HB 179 revises the amount of the bond required to obtain a certificate of title
for a vehicle when the owner does not have sufficient documentation of ownership. Current law provides that if the Department of Revenue (Department) is not satisfied with the documentation of ownership submitted with the application for a certificate of title, then it may require a surety bond. Prior law required a bond in an amount equal to 1.5 times the value of the vehicle. Instead, the new law authorizes the Department to determine the amount of the bond required. The bond indemnifies any prior or subsequent owner or lienholder who may have a security interest in the vehicle for any losses incurred by the issuance of a certificate of title to the applicant. The new law becomes effective on October 1, 2010.