufactured Home Application” –choose “Cancellation Application”

MH Cancellation Procedures

On the “Pre-qualifier” screen – select “No”

MH Cancellation Procedures

Select complete the “Notice of Cancellation”

MH Cancellation Procedures

Complete the “Notice of Cancellation”. You may add up to 4 sides.

MH Cancellation Procedures

Print the Notice of Cancellation – MVT 5-39 (Valid 90 days)

MH Cancellation Procedures

Go back to “Start A New Manufactured Home Application” –choose “Cancellation Application”

MH Cancellation Procedures

On the “Pre-qualifier” screen – select “Yes”. Enter the Information and Click Submit.

MH Cancellation Procedures

Complete the Application

MH Cancellation Procedures

Title Surety Bond• A Title Surety Bond is guarantee of performance of a

specific obligation or contract.• A bond is issued by an insurance company and

guarantees damages in the event that another individual claims ownership of the vehicle.

• A bond is similar to your personal auto insurance in that it is offering coverage in the event that a claim is made, except in the case of a bond, the coverage is for the certificate of title.

Title Surety BondCommon Examples of when a bond is required:• The vehicle was never titled.• The owner never received a title.• The previous owner did not title.• An error occurred in the title assignment.

Title Surety Bond• The Surety Bond can be obtained by any company that

issues bonds and is licensed to issue a surety bond in the state of Alabama.

• Primarily, the cost of the bond depends on the amount of the bond coverage (face value).

• Other factors, including the applicant’s credit score.

Title Surety Bond• Standard bond amounts for type and age of vehicle.

• Document to substantiate ownership. (bill of sale, registration or outstanding title). Required with the application (MVT 10-1A).

• State of Alabama Bond Form, (MVT 10-1).

• Vehicles branded as Salvage, Parts only, or Junk are not eligible for title surety bond.

• Bond Term of three (3) years.

An Overview of the Bond Process• Apply, on the surety bond portal, to receive a bond

application, Form (MVT 10-1A).

• Submit the bond application and proof of ownership.

• When application is approved, a bond form (MVT 10-1) is sent to the applicant, via email.

• Take the bond form (signed/sealed by the insurance company) to a Designated Agent to apply for Certificate of Title with the bond as the primary supporting document.

Surety Bond Portalhttp://revenue.alabama.gov/motorvehicle/forms

Surety Bond Portal

Surety Bond Application

Title Application

Bond Checklist • Ensure that bond is completed on a state bond form (MVT 10-1).

• Ensure that the (MVT 10-1) is complete: The bond number is printed at the top of the bond. The name of the Surety appears The bond execution date is on the bond The insurance company agent’s name and signature appear The Principal’s (owner’s) name and signature appear.

• Ensure that the Insurance Company provides a Power ofAttorney with the bond. This is mandatory.

• Ensure that the bond effective date is not older than 90 days.

• Ensure that the bond effective date and the date of the Power ofAttorney agree.

Abandoned Application

Abandoned Application

Alabama Title System• Owner name added to EFT report• No new applications in ETAPS (December 2018)

• Alert designated agents when applications have not been submitted or documents have not been received.

• Allow designated agents to put their own applications on hold for 30 days.

• Allow resub letters to be reprinted.

Alabama Title System• Adding a VIN error message to Pre-Qualifier• Adding an edit to allow VINs to be fixed without

voiding & retyping applications

Future Enhancements• Document Upload Feature• Public Interface (Replacements, Rebuilt, etc.)• Electronic Lien and Title (ELT)• NMVTIS Integration

ALTS• Please Report Issues• Continue to provide Recommendations and

Suggestions

Search Active/Revoked Dealerswww.mvtrip.alabama.gov

Click

Search Active/Revoked Dealers

Dealer LicenseYear Status Count

2018 Approved 47622018 Rejected 169

2018 Revoked 247

2017 Approved 45292017 Rejected 682017 Revoked 56

Questions

Registration Updates

Registration Updates

• Act 2018-190 (Opt-In/Opt-Out)• PROS• Print on Demand• New/Redesigned License Plates• Tag Pre-Commitment• Printable License Plate Pages• MLI• IRP• FHVUT• Future Enhancements

Act 2018-190 (Opt-In/Opt-Out)

• Began collecting registrant authorizations January 2019• Records indicate only a select few counties are uploading the

data to the state system• Please verify with your system vendors

• What plates are included?• Requested a Legal Opinion• Updated Registration File Format (ADOR Website)

Act 2018-190 (Opt-In/Opt-Out)

• Updated MVTRIP• Tag Pre-commitment• PROS• State Registration System

• Annual reports for sponsoring organizations, colleges, and universities• Owner Name, Address, & Email Address

Tag Pre-Commitment - Opt-In/Opt-Out

PROS – Opt-In/Opt-Out

• Under Reserve Plate

• Question must be answered for each reservation

State Registration System - Opt-In/Opt-Out

• Under Registrant Information – Data Share• True = Yes• False = No

PROS• Undeliverable License Plates

• Please verify mailing addresses when ordering license plates• Before reorder – check the PROS reservation for blue triangle• Returned plates are generally sent to licensing official’s office

for customer pickup

• Temporary Tags• Receiving Inventory (AIMS)

• If you get an error message and can’t issue temps - check AIMS for outstanding orders to receive

• Temporary Tag Report (Discovery)• Temp tags will soon require insurance information and check

for salvage, stolen, etc. prior to issuance• New Warning Message

PROS - Temporary Tags

• New Warning Message

Print on Demand

• 2020 POD Receipts – Three (3) bulk shipments• 1st Delivery – December 2018• 2nd Delivery – February 2019• 3rd Delivery – May 2019

• All shipments must be received in AIMS to get your control numbers• 2 digit county code and 6 digit sequential number

• Additional orders can be placed in AIMS

New/Redesigned License Plates

• Redesigning plates beginning January 1, 2019• Changing from 2 decal pockets to 1• Plates with 2 decal pockets are still valid

• Can issue month sticker

New/Redesigned License Plates• January 2018 (Memos 2017-020, 2017-021 & 2017-022)

– Military (Disabled Veteran, Retired Military, etc.)– Alabama Home Builders

• February 2018 (Memo 2018-001)– Huntsville Hospital– Alpha Kappa Alpha Sorority

• March 2018 (Memo 2018-002)– Athens State University

• August 2018 (Memo 2018-007)– Habitat for Humanity– Autism Acceptance

New/Redesigned License Plates• October 2018 (Memo 2018-008)

– Truck and commercial vehicles– National Guard

• November 2018 (Memo 2018-010)– University of South Alabama

• January 2019 (Memo 2018-12)– University of Alabama at Birmingham– Auburn University at Montgomery

• Reminder – ACI pick-up old tags from your offices– Notify MVD of request for pick-up

Tag Pre-commitment

• Pre-commitment period ended 12/31/2018• One successful distinctive license plate category• Reapplying for Generic Design

Commitment To PurchaseJune 1, 2018 – May 31, 2019

• Legislative Oversight Committee approved six (6) new license plate applications

– Cherokee Tribe of Northeast Alabama (Q1)• Sponsor: Cherokee Tribe of Northeast Alabama

– Equine Tag (Q1)• Sponsor: Alabama Horse Tag Association

– Hunt Alabama (Q1)• Sponsor: Hunting Heritage Foundation

– Thank A Lineman (Q2)• Sponsor: Central Alabama Community Foundation (Energy Institute of Alabama Foundation)

– United Ability (Q1)• Sponsor: United Cerebral Palsy of Greater B’ham/United Ability Inc.

– World Language Education (Q1)• Sponsor: Alabama World Languages Education Foundation

Commitment To Purchase (Cont’d)June 1, 2018 – May 31, 2019

Cherokee Tribe Equine Tag Hunt Alabama

Thank A Lineman United Ability World Language Education

Printable License Plate Pages

Printable License Plate Pages

MLI• Reinstatement Fees Collected

– Fiscal Year 2018 - $8.4 million– Fiscal Year 2017 - $7.6 million– Fiscal Year 2016 - $3.4 million– Fiscal Year 2015 - $2.2 million– Fiscal Year 2014 - $1.1 million

• Alabama Uninsured Motorist Rate– Reported by the Insurance Research Council (IRC)– 2017 – 18.4% (based on 2015 data)– 2014 – 22% (based on 2011 data) – Next Rate Update – Year 2020

MLI

• Issue with mailing Notices of Suspension• Some registrants did not receive notices in a timely manner• Some registrants received duplicate notices

• All potentially affected records were changed to deferred suspension (DS) status so that registrants receive proper notice before registration was suspended

• Notice of Suspension mailings resumed September 12th• DS status will change to S1 or S2 once Notice of Suspension is

mailed

MLI

• 2nd OIVS verification check reduced from 30 to 21 days• Effective December 2018

• Updated MLI Call Scripts• “No-Exempt Responses”

• ADOR agents are advising taxpayers to contact their local licensing official to determine what proof of non-use is needed.

• Enhancing the “Search” feature• Partial searches

International Registration Plan (IRP)Updates

• Issuance of 2022 IRP plates – Began January 1, 2017

• 2019 Renewal Month for New Accounts – January (Memo 2018-11)

• Collecting Ad Valorem Taxes (Memo 2014-19)

• Charter Buses/Motorcoaches operated interstate – January 1, 2016 (Memo 2015-20)

Federal Heavy Vehicle Use Tax (FHVUT)Form 2290

• Title 26, U.S. Code Sect. and Code of Alabama Section 32-8-58

• Law requires current proof of FHVUT payment (Form 2290 filing) prior to issuing registration (July 1, 2018 to June 30, 2019)• Required for trucks and truck tractors with a declared GVW (combined) 55,000 lb. or

more• Vehicles registered in July, August, or September can provide FHVUT payment proof

for preceding tax period (July 1, 2017 – June 30, 2018)• Proof not required for vehicles registered within 60 days of purchase

• Memo 2015-29 – document to provide to these registrants detailing their requirements for filing

• Licensing Officials audited by ADOR• Failure to comply may result in the reduction of Federal highway funds

• Federal Code Title 23, Part 669• 2018 audit completed

Federal Heavy Vehicle Use Tax (FHVUT)Form 2290 (continued)

• Federal Government Shutdown• Mainly affects delinquent registrations when the Form 2290 was not timely

filed with the IRS• Copy of the 2290 form with a copy of the cancelled check

• Rule 810-5-1-.233 (Proof of Payment of Federal Heavy Vehicle Use Tax)

Federal Heavy Vehicle Use Tax (FHVUT)Form 2290 (continued)

• Electronic Verification of Form 2290

• Working to establish Vendor Application Programming Interface (API)

• Gathering Memorandum of Agreements from 2290 Service Providers

• Current in Testing Phase

• More information to come

Future Enhancements

• Electronic Temp Tag Process in ALTS• Does not affect Licensing Officials• Currently in testing phase

Future Enhancements

• Records Request Portal• Electronic request and payment process

Future Enhancements• Monthly Reports sent to Comptroller and ALDOT• Registering RVs over 42K

• Adding plate type categories (R7 – R9) • Replaces “X” plate registrations for registering RVs above 42K lbs.

Questions