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First Substitute H.B. 377

Representative David L. Hogue proposes to substitute the following bill:


             1     
SALVAGE VEHICLE AMENDMENTS

             2     
2001 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: David L. Hogue

             5      This act modifies the Motor Vehicle Code by prohibiting registration and revoking the title
             6      of certain salvage vehicles. This act allows for the collection of fees and for rulemaking.
             7      This act takes effect on October 1, 2001.
             8      This act affects sections of Utah Code Annotated 1953 as follows:
             9      AMENDS:
             10          41-1a-110, as last amended by Chapter 345, Laws of Utah 2000
             11          41-1a-1002, as last amended by Chapter 184, Laws of Utah 1994
             12          41-1a-1009, as last amended by Chapter 217, Laws of Utah 1999
             13      ENACTS:
             14          41-1a-1013, Utah Code Annotated 1953
             15      Be it enacted by the Legislature of the state of Utah:
             16          Section 1. Section 41-1a-110 is amended to read:
             17           41-1a-110. Authority of division to suspend or revoke registration, certificate of title,
             18      license plate, or permit.
             19          (1) Except as provided in Subsections (3) and (4), the division may suspend or revoke a
             20      registration, certificate of title, license plate, or permit if:
             21          (a) the division is satisfied that a registration, certificate of title, license plate, or permit
             22      was fraudulently procured or erroneously issued;
             23          (b) the division determines that a registered vehicle is mechanically unfit or unsafe to be
             24      operated or moved upon the highways;
             25          (c) a registered vehicle has been dismantled;


             26          (d) the division determines that the required fee has not been paid and the fee is not paid
             27      upon reasonable notice and demand;
             28          (e) a registration decal, license plate, or permit is knowingly displayed upon a vehicle other
             29      than the one for which issued;
             30          (f) the division determines that the owner has committed any offense under this chapter
             31      involving the registration, certificate of title, registration card, license plate, registration decal, or
             32      permit; or
             33          (g) the division receives notification by the Department of Transportation that the owner
             34      has committed any offence under Title 72, Chapter 9, Motor Carrier Safety Act.
             35          (2) The division shall revoke the registration of a vehicle if the division receives
             36      notification by the:
             37          (a) Department of Public Safety that a person:
             38          (i) has been convicted of operating a registered motor vehicle in violation of Section
             39      41-12a-301 or 41-12a-303.2 ; or
             40          (ii) is under an administrative action taken by the Department of Public Safety for
             41      operating a registered motor vehicle in violation of Section 41-12a-301 ; or
             42          (b) designated agent that the owner of a motor vehicle:
             43          (i) has failed to provide satisfactory proof of owner's or operator's security to the
             44      designated agent after the second notice provided under Section 41-12a-804 ; or
             45          (ii) provided a false or fraudulent statement to the designated agent.
             46          (3) The division may not suspend or revoke the registration of a vessel or outboard motor
             47      unless authorized under Section 73-18-7.3 .
             48          (4) The division may not suspend or revoke the registration of an off-highway vehicle
             49      unless authorized under Section 41-22-17 .
             50          (5) The division shall charge a registration reinstatement fee under Section 41-1a-1220 ,
             51      if the registration is revoked under Subsection (1)(f).
             52          (6) The division shall revoke the certificate of title of a vehicle, vessel, or outboard motor
             53      that is considered junk if the division receives the information from an insurer that is required
             54      under Section 41-1a-1009 .
             55          Section 2. Section 41-1a-1002 is amended to read:
             56           41-1a-1002. Unbranded title -- Prerepair inspections -- Interim repair inspections


             57      -- Repair.
             58          (1) To obtain an unbranded title to a salvage vehicle:
             59          (a) the vehicle must:
             60          (i) be a motor vehicle;
             61          (ii) (A) have an unbranded Utah title or a Utah salvage certificate issued to replace an
             62      unbranded Utah title at the time the motor vehicle is inspected under Subsection (1)(a)(iii); or
             63          (B) have an unbranded title from another jurisdiction and the motor vehicle shall have
             64      been damaged in Utah as evidenced by an accident report;
             65          (iii) be inspected by a certified vehicle inspector prior to any repairs on the motor vehicle
             66      following any major damage; and
             67          (iv) have major damage in no more than one major component part;
             68          (b) the major damage identified by a certified vehicle inspector under Subsection (1)(a)
             69      must be repaired in accordance with standards established by the Motor Vehicle Enforcement
             70      Division;
             71          (c) any interim inspection required by a certified vehicle inspector must be completed in
             72      accordance with the directions of the initial certified vehicle inspector and to the satisfaction of
             73      the interim certified vehicle inspector; and
             74          (d) the owner must apply to the Motor Vehicle Enforcement Division for authorization to
             75      obtain an unbranded title under Section 41-1a-1003 .
             76          (2) A flood damaged motor vehicle does not qualify for an unbranded title.
             77          (3) A salvage vehicle [that is seven years old or older at the time of application for
             78      unbranding] does not qualify for an unbranded title[.] if the vehicle is:
             79          (a) seven years old or older at the time of application for unbranding based on model year;
             80      or
             81          (b) damaged by collision, flood, or other occurrence to the extent that the cost of repairing
             82      the vehicle for safe operation exceeds its fair market value.
             83          (4) The prerepair motor vehicle inspection required under Subsection (1) shall include
             84      examination of the motor vehicle and its major component parts to determine:
             85          (a) the extent and location of the major damage to the motor vehicle;
             86          (b) that the identification numbers of the vehicle or its parts have not been removed,
             87      falsified, altered, defaced, or destroyed; and


             88          (c) there are no indications that the vehicle or any of its parts are stolen.
             89          (5) If the certified vehicle inspector determines in an inspection under Subsection (1) that
             90      the motor vehicle has major damage:
             91          (a) in more than one major component part, the certified vehicle inspector shall notify the
             92      Motor Vehicle Enforcement Division and the owner that the motor vehicle does not qualify for an
             93      unbranded title; or
             94          (b) requiring repair or replacement in one or no major component part he shall:
             95          (i) record on the vehicle damage disclosure statement the:
             96          (A) date of the inspection;
             97          (B) description of the motor vehicle including its vehicle identification number, make,
             98      model, and year of manufacture;
             99          (C) owner of the motor vehicle and name of the lienholder, if any, shown on the salvage
             100      certificate; and
             101          (D) major damage to the motor vehicle requiring repair or replacement;
             102          (ii) indicate that the motor vehicle may qualify for an unbranded title if the major damage
             103      is repaired or the damaged part is replaced;
             104          (iii) sign the vehicle damage disclosure statement and attest to the information's accuracy;
             105          (iv) indicate whether an interim inspection of the motor vehicle damage repairs is required
             106      and which repairs require inspection prior to completion of repair work;
             107          (v) give to the owner a copy of the vehicle damage disclosure statement and deliver or mail
             108      a copy of the statement to the lienholder, if any, shown on the salvage certificate; and
             109          (vi) file the original vehicle damage disclosure statement with the Motor Vehicle
             110      Enforcement Division.
             111          (6) (a) Upon receipt by the Motor Vehicle Enforcement Division of notification from a
             112      certified vehicle inspector that a motor vehicle has had a prerepair inspection, the Motor Vehicle
             113      Enforcement Division shall make a record of the inspection.
             114          (b) Any subsequent prerepair inspections shall be disregarded by the Motor Vehicle
             115      Enforcement Division in evaluating the major damage to the motor vehicle and the repairs
             116      required.
             117          (7) A person who repairs or replaces major damage identified by a certified vehicle
             118      inspector on a motor vehicle in accordance with Subsection (1) shall:


             119          (a) record on the vehicle damage disclosure statement:
             120          (i) a description of the repairs made to the motor vehicle including how they were made;
             121      and
             122          (ii) his signature following the repair description with an attestation that the description
             123      is accurate;
             124          (b) obtain the signature of the certified vehicle inspector who performs an interim
             125      inspection, attesting that the repairs identified for interim inspection were satisfactorily completed;
             126          (c) file the original vehicle damage disclosure statement containing the repair information
             127      with the Motor Vehicle Enforcement Division; and
             128          (d) give a copy of the vehicle damage disclosure statement to the owner.
             129          Section 3. Section 41-1a-1009 is amended to read:
             130           41-1a-1009. Junk permit for vehicles, vessels, and outboard motors -- Determination
             131      by commission -- Disposal of vehicles -- Fees.
             132          (1) (a) The division shall issue a junk permit for a vehicle, vessel, or outboard motor that
             133      is considered junk as provided under this section.
             134          [(1)] (b) A vehicle, vessel, or outboard motor is [abandoned and inoperable] considered
             135      junk when:
             136          [(a)] (i) the vehicle, vessel, or outboard motor has been inspected by an authorized
             137      investigator or agent appointed by the commission; and
             138          [(b)] (ii) the authorized investigator or agent has made a written determination that the
             139      vehicle, vessel, or outboard motor cannot be rebuilt or reconstructed in a manner that allows its
             140      use as designed by the manufacturer.
             141          (c) (i) A vehicle, vessel, or outboard motor is considered junk if the insurer determines that
             142      it cannot be registered as provided under Section 41-1a-1013 .
             143          (ii) If a vehicle, vessel, or outboard motor is considered junk under this Subsection (1)(c),
             144      the division shall revoke the certificate of title as provided under Section 41-1a-110 .
             145          (2) (a) Before issuing a [written determination] junk permit under Subsection (1)(b), a
             146      signed statement is required from the purchaser of the vehicle, vessel, or outboard motor for
             147      salvage, identifying the vehicle, vessel, or outboard motor by identification number and certifying
             148      that the [inoperable] junk vehicle, vessel, or outboard motor will not be registered, rebuilt,
             149      reconstructed, or in any manner allowed to operate as designed by the manufacturer.


             150          (b) The operator of the junk or salvage yard disposing of [an inoperable] a junk vehicle,
             151      vessel, or outboard motor is required to keep copies of the junk permits, signed statements, and
             152      other written records required by the commission.
             153          (3) Upon a determination that a vehicle, vessel, or outboard motor is [inoperable and
             154      cannot be rebuilt or reconstructed] considered junk under this section, the vehicle, vessel, or
             155      outboard motor may be converted to scrap or otherwise disposed of without necessity of
             156      compliance with the requirements of Sections 41-1a-1010 and 41-1a-1011 .
             157          (4) If a junk permit is issued under this section, the vehicle, vessel, or outboard motor shall
             158      be destroyed, converted to scrap, or used for parts and may not be rebuilt or reconstructed and may
             159      not be registered.
             160          (5) The commission may collect a fee established in accordance with Section 63-38-3.2
             161      to cover the expenses of issuing a junk permit under this section.
             162          (6) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             163      division shall make rules establishing procedures for insurance companies to provide the
             164      information necessary to implement Subsection (1)(c).
             165          Section 4. Section 41-1a-1013 is enacted to read:
             166          41-1a-1013. Salvage vehicles -- Damage exceeding limits -- Registration prohibited.
             167          A salvage vehicle that is damaged by collision, flood, or other occurrence, to the extent that
             168      the cost of repairing the vehicle for safe operation on a highway exceeds its fair market value, may
             169      not be registered for use on the highway.
             170          Section 5. Effective date.
             171          This act takes effect on October 1, 2001.


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