Be it enacted by the General Assembly of Virginia:

1.  That § 46.2-624 of the Code of Virginia is amended and reenacted as follows:

§ 46.2-624. Information required on transfer of titles of taxicabs or vehicles damaged by water.

A. Unless there is attached to the certificate of title of the vehicle a statement signed by the owner to the effect that the vehicle has been used as a taxicab or has been damaged by water, it shall be unlawful for any person knowingly to sell, transfer, or otherwise dispose of any motor vehicle that:

1. Has has been used as a taxicab, or

2. Has been damaged by water to such an extent that the insurance company insuring it has paid a claim of $1,000 or more because of this water damage or has determined the motor vehicle to be a total loss.

B. Violation of subsection A of this section shall constitute a Class 1 misdemeanor.

C. When a vehicle has been damaged by water to such an extent that the insurance company insuring it has paid a claim of $3,500 or more because of this water damage, the insurance company shall report the payment of such claim to the Department.

D. On receipt of a certificate of title to which the information required in subsection A of this section is attached or upon receipt of information from an insurance company pursuant to subsection C, the Commissioner shall, on issuing a new certificate of title, place an appropriate indicator upon such certificate in order to convey that information to the new owner of the motor vehicle.