Bill Text: OH SB273 | 2011-2012 | 129th General Assembly | Engrossed

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Bill Title: To permit a motor vehicle salvage dealer or scrap metal processing facility to obtain a salvage certificate of title to a junk motor vehicle under certain circumstances, to permit salvage motor vehicle auctions and pools to auction and sell salvage motor vehicles to persons other than motor vehicle salvage dealers, to permit a person whose acquisition and disposal of salvage motor vehicles is incidental to the person's primary business to sell salvage motor vehicles at retail to or through a salvage motor vehicle auction or pool, to require salvage motor vehicle auctions and pools to keep an electronic record of all sales of salvage motor vehicles, and to make other changes in the motor vehicle salvage dealer law.

Spectrum: Strong Partisan Bill (Republican 13-1)

Status: (Engrossed - Dead) 2012-04-18 - Passed 3rd Consideration House [SB273 Detail]

Download: Ohio-2011-SB273-Engrossed.html

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As Passed by the Senate

129th General Assembly Regular Session 2011-2012

Am. Sub. S. B. No. 273

Senator Faber 

Cosponsors: Senators Daniels, Hite, Lehner, Manning, Eklund, Wagoner, Burke, Jones, Jordan, Brown, Bacon, Coley, Peterson 

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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 3937.19, 4738.021,

3

4738.022, 4738.023, and 4738.031, and to repeal

4

section 4738.18 of the Revised Code to permit a

5

motor vehicle salvage dealer or scrap metal

6

processing facility to obtain a salvage

7

certificate of title to a junk motor vehicle under

8

certain circumstances, to permit salvage motor

9

vehicle auctions and pools to auction and sell

10

salvage motor vehicles to persons other than motor

11

vehicle salvage dealers, to permit a person whose

12

acquisition and disposal of salvage motor vehicles

13

is incidental to the person's primary business to

14

sell salvage motor vehicles at retail to or

15

through a salvage motor vehicle auction or pool,

16

to require salvage motor vehicle auctions and

17

pools to keep an electronic record of all sales of

18

salvage motor vehicles, and to make other changes

19

in the motor vehicle salvage dealer law.

20

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

Section 1. That sections 505.871, 4501.25, 4505.061, 4505.11,	21
4738.01, 4738.02, 4738.03, 4738.17, and 4738.99 be amended and	22
sections 3937.19, 4738.021, 4738.022, 4738.023, and 4738.031 of	23
the Revised Code be enacted to read as follows:	24

Sec. 505.871. (A) A board of township trustees may provide,	25
by resolution, for the removal of any vehicle in the	26
unincorporated territory of the township that the board determines	27
is a junk motor vehicle, as defined in section 505.173 of the	28
Revised Code.	29

(B) If a junk motor vehicle is located on public property,	30
the board of township trustees may provide in the resolution for	31
the immediate removal of the vehicle.	32

(C)(1) If a junk motor vehicle is located on private	33
property, the board of township trustees may provide in the	34
resolution for the removal of the vehicle not sooner than fourteen	35
days after the board serves written notice of its intention to	36
remove or cause the removal of the vehicle on the owner of the	37
land and any holders of liens of record on the land.	38

(2) The notice provided under this division shall generally	39
describe the vehicle to be removed and indicate all of the	40
following:	41

(a) The board has determined that the vehicle is a junk motor	42
vehicle.	43

(b) If the owner of the land fails to remove the vehicle	44
within fourteen days after service of the notice, the board may	45
remove or cause the removal of the vehicle.	46

(c) Any expenses the board incurs in removing or causing the	47
removal of the vehicle may be entered upon the tax duplicate and	48
become a lien upon the land from the date of entry.	49

(3) The board shall serve the notice under this division by	50
sending it by certified mail, return receipt requested, to the	51
owner of the land, if the owner resides in the unincorporated	52
territory of the township or if the owner resides outside the	53
unincorporated territory of the township and the owner's address	54
is known or ascertainable through an exercise of reasonable	55
diligence. The board also shall send notice in such manner to any	56
holders of liens of record on the land. If a notice sent by	57
certified mail is refused or unclaimed, or if an owner's address	58
is unknown and cannot reasonably be ascertained by an exercise of	59
reasonable diligence, the board shall publish the notice once in a	60
newspaper of general circulation in the township before the	61
removal of the vehicle, and, if the land contains any structures,	62
the board also shall post the notice on the principal structure on	63
the land.	64

A notice sent by certified mail shall be deemed to be served	65
for purposes of this section on the date it was received as	66
indicated by the date on a signed return receipt. A notice given	67
by publication shall be deemed to be served for purposes of this	68
section on the date of the newspaper publication.	69

(D) The board of township trustees may cause the removal or	70
may employ the labor, materials, and equipment necessary to remove	71
a junk motor vehicle under this section. All expenses incurred in	72
removing or causing the removal of a junk motor vehicle, when	73
approved by the board, shall be paid out of the township general	74
fund from moneys not otherwise appropriated, except that if the	75
expenses exceed five hundred dollars, the board may borrow moneys	76
from a financial institution to pay the expenses in whole or in	77
part.	78

(E) The board of township trustees may utilize any lawful	79
means to collect the expenses incurred in removing or causing the	80
removal of a junk motor vehicle under this section, including any	81
fees or interest paid to borrow moneys under division (D) of this	82
section. The board may direct the township fiscal officer to	83
certify the expenses and a description of the land to the county	84
auditor, who shall place the expenses upon the tax duplicate as a	85
lien upon the land to be collected as other taxes and returned to	86
the township general fund.	87

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

88

(a) "Motor vehicle salvage dealer" has the same meaning as in	89
section 4738.01 of the Revised Code.	90

(b) "Scrap metal processing facility" has the same meaning as	91
in section 4737.05 of the Revised Code.	92

(2) Notwithstanding section 4513.63 of the Revised Code, the	93
clerk of courts of the county where a junk motor vehicle that is	94
removed and disposed of in accordance with this section shall	95
issue a salvage certificate of title for that junk motor vehicle	96
to a motor vehicle salvage dealer licensed pursuant to Chapter	97
4738. of the Revised Code or a scrap metal processing facility	98
licensed pursuant to sections 4737.05 to 4737.12 of the Revised	99
Code if all of the following conditions are satisfied:	100

(a) The board of township trustees has entered into a	101
contract with the motor vehicle salvage dealer or scrap metal	102
processing facility for the disposal or removal of the junk motor	103
vehicle in accordance with section 505.85 of the Revised Code.	104

(b) The fiscal officer for the board of township trustees	105
executes in triplicate an affidavit prescribed by the registrar of	106
motor vehicles describing the junk motor vehicle and the manner of	107
removal or disposal and certifying that all requirements of this	108
section and the notice and records search requirements of section	109
4505.101 of the Revised Code have been satisfied.	110

(c) The board of township trustees retains the original	111
affidavit for the board's records and furnishes the remaining two	112
copies of the affidavit to the motor vehicle salvage dealer or	113
scrap metal processing facility.	114

(d) The motor vehicle salvage dealer or scrap metal	115
processing facility presents one copy of the affidavit to the	116
clerk.	117

(3) The clerk shall issue the salvage certificate of title,	118
free and clear of all liens and encumbrances, not later than	119
thirty days after the motor vehicle salvage dealer or scrap metal	120
processing facility presents the affidavit pursuant to division	121
(F)(2) of this section.	122

(G) Notwithstanding section 4513.65 of the Revised Code, but	123
subject to division (G)(H)(2) of this section, any collector's	124
vehicle that meets the definition of a junk motor vehicle is	125
subject to removal under this section.	126

(G)(H)(1) Nothing in this section affects the authority of a	127
board of township trustees to adopt and enforce resolutions under	128
section 505.173 of the Revised Code to regulate the storage of	129
junk motor vehicles on private or public property in the	130
unincorporated territory of the township.	131

(2) A resolution adopted under this section is subject to the	132
same restrictions specified in division (A) of section 505.173 of	133
the Revised Code for resolutions adopted under that section.	134

Sec. 3937.19.  If a person purchases a motor vehicle in good	135
faith, if the purchaser is subsequently permanently divested of	136
the right of ownership or possession to that motor vehicle because	137
a court or other law enforcement entity has determined that the	138
certificate of title or vehicle identification number has been	139
falsified or otherwise tampered with or that the motor vehicle was	140
stolen, and if the purchaser has insurance coverage on the motor	141
vehicle that covers damage to or the loss of the motor vehicle,	142
the purchaser may submit a claim to the purchaser's insurance	143
company for the loss of the motor vehicle.	144

An insurance company that holds a current policy on a motor	145
vehicle that covers damage to or the loss of the vehicle for which	146
a claim is made under this division shall pay the claim in an	147
amount not less than the value of the motor vehicle at the time	148
the purchaser was divested of ownership or possession and not	149
greater than the amount for which the vehicle was insured.	150

Sec. 4501.25.  There is hereby created in the state treasury	151
the state bureau of motor vehicles fund. The fund shall consist of	152
all money collected by the registrar of motor vehicles, including	153
taxes, fees, and fines levied, charged, or referred to in Chapters	154
4501., 4503., 4505., 4506., 4507., 4509., 4510., 4511., 4517.,	155
4519., and 4521., and sections 3123.59, 2935.27, 2937.221,	156
3123.59, 4738.06, and 4738.13, and 4738.18 of the Revised Code	157
unless otherwise designated by law. The fund shall be used to pay	158
the expenses of administering the law relative to the powers and	159
duties of the registrar of motor vehicles. All investment earnings	160
of the fund shall be retained by the fund.	161

Sec. 4505.061.  If the application for a certificate of title	162
refers to a motor vehicle last previously registered in another	163
state, the application shall be accompanied by a physical	164
inspection certificate issued by the department of public safety	165
verifying the make, body type, model, and manufacturer's vehicle	166
identification number of the motor vehicle for which the	167
certificate of title is desired. The physical inspection	168
certificate shall be in such form as is designated by the	169
registrar of motor vehicles. The physical inspection of the motor	170
vehicle shall be made at a deputy registrar's office, or at an	171
established place of business operated by a licensed motor vehicle	172
dealer. Additionally, the physical inspection of a salvage vehicle	173
owned by an insurance company may be made at an established place	174
of business operated by a salvage motor vehicle salvage dealer,	175
salvage motor vehicle auction, or salvage motor vehicle pool	176
licensed under Chapter 4738. of the Revised Code. The deputy	177
registrar, the motor vehicle dealer, or the salvage motor vehicle	178
salvage dealer, salvage motor vehicle auction, or salvage motor	179
vehicle pool may charge a maximum fee of two dollars and	180
seventy-five cents commencing on July 1, 2001, three dollars and	181
twenty-five cents commencing on January 1, 2003, and three dollars	182
and fifty cents commencing on January 1, 2004, for conducting the	183
physical inspection.	184

The clerk of the court of common pleas shall charge a fee of	185
one dollar and fifty cents for the processing of each physical	186
inspection certificate. The clerk shall retain fifty cents of the	187
one dollar and fifty cents so charged and shall pay the remaining	188
one dollar to the registrar by monthly returns, which shall be	189
forwarded to the registrar not later than the fifth day of the	190
month next succeeding that in which the certificate is received by	191
the clerk. The registrar shall pay such remaining sums into the	192
state bureau of motor vehicles fund established by section 4501.25	193
of the Revised Code.	194

Sec. 4505.11.  (A) Each owner of a motor vehicle and each	195
person mentioned as owner in the last certificate of title, when	196
the motor vehicle is dismantled, destroyed, or changed in such	197
manner that it loses its character as a motor vehicle, or changed	198
in such manner that it is not the motor vehicle described in the	199
certificate of title, shall surrender the certificate of title to	200
that motor vehicle to a clerk of a court of common pleas, and the	201
clerk, with the consent of any holders of any liens noted on the	202
certificate of title, then shall enter a cancellation upon the	203
clerk's records and shall notify the registrar of motor vehicles	204
of the cancellation.	205

Upon the cancellation of a certificate of title in the manner	206
prescribed by this section, any clerk and the registrar of motor	207
vehicles may cancel and destroy all certificates and all	208
memorandum certificates in that chain of title.	209

(B)(1) If an Ohio certificate of title or salvage certificate	210
of title to a motor vehicle is assigned to a salvage dealer, the	211
dealer is not required to obtain an Ohio certificate of title or a	212
salvage certificate of title to the motor vehicle in the dealer's	213
own name if the dealer dismantles or destroys the motor vehicle,	214
indicates the number of the dealer's motor vehicle salvage	215
dealer's license on it, marks "FOR DESTRUCTION" across the face of	216
the certificate of title or salvage certificate of title, and	217
surrenders the certificate of title or salvage certificate of	218
title to a clerk of a court of common pleas as provided in	219
division (A) of this section. If the salvage dealer retains the	220
motor vehicle for resale, the dealer shall make application for a	221
salvage certificate of title to the motor vehicle in the dealer's	222
own name as provided in division (C)(1) of this section.	223

(2) At the time any salvage motor vehicle is sold at auction	224
or through a pool, the salvage motor vehicle auction or salvage	225
motor vehicle pool shall give a copy of the certificate of salvage	226
title or a copy of the certificate of title marked "FOR	227
DESTRUCTION" to the purchaser.	228

(C)(1) When an insurance company declares it economically	229
impractical to repair such a motor vehicle and has paid an agreed	230
price for the purchase of the motor vehicle to any insured or	231
claimant owner, the insurance company shall receive the	232
certificate of title and the motor vehicle and proceed as follows.	233
Within thirty days, the insurance company shall deliver the	234
certificate of title to a clerk of a court of common pleas and	235
shall make application for a salvage certificate of title. The	236
clerk shall issue the salvage certificate of title on a form,	237
prescribed by the registrar, that shall be easily distinguishable	238
from the original certificate of title and shall bear the same	239
information as the original certificate of title except that it	240
may bear a different number than that of the original certificate	241
of title. Except as provided in division (C)(2) of this section,	242
the salvage certificate of title shall be assigned by the	243
insurance company to a salvage dealer or any other person for use	244
as evidence of ownership upon the sale or other disposition of the	245
motor vehicle, and the salvage certificate of title shall be	246
transferrable to any other person. The clerk shall charge a fee of	247
four dollars for the cost of processing each salvage certificate	248
of title.	249

(2) If an insurance company considers a motor vehicle as	250
described in division (C)(1) of this section to be impossible to	251
restore for highway operation, the insurance company may assign	252
the certificate of title to the motor vehicle to a salvage dealer	253
or scrap metal processing facility and send the assigned	254
certificate of title to the clerk of the court of common pleas of	255
any county. The insurance company shall mark the face of the	256
certificate of title "FOR DESTRUCTION" and shall deliver a	257
photocopy of the certificate of title to the salvage dealer or	258
scrap metal processing facility for its records.	259

(3) If an insurance company declares it economically	260
impractical to repair a motor vehicle, agrees to pay to the	261
insured or claimant owner an amount in settlement of a claim	262
against a policy of motor vehicle insurance covering the motor	263
vehicle, and agrees to permit the insured or claimant owner to	264
retain possession of the motor vehicle, the insurance company	265
shall not pay the insured or claimant owner any amount in	266
settlement of the insurance claim until the owner obtains a	267
salvage certificate of title to the vehicle and furnishes a copy	268
of the salvage certificate of title to the insurance company.	269

(D) When a self-insured organization, rental or leasing	270
company, or secured creditor becomes the owner of a motor vehicle	271
that is burned, damaged, or dismantled and is determined to be	272
economically impractical to repair, the self-insured organization,	273
rental or leasing company, or secured creditor shall do one of the	274
following:	275

(1) Mark the face of the certificate of title to the motor	276
vehicle "FOR DESTRUCTION" and surrender the certificate of title	277
to a clerk of a court of common pleas for cancellation as	278
described in division (A) of this section. The self-insured	279
organization, rental or leasing company, or secured creditor then	280
shall deliver the motor vehicle, together with a photocopy of the	281
certificate of title, to a salvage dealer or scrap metal	282
processing facility and shall cause the motor vehicle to be	283
dismantled, flattened, crushed, or destroyed.	284

(2) Obtain a salvage certificate of title to the motor	285
vehicle in the name of the self-insured organization, rental or	286
leasing company, or secured creditor, as provided in division	287
(C)(1) of this section, and then sell or otherwise dispose of the	288
motor vehicle. If the motor vehicle is sold, the self-insured	289
organization, rental or leasing company, or secured creditor shall	290
obtain a salvage certificate of title to the motor vehicle in the	291
name of the purchaser from a clerk of a court of common pleas.	292

(E) If a motor vehicle titled with a salvage certificate of	293
title is restored for operation upon the highways, application	294
shall be made to a clerk of a court of common pleas for a	295
certificate of title. Upon inspection by the state highway patrol,	296
which shall include establishing proof of ownership and an	297
inspection of the motor number and vehicle identification number	298
of the motor vehicle and of documentation or receipts for the	299
materials used in restoration by the owner of the motor vehicle	300
being inspected, which documentation or receipts shall be	301
presented at the time of inspection, the clerk, upon surrender of	302
the salvage certificate of title, shall issue a certificate of	303
title for a fee prescribed by the registrar. The certificate of	304
title shall be in the same form as the original certificate of	305
title and shall bear the words "REBUILT SALVAGE" in black boldface	306
letters on its face. Every subsequent certificate of title,	307
memorandum certificate of title, or duplicate certificate of title	308
issued for the motor vehicle also shall bear the words "REBUILT	309
SALVAGE" in black boldface letters on its face. The exact location	310
on the face of the certificate of title of the words "REBUILT	311
SALVAGE" shall be determined by the registrar, who shall develop	312
an automated procedure within the automated title processing	313
system to comply with this division. The clerk shall use	314
reasonable care in performing the duties imposed on the clerk by	315
this division in issuing a certificate of title pursuant to this	316
division, but the clerk is not liable for any of the clerk's	317
errors or omissions or those of the clerk's deputies, or the	318
automated title processing system in the performance of those	319
duties. A fee of fifty dollars shall be assessed by the state	320
highway patrol for each inspection made pursuant to this division	321
and shall be deposited into the state highway safety fund	322
established by section 4501.06 of the Revised Code.	323

(F) No person shall operate upon the highways in this state a	324
motor vehicle, title to which is evidenced by a salvage	325
certificate of title, except to deliver the motor vehicle pursuant	326
to an appointment for an inspection under this section.	327

(G) No motor vehicle the certificate of title to which has	328
been marked "FOR DESTRUCTION" and surrendered to a clerk of a	329
court of common pleas shall be used for anything except parts and	330
scrap metal.	331

(H)(1) Except as otherwise provided in this division, an	332
owner of a manufactured or mobile home that will be taxed as real	333
property pursuant to division (B) of section 4503.06 of the	334
Revised Code shall surrender the certificate of title to the	335
auditor of the county containing the taxing district in which the	336
home is located. An owner whose home qualifies for real property	337
taxation under divisions (B)(1)(a) and (b) of section 4503.06 of	338
the Revised Code shall surrender the certificate within fifteen	339
days after the home meets the conditions specified in those	340
divisions. The auditor shall deliver the certificate of title to	341
the clerk of the court of common pleas who issued it.	342

(2) If the certificate of title for a manufactured or mobile	343
home that is to be taxed as real property is held by a lienholder,	344
the lienholder shall surrender the certificate of title to the	345
auditor of the county containing the taxing district in which the	346
home is located, and the auditor shall deliver the certificate of	347
title to the clerk of the court of common pleas who issued it. The	348
lienholder shall surrender the certificate within thirty days	349
after both of the following have occurred:	350

(a) The homeowner has provided written notice to the	351
lienholder requesting that the certificate of title be surrendered	352
to the auditor of the county containing the taxing district in	353
which the home is located.	354

(b) The homeowner has either paid the lienholder the	355
remaining balance owed to the lienholder, or, with the	356
lienholder's consent, executed and delivered to the lienholder a	357
mortgage on the home and land on which the home is sited in the	358
amount of the remaining balance owed to the lienholder.	359

(3) Upon the delivery of a certificate of title by the county	360
auditor to the clerk, the clerk shall inactivate it and maintain	361
it in the automated title processing system for a period of thirty	362
years.	363

(4) Upon application by the owner of a manufactured or mobile	364
home that is taxed as real property pursuant to division (B) of	365
section 4503.06 of the Revised Code and that no longer satisfies	366
divisions (B)(1)(a) and (b) or divisions (B)(2)(a) and (b) of that	367
section, the clerk shall reactivate the record of the certificate	368
of title that was inactivated under division (H)(3) of this	369
section and shall issue a new certificate of title, but only if	370
the application contains or has attached to it all of the	371
following:	372

(a) An endorsement of the county treasurer that all real	373
property taxes charged against the home under Title LVII of the	374
Revised Code and division (B) of section 4503.06 of the Revised	375
Code for all preceding tax years have been paid;	376

(b) An endorsement of the county auditor that the home will	377
be removed from the real property tax list;	378

(c) Proof that there are no outstanding mortgages or other	379
liens on the home or, if there are such mortgages or other liens,	380
that the mortgagee or lienholder has consented to the reactivation	381
of the certificate of title.	382

(I)(1) Whoever violates division (F) of this section shall be	383
fined not more than two thousand dollars, imprisoned not more than	384
one year, or both.	385

(2) Whoever violates division (G) of this section shall be	386
fined not more than one thousand dollars, imprisoned not more than	387
six months, or both.	388

Sec. 4738.01.  As used in sections 4738.01 to 4738.16 of the	389
Revised Code:	390

(A) "Motor vehicle salvage dealer" means any person who	391
engages in business primarily for the purpose of selling salvage	392
motor vehicle parts and secondarily for the purpose of selling at	393
retail salvage motor vehicles or manufacturing or selling a	394
product of gradable scrap metal.	395

(B) "Salvage motor vehicle" means any motor vehicle which is	396
in a wrecked, dismantled, or worn out condition, or unfit for	397
operation as a motor vehicle.	398

(C) "Salvage motor vehicle auction" means any person who on	399
his ownthe person's behalf or as an agent for a third party	400
engages in business for the purpose of auctioning salvage motor	401
vehicles to motor vehicle salvage dealers.	402

(D) "Salvage motor vehicle pool" means any person who as an	403
agent for a third party engages in business for the purpose of	404
storing, displaying, and offering for sale salvage motor vehicles	405
to motor vehicle salvage dealers.	406

(E) "Engaging in business" means commencing, conducting, or	407
continuing in business, or liquidating a business when the	408
liquidator thereof holds himselfthe liquidator out to be	409
conducting such business; making a casual sale or otherwise making	410
transfers in the ordinary course of business when the transfers	411
are made in connection with the disposition of all or	412
substantially all of the transferor's assets is not engaging in	413
business.	414

(F) "Retail sale" or "sale at retail" means the act or	415
attempted act of selling, bartering, exchanging, or otherwise	416
disposing of salvage motor vehicles or salvage motor vehicle parts	417
to an ultimate purchasera person who purchases the salvage motor	418
vehicle for use as a consumer.	419

(G) "UltimateAuthorized purchaser" means, with respect to	420
anya person who intends to purchase a salvage motor vehicle or	421
from a salvage motor vehicle part, a purchaser who in good faith	422
purchases suchauction or salvage motor vehicle or partpoolfor	423
purposes other than resale and is not licensed as a motor vehicle	424
dealer under Chapter 4517. of the Revised Code.and who satisfies	425
any of the following criteria:	426

(1) The person is a motor vehicle salvage dealer who is	427
licensed pursuant to this chapter; a junk yard that is licensed	428
pursuant to section 4737.07 of the Revised Code; a scrap metal	429
processing facility that is licensed pursuant to section 4737.05	430
of the Revised Code; is a salvage dismantler or automotive	431
recycler; or is licensed or otherwise authorized to purchase	432
salvage motor vehicles and is regulated by another state, country,	433
or jurisdiction.	434

(2) The person is a used motor vehicle dealer who is either	435
licensed pursuant to section 4517.02 of the Revised Code or is	436
licensed or otherwise authorized to do business as a used motor	437
vehicle dealer and is regulated by another state, country, or	438
jurisdiction.	439

(3) The person does not satisfy the criteria described in	440
division (G)(1) or (2) of this section but holds a valid federal	441
tax identification number or other verifiable documentation	442
evidencing that the person is authorized by this state or the	443
federal government to do business in this state and has purchased	444
fewer than a total of seven salvage motor vehicles in the current	445
calendar year from any salvage motor vehicle auction or salvage	446
motor vehicle pool.	447

(4) The person does not satisfy the criteria described in	448
division (G)(1) or (2) of this section but has purchased fewer	449
than a total of five salvage motor vehicles in the current	450
calendar year from any salvage motor vehicle auction or salvage	451
motor vehicle pool.	452

(H) "Business" includes any activities engaged in by any	453
person for the object of gain, benefit, or advantage either direct	454
or indirect.	455

(I) "Casual sale" means any transfer of a salvage motor	456
vehicle by a person other than a motor vehicle salvage dealer,	457
salvage motor vehicle auction, or salvage motor vehicle pool, to	458
an ultimate purchasera person who purchases the salvage motor	459
vehicle for use as a consumer.	460

Sec. 4738.02.  (A) Except as provided in divisions (B) and	461
(D)(E) of this section, no person shall engage in the business of	462
selling at retail salvage motor vehicles or salvage motor vehicle	463
parts, or assume to engage in any such business without first	464
obtaining a motor vehicle salvage dealer's license pursuant to	465
this chapter.	466

(B)(1) Except as provided in divisions (B)(1) and (C)(1) of	467
section 4738.03 of the Revised Codeand (E) of this section, no	468
person shall engage in the business of selling at retail salvage	469
motor vehicles nor, other than as a lessor, provide a location or	470
a space for the sale of salvage motor vehicles without first	471
obtaining a motor vehicle salvage dealer's license, a salvage	472
motor vehicle auction license, or a salvage motor vehicle pool	473
license pursuant to this chapter.	474

(2) Notwithstanding division (B)(1) of this section, a person	475
may sell salvage motor vehicles at retail to or through a salvage	476
motor vehicle auction or salvage motor vehicle pool without	477
obtaining any license pursuant to this chapter if the acquisition	478
of salvage motor vehicles is incidental to the primary business of	479
the person and the disposal of those salvage motor vehicles is	480
incidental to the primary business of the person.	481

(C) No person shall make more than five casual sales of	482
salvage motor vehicles in a twelve-month period, commencing with	483
the day of the month in which the first such sale is made, nor	484
provide a location or space for the sale at retail of salvage	485
motor vehicles, without obtaining a motor vehicle salvage dealer's	486
license pursuant to this chaptercalendar year.	487

(C)(D) Except as provided in division (D)(E) of this section,	488
no person shall operate as a salvage motor vehicle auction or	489
salvage motor vehicle pool without first obtaining the appropriate	490
license pursuant to this chapter.	491

(D)(E) In case of the dissolution of a partnership by death,	492
the surviving partner may operate under any license obtained by	493
the partnership pursuant to this chapter for a period of sixty	494
days and the heirs or representatives of deceased persons and	495
receivers or trustees in bankruptcy appointed by any competent	496
authority may operate under the license of the person succeeded in	497
possession by the heir, representative, receiver, or trustee in	498
bankruptcy.	499

(E)(F) Nothing in this chapter applies to any public officer	500
performing his official duties.	501

Sec. 4738.021. (A)(1) Every salvage motor vehicle auction and	502
salvage motor vehicle pool shall keep an electronic record of all	503
sales of salvage motor vehicles and shall include in the record	504
the make, model, year, vehicle identification number, and the	505
names and addresses of the purchaser and seller of the salvage	506
motor vehicle.	507

(2) In addition to the information collected pursuant to	508
division (A)(1) of this section, every salvage motor vehicle	509
auction and salvage motor vehicle pool shall obtain from any	510
authorized purchaser of an Ohio salvage motor vehicle a copy of a	511
driver's license, passport, or other government-issued	512
identification. Every salvage motor vehicle auction and salvage	513
motor vehicle pool shall maintain a copy of this identification	514
for a period of two years.	515

(3) In addition to the information collected pursuant to	516
divisions (A)(1) and (2) of this section, every salvage motor	517
vehicle auction and salvage motor vehicle pool shall obtain from	518
any person who is an authorized purchaser as defined in division	519
(G)(1) or (2) of section 4738.01 of the Revised Code documented	520
proof of any required license or other authorization to do	521
business pursuant to this chapter. Every salvage motor vehicle	522
auction and salvage motor vehicle pool shall maintain a copy of	523
this documentation for a period of two years.	524

(4) In addition to the information collected pursuant to	525
divisions (A)(1) to (3) of this section, every salvage motor	526
vehicle auction and salvage motor vehicle pool shall obtain from	527
any person who is an authorized purchaser as defined in division	528
(G)(3) or (4) of section 4738.01 of the Revised Code a declaration	529
under penalty of perjury that the authorized purchaser is not	530
making a purchase in excess of the applicable limit identified in	531
those divisions. The salvage motor vehicle auction or salvage	532
motor vehicle pool shall maintain that declaration for a period of	533
two years. The declaration may be submitted by the authorized	534
purchaser in electronic or written format.	535

(B) Every salvage motor vehicle auction and salvage motor	536
vehicle pool shall submit the information collected pursuant to	537
division (A) of this section to the registrar of motor vehicles on	538
a quarterly or other periodic basis that is not less than	539
quarterly pursuant to the rules adopted by the registrar in	540
division (C) of this section.	541

(C)(1) Within sixty days after the effective date of this	542
section, the registrar shall develop a statewide database for the	543
submission of the information collected pursuant to division (A)	544
of this section. The system shall be used to maintain an accurate	545
record of all sales conducted by a salvage motor vehicle auction	546
or salvage motor vehicle pool.	547

(2) The registrar may adopt any rules necessary to facilitate	548
the timely submission of the information required pursuant to this	549
section.	550

The registrar may make the information the registrar receives	551
under this section available to any state or local law enforcement	552
agency upon request.	553

Sec. 4738.022. Every salvage motor vehicle auction and	554
salvage motor vehicle pool shall comply with the reporting	555
requirements of the national motor vehicle title information	556
system.	557

Sec. 4738.023.  Within ninety days after the sale of a	558
salvage motor vehicle, the registrar of motor vehicles shall issue	559
a certificate of salvage title to the purchaser of that salvage	560
motor vehicle containing the following notice in bold lettering:	561

"SALVAGE VEHICLE – NOT FOR RESALE WITHOUT DISCLOSURE.	562
WARNING: THIS SALVAGE VEHICLE MAY NOT BE SAFE FOR OPERATION UNLESS	563
PROPERLY REPAIRED. SOME STATES MAY REQUIRE AN INSPECTION BEFORE	564
THIS VEHICLE MAY BE REGISTERED. THE STATE OF OHIO MAY REQUIRE THIS	565
VEHICLE TO BE PERMANENTLY BRANDED AS A REBUILT SALVAGE VEHICLE.	566
OTHER STATES MAY ALSO PERMANENTLY BRAND THE CERTIFICATE OF TITLE."	567

Sec. 4738.03.  (A) No person licensed as a motor vehicle	568
salvage dealer under this chapter shall engage in the business of	569
selling at retail salvage motor vehicle parts or salvage motor	570
vehicles, unless the business is operated primarily for the	571
purpose of selling at retail salvage motor vehicle parts. Any	572
person operating such a business primarily for the purpose of	573
selling at retail salvage motor vehicle parts may secondarily sell	574
at retail salvage motor vehicles or manufacture a product of	575
gradable scrap metal for sale to scrap metal processors or any	576
other consumer.	577

(B) No person licensed as a salvage motor vehicle auction	578
under this chapter shall:	579

(1) Make a casual sale ofSell a salvage motor vehicle to	580
anyone other than an authorized purchaser;	581

(2) Sell a salvage motor vehicle when having reasonable cause	582
to believe it is not offered by the legal owner thereof;	583

(3) Sell a salvage motor vehicle to any person except a	584
person licensed as a motor vehicle salvage dealer under this	585
chapter;	586

(4)(3) Fail to make an Ohio salvage certificate of title	587
available to the purchaser of a salvage motor vehicle sold by the	588
salvage motor vehicle auction, before payment for the salvage	589
motor vehicle is completed;	590

(5)(4) Operate as a motor vehicle salvage dealer at the same	591
location where any salvage motor vehicle auction is operated.	592

(C) No person licensed as a salvage motor vehicle pool under	593
this chapter shall:	594

(1) Make a casual sale ofSell a salvage motor vehicle to	595
anyone other than an authorized purchaser;	596

(2) Sell a salvage motor vehicle when having reasonable cause	597
to believe it is not offered by the legal owner thereof;	598

(3) Sell a salvage motor vehicle to any person except a	599
person licensed as a motor vehicle salvage dealer under this	600
chapter;	601

(4)(3) Fail to make an Ohio salvage certificate of title	602
available to the purchaser of a salvage motor vehicle sold by the	603
salvage motor vehicle pool, before payment for the salvage motor	604
vehicle is completed;	605

(5)(4) Operate as a motor vehicle salvage dealer at the same	606
location where any salvage motor vehicle pool is operated.	607

Sec. 4738.031. No person who is not an authorized purchaser	608
shall purchase a salvage motor vehicle from a salvage motor	609
vehicle auction or salvage motor vehicle pool.	610

Sec. 4738.17. (A) No person who is not licensed as a salvage	611
motor vehicle auction or salvage motor vehicle pool shall engage	612
in the business of selling salvage motor vehicle parts or salvage	613
motor vehicles at wholesale. Any	614

(B)(1) Any person licensed as a salvage motor vehicle dealer	615
under this chapter may sell salvage motor vehicle parts or salvage	616
motor vehicles at wholesale.	617

(2) Notwithstanding division (A) of this section, a person	618
may sell salvage motor vehicles at wholesale to or through a	619
salvage motor vehicle auction or salvage motor vehicle pool	620
without obtaining any license pursuant to this chapter if the	621
acquisition of salvage motor vehicles is incidental to the primary	622
business of the person and the disposal of those salvage motor	623
vehicles is incidental to the primary business of the person.	624

Sec. 4738.99.  (A) Whoever violates section 4738.02 or	625
4738.03 of the Revised Code is guilty of a misdemeanor of the	626
second degree on a first offense; on each subsequent offense, such	627
person is guilty of a misdemeanor of the first degree.	628

(B) Whoever violates section 4738.01, sections 4738.04 to	629
4738.13, or division (B) of section 4738.16 of the Revised Code is	630
guilty of a misdemeanor of the fourth degree.	631

(C) Whoever violates section 4738.031, 4738.14, or 4738.15 of	632
the Revised Code is guilty of a minor misdemeanor.	633

Section 2. That existing sections 505.871, 4501.25, 4505.061,	634
4505.11, 4738.01, 4738.02, 4738.03, 4738.17, and 4738.99 and	635
section 4738.18 of the Revised Code are hereby repealed.	636