Bill Text: OH HB468 | 2013-2014 | 130th General Assembly | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relative to salvage motor vehicles and junk motor vehicles.

Spectrum: Partisan Bill (Republican 10-0)

Status: (Passed) 2014-12-18 - Governor' Action [HB468 Detail]

Download: Ohio-2013-HB468-Comm_Sub.html

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As Reported by the House Insurance Committee

130th General Assembly Regular Session 2013-2014

H. B. No. 468

Representatives Sears, McGregor 

Cosponsors: Representatives Becker, Hackett, Henne 

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A BILL

To amend sections 505.871, 4501.25, 4505.061,

1

4738.01, 4738.02, 4738.03, 4738.17, and 4738.99,

2

to enact sections 3937.19, 4738.021, 4738.022,

3

4738.023, and 4738.031, and to repeal section

4

4738.18 of the Revised Code relative to salvage

5

motor vehicles and junk motor vehicles.

6

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 505.871, 4501.25, 4505.061, 4738.01,	7
4738.02, 4738.03, 4738.17, and 4738.99 be amended and sections	8
3937.19, 4738.021, 4738.022, 4738.023, and 4738.031 of the Revised	9
Code be enacted to read as follows:	10

Sec. 505.871. (A) A board of township trustees may provide,	11
by resolution, for the removal of any vehicle in the	12
unincorporated territory of the township that the board determines	13
is a junk motor vehicle, as defined in section 505.173 of the	14
Revised Code.	15

(B) If a junk motor vehicle is located on public property,	16
the board of township trustees may provide in the resolution for	17
the immediate removal of the vehicle.	18

(C)(1) If a junk motor vehicle is located on private	19
property, the board of township trustees may provide in the	20
resolution for the removal of the vehicle not sooner than fourteen	21
days after the board serves written notice of its intention to	22
remove or cause the removal of the vehicle on the owner of the	23
land and any holders of liens of record on the land.	24

(2) The notice provided under this division shall generally	25
describe the vehicle to be removed and indicate all of the	26
following:	27

(a) The board has determined that the vehicle is a junk motor	28
vehicle.	29

(b) If the owner of the land fails to remove the vehicle	30
within fourteen days after service of the notice, the board may	31
remove or cause the removal of the vehicle.	32

(c) Any expenses the board incurs in removing or causing the	33
removal of the vehicle may be entered upon the tax duplicate and	34
become a lien upon the land from the date of entry.	35

(3) The board shall serve the notice under this division by	36
sending it by certified mail, return receipt requested, to the	37
owner of the land, if the owner resides in the unincorporated	38
territory of the township or if the owner resides outside the	39
unincorporated territory of the township and the owner's address	40
is known or ascertainable through an exercise of reasonable	41
diligence. The board also shall send notice in such manner to any	42
holders of liens of record on the land. If a notice sent by	43
certified mail is refused or unclaimed, or if an owner's address	44
is unknown and cannot reasonably be ascertained by an exercise of	45
reasonable diligence, the board shall publish the notice once in a	46
newspaper of general circulation in the township before the	47
removal of the vehicle, and, if the land contains any structures,	48
the board also shall post the notice on the principal structure on	49
the land.	50

A notice sent by certified mail shall be deemed to be served	51
for purposes of this section on the date it was received as	52
indicated by the date on a signed return receipt. A notice given	53
by publication shall be deemed to be served for purposes of this	54
section on the date of the newspaper publication.	55

(D) The board of township trustees may cause the removal or	56
may employ the labor, materials, and equipment necessary to remove	57
a junk motor vehicle under this section. All expenses incurred in	58
removing or causing the removal of a junk motor vehicle, when	59
approved by the board, shall be paid out of the township general	60
fund from moneys not otherwise appropriated, except that if the	61
expenses exceed five hundred dollars, the board may borrow moneys	62
from a financial institution to pay the expenses in whole or in	63
part.	64

(E) The board of township trustees may utilize any lawful	65
means to collect the expenses incurred in removing or causing the	66
removal of a junk motor vehicle under this section, including any	67
fees or interest paid to borrow moneys under division (D) of this	68
section. The board may direct the township fiscal officer to	69
certify the expenses and a description of the land to the county	70
auditor, who shall place the expenses upon the tax duplicate as a	71
lien upon the land to be collected as other taxes and returned to	72
the township general fund.	73

(F)(1) As used in this division:

74

(a) "Motor vehicle salvage dealer" has the same meaning as in	75
section 4738.01 of the Revised Code.	76

(b) "Scrap metal processing facility" has the same meaning as	77
in section 4737.05 of the Revised Code.	78

(2) Notwithstanding section 4513.63 of the Revised Code, if a	79
junk motor vehicle is removed and disposed of in accordance with	80
this section, the clerk of courts of the county shall issue a	81
salvage certificate of title for that junk motor vehicle to a	82
motor vehicle salvage dealer licensed pursuant to Chapter 4738. of	83
the Revised Code or a scrap metal processing facility licensed	84
pursuant to sections 4737.05 to 4737.12 of the Revised Code if all	85
of the following conditions are satisfied:	86

(a) The board of township trustees has entered into a	87
contract with the motor vehicle salvage dealer or scrap metal	88
processing facility for the disposal or removal of the junk motor	89
vehicle in accordance with section 505.85 of the Revised Code.	90

(b) The fiscal officer for the board of township trustees	91
executes in triplicate an affidavit prescribed by the registrar of	92
motor vehicles describing the junk motor vehicle and the manner of	93
removal or disposal and certifying that all requirements of this	94
section and the notice and records search requirements of section	95
4505.101 of the Revised Code have been satisfied.	96

(c) The board of township trustees retains the original	97
affidavit for the board's records and furnishes the remaining two	98
copies of the affidavit to the motor vehicle salvage dealer or	99
scrap metal processing facility.	100

(d) The motor vehicle salvage dealer or scrap metal	101
processing facility presents one copy of the affidavit to the	102
clerk.	103

(3) The clerk shall issue the salvage certificate of title,	104
free and clear of all liens and encumbrances, not later than	105
thirty days after the motor vehicle salvage dealer or scrap metal	106
processing facility presents the affidavit pursuant to division	107
(F)(2) of this section.	108

(G) Notwithstanding section 4513.65 of the Revised Code, but	109
subject to division (G)(H)(2) of this section, any collector's	110
vehicle that meets the definition of a junk motor vehicle is	111
subject to removal under this section.	112

(G)(H)(1) Nothing in this section affects the authority of a	113
board of township trustees to adopt and enforce resolutions under	114
section 505.173 of the Revised Code to regulate the storage of	115
junk motor vehicles on private or public property in the	116
unincorporated territory of the township.	117

(2) A resolution adopted under this section is subject to the	118
same restrictions specified in division (A) of section 505.173 of	119
the Revised Code for resolutions adopted under that section.	120

Sec. 3937.19.  (A) A person who purchases, takes possession	121
of, and duly registers a motor vehicle in good faith may submit a	122
claim to the purchaser's insurance company for the loss of the	123
motor vehicle if both of the following apply:	124

(1) The purchaser is subsequently permanently divested of the	125
right of ownership or possession to that motor vehicle because a	126
court or other law enforcement entity has determined that the	127
certificate of title or vehicle identification number has been	128
falsified or otherwise tampered with or illegally altered, or that	129
the motor vehicle had been stolen prior to the purchase.	130

(2) The purchaser has comprehensive insurance coverage on the	131
motor vehicle that covers damage to or the loss of the motor	132
vehicle.	133

(B) An insurance company that holds a current policy on a	134
motor vehicle containing comprehensive coverage that covers damage	135
to or the loss of the vehicle for which a claim is made under this	136
section shall pay the claim, less any applicable deductible, in an	137
amount not less than an amount based on the value of the motor	138
vehicle at the time the purchaser was divested of the right of	139
ownership and possession if the insurer determines that the	140
purchase was made in good faith and a fair market value was paid.	141
The insurance company shall have the right to assert any	142
applicable policy exclusions, conditions, or provisions.	143

Sec. 4501.25.  There is hereby created in the state treasury	144
the state bureau of motor vehicles fund. The fund shall consist of	145
all money collected by the registrar of motor vehicles, including	146
taxes, fees, and fines levied, charged, or referred to in Chapters	147
4501., 4503., 4505., 4506., 4507., 4509., 4510., 4511., 4517.,	148
4519., and 4521., and sections 3123.59, 2935.27, 2937.221,	149
3123.59, 4738.06, and 4738.13, and 4738.18 of the Revised Code	150
unless otherwise designated by law. The fund shall be used to pay	151
the expenses of administering the law relative to the powers and	152
duties of the registrar of motor vehicles. All investment earnings	153
of the fund shall be retained by the fund.	154

Sec. 4505.061.  If the application for a certificate of title	155
refers to a motor vehicle last previously registered in another	156
state, the application shall be accompanied by a physical	157
inspection certificate issued by the department of public safety	158
verifying the make, body type, model, and manufacturer's vehicle	159
identification number of the motor vehicle for which the	160
certificate of title is desired. The physical inspection	161
certificate shall be in such form as is designated by the	162
registrar of motor vehicles. The physical inspection of the motor	163
vehicle shall be made at a deputy registrar's office, or at an	164
established place of business operated by a licensed motor vehicle	165
dealer. Additionally, the physical inspection of a salvage vehicle	166
owned by an insurance company may be made at an established place	167
of business operated by a salvage motor vehicle salvage dealer,	168
salvage motor vehicle auction, or salvage motor vehicle pool	169
licensed under Chapter 4738. of the Revised Code. The deputy	170
registrar, the motor vehicle dealer, or the salvage motor vehicle	171
salvage dealer, salvage motor vehicle auction, or salvage motor	172
vehicle pool may charge a maximum fee of two dollars and	173
seventy-five cents commencing on July 1, 2001, three dollars and	174
twenty-five cents commencing on January 1, 2003, and three dollars	175
and fifty cents commencing on January 1, 2004, for conducting the	176
physical inspection.	177

The clerk of the court of common pleas shall charge a fee of	178
one dollar and fifty cents for the processing of each physical	179
inspection certificate. The clerk shall retain fifty cents of the	180
one dollar and fifty cents so charged and shall pay the remaining	181
one dollar to the registrar by monthly returns, which shall be	182
forwarded to the registrar not later than the fifth day of the	183
month next succeeding that in which the certificate is received by	184
the clerk. The registrar shall pay such remaining sums into the	185
state bureau of motor vehicles fund established by section 4501.25	186
of the Revised Code.	187

Sec. 4738.01.  As used in sections 4738.01 to 4738.16 of the	188
Revised Code:	189

(A) "Motor vehicle salvage dealer" means any person who	190
engages in business primarily for the purpose of selling salvage	191
motor vehicle parts and secondarily for the purpose of selling at	192
retail salvage motor vehicles or manufacturing or selling a	193
product of gradable scrap metal.	194

(B) "Salvage motor vehicle" means any motor vehicle which is	195
in a wrecked, dismantled, or worn out condition, or unfit for	196
operation as a motor vehicle.	197

(C) "Salvage motor vehicle auction" means any person who on	198
his ownthe person's behalf or as an agent for a third party	199
engages in business for the purpose of auctioning salvage motor	200
vehicles to motor vehicle salvage dealers.	201

(D) "Salvage motor vehicle pool" means any person who as an	202
agent for a third party engages in business for the purpose of	203
storing, displaying, and offering for sale salvage motor vehicles	204
to motor vehicle salvage dealers.	205

(E) "Engaging in business" means commencing, conducting, or	206
continuing in business, or liquidating a business when the	207
liquidator thereof holds himselfthe liquidator out to be	208
conducting such business; making a casual sale or otherwise making	209
transfers in the ordinary course of business when the transfers	210
are made in connection with the disposition of all or	211
substantially all of the transferor's assets is not engaging in	212
business.	213

(F) "Retail sale" or "sale at retail" means the act or	214
attempted act of selling, bartering, exchanging, or otherwise	215
disposing of salvage motor vehicles or salvage motor vehicle parts	216
to an ultimate purchasera person who purchases the salvage motor	217
vehicle for use as a consumer.	218

(G) "UltimateAuthorized purchaser" means, with respect to	219
anya person who purchases a salvage motor vehicle orfrom a	220
salvage motor vehicle part, a purchaser who in good faith	221
purchases suchauction or salvage motor vehicle or partpoolfor	222
purposes other than resale and is not licensed as a motor vehicle	223
dealer under Chapter 4517. of the Revised Code.and who satisfies	224
either of the following criteria:	225

(1) The person is a motor vehicle salvage dealer who is	226
licensed pursuant to this chapter; a junk yard that is licensed	227
pursuant to section 4737.07 of the Revised Code; a scrap metal	228
processing facility that is licensed pursuant to section 4737.05	229
of the Revised Code; a used motor vehicle dealer who is licensed	230
pursuant to section 4517.02 of the Revised Code; a salvage	231
dismantler or automotive recycler; or a salvage dealer, junk yard,	232
scrap metal processing facility, used motor vehicle dealer,	233
salvage dismantler, or automotive recycler business authorized to	234
purchase salvage motor vehicles by another state, country, or	235
jurisdiction.	236

(2) The person does not satisfy the criteria described in	237
division (G)(1) of this section but has purchased not more than a	238
total of five salvage motor vehicles in the current calendar year	239
from any salvage motor vehicle auction or salvage motor vehicle	240
pool.	241

(H) "Business" includes any activities engaged in by any	242
person for the object of gain, benefit, or advantage either direct	243
or indirect.	244

(I) "Casual sale" means any transfer of a salvage motor	245
vehicle by a person other than a motor vehicle salvage dealer,	246
salvage motor vehicle auction, or salvage motor vehicle pool, to	247
an ultimate purchasera person who purchases the salvage motor	248
vehicle for use as a consumer.	249

Sec. 4738.02.  (A) Except as provided in divisions (B) and	250
(D)(E) of this section, no person shall engage in the business of	251
selling at retail salvage motor vehicles or salvage motor vehicle	252
parts, or assume to engage in any such business without first	253
obtaining a motor vehicle salvage dealer's license pursuant to	254
this chapter.	255

(B)(1) Except as provided in divisions (B)(1) and (C)(1) of	256
section 4738.03 of the Revised Codeand (E) of this section, no	257
person shall engage in the business of selling at retail salvage	258
motor vehicles nor, other than as a lessor, provide a location or	259
a space for the sale of salvage motor vehicles without first	260
obtaining a motor vehicle salvage dealer's license, a salvage	261
motor vehicle auction license, or a salvage motor vehicle pool	262
license pursuant to this chapter.	263

(2) Notwithstanding division (B)(1) of this section, a person	264
may sell salvage motor vehicles at retail to or through a salvage	265
motor vehicle auction or salvage motor vehicle pool without	266
obtaining any license pursuant to this chapter if both of the	267
following apply:	268

(a) The acquisition of salvage motor vehicles is incidental	269
to the primary business of the person.	270

(b) The disposal of those salvage motor vehicles is	271
incidental to the primary business of the person.	272

(C) No person shall make more than five casual sales of	273
salvage motor vehicles in a twelve-month period, commencing with	274
the day of the month in which the first such sale is made, nor	275
provide a location or space for the sale at retail of salvage	276
motor vehicles, without obtaining a motor vehicle salvage dealer's	277
license pursuant to this chaptercalendar year.	278

(C)(D) Except as provided in division (D)(E) of this section,	279
no person shall operate as a salvage motor vehicle auction or	280
salvage motor vehicle pool without first obtaining the appropriate	281
license pursuant to this chapter.	282

(D)(E) In case of the dissolution of a partnership by death,	283
the surviving partner may operate under any license obtained by	284
the partnership pursuant to this chapter for a period of sixty	285
days and the heirs or representatives of deceased persons and	286
receivers or trustees in bankruptcy appointed by any competent	287
authority may operate under the license of the person succeeded in	288
possession by the heir, representative, receiver, or trustee in	289
bankruptcy.	290

(E)(F) Nothing in this chapter applies to any public officer	291
performing his official duties.	292

Sec. 4738.021. (A) Every salvage motor vehicle auction and	293
salvage motor vehicle pool shall do all of the following:	294

(1) Keep an electronic record of all sales of salvage motor	295
vehicles and shall include in the record the make, model, year,	296
vehicle identification number, and the names and addresses of the	297
purchaser and seller of the salvage motor vehicle.	298

(2) Obtain from any authorized purchaser of an Ohio salvage	299
motor vehicle a copy of a driver's license, passport, or other	300
government-issued identification. Every salvage motor vehicle	301
auction and salvage motor vehicle pool shall maintain a copy of	302
this identification for a period of two years.	303

(3) Obtain from any person who is an authorized purchaser as	304
defined in division (G)(1) of section 4738.01 of the Revised Code	305
documented proof of any required license or other authorization to	306
do business pursuant to this chapter or, for any person residing	307
in a state, jurisdiction, or country that does not issue a motor	308
vehicle salvage dealer, junk yard, scrap metal processing	309
facility, used motor vehicle dealer, salvage dismantler, or	310
automotive recycler license, a declaration under penalty of	311
perjury that the authorized purchaser is authorized to purchase	312
salvage vehicles in that person's state, jurisdiction, or country.	313
Every salvage motor vehicle auction and salvage motor vehicle pool	314
shall maintain a copy of this documentation for a period of two	315
years.	316

(4) Obtain from any person who is an authorized purchaser as	317
defined in division (G)(2) of section 4738.01 of the Revised Code	318
a declaration under penalty of perjury that the authorized	319
purchaser is not making a purchase in excess of the applicable	320
limit identified in that division. The salvage motor vehicle	321
auction or salvage motor vehicle pool shall maintain that	322
declaration for a period of two years. The declaration may be	323
submitted by the authorized purchaser in electronic or written	324
format.	325

(B) Every salvage motor vehicle auction and salvage motor	326
vehicle pool shall submit the information collected pursuant to	327
division (A)(1) of this section to the registrar of motor vehicles	328
on a monthly basis pursuant to the rules adopted by the registrar	329
in division (C) of this section.	330

(C)(1) Within sixty days after the effective date of this	331
section, the registrar shall develop a statewide database for the	332
submission of the information collected pursuant to division	333
(A)(1) of this section. The system shall be used to maintain an	334
accurate record of all sales conducted by a salvage motor vehicle	335
auction or salvage motor vehicle pool.	336

(2) The registrar may adopt any rules pursuant to Chapter	337
119. of the Revised Code as necessary to facilitate the timely	338
submission of the information required pursuant to this section.	339

The registrar shall make the information the registrar	340
receives under this section available to any state or local law	341
enforcement agency upon request.	342

Sec. 4738.022. Every salvage motor vehicle auction and	343
salvage motor vehicle pool shall comply with the reporting	344
requirements of the national motor vehicle title information	345
system.	346

Sec. 4738.023.  Within thirty days after the sale of a	347
salvage motor vehicle, the registrar of motor vehicles shall issue	348
a salvage certificate of title to the purchaser of that salvage	349
motor vehicle containing the following notice in bold lettering:	350

"SALVAGE VEHICLE – NOT FOR RESALE WITHOUT DISCLOSURE.	351
WARNING: THIS SALVAGE VEHICLE MAY NOT BE SAFE FOR OPERATION UNLESS	352
PROPERLY REPAIRED. SOME STATES MAY REQUIRE AN INSPECTION BEFORE	353
THIS VEHICLE MAY BE REGISTERED. THE STATE OF OHIO MAY REQUIRE THIS	354
VEHICLE TO BE PERMANENTLY BRANDED AS A REBUILT SALVAGE VEHICLE.	355
OTHER STATES MAY ALSO PERMANENTLY BRAND THE CERTIFICATE OF TITLE."	356

Sec. 4738.03.  (A) No person licensed as a motor vehicle	357
salvage dealer under this chapter shall engage in the business of	358
selling at retail salvage motor vehicle parts or salvage motor	359
vehicles, unless the business is operated primarily for the	360
purpose of selling at retail salvage motor vehicle parts. Any	361
person operating such a business primarily for the purpose of	362
selling at retail salvage motor vehicle parts may secondarily sell	363
at retail salvage motor vehicles or manufacture a product of	364
gradable scrap metal for sale to scrap metal processors or any	365
other consumer.	366

(B) No person licensed as a salvage motor vehicle auction	367
under this chapter shall:	368

(1) Make a casual sale ofKnowingly sell a salvage motor	369
vehicle to anyone other than an authorized purchaser;	370

(2) Sell a salvage motor vehicle when having reasonable cause	371
to believe it is not offered by the legal owner thereof;	372

(3) Sell a salvage motor vehicle to any person except a	373
person licensed as a motor vehicle salvage dealer under this	374
chapter;	375

(4)(3) Fail to make an Ohio salvage certificate of title	376
available to the purchaser of a salvage motor vehicle sold by the	377
salvage motor vehicle auction, before payment for the salvage	378
motor vehicle is completed;	379

(5)(4) Operate as a motor vehicle salvage dealer at the same	380
location where any salvage motor vehicle auction is operated.	381

(C) No person licensed as a salvage motor vehicle pool under	382
this chapter shall:	383

(1) Make a casual sale ofKnowingly sell a salvage motor	384
vehicle to anyone other than an authorized purchaser;	385

(2) Sell a salvage motor vehicle when having reasonable cause	386
to believe it is not offered by the legal owner thereof;	387

(3) Sell a salvage motor vehicle to any person except a	388
person licensed as a motor vehicle salvage dealer under this	389
chapter;	390

(4)(3) Fail to make an Ohio salvage certificate of title	391
available to the purchaser of a salvage motor vehicle sold by the	392
salvage motor vehicle pool, before payment for the salvage motor	393
vehicle is completed;	394

(5)(4) Operate as a motor vehicle salvage dealer at the same	395
location where any salvage motor vehicle pool is operated.	396

Sec. 4738.031. No person who is not an authorized purchaser	397
shall purchase a salvage motor vehicle from a salvage motor	398
vehicle auction or salvage motor vehicle pool.	399

Sec. 4738.17. (A) No person who is not licensed as a salvage	400
motor vehicle auction or salvage motor vehicle pool shall engage	401
in the business of selling salvage motor vehicle parts or salvage	402
motor vehicles at wholesale. Any	403

(B)(1) Any person licensed as a salvage motor vehicle dealer	404
under this chapter may sell salvage motor vehicle parts or salvage	405
motor vehicles at wholesale.	406

(2) Notwithstanding division (A) of this section, a person	407
may sell salvage motor vehicles at wholesale to or through a	408
salvage motor vehicle auction or salvage motor vehicle pool	409
without obtaining any license pursuant to this chapter if both of	410
the following apply:	411

(a) The acquisition of salvage motor vehicles is incidental	412
to the primary business of the person.	413

(b) The disposal of those salvage motor vehicles is	414
incidental to the primary business of the person.	415

Sec. 4738.99.  (A) Whoever violates section 4738.02 or	416
4738.03 of the Revised Code is guilty of a misdemeanor of the	417
second degree on a first offense; on each subsequent offense, such	418
person is guilty of a misdemeanor of the first degree.	419

(B) Whoever violates section 4738.01, sections 4738.04 to	420
4738.13, or division (B) of section 4738.16 of the Revised Code is	421
guilty of a misdemeanor of the fourth degree.	422

(C) Whoever violates section 4738.031, 4738.14, or 4738.15 of	423
the Revised Code is guilty of a minor misdemeanor.	424

Section 2. That existing sections 505.871, 4501.25, 4505.061,	425
4738.01, 4738.02, 4738.03, 4738.17, and 4738.99 and section	426
4738.18 of the Revised Code are hereby repealed.	427