24 LC 39 4289S
The House Committee on Motor Vehicles offers the following substitute to HB 1234:
A BILL TO BE ENTITLED
AN ACT
To amend Title 40 of the Official Code of Georgia Annotated, relating to motor vehicles and1
traffic, so as to provide for conditions, procedures, and limitations for issuance of temporary2
operating permits for motor vehicles; to revise provisions relative to the operation of an3
unregistered motor vehicle or vehicle without a current license plate, revalidation decal,4
county decal, or temporary operating permit; to authorize the development and maintenance5
by third parties of an electronic temporary operating permit issuance system for issuance of6
temporary operating permits; to provide for utilization of such system by dealers for issuance7
of temporary operating permits; to provide for the suspension of access to such system by8
the department for certain violations; to provide for notice and hearings; to amend Code9
Section 48-5C-1 of the Official Code of Georgia Annotated, relating to alternative ad10
valorem tax on motor vehicles, so as to provide for enhanced penalty for an owner of a11
passive entity that fails to pay alternative ad valorem tax; to provide for a definition; to12
provide for an effective date; to provide for related matters; to repeal conflicting laws; and13
for other purposes.14
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:15
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SECTION 1.16
Title 40 of the Official Code of Georgia Annotated, relating to motor vehicles and traffic, is17
amended by revising Code Section 40-2-8, relating to operation of unregistered vehicle or18
vehicle without current license plate, revalidation decal, or county decal and temporary19
operating permit issued by dealers of new or used motor vehicles, as follows:20
"40-2-8.21
(a) No person shall own, rent, lease, loan, or operate any vehicle required to be registered22
pursuant to Code Section 40-2-20 upon a highway in this state without registering such23
vehicle. Any person who becomes a resident of this state shall register his or her vehicle24
within 30 days of becoming a resident. Each day that a vehicle is in violation of this Code25
section shall be deemed to be a separate and distinct offense. Any person convicted of such26
offense shall be guilty of a misdemeanor and punished by a fine of $100.00 for each27
violation. Any person owning or operating any vehicle described in Code Section 40-2-2028
on any public highway or street without complying with that Code section shall be guilty29
of a misdemeanor, provided that a person shall register his or her motor vehicle within 3030
days after becoming a resident of this state. Any person renting, leasing, or loaning any31
vehicle described in Code Section 40-2-20 which is being used on any public highway or32
street without complying with that Code section shall be guilty of a misdemeanor and, upon33
conviction thereof, shall be punished by a fine of $100.00 for each violation; and each day34
that such vehicle is operated in violation of Code Section 40-2-20 shall be deemed to be35
a separate and distinct offense.36
(b)(1) It shall be unlawful and punishable as for a misdemeanor to operate any vehicle37
required to be registered in this state pursuant to Code Section 40-2-20 without a valid38
numbered license plate properly validated with a current revalidation decal, unless such39
operation is otherwise permitted under this chapter; and provided, further, that the40
purchaser of a new vehicle or a used vehicle from a dealer of new or used motor vehicles41
who displays a temporary operating permit issued as provided by paragraph (2) of this42
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subsection Code Section 40-2-8.1 may operate such vehicle on the public highways and43
streets of this state without a current valid license plate during the period within which44
the purchaser is required by Code Section authorized by Code Sections 40-2-8.1 and45
40-2-20. An owner acquiring a motor vehicle from an entity that is not a new or used46
vehicle dealer shall register such vehicle as provided for in Code Section 40-2-29 unless47
such vehicle is to be registered under the International Registration Plan pursuant to48
Article 3A of this chapter.49
(2)(A) Any dealer of new or used motor vehicles shall issue to the purchaser of a50
vehicle at the time of sale thereof, unless such vehicle is to be registered under the51
International Registration Plan, a temporary operating permit as provided for by52
department rules or regulations which may bear the dealer's name and location and shall53
bear an expiration date 45 days from the date of purchase. The expiration date of such54
a temporary operating permit may be revised and extended by the county tag agent55
upon application by the dealer, the purchaser, or the transferee if an extension of the56
purchaser's initial registration period has been granted as provided by Code57
Section 40-2-20. Such temporary operating permit shall not resemble a license plate58
issued by this state and shall be issued without charge or fee. The requirements of this59
paragraph shall not apply to a dealer whose primary business is the sale of salvage60
motor vehicles and other vehicles on which total loss claims have been paid by insurers.61
(B) All temporary operating permits issued by dealers to purchasers of vehicles shall62
be of a standard design prescribed by regulation promulgated by the department. The63
department may provide by rule or regulation for the sale and distribution of such64
temporary operating permits by third parties in accordance with paragraph (3) of this65
subsection.66
(3) All sellers and distributors of temporary operating permits shall maintain an67
inventory record of temporary operating permits by number and name of the dealer.68
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(4)(2) The purchaser and operator of a vehicle shall not be subject to the penalties set69
forth in this Code section during the period allowed for the registration of such vehicle. 70
If the owner of such vehicle presents evidence that such owner has properly applied for71
the registration of such vehicle, but that the license plate or revalidation decal has not72
been delivered to such owner, then the owner shall not be subject to the penalties73
enumerated in this subsection.74
(c) It shall be unlawful and punishable as for a misdemeanor to operate any vehicle75
required to be registered in the State of Georgia this state without a valid county decal76
designating the county where the vehicle was last registered, unless such operation is77
otherwise permitted under this chapter. Any person convicted of such offense shall be78
punished by a fine of $25.00 for a first offense and $100.00 for a second or subsequent79
such offense. However, a A county name decal shall not be required if there is no space80
provided for a county name decal on the current license plate. Any person convicted of a81
violation of this subsection shall be subject to a fine not to exceed $25.00 if that person82
shows to the court having jurisdiction of the offense that the proper revalidation decal had83
been obtained prior to the time of the offense.84
(d) No violation of this Code section shall have occurred upon presentation of evidence85
that the owner had properly applied for the registration of such vehicle, but that the license86
plate or revalidation decal had not been delivered to such owner at the time the uniform87
traffic citation was issued.88
(e) The commissioner is authorized to promulgate rules and regulations necessary to89
effectuate the provisions of this Code section."90
SECTION 2.91
Said title is further amended by revising Code Section 40-2-8.1, relating to operation of92
vehicle without revalidation decal on license plate, as follows:93
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"40-2-8.1.94
Notwithstanding Code Section 40-2-8 or any other provision of law, a person who operates95
a vehicle which is required to be registered in this state and which has attached to the rear96
thereof a valid numbered license plate without having the required revalidation decal97
affixed upon that plate, which person is otherwise guilty of a misdemeanor for not having98
such decal affixed to the plate, shall be subject for that offense only to a fine not to exceed99
$25.00 if that person shows to the court having jurisdiction of the offense that the proper100
revalidation decal had been obtained prior to the time of the offense.101
(a) Any dealer of new or used motor vehicles shall issue a temporary operating permit102
without charge or fee to the purchaser of a vehicle at the time of sale thereof, unless such103
vehicle is to be registered under the International Registration Plan or such dealer is one104
whose primary business is the sale of salvage motor vehicles and other vehicles on which105
total loss claims have been paid by insurers. Such temporary operating permit shall be of106
a standard design prescribed the department; provided, however, that such permit shall not107
resemble a license plate issued by this state. A temporary operating permit may bear the108
name of the dealer and location and shall include an expiration date which shall be 45 days109
from the date of purchase. The expiration date of a temporary operating permit may be110
revised and extended by the county tag agent upon application by the dealer, purchaser, or111
transferee if an extension of the purchaser's initial registration period has been granted as112
provided by Code Section 40-2-20.113
(b)(1) The department may provide by rule or regulation for the sale and distribution of114
temporary operating permits to dealers by third parties through the development and115
maintenance of an electronic temporary operating permit issuance system and establish116
standards for distribution and issuance of such permits. The department may further117
provide by rule or regulation for standards for authorized access to an electronic118
temporary operating permit issuance system, which may include, but shall not be limited119
to, required criminal background checks for any user of the system. Any third party120
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authorized to distribute and issue temporary operating permits shall maintain an inventory121
record of such permits by number and name of the dealer.122
(2)(A) The department shall be authorized to suspend access to the electronic123
temporary operating permit issuance system established pursuant to this Code section124
for any dealer found to have issued temporary operating permits for a vehicle which has125
not been sold or intended to be registered or otherwise violated requirements for126
issuance of such permits established by rule or regulation of the department after127
issuance of notice of such violation by electronic means and opportunity for informal128
review as set forth in this subparagraph. Any dealer who has received notice pursuant129
to this subsection of an alleged violation and for whom the department intends to130
suspend access to the electronic temporary operating permit issuance system may131
request an informal review of the allegations with the department. The method for132
making such request shall be developed by the department and may be by electronic133
means. Upon receipt of such request for informal review, the department shall, within134
ten business days, schedule an informal conference with such dealer to review the135
suspected violations. Proceedings under this subparagraph shall not be governed by136
any formal procedural requirements and may be conducted in such manner as the137
department may establish by rule or regulation. The department shall consider the138
historical use of the electronic temporary operating permit issuance system by the139
dealer under consideration for access suspension, together with other pertinent140
information which may be available, and shall render a decision regarding access to the141
electronic temporary operating permit issuance system within seven business days of142
the informal conference. Upon a finding that such dealer violated the requirements of143
this Code section or rules and regulations of the department, the department shall144
suspend access to the electronic temporary operating permit issuance system for a145
period of no longer than six months and notify such dealer of such decision.146
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(B) If the department suspends a dealer's access to the electronic temporary operating147
permit issuance system established pursuant to this Code section after an informal148
review held pursuant to subparagraph (A) of this paragraph, the suspended dealer shall149
have the right to request a formal hearing to review the suspension pursuant to Code150
Section 40-3-6. At such hearing, the department may present evidence of any instances151
in which the suspended dealer unlawfully issued temporary operating permits or issued152
fraudulent temporary operating permits. Upon a finding that the suspended dealer is153
in compliance with the requirements of this Code section and only issued temporary154
operating permits for bona fide motor vehicle sales, the department shall provide for the155
immediate restoration of access to the electronic temporary operating permit issuance156
system for such dealer. Upon a finding that the suspended dealer violated the157
requirements of this Code section or rules and regulations of the department, the158
department shall be authorized to extend the term of suspension for a period of up to159
24 months. Upon a finding that a dealer has unlawfully issued temporary operating160
permits in violation of this chapter or rules and regulations of the department, the161
department shall further be authorized to issue a civil monetary penalty in an amount162
no greater than $100.00 per violation, suspend or revoke the registration issued to a163
dealer pursuant to Code Section 40-2-39, and suspend, confiscate, or limit issuance of164
any dealer plates issued pursuant to Code Section 40-2-38 for a period of up to 24165
months. The department shall comply with Chapter 13 of Title 50, the 'Georgia166
Administrative Procedure Act,' in relation to the hearing provided for in this167
subparagraph and the suspended dealer shall have the right to appeal any decision of168
the department in accordance with such chapter.169
(c) The commissioner is authorized to promulgate rules and regulations necessary to170
effectuate the provisions of this Code section."171
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SECTION 3.172
Said title is further amended in Code Section 40-2-33, relating to issuance of license plates173
and decals, transfer of registration to a digital license plate, compensation of tag agents, and174
required identification, by revising paragraph (3) of subsection (a) as follows: 175
"(3) At the time of initial application for registration or at any time during the registration176
period, a vehicle owner may file with the county tag agent, on a form or electronic form177
prescribed by the commissioner, a request to have a vehicle license plate duplicated on178
a digital license plate purchased from a digital license plate provider. Such request to the179
county tag agent shall include all applicable registration fees. Upon approving the180
application provided in this paragraph, the commissioner or county tag agent shall furnish181
the digital license plate provider with the appropriate licensing information to be182
displayed upon the digital license plate. In accordance with Code Section 40-2-8183
40-2-8.1, a 45 day temporary operating permit shall be issued by the commissioner or184
county tag agent to an applicant for a digital license plate until such license plate is185
received by the applicant."186
SECTION 4.187
Said title is further amended in Code Section 40-2-38, relating to registration and licensing188
of manufacturers, distributors, and dealers and issuance of manufacturer, manufacturer189
headquarters, distributor, and dealer plates, by revising paragraph (1) of subsection (a) and190
subsections (c) through (f) as follows:191
"(a)(1) Manufacturers, manufacturer headquarters, distributors, and dealers engaged in192
the manufacture, sale, or leasing of vehicles required to be registered under Code Section193
40-2-20 shall register by electronic means with the commissioner, making application for194
a distinguishing dealer's number, specifying the name and make of motor vehicle, tractor,195
or trailer manufactured, sold, or leased by them, upon forms prepared by the196
commissioner for such purposes, and pay therefor a fee of $62.00, which shall197
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accompany such application. Upon payment of such fee by a dealer an applicant, the198
commissioner shall furnish to the dealer one master number plate to expire each year in199
accordance with subsection (f) of this Code section, to be known as a dealer's number and200
to based upon the type of master number plate issued. Each additional plate issued201
pursuant to this Code section shall require payment of a $12.00 fee. Each master number202
plate and any additional plates issued pursuant to this Code section shall be distinguished203
from the number license plates provided for in this chapter by different and distinguishing204
colors to be determined by the commissioner. The dealer plate for a franchise motor205
vehicle dealer shall be distinguishable from the dealer plate for a used car dealer and from206
the dealer plate for a motor vehicle wholesaler. Except as otherwise authorized by this207
Code section, any master number plate or additional plates issued pursuant to this Code208
section shall be for A dealer's number plate is the purpose of demonstrating or209
transporting dealer's vehicles or trailers for sale or lease. Persons engaged in the business210
of transporting vehicles for a dealer under a vehicle's own power shall be permitted to use211
such dealer's plate for the purpose of transporting a vehicle."212
"(c) This Code section shall not apply in any manner to mopeds as such term is defined in213
Code Section 40-1-1.214
(d) The license plates issued pursuant to this Code section shall be revoked and confiscated215
upon a determination after a hearing that such dealer, distributor, manufacturer, or216
manufacturer headquarters has unlawfully used such license plates in violation of this Code217
section.218
(e)(d) If a license plate issued pursuant to this Code section is lost or stolen, the dealer,219
manufacturer, distributor, manufacturer headquarters, or other party to whom the license220
plate was issued must shall immediately report the lost or stolen plate to local law221
enforcement agencies. If a replacement license plate is sought, the dealer, manufacturer,222
distributor, manufacturer headquarters, or other party to whom the license plate was issued223
shall file a notarized affidavit with the department requesting a replacement plate. Such224
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affidavit shall certify under penalty of perjury that the license plate has been lost or stolen225
and that the loss has been reported to a local law enforcement agency.226
(f)(1)(e) Except as otherwise provided for in this Code section, the The expiration of a227
license plate issued pursuant to this Code section shall be the last day of the registration228
period as provided in division (a)(1)(A)(ii) of Code Section 40-2-21, except that for the229
purposes of this subsection, the registration period shall be determined by the first letter of230
the legal name of the business listed on the application for registration or renewal of231
registration. An application for renewal of registration shall not be submitted earlier than232
90 days prior to the last day of the registration period. A penalty of 25 percent of the total233
registration fees due shall be assessed any person registering pursuant to this Code section234
who, prior to the expiration of such person's registration period, fails to apply for renewal235
or if having applied fails to pay the required fees.236
(2) A transition period shall commence on October 1, 2007, and conclude on December237
31, 2007, for all existing registrations and any new registration applications presented238
prior to January 1, 2008. On or after January 1, 2008, new applications for registration239
shall be submitted and remain valid until the expiration of such registration as specified240
in paragraph (1) of this subsection."241
SECTION 5.242
Said title is further amended in Code Section 40-3-33, relating to transfer of vehicle to or243
from dealer, records to be kept by dealers, electronic filing, and application for title where244
dealer located, by revising subsections (a) and (b) and adding new subsections to read as245
follows:246
"(a)(1) Except as provided in paragraph (2) of this subsection, a dealer who buys a247
vehicle and holds it for resale need not apply to the commissioner for a new certificate248
of title but may retain the delivered certificate delivered to him. Upon transferring the249
vehicle to another person other than by the creation of a security interest, such dealer250
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shall promptly execute the assignment and warranty of title by a dealer. Such assignment251
and warranty shall show the names and addresses of the transferee and any holder of a252
security interest created or reserved at the time of the resale and the date of his the253
security agreement, in the spaces provided therefor on the certificate or as the254
commissioner prescribes. Transfers of vehicles under this Code section shall otherwise255
conform with Code Section 40-3-32. A dealer selling a previously registered vehicle256
which under this chapter need not have for which a certificate of title is not required257
under this chapter need not furnish a purchaser of such a vehicle a certificate of title. 258
After a previously registered vehicle has been brought under the terms of this chapter, a259
dealer, when selling that vehicle, shall conform to all provisions of this chapter.260
(2)(A) As used in this paragraph, the term 'franchise dealer' means a dealer who under261
a contract or franchise agreement with a manufacturer, distributor, wholesaler, or262
importer is authorized to sell new motor vehicles of or for such manufacturer,263
distributor, wholesaler, or importer and who is authorized to use trademarks or service264
marks associated with one or more makes of motor vehicles in connection with such265
sales.266
(B) A dealer who is not a franchise dealer who acquires a vehicle for which the original267
certificate of title has not been issued and who holds such vehicle for resale shall not268
be exempt from the requirement to obtain a certificate of title in such dealer's name as269
provided in paragraph (1) of this subsection. Such dealer shall, as provided in Code270
Section 40-3-32, obtain a certificate of title in such dealer's name prior to selling or271
otherwise transferring said vehicle to any other person or dealer.272
(b) Every dealer shall maintain a record, in the form the commissioner prescribes, of every273
vehicle bought, sold, or exchanged by him, or received by him for sale or exchange. Such274
record shall be kept for three years and shall be open to inspection by a representative of275
the commissioner during reasonable business hours. The information contained in records276
maintained by a dealer pursuant to this subsection shall be an accurate representation of the277
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transaction, and no alternative versions of records shall be produced for a purchaser with278
information which differs from that contained in records maintained for inspection by the279
department."280
"(f) The department shall be authorized to assess a civil penalty against a dealer of up to281
$500.00 for each sales transaction conducted in violation of subsection (b) of this Code282
section.283
(g) The department is authorized to promulgate rules and regulations necessary to284
effectuate the provisions of this Code section."285
SECTION 6.286
Code Section 48-5C-1 of the Official Code of Georgia Annotated, relating to alternative ad287
valorem tax on motor vehicles, is amended by adding a new paragraph to subsection (a) and288
revising paragraph (9) of subsection (d) as follows:289
"(3.1) 'Passive entity' means a person, other than an individual, formed under the laws290
of another state that does not have an established place of business in this state, owns no291
real property, and conducts no trade or business other than the holding of assets for292
investment and income."293
"(9)(A) Any owner of any motor vehicle who fails to submit within 30 days of the date294
such owner is required by law to register such vehicle in this state an application for a295
first certificate of title under Code Section 40-3-21 or a certificate of title under Code296
Section 40-3-32 shall be required to pay a penalty in the amount of 10 percent of the297
state title ad valorem tax fees and 10 percent of the local title ad valorem tax fees298
required under this Code section and, if such state and local title ad valorem tax fees299
and the penalty are not paid within 60 days following the date such owner is required300
by law to register such vehicle, interest at the rate of 1 percent per month shall be301
imposed on the state and local title ad valorem tax fees due under this Code section,302
unless a temporary permit has been issued by the tax commissioner. The tax303
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commissioner shall grant a temporary permit in the event the failure to timely apply for304
a first certificate of title is due to the failure of a lienholder to comply with Code305
Section 40-3-56, regarding release of a security interest or lien, and no penalty or306
interest shall be assessed. Such penalty and interest shall be in addition to the penalty307
and fee required under Code Section 40-3-21 or 40-3-32, as applicable.308
(B) The penalties provided for in subparagraph (A) of this paragraph shall be double309
for any resident of this state who owns at least 50 percent of a passive entity that owns310
a motor vehicle that fails to submit within 60 days of the date such owner is required311
by law to register such vehicle in this state an application for a first certificate of title312
under Code Section 40-3-21 or a certificate of title under Code Section 40-3-32 and313
register such vehicle."314
SECTION 7.315
This Act shall become effective on January 1, 2025.316
SECTION 8.317
All laws and parts of laws in conflict with this Act are repealed.318
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