Bill Text: MS HB1413 | 2013 | Regular Session | Introduced
Bill Title: Salvage motor vehicles; provide for issuance of certificates of title.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-02-05 - Died In Committee [HB1413 Detail]
Download: Mississippi-2013-HB1413-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Insurance; Ways and Means
By: Representative Moak
House Bill 1413
AN ACT TO PROHIBIT ANY MOTOR VEHICLE FOR WHICH A SALVAGE OR JUNK CERTIFICATE OF TITLE HAS BEEN ISSUED FROM BEING OPERATED ON THE HIGHWAYS OF THIS STATE AND TO PROVIDE EXCEPTIONS THERETO; TO PROVIDE THAT WHEN THE FRAME OR ENGINE IS REMOVED FROM A MOTOR VEHICLE AND NOT IMMEDIATELY REPLACED BY ANOTHER FRAME OR ENGINE, OR WHEN AN INSURANCE COMPANY HAS MADE A SETTLEMENT FOR A TOTAL LOSS OF THE MOTOR VEHICLE, THE MOTOR VEHICLE SHALL BE CONSIDERED SALVAGE; TO REQUIRE THAT THE OWNER OF EVERY MOTOR VEHICLE IN WHICH TOTAL LOSS HAS OCCURRED TO MAKE APPLICATION FOR A SALVAGE CERTIFICATE OF TITLE WITHIN 72 HOURS AFTER THE LOSS OCCURS; TO PROVIDE THE TITLING PROCEDURE TO BE FOLLOWED BY AN INSURANCE COMPANY IF IT OBTAINS A MOTOR VEHICLE IN SETTLEMENT OF AN INSURANCE CLAIM AND THE VEHICLE IS NOT A TOTAL LOSS; TO PROVIDE THAT A TOTAL LOSS OCCURS WHEN AN INSURANCE COMPANY OR ANY OTHER PERSON PAYS OR MAKES OTHER MONETARY SETTLEMENT TO A PERSON WHEN A VEHICLE IS DAMAGED AND THE DAMAGE TO THE VEHICLE IS GREATER THAN OR EQUAL TO 75% OF THE FAIR RETAIL VALUE OF THE VEHICLE BEFORE DAMAGE; TO PROVIDE THAT ANY PERSON ACQUIRING OWNERSHIP OF A DAMAGED MOTOR VEHICLE THAT MEETS THE DEFINITION OF TOTAL LOSS AND FOR WHICH A SALVAGE CERTIFICATE OF TITLE HAS NOT BEEN ISSUED SHALL APPLY FOR A SALVAGE CERTIFICATE OF TITLE AND TO PROVIDE EXCEPTIONS THERETO; TO MAKE IT UNLAWFUL FOR JUNKYARDS AND AUTOMOBILE DISMANTLERS OR RECYCLERS TO HAVE IN THEIR POSSESSION ANY MOTOR VEHICLE THAT IS JUNK OR SALVAGE OR A TOTAL LOSS WHEN THE MANUFACTURER'S VEHICLE IDENTIFICATION NUMBER PLATE OR PLATES HAVE BEEN REMOVED AND TO PROVIDE EXCEPTIONS THERETO; TO MAKE IT UNLAWFUL TO POSSESS, SELL OR EXCHANGE, OR GIVE AWAY A CERTIFICATE OF TITLE, MANUFACTURER'S IDENTIFICATION NUMBER PLATE, OR MOTOR VEHICLE LICENSE PLATE OF ANY MOTOR VEHICLE THAT HAS BEEN SCRAPPED, DISMANTLED OR SOLD AS JUNK OR SALVAGE OR AS A TOTAL LOSS CONTRARY TO THIS ACT; TO PROVIDE FOR THE ISSUANCE OF A SALVAGE CERTIFICATE OF TITLE BY THE DEPARTMENT OF REVENUE AND TO PROVIDE THE FEE THEREFOR; TO AUTHORIZE THE DEPARTMENT OF REVENUE TO ISSUE A CERTIFICATE OF TITLE TO ANY MOTOR VEHICLE FOR WHICH A SALVAGE CERTIFICATE OF TITLE HAS BEEN ISSUED IF THE VEHICLE HAS BEEN COMPLETELY RESTORED TO ITS OPERATING CONDITION WHICH EXISTED BEFORE THE EVENT THAT CAUSED THE SALVAGE CERTIFICATE OF TITLE TO BE ISSUED AND TO PROVIDE THE PROCEDURE FOR OBTAINING A CERTIFICATE OF TITLE FOR SUCH A VEHICLE; TO PROVIDE THAT A SALVAGE VEHICLE THAT HAS BEEN RESTORED TO ITS OPERATING CONDITION WHICH EXISTED BEFORE THE EVENT WHICH CAUSED THE SALVAGE CERTIFICATE OF TITLE TO BE ISSUED SHALL BE ISSUED A CERTIFICATE OF TITLE WHICH SHALL CONTAIN THE WORD "REBUILT"; TO PROVIDE THAT EACH SALVAGE VEHICLE THAT IS REBUILT SHALL BE ISSUED A DECAL, PLATE OR OTHER EMBLEM AS PRESCRIBED BY THE DEPARTMENT OF PUBLIC SAFETY TO REFLECT THAT THE VEHICLE IS REBUILT; TO REQUIRE THAT ANY PERSON WHO SELLS OR OTHERWISE TRANSFERS ANY INTEREST IN ANY VEHICLE FOR WHICH A TITLE BEARING THE DESIGNATION "SALVAGE" OR "REBUILT" HAS BEEN ISSUED SHALL DISCLOSE IN WRITING THE EXISTENCE OF THIS TITLE TO THE TRANSFEREE; TO AMEND SECTIONS 63-21-33 AND 63-21-39, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) No motor vehicle for which a salvage or junk certificate of title has been issued by this state or any other state shall be driven or operated on the highways or other public places of this state. If a vehicle which is in this state and for which a salvage certificate of title has been issued is being restored to its operating condition that existed before the event which caused the salvage certificate of title to issue, the vehicle may be moved to and from repair points as necessary by the rebuilder to complete the restoration or may be moved as permitted by the Department of Public Safety on the day the vehicle is scheduled for inspection or for any other purpose.
(2) When the frame or engine is removed from a motor vehicle and not immediately replaced by another frame or engine, or when an insurance company has paid money or made other monetary settlement as compensation for a total loss of any motor vehicle, the motor vehicle shall be considered to be salvage. The owner of every motor vehicle in which total loss or salvage has occurred shall, within seventy-two (72) hours after the total loss or salvage occurs, make application for a salvage certificate of title to a designated agent and forward to the Department of Revenue the certificate of title to the motor vehicle, whereupon the Department of Revenue shall process the certificate of title in a manner prescribed by law or regulation. An insurance company that pays money or makes other monetary settlement as compensation for total loss of a motor vehicle shall obtain, at the time of payment or monetary settlement, the vehicle's certificate of title and, within seventy-two (72) hours after receiving the certificate of title, shall forward such certificate along with an application for a salvage certificate of title, to the Department of Revenue for processing. In the event the payment or monetary settlement was made because of the theft of the vehicle, which shall be considered a total loss as defined in this section, the insurance company shall forward the vehicle's properly assigned certificate of title as provided in this section to the Department of Revenue as soon as practicable after the vehicle is recovered. When a stolen motor vehicle for which a salvage certificate of title has been issued is later recovered, the owner recorded on the salvage certificate shall assign that certificate to the purchaser.
(3) If an insurance company acquires a motor vehicle in settlement of an insurance claim and holds the vehicle for resale and procures the properly assigned certificate of title from the owner or lienholder within fifteen (15) days after delivery of the vehicle to the insurance company, and if the vehicle was not a total loss as defined by this section, the insurance company is not required to send the certificate of title to the Department of Revenue but, upon transferring the vehicle to another person other than by the creation of a security interest, the insurance company shall execute the space reserved on the reverse of the title for first reassignment by licensed dealer naming therein the transferee and complete an affidavit of acquisition and disposition of the motor vehicle on a form prescribed by the Department of Revenue and deliver the certificate of title, affidavit and any other documents required by the Department of Revenue to the transferee at the time of delivery of the motor vehicle.
(4) For the purposes of this section, a total loss occurs when an insurance company or any other person pays or makes other monetary settlement to a person when a vehicle is damaged and the damage to the vehicle is equal to or greater than seventy-five percent (75%) of the fair retail value of the vehicle prior to damage as set forth in a current edition of a nationally recognized compilation of retail values, including automated data bases, as approved by the Department of Revenue. The compensation for total loss as defined in this subsection does not include payments by an insurer or other person for medical care, bodily injury, vehicle rental, or for anything other than the amount paid for the actual damage to the motor vehicle. Actual damage includes the cost of both labor and parts. A vehicle that has sustained minor damage as a result of theft or vandalism shall not be considered a total loss. Any person acquiring ownership of a damaged motor vehicle that meets the definition of total loss for which a salvage certificate of title has not been issued, other than a scrap metal processor acquiring such vehicle for purposes of recycling into metallic scrap for remelting purposes only, shall apply for a salvage certificate of title. This application shall be made before the vehicle is further transferred but, in any event, within thirty (30) days after ownership is acquired.
(5) It is unlawful for the owner of any junkyard, salvage yard or motor vehicle dismantler and parts recycler or his or her agents or employees to have in his possession any motor vehicle that is junk or salvage or a total loss when the manufacturer's vehicle identification number plate or plates, authorized replacement vehicle identification number plate or plates, or serial plate or plates have been removed, unless previously required to be removed by a statute or law of this state or another jurisdiction.
(6) It is unlawful for a person, firm or corporation to possess, sell or exchange, offer to sell or exchange, or to give away any certificate of title, salvage certificate of title, manufacturer's identification number plate or plates, authorized replacement vehicle identification number plate or plates, serial plate or plates, or motor vehicle license plate or plates of any motor vehicle which has been scrapped, dismantled or sold as junk or salvage or as a total loss contrary to this section, and every officer, agent or employee of a person, firm or corporation, and every person who authorizes, directs, aids in or consents to the possession, sale or exchange, or offer to sell, exchange or give away such certificate of origin, certificate of title, salvage certificate of title, manufacturer's vehicle identification number plate or plates, authorized replacement vehicle identification number plate or plates, serial plate or plates, or motor vehicle license plate or plates contrary to this section, upon conviction, is guilty of a misdemeanor and shall be punished as provided in Section 63-21-71.
(7) The Department of Revenue may issue a salvage certificate of title for a fee of Fifteen Dollars ($15.00) on a form prescribed by the Department of Revenue which provides for assignments of this title. The salvage certificate of title is to replace a certificate of title required to be surrendered by this section. The Department of Revenue shall prescribe necessary forms and procedures to comply with this subsection. Salvage and rebuilt brands contained in certificates of title last issued by another jurisdiction shall be carried forward on the Mississippi certificate of title. The Department of Revenue may carry forward other brand or brands comparable on the Mississippi certificate of title.
(8) It is unlawful for a person to sign as assignor, or for a person to have in his or her possession a salvage certificate of title or any other certificate of title that has been signed by the owner as assignor, without the name of the assignee and other information called for on the title document prescribed by the Department of Revenue. A person who violates this subsection, upon conviction, is guilty of a misdemeanor and shall be punished as provided by law.
(9) Every owner of a salvage or junk motor vehicle who sells or transfers the vehicle to any person other than to a scrap metal processor for purposes of recycling into metallic scrap for remelting purposes only shall provide at the time of the sale or transfer a properly executed assignment and warranty of title to the transferee in the space provided therefor on the salvage certificate of title or junk certificate or as the Department of Revenue prescribes.
(10) The Department of Revenue may issue a certificate of title containing the word "rebuilt" to any motor vehicle for which a salvage certificate has been issued by this or any other state, and the vehicle has, in this state, been completely restored to its operating condition which existed before the event which caused the salvage certificate of title to issue, provided that all requirements of this section have been met. No certificate of title may be issued for any motor vehicle for which a junk certificate of title, junk certificate, permit to dismantle, parts only, or ownership documents issued by another jurisdiction having the same meaning has been issued or for a vehicle which is sold for parts only.
(11) Every owner of a salvage motor vehicle that is in this state and that has been restored in this state to its operating condition which existed before the event which caused the salvage certificate of title to issue shall make application to the Department of Public Safety for an inspection of the vehicle in the form and content as determined by the Department of Public Safety. Each application for inspection of a salvage vehicle that has been so restored shall be accompanied by all of the following:
(a) The outstanding salvage certificate of title or out-of-state title previously issued for the salvage vehicle.
(b) Notarized bills of sale evidencing acquisition of all major component parts (listing the manufacturer's vehicle identification number of the vehicle from which the parts were removed, if parts contain or should contain the manufacturer's vehicle identification number) used to restore the vehicle and bills of sale evidencing acquisition of all minor component parts. Notarization is not required on bills of sale for minor component parts; however, a notarized bill of sale that lists the manufacturer's vehicle identification number of the vehicle from which the parts were removed, if parts contain or should contain the manufacturer's vehicle identification number. A notarized bill of sale bearing the manufacturer's vehicle identification number is required for a transmission.
(c) The owner shall also provide a written affirmation which states the following:
(i) That the owner has rebuilt the vehicle or supervised its rebuilders, including what has been done to restore the vehicle to its operating condition which existed before the event that caused the salvage certificate to issue.
(ii) That the owner personally inspected the completed vehicle and it complies with all safety requirements set forth by the State of Mississippi and any regulations promulgated thereunder.
(iii) That the identification numbers of the restored vehicle and its parts have not, to the knowledge of the owner, been removed, destroyed, falsified, altered or defaced.
(iv) That the salvage certificate of title or out-of-state title certificate attached to the application has not, to the knowledge of the owner, been forged, falsified, altered or counterfeited.
(v) That all information contained on the application and its attachments is true and correct to the knowledge of the owner.
(12) (a) The application fee for each inspection of a restored vehicle shall be Seventy-five Dollars ($75.00), payable by certified funds to the Department of Public Safety, which shall accompany the application for inspection.
(b) All applications for inspection fees received by the Department of Public Safety shall be applied toward the personnel and maintenance costs of the vehicle inspection program. Persons seeking to have vehicles inspected as provided in this section shall first contact the Department of Public Safety substation for the purpose of reserving a specified time to present the vehicle for inspection. Upon receipt of the application for inspection and the fee of Seventy-five Dollars ($75.00), the Department of Public Safety shall inspect the vehicle. Upon successfully passing inspection, a completed inspection certificate shall be issued according to the procedures of the Department of Public Safety. Following inspection, the applicant shall make his application for a new certificate of title to the Department of Revenue, as provided in Section 63-21-15, and shall attach the inspection certificate issued by the Department of Public Safety, the salvage certificate of title of the vehicle, affidavits, bills of sale and other documents that may be required by the Department of Revenue, and the designated agent shall cause such documents to be forwarded to the Department of Revenue, along with the required title fee.
(c) The inspection and certification shall include an examination of the vehicle and its parts to determine that the identification numbers of the vehicle or its parts have not been removed, falsified, altered, defaced, destroyed or tampered with; that the vehicle information contained in the application for certificate of title and supporting documents is true and correct; and that there are no indications that the vehicle or any of its parts are stolen. The certification shall not attest to the roadworthiness or safety condition of the vehicle.
(13) Component parts are defined as:
(a) Passenger vehicles.
(i) Major components:
1. Motor or engine.
2. Trunk floor pan or rear section and roof.
3. Frame or any portion thereof (except frame horn), or, in the case of a unitized body, the supporting structure which serves as the frame, except when it is a part of the trunk floor pan, or rear section and roof.
4. Cowl, firewall, or any portion thereof.
5. Roof assembly.
(ii) Minor components:
1. Each door allowing entrance to or egress from the passenger compartment.
2. Hood.
3. Each front fender or each rear fender when used with a rear section and roof.
4. Deck lid, tailgate or hatchback (whichever is present).
5. Each quarter panel.
6. Each bumper.
7. T-tops, moon roof, or whichever is present.
8. Transmission or transaxle.
(b) Truck, truck type or bus type vehicles.
(i) Major components:
1. Motor or engine.
2. Transmission or transaxle.
3. Frame or any portion thereof (except frame horn), or, in the case of a unitized body, the supporting structure which serves as the frame.
4. Cab.
5. Cowl or firewall or any portion thereof.
6. Roof assembly.
7. Cargo compartment floor panel or passenger compartment floor pan.
(ii) Minor components:
1. Each door.
2. Hood.
3. Grill, except on one-ton truck or smaller trucks.
4. Each bumper.
5. Each front fender.
6. Roof panel and rear cab panel.
7. Each rear fender or side panel.
8. Pickup box.
9. Body or bed.
(c) Motorcycle: component parts.
(i) Engine or motor.
(ii) Transmission or transaxle.
(iii) Frame.
(iv) Front fork.
(v) Crankcase.
(14) A salvage vehicle that has been restored in this state to its operating condition that existed before the event which caused the salvage certificate of title to issue shall be issued a certificate of title that contains the word "rebuilt."
(15) (a) Each salvage vehicle restored or rebuilt in this state that is required to be inspected by the Department of Public Safety under subsection (12) of this section and for which a certificate of title may be issued under subsection (14) of this section shall be issued a decal, plate or other emblem as prescribed by the Department of Public Safety to reflect that the vehicle is rebuilt. The decal, plate or other emblem shall be attached to the vehicle in a place and in a manner prescribed by the Department of Public Safety.
(b) A person who willfully removes, mutilates, tampers with, obliterates or destroys a decal, plate or other emblem issued and attached to a salvage vehicle according to this subsection, upon conviction, is guilty of a misdemeanor and shall be punished as provided in Section 63-21-71.
(16) Each person who sells, exchanges, delivers or otherwise transfers any interest in any vehicle for which a title bearing the designation "salvage" or "rebuilt" has been issued shall disclose in writing the existence of this designation contained on the title to the prospective purchaser, recipient in exchange, recipient by donation, or recipient by other act of transfer. The disclosure, which shall be made at the time of or prior to the completion of the sale, exchange, donation or other act of transfer shall contain the following information in no smaller than ten-point type: "This vehicle's title contains the designation 'salvage' or 'rebuilt'."
(17) This section does not apply to any motor vehicle that is ten (10) years old or older with a value of One Thousand Five Hundred Dollars ($1,500.00) or less.
SECTION 2. Section 63-21-33, Mississippi Code of 1972, is amended as follows:
63-21-33. If a dealer buys
a vehicle, manufactured home or mobile home and holds it for resale and
procures the certificate of title from the owner or the lienholder within ten
(10) days after delivery to him of the vehicle, manufactured home or mobile
home, he need not send the certificate to the * * * Department of Revenue.
However, upon transferring the vehicle, manufactured home or mobile home to
another person other than by the creation of a security interest, he shall
promptly execute the assignment and warranty of title by a dealer, showing the
names and addresses of the transferee and of any lienholder holding a security
interest created or reserved at the time of the resale and the date of his
security agreement, in the spaces provided therefor on the certificate or as
the * * * Department of Revenue prescribes, and deliver the
certificate to a designated agent with the transferee's application for a new
certificate.
Every dealer shall maintain
for five (5) years a record in the form the * * * Department of Revenue
prescribes of every vehicle, manufactured home or mobile home bought, sold or
exchanged by him or received by him for sale or exchange, which shall be open
to inspection by a representative of the * * * Department of Revenue
or patrol or peace officer during reasonable business hours.
Any person found to be in possession of a vehicle, manufactured home or mobile home with an improperly assigned title which fails to identify the transferee shall immediately establish ownership of the vehicle, manufactured home or mobile home, register the vehicle, manufactured home or mobile home and pay the required tax and penalty. The vehicle, manufactured home or mobile home shall be impounded by state or local law enforcement officials until such time as the person in possession can prove ownership or until the rightful owner is located. In the event the rightful owner cannot be established within thirty (30) days, the vehicle, manufactured home or mobile home shall be deemed abandoned and shall be disposed of as provided by law.
* * *
SECTION 3. Section 63-21-39, Mississippi Code of 1972, is amended as follows:
63-21-39. (1) (a) An owner who scraps, dismantles or destroys a vehicle and a person who purchases a vehicle as scrap or to be dismantled or destroyed shall indicate same on the back of the certificate of title and shall immediately cause the certificate of title and any other documents required by the Department of Revenue to be mailed or delivered to the Department of Revenue for cancellation. A certificate of title of the vehicle shall not again be issued except upon application containing the information the Department of Revenue requires, accompanied by a certificate of inspection in the form and content specified in Section 63-21-15(5) and proof of payment of a fee as provided in subsection (2) of this section.
(b) Notwithstanding any other provision of this chapter to the contrary, if the owner or authorized agent of the owner has not obtained a title in his or her name for the vehicle to be transferred, has lost the title for the vehicle to be transferred, or has returned the title to the Department of Revenue in accordance with Section 63-21-39(1)(a), he or she may sign a statement swearing that, in addition to the foregoing conditions, the vehicle is at least ten (10) model years old. The statement described in this paragraph may be used only to transfer such a vehicle to a licensed used motor vehicle parts dealer or scrap metal processor. The department shall promulgate a form for the statement which shall include, but not be limited to:
(i) A description of the vehicle including the year, make, model and vehicle identification number;
(ii) The name, address, and driver's license number of the owner;
(iii) A certification that the owner:
1.
Never obtained a title to the vehicle in his or her name; or
2. Was issued a title for the vehicle, but the title was
lost or stolen;
(iv) A certification that the vehicle:
1. Is at least ten (10) model years old; and
2. Is not subject to any secured interest or lien;
(v) The owner's signature and the date of the transaction;
(vi) The name and address of the business acquiring the vehicle;
(vii) The National Motor Vehicle Title Information System identification number; and
(viii) The business agent's signature and date along with a printed name and title if the agent is signing on behalf of a corporation.
(c) The used motor vehicle parts dealer or scrap metal processor shall mail or otherwise deliver the statement required under paragraph (b) of this subsection (1) to the Department of Revenue within seventy-two (72) hours of the completion of the transaction, requesting that the department cancel the Mississippi certificate of title and registration. In lieu of mailing, the used motor vehicle parts dealer or scrap metal processor may electronically submit the information contained in the statement via an Internet-based system to be developed by the department.
(d) The used motor vehicle parts dealer or scrap metal processor shall retain a copy of all documents required by this section for a period of two (2) years from the date of the transaction.
* * *
* * *
SECTION 4. Section 1 of this act shall be codified in Chapter 21, Title 63, Mississippi code of 1972.
SECTION 5. This act shall take effect and be in force from and after July 1, 2013.
