Bill Text: OH HB468 | 2013-2014 | 130th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relative to salvage motor vehicles and junk motor vehicles.

Spectrum: Partisan Bill (Republican 10-0)

Status: (Passed) 2014-12-18 - Governor' Action [HB468 Detail]

Download: Ohio-2013-HB468-Engrossed.html

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As Passed by the Senate

130th General Assembly Regular Session 2013-2014

Sub. H. B. No. 468

Representatives Sears, McGregor 

Cosponsors: Representatives Becker, Hackett, Henne, Wachtmann Speaker Batchelder 

Senators Bacon, Uecker, Jordan 

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A BILL

To amend sections 505.871, 4501.25, 4505.061,

1

4505.11, 4738.01, 4738.02, 4738.03, 4738.17, and

2

4738.99, to enact sections 4738.021, 4738.022, and

3

4738.031, and to repeal section 4738.18 of the

4

Revised Code relative to salvage motor vehicles

5

and junk motor vehicles.

6

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 505.871, 4501.25, 4505.061, 4505.11,	7
4738.01, 4738.02, 4738.03, 4738.17, and 4738.99 be amended and	8
sections 4738.021, 4738.022, and 4738.031 of the Revised Code be	9
enacted to read as follows:	10

Sec. 505.871. (A) A board of township trustees may provide,	11
by resolution, for the removal of any vehicle in the	12
unincorporated territory of the township that the board determines	13
is a junk motor vehicle, as defined in section 505.173 of the	14
Revised Code.	15

(B) If a junk motor vehicle is located on public property,	16
the board of township trustees may provide in the resolution for	17
the immediate removal of the vehicle.	18

(C)(1) If a junk motor vehicle is located on private	19
property, the board of township trustees may provide in the	20
resolution for the removal of the vehicle not sooner than fourteen	21
days after the board serves written notice of its intention to	22
remove or cause the removal of the vehicle on the owner of the	23
land and any holders of liens of record on the land.	24

(2) The notice provided under this division shall generally	25
describe the vehicle to be removed and indicate all of the	26
following:	27

(a) The board has determined that the vehicle is a junk motor	28
vehicle.	29

(b) If the owner of the land fails to remove the vehicle	30
within fourteen days after service of the notice, the board may	31
remove or cause the removal of the vehicle.	32

(c) Any expenses the board incurs in removing or causing the	33
removal of the vehicle may be entered upon the tax duplicate and	34
become a lien upon the land from the date of entry.	35

(3) The board shall serve the notice under this division by	36
sending it by certified mail, return receipt requested, to the	37
owner of the land, if the owner resides in the unincorporated	38
territory of the township or if the owner resides outside the	39
unincorporated territory of the township and the owner's address	40
is known or ascertainable through an exercise of reasonable	41
diligence. The board also shall send notice in such manner to any	42
holders of liens of record on the land. If a notice sent by	43
certified mail is refused or unclaimed, or if an owner's address	44
is unknown and cannot reasonably be ascertained by an exercise of	45
reasonable diligence, the board shall publish the notice once in a	46
newspaper of general circulation in the township before the	47
removal of the vehicle, and, if the land contains any structures,	48
the board also shall post the notice on the principal structure on	49
the land.	50

A notice sent by certified mail shall be deemed to be served	51
for purposes of this section on the date it was received as	52
indicated by the date on a signed return receipt. A notice given	53
by publication shall be deemed to be served for purposes of this	54
section on the date of the newspaper publication.	55

(D) The board of township trustees may cause the removal or	56
may employ the labor, materials, and equipment necessary to remove	57
a junk motor vehicle under this section. All expenses incurred in	58
removing or causing the removal of a junk motor vehicle, when	59
approved by the board, shall be paid out of the township general	60
fund from moneys not otherwise appropriated, except that if the	61
expenses exceed five hundred dollars, the board may borrow moneys	62
from a financial institution to pay the expenses in whole or in	63
part.	64

(E) The board of township trustees may utilize any lawful	65
means to collect the expenses incurred in removing or causing the	66
removal of a junk motor vehicle under this section, including any	67
fees or interest paid to borrow moneys under division (D) of this	68
section. The board may direct the township fiscal officer to	69
certify the expenses and a description of the land to the county	70
auditor, who shall place the expenses upon the tax duplicate as a	71
lien upon the land to be collected as other taxes and returned to	72
the township general fund.	73

(F)(1) As used in this division:

74

(a) "Motor vehicle salvage dealer" has the same meaning as in	75
section 4738.01 of the Revised Code.	76

(b) "Scrap metal processing facility" has the same meaning as	77
in section 4737.05 of the Revised Code.	78

(2) Notwithstanding section 4513.63 of the Revised Code, if a	79
junk motor vehicle is removed and disposed of in accordance with	80
this section, the clerk of courts of the county shall issue a	81
salvage certificate of title for that junk motor vehicle to a	82
motor vehicle salvage dealer licensed pursuant to Chapter 4738. of	83
the Revised Code or a scrap metal processing facility licensed	84
pursuant to sections 4737.05 to 4737.12 of the Revised Code if all	85
of the following conditions are satisfied:	86

(a) The board of township trustees has entered into a	87
contract with the motor vehicle salvage dealer or scrap metal	88
processing facility for the disposal or removal of the junk motor	89
vehicle in accordance with section 505.85 of the Revised Code.	90

(b) The fiscal officer for the board of township trustees	91
executes in triplicate an affidavit prescribed by the registrar of	92
motor vehicles describing the junk motor vehicle and the manner of	93
removal or disposal and certifying that all requirements of this	94
section and the notice and records search requirements of section	95
4505.101 of the Revised Code have been satisfied.	96

(c) The board of township trustees retains the original	97
affidavit for the board's records and furnishes the remaining two	98
copies of the affidavit to the motor vehicle salvage dealer or	99
scrap metal processing facility.	100

(d) The motor vehicle salvage dealer or scrap metal	101
processing facility presents one copy of the affidavit to the	102
clerk.	103

(3) The clerk shall issue the salvage certificate of title,	104
free and clear of all liens and encumbrances, not later than	105
thirty days after the motor vehicle salvage dealer or scrap metal	106
processing facility presents the affidavit pursuant to division	107
(F)(2) of this section.	108

(G) Notwithstanding section 4513.65 of the Revised Code, but	109
subject to division (G)(H)(2) of this section, any collector's	110
vehicle that meets the definition of a junk motor vehicle is	111
subject to removal under this section.	112

(G)(H)(1) Nothing in this section affects the authority of a	113
board of township trustees to adopt and enforce resolutions under	114
section 505.173 of the Revised Code to regulate the storage of	115
junk motor vehicles on private or public property in the	116
unincorporated territory of the township.	117

(2) A resolution adopted under this section is subject to the	118
same restrictions specified in division (A) of section 505.173 of	119
the Revised Code for resolutions adopted under that section.	120

Sec. 4501.25.  There is hereby created in the state treasury	121
the state bureau of motor vehicles fund. The fund shall consist of	122
all money collected by the registrar of motor vehicles, including	123
taxes, fees, and fines levied, charged, or referred to in Chapters	124
4501., 4503., 4505., 4506., 4507., 4509., 4510., 4511., 4517.,	125
4519., and 4521., and sections 3123.59, 2935.27, 2937.221,	126
3123.59, 4738.06, and 4738.13, and 4738.18 of the Revised Code	127
unless otherwise designated by law. The fund shall be used to pay	128
the expenses of administering the law relative to the powers and	129
duties of the registrar of motor vehicles. All investment earnings	130
of the fund shall be retained by the fund.	131

Sec. 4505.061.  If the application for a certificate of title	132
refers to a motor vehicle last previously registered in another	133
state, the application shall be accompanied by a physical	134
inspection certificate issued by the department of public safety	135
verifying the make, body type, model, and manufacturer's vehicle	136
identification number of the motor vehicle for which the	137
certificate of title is desired. The physical inspection	138
certificate shall be in such form as is designated by the	139
registrar of motor vehicles. The physical inspection of the motor	140
vehicle shall be made at a deputy registrar's office, or at an	141
established place of business operated by a licensed motor vehicle	142
dealer. Additionally, the physical inspection of a salvage vehicle	143
owned by an insurance company may be made at an established place	144
of business operated by a salvage motor vehicle salvage dealer,	145
salvage motor vehicle auction, or salvage motor vehicle pool	146
licensed under Chapter 4738. of the Revised Code. The deputy	147
registrar, the motor vehicle dealer, or the salvage motor vehicle	148
salvage dealer, salvage motor vehicle auction, or salvage motor	149
vehicle pool may charge a maximum fee of two dollars and	150
seventy-five cents commencing on July 1, 2001, three dollars and	151
twenty-five cents commencing on January 1, 2003, and three dollars	152
and fifty cents commencing on January 1, 2004, for conducting the	153
physical inspection.	154

The clerk of the court of common pleas shall charge a fee of	155
one dollar and fifty cents for the processing of each physical	156
inspection certificate. The clerk shall retain fifty cents of the	157
one dollar and fifty cents so charged and shall pay the remaining	158
one dollar to the registrar by monthly returns, which shall be	159
forwarded to the registrar not later than the fifth day of the	160
month next succeeding that in which the certificate is received by	161
the clerk. The registrar shall pay such remaining sums into the	162
state bureau of motor vehicles fund established by section 4501.25	163
of the Revised Code.	164

Sec. 4505.11. This section shall also apply to all-purpose	165
vehicles and off-highway motorcycles as defined in section 4519.01	166
of the Revised Code.	167

(A) Each owner of a motor vehicle and each person mentioned	168
as owner in the last certificate of title, when the motor vehicle	169
is dismantled, destroyed, or changed in such manner that it loses	170
its character as a motor vehicle, or changed in such manner that	171
it is not the motor vehicle described in the certificate of title,	172
shall surrender the certificate of title to that motor vehicle to	173
a clerk of a court of common pleas, and the clerk, with the	174
consent of any holders of any liens noted on the certificate of	175
title, then shall enter a cancellation upon the clerk's records	176
and shall notify the registrar of motor vehicles of the	177
cancellation.	178

Upon the cancellation of a certificate of title in the manner	179
prescribed by this section, any clerk and the registrar of motor	180
vehicles may cancel and destroy all certificates and all	181
memorandum certificates in that chain of title.	182

(B)(1) If an Ohio certificate of title or salvage certificate	183
of title to a motor vehicle is assigned to a salvage dealer, the	184
dealer is not required to obtain an Ohio certificate of title or a	185
salvage certificate of title to the motor vehicle in the dealer's	186
own name if the dealer dismantles or destroys the motor vehicle,	187
indicates the number of the dealer's motor vehicle salvage	188
dealer's license on it, marks "FOR DESTRUCTION" across the face of	189
the certificate of title or salvage certificate of title, and	190
surrenders the certificate of title or salvage certificate of	191
title to a clerk of a court of common pleas as provided in	192
division (A) of this section. If the salvage dealer retains the	193
motor vehicle for resale, the dealer shall make application for a	194
salvage certificate of title to the motor vehicle in the dealer's	195
own name as provided in division (C)(1) of this section.	196

(2) At the time any salvage motor vehicle is sold at auction	197
or through a pool, the salvage motor vehicle auction or salvage	198
motor vehicle pool shall give a copy of the salvage certificate of	199
title or a copy of the certificate of title marked "FOR	200
DESTRUCTION" to the purchaser.	201

(C)(1) When an insurance company declares it economically	202
impractical to repair such a motor vehicle and has paid an agreed	203
price for the purchase of the motor vehicle to any insured or	204
claimant owner, the insurance company shall proceed as follows:	205

(a) If an insurance company receives the certificate of title	206
and the motor vehicle, within thirty business days, the insurance	207
company shall deliver the certificate of title to a clerk of a	208
court of common pleas and shall make application for a salvage	209
certificate of title.	210

(b) If an insurance company obtains possession of the motor	211
vehicle but is unable to obtain the properly endorsed certificate	212
of title for the motor vehicle within thirty business days	213
following the vehicle's owner or lienholder's acceptance of the	214
insurance company's payment for the vehicle, the insurance company	215
may apply to the clerk of a court of common pleas for a salvage	216
certificate of title without delivering the certificate of title	217
for the motor vehicle. The application shall be accompanied by	218
evidence that the insurance company has paid a total loss claim on	219
the vehicle, a copy of the written request for the certificate of	220
title on the insurance company's letterhead, and the original	221
certified mail, return receipt notice, addressed to the last known	222
owner of the vehicle and any known lienholder, to obtain the	223
certificate of title.	224

(c) Upon receipt of a properly completed application for a	225
salvage certificate of title as described in division (C)(1)(a) or	226
(b) or (C)(2) of this section, the clerk shall issue the salvage	227
certificate of title on a form, prescribed by the registrar, that	228
shall be easily distinguishable from the original certificate of	229
title and shall bear the same information as the original	230
certificate of title except that it may bear a different number	231
than that of the original certificate of title. ExceptThe salvage	232
certificate of title shall include the following notice in bold	233
lettering:	234

"SALVAGE MOTOR VEHICLE - PURSUANT TO R.C. 4738.01."

235

Except as provided in division (C)(3) of this section, the	236
salvage certificate of title shall be assigned by the insurance	237
company to a salvage dealer or any other person for use as	238
evidence of ownership upon the sale or other disposition of the	239
motor vehicle, and the salvage certificate of title shall be	240
transferrable to any other person. The clerk shall charge a fee of	241
four dollars for the cost of processing each salvage certificate	242
of title.	243

(2) If an insurance company requests that a salvage motor	244
vehicle auction take possession of a motor vehicle that is the	245
subject of an insurance claim, and subsequently the insurance	246
company denies coverage with respect to the motor vehicle or does	247
not otherwise take ownership of the motor vehicle, the salvage	248
motor vehicle auction may proceed as follows. After the salvage	249
motor vehicle auction has possession of the motor vehicle for	250
forty-five days, it may apply to the clerk of a court of common	251
pleas for a salvage certificate of title without delivering the	252
certificate of title for the motor vehicle. The application shall	253
be accompanied by a copy of the written request that the vehicle	254
be removed from the facility on the salvage motor vehicle	255
auction's letterhead, and the original certified mail, return	256
receipt notice, addressed to the last known owner of the vehicle	257
and any known lienholder, requesting that the vehicle be removed	258
from the facility of the salvage motor vehicle auction. Upon	259
receipt of a properly completed application, the clerk shall	260
follow the process as described in division (C)(1)(c) of this	261
section. The salvage certificate of title so issued shall be free	262
and clear of all liens.	263

(3) If an insurance company considers a motor vehicle as	264
described in division (C)(1)(a) or (b) of this section to be	265
impossible to restore for highway operation, the insurance company	266
may assign the certificate of title to the motor vehicle to a	267
salvage dealer or scrap metal processing facility and send the	268
assigned certificate of title to the clerk of the court of common	269
pleas of any county. The insurance company shall mark the face of	270
the certificate of title "FOR DESTRUCTION" and shall deliver a	271
photocopy of the certificate of title to the salvage dealer or	272
scrap metal processing facility for its records.	273

(4) If an insurance company declares it economically	274
impractical to repair a motor vehicle, agrees to pay to the	275
insured or claimant owner an amount in settlement of a claim	276
against a policy of motor vehicle insurance covering the motor	277
vehicle, and agrees to permit the insured or claimant owner to	278
retain possession of the motor vehicle, the insurance company	279
shall not pay the insured or claimant owner any amount in	280
settlement of the insurance claim until the owner obtains a	281
salvage certificate of title to the vehicle and furnishes a copy	282
of the salvage certificate of title to the insurance company.	283

(D) When a self-insured organization, rental or leasing	284
company, or secured creditor becomes the owner of a motor vehicle	285
that is burned, damaged, or dismantled and is determined to be	286
economically impractical to repair, the self-insured organization,	287
rental or leasing company, or secured creditor shall do one of the	288
following:	289

(1) Mark the face of the certificate of title to the motor	290
vehicle "FOR DESTRUCTION" and surrender the certificate of title	291
to a clerk of a court of common pleas for cancellation as	292
described in division (A) of this section. The self-insured	293
organization, rental or leasing company, or secured creditor then	294
shall deliver the motor vehicle, together with a photocopy of the	295
certificate of title, to a salvage dealer or scrap metal	296
processing facility and shall cause the motor vehicle to be	297
dismantled, flattened, crushed, or destroyed.	298

(2) Obtain a salvage certificate of title to the motor	299
vehicle in the name of the self-insured organization, rental or	300
leasing company, or secured creditor, as provided in division	301
(C)(1) of this section, and then sell or otherwise dispose of the	302
motor vehicle. If the motor vehicle is sold, the self-insured	303
organization, rental or leasing company, or secured creditor shall	304
obtain a salvage certificate of title to the motor vehicle in the	305
name of the purchaser from a clerk of a court of common pleas.	306

(E) If a motor vehicle titled with a salvage certificate of	307
title is restored for operation upon the highways, application	308
shall be made to a clerk of a court of common pleas for a	309
certificate of title. Upon inspection by the state highway patrol,	310
which shall include establishing proof of ownership and an	311
inspection of the motor number and vehicle identification number	312
of the motor vehicle and of documentation or receipts for the	313
materials used in restoration by the owner of the motor vehicle	314
being inspected, which documentation or receipts shall be	315
presented at the time of inspection, the clerk, upon surrender of	316
the salvage certificate of title, shall issue a certificate of	317
title for a fee prescribed by the registrar. The certificate of	318
title shall be in the same form as the original certificate of	319
title and shall bear the words "REBUILT SALVAGE" in black boldface	320
letters on its face. Every subsequent certificate of title,	321
memorandum certificate of title, or duplicate certificate of title	322
issued for the motor vehicle also shall bear the words "REBUILT	323
SALVAGE" in black boldface letters on its face. The exact location	324
on the face of the certificate of title of the words "REBUILT	325
SALVAGE" shall be determined by the registrar, who shall develop	326
an automated procedure within the automated title processing	327
system to comply with this division. The clerk shall use	328
reasonable care in performing the duties imposed on the clerk by	329
this division in issuing a certificate of title pursuant to this	330
division, but the clerk is not liable for any of the clerk's	331
errors or omissions or those of the clerk's deputies, or the	332
automated title processing system in the performance of those	333
duties. A fee of fifty dollars shall be assessed by the state	334
highway patrol for each inspection made pursuant to this division	335
and shall be deposited into the state highway safety fund	336
established by section 4501.06 of the Revised Code.	337

(F) No person shall operate upon the highways in this state a	338
motor vehicle, title to which is evidenced by a salvage	339
certificate of title, except to deliver the motor vehicle pursuant	340
to an appointment for an inspection under this section.	341

(G) No motor vehicle the certificate of title to which has	342
been marked "FOR DESTRUCTION" and surrendered to a clerk of a	343
court of common pleas shall be used for anything except parts and	344
scrap metal.	345

(H)(1) Except as otherwise provided in this division, an	346
owner of a manufactured or mobile home that will be taxed as real	347
property pursuant to division (B) of section 4503.06 of the	348
Revised Code shall surrender the certificate of title to the	349
auditor of the county containing the taxing district in which the	350
home is located. An owner whose home qualifies for real property	351
taxation under divisions (B)(1)(a) and (b) of section 4503.06 of	352
the Revised Code shall surrender the certificate within fifteen	353
days after the home meets the conditions specified in those	354
divisions. The auditor shall deliver the certificate of title to	355
the clerk of the court of common pleas who issued it.	356

(2) If the certificate of title for a manufactured or mobile	357
home that is to be taxed as real property is held by a lienholder,	358
the lienholder shall surrender the certificate of title to the	359
auditor of the county containing the taxing district in which the	360
home is located, and the auditor shall deliver the certificate of	361
title to the clerk of the court of common pleas who issued it. The	362
lienholder shall surrender the certificate within thirty days	363
after both of the following have occurred:	364

(a) The homeowner has provided written notice to the	365
lienholder requesting that the certificate of title be surrendered	366
to the auditor of the county containing the taxing district in	367
which the home is located.	368

(b) The homeowner has either paid the lienholder the	369
remaining balance owed to the lienholder, or, with the	370
lienholder's consent, executed and delivered to the lienholder a	371
mortgage on the home and land on which the home is sited in the	372
amount of the remaining balance owed to the lienholder.	373

(3) Upon the delivery of a certificate of title by the county	374
auditor to the clerk, the clerk shall inactivate it and maintain	375
it in the automated title processing system for a period of thirty	376
years.	377

(4) Upon application by the owner of a manufactured or mobile	378
home that is taxed as real property pursuant to division (B) of	379
section 4503.06 of the Revised Code and that no longer satisfies	380
divisions (B)(1)(a) and (b) or divisions (B)(2)(a) and (b) of that	381
section, the clerk shall reactivate the record of the certificate	382
of title that was inactivated under division (H)(3) of this	383
section and shall issue a new certificate of title, but only if	384
the application contains or has attached to it all of the	385
following:	386

(a) An endorsement of the county treasurer that all real	387
property taxes charged against the home under Title LVII of the	388
Revised Code and division (B) of section 4503.06 of the Revised	389
Code for all preceding tax years have been paid;	390

(b) An endorsement of the county auditor that the home will	391
be removed from the real property tax list;	392

(c) Proof that there are no outstanding mortgages or other	393
liens on the home or, if there are such mortgages or other liens,	394
that the mortgagee or lienholder has consented to the reactivation	395
of the certificate of title.	396

(I)(1) Whoever violates division (F) of this section shall be	397
fined not more than two thousand dollars, imprisoned not more than	398
one year, or both.	399

(2) Whoever violates division (G) of this section shall be	400
fined not more than one thousand dollars, imprisoned not more than	401
six months, or both.	402

Sec. 4738.01.  As used in sections 4738.01 to 4738.16 of the	403
Revised Code:	404

(A) "Motor vehicle salvage dealer" means any person who	405
engages in business primarily for the purpose of selling salvage	406
motor vehicle parts and secondarily for the purpose of selling at	407
retail salvage motor vehicles or manufacturing or selling a	408
product of gradable scrap metal.	409

(B) "Salvage motor vehicle" means any motor vehicle which is	410
in a wrecked, dismantled, or worn out condition, or unfit for	411
operation as a motor vehicle.	412

(C) "Salvage motor vehicle auction" means any person who on	413
his ownthe person's behalf or as an agent for a third party	414
engages in business for the purpose of auctioning salvage motor	415
vehicles to motor vehicle salvage dealers.	416

(D) "Salvage motor vehicle pool" means any person who as an	417
agent for a third party engages in business for the purpose of	418
storing, displaying, and offering for sale salvage motor vehicles	419
to motor vehicle salvage dealers.	420

(E) "Engaging in business" means commencing, conducting, or	421
continuing in business, or liquidating a business when the	422
liquidator thereof holds himselfthe liquidator out to be	423
conducting such business; making a casual sale or otherwise making	424
transfers in the ordinary course of business when the transfers	425
are made in connection with the disposition of all or	426
substantially all of the transferor's assets is not engaging in	427
business.	428

(F) "Retail sale" or "sale at retail" means the act or	429
attempted act of selling, bartering, exchanging, or otherwise	430
disposing of salvage motor vehicles or salvage motor vehicle parts	431
to an ultimate purchasera person who purchases the salvage motor	432
vehicle or salvage motor vehicle parts for use as a consumer.	433

(G) "UltimateAuthorized purchaser" means, with respect to	434
anya person who purchases a salvage motor vehicle orfrom a	435
salvage motor vehicle part, a purchaser who in good faith	436
purchases suchauction or salvage motor vehicle or partpoolfor	437
purposes other than resale and is not licensed as a motor vehicle	438
dealer under Chapter 4517. of the Revised Code.and who satisfies	439
either of the following criteria:	440

(1) The person is a motor vehicle salvage dealer who is	441
licensed pursuant to this chapter; a junk yard that is licensed	442
pursuant to section 4737.07 of the Revised Code; a scrap metal	443
processing facility that is licensed pursuant to section 4737.07	444
of the Revised Code; a used motor vehicle dealer who is licensed	445
pursuant to section 4517.02 of the Revised Code; a salvage	446
dismantler or automotive recycler; or a salvage dealer, junk yard,	447
scrap metal processing facility, used motor vehicle dealer,	448
salvage dismantler, or automotive recycler business authorized to	449
purchase salvage motor vehicles by another state, country, or	450
jurisdiction.	451

(2) The person does not satisfy the criteria described in	452
division (G)(1) of this section but has purchased not more than a	453
total of five salvage motor vehicles in the current calendar year	454
from any salvage motor vehicle auction or salvage motor vehicle	455
pool located in Ohio.	456

(H) "Business" includes any activities engaged in by any	457
person for the object of gain, benefit, or advantage either direct	458
or indirect.	459

(I) "Casual sale" means any transfer of a salvage motor	460
vehicle by a person other than a motor vehicle salvage dealer,	461
salvage motor vehicle auction, or salvage motor vehicle pool, to	462
an ultimate purchasera person who purchases the salvage motor	463
vehicle for use as a consumer.	464

Sec. 4738.02.  (A) Except as provided in divisions (B) and	465
(D)(E) of this section, no person shall engage in the business of	466
selling at retail salvage motor vehicles or salvage motor vehicle	467
parts, or assume to engage in any such business without first	468
obtaining a motor vehicle salvage dealer's license pursuant to	469
this chapter.	470

(B)(1) Except as provided in divisions (B)(1) and (C)(1) of	471
section 4738.03 of the Revised Codeand (E) of this section, no	472
person shall engage in the business of selling at retail salvage	473
motor vehicles nor, other than as a lessor, provide a location or	474
a space for the sale of salvage motor vehicles without first	475
obtaining a motor vehicle salvage dealer's license, a salvage	476
motor vehicle auction license, or a salvage motor vehicle pool	477
license pursuant to this chapter.	478

(2) Notwithstanding division (B)(1) of this section, a person	479
may sell salvage motor vehicles at retail to or through a salvage	480
motor vehicle auction or salvage motor vehicle pool without	481
obtaining any license pursuant to this chapter if both of the	482
following apply:	483

(a) The acquisition of salvage motor vehicles is incidental	484
to the primary business of the person.	485

(b) The disposal of those salvage motor vehicles is	486
incidental to the primary business of the person.	487

(C) No person shall make more than five casual sales of	488
salvage motor vehicles in a twelve-month period, commencing with	489
the day of the month in which the first such sale is made, nor	490
provide a location or space for the sale at retail of salvage	491
motor vehicles, without obtaining a motor vehicle salvage dealer's	492
license pursuant to this chaptercalendar year.	493

(C)(D) Except as provided in division (D)(E) of this section,	494
no person shall operate as a salvage motor vehicle auction or	495
salvage motor vehicle pool without first obtaining the appropriate	496
license pursuant to this chapter.	497

(D)(E) In case of the dissolution of a partnership by death,	498
the surviving partner may operate under any license obtained by	499
the partnership pursuant to this chapter for a period of sixty	500
days and the heirs or representatives of deceased persons and	501
receivers or trustees in bankruptcy appointed by any competent	502
authority may operate under the license of the person succeeded in	503
possession by the heir, representative, receiver, or trustee in	504
bankruptcy.	505

(E)(F) Nothing in this chapter applies to any public officer	506
performing his official duties.	507

Sec. 4738.021. (A) Every salvage motor vehicle auction and	508
salvage motor vehicle pool shall do all of the following:	509

(1) Keep an electronic record of all sales of salvage motor	510
vehicles and shall include in the record the make, model, year,	511
vehicle identification number, and the names and addresses of the	512
purchaser and seller of the salvage motor vehicle.	513

(2) Obtain from any authorized purchaser of an Ohio salvage	514
motor vehicle a copy of a driver's license, passport, or other	515
government-issued identification. Every salvage motor vehicle	516
auction and salvage motor vehicle pool shall maintain a copy of	517
this identification for a period of two years.	518

(3) Obtain from any person who is an authorized purchaser as	519
defined in division (G)(1) of section 4738.01 of the Revised Code	520
documented proof of any required license or other authorization to	521
do business pursuant to this chapter or, for any person residing	522
in a state, jurisdiction, or country that does not issue a motor	523
vehicle salvage dealer, junk yard, scrap metal processing	524
facility, used motor vehicle dealer, salvage dismantler, or	525
automotive recycler license, a declaration under penalty of	526
perjury that the authorized purchaser is authorized to purchase	527
salvage vehicles in that person's state, jurisdiction, or country.	528
The declaration may be submitted by the authorized purchaser in	529
electronic or written format. Every salvage motor vehicle auction	530
and salvage motor vehicle pool shall maintain a copy of this	531
documentation for a period of two years.	532

(4) Obtain from any person who is an authorized purchaser as	533
defined in division (G)(2) of section 4738.01 of the Revised Code	534
a declaration under penalty of perjury that the authorized	535
purchaser is not making a purchase in excess of the applicable	536
limit identified in that division. The salvage motor vehicle	537
auction or salvage motor vehicle pool shall maintain that	538
declaration for a period of two years. The declaration may be	539
submitted by the authorized purchaser in electronic or written	540
format.	541

(5) For any sale of a salvage motor vehicle to a person	542
residing in another country, stamp the words "FOR EXPORT ONLY" on	543
both of the following:	544

(a) The face of the vehicle title so as not to obscure the	545
name, date, or mileage statement;	546

(b) In each unused reassignment space on the back of the	547
title.	548

The words "FOR EXPORT ONLY" shall be in all capital, black	549
letters, be at least two inches wide, and be clearly legible.	550

(B) Every salvage motor vehicle auction and salvage motor	551
vehicle pool shall submit the information collected pursuant to	552
division (A)(1) of this section on a monthly basis to a third	553
party consolidator selected by the registrar of motor vehicles	554
pursuant to the rules adopted by the registrar in division (C) of	555
this section.	556

(C)(1) Within twelve months after the effective date of this	557
section, the registrar shall contract with an entity approved as a	558
third party data consolidator to the national motor vehicle title	559
information system for the development of a statewide database for	560
the submission of the information collected pursuant to division	561
(A)(1) of this section. The system shall be used to maintain an	562
accurate record of all sales conducted by a salvage motor vehicle	563
auction or salvage motor vehicle pool. All expenses of this	564
contract shall be paid from the state bureau of motor vehicles	565
fund created in section 4501.25 of the Revised Code.	566

(2) The registrar may adopt any rules pursuant to Chapter	567
119. of the Revised Code as necessary to facilitate the timely	568
submission of the information required pursuant to this section.	569

The registrar shall make the information the registrar	570
receives under this section available to any state or local law	571
enforcement agency upon request.	572

Sec. 4738.022. Every salvage motor vehicle auction and	573
salvage motor vehicle pool shall comply with the reporting	574
requirements of the national motor vehicle title information	575
system.	576

Sec. 4738.03.  (A) No person licensed as a motor vehicle	577
salvage dealer under this chapter shall engage in the business of	578
selling at retail salvage motor vehicle parts or salvage motor	579
vehicles, unless the business is operated primarily for the	580
purpose of selling at retail salvage motor vehicle parts. Any	581
person operating such a business primarily for the purpose of	582
selling at retail salvage motor vehicle parts may secondarily sell	583
at retail salvage motor vehicles or manufacture a product of	584
gradable scrap metal for sale to scrap metal processors or any	585
other consumer.	586

(B) No person licensed as a salvage motor vehicle auction	587
under this chapter shall:	588

(1) Make a casual sale ofKnowingly sell a salvage motor	589
vehicle to anyone other than an authorized purchaser;	590

(2) Sell a salvage motor vehicle when having reasonable cause	591
to believe it is not offered by the legal owner thereof;	592

(3) Sell a salvage motor vehicle to any person except a	593
person licensed as a motor vehicle salvage dealer under this	594
chapter;	595

(4)(3) Fail to make an Ohio salvage certificate of title	596
available to the purchaser of a salvage motor vehicle sold by the	597
salvage motor vehicle auction, before payment for the salvage	598
motor vehicle is completed;	599

(5)(4) Operate as a motor vehicle salvage dealer at the same	600
location where any salvage motor vehicle auction is operated.	601

(C) No person licensed as a salvage motor vehicle pool under	602
this chapter shall:	603

(1) Make a casual sale ofKnowingly sell a salvage motor	604
vehicle to anyone other than an authorized purchaser;	605

(2) Sell a salvage motor vehicle when having reasonable cause	606
to believe it is not offered by the legal owner thereof;	607

(3) Sell a salvage motor vehicle to any person except a	608
person licensed as a motor vehicle salvage dealer under this	609
chapter;	610

(4)(3) Fail to make an Ohio salvage certificate of title	611
available to the purchaser of a salvage motor vehicle sold by the	612
salvage motor vehicle pool, before payment for the salvage motor	613
vehicle is completed;	614

(5)(4) Operate as a motor vehicle salvage dealer at the same	615
location where any salvage motor vehicle pool is operated.	616

Sec. 4738.031. No person who is not an authorized purchaser	617
shall purchase a salvage motor vehicle from a salvage motor	618
vehicle auction or salvage motor vehicle pool.	619

Sec. 4738.17. (A) No person who is not licensed as a salvage	620
motor vehicle auction or salvage motor vehicle pool shall engage	621
in the business of selling salvage motor vehicle parts or salvage	622
motor vehicles at wholesale. Any	623

(B)(1) Any person licensed as a salvage motor vehicle dealer	624
under this chapter may sell salvage motor vehicle parts or salvage	625
motor vehicles at wholesale.	626

(2) Notwithstanding division (A) of this section, a person	627
may sell salvage motor vehicles or salvage motor vehicle parts at	628
wholesale to or through a salvage motor vehicle auction or salvage	629
motor vehicle pool without obtaining any license pursuant to this	630
chapter if both of the following apply:	631

(a) The acquisition of salvage motor vehicles or salvage	632
motor vehicle parts is incidental to the primary business of the	633
person.	634

(b) The disposal of those salvage motor vehicles or salvage	635
motor vehicle parts is incidental to the primary business of the	636
person.	637

Sec. 4738.99.  (A) Whoever violates section 4738.02 or	638
4738.03 of the Revised Code is guilty of a misdemeanor of the	639
second degree on a first offense; on each subsequent offense, such	640
person is guilty of a misdemeanor of the first degree.	641

(B) Whoever violates section 4738.01, sections 4738.04 to	642
4738.13, or division (B) of section 4738.16 of the Revised Code is	643
guilty of a misdemeanor of the fourth degree.	644

(C) Whoever violates section 4738.031, 4738.14, or 4738.15 of	645
the Revised Code is guilty of a minor misdemeanor.	646

Section 2. That existing sections 505.871, 4501.25, 4505.061,	647
4505.11, 4738.01, 4738.02, 4738.03, 4738.17, and 4738.99 and	648
section 4738.18 of the Revised Code are hereby repealed.	649

Section 3. Not later than January 1, 2018, the Common Sense	650
Initiative Office shall submit a report to the General Assembly	651
making the following findings and recommendations:	652

(A) The cost-effectiveness of having the Registrar of Motor	653
Vehicles contract with a data consolidator to the National Motor	654
Vehicle Title Information System as required in division (C)(1) of	655
section 4738.021 of the Revised Code;	656

(B) Whether or not to continue the reporting process as	657
required under divisions (B) and (C) of section 4738.021 of the	658
Revised Code.	659