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H0727.........................................by TRANSPORTATION AND DEFENSE SALVAGE VEHICLES - Amends existing law relating to titling of salvage vehicles to delete the age and market value limitations relating to obtaining a salvage certificate of ownership for a salvage vehicle; and to provide a procedure for obtaining a branded certificate of title for a vehicle which is more than five years old or which has a known market value $6,000 or less which has been determined to be a salvage vehicle and which is not required to be inspected by the Idaho Transportation Department. 02/23 House intro - 1st rdg - to printing 02/24 Rpt prt - to Transp 02/27 Rpt out - rec d/p - to 2nd rdg 02/28 2nd rdg - to 3rd rdg 03/03 3rd rdg - PASSED - 68-0-2 AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood NAYS -- None Absent and excused -- Field(18), Mr. Speaker Floor Sponsor - Nonini Title apvd - to Senate 03/06 Senate intro - 1st rdg - to Transp 03/09 Rpt out - rec d/p - to 2nd rdg 03/10 2nd rdg - to 3rd rdg 03/16 3rd rdg - PASSED - 35-0-0 AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams NAYS -- None Absent and excused -- None Floor Sponsor - Marley Title apvd - to House 03/17 To enrol 03/20 Rpt enrol - Sp signed 03/21 Pres signed - To Governor 03/22 Governor signed Session Law Chapter 102 Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 727 BY TRANSPORTATION AND DEFENSE COMMITTEE 1 AN ACT 2 RELATING TO TITLING OF SALVAGE VEHICLES; AMENDING SECTION 49-524, IDAHO CODE, 3 TO DELETE THE AGE AND MARKET VALUE LIMITATIONS RELATING TO OBTAINING A 4 SALVAGE CERTIFICATE OF OWNERSHIP FOR A SALVAGE VEHICLE; AND AMENDING SEC- 5 TION 49-525, IDAHO CODE, TO PROVIDE A PROCEDURE FOR OBTAINING A BRANDED 6 CERTIFICATE OF TITLE FOR A VEHICLE WHICH IS MORE THAN FIVE YEARS OLD AND 7 WHICH HAS A KNOWN MARKET VALUE OF SIX THOUSAND DOLLARS OR LESS WHICH HAS 8 BEEN DETERMINED TO BE A SALVAGE VEHICLE AND WHICH IS NOT REQUIRED TO BE 9 INSPECTED BY THE IDAHO TRANSPORTATION DEPARTMENT. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 49-524, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 49-524. SALVAGE CERTIFICATE OF OWNERSHIP TO REPLACE CERTIFICATE OF TITLE 14 OR ORIGIN ON CERTAIN VEHICLES -- VESSELS NOT INCLUDED. (1) Every person 15 acquiring a vehiclewhich is five (5) years old or less or which has a known16market value in excess of six thousand dollars ($6,000)which has been deter- 17 mined to be a salvage vehicle, shall obtain a salvage certificate of ownership 18 on that vehicle. 19 (2) The salvage certificate shall replace the certificate of origin, cer- 20 tificate of title or other comparable ownership document and shall indicate 21 ownership only; it shall not be valid for registration purposes. 22 (3) A salvage certificate of ownership shall be issued by the department, 23 the insurer, or a salvage pool, and shall be on a form prescribed by the 24 department. The form shall provide for assignments of the salvage certificate. 25 (4) The fee for a salvage certificate shall be the same as for issuance 26 of any regular Idaho certificate of title. The fee shall be deposited in the 27 state highway account. 28 (5) Every insurer making payment for a vehiclewhich is five (5) years29old or less or which has a known market value in excess of six thousand dol-30lars ($6,000)which has been determined to be a salvage vehicle, shall within 31 thirty (30) days from receipt of the properly released certificate of origin 32 or certificate of title, issue a salvage certificate to the purchaser and sur- 33 render to the department the ownership documents, a copy of the salvage cer- 34 tificate, the salvage certificate fee and other documents as required by the 35 department for processing. The department shall mark its records appropri- 36 ately. 37 (6) If a salvage pool receives a certificate of title for a vehiclewhich38is five (5) years old or less or which has a known market value in excess of39six thousand dollars ($6,000)which has been determined to be a salvage vehi- 40 cle, he shall within thirty (30) days and upon receipt of the properly 41 released certificate of origin or certificate of title, issue a salvage cer- 42 tificate to the purchaser and surrender to the department the ownership docu- 43 ments, a copy of the salvage certificate, the salvage certificate fee and 2 1 other documents as required by the department for processing. The department 2 shall mark its records appropriately. 3 (7) It is a misdemeanor, punishable by up to six (6) months in jail, a 4 fine of one thousand dollars ($1,000) or both, if the owner of a retained sal- 5 vage vehicle fails to surrender the title and be issued a salvage certifi- 6 cate, or to sell the vehicle and not tell the buyer that the vehicle is 7 totaled. 8 (8) If an insurer has allowed the owner to retain ownership of the sal- 9 vage vehicle, the owner must surrender the certificate of title for such vehi- 10 cle to the department or the insurance company not later than fifteen (15) 11 days from the date that the claim was satisfied. The insurer must notify the 12 department of a total loss payoff. The insurer or department shall issue a 13 salvage certificate to the owner prior to any sale or disposition of the sal- 14 vage vehicle. 15 (9) If an insurer acquires the certificate of title of a vehicle in a 16 settlement of a theft claim, the insurer shall immediately, upon receipt of 17 the properly released certificate of origin or certificate of title, issue a 18 salvage certificate in the name of the insurer and surrender to the department 19 the ownership documents, a copy of the salvage certificate, the salvage cer- 20 tificate fee and other documents as required by the department for processing. 21 (10) If an insurer has acquired a vehicle in a settlement of a theft 22 claim, has made application to and has been issued a new salvage certificate 23 in the name of the insurer and the vehicle is subsequently recovered and is 24 not a salvage vehicle, the insurer may complete an affidavit indemnifying the 25 department stating the facts of acquisition and disposition of the vehicle in 26 a form prescribed by the department and deliver the salvage certificate of 27 ownership, affidavit and any other documents required by the department to the 28 transferee at the time of delivery of the vehicle. 29 (11) Any person acquiring ownership of a salvage vehicle purchased in a 30 state or jurisdiction which does not require surrender of the certificate of 31 title or comparable ownership document shall, within thirty (30) days follow- 32 ing delivery of the certificate of title or ownership document, surrender such 33 title or document to the department and apply for a salvage certificate. 34 (12) An owner of a salvage vehicle who sells or transfers said vehicle 35 shall provide a properly executed assignment of the salvage certificate of 36 ownership to the transferee. 37 (13) A purchaser of a salvage vehicle shall not possess or retain a sal- 38 vage vehicle without a salvage certificate.unless the salvage vehicle is six39(6) years old or older with a fair market value of six thousand dollars40($6,000) or less.The salvage vehicle purchaser shall display the salvage cer- 41 tificate upon the request of any peace officer or agent of the department. 42 (14) The provisions of this section shall not apply to vessels. 43 SECTION 2. That Section 49-525, Idaho Code, be, and the same is hereby 44 amended to read as follows: 45 49-525. SALVAGE-CERTIFIED VEHICLE -- INSPECTIONS -- BRANDING -- BRANDED 46 CERTIFICATE OF TITLE. (1) The department shall issue a branded certificate of 47 title on any motor vehicle for which a salvage certificate, salvage bill of 48 sale or other documentation showing evidence that the vehicle has been 49 declared salvage has been issued by this or any other state, provided, if doc- 50 umentation of salvage certification has been received from another state, the 51 requirements specified in section 49-524, Idaho Code, shall be applied to that 52 vehicle. 53 (2) An initial vehicle identification number inspection and major compo- 3 1 nent parts inspection shall be conducted by an authorized department employee 2 and shall include examination of the vehicle and its parts to determine that 3 the identification numbers of the vehicle or its parts have not been removed, 4 falsified, altered, defaced or destroyed and that there are no indications 5 that the vehicle or any of its parts are stolen. Such certification shall not 6 attest to the roadworthiness or safety condition of the vehicle. The fee for 7 initial inspection shall be twenty-five dollars ($25.00) and shall be depos- 8 ited in the state highway account. The department may contract with private or 9 public entities to conduct the inspections. 10 (a) If the inspector determines that one (1) major component part has 11 damage requiring repair or replacement, the vehicle statement of facts 12 shall indicate that the vehicle shall not be eligible for a certificate of 13 title until it has been repaired and has been reinspected as a "repaired 14 vehicle." The vehicle statement of facts shall indicate that the vehicle 15 will require a "repaired vehicle" decal before issuance of a branded cer- 16 tificate of title. The owner may then submit an application with all 17 required supporting documents to the department for issuance of a certifi- 18 cate of title. 19 (b) If the inspector determines that two (2) or more major component 20 parts have damage requiring repair or replacement, or that the vehicle has 21 sustained flood damage, the vehicle shall not be eligible for a certifi- 22 cate of title until it has been restored or reconstructed and has been 23 reinspected as a reconstructed vehicle. The vehicle statement of facts 24 shall indicate that the vehicle will require a "reconstructed vehicle" 25 decal before issuance of a branded certificate of title. 26 The provisions of this subsection (2) shall not apply to a vehicle which is 27 more than five (5) years old and which has a known market value of six thou- 28 sand dollars ($6,000) or less which has been determined to be a salvage vehi- 29 cle. 30 (3) Every owner of a salvage vehicle which has been restored or repaired 31 in this state to its operating condition, in compliance with chapter 9, title 32 49, Idaho Code, shall, if the inspector issued a vehicle statement of facts as 33 required in subsection (2) of this section, present the vehicle to the depart- 34 ment for inspection as a reconstructed vehicle or as a repaired vehicle. 35 (a) If the inspector determines that the receipts for major component 36 parts are valid, including the vehicle identification numbers of the vehi- 37 cles from which the major component parts were removed, a "reconstructed 38 vehicle" decal or a "repaired vehicle" decal shall be affixed to the vehi- 39 cle and the statement of facts shall indicate that the vehicle has been 40 branded and that the certificate of title shall be branded accordingly. 41 (b) The fee for issuance of a "reconstructed vehicle" decal or a 42 "repaired vehicle" decal shall be ten dollars ($10.00) and shall be depos- 43 ited in the state highway account. 44 (c) The owner may then submit an application for branded certificate of 45 title to the department which application shall be accompanied by the sal- 46 vage bill of sale, salvage certificate or other documentation showing evi- 47 dence that the vehicle has been declared salvage, vehicle statement of 48 facts, indemnifying affidavit, bills of sale or invoices for major compo- 49 nent parts and written affirmation which states: 50 1. That the owner personally rebuilt or repaired the vehicle or per- 51 sonally supervised its rebuilding or repairing and includes a 52 description of work done to restore the vehicle to the operating con- 53 dition that existed prior to the event which caused the salvage cer- 54 tificate to be issued; 55 2. That the identification numbers of the restored vehicle and its 4 1 parts have not, to the knowledge of the owner, been removed, 2 destroyed, falsified, altered or defaced; 3 3. That the salvage certificate document or out-of-state title cer- 4 tificate attached to the application has not to the knowledge of the 5 owner been forged, falsified or altered; and 6 4. That all information contained on the application and its attach- 7 ments is true and correct. 8 (4) Upon presentation of the documents required by the department, the 9 department shall issue a branded certificate of title which shall contain the 10 word "reconstructed vehicle" or "repaired vehicle." 11 (5) If an otherwise correct application is made for a certificate of 12 title on any salvage-certified vehicle which was not inspected as required by 13 the provisions of subsection (2) of this section, the department shall brand 14 the vehicle with a "reconstructed vehicle" decal and shall issue a branded 15 certificate of title. 16 (6) If an otherwise correct application is made for a certificate of 17 title on any salvage-certified vehicle which is not required to be inspected 18 pursuant to the provisions of subsection (2) of this section, the department 19 shall issue a branded certificate of title as a "reconstructed vehicle" if the 20 application for a certificate of title is supported by a written affirmation 21 of the owner which states: 22 (a) That the owner personally rebuilt or repaired the vehicle or person- 23 ally supervised its rebuilding or repairing and includes a description of 24 work done to restore the vehicle to the operating condition that existed 25 prior to the event which caused the salvage certificate to be issued; 26 (b) That the identification numbers of the restored vehicle and its parts 27 have not, to the knowledge of the owner, been removed, destroyed, falsi- 28 fied, altered or defaced; 29 (c) That the salvage certificate document or out-of-state title certifi- 30 cate attached to the application has not to the knowledge of the owner 31 been forged, falsified or altered; and 32 (d) That all information contained on the application and its attachments 33 is true and correct. 34 (7) Each branded certificate of title received from another jurisdiction 35 shall have its brand carried forward to all subsequent certificates of title 36 issued in this state. 37 (78) The department may promulgate rules as necessary to implement the 38 provisions of sections 49-524 and 49-525, Idaho Code.
STATEMENT OF PURPOSE RS 16095C1 The purpose of this legislation is to provide vehicle purchasers with necessary and important information relating to significant damage history of a vehicle. Under current law, a vehicle that has been declared "salvage" in another jurisdiction, or which vehicle has been damaged to such an extent that the cost of repair minus the salvage value makes it uneconomical to repair or rebuild, must be issued a title in Idaho which is branded to show that it is a repaired or rebuilt vehicle. However, if the "salvage" vehicle is more than five years old or has a market value of less than $6,000, Idaho law permits a new title to be issued and the "salvage" brand to be removed from the title. A purchaser of such vehicle would not know, from the title, he was receiving a vehicle previously declared to be "salvage." Idaho is one of the few states that permits the "salvage" brand to be removed for these vehicles, and the Idaho consumers are deprived of this information. This legislation treats all salvage vehicles alike, regardless of age or value. However, as to vehicles older than five years or with a value of less than $6,000, that have been repaired under the personal supervision of the owner, the Department of Transportation may, upon the affidavit of the owner as to facts relating to the repair of the vehicle, issue a title showing a "reconstructed vehicle" brand without inspecting the vehicle. However, the purchaser of such vehicle will have necessary information to make an informed decision as to the purchase. FISCAL NOTE There will be no fiscal impact on state or local funds. Contact Name: Rep. Bob Nonini Name: Bill Roden, Idaho State Independent Automobile Dealers Association Phone: 336-7930 STATEMENT OF PURPOSE/FISCAL NOTE H 727