HB 2744
In CommitteeHouse
Vehicle dealer sale reports
Concerning vehicle dealer reports of sale.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill tightens requirements for reporting vehicle sales and transfers to the state, requiring owners and dealers to notify the Department of Licensing within 5 business days of a transfer and providing clearer rules for assigning liability for abandoned vehicles. It also strengthens enforcement tools to hold buyers accountable when they are falsely listed as recipients of vehicles they did not accept.
- Requires vehicle owners to report sales, gifts, trades, donations, or other transfers to the Department of Licensing (DOL) within 5 business days of the transfer.
- Specifies required information for a properly filed report, including date of sale, full names and addresses of seller and buyer, vehicle identification number (VIN), license plate number, and payment of applicable fees.
- Mandates that licensed vehicle dealers must file reports of sale on behalf of customers who trade in or sell vehicles to them, and collect and remit required fees.
- Clarifies that properly filed reports of sale relieve the prior owner of liability for costs related to abandoned vehicles, unless there is evidence the buyer did not accept the vehicle.
- Expands the list of acceptable evidence for proving a vehicle transfer occurred (e.g., signed contracts, titles, receipts) and allows courts to consider such evidence when determining liability for abandoned vehicles.
- Maintains a 15-day deadline for new owners to apply for a new title, with a penalty for late filing and a misdemeanor charge for failing to apply within 45 days, unless one of several exceptions apply.
Who is affected
- Vehicle owners — Must report vehicle sales, gifts, trades, donations, or other transfers to the state within 5 business days and provide required information (e.g., buyer details, VIN, odometer disclosure). Failure to do so may result in penalties or liability for abandoned vehicle costs.
- Licensed vehicle dealers — Must file reports of sale on behalf of customers who trade in or sell vehicles to them, collect and remit applicable fees, and ensure proper documentation to avoid liability for abandoned vehicles.
- Buyers named on reports of sale — May be held liable for towing, storage, and disposal costs of abandoned vehicles if they are listed as the buyer on a report of sale but did not actually accept the vehicle, and may sue the person who filed the false report.
- Last registered owners of record — May be held liable for abandoned vehicle costs if they fail to file a timely report of sale, unless they qualify for one of the listed exceptions (e.g., illness, agency error).
Pro/Con Analysis
Potential Benefits (5)
Reduces misattribution of abandoned vehicle liability by requiring timely reporting and allowing courts to consider evidence of actual acceptance — protecting innocent individuals who are falsely listed as buyers and preventing unjust cost-shifting to prior owners.
Public SafetyPeopleRef: Sec. 2(4), (7)(a)Protects last registered owners from liability for abandoned vehicle costs if they timely file or have a dealer file a report of sale — reducing out-of-pocket expenses for towing, storage, and disposal fees that can exceed $1,000 per vehicle.
FinancialPeopleRef: Sec. 1(2), (3), (5); Sec. 2(4)Mandates electronic reporting system and real-time record updates, improving DOL’s ability to track vehicle ownership changes and reducing fraud — potentially speeding up title processing for all users over time.
TransportationPeopleRef: Sec. 1(4)(ii), (4)(iii)Expands exceptions to penalties (e.g., illness, agency error) and clarifies that theft reports relieve liability for abandonment — offering modest protections for vulnerable populations, though enforcement may be uneven.
Rights & LibertiesLean peopleRef: Sec. 1(9), (10); Sec. 2(3)Grants a cause of action to sellers falsely accused by buyers of non-acceptance — but this benefit is limited to those with legal resources to pursue litigation, making it less accessible to low-income residents.
Rights & LibertiesLean peopleRef: Sec. 2(7)(b)
Potential Concerns (5)
Increases administrative burden and risk of misattribution for vehicle owners who fail to file reports within 5 business days — potentially leading to unjust liability for abandoned vehicle costs (e.g., towing, storage) even when the vehicle was sold in good faith but paperwork was delayed due to illness, system error, or buyer fraud. The burden falls disproportionately on low-income, elderly, or non-English-speaking individuals who may lack access to electronic filing or legal assistance.
Public SafetyPeopleRef: Sec. 1(2), (3), (8); Sec. 2(1), (2), (4)Imposes a mandatory 15-day deadline for title transfer with a penalty and a misdemeanor charge for failure to comply within 45 days — which can result in criminal record exposure and fines for low-income individuals who experience delays due to illness, bureaucracy, or financial hardship, even when no fraud occurred.
FinancialPeopleRef: Sec. 1(8), (9); Sec. 2(2)Mandates that licensed dealers file reports on behalf of customers and collect fees, increasing operational costs and compliance burdens for small dealerships — especially in rural areas with limited staffing — without compensating state funding for system upgrades or staffing increases.
Business & EmploymentPeopleRef: Sec. 1(5), (3)(f); Sec. 2(4)Creates a new civil cause of action for individuals falsely named as buyers or sellers in reports of sale, but places the burden of proof and litigation costs on the wronged party — effectively requiring legal representation to clear one’s name, which may be inaccessible to low-income residents.
Rights & LibertiesLean peopleRef: Sec. 1(2), (3), (4); Sec. 2(4), (7)Requires DOL to submit quarterly reports to DOR listing vehicles with filed reports but no title transfer — adding administrative work for state staff but potentially reducing local government costs for handling misattributed abandoned vehicles. Net fiscal impact on local governments is uncertain and likely modest.
Local GovernmentRef: Sec. 1(4)(v), (6); Sec. 2(4)
Who Is Most Affected
Low-income vehicle owners are at highest risk of being held liable for abandoned vehicle costs due to delays in filing paperwork — especially if they lack access to electronic filing, transportation, or legal assistance. The bill’s strict deadlines and criminal penalties disproportionately impact this group.
Small, independent vehicle dealers face new compliance costs (e.g., filing reports, collecting fees, system upgrades) without state reimbursement. While the bill may reduce fraud-related disputes, the administrative burden falls heavily on mom-and-pop shops.
Wealthier or more tech-savvy vehicle owners benefit most from the electronic reporting system and liability protections — especially those who can file reports promptly and navigate the DOL system. The bill’s design favors those with reliable internet access and familiarity with government portals.
Law enforcement and local governments may see reduced costs for managing abandoned vehicles if timely reporting reduces misattribution — but only if the system functions as intended. Implementation challenges could offset savings.
Victims of vehicle title fraud (e.g., people falsely named as buyers) gain a new civil cause of action, but the requirement to pursue litigation limits access for those without legal resources — making this a partial win for consumer protection.