ORIGINAL HOUSE ENGROSSED

BILL NO. 0096

ENROLLED ACT NO. 37, HOUSE OF REPRESENTATIVES

FIFTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING

2001 GENERAL SESSION

AN ACT relating to salvage vehicles; requiring new
certificates of titles for motor vehicles which have
incurred prescribed levels of damage as specified;
requiring that brands be carried forward on certificates of
titles; requiring inspections; establishing fees; requiring
disclosure by dealers or sellers who attempt to sell a
rebuilt salvage vehicle or a flood vehicle; providing
penalties for violations; providing definitions; providing
exemptions as specified; repealing the requirement for
damage disclosure upon transfer of a motor vehicle; and
providing for an effective date.

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

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

31-2-106.  Definitions.

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

(i) "Flood vehicle" means any motor vehicle that
has been submerged in water to the point that rising water
has reached over the door sill and has entered into the
passenger or trunk compartment of the vehicle and the
actual dollar amount of the damage would not cause the
vehicle to be titled as a salvage vehicle. Disclosure that
a motor vehicle has become a flood vehicle shall be made at
the time of transfer of ownership and the next certificate
of title issued after the transfer shall be branded with
the word "flood";

(ii) "Certificate of title, branded salvage"
means a motor vehicle ownership document issued in this
state to the owner of a salvage vehicle conspicuously

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branded with the word "salvage" across the front of the
certificate;

(iii) "Rebuilt title" means the certificate of
title issued in this state to the owner of a rebuilt
salvage vehicle conspicuously branded "rebuilt" across the
front of the certificate of title;

(iv) "Rebuilt salvage vehicle" means any motor
vehicle which was previously issued a certificate of title
branded "salvage" and has a decal stating "rebuilt salvage
vehicle" affixed to the driver's door jamb;

(v) "Salvage vehicle" means any motor vehicle
which has been wrecked, destroyed or damaged to the extent
that it has been declared a total loss by the insurance
company or the total estimated or actual cost of parts and
labor to rebuild or reconstruct the motor vehicle to its
pre-accident condition exceeds seventy-five percent (75%)
of the actual retail cash value of the motor vehicle, as
set forth in the most current edition of any nationally
recognized automotive appraisal guide or other source
approved by the Wyoming insurance department. The value of
repair parts for purposes of this paragraph shall be
determined by using the current cost of the repair parts to
be used in the repair. The labor cost of repairs for
purposes of this paragraph shall be computed by using the
hourly labor rate and time allocations that are reasonable
and customary in the automobile repair industry in the
community where the repairs are to be performed.

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

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(a) When a motor vehicle is declared a total loss by
the insurance company or sustains damage in an amount
exceeding seventy-five percent (75%) of its actual retail
cash value, as set forth in any current edition of a
nationally recognized automotive appraisal guide or other
source approved by the Wyoming insurance department, the
owner or insurance company, if it obtains ownership of the
vehicle through transfer of title as a result of a
settlement of an insurance claim, shall forward the
properly endorsed certificate of title to the office of the
county clerk that issued the certificate of title together
with an application for a certificate of title branded
salvage and payment of the fee required under W.S.
31-2-102(a)(vii) to obtain a properly branded certificate
of title. When any vehicle accident report is required
under chapter 5, article 11 of this title, the
investigating officer shall provide written notice to the
owner or operator of the vehicle of the requirements under
this section.

(b) Upon receipt of a certificate of title under
subsection (a) of this section, the county clerk shall
issue a certificate of title branded "salvage" to the legal
owner as provided by W.S. 31-2-108.

(c) If the damaged vehicle is rebuilt and the owner
is issued a certificate of title branded "rebuilt", the
owner shall register the vehicle as required under W.S.
31-2-201, unless the owner is a licensed vehicle dealer
under chapter 16 of this title and the vehicle was rebuilt
for resale to the public. If the person registering the
rebuilt vehicle is the person under whose name the vehicle
was previously registered and the annual registration year
for the vehicle prior to being damaged has not expired at
the time of application under this section, a credit shall
be issued for the remainder of the current annual

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registration year for the vehicle to be applied against any
registration fees due for registration of the vehicle for
the same period.

(d) This section shall not apply to motor vehicles
with more than eight (8) years of service.

(e) This section shall not apply to a commercial
vehicle or a commercial vehicle combination used, designed
or maintained for transportation of persons for hire,
compensation or profit, or designed or used primarily for
the transportation of property for gain or profit
including:

(i) A power unit having two (2) axles and a
gross vehicle weight or registered gross vehicle weight
exceeding twenty-six thousand (26,000) pounds;

(ii) A power unit having three (3) or more axles
regardless of weight, or which is used in combination when
the weight of the combination exceeds twenty-six thousand
(26,000) pounds gross vehicle weight.

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

(a) For any motor vehicle, the ownership of which is
transferred on or after December 31, 2001, the certificate
of title shall contain an appropriate notice whenever
records readily accessible to the state indicate that the
motor vehicle was previously issued a title that bore any
word or symbol signifying that the vehicle was "salvage",
"unrebuildable", "parts only", "scrap", "junk",
"nonrepairable", "reconstructed", "rebuilt" or any other
symbol or word of like kind, or that it has been damaged by
flood. Any information concerning a motor vehicle's status
shall also be conveyed on any subsequent title issued for

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the vehicle by this state, including a duplicate or
replacement title.

(b) The certificate of title and the rebuilt salvage
decal stating "rebuilt salvage vehicle" shall meet security
standards minimizing the opportunity for fraud.

(c) A motor vehicle owner submitting an application
for a rebuilt salvage vehicle decal shall be required to
provide a completed document approved by the department
identifying the vehicle's damage prior to being repaired, a
copy of the original certificate of title branded "salvage"
and the name and address of the person who repaired or
rebuilt the vehicle. The owner shall also include an
affirmation that the information in the declaration is
complete and accurate and, to the knowledge of the
declarant, no stolen parts were used during the rebuilding.

(d) After the owner of a motor vehicle for which a
certificate of title branded "salvage" has been issued,
provides the information required under subsection (c) of
this section to the department, the department shall
provide to the owner a secure decal which shall comply with
the permanency requirements of the department, stating
"rebuilt salvage vehicle". The owner shall apply the decal
to the driver's door jamb of the vehicle prior to having
the vehicle inspected by a Wyoming law enforcement officer
for the vehicle identification number and to ensure the
decal has been properly affixed. The owner shall pay the
fee specified in W.S. 31-3-102(b) for the inspection.

(e) The owner of a motor vehicle for which a
certificate of title branded "salvage" has been issued may
apply for a certificate of title branded "rebuilt" by
presenting to the county clerk the certificate of title,
properly assigned, if applicable, together with the

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department certificate signed by a Wyoming law enforcement
officer who has inspected the vehicle for the vehicle
identification number and to ensure the decal required
under subsection (d) of this section has been properly
affixed. Upon proper application and payment of fees for a
certificate of title as provided under W.S.
31-3-102(a)(vii), a certificate of title branded "rebuilt"
shall be issued to the owner.

(f) If an insurance company, pursuant to a damage
settlement, acquires ownership of a motor vehicle that has
incurred damage requiring the vehicle to be issued a
certificate of title branded "salvage", the insurance
company shall apply for the certificate of title.

(g) If the owner of a motor vehicle retains the
vehicle upon a settlement with an insurance company, and
the vehicle has incurred damage requiring the vehicle to be
issued a certificate of title branded "nonrepairable" or
"salvage", the owner shall apply for the certificate of
title in his own name with the applicable brand displayed
on the certificate of title before the vehicle is
commercially repaired or ownership of the vehicle is
transferred.

(h) If an insurance company is not involved in a
damage settlement involving a salvage vehicle, the motor
vehicle owner shall apply for a certificate of title
branded "salvage", before the vehicle is commercially
repaired or ownership of the vehicle is transferred.

(j) If a leased motor vehicle incurs damage requiring
the vehicle to be issued a certificate of title branded
"salvage", the lessor shall apply for a properly branded
certificate of title after being notified by the lessee
that the vehicle has been damaged. The lessee of the

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vehicle shall inform the lessor that the leased vehicle has
been damaged within thirty (30) days after the occurrence
of the damage.

(k) Any person acquiring ownership of a damaged motor
vehicle that meets the definition of a salvage vehicle for
which a certificate of title branded "salvage" has not been
issued shall apply for a certificate of title before the
vehicle is further transferred.

(m) A seller of a motor vehicle that becomes a flood
vehicle shall, at or prior to the time of transfer of
ownership, give the buyer a written notice that the vehicle
is a flood vehicle. At the time of the next application for
certificate of title for the vehicle, disclosure of the
flood status shall be provided to the county clerk with the
properly assigned title and the word "flood" shall be
conspicuously branded across the front of the new title.

(n) In the case of a leased motor vehicle, the
lessee, within thirty (30) days of the occurrence of the
event that caused the vehicle to become a flood vehicle,
shall give the lessor written disclosure that the vehicle
is a flood vehicle.

31-2-109. Disclosure requirements.

(a) When any dealer in this state or motor vehicle
owner who is not a dealer knowingly offers for sale or
trade a motor vehicle which carries a title branded
pursuant to this article, the dealer or owner shall
disclose on a form prescribed by the department to any
prospective purchaser, prior to sale or trade, the nature
of the title brand.

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(b) The notification form to be prescribed by the
department shall have a statement indicating the buyer has
been provided notice of the brand on the title. The seller
shall require the buyer to sign the notification form prior
to completing a sales transaction on a motor vehicle that
carries a branded title. The seller shall retain a copy of
the signed notification form.

(c) Failure of the seller to procure the buyer's
acknowledgement signature shall render the sale voidable at
the election of the buyer. The election to render the sale
voidable shall be in writing and delivered to the seller
not later than thirty (30) days after the certificate of
title is issued in the buyer's name.

31-2-110. Violations; penalties.

(a) Any dealer or a person holding legal certificate
of title to a motor vehicle who fails to obtain a proper
certificate of title for a salvage vehicle as required
under W.S. 31-2-108 within thirty (30) days of the damage
to the vehicle is guilty of a misdemeanor punishable by a
fine of not more than seven hundred fifty dollars
($750.00), imprisonment for not more than six (6) months,
or both.

(b) Any dealer or a person who holds legal
certificate of title to a nonrepairable, rebuilt salvage or
flood vehicle who knowingly fails to disclose to a
potential buyer that the vehicle being sold is a
nonrepairable, rebuilt salvage or flood vehicle is guilty
of a misdemeanor punishable by a fine of not more than
seven hundred fifty dollars ($750.00), imprisonment for not
more than six (6) months, or both. A second or subsequent
violation under this subsection shall be subject to a fine
of not more than one thousand five hundred dollars

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($1,500.00), imprisonment for not more than one (1) year,
or both. In addition, if a dealer is convicted of a second
or subsequent violation under this subsection within two
(2) years, he may be subject to an injunction. The
department or the district attorney of the county in which
the violation occurred may petition the court for an
injunction to prohibit the dealer from selling vehicles in
this state for a period of not more than one (1) year.

Section 2.  W.S. 31-2-103(a)(vi), (d) and by creating
a new subsection (f), 31-3-102(b)(intro) and
39-15-107(b)(iv) are amended to read:

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

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

(vi) In the case of a vehicle registered or
titled in a state other than Wyoming a current statement
made by a Wyoming law enforcement officer or licensed
Wyoming dealer for vehicles in his inventory or possession
that the vehicle identification number on the vehicle has
been inspected and that the inspection occurred in Wyoming
and certifying the correct vehicle identification number
displayed on the vehicle. In the case of a vehicle not in
Wyoming, the vehicle identification number may be inspected
and certified on a form prescribed by the department if the
inspection is made by an authorized law enforcement officer
of a city, county or state law enforcement agency or a
commissioned officer at a federal military installation and
the form is duly notarized and delivered to the county
clerk in the county where the application for certificate
of title is made along with payment for the inspection fee
required under W.S. 31-3-102(b)(iv). If the certificate of

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title or registration of a vehicle under this paragraph
contains a brand or any word or symbol indicating the
vehicle has been damaged by flood, rebuilt, reconstructed
or otherwise modified, the brand, word or symbol shall be
carried forward on all subsequent certificates of title
issued in this state. A vehicle designated by any other
state as nonrepairable or any other word or symbol of like
kind shall be issued a certificate of title and may be
reregistered if the owner complies with the provisions of
W.S. 31-2-108;

(d)  Upon receipt of an application and payment of
fees any county clerk shall, if satisfied that the
applicant is the owner of the vehicle for which application
for certificate of title is made, issue a certificate of
title, upon a form approved by and provided at cost to the
county clerk by the department in the name of the owner
bearing the signature and seal of the county clerk's
office. The county clerk shall not deliver a certificate of
title issued under this section until presentation of a
receipt for payment of sales or use tax pursuant to W.S.
39-15-107(b) or 39-16-107(b). If a lien is filed with
respect to the vehicle, the county clerk shall immediately
deliver a copy of the filed lien and a copy of the issued
title to the financial institution. Each certificate of
title shall bear a document control number with county
designation and certificate of title number. The title
shall be completely filled out giving a description of the
vehicle including factory price in a manner prescribed by
the department, indicate all encumbrances or liens on the
vehicle and indicate the date of issue. Certificates of
title shall contain forms for assignment of title or
interest and warranty thereof by the owner with space for
notation of liens and encumbrances at the time of transfer
on the reverse side and contain space for the notarization
of a sale or transfer of title. Certificates of title shall

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contain an area for the disclosure of damage required by
W.S. 31-2-104(e). The county treasurer shall also carry
forward the disclosure from the certificate of title onto
the certificate of registration at the time of
registration. The disclosure shall be designated by
including the initials "DD" under the certificate of title
number. Certificates of title are valid for the vehicle so
long as the vehicle is owned or held by the person in whose
name the title was issued. A certificate of title is prima
facie proof of ownership of the vehicle for which the
certificate was issued.

(f) Notwithstanding subsection (d) of this section,
an insurance company that acquires ownership of a motor
vehicle pursuant to a damage settlement shall not be liable
for sales or use tax or for any penalties for nonpayment of
the sales or use tax pursuant to W.S. 39-15-107(b) or
39-16-107(b) prior to obtaining a title from the county
clerk for that vehicle.

31-3-102. Miscellaneous fees.

(b) A five dollar ($5.00) fee shall be collected for
each vehicle identification number or rebuilt salvage
vehicle decal inspected pursuant to W.S. 31-2-103(a)(vi) or
31-2-108(d). If a vehicle is presented for inspection of
both vehicle inspection number and rebuilt salvage vehicle
decal at the same time, only one (1) fee of five dollars
($5.00) shall be collected. The fee shall be deposited as
follows:

39-15-107. Compliance; collection procedures.

(b) Payment. The following shall apply:

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(iv) A person regularly engaged in the business
of making loans or a supervised financial institution, as
defined in W.S. 40-14-140(a)(xix), that forecloses a lien
or repossesses a motor vehicle on which it has filed a
lien, or an insurance company that acquires ownership of a
motor vehicle pursuant to a damage settlement, shall not be
liable for payment of sales or use tax, penalties or
interest due under this section or W.S. 39-16-107 for that
vehicle;

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

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

(END)

Speaker of the House President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

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