Sec. 1. 36 MRSA §1491-A is enacted to read:

§1491-A.__Bad checks

1.__Bad checks. The Secretary of State shall rescind a vehicle registration for which the excise tax is paid with a check that is subsequently returned because of insufficient funds, a stop-payment order or a closed account.

2.__Insufficient funds.__If a check under subsection 1 is returned for insufficient funds, the collector of the tax shall notify the person whose name appears on the vehicle registration that the person has 30 days to pay the excise tax plus bank charges for the bad check or face rescission of the registration.__If the person does not pay the excise tax and bank charges within 30 days of notification, the collector of the tax may forward the person's name, address and vehicle registration information to the Secretary of State to rescind the registration.

3.__Stop-payment orders and closed accounts.__If a check under subsection 1 is returned due to a stop-payment order or a closed account, the collector of the tax may immediately forward the name, address and vehicle registration information on the registration to the Secretary of State to rescind the registration.

SUMMARY

This bill requires the Secretary of State to rescind the vehicle registration of a person who pays the excise tax for the vehicle with a check that is returned because of insufficient funds, a stop-payment order or a closed account.