HB0096 - Motor vehicles-salvage titles.

 

2001

State of Wyoming

01LSO-0056

 

 

 

HOUSE BILL NO.  HB0096

 

 

Motor vehicles-salvage titles.

 

Sponsored by:

 

 

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.

 

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 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 

 

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 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

 

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 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

 

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 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 

 

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 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

 

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 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 

 

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 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 

 

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 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.

 

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 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

 

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 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

 

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 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 

 

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 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

 

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 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 

 

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 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 

 

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 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)

 

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