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.

13 Be It Enacted by the Legislature of the State of Wyoming:

15 Section 1. W.S. 31-2-106 through 31-2-110 are created
16 to read:

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2 31-2-106. Definitions.

4 (a) As used in W.S. 31-2-106 through 31-2-110:

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";

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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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;

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;

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;

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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.

21 31-2-107. Return of certificate of title and
22 registration for damaged vehicle; replacement title and
23 registration.

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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.

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.

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.

19 (d) This section shall not apply to motor vehicles
20 with more than ten (10) years of service.

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:

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;

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.

14 31-2-108. Titles for damaged vehicles; requirements.

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.

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.

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.

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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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.

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

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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.

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.

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.

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.

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.

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.

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.

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.

12 31-2-109. Disclosure requirements.

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.

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.

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.

13 31-2-110. Violations; penalties.

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.

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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.

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:

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1 31-2-103. Contents of application; signature; vehicle
2 identification number; issuance of certificate.

4 (a) Applications for certificates of title shall be
5 under oath and contain or be accompanied by:

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";

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

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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

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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.

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.

13 31-3-102. Miscellaneous fees.

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:

24 39-15-107. Compliance; collection procedures.

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2 (b) Payment. The following shall apply:

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;

14 Section 3. W.S. 31-2-103(a)(viii) and 31-2-104(e) are
15 repealed.

17 Section 4. This act is effective January 1, 2002.

19 (END)

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