AB325_EN

Assembly Bill No. 325–Assemblymen Buckley, Conklin, Koivisto, Parks, Leslie, Anderson, Arberry, Atkinson, Claborn, Collins, Giunchigliani, Grady, Horne, Mabey, Manendo, McClain, Perkins, Pierce, Sherer, Weber and Williams

CHAPTER..........

AN ACT relating to motor vehicles; requiring certain replacement and repairs if an airbag or seatbelt assembly in a vehicle has sustained certain damages; imposing certain restrictions and requirements upon the transfer and titling of vehicles that have sustained certain damages; requiring certain notices and disclosures regarding such vehicles; imposing civil liability and providing criminal penalties for certain violations relating thereto; revising certain provisions governing the registration or licensure of garagemen and body shops; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 482.098 is hereby amended to read as follows:

482.098 “Rebuilt vehicle” means a vehicle[,] :

1. That is a salvage vehicle as that term is defined in section 9

of this act, excluding a nonrepairable vehicle; or

2. A vehicle one or more major components of which have

been replaced as set forth in this subsection. For the purposes of this

[section,] subsection, the requisite major components of a vehicle

which must be replaced for a vehicle to be considered rebuilt are

the:

[1.] (a) Cowl assembly;

[2.](b) Rear clip assembly;

[3.] (c) Roof;

[4.] (d) Floor pan assembly; or

[5.] (e) Conventional frame coupled with one additional major

component.

Sec. 1.5. NRS 482.470 is hereby amended to read as follows:

482.470 1. If any vehicle is dismantled, junked or rendered

inoperative and unfit for further use in accordance with the original

purpose for which it was constructed, the owner shall deliver to the

Department any certificate of registration and certificate of

ownership issued by the Department or any other jurisdiction, unless

the certificate of ownership is required for the collection of any

insurance or other indemnity for the loss of the vehicle, or for

transfer in order to dispose of the vehicle.

2. Any other person taking possession of a vehicle described in

subsection 1 shall immediately deliver to the Department any

license plate or plates, certificate of registration or certificate of

ownership issued by the Department or any other jurisdiction, if he

has acquired possession of any of these and unless the certificate of

ownership is required for a further transfer in the ultimate

disposition of the vehicle.

3. The Department may issue a salvage title as provided in

chapter 487 of NRS. [The Department shall not charge a fee for the

issuance of the salvage title.]

4. The Department shall destroy any plate or plates [,

certificate of registration or certificate of ownership that is] that are

returned in a manner described in subsections 1 and 2. [The

Department shall not issue a certificate of registration or certificate

of ownership for a vehicle with the same identification number as

the dismantled, junked or inoperative vehicle if the vehicle was

manufactured in the 5 years preceding the date on which it was

dismantled, junked or otherwise rendered inoperative, unless the

Department authorizes the restoration of the vehicle pursuant to

subsection 2 of NRS 482.553.]

Sec. 2. Chapter 487 of NRS is hereby amended by adding

thereto the provisions set forth as sections 2.5 to 19, inclusive, of

this act.

Sec. 2.5. 1. Except as otherwise provided in subsection 3, if

a salvage vehicle is repaired or rebuilt by a garageman or operator

of a body shop, the repairs or rebuilding must comply with the

standards published and commonly applied in the motor vehicle

repair industry.

2. Except as otherwise provided in subsection 3, if any safety

equipment that was present in a motor vehicle at the time it was

manufactured is repaired or replaced by a garageman or operator

of a body shop, the equipment must be repaired or replaced to the

standards published and commonly applied in the motor vehicle

repair industry.

3. If a motor vehicle has been in an accident and a

garageman or operator of a body shop accepts or assumes control

of the motor vehicle to make any repair, the garageman or

operator shall:

(a) For a motor vehicle that is equipped with an airbag that

has been deployed, replace the airbag in a manner that complies

with the standards set forth in 49 C.F.R. § 571.208, Standard No.

208, for such equipment.

(b) For a motor vehicle that is equipped with a seatbelt

assembly which requires repair or replacement, repair or replace

the seatbelt assembly in a manner that complies with the standards

set forth in 49 C.F.R. § 571.209, Standard No. 209, for such

equipment.

4. A garageman or operator of a bodyshop who is licensed

pursuant to the provisions of chapter 487 of NRS who performs

the work required pursuant to this section shall retain a written

record of the work, including, without limitation, the date of the

repair, rebuilding or replacement, and any identifying information

regarding any parts or equipment used in the repair, rebuilding or

replacement.

Sec. 3. As used in NRS 487.045, 487.110, 487.120, 487.150

and 487.185 and sections 3 to 16, inclusive, of this act, the words

and terms defined in NRS 487.045 and sections 4 to 10, inclusive,

of this act have the meanings ascribed to them in those sections.

Sec. 4. “Cost of repair” means the cost to repair a vehicle,

which is established pursuant to section 15 of this act.

Sec. 5. “Fair market value” means the retail value of a

motor vehicle that is established by:

1. An objective motor vehicle appraisal based upon local

market resources, including, without limitation, automobile

dealers and classified advertisements of newspapers;

2. An independent appraisal service;

3. A current issue of a nationally recognized guide used by

financial institutions in this state for the valuation of used motor

vehicles; or

4. A computer-based service commonly used by the insurance

industry for the valuation of used motor vehicles.

Sec. 6. “Flood-damaged vehicle” means a motor vehicle

which:

1. Has been submerged in water to a point that the level of

the water is higher than the door sill of the vehicle and the water

has entered the passenger, trunk or engine compartment of the

vehicle and has come into contact with the electrical system of the

vehicle; or

2. Has been acquired by an insurance company or retained

by its owner or any other person as part of a total loss settlement

resulting from water damage.

Sec. 7. “Motor vehicle” has the meaning ascribed to it in

NRS 482.075.

Sec. 8. “Nonrepairable vehicle” means a motor vehicle other

than an abandoned vehicle, as defined in NRS 487.210, that:

1. Has value only as a source of parts or scrap metal;

2. Has been designated by its owner for dismantling as a

source of parts or scrap metal;

3. Has been stripped of all body panels, doors, hatches,

substantially all interior components and substantially all grill and

light assemblies; or

4. Has been burned, destroyed or otherwise damaged to such

an extent that it cannot be returned to a condition which is legal

for operation on the highways of this state.

Sec. 9. “Salvage vehicle” means a motor vehicle that at any

time has been declared a total loss vehicle, flood-damaged vehicle,

nonrepairable vehicle or had “salvage” or a similar word or

designation placed on any title issued for the vehicle.

Sec. 10. “Title” means a certificate of title or any other

document issued by any state or country indicating the ownership

of a motor vehicle.

Sec. 11. 1. Any person who transfers an interest in a motor

vehicle in this state shall, before the transfer, disclose in writing to

the transferee any information that the transferor knows or

reasonably should know concerning whether the vehicle is a

salvage vehicle.

2. If the transferor is subject to any of the provisions of NRS

482.423 to 482.4245, inclusive, the transferor shall:

(a) Make the disclosure required by subsection 1 before

executing a contract of sale or a long-term lease;

(b) Provide a copy of the disclosure to the transferee; and

specified in NRS 482.3263.

3. A person who violates subsection 1 is guilty of obtaining

property by false pretenses as provided in NRS 205.380.

Sec. 12. 1. A person shall not remove, cause to be removed

or conceal a marking on a salvage title or other title which

indicates that the vehicle is a salvage vehicle.

2. A person who knowingly violates subsection 1 with the

intent to defraud:

(a) If the fair market value of the vehicle involved is $250 or

more, is guilty of a category D felony and shall be punished as

provided in NRS 193.130.

(b) If the fair market value of the vehicle involved is less than

$250, is guilty of a misdemeanor.

In addition to any other penalty, the court shall order the person

to pay restitution to the victim.

Sec. 13. 1. A person who, with the intent to defraud,

violates any provision of section 11 or 12 of this act is liable to any

purchaser or lessee of a motor vehicle who is harmed by that

violation for:

(a) Three times the amount of actual damages sustained by the

purchaser or lessee;

(b) Five thousand dollars; or

such punitive damages as may be allowed by the court,

whichever is greater.

2. If an action brought pursuant to subsection 1 is successful,

the purchaser or lessee who brought the action is entitled to the

costs of bringing the action and reasonable attorney’s fees, as

determined by the court.

3. The remedy provided in this section is in addition to and is

not a substitute for any other legal or equitable remedy available

to a purchaser or lessee of a motor vehicle who is harmed by a

violation of section 11 or 12 of this act.

Sec. 14. A nonrepairable vehicle:

1. Must be processed as parts or scrap metal by a licensed

automobile wrecker, dismantler or recycler.

2. May not be rebuilt, reconstructed or restored for operation

on the highways of this state.

3. Must be issued a certificate by the state agency which

indicates that it is a nonrepairable vehicle before any ownership

interest in the vehicle may be transferred.

Sec. 15. An estimate of the cost of repair for a motor vehicle

pursuant to NRS 487.110:

1. Must be calculated using the cost of the parts and labor

required to restore the vehicle to the condition it was in

immediately before it was wrecked, destroyed or otherwise

damaged. The cost of parts and labor must be based on:

(a) The current published actual retail price of original

manufacturer equipment, retail price of new alternative equipment

or the actual cost of used parts.

(b) Rates for labor which are commonly charged in the

community in which the repairs will be performed.

2. May not include any cost associated with painting any

portion of the vehicle.

Sec. 16. 1. The state agency may issue a salvage title for a

vehicle, which contains a brief description of the vehicle,

including, insofar as data may exist with respect to the vehicle, the

make, type, serial number and motor number, or any other

number of the vehicle, upon application, to:

(a) The owner of the vehicle;

(b) The person to whom the vehicle is titled;

salvage vehicle pursuant to subsection 1 of NRS 487.110; or

(d) A lienholder who acquires title to the vehicle.

2. A properly endorsed title, together with a disclosure of

mileage, as required pursuant to the provisions of 49 U.S.C. §§

32701 et seq. and 49 C.F.R. § 580.5, must be submitted with the

application for salvage title.

3. Within 2 days after receiving all necessary documents, the

state agency shall issue a salvage title for the vehicle.

4. Except as otherwise provided in this subsection, the state

agency shall charge and collect a fee of $10 for the issuance of a

salvage title pursuant to this section. The state agency shall not

charge a fee for the issuance of a salvage title to an automobile

wrecker licensed in this state. Fees collected by the state agency

pursuant to this subsection must be deposited with the State

Treasurer for credit to the Account for Regulation of Salvage

Pools, Automobile Wreckers, Body Shops and Garages created by

NRS 487.450.

5. Ownership interest in a salvage vehicle may not be

transferred unless a salvage title has been issued by the state

agency for the vehicle.

6. Possession of a salvage title does not entitle a person to

dismantle, scrap, process or wreck any vehicle in this state unless

the person holds a license issued pursuant to NRS 487.050.

7. The Department shall not issue a salvage title for a

nonrepairable vehicle.

Sec. 17. 1. The Department may refuse to issue a

registration or, after notice and hearing, may suspend, revoke or

refuse to renew a registration to operate a garage upon any of the

following grounds:

(a) A false statement of a material fact in a certification for a

salvage vehicle required pursuant to NRS 487.110.

(b) A false statement or certification for an inspection

pursuant to NRS 487.110 which attests to the mechanical fitness

or safety of a salvage vehicle.

2. As used in this section, “salvage vehicle” has the meaning

ascribed to it in section 9 of this act.

Sec. 18. If the Director finds that the action is necessary in

the public interest, the Director may, upon notice to the

garageman, temporarily suspend or refuse to renew the certificate

of registration to operate a garage for not more than 30 days. The

Department shall conduct a hearing and issue a final decision on

the matter within 30 days after it sends notice to the garageman of

the temporary suspension.

Sec. 19. In any hearing conducted by the Department

concerning the registration of a garage, the Director may issue

subpoenas for the attendance of witnesses and the production of

evidence.

Sec. 20. NRS 487.045 is hereby amended to read as follows:

487.045 [As used in NRS 487.045 to 487.200, inclusive, “total]

“Total loss vehicle” means a motor vehicle:

1. Of a type which is subject to registration; and

2. Which has been wrecked, destroyed or otherwise damaged

to such an extent that the [owner, leasing company, financial

institution or the insurance company that insured the vehicle

considers it uneconomical to repair the vehicle; and

3. Because of that wreckage, destruction or other damage,

which is not repaired by or for the person who owned the vehicle at

the time of the event resulting in the damage.] cost of repair is 65

percent or more of the fair market value of the vehicle immediately

before it was wrecked, destroyed or otherwise damaged.

The term does not include a nonrepairable vehicle or other motor

vehicle which is 10 model years old or older and which requires

only the replacement of the hood, trunk lid, grill assembly or two

or fewer quarter panels, doors, bumper assemblies, headlight

assemblies, taillight assemblies, or any combination thereof, to

restore the vehicle to its condition before it was wrecked, destroyed

or otherwise damaged. For the purposes of this section, the model

year of manufacture is calculated based on a year beginning on

January 1 of the calendar year in which the damage occurs.

Sec. 21. NRS 487.060 is hereby amended to read as follows:

487.060 1. No license may be issued to an automobile

wrecker until he has procured and filed with the Department a good

and sufficient bond in the amount of $50,000, with a corporate

surety thereon licensed to do business in the State of Nevada,

approved as to form by the Attorney General, and conditioned that

the applicant conducts his business as a wrecker without fraud or

fraudulent representation, and without violation of the provisions of

NRS 487.045 [to 487.200, inclusive.] , 487.110, 487.120, 487.150

and 487.185 and sections 3 to 16, inclusive, of this act and NRS

487.050 to 487.100, inclusive, and 487.160, 487.170, 487.180,

487.190 and 487.200. The Department may, by agreement with any

automobile wrecker who has been licensed for 5 years or more by

the Department or a department of motor vehicles in another state,

reduce the amount of the bond of the wrecker, if the business of that

wrecker has been conducted satisfactorily for the preceding 5 years,

but no bond may be in an amount less than $5,000. The Department

shall make the necessary investigation to determine whether a

wrecker licensed in another state has conducted its business

satisfactorily.

2. The bond may be continuous in form and the total aggregate

liability on the bond must be limited to the payment of the total

amount of the bond.

3. The bond must provide that any person injured by the action

of the automobile wrecker in violation of any of the provisions of

NRS 487.045 [to 487.160, inclusive,] , 487.110, 487.120, 487.150

and 487.185 and sections 3 to 16, inclusive, of this act and NRS

487.050 to 487.100, inclusive, and 487.160, 487.170, 487.180,

487.190 and 487.200 may apply to the Director for compensation

from the bond. The Director, for good cause shown and after notice

and opportunity for hearing, may determine the amount of

compensation and the person to whom it is to be paid. The surety

shall then make the payment.

4. In lieu of a bond an automobile wrecker may deposit with

the Department, under the terms prescribed by the Department:

(a) A like amount of money or bonds of the United States or of

the State of Nevada of an actual market value of not less than the

amount fixed by the Department; or

(b) A savings certificate of a bank, credit union or savings and

loan association situated in Nevada, which must indicate an account

of an amount equal to the amount of the bond which would

otherwise be required by this section and that this amount is

unavailable for withdrawal except upon order of the Department.

Interest earned on the certificate accrues to the account of the

applicant.

5. A deposit made pursuant to subsection 4 may be disbursed

by the Director, for good cause shown and after notice and

opportunity for hearing, in an amount determined by him to

compensate a person injured by an action of the licensee, or released

upon receipt of:

(a) A court order requiring the Director to release all or a

specified portion of the deposit; or

(b) A statement signed by the person in whose name the deposit

is made and acknowledged before any person authorized to take

acknowledgments in this state, requesting the Director to release the

deposit, or a specified portion thereof, and stating the purpose for

which the release is requested.

6. When a deposit is made pursuant to subsection 4, liability

under the deposit is in the amount prescribed by the Department. If

the amount of the deposit is reduced or there is an outstanding

judgment for which the licensee is liable under the deposit, the

license is automatically suspended. The license must be reinstated if

the licensee:

(a) Files an additional bond pursuant to subsection 1;

(b) Restores the deposit with the Department to the original

amount required under this section; or

under the deposit.

7. A deposit made pursuant to subsection 4 may be refunded:

(a) By order of the Director, 3 years after the date the licensee

ceases to be licensed by the Department, if the Director is satisfied

that there are no outstanding claims against the deposit; or

(b) By order of court, at any time within 3 years after the date

the licensee ceases to be licensed by the Department, upon evidence

satisfactory to the court that there are no outstanding claims against

the deposit.

8. Any money received by the Department pursuant to

subsection 4 must be deposited with the State Treasurer for credit to

the Motor Vehicle Fund.

Sec. 22. NRS 487.100 is hereby amended to read as follows:

487.100 1. Except as otherwise provided in subsection 2, any

automobile wrecker purchasing from any person other than a

licensed operator of a salvage pool, any vehicle subject to

registration pursuant to the laws of this state shall forward to the

Department the certificates of ownership and registration last issued

therefor.

2. The certificate of ownership last issued for a mobile home or

commercial coach must be sent by the wrecker to the Manufactured

Housing Division[.

3. The state agency may issue to the licensee a salvage title

containing a brief description of the vehicle, including, insofar as

data may exist with respect to the vehicle, the make, type, serial

number and motor number, or any other number of the vehicle. The

state agency shall not charge a fee for the issuance of the salvage

title.] of the Department of Business and Industry.

Sec. 23. NRS 487.110 is hereby amended to read as follows:

487.110 1. Except [as otherwise provided in subsection 2,

whenever a vehicle subject to registration is sold as salvage:

(a) As] with respect to a nonrepairable vehicle, when an

insurance company acquires a motor vehicle as a result of a [total

loss insurance settlement, the] settlement in which the motor

vehicle is determined to be a salvage vehicle, the owner of the

motor vehicle who is relinquishing ownership of the motor vehicle

shall endorse the title of the motor vehicle and forward the

endorsed title to the insurance company. The insurance company

or its authorized agent shall forward the endorsed [ownership

certificate or other evidence of] title , together with an application

for salvage title to the state agency within 30 days after receipt

[thereof; or

(b) Because the owner determines that the vehicle is a total loss

vehicle, the owner] of the endorsed title.

2. Except as otherwise provided in subsection 1, before any

ownership interest in a salvage vehicle, except a nonrepairable

vehicle, may be transferred, the owner or other person to whom

the motor vehicle is titled:

(a) If the person has possession of the title to the vehicle, shall

forward the [ownership certificate or other evidence of] endorsed

title , together with an application for salvage title to the state

agency within [120] 30 days after the vehicle [is damaged.] becomes

a salvage vehicle.

(b) If the person does not have possession of the title to the

vehicle and the title is held by a lienholder, shall notify the

lienholder within 10 days after the vehicle becomes a salvage

vehicle that the vehicle has become a salvage vehicle. The

lienholder shall, within 30 days after receiving such notice,

forward the title, together with an application for salvage title, to

the state agency.

3. An insurance company or its authorized agent may sell a

vehicle for which a total loss settlement has been made with the

properly endorsed [ownership certificate or other evidence of] title if

the total loss settlement resulted from the theft of the vehicle and the

vehicle, when recovered, was not [damaged to the extent that it was

required to be rebuilt.] a salvage vehicle.

4. An owner who has determined that a vehicle is a total loss

salvage vehicle may sell the vehicle with the properly endorsed

[ownership certificate or other evidence of] title obtained pursuant

to this section, without making any repairs to the vehicle, to a

salvage pool, automobile auction, rebuilder, automobile wrecker or

a new or used motor vehicle dealer.

[3. Upon the sale of the salvage vehicle, the insurance

company, salvage pool, automobile auction, leasing company or

financial institution which sells the salvage vehicle shall issue a bill

of sale of salvage to the purchaser on a form to be prescribed and

supplied by the state agency. The state agency shall accept the bill

of sale of salvage in lieu of the ownership certificate or other

evidence of title when accompanied by an appropriate application or