RULES AND REGULATIONS
Title 67--TRANSPORTATION
DEPARTMENT OF TRANSPORTATION
[67 PA. CODE CH. 43]
Temporary Registration Cards and Plates
[28 Pa.B. 5872] The Department of Transportation (Department), Bureau of Motor Vehicles (Bureau), by this order, amends Chapter 43 (relating to temporary registration cards and plates) to read as set forth in Annex A.
Notice of proposed rulemaking was published at 26 Pa.B. 3839 (August 10, 1996) with an invitation to submit written comments within 30 days of publication.
The Department received comments from the Pennsylvania Association of Notaries (PAN), the Pennsylvania Automotive Recycling Trade Society (PARTS) and the Independent Regulatory Review Commission (IRRC). The Department carefully reviewed and considered these comments and the following is a summary of these comments and the manner in which the Department responded:
(1) PARTS correctly noted that § 43.6 (relating to issuance of temporary registration plates) limits the issuance of temporary registration plates on reconstructed and specially constructed vehicles to the Bureau itself while issuing agents would be prohibited from issuing this particular type of temporary plate. An issuing agent is a dealer or agent who has been authorized by the Department to issue temporary plates and cards. PARTS believes that this provision adds unnecessary time and expense to the reconstructed and specially constructed registration process. The Department responded that current policy is that issuing agents are not permitted to issue temporary registration plates for specially constructed or reconstructed vehicles. This procedure has proven to be in the best interest of public safety since a reconstructed vehicle is a vehicle that has been rebuilt. This vehicle must be inspected by an inspection mechanic, and the individual who did the actual reconstruction, whether a dealer or an individual, must submit all the required documentation to the Department for review to ascertain that the reconstruction was done in a manner that makes the vehicle roadworthy. The Department, after reviewing and approving the reconstruction, will issue a title to the vehicle which includes a notation or a ''brand'' on the title itself advising any purchaser that the vehicle is reconstructed.
(2) PARTS asked the Department to allow issuing agents to issue temporary registration plates after the initial reconstructed inspection process is completed and the branded title is issued. The Department responded that decentralized messengers may issue this registration under the authority in Chapter 255 (relating to messenger service). This process is confined to decentralized messengers since it is necessary for them to telephone the Bureau to ensure there are no suspensions on the record prior to issuing the temporary registration.
(3) IRRC noted in § 43.4(d) (relating to authorization to issue temporary registration plates), that the Department revised the conditions under which it may deny an application of a person wishing to issue temporary registration plates by adding influence by a person who is ineligible for authorization and by extending this influence to corporate officers or shareholders. Although IRRC understands that the Department is attempting to prevent prior offenders from circumventing their suspensions through establishment of a new corporation, it stated that the term influence is too vague to be enforceable. IRRC recommended that the Department revise the prohibition to include any applicants business which is operated, managed, controlled or affiliated with a person ineligible for authorization. The Department agrees with this recommendation.
(4) IRRC noted that § 43.5(d) (relating to issuance of temporary registration cards) was revised to add the requirement that documents or forms in the application be verified. Existing regulations require the application to be properly executed and notarized while the proposed amendments required the application be properly and completely executed and verified or notarized. PAN has also expressed concern with the addition of the term ''verified.'' It stated that 75 Pa.C.S. (relating to the Vehicle Code) requires the services of a notary public to process certain motor vehicle transactions and forms, while 75 Pa.C.S. § 1103.1(b) (relating to certificate of title required) states: ''The application shall be signed and verified by oath or affirmation by the applicant if a natural person.'' The Department agrees and has removed the word ''verified.''
(5) IRRC expressed concerns regarding the addition of language in § 43.11(c) (relating to sanctions for violation by issuing agents). IRRC recommended that the Department remove the language ''multiple violations'' and establish a new subsection titled ''Dual violations.'' The Department agrees and has added subsection (i) titled ''dual violations'' and moved the language pertaining to the same violations under both chapters to the new subsection. IRRC also expressed concern with § 43.11(c) in its citation to Chapter 53 (relating to manufacturers, dealers and miscellaneous motor vehicle business registration plates) since the new language has not yet been incorporated into Chapter 53. IRRC recommended the reference be changed to 75 Pa.C.S. § 1374 (relating to suspension or revocation of vehicle business registration plates). The Department agrees with this recommendation and has cited 75 Pa.C.S. § 1374(d) as opposed to Chapter 53 in § 43.11(i).
(6) IRRC was concerned with the sanctions heading in § 43.11(a). Category I in the existing regulations contains a heading in the offense category which reads: ''Reason for suspension of agents.'' The proposed amendments revised the heading to read: ''Reason for sanction of agent.'' The heading of the offense categories in existing regulation, ''Duration of suspension'' is revised to ''type of sanction'' in the proposed rulemaking. While these headings are consistent with the changed language for offenses rewritten in the proposed rulemaking, the offenses in the existing regulation which were not revised will be inconsistent with the proposed headings. Therefore, IRRC believed the term ''suspension'' must be added to the existing penalty language for the following categories and offenses:
Category I (1), 1st and 2nd Offense
Category I (2), 1st, 2nd and 3rd Offense
Category I (3) and (5), 1st, 2nd and 3rd Offense
Category I (7), 1st and 2nd Offense
Category I (9), (10) and (14), 1st, 2nd and 3rd Offense
Category I (16) and (17), 2nd and 3rd Offense
Category I (18) and (21), 1st, 2nd and 3rd Offense
Category II (1) and (2), 2nd, 3rd and 4th Offense
Category II (3), 1st, 2nd, 3rd and 4th Offense
Category II (4) and (12), 2nd, 3rd and 4th Offense
The Department agrees with this recommendation and has revised the penalty description for the previous offenses.
(7) IRRC expressed two concerns with the language in § 43.11(a) Category II (5) which states: ''The agent has issued temporary plates up but has not timely delivered proper documents, fees or taxes to the Department within the time prescribed by law or regulation.'' IRRC correctly believed that the word ''up'' is a typographical error. The Department agrees and has made this correction. IRRC also noted that the phrases ''has not timely delivered'' and ''within the time prescribed by law or regulation'' are vague. The Department has amended § 43.11(a) Category II (5) and § 43.11(h)(1)(i)--(iii) and (v) and (2)(ii) in which the term ''timely'' appears, to include the phrase ''as prescribed by § 43.5(f)(1).''
(8) IRRC noted that § 43.11(h)(1)(iii) referred to the lienholder's failure to promptly forward the titles and has recommended that the Department provide clarification of what constitutes ''prompt'' action. The Department agrees and has eliminated the use of the word ''promptly.'' The Department changed the regulation to reflect that 75 Pa.C.S. § 1135(a)(1) (relating to satisfaction of security interest) which indicates that the certificate of title shall be immediately mailed or delivered to the owner with proper evidence of satisfaction and release. The Department changed the regulation to clarify that ''immediately'' means that prudent business practices would allow 3 days for the internal processing by the lienholder.
(9) IRRC expressed concern with § 43.11(h)(1)(v) which provided that an agent has the burden of ''presenting evidence acceptable to the Department'' that it submitted the documents, taxes and fees to the authorized messenger. IRRC recommended that this phrase be deleted. The better phrasing for describing the agents task in presenting a defense in a proceeding to determine a violation is ''burden of proof'' and not ''burden to present evidence.'' Also, the phrase ''evidence acceptable to the Department'' is not an appropriate legal standard. The finder of fact is responsible for weighing the evidence presented and determining, based on the evidence, whether the evidence is sufficient to prove that the agent submitted the documents. Therefore, IRRC recommended that subparagraph (v) be amended to the following:
''The agent has the burden of proving that it submitted the documents, taxes and fees to the authorized messenger within 15 days of the date of purchase of the vehicle, transfer of registration, or issuance of a temporary registration plate or card, whichever occurred first.''
The Department agrees with this recommendation and has amended subparagraph (v) as suggested.
(10) IRRC believed that the subsection titled ''Suspension without hearing'' in § 43.11(h)(3)(i) did not belong as a subparagraph under § 43.11(h)(3). Since it deals with material unrelated to preclusion from mitigation, IRRC believed it should more appropriately be added to § 43.11(h)(4). The Department agrees that it is unrelated to § 43.11(h)(3) and has moved this to § 43.11(j).
The final text of these amendments contains minor modifications, additions, deletions and additional changes, none of which enlarges the scope of these regulations as originally proposed, and thus, may be published as a final rulemaking. The following represent a summary of the changes:
Section 43.4(d) has been amended to provide that an application to be an issuing agent may be denied if the ''applicant's'' business is operated, managed or otherwise controlled or affiliated with a corporate officer or shareholder who is ineligible for authorization. The Department had initially proposed denying an application for a certificate of authorization if the applicant is ''influenced'' by a person who is not eligible for authorization. IRRC recommended that the Department consider changing ''influenced'' to ''affiliated'' because of the vagueness of the term ''influenced.'' The Department agrees.
Section 43.5(d) has been further amended to delete the requirement that issuing agents verify the application before issuing the temporary registration card. The Department deleted this requirement because, upon further review, it believes that it was creating an equivocation of the term between its use in the Vehicle Code and the regulations.
IRRC indicated that the meaning of the term ''verified'' was unclear. The Department agrees.
Section 43.7(d) (relating to inventory of temporary registration cards and plates), has been amended for the purpose of clarification of the phrase ''authorized Commonwealth employes.'' The present language in this section provides for temporary registration plates and related documents to be available for inspection, with or without notice, by authorized Commonwealth employes. For the purpose of clarification, this section has been amended to clarify that this does include the State Police. This section was amended to avoid any possible confusion as to who was an authorized Commonwealth employe. The Department works closely with the State Police in the enforcement of Commonwealth law and regulations promulgated under authority of the Vehicle Code.
Section 43.11(a) contains a schedule which outlines the violations by issuing agents. The heading in the existing regulations reads: ''Reason for suspension of agent,'' which the Department changed to ''Reason for sanction of agent'' in the proposed regulations. Also, the other heading in the existing regulations reads: ''Duration of Suspension'' which was changed to ''Type of Sanction.'' While these proposed headings are consistent with the language contained in the rewritten schedule of offenses, they are inconsistent with the schedule contained in the existing regulations which have not been rewritten. Therefore, the Department has amended the schedule to add the term ''suspension'' in:
Category I (1), 1st and 2nd Offense
Category I (2), 1st, 2nd and 3rd Offense
Category I (3) and (5), 1st, 2nd and 3rd Offense
Category I (7), 1st and 2nd Offense
Category I (9), (10) and (14), 1st, 2nd and 3rd Offense
Category I (16) and (17), 2nd and 3rd Offense
Category I (18) and (21), 1st, 2nd and 3rd Offense
Category II (1) and (2), 2nd, 3rd and 4th Offense
Category II (3), 1st, 2nd, 3rd and 4th Offense
Category II (4), (6)--(12), 2nd, 3rd and 4th Offense
Section 43.11(a) Category I (3) and (19) are redundant, and accordingly, this section has been amended by deleting Category I (19). This duplicity is not required as the only difference is the penalty. The penalty at Category I (3) is more appropriate than the listed penalty in Category I (19). This deletion results in the renumbering of Category I (20) and (21) to Category I (19) and (20) respectively.
Section 43.11(a), Category II (5) contains the phrases ''has not timely delivered'' and ''within the time prescribed by law or regulation.'' To avoid the perception of vagueness, the Department has added as prescribed by § 43.5(f)(1) to the referenced subsection.
Section 43.11(a), Category II (5) contains a typographical error by inclusion of the word ''up'' early on in the sanction. The Department has deleted the word ''up'' in accordance with the IRRC recommendation.
Section 43.11(c) has been amended to delete the language which added a provision that an agent, who is also a dealer and who has been sanctioned with a monetary penalty for a violation that constitutes an offense of Chapters 43 and 53, will only have to pay the monetary penalty prescribed in Chapter 53. This provision has been moved to § 43.11(i) as recommended by IRRC. Further, the substance of the proposed § 43.11(i), relating to suspension without hearing, has been moved to a new subsection (j).
Section 43.11(h)(1)(i)--(iii) and (v) and previously (2)(ii) contains the phrase ''timely submit'' which IRRC believed to be vague. To avoid vagueness, the Department has added ''as prescribed by § 43.5(f)(1)'' to each of the referenced subparagraphs. Section 43.5(f)(1) provides that the agent shall submit to the Bureau the original copy of the registration card, related documents and the required fees within 20 days of the issuance of the temporary registration.
Section 43.11(h)(1)(iii) concerns the lienholder's failure to ''promptly'' forward the titles to the vehicle owners upon satisfaction of the encumbrance. IRRC questioned the clarity of the word ''promptly'' and the Department agreed. Therefore, the Department has changed the regulation to clarify that by ''immediately'' means that prudent business practices would allow 3 days for the internal processing by the lienholder. The Department also changed the word ''agent'' to the word ''owner,'' since ''owner'' is the term used in 75 Pa.C.S. § 1135(a)(1), and the Department believes that the word ''owner'' would maintain consistency.
Section 43.11(h)(1)(v) provides that an agent has the burden of presenting evidence acceptable to the Department that it submitted the documents, taxes and fees to the authorized messenger. In response to a recommendation from IRRC, the Department has deleted the phrase ''presenting evidence acceptable to the Department'' and replaced it with the term ''proving.''
Section 43.11(i) has been amended by removing the substance of the same to a new § 43.11(j). This change was made at the suggestion of IRRC.
Section 43.11(i) adds a new subsection which provides that an agent, who is also a dealer and who has been sanctioned with a monetary penalty for a violation that constitutes an offense of 75 Pa.C.S. § 1374(d) and Chapter 43, will only have to pay the monetary penalty of 75 Pa.C.S. § 1374(d). This provision, in the proposed rulemaking previously appeared within § 43.11(c), multiple violations, however, it is more appropriate to present this rule within its own subsection.
Persons and Entities Affected
These final-form regulations affect all persons who apply for or who are currently authorized to issue temporary registration cards or plates, vehicle owners who request issuance of a temporary card or plate, the State Police and local law enforcement agencies.
Fiscal Impact
These amendments will not require the expenditure of additional funds by the Commonwealth or local governments. The Department, however, at the request of dealerships and tag agents has incorporated a provision to replace suspensions for second and third offenses for failing to timely deliver documents, taxes and fees to the Department, with a monetary penalty of $50 to $100 for a second offense and $100 to $200 for a third offense. These penalties, however, will only be imposed upon those agents who fail to comply with timely submission as prescribed in the Vehicle Code.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on July 15, 1996, the Department submitted a copy of the notice of proposed rulemaking, published at 26 Pa.B. 3839, to IRRC and the Chairpersons of the House and Senate Committees on Transportation for review and comment.
These final-form regulations were deemed approved by the Committees on September 28, 1998, and were approved by IRRC on October 6, 1998, in accordance with section 5(c) of the Regulatory Review Act.
Sunset Provisions
The Department is not establishing a sunset date for these regulations, since these regulations are needed to administer provisions required under the Vehicle Code. The Department, however, will continue to monitor these regulations for their effectiveness.
Contact Persons
The contact person is Randy Swartz, Acting Manager, Customer Service Division, Bureau of Motor Vehicles, 1101 S. Front Street, Harrisburg, PA (717) 787-2780.
Authority
The final-form regulations are amended under the authority contained in 75 Pa.C.S. §§ 1310, 1331 and 6103 (relating to temporary registration cards; registration card to be signed and exhibited on demand; and promulgation of rules and regulations by the department).
Findings
The Department finds that:
(1) Public notice of the intention to amend the administrative regulations amended by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) The amendment of the regulations of the Department in the manner provided in this order is necessary and appropriate for the administration and enforcement of the authorizing statutes.
Order
The Department acting under the authorizing statutes, orders that:
(a) The regulations of the Department, 67 Pa. Code Chapter 43, are amended by amending §§ 43.4--43.7, 43.9, 43.11 and 43.12 to read as set forth in Annex A, with ellipses referring to the existing text of the regulations.
(b) The Secretary of the Department shall submit this order and Annex A, to the Office of Attorney General and the Office of General Counsel for approval as to the legality as required by law.
(c) The Secretary of the Department shall certify this order and Annex A, and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect upon publication in the Pennsylvania Bulletin.
BRADLEY L. MALLORY,
Secretary(Editor's Note: The amendment of § 43.7 was not included in the proposal at 26 Pa.B. 3839).
(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 28 Pa.B. 5439 (October 24, 1998).)
Fiscal Note: Fiscal Note 18-337 remains valid for the final adoption of the subject regulations.
Annex A
TITLE 67. TRANSPORTATION
PART I. DEPARTMENT OF TRANSPORTATION
Subpart A. VEHICLE CODE PROVISIONS
ARTICLE III. REGISTRATION
CHAPTER 43. TEMPORARY REGISTRATION CARDS AND PLATES § 43.4. Authorization to issue temporary registration plates.
* * * * * (d) Denial of application. The Department may deny an application for a certificate of authorization on the basis of information revealed in an investigation, or if the applicant fails to disclose material information required or if the applicant has made a materially false statement on the application, or if the applicant's business is operated, managed or otherwise controlled or affiliated with a person who is ineligible for authorization, including a relative, family member, corporate officer or shareholder.
* * * * * § 43.5. Issuance of temporary registration cards.
* * * * * (d) Duty to examine documents. The duty to examine documents includes the following:
* * * * * (2) A temporary registration card may not be issued unless the following items are found to be in order:
* * * * * (ii) Application. The application shall be properly and completely executed and notarized, as required, accompanied by the correct fees, taxes and other required forms or documents.
(f) Copies of temporary registration card. Copies of the temporary registration card shall be handled as follows:
* * * * * (3) The agent's copy of the temporary registration card, copies of related documents including bills of sale when the agent is also the dealer and a copy of the document used for identification and copies of the documents used for insurance verification shall be retained at the place of business of the issuing agent for at least 3 years and shall be made available for inspection only by police and authorized representatives of the Department. Cards issued in conjunction with the transfer of registration plates shall be kept separate from cards issued in conjunction with temporary registration plates. Cards shall be kept in chronological order according to the date of issuance.
* * * * * § 43.6. Issuance of temporary registration plates.
(a) Limits on issuance. Temporary registration plates will be issued in the following manner:
(1) Temporary registration plates other than those specified in paragraph (4) will be issued only by the Bureau, approved governmental agencies, dealers, manufacturers and full agents authorized by the Bureau.
(2) Temporary registration plates shall be issued only in conjunction with an application for title and registration of a vehicle within this Commonwealth or for the purpose of driving or otherwise moving a vehicle purchased in this Commonwealth to another state or country for titling, registration, use or resale there.
(3) Notwithstanding paragraphs (1) and (2), a full agent who is also an authorized messenger service under Chapter 255 (relating to messenger services), may issue a temporary registration plate in one of the following circumstances after receiving authorization from the Department indicating the vehicle record is clear of a suspension or other impediment to issuance of the registration plate:
(i) For a vehicle for which the applicant already has a Pennsylvania certificate of title.
(ii) To a person who is applying for replacement of a lost, stolen or defaced registration plate.
(iii) For a vehicle for which the applicant has an out-of-State title and registration, but is also required to be registered, but not titled, in this Commonwealth.
(4) Temporary registration plates for reconstructed and specially constructed vehicles will be issued only by the Bureau.
(b) Issuance at other locations. The Department may provide written authorization for individual dealers, manufacturers or full agents to issue temporary registration plates at a location other than the places of business of the dealer, manufacturer or full agent for a period not to exceed 1 year. The privilege to issue temporary registration plates from a location other than the designated dealer, manufacturer or full agent's place of business is revocable if the Department finds that the dealer, manufacturer or full agent has violated this chapter or the terms of the written authorization.
(c) Obtaining temporary registration plates. Temporary registration plates shall be obtained by submitting the appropriate form and paying the applicable fee to the Bureau.
(d) Issuance of temporary registration card in conjunction with issuance of temporary registration plates. Upon the issuance of a temporary registration plate, the authorized dealer, full agent or manufacturer shall issue a temporary registration card, in the manner prescribed on forms provided by the Department and in § 43.5 (relating to issuance of temporary registration cards).
(1) The number of the temporary registration plate shall be indicated on the temporary registration card.
(2) If the vehicle is not to be titled in this Commonwealth, it shall be noted on the temporary registration card.
(e) Issuance of temporary registration plates. Temporary registration plates shall be issued in consecutive order, beginning with the lowest number in each series.
(f) Issuance of cardboard temporary registration plates. Upon issuance of a cardboard temporary registration plate, the authorized dealer, manufacturer or full agent shall punch out the month, day and year of expiration at the space provided and shall record the following information clearly and indelibly on the face of the temporary plate:
(1) The date of issuance.
(2) The year, make and model of vehicle.
(3) The vehicle identification number.
(4) The identification number of the authorized dealer, manufacturer or full agent.
(g) Fee charged. The fee charged for providing an applicant with a temporary plate may not exceed:
(1) Ten dollars if the plate was obtained from the Department for a fee of $5.
(2) Five dollars if the plate was obtained from the Department for a fee of $1.
§ 43.7. Inventory of temporary registration cards and plates.
(a) Inventory report. Every dealer, manufacturer and full agent is responsible for providing the Bureau with a report on the temporary registration plates which it has in inventory, within 30 days of the Bureau's request for the information.
(b) Security. Temporary registration cards and plates shall be kept in a secure place, which shall meet the approval of the Bureau. Issuing agents shall be responsible for security of temporary registration cards and plates obtained by them until they are issued to applicants.
(c) Report on lost or stolen plates. If plates are lost or stolen, the dealer, manufacturer or full agent shall notify the Department of the loss or theft within 48 hours of the occurrence. This notice shall be in the form of a notarized statement and shall give complete details of the loss or theft of the plates. In the event of theft, a police report shall be submitted to the Department within 10 days of the theft.
(d) Available for inspection. Temporary registration plates and related documents shall be available for inspection, with or without notice, by authorized Commonwealth employes which includes the State Police. Records required by the Department to be maintained by the issuing agent in carrying out its duties under this chapter shall be subject to periodic inspection by authorized representatives of the Commonwealth or its designated agents under the following conditions:
(1) Place. The inspection will be conducted at the issuing agent's established place of business.
(2) Time. The inspection will be conducted during regular and usual business hours.
(3) Scope. The inspection will be limited to examination of the records and plate inventory which are subject to the recordkeeping requirements of this chapter and which are on the premises.
§ 43.9. Bond.
(a) Authorized dealers, manufacturers and full agents to be bonded. Every authorized dealer, manufacturer and full agent shall file and maintain with the Bureau a bond executed by a surety company authorized to transact business in this Commonwealth. The bond shall be for the use and benefit of the Commonwealth and a person who has sustained a monetary loss within the limitations of the bond as specified in subsection (d).
(b) Amount of bond. Issuing agents, other than card agents, shall be bonded in the amount of $20,000, except full agents who purchase fewer than 200 temporary plates in any 12-month period shall be bonded in the amount of $10,000. The amount of the bond shall be raised to $20,000 before a full agent may purchase 200 or more temporary plates in any 12-month period.
(c) Decrease in amount of bond. If the amount of the bond is decreased, or if there is a final judgment outstanding against the bond, the right of the authorized dealer, manufacturer or full agent to issue temporary registration cards and plates will be suspended until steps are taken, satisfactory to the Bureau, to restore the original amount of the bond, provide additional bond or satisfy the judgment.
(d) Limitations of bond. The bond required under this section shall cover transactions in which the Commonwealth or a person specified in subsection (a), has sustained a monetary loss due to the agent, dealer or manufacturer submitting a dishonored or uncollectible check to the Commonwealth (including protest and uncollectible check fees), or failing to remit to the Commonwealth a fee or tax when the monetary loss is incurred in connection with the business of the dealer or manufacturer. A check which is dishonored upon presentment, or an application for title or registration which is received without a required fee or tax, shall constitute a monetary loss. Failure to pay a monetary penalty within 45 days of assessment shall also constitute a monetary loss. The bond required under this section may not cover a loss for a transaction which is not mentioned in this subsection relating to the issuance of temporary registration cards or plates in connection with the business of the dealer, manufacturer or full agent. If the dealer, manufacturer or full agent has one or more branch offices, the amount of the bond shall be increased by the amount specified in subsection (b) for each branch office, except that the total amount of the bond will not be required to exceed $200,000.
(d) Limitations of bond. The bond required under this section shall cover transactions relating to the issuance of temporary registration cards or plates that are entered into in connection with the business of the dealer, manufacturer or full agent. If the dealer, manufacturer or full agent has one or more branch offices, the amount of the bond shall be increased by the amount specified in subsection (b) for each branch office, except that the total amount of the bond shall be limited to $200,000.
(e) Bond already on file. An authorized dealer, manufacturer or full agent who has filed a bond with the Commonwealth will not be required to file a separate bond under this section, if the bond already on file with the Commonwealth is in the name of the Commonwealth and at least equal to the amount and coverage of the bond required under this section.
(f) Acceptance. The surety and terms of bonds or riders shall be subject to review and acceptance by the Bureau.
(g) Change of address. When a change of address occurs, a stipulation or rider to the original bond shall be submitted for the new address.
(h) Authorized claims. The Bureau has the right to make and settle claims upon the bond with the surety company on behalf of the Commonwealth and a person who has incurred a monetary loss as specified in subsection (a). The Bureau will, upon written request, assign this right to a person for that person's claim; however, in this event, the Commonwealth is released from any duty to the person towards obtaining satisfaction of that person's claim. The Commonwealth will have priority, to the exclusion of all others, in receiving payment from the surety. If the aggregate amount of valid claims exceeds the amount of the bond, priority for the payment of claims shall be as follows:
(1) Claims made by the Commonwealth.
(2) Claims made by the Commonwealth for persons.
(3) Claims made by persons who obtained assignment from the Bureau.
§ 43.11. Sanctions for violations by issuing agents.
(a) Schedule. After providing an opportunity for a hearing, the Department will impose the suspensions or sanctions on an issuing agent according to the schedule of Category I violations and may impose suspensions or sanctions on an issuing agent according to the schedule of Category II violations, when the Department finds upon sufficient evidence that:
Reason for Sanction of Agent Type of Sanction Fourth and First Second Third Subsequent Offense Offense Offense Offense Category I (1) The agent has committed a fraudulent act including the fraudulent keeping of records, or the fraudulent completion of an application submitted to the Department or the failure to submit to the Department, completed applications and fees and taxes due the Commonwealth in connection with the issuance of the temporary cards or plates. 6-months suspension 1-year suspension Revocation (2) The agent has failed to allow inspection of documents or plates in the possession of the issuing agent by authorized Commonwealth employes. Suspension until the documents, plates, or both, are made available, plus 1 month Suspension until the documents, plates, or both, are made available, plus 3 months Suspension until the documents, plates or both are made available, plus 6 months Revocation (3) The agent has consigned or transferred plates to other issuing agents, notaries or persons. 1 month suspension 3 months suspension 6 months suspension Revocation (4) The agent has issued temporary plates but has failed to deliver proper documents, fees or taxes to the Department. Suspension until the documents, fees or taxes are delivered plus a written warning Suspension until the documents, fees or taxes are delivered, plus 1 month Suspension until the documents, fees or taxes are delivered, plus 6 months Revocation (5) The agent has issued a temporary registration card or plate containing a misstatement of fact or other false information, which the agent knew or should have known to be incorrect or false. 1-month suspension 3-months suspension 6-months suspension Revocation * * * * *
(7) The manufacturer, dealer or full agent has failed to maintain in the amount required by 75 Pa.C.S. § 1335(a) and § 43.9 (relating to registration plates for manufacturers and dealers; and bond). Suspension until the satisfactory bond is furnished to the Department Suspension until the satisfactory bond is furnished to the Department plus 1 month Revocation (8) The agent has submitted a document to the Department for processing which has been accompanied by an uncollectible or dishonored check drawn on an account used by the agent. Suspension until the uncollectible checks, protest fees and collection charges under the act are paid, plus a written warning Suspension until the uncollectible checks, protest fees and collection charges under the act are paid, plus 1 month Suspension until the uncollectible checks, protest fees and collection charges under the act are paid, plus 6 months Revocation (9) The manufacturer dealer or full agent has failed to provide the Bureau with an inventory report within 30 days, as required by § 43.7(a) (relating to inventory of temporary registration cards and plates). Suspension until the report is provided Suspension until the report is provided, plus 1 month Suspension until the report is provided, plus 3 months Revocation (10) The agent has charged a fee in excess of the fee allowed for providing an applicant with a temporary plate under § 43.6(g) (relating to issuance of temporary registration plates). 1-month suspension 3-months suspension 6-months suspension Revocation * * * * *
(12) The agent has issued temporary registration plates at a location not approved by the Department. Written warning 1-month suspension 3-months suspension 6-months suspension (13) The agent has operated a branch office without notifying the Department. Suspension until the branch office is approved by the Department or closed by the agent. (14) The agent does not comply with the notary requirement of § 43.4(a)(9) (relating to authorization to issue temporary registration plates). Suspension until the notary is employed Suspension until the notary is employed, plus 1 month Suspension until the notary is employed, plus 3 months Revocation * * * * *
(16) The agent has not listed or obtained proper insurance information as required by 75 Pa.C.S. § 1318(b) and § 43.5(d)(2)(i) (relating to duties of agents; and issuance of temporary registration cards). Written warning 3-months suspension 6-months suspension Revocation (17) The agent has reissued a temporary registration card without written authorization from the Department. Written warning 1-month suspension 3-months suspension Revocation (18) The agent has charged a fee for the issuance of a temporary registration card in violation of 75 Pa.C.S. § 1310(c) and § 43.5(g) 1-month suspension 3-months suspension 6-months suspension Revocation (19) The agent has failed to maintain an established place of business. Suspension until an established place of business is approved by the Department (20) The agent has failed to report a transaction involving the sale or transfer of a vehicle as required by statute, regulation or rule administered or enforced by the Internal Revenue Service. 3-months suspension 6-months suspension 1-year suspension Revocation Category II (1) The agent has not issued temporary registration plates in consecutive order, beginning with the lowest number in each series. Written warning 1-month suspension 3-months suspension 6-months suspension (2) The agent has not listed the date of the issuance of the temporary cards or plates. Written warning 1-month suspension 3-months suspension 6-months suspension (3) The manufacturer, dealer or full agent has failed to notify the Department of a change in office location before or within 10 days of the change. Suspension until the application related to the change has been approved Suspension until the application related to the change has been approved, plus 1 month Suspension until the application related to the change has been approved, plus 3 months Suspension until the application related to the change has been approved, plus 6 months (4) The agent has failed to keep the temporary registration card and documents related to the application for title or registration, or both, in strict confidentiality, as required by § 43.5. Written warning 1-month suspension 3-months suspension 6-months suspension (5) The agent has issued temporary plates but has not timely delivered proper documents, fees or taxes to the Department within the time as prescribed by § 43.5(f)(1). Written warning Monetary penalty of $50 to $100 per violation; and suspension for failure to pay the penalty or deliver the documents, fees or taxes within 45 days after the date that the notice was sent, or a greater time period as specified by the Department, until the penalty is paid or documents, fees or taxes are delivered to the Department Monetary penalty of $100 to $200 per violation; and suspension for failure to pay the penalty or deliver the documents, fees or taxes within 45 days after the date that the notice was sent, or a greater time period as specified by the Department, until the penalty is paid or documents, fees or taxes are delivered to the Department 3-month suspension to revocation (6) The agent has issued temporary plates for a vehicle for which a title has already been issued, unless permitted under § 43.6(a)(3). Written warning 1-month suspension 3-months suspension 6-months suspension (7) The agent has issued a metal plate for transporting a vehicle out-of-State. Written warning 1-month suspension 3-months suspension 6-months suspension (8) The manufacturer, dealer or full agent has repeatedly not listed its name and identification number, as required, on applications and checks submitted to the Department. Written warning 1-month suspension 3-months suspension 6-months suspension (9) The agent has issued the incorrect type of plate for a particular vehicle. Written warning 1-month suspension 3-months suspension 6-months suspension (10) The manufacturer, dealer or full agent has failed to post in a conspicuous manner at place of business: (i) Schedule of motor vehicles fees. Written warning 1-month suspension 3-months suspension 6-months suspension (ii) Schedule of the manufacturer's, dealer's or full agent's fees. Written warning 1-month suspension 3-months suspension 6-months suspension (iii) Hours of operation. Written warning 1-month suspension 3-months suspension 6-months suspension (iv) Certificate of authorization. Written warning 1-month suspension 3-months suspension 6-months suspension (11) The manufacturer, dealer or full agent has failed on two or more occasions to open during posted business hours. Written warning 1-month suspension 3-months suspension 6-months suspension (12) The agent has refused to accept a separate check or money order made payable to the Commonwealth for fees and taxes due to the Commonwealth. Written warning 1-month suspension 3-months suspension 6-months suspension (13) The agent has failed to provide proper security for temporary registration cards and plates. Written warning 1-month suspension 3-months suspension 6-months suspension (14) The agent has refused to issue, upon request, a temporary registration card to an owner or lessee of a vehicle who possesses proper documentation. Written warning 1-month suspension 3-months suspension 6-months suspension (15) The agent has failed to maintain an adequate schedule of business hours. Written warning 1-month suspension 3-months suspension 6-months suspension (16) The agent has issued a cardboard temporary tag without verification that the vehicle will be transported to another state for registration as for registration as required by § 43.5(d)(2)(i)(C). Written warning 1-month suspension 3-months suspension 6-months suspension (17) The agent has: (i) Failed to furnish receipts as required. Written warning 1-month suspension 3-months suspension 6-months suspension (ii) Failed to retain duplicate copies of receipts for 3 years. Written warning 1-month suspension 3-months suspension 6-months suspension (18) The agent has issued a temporary registration to an applicant without proper documentation. Written warning 1-month suspension 3-months suspension 6-months suspension (19) The manufacturer, dealer or full agent has failed to notify the Department of a change in ownership or other changes affecting the business of the issuing agent before or within 10 days of the change. Suspension until an application related to the change has been submitted to the Department. (20) The agent has failed to retain proper records under § 43.5(f). Written warning 1-month suspension 6-months suspension Revocation (21) The agent has on two or more occasions violated, or failed to comply with, a provision of 75 Pa.C.S. Chapter 11, 13, 21, 23 or 71, or Departmental regulations promulgated under these chapters, except for untimely submissions as provided in paragraph (5). 1-month suspension 3-months suspension 6-months suspension Revocation (22) The agent has been convicted of a summary offense, relating to the titling, registration or payment of sales tax for a vehicle which was committed in connection with the business of the agent, except for untimely submissions as provided at paragraph (5). Written warning 1-month suspension 3-months suspension Revocation * * * * * (c) Multiple violations. In the case of multiple violations considered at one time, the Department may impose separate sanctions for each violation under the schedule in subsection (a). The Department may direct that a suspension or revocation imposed be served concurrently or consecutively.
(d) Suspension authority reserved. The description of grounds for suspension will not be deemed to limit the authority of the Department to control the issuance of temporary registration cards and plates as granted by 75 Pa.C.S. §§ 1310 and 1331 (relating to temporary registration cards; and issuance of registration plates). The Department may suspend an issuing agent for offenses not described in subsection (a), such as any use of temporary registration plates or official documents, or conduct on the part of the issuing agent, that does not conform to the law of the Commonwealth. Sanctions imposed under this subsection shall be consistent with the sanctions imposed under subsection (a) according to the seriousness of the violation as evidenced by factors such as the number of persons or documents involved, the amount of money involved, and the like.
* * * * * (h) Relevant mitigating events. For a violation of subsection (a) Category II (5), second, third or subsequent offense, the Department will consider the following relevant mitigating events that serve to exonerate the agent of the offense or to reduce the monetary penalty that may be imposed. The agent has the burden of establishing the relevant mitigating event and that the relevant mitigating event was the cause of the violation.
(1) Exoneration. In determining whether the relevant mitigating events serve to exonerate the agent of the offense, the Department will consider evidence offered by the agent pertaining to the following:
(i) Whether the failure to timely submit, as prescribed by § 43.5(f)(1), the applications, taxes or fees was the result of an Act of God, such as fire, flood or other natural disaster.
(ii) Whether the failure to timely submit, as prescribed by § 43.5(f)(1), the applications, taxes or fees, was the result of criminal or fraudulent action by an employe or licensed messenger of which the agent was not aware and could not have prevented and that the agent had in place customary business practices to effectuate the timely submission of taxes, fees and title applications to the Department.
(iii) Whether the failure to timely submit, as prescribed § 43.5(f)(1), the applications, taxes or fees, was the result of a lienholder's failure to immediately forward the titles to the owner, as prescribed by 75 Pa.C.S. § 1135(a)(1) (relating to satisfaction of security interest) and, in this case, whether the lienholder received prompt repayment of the debt from the vehicle owner or licensed dealer and immediately released its liens within 3-business days.
(iv) Whether the agent would have been exonerated of prior sanctions that were issued against the agent within the 3 years prior to November 28, 1998, had the Departmental regulations that were effective, November 28, 1998, been in effect.
(v) Whether the failure to timely submit the applications, as prescribed by § 43.5(f)(1), was the result of criminal, fraudulent or negligent action by an authorized messenger of the Department. This subparagraph does not apply when the same person controls the agent and the messenger. The agent has the burden of proving that it submitted the documents, taxes and fees to the authorized messenger within 15 days of the date of purchase of the vehicle, transfer of a registration or issuance of a temporary registration plate or card, whichever occurred first.
(2) Reduction in monetary penalty. In determining whether the events serve to reduce the monetary penalty that the Department may impose, but which will not exonerate the agent of the offense, the Department will consider evidence offered by the agent pertaining to the following:
(i) Whether subsequent to the applicable notice of hearing issued by the Department, the Department's records reflect that the agent has remedied the event which was the cause of the untimely submissions and that no additional late submissions have occurred.
(ii) Whether the applications, taxes or fees were submitted by more than 20 but less than 40 days after the date of purchase of the vehicle, if no consumer or vehicle purchaser was harmed by the agent's failure to timely submit, as prescribed by § 43.5(f)(1), the applications, taxes or fees and that the agent had in place customary business practices to effectuate the timely submission of taxes, fees and title applications to the Department. Failure of the consumer or vehicle purchaser to receive the annual registration documents prior to expiration of the temporary registration constitutes harm.
(3) Preclusion from mitigation. If the Department discovers that the agent, or an employe of the agent, altered the date of purchase of a vehicle upon an application, the Department will be precluded from exonerating the agent of the offense or reducing the monetary penalty and will impose the sanction prescribed by subsection (a).
(i) Dual violations. If an agent, which is also a dealer, has been sanctioned with a monetary penalty as a dealer under 75 Pa.C.S. § 1374(d) (relating to suspension or revocation of vehicle business registration plates) for a violation that involves the same violation for which a monetary penalty may be imposed under this chapter, only the monetary penalty prescribed in 75 Pa.C.S. § 1374(d) will be imposed upon the agent, which is also a dealer, for the violations that constitute offenses of both. The offenses will be noted upon the record for both this chapter and Chapter 53 (relating to manufacturers, dealers and miscellaneous motor vehicle businesses registration plates).
(j) Suspension without hearing. The Department will suspend an issuing agent without a hearing when the agent refuses to allow inspection of records in accordance with § 43.7(d).
§ 43.12. Use of temporary registration plate.
(a) Applicability. This section pertains to the use of a temporary registration plate by the person to whom it was issued.
(b) Temporary registration plate nontransferable. Temporary registration plates may not be transferred from one vehicle to another. If a person purchases another vehicle before receiving the regular registration card from the Bureau, the person shall wait until receipt of the regular registration card and then transfer the registration plate in the usual manner.
(c) Expiration of temporary registration plates. Temporary registration plates shall expire as follows:
(1) Rules pertaining to cardboard plates.
(i) A cardboard temporary registration plate shall expire and become void upon the occurrence of one of the following:
(A) Issuance of registration from another state.
(B) Rescission of a contact to purchase a vehicle.
(C) Expiration of 30 days from the date of issuance.
(ii) Upon expiration of a cardboard temporary registration plate, the person to whom it was issued shall destroy it.
(2) Rules pertaining to metal plates. A metal temporary registration plate may not be used after the expiration of 60 days from the date of issuance of the temporary card and plate until the registrant receives a regular registration card from the Bureau.
(d) Use of temporary registration plates on vehicles transporting a load. Vehicles transporting a load shall comply with the following:
(1) Temporary metal registration plates may be used on a vehicle transporting a load if the vehicle has a gross vehicle weight rating of 26,000 pounds or less and the vehicle and load have a gross weight of 26,000 pounds or less.
(2) Temporary metal registration plates may not be used on a vehicle transporting a load, if the vehicle has a gross vehicle weight rating in excess of 26,000 pounds or the vehicle and load have a gross weight in excess of 26,000 pounds, unless the vehicle is operating only within this Commonwealth or through jurisdictions which are not members of the International Registration Plan.
(3) Temporary cardboard registration plates may not be used on a commercial vehicle transporting a load.
(e) Prosecution. A person who violates subsection (c) shall be subject to prosecution under 75 Pa.C.S. § 1301 (relating to driving unregistered vehicle prohibited).
[Pa.B. Doc. No. 98-1944. Filed for public inspection November 27, 1998, 9:00 a.m.]
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