Bill Text: HB 0847

HB 0847

2004

A bill to be entitled

An act relating to motor vehicles; providing a popular

name; amending s. 319.14, F.S.; defining "insurance

recovery vehicle" and "salvage recovery vehicle";

providing prohibitions on the sale of such vehicles;

providing penalties; amending s. 319.23, F.S.; requiring

affidavit with application for title of used motor

vehicles not previously issued certificate of title;

providing penalties for violation or falsification;

amending s. 319.30, F.S.; revising provisions for issuance

to insurer of certificate of destruction and certificate

of title upon total loss of vehicle; requiring the

Department of Highway Safety and Motor Vehicles to create

a program to promote and enhance public awareness of risks

to consumers associated with buying used motor vehicles

previously titled in other states; providing an effective

date.

Be It Enacted by the Legislature of the State of Florida:

Section 1. This act shall be known by the popular name the

"Auto Fraud Prevention Act of 2004."

Section 2. Section 319.14, Florida Statutes, is amended to

read:

319.14 Sale of motor vehicles registered or used as

taxicabs, police vehicles, insurance recovery vehicles, salvage

recovery vehicles,lease vehicles, or rebuilt vehicles and

nonconforming vehicles.--

(1)(a) No person shall knowingly offer for sale, sell, or

exchange any vehicle that has been licensed, registered, or used

as a taxicab, police vehicle, insurance recovery vehicle,

salvage recovery vehicle,or short-term-lease vehicle, or a

vehicle that has been repurchased by a manufacturer pursuant to

a settlement, determination, or decision under chapter 681,

until the department has stamped in a conspicuous place on the

certificate of title of the vehicle, or its duplicate, words

stating the nature of the previous use or ownershipof the

vehicle or the title has been stamped "Manufacturer's Buy Back"

to reflect that the vehicle is a nonconforming vehicle. If the

certificate of title or duplicate was not so stamped upon

initial issuance thereof or if, subsequent to initial issuance

of the title, the use of the vehicle is changed to a use

requiring the notation provided for in this section, the owner

or lienholder of the vehicle shall surrender the certificate of

title or duplicate to the department prior to offering the

vehicle for sale, and the department shall stamp the certificate

or duplicate as required herein. When a vehicle has been

repurchased by a manufacturer pursuant to a settlement,

determination, or decision under chapter 681, the title shall be

stamped "Manufacturer's Buy Back" to reflect that the vehicle is

a nonconforming vehicle.

(b) No person shall knowingly offer for sale, sell, or

exchange a rebuilt vehicle until the department has stamped in a

conspicuous place on the certificate of title for the vehicle

words stating that the vehicle has been rebuilt or assembled

from parts, or is a kit car, glider kit, replica, or flood

vehicle unless proper application for a certificate of title for

a vehicle that is rebuilt or assembled from parts, or is a kit

car, glider kit, replica, or flood vehicle has been made to the

department in accordance with this chapter and the department

has conducted the physical examination of the vehicle to assure

the identity of the vehicle and all major component parts, as

defined in s. 319.30(1)(e), which have been repaired or

replaced. Thereafter, the department shall affix a decal to the

vehicle, in the manner prescribed by the department, showing the

vehicle to be rebuilt.

1.4."Assembled from parts" means a motor vehicle or

mobile home assembled from parts or combined from parts of motor

vehicles or mobile homes, new or used. "Assembled from parts"

does not mean a motor vehicle defined as a "rebuilt vehicle" in

subparagraph 9. 3., which has been declared a total loss

pursuant to s. 319.30.

2.8."Flood vehicle" means a motor vehicle or mobile home

that has been declared to be a total loss pursuant to s.

319.30(3)(a) resulting from damage caused by water.

3.6."Glider kit" means a vehicle assembled with a kit

supplied by a manufacturer to rebuild a wrecked or outdated

truck or truck tractor.

4. "Insurance recovery vehicle" means a motor vehicle for

which the out-of-state documentation used to obtain Florida

title indicates that the owner is an insurance company or

contains a reassignment to or from an insurance company.

5. "Kit car" means a motor vehicle assembled with a kit

supplied by a manufacturer to rebuild a wrecked or outdated

motor vehicle with a new body kit.

6.a. c."Lease vehicle" includes both short-term-lease

vehicles and long-term-lease vehicles.

b. "Long-term-lease vehicle" means a motor vehicle leased

without a driver and under a written agreement to one person for

a period of 12 months or longer.

c.~~2.a.~~"Short-term-lease vehicle" means a motor vehicle

leased without a driver and under a written agreement to one or

more persons from time to time for a period of less than 12

months.

7.9."Nonconforming vehicle" means a motor vehicle which

has been purchased by a manufacturer pursuant to a settlement,

determination, or decision under chapter 681.

8.1."Police vehicle" means a motor vehicle owned or

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leased by the state or a county or municipality and used in law

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enforcement.

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9.3."Rebuilt vehicle" means a motor vehicle or mobile

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home built from salvage or junk, as defined in s. 319.30(1).

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10.7."Replica" means a complete new motor vehicle

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manufactured to look like an old vehicle.

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11. "Salvage recovery vehicle" means a motor vehicle for

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which the out-of-state documentation used to obtain Florida

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title indicates that the owner is a salvage company or contains

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a reassignment to or from a salvage auction.

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12.~~10.~~"Settlement" means an agreement entered into

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between a manufacturer and a consumer that occurs after a

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dispute is submitted to a program, or an informal dispute

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settlement procedure established by a manufacturer or is

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approved for arbitration before the New Motor Vehicle

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Arbitration Board as defined in s. 681.102.

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(2) No person shall knowingly sell, exchange, or transfer

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a vehicle referred to in subsection (1) without, prior to

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consummating the sale, exchange, or transfer, disclosing in

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writing to the purchaser, customer, or transferee the fact that

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the vehicle has previously been titled, registered, or used as a

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taxicab, police vehicle, insurance recovery vehicle, salvage

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recovery vehicle,or short-term-lease vehicle or is a vehicle

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that is rebuilt or assembled from parts, or is a kit car, glider

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kit, replica, or flood vehicle, or is a nonconforming vehicle,

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as the case may be.

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(3) Any person who, with intent to offer for sale or

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exchange any vehicle referred to in subsection (1), knowingly or

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intentionally advertises, publishes, disseminates, circulates,

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or places before the public in any communications medium,

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whether directly or indirectly, any offer to sell or exchange

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the vehicle shall clearly and precisely state in each such offer

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that the vehicle has previously been titled, registered, or used

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as a taxicab, police vehicle, insurance recovery vehicle,

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salvage recovery vehicle,or short-term-lease vehicle or that

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the vehicle or mobile home is a vehicle that is rebuilt or

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assembled from parts, or is a kit car, glider kit, replica, or

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flood vehicle, or a nonconforming vehicle, as the case may be.

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Any person who violates this subsection commits a misdemeanor of

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the second degree, punishable as provided in s. 775.082 or s.

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775.083.

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(4) When a certificate of title, including a foreign

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certificate, is branded to reflect a condition or prior use of

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the titled vehicle, the brand must be noted on the registration

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certificate of the vehicle and such brand shall be carried

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forward on all subsequent certificates of title and registration

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certificates issued for the life of the vehicle.

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(5) Any person who knowingly sells, exchanges, or offers

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to sell or exchange a motor vehicle or mobile home contrary to

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the provisions of this section or any officer, agent, or

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employee of a person who knowingly authorizes, directs, aids in,

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or consents to the sale, exchange, or offer to sell or exchange

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a motor vehicle or mobile home contrary to the provisions of

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this section commits a misdemeanor of the second degree,

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punishable as provided in s. 775.082 or s. 775.083.

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(6) Any person who removes a rebuilt decal from a rebuilt

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vehicle with the intent to conceal the rebuilt status of the

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vehicle commits a felony of the third degree, punishable as

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provided in s. 775.082, s. 775.083, or s. 775.084.

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(7) This section applies to a mobile home, travel trailer,

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camping trailer, truck camper, or fifth-wheel recreation trailer

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only when such mobile home or vehicle is a rebuilt vehicle or is

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assembled from parts.

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(8) No person shall be liable or accountable in any civil

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action arising out of a violation of this section if the

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designation of the previous use or condition of the motor

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vehicle is not noted on the certificate of title and

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registration certificate of the vehicle which was received by,

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or delivered to, such person, unless such person has actively

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concealed the prior use or condition of the vehicle from the

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purchaser.

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(9) Subsections (1), (2), and (3) do not apply to the

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transfer of ownership of a motor vehicle after the motor vehicle

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has ceased to be used as a lease vehicle and the ownership has

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been transferred to an owner for private use or to the transfer

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of ownership of a nonconforming vehicle with 36,000 or more

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miles on its odometer, or 34 months whichever is later and the

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ownership has been transferred to an owner for private use. Such

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owner, as shown on the title certificate, may request the

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department to issue a corrected certificate of title that does

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not contain the statement of the previous use of the vehicle as

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a lease vehicle or condition as a nonconforming vehicle.

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Section 3. Subsection (3) of section 319.23, Florida

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Statutes, is amended to read:

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319.23 Application for, and issuance of, certificate of

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title.--

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(3) If a certificate of title has not previously been

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issued for a motor vehicle or mobile home in this state, the

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application, unless otherwise provided for in this chapter,

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shall be accompanied by a proper bill of sale or sworn statement

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of ownership, or a duly certified copy thereof, or by a

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certificate of title, bill of sale, or other evidence of

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ownership required by the law of the state or county from which

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the motor vehicle or mobile home was brought into this state.

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The application shall also be accompanied by:

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(a)1. A sworn affidavit from the seller and purchaser

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verifying that the vehicle identification number shown on the

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affidavit is identical to the vehicle identification number

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shown on the motor vehicle; or

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2. An appropriate departmental form evidencing that a

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physical examination has been made of the motor vehicle by the

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owner and by a duly constituted law enforcement officer in any

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state, a licensed motor vehicle dealer, a license inspector as

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provided by s. 320.58, or a notary public commissioned by this

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state and that the vehicle identification number shown on such

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form is identical to the vehicle identification number shown on

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the motor vehicle.~~; and~~

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(b) If the vehicle is a used car original, a sworn

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affidavit from the owner verifying that the odometer reading

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shown on the affidavit is identical to the odometer reading

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shown on the motor vehicle in accordance with the requirements

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of 49 C.F.R. s. 580.5 at the time that application for title is

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made. For the purposes of this section, the term "used car

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original" means a used vehicle coming into and being titled in

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this state for the first time.

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defined in s. 320.086, ~~the application shall be accompanied by~~a

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certificate of title; a bill of sale and a registration; or a

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bill of sale and an affidavit by the owner defending the title

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from all claims. The bill of sale must contain a complete

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vehicle description to include the vehicle identification or

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engine number, year make, color, selling price, and signatures

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of the seller and purchaser.

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(d) If a certificate of title has not been issued for a

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used motor vehicle in this state, a sworn affidavit from the

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owner that the motor vehicle has never been declared a total

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loss and the motor vehicle was not purchased from a motor

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vehicle salvage yard or insurance company. Willful and

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deliberate violation of this paragraph or falsification of any

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document to avoid the requirements of this paragraph is

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punishable as provided in s. 319.33.

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Verification of the vehicle identification number is not

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required for any new motor vehicle; any mobile home; any trailer

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or semitrailer with a net weight of less than 2,000 pounds; or

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any travel trailer, camping trailer, truck camper, or fifth-

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wheel recreation trailer.

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Section 4. Paragraph (b) of subsection (3) of section

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319.30, Florida Statutes, is amended to read:

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319.30 Definitions; dismantling, destruction, change of

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identity of motor vehicle or mobile home; salvage.--

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(3)

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(b) The owner, including persons who are self-insured, of

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any motor vehicle or mobile home which is considered to be

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salvage shall, within 72 hours after the motor vehicle or mobile

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home becomes salvage, forward the title to the motor vehicle or

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mobile home to the department for processing. However, an

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insurance company which pays money as compensation for total

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loss of a motor vehicle or mobile home shall obtain the

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certificate of title for the motor vehicle or mobile home and,

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within 72 hours after receiving such certificate of title, shall

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forward such title to the department for processing. The owner

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or insurance company, as the case may be, may not dispose of a

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vehicle or mobile home that is a total loss before it has

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obtained a salvage certificate of title or certificate of

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destruction from the department. When applying for a salvage

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certificate of title or certificate of destruction, the owner or

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insurance company must provide the department with an estimate

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of the costs of repairing the physical and mechanical damage

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suffered by the vehicle for which a salvage certificate of title

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or certificate of destruction is sought. If the estimated costs

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of repairing the physical and mechanical damage to the vehicle

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are equal to 80 percent or more of the current retail cost of

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the vehicle, as established in any official used car or used

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mobile home guide, the department shall declare the vehicle

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unrebuildable and print a certificate of destruction, which

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authorizes the dismantling or destruction of the motor vehicle

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or mobile home described therein. This certificate of

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destruction shall be reassignable a maximum of two times before

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dismantling or destruction of the vehicle shall be required, and

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shall accompany the motor vehicle or mobile home for which it is

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issued, when such motor vehicle or mobile home is sold for such

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purposes, in lieu of a certificate of title, and, thereafter,

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the department shall refuse issuance of any certificate of title

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for that vehicle. An insurer paying a total loss claim may

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obtain a certificate of destruction for such a vehicle ~~Nothing~~

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~~in this subsection shall be applicable when a vehicle is worth~~

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~~less than $1,500 retail in undamaged condition in any official~~

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~~used motor vehicle guide or used mobile home guide~~ or,when a

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stolen motor vehicle or mobile home is recovered in

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substantially intact condition and is readily resalable without

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extensive repairs to or replacement of the frame or engine, the

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insurer shall obtain a certificate of title in its own name

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before the vehicle may be sold or transferred. Any person who

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willfully and deliberately violates this paragraph or falsifies

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any document to avoid the requirements of this paragraph commits

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a misdemeanor of the first degree, punishable as provided in s.

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775.082 or s. 775.083.

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Section 5. The Department of Highway Safety and Motor

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Vehicles shall create a program to promote and enhance public

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awareness of risks to consumers associated with buying used

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motor vehicles previously titled in other states, including

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risks associated with purchases of motor vehicles via the

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Internet. The program shall also promote and enhance public

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awareness of laws that are designed to protect used motor

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vehicle consumers and any changes to those laws.

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Section 6. This act shall take effect upon becoming a law.