MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Transportation; Ways and Means
By: Representative Moak
AN ACT TO REQUIRE SELLERS TO NOTIFY PROSPECTIVE BUYERS IF A MOTOR VEHICLE HAS BEEN SALVAGED, DISMANTLED OR REBUILT AT THE TIME THE VEHICLE IS OFFERED FOR SALE; TO REQUIRE THE NOTICE TO BE IN THE FORM OF A WRITTEN DISCLOSURE; TO PRESCRIBE ADDITIONAL NOTIFICATION REQUIREMENTS TO BE FOLLOWED BY COMMERCIAL SELLERS; TO PROVIDE PENALTIES FOR VIOLATIONS OF THIS ACT; TO REQUIRE THE DEPARTMENT OF REVENUE TO INVESTIGATE AND PROSECUTE THOSE VIOLATIONS; TO STIPULATE THE PROCEDURES TO BE FOLLOWED TO OBTAIN AN UNBRANDED TITLE TO A SALVAGE VEHICLE; TO REQUIRE THE OWNER TO SUBMIT AN APPLICATION TO THE DEPARTMENT OF REVENUE FOR AN UNBRANDED TITLE, TO REQUIRE THE DEPARTMENT OF REVENUE TO MAKE AN INDEPENDENT DETERMINATION ON WHETHER THE VEHICLE IS QUALIFIED TO RECEIVE AN UNBRANDED TITLE BASED ON CERTAIN SUBMITTED DOCUMENTATION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. As used in this act the following words shall have the meaning ascribed herein, unless the context clearly indicates otherwise:
(a) "Certified vehicle inspector" means:
(i) A person employed by the Department of Revenue as qualified through experience, training or both to identify and analyze damage to vehicles with either unibody or conventional frames;
(ii) A designated agent of the Department of Revenue as defined by Section 63-21-5(c); or
(iii) A person appointed by the Department of Revenue under the authority of Section 63-21-13(3) to perform the duties of a designated agent under Title 63, Chapter 21, Mississippi Code of 1972.
(b) "Major component part" means:
(i) The front body component of a motor vehicle consisting of the structure forward of the firewall;
(ii) The passenger body component of a motor vehicle including the firewall, roof and extending to and including the rear-most seating;
(iii) The rear body component of a motor vehicle consisting of the main cross member directly behind the rear-most seating excluding any auxiliary seating and structural body assembly rear of the cross members; and
(iv) The frame of a motor vehicle consisting of the structural member that supports the auto body.
(c) "Major damage" means:
(i) Damage to a major component part of the motor vehicle requiring ten (10) or more hours to repair or replace, as determined by a collision estimating guide recognized by the Department of Revenue;
(ii) For purposes of subparagraph (i) of this paragraph, repair or replacement hours do not include time spent on cosmetic repairs.
(d) "Owner" means the person who has the legal right to possession of the vehicle.
(e) "Salvage certificate" means:
(i) A certificate of ownership issued for a salvage vehicle before a new certificate of title is issued for the vehicle;
(ii) A salvage certificate is not valid for registration purposes.
(f) "Salvage vehicle" means any vehicle:
(i) Damaged by collision, flood or other occurrence to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or
(ii) That has been declared a salvage vehicle by an insurer or other state or jurisdiction, but is not precluded from further registration and titling.
(g) "Unbranded title" means a certificate of title for a previously damaged motor vehicle without any designation that the motor vehicle has been damaged.
(h) "Vehicle damage disclosure statement" means the form designed and furnished by the Department of Revenue for a damaged motor vehicle inspection under Section 3 of this act.
SECTION 2. (1) Any seller, commercial or private, of a salvaged or rebuilt motor vehicle, a previously salvaged, dismantled or rebuilt unbranded title motor vehicle or a factory buy-back motor vehicle shall notify the prospective buyer of any such motor vehicle that the motor vehicle is salvaged, dismantled or rebuilt, previously salvaged or rebuilt unbranded title motor vehicle or a factory buy-back motor vehicle. The seller shall deliver written documentation of this fact to the buyer at the time of sale. A commercial seller shall provide the notice on a form designed and supplied by the Department of Revenue and must also display the form in the center of the front driver side-door window when the vehicle is displayed or offered for sale.
(2) Any person who violates this act, upon conviction, shall be punished as follows:
(a) For a first offense by a fine of Five Hundred Dollars ($500.00) for each occurrence; and
(b) For a second or subsequent offense committed within three (3) years of a previous offense by a fine of One Thousand Dollars ($1,000.00) and by imprisonment for not more than six (6) months and by the revocation of the dealer's license for one (1) year.
(3) The Department of Revenue shall investigate and prosecute violations of this section. All law enforcement agencies shall assist the Department of Revenue in carrying out its duties under this section.
SECTION 3. (1) To obtain an unbranded title to a salvage vehicle, the vehicle must:
(a) Be a motor vehicle;
(b) (i) Have an unbranded Mississippi title or a Mississippi salvage certificate issued to replace an unbranded Mississippi title at the time the motor vehicle is inspected under paragraph (c); or
(ii) Have an unbranded title from another jurisdiction and the motor vehicle shall have been damaged in Mississippi as evidenced by an accident report;
(c) Be inspected by a certified vehicle inspector before any repairs on the motor vehicle following any major damage; and
(d) Have major damage in no more than one (1) major component part;
(2) The major damage identified by a certified vehicle inspector under subsection (1) of this section must be repaired in accordance with standards established by the Department of Revenue;
(3) Any interim inspection required by a certified vehicle inspector must be completed in accordance with the directions of the initial certified vehicle inspector and to the satisfaction of the interim certified vehicle inspector;
(4) The owner must apply to the Department of Revenue for authorization to obtain an unbranded title under Section 4 of this act;
(5) A flood damaged motor vehicle does not qualify for an unbranded title;
(6) A salvage vehicle that is seven (7) years old or older at the time of application for unbranding does not qualify for an unbranded title;
(7) If the certified vehicle inspector determines in an inspection under subsection (1) of this section that the motor vehicle has major damage:
(a) In more than one (1) major component part, the certified vehicle inspector shall notify the Department of Revenue and the owner that the motor vehicle does not qualify for an unbranded title; or
(b) Requiring repair or replacement in one (1) or no major component part, he shall:
(i) Record on the vehicle damage disclosure statement:
1. The date of the inspection;
2. A description of the motor vehicle including its vehicle identification number, make, model and year of manufacture;
3. The owner's name of the motor vehicle and the name of the lienholder, if any, shown on the salvage certificate; and
4. Any major damage to the motor vehicle requiring repair or replacement;
(ii) Indicate that the motor vehicle may qualify for an unbranded title if the major damage is repaired or the damaged part is replaced;
(iii) Sign the vehicle damage disclosure statement and attest to the information's accuracy;
(iv) Indicate whether an interim inspection of the motor vehicle damage repairs is required and which repairs require inspection before completion of repair work;
(v) Give the owner a copy of the vehicle damage disclosure statement and deliver or mail a copy of the statement to the lienholder, if any, shown on the salvage certificate;
(vi) File the original vehicle damage disclosure statement with the Department of Revenue; and
(8) A person who repairs or replaces major damage identified by a certified vehicle inspector on a motor vehicle in accordance with subsection (1) of this section shall:
(a) Record on the vehicle damage disclosure statement:
(i) A description of the repairs made to the motor vehicle including how they were made; and
(ii) His or her signature following the repair description with an attestation that the description is accurate;
(b) Obtain the signature of the certified vehicle inspector who performs an interim inspection, attesting that the repairs identified for interim inspection were satisfactorily completed;
(c) File the original vehicle damage disclosure statement containing the repair information with the Department of Revenue; and
(d) Give a copy of the vehicle damage disclosure statement to the owner.
SECTION 4. (1) If the certified vehicle inspector determines under Section 3 of this act that a motor vehicle may qualify for an unbranded title, following repair or replacement of the damaged major component part of the vehicle identified by the certified vehicle inspector, the owner may submit an application to the Department of Revenue for issuance of an unbranded title.
(2) The applicant for an unbranded title shall submit to the Department of Revenue an application together with the vehicle damage disclosure statement and other supporting documents required by the Department of Revenue.
(3) The Department of Revenue shall make an independent determination based on the vehicle damage disclosure statement and other relevant documents whether the motor vehicle is qualified to receive an unbranded title, and shall charge a fee of not less than Seventy-five Dollars ($75.00) for processing the application for and issuing the unbranded title.
SECTION 5. This act shall take effect and be in force from and after July 1, 2010.