salvage vehicles; recovered
vehicles; titles
HB 2415 adds to the requirements the Arizona Department of Transportation Motor Vehicle Division (MVD) must comply with prior to issuing a regular certificate of title to a vehicle that was previously issued a salvage certificate of title if the vehicle is stolen, subsequently recovered, and is not wrecked or stripped of essential parts.
The Transportation amendment for HB 2415 was substituted in the Committee of the Whole and the bill was amended as follows:
Current statute requires MVD to issue a regular certificate of title to a vehicle that was previously issued a salvage certificate of title if the vehicle is stolen, subsequently recovered, and is not wrecked or stripped of essential parts. Current statute defines “essential parts” as integral and body parts, the removal, alteration or substitution of which will tend to conceal the identity or substantially alter the appearance of the vehicle. Pursuant to MVD’s current policy, an owner of a currently registered stolen recovered vehicle, may apply for a “salvage” and “restored salvage” at the same time if the recovered vehicle is operable and has a level II inspection performed. MVD policy allows a stolen vehicle that is recovered in an undamaged condition to be issued a title without the “restored salvage” status if the vehicle is recovered in an “undamaged” condition. MVD’s policy states that “undamaged” means that the vehicle was not wrecked or stripped in any way. MVD does not consider minor scratches, dents and broken windows as damage; however, the Division requires a letter (affidavit) from the insurance company stating the vehicle is a recovered theft. A level II inspection is preformed to ensure the vehicle is properly equipped for highway use and properly identified.
· Requires an insurance company or its authorized agent to submit an affidavit in a form prescribed by MVD that states the following:
1. The vehicle is recovered and not wrecked or stripped of essential parts.
2. A mechanic inspected the vehicle and determined that all essential parts are present.
· Defines “essential parts as either:
1. Integral and body parts, the removal, alteration or substitution of which will tend to conceal the identity or substantially alter the appearance of the vehicle.
2. A supplemental restraint system.
· Establishes a class 6 felony for a person who makes a false affirmation or certification regarding salvage title applications, disclosure or affidavits.
HB 2415 was amended in the Transportation Committee as follows:
· Specifies that a person who knowingly makes a false certification regarding a salvage vehicle is guilty of a class 6 felony.
· States that before issuing a certificate of title to a vehicle that has been previously issued a salvage certificate of title, MVD shall conduct a Level 3 inspection, including that all essential parts of the vehicle are present and that the repairs described in the affidavit have been completed.
· Includes in the definition of essential parts air bag systems and component parts necessary to legally operate a motor vehicle on a highway.
· Makes technical and conforming changes.
The COW adopted a substitute amendment to the Transportation Committee amendment. The COW amendment contained the committee amendment with the following changes:
· Stipulates that MVD shall issue a regular certificate of title to a vehicle if:
1. the vehicle is a theft recovered and not wrecked or stripped of essential parts.
· Clarifies that this applies only to salvage titles resulting from a total loss settlement arising from a vehicle theft.
· Specifies that the inspection is a level 3 inspection performed by MVD.