25 LC 39 4630 House Bill 551 By: Representatives Ridley of the 6 th , Corbett of the 174 th , Jasperse of the 11 th , Mathis of the 133 rd , and Jones of the 25 th A BILL TO BE ENTITLED AN ACT To amend Title 40 of the Official Code of Georgia Annotated, relating to motor vehicles and 1 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 authorize access to certain information with the State9 Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers10 for certain purposes; to revise a definition; to provide for notice and hearings; to amend Code11 Section 43-47-8 of the Official Code of Georgia Annotated, relating to license applications12 for used motor vehicle dealers and used motor vehicle parts dealers, prerequisites, license13 fees, renewal, training or test, supplemental licenses, bonds, insurance, suspension for14 conviction or false statement, and meetings, so as to provide for issuance or renewal of a15 license for certain used motor vehicle dealers; to amend Code Section 48-5C-1 of the Official16 Code of Georgia Annotated, relating to alternative ad valorem tax on motor vehicles, so as17 to provide for enhanced penalty for an owner of a passive entity that fails to pay alternative18 H. B. 551 - 1 - 25 LC 39 4630 ad valorem tax; to provide for a definition; to provide for an effective date; to provide for 19 related matters; to repeal conflicting laws; and for other purposes.20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:21 SECTION 1.22 Title 40 of the Official Code of Georgia Annotated, relating to motor vehicles and traffic, is23 amended by revising Code Section 40-2-8, relating to operation of unregistered vehicle or24 vehicle without current license plate, revalidation decal, or county decal and temporary25 operating permit issued by dealers of new or used motor vehicles, as follows:26 "40-2-8.27 (a) No person shall own, rent, lease, loan, or operate any vehicle required to be registered 28 pursuant to Code Section 40-2-20 upon a highway in this state without registering such29 vehicle. Any person who becomes a resident of this state shall register his or her vehicle30 within 30 days of becoming a resident. Each day that a vehicle is in violation of this Code31 section shall be deemed to be a separate and distinct offense. Any person convicted of such32 offense shall be guilty of a misdemeanor and punished by a fine of $100.00 for each33 violation. Any person owning or operating any vehicle described in Code Section 40-2-2034 on any public highway or street without complying with that Code section shall be guilty35 of a misdemeanor, provided that a person shall register his or her motor vehicle within 3036 days after becoming a resident of this state. Any person renting, leasing, or loaning any37 vehicle described in Code Section 40-2-20 which is being used on any public highway or38 street without complying with that Code section shall be guilty of a misdemeanor and, upon39 conviction thereof, shall be punished by a fine of $100.00 for each violation; and each day40 that such vehicle is operated in violation of Code Section 40-2-20 shall be deemed to be41 a separate and distinct offense.42 H. B. 551 - 2 - 25 LC 39 4630 (b)(1) It shall be unlawful and punishable as for a misdemeanor to operate any vehicle43 required to be registered in this state pursuant to Code Section 40-2-20 without a valid44 numbered license plate properly validated with a current revalidation decal, unless such45 operation is otherwise permitted under this chapter; and provided, further, that the46 purchaser of a new vehicle or a used vehicle from a dealer of new or used motor vehicles47 who displays a temporary operating permit issued as provided by paragraph (2) of this48 subsection Code Section 40-2-8.1 may operate such vehicle on the public highways and49 streets of this state without a current valid license plate during the period within which50 the purchaser is required by Code Section authorized by Code Sections 40-2-8.151 and 40-2-20. An owner acquiring a motor vehicle from an entity that is not a new or used52 vehicle dealer shall register such vehicle as provided for in Code Section 40-2-29 unless53 such vehicle is to be registered under the International Registration Plan pursuant to54 Article 3A of this chapter.55 (2)(A) Any dealer of new or used motor vehicles shall issue to the purchaser of a56 vehicle at the time of sale thereof, unless such vehicle is to be registered under the57 International Registration Plan, a temporary operating permit as provided for by58 department rules or regulations which may bear the dealer's name and location and shall59 bear an expiration date 45 days from the date of purchase. The expiration date of such60 a temporary operating permit may be revised and extended by the county tag agent61 upon application by the dealer, the purchaser, or the transferee if an extension of the62 purchaser's initial registration period has been granted as provided by Code63 Section 40-2-20. Such temporary operating permit shall not resemble a license plate64 issued by this state and shall be issued without charge or fee. The requirements of this65 paragraph shall not apply to a dealer whose primary business is the sale of salvage66 motor vehicles and other vehicles on which total loss claims have been paid by insurers.67 (B) All temporary operating permits issued by dealers to purchasers of vehicles shall68 be of a standard design prescribed by regulation promulgated by the department. The69 H. B. 551 - 3 - 25 LC 39 4630 department may provide by rule or regulation for the sale and distribution of such70 temporary operating permits by third parties in accordance with paragraph (3) of this71 subsection.72 (3) All sellers and distributors of temporary operating permits shall maintain an73 inventory record of temporary operating permits by number and name of the dealer.74 (4)(2) The purchaser and operator of a vehicle shall not be subject to the penalties set75 forth in this Code section during the period allowed for the registration of such vehicle. 76 If the owner of such vehicle presents evidence that such owner has properly applied for77 the registration of such vehicle, but that the license plate or revalidation decal has not78 been delivered to such owner, then the owner shall not be subject to the penalties79 enumerated in this subsection.80 (c) It shall be unlawful and punishable as for a misdemeanor to operate any vehicle81 required to be registered in the State of Georgia this state without a valid county decal82 designating the county where the vehicle was last registered, unless such operation is83 otherwise permitted under this chapter. Any person convicted of such offense shall be84 punished by a fine of $25.00 for a first offense and $100.00 for a second or subsequent85 such offense. However, a A county name decal shall not be required if there is no space86 provided for a county name decal on the current license plate. Any person convicted of a87 violation of this subsection shall be subject to a fine not to exceed $25.00 if that person88 shows to the court having jurisdiction of the offense that the proper revalidation decal had89 been obtained prior to the time of the offense.90 (d) No violation of this Code section shall have occurred upon presentation of evidence91 that the owner had properly applied for the registration of such vehicle, but that the license92 plate or revalidation decal had not been delivered to such owner at the time the uniform93 traffic citation was issued.94 (e) The commissioner is authorized to promulgate rules and regulations necessary to95 effectuate the provisions of this Code section."96 H. B. 551 - 4 - 25 LC 39 4630 SECTION 2. 97 Said title is further amended by revising Code Section 40-2-8.1, relating to operation of98 vehicle without revalidation decal on license plate, as follows:99 "40-2-8.1.100 Notwithstanding Code Section 40-2-8 or any other provision of law, a person who operates 101 a vehicle which is required to be registered in this state and which has attached to the rear102 thereof a valid numbered license plate without having the required revalidation decal103 affixed upon that plate, which person is otherwise guilty of a misdemeanor for not having104 such decal affixed to the plate, shall be subject for that offense only to a fine not to exceed105 $25.00 if that person shows to the court having jurisdiction of the offense that the proper106 revalidation decal had been obtained prior to the time of the offense.107 (a) Any dealer of new or used motor vehicles shall issue a temporary operating permit108 without charge or fee to the purchaser of a vehicle at the time of sale thereof, unless such109 vehicle is to be registered under the International Registration Plan or such dealer is one110 whose primary business is the sale of salvage motor vehicles and other vehicles on which111 total loss claims have been paid by insurers. Such temporary operating permit shall be of112 a standard design prescribed the department; provided, however, that such permit shall not113 resemble a license plate issued by this state. A temporary operating permit may bear the114 name of the dealer and location and shall include an expiration date which shall be 45 days115 from the date of purchase. The expiration date of a temporary operating permit may be116 revised and extended by the county tag agent upon application by the dealer, purchaser, or117 transferee if an extension of the purchaser's initial registration period has been granted as118 provided by Code Section 40-2-20.119 (b)(1) The department may provide by rule or regulation for the sale and distribution of120 temporary operating permits to dealers by third parties through the development and121 maintenance of an electronic temporary operating permit issuance system and establish122 standards for distribution and issuance of such permits. The department may further123 H. B. 551 - 5 - 25 LC 39 4630 provide by rule or regulation for standards for authorized access to an electronic124 temporary operating permit issuance system, which may include, but shall not be limited125 to, required criminal background checks for any user of the system. Any third party126 authorized to sell and distribute temporary operating permits shall maintain an inventory127 record of such permits by number and name of the dealer.128 (2)(A) The department shall be authorized to suspend access to the electronic129 temporary operating permit issuance system established pursuant to this Code section130 for any dealer found to have issued temporary operating permits for a vehicle which has131 not been sold or intended to be registered or otherwise violated requirements for132 issuance of such permits established by rule or regulation of the department after133 issuance of notice of such violation by electronic means and opportunity for informal134 review as set forth in this subparagraph. Any dealer who has received notice pursuant135 to this subsection of an alleged violation and for whom the department intends to136 suspend access to the electronic temporary operating permit issuance system may137 request an informal review of the allegations with the department. The method for138 making such request shall be developed by the department and may be by electronic139 means. Upon receipt of such request for informal review, the department shall, within140 ten business days, schedule an informal conference with such dealer to review the141 suspected violations. Proceedings under this subparagraph shall not be governed by142 any formal procedural requirements and may be conducted in such manner as the143 department may establish by rule or regulation. The department shall consider the144 historical use of the electronic temporary operating permit issuance system by the145 dealer under consideration for access suspension, together with other pertinent146 information which may be available, and shall render a decision regarding access to the147 electronic temporary operating permit issuance system within seven business days of148 the informal conference. Upon a finding that such dealer violated the requirements of149 this Code section or rules and regulations of the department, the department shall be150 H. B. 551 - 6 - 25 LC 39 4630 authorized to impose fines or fees as provided by law. The department shall not be151 authorized to suspend access to the temporary operating permit system unless the152 department finds a dealer to be substantially out of compliance with the requirements153 of this Code section or the rules and regulations of the department and such dealer has154 failed to produce satisfactory evidence of extenuating circumstances to justify such155 noncompliance.156 (B) If the department suspends a dealer's access to the electronic temporary operating157 permit issuance system established pursuant to this Code section after an informal158 review held pursuant to subparagraph (A) of this paragraph, the suspended dealer shall159 have the right to a formal hearing to review the suspension pursuant to Code Section160 40-3-6. Such hearing shall be held within 30 days of the department's decision to161 suspend the dealer's access to the electronic termporary operating permit issuance162 system and shall be conducted in accordance with Chapter 13 of Title 50, the 'Georgia163 Administrative Procedure Act.' At such hearing, the department may present evidence164 of any instances in which the suspended dealer unlawfully issued temporary operating165 permits or issued fraudulent temporary operating permits. Upon a finding that the166 suspended dealer is in compliance with the requirements of this Code section and has167 issued temporary operating permits predominantly for bona fide motor vehicle sales,168 the department shall provide for the immediate restoration of access to the electronic169 temporary operating permit issuance system for such dealer but shall be authorized to170 impose fines or fees as provided by law for failure to comply with the requirements of171 this chapter. Upon a finding that the suspended dealer violated the requirements of this172 Code section or rules and regulations of the department, the department shall be173 authorized to extend the term of suspension for a period of up to 24 months. Upon a174 finding that a dealer has unlawfully issued temporary operating permits in violation of175 this chapter or rules and regulations of the department, the department shall further be176 authorized to issue a civil monetary penalty in an amount no greater than $100.00 per177 H. B. 551 - 7 - 25 LC 39 4630 violation, suspend or revoke the registration issued to a dealer pursuant to Code Section178 40-2-39, and suspend, confiscate, or limit issuance of any dealer plates issued pursuant179 to Code Section 40-2-38 for a period of up to 24 months. The department shall comply180 with Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act,' in relation to181 the expedited review provided for in this subparagraph and the suspended dealer shall182 have the right to appeal any decision of the department in accordance with such chapter.183 (c) The commissioner is authorized to promulgate rules and regulations necessary to184 effectuate the provisions of this Code section."185 SECTION 3.186 Said title is further amended in Code Section 40-2-33, relating to issuance of license plates187 and decals, transfer of registration to a digital license plate, compensation of tag agents, and188 required identification, by revising paragraph (3) of subsection (a) as follows: 189 "(3) At the time of initial application for registration or at any time during the registration190 period, a vehicle owner may file with the county tag agent, on a form or electronic form191 prescribed by the commissioner, a request to have a vehicle license plate duplicated on192 a digital license plate purchased from a digital license plate provider. Such request to the193 county tag agent shall include all applicable registration fees. Upon approving the194 application provided in this paragraph, the commissioner or county tag agent shall furnish195 the digital license plate provider with the appropriate licensing information to be196 displayed upon the digital license plate. In accordance with Code Section 40-2-8197 40-2-8.1, a 45 day temporary operating permit shall be issued by the commissioner or198 county tag agent to an applicant for a digital license plate until such license plate is199 received by the applicant."200 H. B. 551 - 8 - 25 LC 39 4630 SECTION 4. 201 Said title is further amended in Code Section 40-2-38, relating to registration and licensing202 of manufacturers, distributors, and dealers and issuance of manufacturer, manufacturer203 headquarters, distributor, and dealer plates, by revising paragraph (1) of subsection (a) and204 subsections (c) through (f) as follows:205 "(a)(1) Manufacturers, manufacturer headquarters, distributors, and dealers engaged in206 the manufacture, sale, or leasing of vehicles required to be registered under Code Section207 40-2-20 shall register by electronic means with the commissioner, making application for208 a distinguishing dealer's number, specifying the name and make of motor vehicle, tractor,209 or trailer manufactured, sold, or leased by them, upon forms prepared by the210 commissioner for such purposes, and pay therefor a fee of $62.00, which shall211 accompany such application. Upon payment of such fee by a dealer an applicant, the212 commissioner shall furnish to the dealer one master number plate to expire each year in213 accordance with subsection (f) of this Code section, to be known as a dealer's number and214 to based upon the type of master number plate issued. Each additional plate issued215 pursuant to this Code section shall require payment of a $12.00 fee. Each master number216 plate and any additional plates issued pursuant to this Code section shall be distinguished217 from the number license plates provided for in this chapter by different and distinguishing218 colors to be determined by the commissioner. The dealer plate for a franchise motor219 vehicle dealer shall be distinguishable from the dealer plate for a used car dealer and from220 the dealer plate for a motor vehicle wholesaler. Except as otherwise authorized by this221 Code section, a dealer's master number plate or additional plates issued pursuant to this222 Code section shall be A dealer's number plate is for the purpose of demonstrating or223 transporting the dealer's vehicles or trailers for sale or lease. Persons engaged in the224 business of transporting vehicles for a dealer under a vehicle's own power shall be225 permitted to use such dealer's plate for the purpose of transporting a vehicle."226 "(c) This Code section shall not apply in any manner to mopeds.227 H. B. 551 - 9 - 25 LC 39 4630 (d)(c) The license plates issued pursuant to this Code section shall be revoked and228 confiscated upon a determination after a hearing that such dealer, distributor, manufacturer,229 or manufacturer headquarters has unlawfully used such license plates in violation of this230 Code section.231 (e)(d) If a license plate issued pursuant to this Code section is lost or stolen, the dealer,232 manufacturer, distributor, manufacturer headquarters, or other party to whom the license233 plate was issued must shall immediately report the lost or stolen plate to local law234 enforcement agencies. If a replacement license plate is sought, the dealer, manufacturer,235 distributor, manufacturer headquarters, or other party to whom the license plate was issued236 shall file a notarized affidavit with the department requesting a replacement plate. Such237 affidavit shall certify under penalty of perjury that the license plate has been lost or stolen238 and that the loss has been reported to a local law enforcement agency.239 (f)(1)(e) Except as otherwise provided for in this Code section, the The expiration of a240 license plate issued pursuant to this Code section shall be the last day of the registration241 period as provided in division (a)(1)(A)(ii) of Code Section 40-2-21, except that for the242 purposes of this subsection, the registration period shall be determined by the first letter of243 the legal name of the business listed on the application for registration or renewal of244 registration. An application for renewal of registration shall not be submitted earlier than245 90 days prior to the last day of the registration period. A penalty of 25 percent of the total246 registration fees due shall be assessed any person registering pursuant to this Code section247 who, prior to the expiration of such person's registration period, fails to apply for renewal248 or if having applied fails to pay the required fees.249 (2) A transition period shall commence on October 1, 2007, and conclude on December250 31, 2007, for all existing registrations and any new registration applications presented251 prior to January 1, 2008. On or after January 1, 2008, new applications for registration252 shall be submitted and remain valid until the expiration of such registration as specified253 in paragraph (1) of this subsection."254 H. B. 551 - 10 - 25 LC 39 4630 SECTION 5. 255 Said title is further amended in Code Section 40-2-39, relating to registration and licensing256 of new motor vehicle dealers, temporary site permits, administrative fines, and penalty, by257 revising paragraph (3) of subsection (a) as follows:258 "(3) 'Established place of business' means a permanent salesroom or sales office of a new259 motor vehicle dealer, which permanent salesroom or sales office is located in a permanent260 building on an open lot and which is marked by an appropriate sign and at which a261 permanent business of bartering, trading, or selling of at least five new motor vehicles is262 carried on in good faith at any one time."263 SECTION 6.264 Said title is further amended in Code Section 40-2-130, relating to records of certificates of265 registration, by revising subsection (c) as follows:266 "(c) The motor vehicle registration records which the commissioner is required to maintain267 under this Code section or any other provision are exempt from the provisions of any law268 of this state requiring that such records be open for public inspection; provided, however,269 that, subject to subsection (d) of this Code section, the records may be disclosed for use as270 provided in the federal Driver's Privacy Protection Act of 1994, 18 U.S.C. Chapter 123, and271 by the following:272 (1) Any licensed dealer of new or used motor vehicles;273 (2) Any tax collector, tax receiver, or tax commissioner;274 (3) The director of the Environmental Protection Division of the Department of Natural275 Resources or his or her designee;276 (4) Any private person who has met the requirements of Code Section 40-2-25, provided277 that the information shall be used for the sole purpose of effectuating the registration or278 renewal of motor vehicles by electronic or similar means and that the private person279 requesting the information has entered into an agreement to provide electronic services280 H. B. 551 - 11 - 25 LC 39 4630 to the commissioner or a county tag agent; provided, further, that the information made 281 available pursuant to this paragraph for such purpose shall be limited to the vehicle282 identification number, the license tag number, the date of expiration of registration, and283 the amount of tax owed; and 284 (5) A person or entity authorized by the commissioner for use in providing notice to the285 owners of towed or impounded vehicles; and286 (6) The board established pursuant to Chapter 47 of Title 43 for use in carrying out its287 functions."288 SECTION 7.289 Said title is further amended in Code Section 40-3-23, relating to issuance of certificate of290 title, maintenance of record of certificates issued, public inspection, furnishing records for291 fee, and electronic format, by revising subsection (d) as follows:292 "(d) The motor vehicle records which the commissioner or the commissioner's duly293 authorized county tag agent is required to maintain under this Code section or any other294 provision are exempt from the provisions of any law of this state requiring that such295 records be open for public inspection; provided, however, that, subject to subsection (f) of296 this Code section, the records may be disclosed for use as provided in the federal Driver's297 Privacy Protection Act of 1994, 18 U.S.C. Chapter 123, and by the following:298 (1) Any licensed dealer of new or used motor vehicles;299 (2) Any tax collector, tax receiver, or tax commissioner; and300 (3) A person or entity authorized by the commissioner for use in providing notice to the301 owners of towed or impounded vehicles; and302 (4) The board established pursuant to Chapter 47 of Title 43 for carrying out its303 functions."304 H. B. 551 - 12 - 25 LC 39 4630 SECTION 8. 305 Said title is further amended in Code Section 40-3-33, relating to transfer of vehicle to or306 from dealer, records to be kept by dealers, electronic filing, and application for title where307 dealer located, by revising subsections (a) and (b) and by adding new subsections to read as308 follows:309 "(a)(1) Except as provided in paragraph (2) of this subsection, a dealer who buys a310 vehicle and holds it for resale need not apply to the commissioner for a new certificate311 of title but may retain the delivered certificate delivered to him. Upon transferring the312 vehicle to another person other than by the creation of a security interest, such dealer313 shall promptly execute the assignment and warranty of title by a dealer. Such assignment314 and warranty shall show the names and addresses of the transferee and any holder of a315 security interest created or reserved at the time of the resale and the date of his the316 security agreement, in the spaces provided therefor on the certificate or as the317 commissioner prescribes. Transfers of vehicles under this Code section shall otherwise318 conform with Code Section 40-3-32. A dealer selling a previously registered vehicle for319 which under this chapter need not have a certificate of title is not required under this320 chapter need not furnish a purchaser of such a vehicle a certificate of title. After a321 previously registered vehicle has been brought under the terms of this chapter, a dealer,322 when selling that vehicle, shall conform to all provisions of this chapter.323 (2)(A) As used in this paragraph, the term 'franchise dealer' means a dealer who under324 a contract or franchise agreement with a manufacturer, distributor, wholesaler, or325 importer is authorized to sell new motor vehicles of or for such manufacturer,326 distributor, wholesaler, or importer and who is authorized to use trademarks or service327 marks associated with one or more makes of motor vehicles in connection with such328 sales.329 (B) A dealer who is not a franchise dealer who acquires a vehicle for which the original330 certificate of title has not been issued and who holds such vehicle for resale shall not331 H. B. 551 - 13 - 25 LC 39 4630 be exempt from the requirement to obtain a certificate of title in such dealer's name as 332 provided in paragraph (1) of this subsection. Such dealer shall, as provided in Code333 Section 40-3-32, obtain a certificate of title in such dealer's name prior to selling or334 otherwise transferring said vehicle to any other person or dealer.335 (b) Every dealer shall maintain a record, in the form the commissioner prescribes, of every336 vehicle bought, sold, or exchanged by him, or received by him for sale or exchange. Such337 record shall be kept for three years and shall be open to inspection by a representative of338 the commissioner during reasonable business hours. The information contained in records339 maintained by a dealer pursuant to this subsection shall be an accurate representation of the340 transaction, and no alternative versions of records shall be produced for a purchaser with341 information which differs from that contained in records maintained for inspection by the342 department."343 "(f) The department shall be authorized to assess a civil penalty against a dealer of up to344 $500.00 for each sales transaction conducted in violation of subsection (b) of this Code345 section.346 (g) The department is authorized to promulgate rules and regulations necessary to347 effectuate the provisions of this Code section."348 SECTION 9.349 Code Section 43-47-8 of the Official Code of Georgia Annotated, relating to license350 applications for used motor vehicle dealers and used motor vehicle parts dealers,351 prerequisites, license fees, renewal, training or test, supplemental licenses, bonds, insurance,352 suspension for conviction or false statement, and meetings, is amended by revising353 subsection (b) as follows:354 "(b) A division under this chapter shall not issue or renew any license unless the applicant355 or holder thereof shall show that he or she maintains an established place of business as356 defined in Code Section 43-47-2. Any used motor vehicle dealer other than a motor357 H. B. 551 - 14 - 25 LC 39 4630 vehicle broker shall demonstrate that such established place of business has five or more358 used motor vehicles on display for purchase or exchange."359 SECTION 10.360 Code Section 48-5C-1 of the Official Code of Georgia Annotated, relating to alternative ad361 valorem tax on motor vehicles, is amended by adding a new paragraph to subsection (a), by362 revising paragraph (9) of subsection (d), and by adding a new subsection to read as follows:363 "(3.1) 'Passive entity' means a person, other than an individual, formed under the laws364 of another state that does not have an established place of business in this state, owns no365 real property, and conducts no trade or business other than the holding of assets for366 investment and income."367 "(9)(A) Any owner of any motor vehicle who fails to submit within 30 days of the date368 such owner is required by law to register such vehicle in this state an application for a369 first certificate of title under Code Section 40-3-21 or a certificate of title under Code370 Section 40-3-32 shall be required to pay a penalty in the amount of 10 percent of the371 state title ad valorem tax fees and 10 percent of the local title ad valorem tax fees372 required under this Code section and, if such state and local title ad valorem tax fees373 and the penalty are not paid within 60 days following the date such owner is required374 by law to register such vehicle, interest at the rate of 1 percent per month shall be375 imposed on the state and local title ad valorem tax fees due under this Code section,376 unless a temporary permit has been issued by the tax commissioner. The tax377 commissioner shall grant a temporary permit in the event the failure to timely apply for378 a first certificate of title is due to the failure of a lienholder to comply with Code379 Section 40-3-56, regarding release of a security interest or lien, and no penalty or380 interest shall be assessed. Such penalty and interest shall be in addition to the penalty381 and fee required under Code Section 40-3-21 or 40-3-32, as applicable.382 H. B. 551 - 15 - 25 LC 39 4630 (B) The penalties provided for in subparagraph (A) of this paragraph shall be double383 for any resident of this state who owns at least 50 percent of a passive entity that owns384 a motor vehicle that fails to submit within 60 days of the date such owner is required385 by law to register such vehicle in this state an application for a first certificate of title386 under Code Section 40-3-21 or a certificate of title under Code Section 40-3-32 and387 register such vehicle."388 "(h) The commissioner shall be authorized in his or her sole discretion to share information389 obtained for purposes of this Code section with the board established pursuant to390 Chapter 47 of Title 43. Any confidential information furnished pursuant to this Code391 section shall retain its character as confidential. Any person who divulges confidential392 information obtained pursuant to this Code section shall be subject to the same penalties393 as those provided for divulgence of information by employees of the department."394 SECTION 11.395 This Act shall become effective on January 1, 2026.396 SECTION 12.397 All laws and parts of laws in conflict with this Act are repealed.398 H. B. 551 - 16 -