S.B. 249

1

SALVAGE AND NONREPAIRABLE VEHICLE AMENDMENTS
2 2013 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Stephen H. Urquhart
5 House Sponsor: Bradley G. Last
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to salvage and nonrepairable vehicles.
10 Highlighted Provisions:
11 This bill:
12 . provides that a vehicle that has been issued a nonrepairable certificate may not be
13 registered;
14 . requires an operator of a motor vehicle auction, for a vehicle with a salvage
15 certificate purchased at a motor vehicle auction, to electronically apply for a salvage
16 certificate of title and provide evidence of compliance with certain requirements;
17 . prohibits a person who has been convicted of any law relating to motor vehicle
18 commerce or motor vehicle fraud from purchasing a vehicle with a salvage or
19 nonrepairable certificate;
20 . provides that a person or purchaser who is not licensed as a salvage vehicle buyer:
21 . may not bid on or purchase more than five salvage vehicles with a nonrepairable
22 or salvage certificate in any 12-month period;
23 . may not offer for sale, sell, or exchange more than two vehicles with a salvage
24 certificate in any 12-month period to a person not licensed as a salvage vehicle
25 buyer or crusher; or
26 . may not offer for sale, sell, or exchange a vehicle with a nonrepairable
27 certificate to a person not licensed as a salvage vehicle buyer or a crusher;

28 . provides that a person may not scrap, dismantle, destroy, or otherwise change any
29 vehicle so that it loses its character, until the person submits certificate of title for
30 the vehicle for cancellation and obtains a dismantling permit;
31 . provides that knowing or intentional concealment, removal, destruction, or
32 alteration of a disclosure statement or of a branded certificate of title is a second
33 degree felony;
34 . establishes a private cause of action for certain owners who violate the requirement
35 to disclose that a vehicle is a salvage vehicle; and
36 . makes technical corrections.
37 Money Appropriated in this Bill:
38 None
39 Other Special Clauses:
40 None
41 Utah Code Sections Affected:
42 AMENDS:
43 41-1a-202, as last amended by Laws of Utah 2008, Chapter 36
44 41-1a-1004, as last amended by Laws of Utah 2009, Chapter 168
45 41-1a-1008, as renumbered and amended by Laws of Utah 1992, Chapter 1
46 41-3-201, as last amended by Laws of Utah 2012, Chapter 390
47 ENACTS:
48 41-1a-1008.5, Utah Code Annotated 1953
49
50 Be it enacted by the Legislature of the state of Utah:
51 Section 1. Section 41-1a-202 is amended to read:
52 41-1a-202. Definitions -- Vehicles exempt from registration -- Registration of
53 vehicles after establishing residency.
54 (1) In this section:
55 (a) "Domicile" means the place:
56 (i) where an individual has a fixed permanent home and principal establishment;
57 (ii) to which the individual if absent, intends to return; and
58 (iii) in which the individual and his family voluntarily reside, not for a special or

59 temporary purpose, but with the intention of making a permanent home.
60 (b) (i) "Resident" means any of the following:
61 (A) an individual who:
62 (I) has established a domicile in this state;
63 (II) regardless of domicile, remains in this state for an aggregate period of six months
64 or more during any calendar year;
65 (III) engages in a trade, profession, or occupation in this state or who accepts
66 employment in other than seasonal work in this state and who does not commute into the state;
67 (IV) declares himself to be a resident of this state for the purpose of obtaining a driver
68 license or motor vehicle registration; or
69 (V) declares himself a resident of Utah to obtain privileges not ordinarily extended to
70 nonresidents, including going to school, or placing children in school without paying
71 nonresident tuition or fees; or
72 (B) any individual, partnership, limited liability company, firm, corporation,
73 association, or other entity that:
74 (I) maintains a main office, branch office, or warehouse facility in this state and that
75 bases and operates a motor vehicle in this state; or
76 (II) operates a motor vehicle in intrastate transportation for other than seasonal work.
77 (ii) "Resident" does not include any of the following:
78 (A) a member of the military temporarily stationed in Utah;
79 (B) an out-of-state student, as classified by the institution of higher education, enrolled
80 with the equivalent of seven or more quarter hours, regardless of whether the student engages
81 in a trade, profession, or occupation in this state or accepts employment in this state; and
82 (C) an individual domiciled in another state or a foreign country that:
83 (I) is engaged in public, charitable, educational, or religious services for a government
84 agency or an organization that qualifies for tax-exempt status under Internal Revenue Code
85 Section 501(c)(3);
86 (II) is not compensated for services rendered other than expense reimbursements; and
87 (III) is temporarily in Utah for a period not to exceed 24 months.
88 (2) Registration under this chapter is not required for any:
89 (a) vehicle registered in another state and owned by a nonresident of the state or

90 operating under a temporary registration permit issued by the division or a dealer authorized by
91 this chapter, driven or moved upon a highway in conformance with the provisions of this
92 chapter relating to manufacturers, transporters, dealers, lien holders, or interstate vehicles;
93 (b) vehicle driven or moved upon a highway only for the purpose of crossing the
94 highway from one property to another;
95 (c) implement of husbandry, whether of a type otherwise subject to registration or not,
96 that is only incidentally operated or moved upon a highway;
97 (d) special mobile equipment;
98 (e) vehicle owned or leased by the federal government;
99 (f) motor vehicle not designed, used, or maintained for the transportation of passengers
100 for hire or for the transportation of property if the motor vehicle is registered in another state
101 and is owned and operated by a nonresident of this state;
102 (g) vehicle or combination of vehicles designed, used, or maintained for the
103 transportation of persons for hire or for the transportation of property if the vehicle or
104 combination of vehicles is registered in another state and is owned and operated by a
105 nonresident of this state and if the vehicle or combination of vehicles has a gross laden weight
106 of 26,000 pounds or less;
107 (h) trailer of 750 pounds or less unladen weight and not designed, used, and maintained
108 for hire for the transportation of property or person;
109 (i) manufactured home or mobile home;
110 (j) off-highway vehicle currently registered under Section 41-22-3 if the off-highway
111 vehicle is:
112 (i) being towed;
113 (ii) operated on a street or highway designated as open to off-highway vehicle use; or
114 (iii) operated in the manner prescribed in Subsections 41-22-10.3 (1) through (3);
115 (k) off-highway implement of husbandry operated in the manner prescribed in
116 Subsections 41-22-5.5 (3) through (5);
117 (l) modular and prebuilt homes conforming to the uniform building code and presently
118 regulated by the United States Department of Housing and Urban Development that are not
119 constructed on a permanent chassis;
120 (m) electric assisted bicycle defined under Section 41-6a-102 ;

121 (n) motor assisted scooter defined under Section 41-6a-102 ; or
122 (o) electric personal assistive mobility device defined under Section 41-6a-102 .
123 (3) Unless otherwise exempted under Subsection (2), registration under this chapter is
124 required for any motor vehicle, combination of vehicles, trailer, semitrailer, or vintage vehicle
125 within 60 days of the owner establishing residency in this state.
126 (4) A motor vehicle that is registered under Section 41-3-306 is exempt from the
127 registration requirements of this part for the time period that the registration under Section
128 41-3-306 is valid.
129 (5) A vehicle that has been issued a nonrepairable certificate may not be registered
130 under this chapter.
131 Section 2. Section 41-1a-1004 is amended to read:
132 41-1a-1004. Certificate of title -- Salvage vehicles.
133 (1) If the division is able to ascertain the fact, at the time application is made for initial
134 registration or transfer of ownership of a salvage vehicle, the title shall be branded:
135 (a) rebuilt and restored to operation;
136 (b) in a flood and restored to operation; or
137 (c) not restored to operation.
138 (2) (a) Except as provided in Subsection (2)(b), before the sale of a vehicle for which a
139 salvage certificate or branded title has been issued, the seller shall provide the prospective
140 purchaser with written notification as required in Section 41-1a-1005.3 that a salvage
141 certificate or a branded title has been issued for the vehicle.
142 (b) The requirement to provide written notification under Subsection (2)(a) does not
143 apply if the prospective purchaser is:
144 (i) a licensed motor vehicle dealer whose primary business is auctioning salvage motor
145 vehicles to licensed salvage vehicle buyers; or
146 (ii) an insurance company, if the sale of the vehicle is the result of a total loss
147 settlement.
148 (3) (a) An advertisement for the sale of a vehicle for which a salvage certificate or
149 branded title has been issued shall disclose that a salvage certificate or branded title has been
150 issued for the vehicle.
151 (b) The advertisement disclosure under Subsection (3)(a) shall:

152 (i) be displayed at least as prominently as the description of the advertised vehicle is
153 displayed; and
154 (ii) use the words "salvage certificate" or "branded title" in the advertisement.
155 Section 3. Section 41-1a-1008 is amended to read:
156 41-1a-1008. Criminal penalty for violation.
157 [It] (1) Except as provided in Subsection (2) or unless otherwise provided, it is a class
158 A misdemeanor to knowingly violate Sections 41-1a-1001 through 41-1a-1007 [, unless another
159 penalty is specifically provided].
160 (2) Knowing or intentional concealment, removal, destruction, or alteration of a
161 disclosure statement or of a certificate of title branded under Section 41-3-201 or Sections
162 41-1a-1004 through 41-1a-1005.3 is a second degree felony.
163 (3) Criminal penalties under this chapter are not exclusive, but are in addition to those
164 under Section 76-10-1801 .
165 Section 4. Section 41-1a-1008.5 is enacted to read:
166 41-1a-1008.5. Private cause of action.
167 (1) Any owner who is not a manufacturer, dealer, motor vehicle auction, or consignor
168 to a motor vehicle auction not licensed under Section 41-3-201 and who violates Section
169 41-1a-1005.3 is liable to the purchaser for:
170 (a) actual damages if the purchaser elects to retain the salvage vehicle, or the value of
171 the consideration paid for the salvage vehicle if the purchaser elects rescission;
172 (b) the costs of the action and reasonable attorney fees;
173 (c) up to three times the value of the actual damages or the consideration as exemplary
174 damages; and
175 (d) other equitable relief, including rescission and restitution, the court determines to
176 be proper in addition to damages and costs.
177 (2) Actual damages include:
178 (a) the difference between the actual market value of the salvage vehicle or
179 nonconforming vehicle at the time of purchase and the contract price;
180 (b) towing;
181 (c) repair;
182 (d) storage expenses;

183 (e) rental of substitute transportation;
184 (f) food and lodging expenses;
185 (g) lost wages;
186 (h) finance charges;
187 (i) sales or use tax;
188 (j) other governmental fees;
189 (k) lease charges; and
190 (l) other incidental and consequential damages.
191 (3) The remedies provided in this section are not exclusive but are in addition to any
192 other remedies provided by law.
193 Section 5. Section 41-3-201 is amended to read:
194 41-3-201. Licenses required -- Restitution -- Education.
195 (1) As used in this section, "new applicant" means a person who is applying for a
196 license that the person has not been issued during the previous licensing year.
197 (2) A person may not act as any of the following without having procured a license
198 issued by the administrator:
199 (a) a dealer;
200 (b) salvage vehicle buyer;
201 (c) salesperson;
202 (d) manufacturer;
203 (e) transporter;
204 (f) dismantler;
205 (g) distributor;
206 (h) factory branch and representative;
207 (i) distributor branch and representative;
208 (j) crusher;
209 (k) remanufacturer; or
210 (l) body shop.
211 (3) (a) Except as provided in Subsection (3)(c), a person may not bid on or purchase a
212 vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001 at or
213 through a motor vehicle auction unless the person is a licensed salvage vehicle buyer.

214 (b) Except as provided in Subsection (3)(c), a person may not offer for sale, sell, or
215 exchange a vehicle with a nonrepairable or salvage certificate as defined in Section 41-1a-1001
216 at or through a motor vehicle auction except to a licensed salvage vehicle buyer.
217 (c) A person may offer for sale, sell, or exchange a vehicle with a nonrepairable or
218 salvage certificate as defined in Section 41-1a-1001 at or through a motor vehicle auction:
219 (i) to an out-of-state or out-of-country purchaser not licensed under this section, but
220 that is authorized to do business in the domestic or foreign jurisdiction in which the person is
221 domiciled or registered to do business;
222 (ii) subject to the restrictions in Subsection (3)(d), to an in-state purchaser not licensed
223 under this section that:
224 (A) has a valid business license in Utah; and
225 (B) has a Utah sales tax license; and
226 (iii) to a crusher.
227 (d) (i) An operator of a motor vehicle auction shall verify that an in-state purchaser not
228 licensed under this section has the licenses required in Subsection (3)(c)(ii).
229 (ii) An operator of a motor vehicle auction may only offer for sale, sell, or exchange
230 five vehicles with a salvage certificate as defined in Section 41-1a-1001 at or through a motor
231 vehicle auction in any 12 month period to an in-state purchaser that does not have a salvage
232 vehicle buyer license issued in accordance with Subsection 41-3-202 (15).
233 (iii) The five vehicle limitation under this Subsection (3)(d) applies to each Utah sales
234 tax license and not to each person with the authority to use a sales tax license.
235 (iv) An operator of a motor vehicle auction may not sell a vehicle with a nonrepairable
236 certificate as defined in Section 41-1a-1001 to a purchaser otherwise allowed to purchase a
237 vehicle under Subsection (3)(c)(ii).
238 (e) For a vehicle with a salvage certificate purchased under this Subsection (3)[(c)(ii)],
239 an operator of a motor vehicle auction shall:
240 (i) (A) until Subsection (3)(e)(i)(B) applies, make application for a salvage certificate
241 of title on behalf of the Utah purchaser within seven days of the purchase if the purchaser does
242 not have a salvage vehicle buyer license, dealer license, body shop license, or dismantler
243 license issued in accordance with Section 41-3-202 ; [and] or
244 (B) beginning on or after the date that the Motor Vehicle Division has implemented the

245 Motor Vehicle Division's GenTax system, make application electronically, in a form and time
246 period approved by the Motor Vehicle Division, for a salvage certificate of title to be issued in
247 the name of the purchaser;
248 (ii) give to the purchaser a disclosure printed on a separate piece of paper that states:
249 "THIS DISCLOSURE STATEMENT MUST BE GIVEN BY THE SELLER TO THE
250 BUYER EVERY TIME THIS VEHICLE IS RESOLD WITH A SALVAGE CERTIFICATE
251 Vehicle Identification Number (VIN)
252 Year: Make: Model:
253 SALVAGE VEHICLE--NOT FOR RESALE WITHOUT DISCLOSURE
254 WARNING: THIS SALVAGE VEHICLE MAY NOT BE SAFE FOR OPERATION
255 UNLESS PROPERLY REPAIRED. SOME STATES MAY REQUIRE AN INSPECTION
256 BEFORE THIS VEHICLE MAY BE REGISTERED. THE STATE OF UTAH MAY
257 REQUIRE THIS VEHICLE TO BE PERMANENTLY BRANDED AS A REBUILT
258 SALVAGE VEHICLE. OTHER STATES MAY ALSO PERMANENTLY BRAND THE
259 CERTIFICATE OF TITLE.
260 _________________________________________________________________
261 Signature of Purchaser Date"; and
262 (iii) provide evidence to the Motor Vehicle Division of:
263 (A) payment of sales taxes in accordance with Section 41-1a-510 ;
264 (B) payment of all applicable fees under Chapter 1a, Part 12, Fee and Tax
265 Requirements;
266 (C) the identification number inspection required under Section 41-1a-511 ; and
267 (D) the odometer disclosure statement required under Section 41-1a-902 .
268 (f) The commission may impose an administrative entrance fee established in
269 accordance with the procedures and requirements of Section 63J-1-504 not to exceed $10 on a
270 person not holding a license described in Subsection (3)(e)(i) that enters the physical premises
271 of a motor vehicle auction for the purpose of viewing available salvage vehicles prior to an
272 auction.
273 (4) (a) An operator of a motor vehicle auction shall keep a record of the sale of each
274 salvage vehicle.
275 (b) A record described under Subsection (4)(a) shall contain:

276 (i) the purchaser's name and address; and
277 (ii) the year, make, and vehicle identification number for each salvage vehicle sold.
278 (c) An operator of a motor vehicle auction shall:
279 (i) provide the record described in Subsection (4)(a) electronically in a method
280 approved by the division to the division within two business days of the completion of the
281 motor vehicle auction;
282 (ii) retain the record described in this Subsection (4) for five years from the date of
283 sale; and
284 (iii) make a record described in this Subsection (4) available for inspection by the
285 division at the location of the motor vehicle auction during normal business hours.
286 (5) (a) If applicable, an operator of a motor vehicle auction shall comply with the
287 reporting requirements of the National Motor Vehicle Title Information System overseen by
288 the United States Department of Justice if the person sells a vehicle with a salvage certificate to
289 an in-state purchaser under Subsection (3)(c)(ii).
290 (b) The Motor Vehicle Division shall include a link to the National Motor Vehicle
291 Title Information System on its website.
292 (6) (a) An operator of a motor vehicle auction that sells a salvage vehicle to a person
293 that is an out-of-country buyer shall:
294 (i) stamp on the face of the title so as not to obscure the name, date, or mileage
295 statement the words "FOR EXPORT ONLY" in all capital, black letters; and
296 (ii) stamp in each unused reassignment space on the back of the title the words "FOR
297 EXPORT ONLY."
298 (b) The words "FOR EXPORT ONLY" shall be:
299 (i) at least two inches wide; and
300 (ii) clearly legible.
301 (7) A supplemental license shall be secured by a dealer, manufacturer, remanufacturer,
302 transporter, dismantler, crusher, or body shop for each additional place of business maintained
303 by the licensee.
304 (8) A person who has been convicted of any law relating to motor vehicle commerce or
305 motor vehicle fraud may not be issued a license or purchase a vehicle with a salvage or
306 nonrepairable certificate unless full restitution regarding those convictions has been made.

307 (9) (a) The division may not issue a license to a new applicant for a new or used motor
308 vehicle dealer license, a new or used motorcycle dealer license, or a small trailer dealer license
309 unless the new applicant completes an eight-hour orientation class approved by the division
310 that includes education on motor vehicle laws and rules.
311 (b) The approved costs of the orientation class shall be paid by the new applicant.
312 (c) The class shall be completed by the new applicant and the applicant's partners,
313 corporate officers, bond indemnitors, and managers.
314 (d) (i) The division shall approve:
315 (A) providers of the orientation class; and
316 (B) costs of the orientation class.
317 (ii) A provider of an orientation class shall submit the orientation class curriculum to
318 the division for approval prior to teaching the orientation class.
319 (iii) A provider of an orientation class shall include in the orientation materials:
320 (A) ethics training;
321 (B) motor vehicle title and registration processes;
322 (C) provisions of Title 13, Chapter 5, Unfair Practices Act, relating to motor vehicles;
323 (D) Department of Insurance requirements relating to motor vehicles;
324 (E) Department of Public Safety requirements relating to motor vehicles;
325 (F) federal requirements related to motor vehicles as determined by the division; and
326 (G) any required disclosure compliance forms as determined by the division.
327 (10) A person or purchaser not licensed as a salvage vehicle buyer:
328 (a) may not bid on or purchase more than five salvage vehicles with a nonrepairable or
329 salvage certificate as defined in Section 41-1a-1001 in any 12-month period;
330 (b) may not offer for sale, sell, or exchange more than two vehicles with a salvage
331 certificate as defined in Section 41-1a-1001 in any 12-month period to a:
332 (i) person not licensed under this section; or
333 (ii) crusher; and
334 (c) may not offer for sale, sell, or exchange a vehicle with a nonrepairable certificate as
335 defined in Section 41-1a-1001 to a:
336 (i) person not licensed under this section; or
337 (ii) crusher.

338 (11) A person may not scrap, dismantle, destroy, or otherwise change any vehicle so
339 that it loses its character, until the person:
340 (a) complies with the provisions of Section 41-1a-1010 ; and
341 (b) obtains a dismantling permit.




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as of 2-25-13 5:56 PM

Office of Legislative Research and General Counsel

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