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