Bill Text: VA SB1259 | 2015 | Regular Session | Chaptered
Bill Title: Salvage, nonrepairables, and rebuilt vehicles; requirements and practices of certain dealers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2015-02-26 - Governor: Acts of Assembly Chapter text (CHAP0033) [SB1259 Detail]
Download: Virginia-2015-SB1259-Chaptered.html
Be it enacted by the General Assembly of Virginia: 1. That §§46.2-1600, 46.2-1601, 46.2-1602, 46.2-1603.2, 46.2-1605, 46.2-1608, and 46.2-1608.2 of the Code of Virginia are amended and reenacted as follows: §46.2-1600. Definitions. The following words, terms, and phrases when used in this chapter shall have the meaning ascribed to them in this section, except where the context indicates otherwise: "Actual cash value," as applied to a vehicle, means the retail cash value of the vehicle prior to damage as determined, using recognized evaluation sources, either (i) by an insurance company responsible for paying a claim or (ii) if no insurance company is responsible therefor, by the Department. "Auto recycler" means any person licensed by the Commonwealth to engage in business as a salvage dealer, rebuilder, demolisher, or scrap metal processor. "Cosmetic damage," as applied to a vehicle, means damage to custom or performance aftermarket equipment, audio-visual accessories, nonfactory-sized tires and wheels, custom paint, and external hail damage. "Cosmetic damage" does not include (i) damage to original equipment and parts installed by the manufacturer or (ii) damage that requires any repair to enable a vehicle to pass a safety inspection pursuant to § 46.2-1157. The cost for cosmetic damage repair shall not be included in the cost to repair the vehicle when determining the calculation for a nonrepairable vehicle. "Current salvage value," as applied to a vehicle, means (i) the salvage value of the vehicle, as determined by the insurer responsible for paying the claim, or (ii) if no insurance company is responsible therefor, 25 percent of the actual cash value. "Demolisher" means any person whose business is to crush, flatten, bale, shred, log, or otherwise reduce a vehicle to a state where it can no longer be considered a vehicle. "Diminished value compensation" means the amount of compensation that an insurance company pays to a third party vehicle owner, in addition to the cost of repairs, for the reduced value of a vehicle due to damage. "Independent appraisal firm" means any business providing cost estimates for the repair of damaged motor vehicles for insurance purposes and having all required business licenses and zoning approvals. This term shall not include insurance companies that provide the same service, nor shall any such entity be a rebuilder or affiliated with a rebuilder. "Late model vehicle" means the current-year model of a vehicle and the five preceding model years, or any vehicle whose actual cash value is determined to have been at least $10,000 prior to being damaged. "Licensee" means any person who is licensed or is required to be licensed under this chapter. "Major component" means any one of the following subassemblies of a motor vehicle: (i) front clip assembly, consisting of the fenders, grille, hood, bumper, and related parts; (ii) engine; (iii) transmission; (iv) rear clip assembly, consisting of the quarter panels, floor panels, trunk lid, bumper, and related parts; (v) frame; (vi) air bags; and (vii) any door that displays a vehicle identification number. "Nonrepairable certificate" means a document of ownership issued by the Department for any nonrepairable vehicle upon surrender or cancellation of the vehicle's title and registration or salvage certificate. "Nonrepairable vehicle" means (i) any late model
vehicle that has been damaged and whose estimated cost of repair, excluding
the cost to repair cosmetic damages, exceeds 90 percent of its actual cash
value prior to damage "Rebuilder" means any person who acquires and repairs, for use on the public highways, two or more salvage vehicles within a 12-month period. "Rebuilt vehicle" means (i) any salvage vehicle that
has been "Repairable vehicle" means a late model vehicle that
is
"Salvage certificate" means a document of ownership issued by the Department for any salvage vehicle upon surrender or cancellation of the vehicle's title and registration. "Salvage dealer" means any person who acquires any vehicle for the purpose of reselling any parts thereof. "Salvage pool" means any person providing a storage service
for salvage vehicles or nonrepairable vehicles who either displays the vehicles
for resale or solicits bids for the sale of salvage vehicles or nonrepairable
vehicles, but this definition shall not apply to an insurance company "Salvage vehicle" means (i) any late model vehicle "Scrap metal processor" means any person who "Vehicle" shall have the meaning ascribed to it in §46.2-100. A vehicle that has been demolished or declared to be nonrepairable pursuant to this chapter shall no longer be considered a vehicle. For the purposes of this chapter, a major component shall not be considered a vehicle. "Vehicle removal operator" means any person who acquires a vehicle for the purpose of reselling it to a demolisher, scrap metal processor, or salvage dealer. §46.2-1601. Licensing of dealers of salvage vehicles; fees. A. It shall be unlawful for any person to engage in business
in the Commonwealth as B. No license shall be issued or renewed for any person unless (i) the licensed business contains at least 600 square feet of enclosed space, (ii) the licensed business is shown to be in compliance with all applicable zoning ordinances, and (iii) the applicant may (a) certify to the Commissioner that the licensed business is permitted under a Virginia Pollutant Discharge Elimination System individual or general permit issued by the State Water Control Board for discharges of storm water associated with industrial activity and provides the permit number(s) from such permit(s) or (b) certify to the Commissioner that the licensed business is otherwise exempt from such permitting requirements. Nothing in this section shall authorize any person to act as a motor vehicle dealer or salesperson without being licensed under Chapter 15 (§46.2-1500 et seq.) and meeting all requirements imposed by such chapter. C. Licenses issued under this section shall be deemed not to have expired if the renewal application and required fees as set forth in subsection A are received by the Commissioner or postmarked not more than 30 days after the expiration date of such license. Whenever the renewal application is received by the Commissioner or postmarked not more than 30 days after the expiration date of such license, the license fees shall be 150 percent of the fees provided for in subsection A. D. The Commissioner may offer an optional multiyear license for any license set forth in this section. When such option is offered and chosen by the licensee, all fees due at the time of licensing shall be multiplied by the number of years for which the license will be issued. §46.2-1602. Certain sales prohibited; exceptions. A. It shall be unlawful: 1. For any scrap metal processor to sell a vehicle or vehicle components or parts; 2. For any salvage pool to sell either in person or through
any Internet auction a salvage vehicle stored in the Commonwealth to
any person who is not 3. For any person to sell a nonrepairable vehicle to any
person who is not 4. For any person to sell a rebuilt vehicle without first having disclosed the fact that the vehicle is a rebuilt vehicle to the buyer in writing on a form prescribed by the Commissioner. B. Notwithstanding the provisions of subsection A of this section, it shall not be unlawful: 1. For a salvage dealer to sell vehicle components or parts to unlicensed persons; or 2. For an individual to dispose of a salvage vehicle acquired or retained for his own use when it has been acquired or retained and used in good faith and not for the purpose of avoiding the provisions of this chapter. §46.2-1603.2. Owner may declare vehicle nonrepairable; insurance company required to obtain a nonrepairable certificate; applicability of certain other laws to nonrepairable certificates; titling and registration of nonrepairable vehicle prohibited. A. The owner of any vehicle titled in the Commonwealth may declare such vehicle to be a nonrepairable vehicle by applying to the Department for a nonrepairable certificate. B. Every insurance company or its authorized agent shall apply
to the Department and obtain a nonrepairable certificate for each vehicle
acquired by the insurance company as a result of the claims process if such
vehicle is titled in the Commonwealth and is (i) a late model nonrepairable
vehicle or (ii) a stolen vehicle that has been recovered and determined to be a
nonrepairable vehicle. The application shall be accompanied by the vehicle's
title certificate or salvage certificate C. Every insurance company or its authorized agent shall notify the Department of each late model vehicle titled in the Commonwealth upon which a claim has been paid if such vehicle is a nonrepairable vehicle that is retained by its owner. D. The Department, upon receipt of an application for a nonrepairable certificate for a vehicle titled in the Commonwealth, or upon receipt of notification from an insurance company or its authorized agent as provided in subsection C of this section that a vehicle registered in the Commonwealth has become a nonrepairable vehicle, shall cause the title of such vehicle to be cancelled and a nonrepairable certificate issued to the vehicle's owner. There shall be no fee for the issuance of a nonrepairable certificate. All provisions of this Code applicable to a motor vehicle certificate of title shall apply, mutatis mutandis, to a nonrepairable certificate, except that no registration or license plates shall be issued for the vehicle described in a nonrepairable certificate. No vehicle for which a nonrepairable certificate has been issued shall ever be titled or registered for use on the highways in the Commonwealth. E. The Department, upon receipt of a title, salvage certificate, or other ownership document from a licensed salvage dealer or demolisher pursuant to subdivision A 1 of §46.2-1603.1, shall cause the title, salvage certificate, or other ownership document to such vehicle to be cancelled and a nonrepairable certificate issued to the vehicle's owner. §46.2-1605. Vehicles rebuilt for highway use; examinations; branding of titles.
B. Upon passage of a state safety inspection, each rebuilt
vehicle shall be examined by the Department prior to the issuance of a title
for the vehicle. The examination by the Department shall include a
review of video or photographic images of the vehicle prior to being
rebuilt, if available; all documentation for the parts and labor used for
the repair of the salvage vehicle; and C. Any salvage vehicle whose vehicle identification
number or confidential number has been altered, is missing, or appears to have
been tampered with may be impounded by the Department D. If the Department's examination of a E. If the Department's examination of a rebuilt salvage vehicle reveals irregularities in the required documentation or obvious defects, the Department shall identify to the owner the irregularities and defects that must be corrected before the Department's examination can be completed. F. When necessary and upon application, the Department shall issue temporary trip permits in accordance with §46.2-651 for the purpose of transporting the rebuilt salvage vehicle to and from an official Virginia safety inspection station. §46.2-1608. Maintenance and contents of records. A. Each licensee shall maintain a record of the receipt and sale of any vehicle. Such record shall be maintained at the licensee's place of business. The record, at a minimum, shall contain: 1. A description of each vehicle sold, purchased, exchanged, or acquired by the licensee, including, but not limited to, the model, make, year of the vehicle as well as the vehicle's title number with state of issuance and vehicle identification number; 2. The price paid for each vehicle; 3. The name and address of the seller from whom each vehicle is purchased, exchanged, or acquired and the name and address of the buyer to whom the vehicle is sold; 4. The date and hour the sale, purchase, exchange, or acquisition was made; 5. A photocopy of the seller's and buyer's driver's license, state identification card, official United States military identification card, or any other form of personal identification with photograph; 6. 7. Digital photographs of the seller,
B. If any major component, as defined in §46.2-1600, is sold, the salvage dealer shall provide, upon request of any law-enforcement official, the information required by this section as to the vehicle from which the part was taken. C. The provisions of subdivisions A 5 D. The provisions of this section shall not apply to salvage
pools as defined in §46.2-1600, except that salvage pools shall maintain a
record of the receipt of any vehicle that contains (i) the date of
receipt of the vehicle §46.2-1608.2. Licensees to update records of the Department for motor vehicles that are to be demolished or dismantled. A. A 1. Entering into a contractual agreement with the Department
to update records of motor vehicles to be demolished or dismantled if such
motor vehicles have either been issued a certificate of title, salvage
certificate, or nonrepairable certificate in the Commonwealth or are titled in 2. Notifying the Department that a motor vehicle is being
demolished or dismantled or of the intention to demolish, dismantle, or reduce
the motor vehicle to a state where it can no longer be considered a motor
vehicle. B. C. D. E. Nothing in this section shall release a |