Policy Bulletin MVD-2021-04
NOTICE TO SECONDARY METALS RECYCLERS, PARTS DEALERS AND SCRAP METAL PROCESSORS
House Bill 207 (2021) requires secondary metals recyclers, used motor vehicle parts dealers and scrap metal processors (Salvage Dealers) to report certain title cancellation information and National Motor Vehicle Title Information System (NMVTIS) information to the Department of Revenue (Department). The law is effective July 1, 2021, and starting September 1, 2021, Salvage Dealers will be required to cancel all titles through Auto Data Direct, Inc. (ADD). This will require Salvage Dealers to establish an account with ADD.
When will this affect a Salvage Dealer?
This will affect a Salvage Dealer on or after September 1, 2021 in the following situations:
• When the Salvage Dealer must report all vehicles purchased within 48 hours of close of business, the report must be filed electronically through ADD.
• When a Salvage Dealer accepts a vehicle owner’s affidavit regarding a vehicle or trailer at least 12 model years old, the Salvage Dealer must provide the affidavit to the Department electronically through ADD. The Salvage Dealer must still retain the original affidavit for at least two (2) years.
How should Salvage Dealers securely destroy cancelled certificates of title and license plates in their possession?
Salvage Dealers should no longer send certificates of title or license plates for cancellation to the Department. The Salvage Dealer must securely destroy the original certificate of title and cancelled license plates in a commercially reasonable manner and in a commercially reasonable amount of time. The industry best practice is to securely destroy cancelled certificates of title and plates on a regular schedule, at least weekly, and to maintain a log showing such destruction. Separate logs should be kept for destruction of certificates of title and for destruction of license plates.
Regular destruction according to a schedule and a log recording the actual destruction can show reasonable compliance efforts if the Department performs an on-site audit or if a title or license plate not properly destroyed is used in fraud or theft by an unrelated party.
How do I contact Auto Data Direct, Inc. to create an account?
Auto Data Direct, Inc.