Representative James A. Dunnigan proposes the following substitute bill:


1     
VEHICLE REPAIR AND NOTIFICATION AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Curtis S. Bramble

5     
House Sponsor: James A. Dunnigan

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to notification requirements regarding salvage
10     vehicles and vehicle repair requirements.
11     Highlighted Provisions:
12          This bill:
13          ▸     amends language required in a contract for sale or lease of a salvage or total loss
14     vehicle regarding possible impacts of a salvage title;
15          ▸     amends provisions related to title disclosures of vehicles declared a total loss due to
16     theft;
17          ▸     requires certain repair facilities that repair vehicles equipped with advanced driver
18     assistance systems to:
19               •     inform the customer regarding the recalibration requirements for the advanced
20     driver assistance system and whether the proper recalibration will be performed;
21               •     if the recalibration of the advanced driver assistance system will be performed,
22     meet or exceed the original manufacturer's specifications; and
23               •     if the recalibration was not completed successfully, inform the customer that the
24     vehicle should be taken to the manufacturer's certified repair shop or other
25     repair shop capable of providing the proper recalibration and repair;

26          ▸     amends provisions related to disclosure of insurance coverage related to automotive
27     glass repair and recalibration; and
28          ▸     makes technical changes.
29     Money Appropriated in this Bill:
30          None
31     Other Special Clauses:
32          None
33     Utah Code Sections Affected:
34     AMENDS:
35          41-1a-1004, as last amended by Laws of Utah 2013, Chapter 463
36          41-1a-1005.3, as enacted by Laws of Utah 2012, Chapter 390
37     ENACTS:
38          41-6a-1645, Utah Code Annotated 1953
39     

40     Be it enacted by the Legislature of the state of Utah:
41          Section 1. Section 41-1a-1004 is amended to read:
42          41-1a-1004. Certificate of title -- Salvage vehicles -- Buyer notification of salvage
43     or total loss vehicle.
44          (1) If the division is able to ascertain the fact, at the time application is made for initial
45     registration or transfer of ownership of a salvage vehicle, the title shall be branded:
46          (a) rebuilt and restored to operation;
47          (b) in a flood and restored to operation; or
48          (c) not restored to operation.
49          (2) (a) (i) Except as provided in Subsection (2)(b), before the sale of a vehicle for
50     which a salvage certificate or branded title has been knowingly issued or knowingly declared a
51     total loss by an insurance company, the seller shall provide the prospective purchaser with
52     written notification that a salvage certificate or a branded title has been issued for the vehicle.
53          (ii) If the vehicle is a salvage vehicle or if the vehicle has been declared a total loss by
54     an insurance company, the notification shall be as required in Section 41-1a-1005.3.
55          (b) The requirement to provide written notification under Subsection (2)(a) does not
56     apply if:

57          (i) the prospective purchaser, motor vehicle auction, or seller is:
58          [(i)] (A) a licensed motor vehicle dealer whose primary business is auctioning salvage
59     motor vehicles to licensed salvage vehicle buyers; or
60          [(ii)] (B) an insurance company, if the sale of the vehicle is the result of a total loss
61     settlement[.]; or
62          (ii) the vehicle has been stolen, recovered, and declared a total loss by an insurance
63     company but does not meet the definition of a salvage vehicle.
64          (3) (a) An advertisement for the sale of a vehicle for which a salvage certificate or
65     branded title has been issued shall disclose that a salvage certificate or branded title has been
66     issued for the vehicle.
67          (b) (i) Except as provided in Subsection (3)(b)(ii), an advertisement for a vehicle
68     declared a total loss by an insurance company shall disclose that the vehicle has been declared
69     a total loss by an insurance company.
70          (ii) A vehicle that has been stolen, recovered, and declared a total loss by an insurance
71     company but does not meet the definition of a salvage vehicle is exempted from the advertising
72     requirement described in Subsection (3)(b)(i).
73          (iii) Subsections (3)(a), (3)(b)(i), and (3)(b)(ii) do not apply to a motor vehicle auction
74     or a consigner to a motor vehicle auction if no disclosure is required under Section
75     41-1a-1005.3
76          [(b)] (c) The advertisement disclosure under Subsection (3)(a) or (b)(i) shall:
77          (i) be displayed at least as prominently as the description of the advertised vehicle is
78     displayed; and
79          [(ii) use the words "salvage certificate" or "branded title" in the advertisement.]
80          (ii) if a salvage certificate or branded title has been issued or the vehicle has been
81     declared a total loss by an insurance company:
82          (A) use the words "salvage certificate" or "branded title" in the advertisement; or
83          (B) use the words "insurer declared total loss."     
84          Section 2. Section 41-1a-1005.3 is amended to read:
85          41-1a-1005.3. Resale of salvage and total loss vehicles.
86          (1) A motor vehicle may not be offered, auctioned, sold, leased, transferred, or
87     exchanged by an owner, that is not a manufacturer, dealer, motor vehicle auction, or consignor

88     to a motor vehicle auction with the knowledge that it is a salvage vehicle or a total loss vehicle
89     without prior written disclosure being given to any prospective purchaser.
90          (2) For a disclosure required by Subsection (1), the following disclosure language shall
91     be contained in each contract for sale or lease of a salvage vehicle to a purchaser or shall be
92     contained in a form affixed to a contract, lease, bill of sale, or any other document that transfers
93     title:
94          "THIS DISCLOSURE STATEMENT MUST BE GIVEN BY THE SELLER TO THE
95     BUYER EVERY TIME THIS VEHICLE IS KNOWINGLY RESOLD WITH A SALVAGE
96     CERTIFICATE OR TOTAL LOSS HISTORY
97          DISCLOSURE STATEMENT
98          Vehicle Identification Number (VIN)
99          Year:          Make:           Model:
100          SALVAGE OR TOTAL LOSS VEHICLE--NOT FOR RESALE WITHOUT
101     DISCLOSURE
102          WARNING: THIS VEHICLE HAS A SALVAGE OR TOTAL LOSS HISTORY
103     WHICH MAY MATERIALLY AFFECT THE VALUE, SAFETY AND/OR CONDITION OF
104     THE VEHICLE. BECAUSE OF ITS CONDITION THE MANUFACTURER'S WARRANTY
105     OR SERVICE CONTRACT ON THIS VEHICLE MAY BE AFFECTED. THIS [SALVAGE]
106     VEHICLE MAY NOT BE SAFE FOR OPERATION UNLESS PROPERLY REPAIRED.
107     SOME STATES MAY REQUIRE AN INSPECTION BEFORE THIS VEHICLE [MAY BE]
108     IS REGISTERED. THE STATE OF UTAH MAY REQUIRE THIS VEHICLE TO BE
109     PERMANENTLY BRANDED AS A REBUILT SALVAGE VEHICLE. OTHER STATES
110     MAY ALSO PERMANENTLY BRAND THE CERTIFICATE OF TITLE. YOU MAY ASK
111     THE SELLER OF THE VEHICLE TO SEE A COPY OF THE NATIONAL MOTOR
112     VEHICLE TITLE INFORMATION SYSTEM (NMVTIS) VEHICLE HISTORY REPORT.
113     YOU MAY ALSO INDEPENDENTLY OBTAIN THE REPORT BY CHECKING NMVTIS
114     ONLINE AT WWW.VEHICLEHISTORY.GOV.
115          _________________________________________________________________
116          Signature of Purchaser                                   Date"
117          Section 3. Section 41-6a-1645 is enacted to read:
118          41-6a-1645. Advanced driver assistance systems -- Repair, calibration, and

119     disclosure.
120          (1) As used in this section, "advanced driver assistance system" means an electronic
121     safety system designed to support the driver and vehicle while operating on roads and highways
122     that is intended to increase vehicle safety and reduce losses associated with automobile crashes.
123          (2) If the vehicle is equipped with an advanced driver assistance system, an automotive
124     glass company or repair facility approving or conducting glass repair, replacement, or
125     recalibration shall:
126          (a) before approving or performing a vehicle glass repair or replacement, inform the
127     consumer if a recalibration of that system is required and if such recalibration will be
128     performed; and
129          (b) if performing such recalibration, meet or exceed the manufacturer's specifications.
130          (3) (a) The automotive glass company or repair facility shall provide the consumer:
131          (i) an itemized description of the work to be done on the vehicle; and
132          (ii) if an insurer is paying all or part of the repair, the total amount the insurer has
133     agreed to pay for the work described in Subsection(3)(a)(i).
134          (b) An insurance company that makes payment for work described in Subsection (3)(a)
135     may not be required to pay more than a fair and competitive price for the local market area.
136          (c) An automotive glass company or repair facility may not represent to a customer that
137     the cost of a repair, replacement, or recalibration will be paid for entirely by the customer's
138     insurer and at no cost to the customer unless the cost of the repair, replacement, or recalibration
139     is fully covered and approved by the insurer.
140          (d) If a recalibration was not performed or not completed successfully, the automotive
141     glass company or repair facility shall inform the consumer electronically or in writing that the
142     recalibration was not successful or was not performed and that the vehicle should be taken to a
143     vehicle manufacturer's certified dealership, a qualified automobile glass company, or repair
144     facility capable of performing the recalibration of an advanced driver assistance system that
145     meets or exceeds the manufacturer's specifications.
146          (4) An automotive glass company or repair facility conducting a scan or recalibration
147     for vehicle glass repair or replacement services on a vehicle equipped with an advanced driver
148     assistance system:
149          (a) is not limited to vehicle glass, tooling, or equipment dictated or recommended by

150     the manufacturer's procedures or specifications; and
151          (b) shall recalibrate the advanced driver assistance system to meet or exceed the
152     manufacturer's procedures or specifications.
153          (5) An automotive glass company or repair facility may only bill or charge for vehicle
154     glass repair, replacement, or recalibration services that are performed and necessary.
155          (6) A person with actual knowledge that the advanced driver assistance system of a
156     motor vehicle is inoperable or has not been repaired or recalibrated after a vehicle glass repair
157     or replacement as described in this section may not knowingly sell, offer for sale, or display for
158     sale, the motor vehicle without providing written notice to the purchaser that:
159          (a) the advanced driver assistance system has not been repaired or recalibrated to the
160     manufacturer's specifications; or
161          (b) the advanced driver assistance system is inoperable.
162          (7) A violation described in Subsections (1) through (6) is a civil penalty of $500.
163          (8) (a) In addition to any other penalties, a purchaser may bring a civil action to recover
164     damages resulting from a seller's failure to provide notice under Subsection (6).
165          (b) The amount of damages that may be recovered in a civil action described in
166     Subsection (8)(a) is the greater of:
167          (i) the amount of the actual damages; or
168          (ii) $1,500.