Bill Text: CA AB1901 | 2023-2024 | Regular Session | Introduced

California Assembly Bill 1901

CA State Legislature page for AB1901

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

Bill Title: Vehicles: total loss claim: salvage certificate or nonrepairable vehicle certificate.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2024-09-22 - Chaptered by Secretary of State - Chapter 364, Statutes of 2024. [AB1901 Detail]

Download: California-2023-AB1901-Introduced.html

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1901

Introduced by Assembly Member Chen

January 23, 2024

An act to add Section 11515.3 to the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL'S DIGEST

AB 1901, as introduced, Chen. Vehicles: total loss claim: salvage certificate or nonrepairable vehicle certificate.

Existing law requires, if an insurance company makes a total loss settlement on a total loss salvage vehicle or a nonrepairable vehicle, the insurance company, an occupational licensee of the Department of Motor Vehicles (DMV) authorized by the insurance company, or a salvage pool authorized by the insurance company to, within 10 days from the settlement of the loss, forward the properly endorsed certificate of ownership or other evidence of ownership acceptable to the DMV, the license plates, and a fee, to the DMV, except as specified, and requires the DMV, upon receipt of those required items, to issue a salvage certificate or a nonrepairable vehicle certificate for the vehicle.

This bill would, if an insurance company requests a salvage pool or an occupational licensee to take possession of a vehicle that is the subject of a total loss claim, and, subsequently, the insurance company does not take ownership of the vehicle, authorize the insurance company to direct the salvage pool or occupational licensee to release the vehicle to the registered and legal owner or lienholder of the vehicle after notice from the insurance company authorizing the release. The bill would require the salvage pool or occupational licensee to send 2 notices to the registered and legal owner and any lienholder of the vehicle informing them that they have 30 days from the date of the first notice and 14 days from the date of the 2nd notice to pick up the vehicle from the salvage pool or occupational licensee before the vehicle is deemed abandoned. If the registered and legal owner or any lienholder of the vehicle does not pick up the vehicle in that timeline, the bill would require the vehicle to be deemed abandoned and would require the vehicle’s certificate of title to be deemed to be assigned to the salvage pool or occupational licensee of the department. The bill would authorize the salvage pool or occupational licensee to request that the DMV issue a salvage certificate or nonrepairable vehicle certificate for the vehicle, as specified, and would require the DMV to issue the certificate upon receipt of a complete application.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 11515.3 is added to the Vehicle Code, to read:

11515.3.

(a) If an insurance company requests a salvage pool authorized by the insurance company or an occupational licensee of the department authorized by the insurance company to take possession of a vehicle that is the subject of a total loss claim, and, subsequently, the insurance company does not take ownership of the vehicle, the insurance company may direct the salvage pool or occupational licensee of the department to release the vehicle to the registered and legal owner or lienholder of the vehicle. The insurance company shall provide the salvage pool or occupational licensee of the department with notice authorizing the release of the vehicle to the vehicle’s registered and legal owner or lienholder. This notice may be sent by mail, electronic mail, or a proprietary electronic system accessed by both the insurance company and the salvage pool or occupational licensee of the department.

(b) Upon receiving notice from an insurance company pursuant to subdivision (a), the salvage pool or occupational licensee of the department shall send two notices to the registered and legal owner and any lienholder of the vehicle informing the registered and legal owner or lienholder that the vehicle is available to pick up. The notice shall inform the owner and any lienholder that the registered and legal owner or lienholder has 30 days from the date of the first notice and 14 days from the date of the second notice to pick up the vehicle from the salvage pool or occupational licensee of the department before the vehicle is deemed abandoned. Notice under this subdivision shall be sent by certified mail or by another commercially available delivery service providing proof of delivery to the address on record with the department.

(c) If the registered and legal owner or any lienholder of the vehicle does not pick up the vehicle within 30 days after the date of the first notice, and within 14 days after the date of the second notice, as described in subdivision (b), the vehicle shall be deemed abandoned, the vehicle’s certificate of title is deemed to be assigned to the salvage pool or occupational licensee of the department, and the salvage pool or occupational licensee of the department, without surrendering the certificate of title, may request, on a form provided by the department, that the department issue a salvage certificate or nonrepairable vehicle certificate that is free and clear of all liens for the vehicle. The request shall be accompanied by an attestation and certification of delivery of the notice required pursuant to subdivision (b) or that the notice was returned undeliverable after the notice was sent to the registered and legal owner and any lienholder, as required pursuant to subdivision (b). Notwithstanding any outstanding liens against the vehicle, the department shall issue a salvage certificate or nonrepairable vehicle certificate that is free and clear of all liens for the vehicle to the salvage pool or occupational licensee of the department in possession of the vehicle upon receipt of a complete application.