Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 129 Third Substitute (2017GS)

Sponsor

Sen. Bramble, C.

Final action

Governor Signed 3/20/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• requires a motor vehicle auction operator to securely store a salvage vehicle sold at auction until the vehicle is possessed by the purchaser;
• requires a motor vehicle auction operator to maintain certain records;
• provides penalties for violations; and
• makes technical changes.

Every vote on this bill

Bill text

SALVAGE VEHICLE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Curtis S. Bramble
House Sponsor: 
Daniel McCay
LONG TITLE
General Description:
This bill amends provisions related to buying and selling a salvage vehicle at a motor
vehicle auction.
Highlighted Provisions:
This bill:
▸ requires a motor vehicle auction operator to securely store a salvage vehicle sold at
auction until the vehicle is possessed by the purchaser;
▸ requires a motor vehicle auction operator to maintain certain records;
▸ provides penalties for violations; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
41-3-201
, as last amended by Laws of Utah 2013, Chapter 463
41-3-201.7
, as last amended by Laws of Utah 2012, Chapter 390
41-3-702
, as last amended by Laws of Utah 2012, Chapters 379 and 390
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
41-3-201
 is amended to read:
41-3-201.
Licenses required -- Restitution -- Education.
(1) As used in this section, "new applicant" means a person who is applying for a
license that the person has not been issued during the previous licensing year.
(2) A person may not act as any of the following without having procured a license
issued by the administrator:
(a) a dealer;
(b) salvage vehicle buyer;
(c) salesperson;
(d) manufacturer;
(e) transporter;
(f) dismantler;
(g) distributor;
(h) factory branch and representative;
(i) distributor branch and representative;
(j) crusher;
(k) remanufacturer; or
(l) body shop.
(3) (a) Except as provided in Subsection (3)(c), a person may not bid on or purchase a
vehicle with a nonrepairable or salvage certificate as defined in Section 
41-1a-1001
 at or
through a motor vehicle auction unless the person is a licensed salvage vehicle buyer.
(b) Except as provided in Subsection (3)(c), a person may not offer for sale, sell, or
exchange a vehicle with a nonrepairable or salvage certificate as defined in Section 
41-1a-1001
at or through a motor vehicle auction except to a licensed salvage vehicle buyer.
(c) A person may offer for sale, sell, or exchange a vehicle with a nonrepairable or
salvage certificate as defined in Section 
41-1a-1001
 at or through a motor vehicle auction:
(i) to an out-of-state or out-of-country purchaser not licensed under this section, but
that is authorized to do business in the domestic or foreign jurisdiction in which the person is
domiciled or registered to do business;
(ii) subject to the restrictions in Subsection (3)(d), to an in-state purchaser not licensed
under this section that:
(A) has a valid business license in Utah; and
(B) has a Utah sales tax license; and
(iii) to a crusher.
(d) (i) An operator of a motor vehicle auction shall verify that an in-state purchaser not
licensed under this section has the licenses required in Subsection (3)(c)(ii).
(ii) An operator of a motor vehicle auction may only offer for sale, sell, or exchange
five vehicles with a salvage certificate as defined in Section 
41-1a-1001
 at or through a motor
vehicle auction in any 12 month period to an in-state purchaser that does not have a salvage
vehicle buyer license issued in accordance with Subsection 
41-3-202
(15).
(iii) The five vehicle limitation under this Subsection (3)(d) applies to each Utah sales
tax license and not to each person with the authority to use a sales tax license.
(iv) An operator of a motor vehicle auction may not sell a vehicle with a nonrepairable
certificate as defined in Section 
41-1a-1001
 to a purchaser otherwise allowed to purchase a
vehicle under Subsection (3)(c)(ii).
(e) For a vehicle with a salvage certificate purchased under Subsection (3)(c)(ii), an
operator of a motor vehicle auction shall:
(i) (A) until Subsection (3)(e)(i)(B) applies, make application for a salvage certificate
of title on behalf of the Utah purchaser within seven days of the purchase if the purchaser does
not have a salvage vehicle buyer license, dealer license, body shop license, or dismantler
license issued in accordance with Section 
41-3-202
; or
(B) beginning on or after the date that the Motor Vehicle Division has implemented the
Motor Vehicle Division's GenTax system, make application electronically, in a form and time
period approved by the Motor Vehicle Division, for a salvage certificate of title to be issued in
the name of the purchaser;
(ii) give to the purchaser a disclosure printed on a separate piece of paper that states:
"THIS DISCLOSURE STATEMENT MUST BE GIVEN BY THE SELLER TO THE
BUYER EVERY TIME THIS VEHICLE IS RESOLD WITH A SALVAGE CERTIFICATE
Vehicle Identification Number (VIN)
Year: Make: Model:
SALVAGE VEHICLE--NOT FOR RESALE WITHOUT DISCLOSURE
WARNING: THIS SALVAGE VEHICLE MAY NOT BE SAFE FOR OPERATION
UNLESS PROPERLY REPAIRED. SOME STATES MAY REQUIRE AN INSPECTION
BEFORE THIS VEHICLE MAY BE REGISTERED. THE STATE OF UTAH MAY
REQUIRE THIS VEHICLE TO BE PERMANENTLY BRANDED AS A REBUILT
SALVAGE VEHICLE. OTHER STATES MAY ALSO PERMANENTLY BRAND THE
CERTIFICATE OF TITLE.
_________________________________________________________________
Signature of Purchaser Date"; and
(iii) if applicable, provide evidence to the Motor Vehicle Division of:
(A) payment of sales taxes on taxable sales in accordance with Section 
41-1a-510
;
(B) the identification number inspection required under Section 
41-1a-511
; and
(C) the odometer disclosure statement required under Section 
41-1a-902
.
(f) The Motor Vehicle Division shall include a link to the disclosure statement
described in Subsection (3)(e)(ii) on its website.
(g) The commission may impose an administrative entrance fee established in
accordance with the procedures and requirements of Section 
63J-1-504
 not to exceed $10 on a
person not holding a license described in Subsection (3)(e)(i) that enters the physical premises
of a motor vehicle auction for the purpose of viewing available salvage vehicles prior to an
auction.
(h) A vehicle sold at or through a motor vehicle auction to an out-of-state purchaser
with a nonrepairable or salvage certificate may not be certificated in Utah until the vehicle has
been certificated out-of-state.
(4) (a) An operator of a motor vehicle auction shall keep a record of the sale of each
salvage vehicle.
(b) A record described under Subsection (4)(a) shall contain:
(i) the purchaser's name and address; and
(ii) the year, make, and vehicle identification number for each salvage vehicle sold.
(c) An operator of a motor vehicle auction shall:
(i) provide the record described in Subsection (4)(a) electronically in a method
approved by the division to the division within two business days of the completion of the
motor vehicle auction;
(ii) retain the record described in this Subsection (4) for five years from the date of
sale; and
(iii) make a record described in this Subsection (4) available for inspection by the
division at the location of the motor vehicle auction during normal business hours.
(5) (a) An operator of a motor vehicle auction shall store a salvage vehicle sold at
auction in a secure facility until the salvage vehicle is claimed as provided in this section.
(b) Beginning at the time of purchase and until the salvage vehicle is claimed, the
motor vehicle auction operator may collect a daily storage fee for the secure storage of each
salvage vehicle sold at auction.
(c) Except as provided in Subsection (5)(d), before releasing possession of a salvage
vehicle purchased at a motor vehicle auction to a person not licensed under this part or certified
as a tow truck operator under Title 72, Chapter 9, Part 6, Tow Truck Provisions, and if the
person claiming the vehicle is a person other than the purchaser of the vehicle, the motor
vehicle auction operator shall create a record that shall contain:
(i) the name and address, as verified by government issued identification, of the person
claiming the vehicle;
(ii) the year, make, and vehicle identification number of the claimed vehicle;
(iii) a written statement from the person claiming the vehicle indicating the location
where the salvage vehicle will be delivered; and
(iv) verification that the claimant has authorization from the purchaser to claim the
vehicle.
(d) If the salvage vehicle is claimed by a transporter or a tow truck operator, the
transporter or the tow truck operator shall submit to the motor vehicle auction operator a
written record on any release forms indicating the location where the salvage vehicle will be
delivered if delivered within the state.
(e) An operator of a motor vehicle auction shall:
(i) retain the record described in Subsection (5)(c) for five years from the date of sale;
and
(ii) make the record available for inspection by the division at the location of the motor
vehicle auction during normal business hours.
[
(5)
] 
(6)
 (a) If applicable, an operator of a motor vehicle auction shall comply with the
reporting requirements of the National Motor Vehicle Title Information System overseen by
the United States Department of Justice if the person sells a vehicle with a salvage certificate to
an in-state purchaser under Subsection (3)(c)(ii).
(b) The Motor Vehicle Division shall include a link to the National Motor Vehicle
Title Information System on its website.
[
(6)
] 
(7)
 (a) An operator of a motor vehicle auction that sells a salvage vehicle to a
person that is an out-of-country buyer shall:
(i) stamp on the face of the title so as not to obscure the name, date, or mileage
statement the words "FOR EXPORT ONLY" in all capital, black letters; and
(ii) stamp in each unused reassignment space on the back of the title the words "FOR
EXPORT ONLY."
(b) The words "FOR EXPORT ONLY" shall be:
(i) at least two inches wide; and
(ii) clearly legible.
[
(7)
] 
(8)
 A supplemental license shall be secured by a dealer, manufacturer,
remanufacturer, transporter, dismantler, crusher, or body shop for each additional place of
business maintained by the licensee.
[
(8)
] 
(9)
 (a) A person who has been convicted of any law relating to motor vehicle
commerce or motor vehicle fraud may not be issued a license or purchase a vehicle with a
salvage or nonrepairable certificate unless full restitution regarding those convictions has been
made.
(b) An operator of a motor vehicle auction, a dealer, or a consignor may not sell a
vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection [
(8)
]
(9)
(a) if the division has informed the operator of the motor vehicle auction, the dealer, or the
consignor in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable
or salvage certificate under Subsection [
(8)
] 
(9)
(a).
[
(9)
] 
(10)
 (a) The division may not issue a license to a new applicant for a new or used
motor vehicle dealer license, a new or used motorcycle dealer license, or a small trailer dealer
license unless the new applicant completes an eight-hour orientation class approved by the
division that includes education on motor vehicle laws and rules.
(b) The approved costs of the orientation class shall be paid by the new applicant.
(c) The class shall be completed by the new applicant and the applicant's partners,
corporate officers, bond indemnitors, and managers.
(d) (i) The division shall approve:
(A) providers of the orientation class; and
(B) costs of the orientation class.
(ii) A provider of an orientation class shall submit the orientation class curriculum to
the division for approval prior to teaching the orientation class.
(iii) A provider of an orientation class shall include in the orientation materials:
(A) ethics training;
(B) motor vehicle title and registration processes;
(C) provisions of Title 13, Chapter 5, Unfair Practices Act, relating to motor vehicles;
(D) Department of Insurance requirements relating to motor vehicles;
(E) Department of Public Safety requirements relating to motor vehicles;
(F) federal requirements related to motor vehicles as determined by the division; and
(G) any required disclosure compliance forms as determined by the division.
[
(10)
] 
(11)
 A person or purchaser described in Subsection (3)(c)(ii):
(a) may not purchase more than five salvage vehicles with a nonrepairable or salvage
certificate as defined in Section 
41-1a-1001
 in any 12-month period;
(b) may not, without first complying with Section 
41-1a-705
, offer for sale, sell, or
exchange more than two vehicles with a salvage certificate as defined in Section 
41-1a-1001
 in
any 12-month period to a person not licensed under this section; and
(c) may not, without first complying with Section 
41-1a-705
, offer for sale, sell, or
exchange a vehicle with a nonrepairable certificate as defined in Section 
41-1a-1001
 to a 
person not licensed under this section.
[
(11)
] 
(12)
 An operator of a motor vehicle auction, a dealer, or a consignor may not sell
a vehicle with a nonrepairable or salvage certificate to a buyer described in Subsection [
(10)
]
(11)
(a) if the division has informed the operator of the motor vehicle auction, the dealer, or the
consignor in writing that the buyer is prohibited from purchasing a vehicle with a nonrepairable
or salvage certificate under Subsection [
(10)
] 
(11)
(a).
Section 2. Section 
41-3-201.7
 is amended to read:
41-3-201.7.
Supplemental license for additional place of business restrictions --
Exception.
(1) (a) Subject to the requirements of Subsection (2), a supplemental license for an
additional place of business issued pursuant to Subsection 
41-3-201
[
(7)
]
(8)
 may only be issued
to a dealer if the dealer is:
(i) licensed in accordance with Section 
41-3-202
;
(ii) bonded in accordance with Section 
41-3-205
; and
(iii) in compliance with existing rules promulgated by the administrator of the division
under Section 
41-3-105
.
(b) A supplemental license for a permanent additional place of business may only be
issued to a used motor vehicle dealer if:
(i) the dealer independently satisfies the bond requirements under Section 
41-3-205
 for
the permanent additional place of business;
(ii) the dealer is in compliance with existing rules promulgated by the administrator of
the division under Section 
41-3-105
; and
(iii) the permanent additional place of business meets all the requirements for a
principal place of business.
(2) (a) Except as provided in Subsections (2)(c) and (3), a supplemental license for an
additional place of business issued pursuant to Subsection 
41-3-201
[
(7)
]
(8)
 for a new motor
vehicle dealer may not be issued for an additional place of business that is beyond the
geographic specifications outlined as the area of responsibility in the dealer's franchise
agreement.
(b) A new motor vehicle dealer shall provide the administrator with a copy of the
portion of the new motor vehicle dealer's franchise agreement identifying the dealer's area of
responsibility before being issued a supplemental license for an additional place of business.
(c) The restrictions under Subsections (2)(a) and (b) do not apply to a new motor
vehicle dealer if the license for an additional place of business is being issued for the sale of
used motor vehicles.
(3) The provisions of Subsection (2) do not apply if the additional place of business is
a trade show or exhibition if:
(a) there are five or more dealers participating in the trade show or exhibition; and
(b) the trade show or exhibition takes place at a location other than the principal place
of business of one of the dealers participating in the trade show or exhibition.
(4) A supplemental license for a temporary additional place of business issued to a
used motor vehicle dealer may not be for longer than 10 consecutive days.
Section 3. Section 
41-3-702
 is amended to read:
41-3-702.
Civil penalty for violation.
(1) The following are civil violations under this chapter and are in addition to criminal
violations under this chapter:
(a) Level I:
(i) failing to display business license;
(ii) failing to surrender license of salesperson because of termination, suspension, or
revocation;
(iii) failing to maintain a separation from nonrelated motor vehicle businesses at
licensed locations;
(iv) issuing a temporary permit improperly;
(v) failing to maintain records;
(vi) selling a new motor vehicle to a nonfranchised dealer or leasing company without
licensing the motor vehicle;
(vii) special plate violation; [
and
]
(viii) failing to maintain a sign at a principal place of business[
.
]
; and
(ix) failing to store a salvage vehicle purchased at a motor vehicle auction in a secure
location until the purchaser or a transporter has provided the proper documentation to take
possession of the salvage vehicle.
(b) Level II:
(i) failing to report sale;
(ii) dismantling without a permit;
(iii) manufacturing without meeting construction or vehicle identification number
standards;
(iv) withholding customer license plates; [
or
]
(v) selling a motor vehicle on consecutive days of Saturday and Sunday[
.
]
; or
(vi) failing to record and report the sale of a salvage vehicle at a motor vehicle auction
as described in Section 
41-3-201
.
(c) Level III:
(i) operating without a principal place of business;
(ii) selling a new motor vehicle without holding the franchise;
(iii) crushing a motor vehicle without proper evidence of ownership;
(iv) selling from an unlicensed location;
(v) altering a temporary permit;
(vi) refusal to furnish copies of records;
(vii) assisting an unlicensed dealer or salesperson in sales of motor vehicles;
(viii) advertising violation;
(ix) failing to separately identify the fees required by Title 41, Chapter 1a, Motor
Vehicle Act;
(x) encouraging or conspiring with unlicensed persons to solicit for prospective
purchasers; and
(xi) selling, offering for sale, or displaying for sale or exchange a vehicle, vessel, or
outboard motor in violation of Section 
41-1a-705
.
(2) (a) The schedule of civil penalties for violations of Subsection (1) is:
(i) Level I: $25 for the first offense, $100 for the second offense, and $250 for the third
and subsequent offenses;
(ii) Level II: $100 for the first offense, $250 for the second offense, and $1,000 for the
third and subsequent offenses; and
(iii) Level III: $250 for the first offense, $1,000 for the second offense, and $5,000 for
the third and subsequent offenses.
(b) When determining under this section if an offense is a second or subsequent
offense, only prior offenses committed within the 12 months prior to the commission of the
current offense may be considered.
(3) The following are civil violations in addition to criminal violations under Section
41-1a-1008
:
(a) knowingly selling a salvage vehicle, as defined in Section 
41-1a-1001
, without
disclosing that the salvage vehicle has been repaired or rebuilt;
(b) knowingly making a false statement on a vehicle damage disclosure statement, as
defined in Section 
41-1a-1001
; or
(c) fraudulently certifying that a damaged motor vehicle is entitled to an unbranded
title, as defined in Section 
41-1a-1001
, when it is not.
(4) The civil penalty for a violation under Subsection (3) is:
(a) not less than $1,000, or treble the actual damages caused by the person, whichever
is greater; and
(b) reasonable attorney fees and costs of the action.
(5) A civil action may be maintained by a purchaser or by the administrator.