HOUSE BILL 46

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Nathan P. Cote

AN ACT

RELATING TO MOTOR VEHICLES; PROVIDING FOR REPAIRED SALVAGE VEHICLES TO RECEIVE A TITLE THAT IS NOT SALVAGE-BRANDED; REQUIRING THE MOTOR VEHICLE DIVISION OF THE TAXATION AND REVENUE DEPARTMENT TO ISSUE RULES ESTABLISHING CRITERIA FOR A SALVAGE VEHICLE TO BE CONSIDERED ROADWORTHY AND SAFE TO OPERATE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 66-3-10.1 NMSA 1978 (being Laws 2005, Chapter 324, Section 8) is amended to read:

     "66-3-10.1. SALVAGE VEHICLES--NONREPAIRABLE VEHICLES--CERTIFICATE OF TITLE--TRANSFER OF OWNERSHIP.--

          A. Subject to the provisions of Subsection B of this section, it is unlawful for a person to sell or otherwise convey ownership of a salvage or nonrepairable vehicle unless the certificate of title or ownership is branded or a comparable title, certificate or ownership document has been issued by another state or jurisdiction.

          B. The division shall issue a rule that establishes criteria for the division or its designee to make a determination that a salvage vehicle has been repaired to a roadworthy condition necessary for safe operation on highways. Pursuant to that rule, the owner of a salvage vehicle that meets those criteria may apply for, and the division shall issue, a certificate of title to that vehicle that is not branded. Subsequent transfers of ownership of that vehicle shall be by title that is not branded unless the vehicle again becomes a salvage vehicle.

          [B.] C. An owner of a nonrepairable vehicle shall sell or otherwise convey that vehicle only to a licensed wrecker of vehicles or a person licensed by a jurisdiction outside of this state to process vehicles by dismantling, wrecking, shredding, crushing or selling motor vehicle parts or scrap material or otherwise disposing of motor vehicles.

          [C.] D. A nonrepairable vehicle shall not be repaired, reconstructed or restored for operation on the roads or highways of this state.

          [D.] E. This section does not apply to:

                (1) a person whose motor vehicle has been stolen or taken without that person's consent unless, if the motor vehicle is recovered, it is a salvage or nonrepairable vehicle; or

                (2) a person conveying ownership of a motor vehicle to an insurance company as a result of a total loss insurance settlement. For the purpose of this paragraph, "total loss insurance settlement" means the transfer of ownership of a motor vehicle by a person to an insurance company as a result of a settlement in which the motor vehicle is determined to be salvage or nonrepairable."

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