HB 1589 Summary

• Requires lienholders with a federal Employer Identification Number (EIN) to electronically transmit lien satisfaction and release to the Department of Revenue within 14 days of lien satisfaction, with civil penalties up to $250 per violation plus liability for attorney's fees and costs.

• Establishes that liens on motor vehicles older than 8 years automatically satisfy unless annually recertified by the lienholder using department-required format and procedures.

• Mandates used motor vehicle parts dealers and scrap metal processors verify the absence of liens using the department's automated statewide motor vehicle registration system before purchasing or receiving vehicles for scrapping, dismantling, or destruction.

• Prohibits used motor vehicle parts dealers and scrap metal processors from purchasing or receiving vehicles with existing liens at any time during which the lien exists.

• Takes effect January 1, 2025.