HB0096 - Motor vehicles-salvage titles.
2001 |
State of Wyoming |
01LSO-0056.E1 ENGROSSED |
HOUSE BILL NO. HB0096
Motor vehicles-salvage titles.
Sponsored by: Joint Transportation and Highways Interim
Committee
A BILL
for
1 AN ACT relating to salvage
vehicles; requiring new
2
certificates of titles for motor vehicles which have
3
incurred prescribed levels of damage as specified;
4
requiring that brands be carried forward on certificates of
5
titles; requiring inspections; establishing fees; requiring
6
disclosure by dealers or sellers who attempt to sell a
7
rebuilt salvage vehicle or a flood vehicle; providing
8
penalties for violations; providing definitions; providing
9
exemptions as specified; repealing the requirement for
10 damage disclosure upon transfer of a
motor vehicle; and
11 providing for an effective date.
12
13 Be It Enacted by the Legislature of the State of Wyoming:
14
15 Section 1. W.S. 31-2-106 through 31-2-110 are created
16 to read:
Page 1
1
2 31-2-106. Definitions.
3
4 (a) As used in W.S. 31-2-106 through 31-2-110:
5
6 (i) "Flood
vehicle" means any motor vehicle that
7
has been submerged in water to the point that rising water
8
has reached over the door sill and has entered into the
9
passenger or trunk compartment of the vehicle and the
10 actual dollar amount of the damage
would not cause the
11 vehicle to be titled as a salvage
vehicle. Disclosure that
12 a motor vehicle has become a flood
vehicle shall be made at
13 the time of transfer of ownership
and the next certificate
14 of title issued after the transfer
shall be branded with
15 the word "flood";
16
17 (ii) "Nonrepairable
vehicle" means any motor
18 vehicle which is incapable of safe
operation for use on
19 public roads or highways and which
has no resale value
20 except as a source of parts or scrap
only or which the
21 owner irreversibly designates as a
source of parts or
22 scrap. A certificate of title
branded "nonrepairable" shall
23 be issued for the vehicle and the
vehicle shall never again
24 be registered;
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1
2 (iii) "Certificate
of title, branded
3
nonrepairable or salvage" means a motor vehicle ownership
4
document issued in this state to the owner of a
5
nonrepairable or salvage vehicle conspicuously branded with
6
the word "nonrepairable" or "salvage" across the
front of
7
the certificate. A motor vehicle for which a certificate of
8
title branded "nonrepairable" is issued can never be
9
registered for use on roads or highways;
10
11 (iv) "Rebuilt
title" means the certificate of
12 title issued in this state to the
owner of a rebuilt
13 salvage vehicle conspicuously
branded "rebuilt" across the
14 front of the certificate of title. A
motor vehicle for
15 which a certificate of title branded
"rebuilt" has been
16 issued may be registered for use on
public roads and
17 highways;
18
19 (v) "Rebuilt
salvage vehicle" means any motor
20 vehicle which was previously issued
a certificate of title
21 branded "salvage" and has
a decal stating "rebuilt salvage
22 vehicle" affixed to the
driver's door jamb;
23
Page 3
1 (vi) "Salvage
vehicle" means any motor vehicle
2
which has been wrecked, destroyed or damaged to the extent
3
that the total estimated or actual cost of parts and labor
4
to rebuild or reconstruct the motor vehicle to its pre-
5
accident condition and for legal operation on public roads
6
or highways exceeds seventy-five percent (75%) of the
7
actual cash value of the motor vehicle, as set forth in the
8
most current edition of the national automobile dealers'
9
association official price guide or nationally recognized
10 automotive appraisal guide or other
source approved by the
11 department or if declared a total
loss by the insurance
12 company. The value of repair parts
for purposes of this
13 paragraph shall be determined by
using the current cost of
14 the repair parts to be used in the
repair. The labor cost
15 of repairs for purposes of this
paragraph shall be computed
16 by using the hourly labor rate and
time allocations that
17 are reasonable and customary in the
automobile repair
18 industry in the community where the
repairs are to be
19 performed.
20
21 31-2-107. Return of certificate of
title and
22 registration for damaged vehicle;
replacement title and
23 registration.
24
Page 4
1 (a) When a
motor vehicle sustains damage in an amount
2 exceeding seventy-five percent (75%) of its actual cash
3
value, as set forth in the most current edition of the
4
national automobile dealers' association official price
5
guide or nationally recognized automotive appraisal guide
6
or other source approved by the department or if declared a
7
total loss by the insurance company, the owner or insurance
8
company, if it obtains ownership of the vehicle through
9
transfer of title as a result of a settlement of an
10 insurance claim, shall forward the
properly endorsed
11 certificate of title to the office
of the county clerk that
12 issued the certificate of title
together with an
13 application for a certificate of
title branded
14 nonrepairable or salvage and payment
of the fee required
15 under W.S. 31-2-102(a)(vii) to
obtain a properly branded
16 certificate of title. When any
vehicle accident report is
17 required under chapter 5, article 11
of this title, the
18 investigating officer shall provide
written notice to the
19 owner or operator of the vehicle of
the requirements under
20 this section.
21
22 (b) Upon
receipt of a certificate of title under
23 subsection (a) of this section, the
county clerk shall
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1
issue a certificate of title branded "nonrepairable" or
2
"salvage" to the legal owner as provided by W.S. 31-2-108.
3
4 (c) If the
damaged vehicle is rebuilt and the owner
5
is issued a certificate of title branded "rebuilt", the
6
owner shall register the vehicle as required under W.S.
7
31-2-201, unless the owner is a licensed vehicle dealer
8
under chapter 16 of this title and the vehicle was rebuilt
9
for resale to the public. If the person registering the
10 rebuilt vehicle is the person under
whose name the vehicle
11 was previously registered and the
annual registration year
12 for the vehicle prior to being
damaged has not expired at
13 the time of application under this
section, a credit shall
14 be issued for the remainder of the
current annual
15 registration year for the vehicle to
be applied against any
16 registration fees due for
registration of the vehicle for
17 the same period.
18
19 (d) This
section shall not apply to motor vehicles
20 with more than ten (10) years of service.
21
22 (e) This
section shall not apply to a commercial
23 vehicle or a commercial vehicle
combination used, designed
24 or maintained for transportation of
persons for hire,
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1
compensation or profit, or designed or used primarily for
2
the transportation of property for gain or profit
3
including:
4
5 (i) A power
unit having two (2) axles and a
6
gross vehicle weight or registered gross vehicle weight
7
exceeding twenty-six thousand (26,000) pounds;
8
9 (ii) A power
unit having three (3) or more axles
10 regardless of weight, or which is
used in combination when
11 the weight of the combination
exceeds twenty-six thousand
12 (26,000) pounds gross vehicle
weight.
13
14 31-2-108. Titles for damaged vehicles; requirements.
15
16 (a) For any
motor vehicle, the ownership of which is
17 transferred on or after December 31,
2001, the certificate
18 of title shall contain an
appropriate notice whenever
19 records readily accessible to the
state indicate that the
20 motor vehicle was previously issued
a title that bore any
21 word or symbol signifying that the
vehicle was "salvage",
22 "unrebuildable",
"parts only", "scrap", "junk",
23 "nonrepairable",
"reconstructed", "rebuilt" or any other
24 symbol or word of like kind, or that
it has been damaged by
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1
flood. Any information concerning a motor vehicle's status
2
shall also be conveyed on any subsequent title issued for
3
the vehicle by this state, including a duplicate or
4
replacement title.
5
6 (b) The
certificate of title and the rebuilt salvage
7
decal stating "rebuilt salvage vehicle" shall meet security
8
standards minimizing the opportunity for fraud.
9
10 (c) A certificate
of title branded "nonrepairable"
11 shall be issued for a motor vehicle
designated as
12 nonrepairable and the vehicle shall
never again be
13 registered.
14
15 (d) A motor
vehicle owner submitting an application
16 for a rebuilt salvage vehicle decal
shall be required to
17 provide a completed document
approved by the department
18 identifying the vehicle's damage
prior to being repaired, a
19 copy of the original certificate of
title branded "salvage"
20 and the name and address of the
person who repaired or
21 rebuilt the vehicle. The owner shall
also include an
22 affirmation that the information in
the declaration is
23 complete and accurate and, to the
knowledge of the
24 declarant, no stolen parts were used
during the rebuilding.
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1
2 (e) After the
owner of a motor vehicle for which a
3
certificate of title branded "salvage" has been issued,
4
provides the information required under subsection (d) of
5
this section to the department, the department shall
6
provide to the owner a secure decal which shall comply with
7
the permanency requirements of the department, stating
8
"rebuilt salvage vehicle". The owner shall apply the decal
9
to the driver's door jamb of the vehicle prior to having
10 the vehicle inspected by a Wyoming
law enforcement officer
11 for the vehicle identification
number and to ensure the
12 decal has been properly affixed. The
owner shall pay the
13 fee specified in W.S. 31-3-102(b)
for the inspection.
14
15 (f) The owner
of a motor vehicle for which a
16 certificate of title branded
"salvage" has been issued may
17 apply for a certificate of title
branded "rebuilt" by
18 presenting to the county clerk the
certificate of title,
19 properly assigned, if applicable,
together with the
20 department certificate signed by a
Wyoming law enforcement
21 officer who has inspected the
vehicle for the vehicle
22 identification number and to ensure
the decal required
23 under subsection (e) of this section
has been properly
24 affixed. Upon proper application and
payment of fees for a
Page 9
1
certificate of title as provided under W.S.
2
31-3-102(a)(vii), a certificate of title branded "rebuilt"
3
shall be issued to the owner.
4
5 (g) If an
insurance company, pursuant to a damage
6
settlement, acquires ownership of a motor vehicle that has
7
incurred damage requiring the vehicle to be issued a
8
certificate of title branded "nonrepairable" or
"salvage",
9
the insurance company shall apply for the certificate of
10 title.
11
12 (h) If the
owner of a motor vehicle retains the
13 vehicle upon a settlement with an
insurance company, and
14 the vehicle has incurred damage
requiring the vehicle to be
15 issued a certificate of title
branded "nonrepairable" or
16 "salvage", the owner shall
apply for the certificate of
17 title in his own name with the
applicable brand displayed
18 on the certificate of title before
the vehicle is repaired
19 or ownership of the vehicle is
transferred.
20
21 (j) If an
insurance company is not involved in a
22 damage settlement involving a
nonrepairable or salvage
23 vehicle, the motor vehicle owner
shall apply for a
24 certificate of title branded
"nonrepairable" or "salvage",
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1
whichever is applicable, before the vehicle is repaired or
2
ownership of the vehicle is transferred, but in any event
3
within thirty (30) days after the vehicle is damaged.
4
5 (k) If a leased
motor vehicle incurs damage requiring
6
the vehicle to be issued a certificate of title branded
7
"nonrepairable" or "salvage", the lessor shall apply
for a
8
properly branded certificate of title after being notified
9
by the lessee that the vehicle has been damaged. The lessee
10 of the vehicle shall inform the
lessor that the leased
11 vehicle has been damaged within
thirty (30) days after the
12 occurrence of the damage.
13
14 (m) Any person
acquiring ownership of a damaged motor
15 vehicle that meets the definition of
a nonrepairable or
16 salvage vehicle for which a
certificate of title branded
17 "nonrepairable" or
"salvage" has not been issued shall
18 apply for a certificate of title
before the vehicle is
19 further transferred.
20
21 (n) A seller of
a motor vehicle that becomes a flood
22 vehicle shall, at or prior to the
time of transfer of
23 ownership, give the buyer a written
notice that the vehicle
24 is a flood vehicle. At the time of
the next application for
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1
certificate of title for the vehicle, disclosure of the
2
flood status shall be provided to the county clerk with the
3
properly assigned title and the word "flood" shall be
4
conspicuously branded across the front of the new title.
5
6 (o) In the case
of a leased motor vehicle, the
7
lessee, within thirty (30) days of the occurrence of the
8
event that caused the vehicle to become a flood vehicle,
9
shall give the lessor written disclosure that the vehicle
10 is a flood vehicle.
11
12 31-2-109. Disclosure requirements.
13
14 (a) When any
dealer in this state or motor vehicle
15 owner who is not a dealer knowingly
offers for sale or
16 trade a motor vehicle which carries
a title branded
17 pursuant to this article, the dealer
or owner shall
18 disclose on a form prescribed by the
department to any
19 prospective purchaser, prior to sale
or trade, the nature
20 of the title brand.
21
22 (b) The
notification form to be prescribed by the
23 department shall have a statement
indicating the buyer has
24 been provided notice of the brand on
the title. The seller
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1
shall require the buyer to sign the notification form prior
2
to completing a sales transaction on a motor vehicle that
3
carries a branded title. The seller shall retain a copy of
4
the signed notification form.
5
6 (c) Failure of
the seller to procure the buyer's
7
acknowledgement signature shall render the sale voidable at
8
the election of the buyer. The election to render the sale
9
voidable shall be limited to not later than thirty (30)
10 days after the certificate of title
is issued in the
11 buyer's name.
12
13 31-2-110. Violations; penalties.
14
15 (a) Any dealer
or a person holding legal certificate
16 of title to a motor vehicle who
fails to obtain a proper
17 certificate of title for a
nonrepairable vehicle or salvage
18 vehicle as required under W.S.
31-2-108 within thirty (30)
19 days of the damage to the vehicle is
guilty of a
20 misdemeanor punishable by a fine of
not more than seven
21 hundred fifty dollars ($750.00),
imprisonment for not more
22 than six (6) months, or both.
23
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1 (b) Any dealer
or a person who holds legal
2
certificate of title to a nonrepairable, rebuilt salvage or
3
flood vehicle who knowingly fails to disclose to a
4
potential buyer that the vehicle being sold is a
5
nonrepairable, rebuilt salvage or flood vehicle is guilty
6
of a misdemeanor punishable by a fine of not more than
7
seven hundred fifty dollars ($750.00), imprisonment for not
8
more than six (6) months, or both. A second or subsequent
9
violation under this subsection shall be subject to a fine
10 of not more than one thousand five
hundred dollars
11 ($1,500.00), imprisonment for not
more than one (1) year,
12 or both. In addition, if a dealer is
convicted of a second
13 or subsequent violation under this
subsection within two
14 (2) years, he may be subject to an
injunction. The
15 department or the district attorney
of the county in which
16 the violation occurred may petition
the court for an
17 injunction to prohibit the dealer
from selling vehicles in
18 this state for a period of not more
than one (1) year.
19
20 Section 2. W.S. 31-2-103(a)(vi), (d)
and by creating
21 a new subsection (f),
31-3-102(b)(intro) and
22 39-15-107(b)(iv) are amended to
read:
23
Page 14
1 31-2-103. Contents of application;
signature; vehicle
2 identification
number; issuance of certificate.
3
4 (a) Applications
for certificates of title shall be
5
under oath and contain or be accompanied by:
6
7 (vi) In the case
of a vehicle registered or
8
titled in a state other than Wyoming a current statement
9
made by a Wyoming law enforcement officer or licensed
10 Wyoming dealer for vehicles in his
inventory or possession
11 that the vehicle identification
number on the vehicle has
12 been inspected and that the
inspection occurred in Wyoming
13 and certifying the correct vehicle
identification number
14 displayed on the vehicle. In the
case of a vehicle not in
15 Wyoming, the vehicle identification
number may be inspected
16 and certified on a form prescribed
by the department if the
17 inspection is made by an authorized
law enforcement officer
18 of a city, county or state law
enforcement agency or a
19 commissioned officer at a federal
military installation and
20 the form is duly notarized and
delivered to the county
21 clerk in the county where the
application for certificate
22 of title is made along with payment
for the inspection fee
23 required under W.S. 31-3-102(b)(iv).
If the certificate of
24 title or registration of a vehicle
under this paragraph
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1
contains a brand or any word or symbol
indicating the
2
vehicle has been damaged by flood,
rebuilt, reconstructed
3
or otherwise modified, the brand, word or
symbol shall be
4
carried forward on all subsequent certificates of title
5
issued in this state. A vehicle designated by
this or any
6 other state as nonrepairable or any
other word or symbol of
7 like kind shall be issued a
certificate of title branded
8 "nonrepairable" and shall
not be reregistered. A vehicle
9 designated by this or any other state
as salvage or any
10 other word or symbol of like kind may be inspected by a law
11 enforcement officer of this state under this section to
12 ensure a rebuilt salvage vehicle decal has been properly
13 affixed as required under W.S. 31-2-107(e) prior to being
14 issued a certificate of title branded "rebuilt";
15
16 (d) Upon receipt of an application and payment of
17 fees any county clerk shall, if
satisfied that the
18 applicant is the owner of the
vehicle for which application
19 for certificate of title is made,
issue a certificate of
20 title, upon a form approved by and
provided at cost to the
21 county clerk by the department in
the name of the owner
22 bearing the signature and seal of
the county clerk's
23 office. The county clerk shall not
deliver a certificate of
24 title issued under this section
until presentation of a
Page 16
1 receipt for payment of sales or use tax pursuant to W.S.
2
39-15-107(b) or 39-16-107(b). If a lien is filed with
3
respect to the vehicle, the county clerk shall immediately
4
deliver a copy of the filed lien and a copy of the issued
5
title to the financial institution. Each certificate of
6
title shall bear a document control number with county
7
designation and certificate of title number. The title
8
shall be completely filled out giving a description of the
9
vehicle including factory price in a manner prescribed by
10 the department, indicate all
encumbrances or liens on the
11 vehicle and indicate the date of
issue. Certificates of
12 title shall contain forms for
assignment of title or
13 interest and warranty thereof by the
owner with space for
14 notation of liens and encumbrances
at the time of transfer
15 on the reverse side and contain
space for the notarization
16 of a sale or transfer of title. Certificates of title shall 17
contain an area for the disclosure of damage required by 18
W.S. 31-2-104(e). The county treasurer shall also carry 19
forward
the disclosure from the certificate of title onto 20
the certificate of registration at the time of 21
registration. The disclosure shall be designated by 22
including the initials "DD" under the certificate
of title 23
number. Certificates of title are valid for the
vehicle so
24 long as the vehicle is owned or held
by the person in whose
Page 17
1
name the title was issued. A certificate of title is prima
2
facie proof of ownership of the vehicle for which the
3
certificate was issued.
4
5 (f) Notwithstanding
subsection (d) of this section,
6 an insurance company that acquires
ownership of a motor
7 vehicle pursuant to a damage
settlement shall not be liable
8 for sales or use tax or for any
penalties for nonpayment of
9 the sales or use tax pursuant to W.S.
39-15-107(b) or
10 39-16-107(b) prior to obtaining a title from the county
11 clerk for that vehicle.
12
13 31-3-102. Miscellaneous fees.
14
15 (b) A five
dollar ($5.00) fee shall be collected for
16 each vehicle identification number or rebuilt salvage
17 vehicle decal inspected pursuant to W.S.
31-2-103(a)(vi) or
18 31-2-108(e). If a
vehicle is presented for inspection of
19 both vehicle inspection number and rebuilt salvage vehicle
20 decal at the same time, only one (1) fee of five dollars
21 ($5.00) shall be collected. The fee shall be
deposited as
22 follows:
23
24 39-15-107. Compliance; collection procedures.
Page 18
1
2 (b) Payment. The following shall apply:
3
4 (iv) A person
regularly engaged in the business
5
of making loans or a supervised financial institution, as
6
defined in W.S. 40-14-140(a)(xix), that forecloses a lien
7
or repossesses a motor vehicle on which it has filed a
8
lien, or an insurance company that acquires
ownership of a
9 motor vehicle pursuant to a damage
settlement, shall not be
10 liable for payment of sales or use
tax, penalties or
11 interest due under this section or
W.S. 39-16-107 for that
12 vehicle;
13
14 Section
3. W.S. 31-2-103(a)(viii) and
31-2-104(e) are
15 repealed.
16
17 Section 4. This act is effective January 1, 2002.
18
19 (END)
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