As Passed by the House

132nd General Assembly

Regular Session Sub. H. B. No. 297

2017-2018

A BILL

To amend sections 2131.12, 2131.13, 4519.55, and 4519.60 of the Revised Code to allow persons to establish a joint ownership with right of survivorship with respect to an all-purpose vehicle or off-highway motorcycle and to allow owners of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor who have joint ownership with right of survivorship to transfer title through a transfer-on-death designation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 2131.12, 2131.13, 4519.55, and 4519.60 of the Revised Code be amended to read as follows:

Sec. 2131.12. (A) As used in this section:

(1) "Motor vehicle" has the same meaning as in section 4505.01 of the Revised Code.

(2) "Joint ownership with right of survivorship" means a form of ownership of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor that is established pursuant to this section and pursuant to which the entire interest in the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor is held by two persons for their joint lives and thereafter by the survivor of them.

(3) "Watercraft" has the same meaning as in division (A) of section 1548.01 of the Revised Code.

(4) "All-purpose vehicle" has the same meaning as in section 4519.01 of the Revised Code.

(5) "Off-highway motorcycle" has the same meaning as in section 4519.01 of the Revised Code.

(B)(1) Any two persons may establish in accordance with this section joint ownership with right of survivorship in a motor vehicle ~~or in~~ , an all-purpose vehicle, an off-highway motorcycle, a watercraft, or an outboard motor for which a certificate of title is required under Chapter 1548., 4505., or 4519. of the Revised Code.

(2) If two persons wish to establish joint ownership with right of survivorship in a motor vehicle ~~or in~~ , an all-purpose vehicle, an off-highway motorcycle, a watercraft, or an outboard motor that is required to be titled under Chapter 1548., 4505., or 4519. of the Revised Code, they may make a joint application for a certificate of title under section 1548.07, 4505.06, or ~~1548.07~~ 4519.55 of the Revised Code, as applicable.

(C) If two persons have established in a certificate of title joint ownership with right of survivorship in a motor vehicle or , an all-purpose vehicle, an off-highway motorcycle, a watercraft, or an outboard motor that is required to be titled under Chapter 1548., 4505., or 4519. of the Revised Code, and if one of those persons dies, the interest of the deceased person in the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor shall pass to the survivor of them upon transfer of title to the motor vehicle or , all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor in accordance with section 1548.11, 4505.10, or ~~1548.11~~ 4519.60 of the Revised Code. The motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor shall not be considered an estate asset and shall not be included and stated in the estate inventory.

Sec. 2131.13. (A) As used in this section:

(1) "Designate or designation in beneficiary form" means to designate, or the designation of, a motor vehicle, an all-purpose vehicle, an off-highway motorcycle, a watercraft, or an outboard motor in a certificate of title that indicates the present owner of the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor and the intention of the present owner with respect to the transfer of ownership on the present owner's death by designating one or more persons as the beneficiary or beneficiaries who will become the owner or owners of the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor upon the death of the present owner.

(2) "Motor vehicle" has the same meaning as in section 4505.01 of the Revised Code.

(3) "Person" means an individual, a corporation, an organization, or other legal entity.

(4) "Transfer-on-death beneficiary or beneficiaries" means a person or persons specified in a certificate of title of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor who will become the owner or owners of the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor upon the death of the present owner of the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor.

(5) "Watercraft" has the same meaning as in section 1548.01 of the Revised Code.

(6) "Owner" includes the plural as well as the singular, as specified in section 1.43 of the Revised Code.

(7) "Joint ownership with right of survivorship" has the same meaning as in section 2131.12 of the Revised Code.

(8) "All-purpose vehicle" has the same meaning as in section 4519.01 of the Revised Code.

(9) "Off-highway motorcycle" has the same meaning as in section 4519.01 of the Revised Code.

(B)(1) An individual whose certificate of title of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor shows sole ownership by that individual may make an application for a certificate of title under section 1548.07 or , 4505.06, or 4519.55 of the Revised Code to designate that motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor in beneficiary form pursuant to this section.

(2) Individuals whose certificate of title of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor shows joint ownership with right of survivorship may jointly make an application for a certificate of title under section 1548.07, 4505.06, or 4519.55 of the Revised Code to designate that motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor in beneficiary form pursuant to this section.

(C)(1) A motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor is designated in beneficiary form if the certificate of title of the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor includes the name or names of the transfer-on-death beneficiary or beneficiaries.

(2) The designation of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor in beneficiary form is not required to be supported by consideration, and the certificate of title in which the designation is made is not required to be delivered to the transfer-on-death beneficiary or beneficiaries in order for the designation in beneficiary form to be effective.

(D) The designation of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor in beneficiary form may be shown in the certificate of title by the words "transfer-on-death" or the abbreviation "TOD" after the name of the owner of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor and before the name or names of the transfer-on-death beneficiary or beneficiaries.

(E) The designation of a transfer-on-death beneficiary or beneficiaries on a certificate of title has no effect on the ownership of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor until the death of the owner of the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor. The owner of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor may cancel or change the designation of a transfer-on-death beneficiary or beneficiaries on a certificate of title at any time without the consent of the transfer-on-death beneficiary or beneficiaries by making an application for a certificate of title under section 1548.07 or , 4505.06, or 4519.55 of the Revised Code.

(F)(1) Upon the death of the owner of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor designated in beneficiary form, the ownership of the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor shall pass to the transfer-on-death beneficiary or beneficiaries who survive the owner upon transfer of title to the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor in accordance with section 1548.11 or , 4505.10, or 4519.60 of the Revised Code. The transfer-on-death beneficiary or beneficiaries who survive the owner may apply for a certificate of title to the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor upon submitting proof of the death of the owner of the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor.

(2) If no transfer-on-death beneficiary or beneficiaries survive the owner of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor, the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor shall be included in the probate estate of the deceased owner.

(G)(1) Any transfer of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor to a transfer-on-death beneficiary or beneficiaries that results from a designation of the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor in beneficiary form is not testamentary.

(2) This section does not limit the rights of any creditor of the owner of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor against any transfer-on-death beneficiary or beneficiaries or other transferees of the motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft, or outboard motor under other laws of this state.

(H)(1) This section shall be known and may be cited as the "Transfer-on-Death of Motor Vehicle, All-Purpose Vehicle, Off-Highway Motorcycle, Watercraft, or Outboard Motor Statute."

(2) Divisions (A) to (H) of this section shall be liberally construed and applied to promote their underlying purposes and policy.

(3) Unless displaced by particular provisions of divisions (A) to (H) of this section, the principles of law and equity supplement the provisions of those divisions.

Sec. 4519.55. Application for a certificate of title for an off-highway motorcycle or all-purpose vehicle shall be made upon a form prescribed by the registrar of motor vehicles and shall be sworn to before a notary public or other officer empowered to administer oaths. The application shall be filed with the clerk of any court of common pleas. An application for a certificate of title may be filed electronically by any electronic means approved by the registrar in any county with the clerk of the court of common pleas of that county.

If an application for a certificate of title is filed electronically by an electronic dealer on behalf of the purchaser of an off-highway motorcycle or all-purpose vehicle, the clerk shall retain the completed electronic record to which the dealer converted the certificate of title application and other required documents. The registrar, after consultation with the attorney general, shall adopt rules that govern the location at which, and the manner in which, are stored the actual application and all other documents relating to the sale of an off-highway motorcycle or all-purpose vehicle when an electronic dealer files the application for a certificate of title electronically on behalf of the purchaser.

The application shall be accompanied by the fee prescribed in section 4519.59 of the Revised Code. The fee shall be retained by the clerk who issues the certificate of title and shall be distributed in accordance with that section. If a clerk of a court of common pleas, other than the clerk of the court of common pleas of an applicant's county of residence, issues a certificate of title to the applicant, the clerk shall transmit data related to the transaction to the automated title processing system.

If a certificate of title previously has been issued for an off-highway motorcycle or all-purpose vehicle, the application also shall be accompanied by the certificate of title duly assigned, unless otherwise provided in this chapter. If a certificate of title previously has not been issued for the off-highway motorcycle or all-purpose vehicle, the application, unless otherwise provided in this chapter, shall be accompanied by a manufacturer's or importer's certificate; by a sworn statement of ownership; or by a certificate of title, bill of sale, or other evidence of ownership required by law of another state from which the off-highway motorcycle or all-purpose vehicle was brought into this state. The registrar, in accordance with Chapter 119. of the Revised Code, shall prescribe the types of additional documentation sufficient to establish proof of ownership, including, but not limited to, receipts from the purchase of parts or components, photographs, and affidavits of other persons.

If the application is made by two persons regarding an off-highway motorcycle or an all-purpose vehicle in which they wish to establish joint ownership with right of survivorship, they may do so as provided in section 2131.12 of the Revised Code. If the applicant requests a designation of the off-highway motorcycle or all-purpose vehicle in beneficiary form so that upon the death of the owner of the off-highway motorcycle or all-purpose vehicle, ownership of the off-highway motorcycle or all-purpose vehicle will pass to a designated transfer-on-death beneficiary or beneficiaries, the applicant may do so as provided in section 2131.13 of the Revised Code. A person who establishes ownership of an off-highway motorcycle or an all-purpose vehicle that is transferable on death in accordance with section 2131.13 of the Revised Code may terminate that type of ownership or change the designation of the transfer-on-death beneficiary or beneficiaries by applying for a certificate of title pursuant to this section.

For purposes of the transfer of a certificate of title, if the clerk is satisfied that a secured party has duly discharged a lien notation but has not canceled the lien notation with a clerk, the clerk may cancel the lien notation on the automated title processing system and notify the clerk of the county of origin.

In the case of the sale of an off-highway motorcycle or all-purpose vehicle by a dealer to a general purchaser or user, the certificate of title shall be obtained in the name of the purchaser by the dealer upon application signed by the purchaser. In all other cases, the certificate shall be obtained by the purchaser. In all cases of transfer of an off-highway motorcycle or all-purpose vehicle, the application for certificate of title shall be filed within thirty days after the later of the date of purchase or assignment of ownership of the off-highway motorcycle or all-purpose vehicle. If the application for certificate of title is not filed within thirty days after the later of the date of purchase or assignment of ownership of the off-highway motorcycle or all-purpose vehicle, the clerk shall charge a late filing fee of five dollars in addition to the fee prescribed by section 4519.59 of the Revised Code. The clerk shall retain the entire amount of each late filing fee.

Except in the case of an off-highway motorcycle or all-purpose vehicle purchased prior to July 1, 1999, the clerk shall refuse to accept an application for certificate of title unless the applicant either tenders with the application payment of all taxes levied by or pursuant to Chapter 5739. or 5741. of the Revised Code based on the purchaser's county of residence, or submits either of the following:

(A) A receipt issued by the tax commissioner or a clerk of courts showing payment of the tax;

(B) An exemption certificate, in any form prescribed by the tax commissioner, that specifies why the purchase is not subject to the tax imposed by Chapter 5739. or 5741. of the Revised Code.

Payment of the tax shall be made in accordance with division (E) of section 4505.06 of the Revised Code and any rules issued by the tax commissioner. When a dealer submits payment of the tax to the clerk, the dealer shall retain any discount to which the dealer is entitled under section 5739.12 of the Revised Code. The clerk shall issue a receipt in the form prescribed by the tax commissioner to any applicant who tenders payment of the tax with the application for a certificate of title. If the application for a certificate of title is for an off-highway motorcycle or all-purpose vehicle purchased prior to July 1, 1999, the clerk shall accept the application without payment of the taxes levied by or pursuant to Chapter 5739. or 5741. of the Revised Code or presentation of either of the items listed in division (A) or (B) of this section.

For receiving and disbursing such taxes paid to the clerk by a resident of the clerk's county, the clerk may retain a poundage fee of one and one-hundredth per cent of the taxes collected, which shall be paid into the certificate of title administration fund created by section 325.33 of the Revised Code. The clerk shall not retain a poundage fee from payments of taxes by persons who do not reside in the clerk's county.

A clerk, however, may retain from the taxes paid to the clerk an amount equal to the poundage fees associated with certificates of title issued by other clerks of courts of common pleas to applicants who reside in the first clerk's county. The registrar, in consultation with the tax commissioner and the clerks of the courts of common pleas, shall develop a report from the automated title processing system that informs each clerk of the amount of the poundage fees that the clerk is permitted to retain from those taxes because of certificates of title issued by the clerks of other counties to applicants who reside in the first clerk's county.

In the case of casual sales of off-highway motorcycles or all-purpose vehicles that are subject to the tax imposed by Chapter 5739. or 5741. of the Revised Code, the purchase price for the purpose of determining the tax shall be the purchase price on an affidavit executed and filed with the clerk by the seller on a form to be prescribed by the registrar, which shall be prima-facie evidence of the price for the determination of the tax.

In addition to the information required by section 4519.57 of the Revised Code, each certificate of title shall contain in bold lettering the following notification and statements: "WARNING TO TRANSFEROR AND TRANSFEREE (SELLER AND BUYER): You are required by law to state the true selling price. A false statement is in violation of section 2921.13 of the Revised Code and is punishable by six months imprisonment or a fine of up to one thousand dollars, or both. All transfers are audited by the department of taxation. The seller and buyer must provide any information requested by the department of taxation. The buyer may be assessed any additional tax found to be due."

The clerk shall forward all payments of taxes, less poundage fees, to the treasurer of state in a manner to be prescribed by the tax commissioner and shall furnish information to the commissioner as the commissioner may require.

Every clerk shall have the capability to transact by electronic means all procedures and transactions relating to the issuance of certificates of title for off-highway motorcycles and all-purpose vehicles that are described in the Revised Code as being accomplished by electronic means.

Sec. 4519.60. (A) In the event of the transfer of ownership of an off-highway motorcycle or all-purpose vehicle by operation of law, as upon inheritance, devise, bequest, order in bankruptcy, insolvency, replevin, or execution of sale, or when repossession is had upon default in performance of the terms of a security agreement as provided in Chapter 1309. of the Revised Code, a clerk of a court of common pleas, upon the surrender of the prior certificate of title or the manufacturer's or importer's certificate, or, when that is not possible, upon presentation to the clerk of satisfactory proof of ownership and rights of possession to the off-highway motorcycle or all-purpose vehicle, and upon payment of the fee prescribed in section 4519.59 of the Revised Code and presentation of an application for certificate of title, may issue to the applicant a certificate of title to the off-highway motorcycle or all-purpose vehicle. Only an affidavit by the person or agent of the person to whom possession of the off-highway motorcycle or all-purpose vehicle has passed, setting forth the facts entitling the person to the possession and ownership, together with a copy of the journal entry, court order, or instrument upon which the claim of possession and ownership is founded, is satisfactory proof of ownership and right of possession. If the applicant cannot produce that proof of ownership, the applicant may apply directly to the registrar of motor vehicles and submit the evidence the applicant has, and the registrar, upon finding the evidence sufficient, may authorize the clerk to issue a certificate of title. If, from the records in the office of the clerk, there appears to be any lien on the off-highway motorcycle or all-purpose vehicle, the certificate of title shall contain a statement of the lien unless the application is accompanied by proper evidence of its extinction.

(B) Upon the death of one of the persons who have established joint ownership with right of survivorship under section 2131.12 of the Revised Code in an off-highway motorcycle or all-purpose vehicle and the presentation to the clerk of the title and the certificate of death of the deceased person, the clerk shall enter into the records the transfer of the off-highway motorcycle or all-purpose vehicle to the surviving person, and the title to the off-highway motorcycle or all-purpose vehicle immediately passes to the surviving person. The transfer does not affect any liens on the off-highway motorcycle or all-purpose vehicle.

(C) Upon the death of an owner of an off-highway motorcycle or all-purpose vehicle designated in beneficiary form under section 2131.13 of the Revised Code, upon application of the transfer-on-death beneficiary or beneficiaries designated pursuant to that section, and upon presentation to the clerk of the certificate of title and the certificate of death of the deceased owner, the clerk shall transfer the off-highway motorcycle or all-purpose vehicle and issue a certificate of title to the transfer-on-death beneficiary or beneficiaries. The transfer does not affect any liens upon any off-highway motorcycle or all-purpose vehicle so transferred.

Section 2. That existing sections 2131.12, 2131.13, 4519.55, and 4519.60 of the Revised Code are hereby repealed.