HB 1025 Summary

• Makes it a felony to knowingly falsify information on affidavit forms required when cancelling certificates of title for scrap motor vehicles, punishable by 1-5 years imprisonment or $500-$5,000 fine.

• Requires licensed used motor vehicle dealers and scrap metal processors to obtain Department of Revenue notification that no liens exist before dismantling or destroying a vehicle.

• Establishes 3-business-day hold period if no liens exist and 10-day hold period if active liens are found, during which the Department notifies lienholders and allows them to protest lien removal.

• Makes it a felony to knowingly destroy or dismantle a motor vehicle with an active lien in violation of these provisions.

• Requires dealers and processors to maintain records for 2 years including photocopied copies of seller identification, and to submit affidavits to the Department within 3 business days of transaction completion.