HB 0847CS

CHAMBER ACTION



1The Committee on Transportation recommends the following:
2
3     Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to motor vehicles; providing a popular
7name; amending s. 319.14, F.S.; defining "insurance
8recovery vehicle," "salvage recovery vehicle," and
9"salvage company"; providing prohibitions on the sale of
10insurance recovery and salvage recovery vehicles;
11providing penalties; providing exceptions; amending s.
12319.23, F.S.; requiring affidavit with application for
13title of used motor vehicles not previously issued
14certificate of title; providing penalties for violation or
15falsification; amending s. 319.30, F.S.; revising the
16definition of "total loss"; revising provisions for
17issuance to insurer of certificate of destruction and
18certificate of title upon total loss of vehicle; requiring
19the Department of Highway Safety and Motor Vehicles to
20create a program to promote and enhance public awareness
21of risks to consumers associated with buying used motor
22vehicles previously titled in other states; providing an
23effective date.
24
25Be It Enacted by the Legislature of the State of Florida:
26
27     Section 1.  This act shall be known by the popular name the
28"Auto Fraud Prevention Act of 2004."
29     Section 2.  Section 319.14, Florida Statutes, is amended to
30read:
31     319.14  Sale of motor vehicles registered or used as
32taxicabs, police vehicles, insurance recovery vehicles, salvage
33recovery vehicles, lease vehicles, or rebuilt vehicles and
34nonconforming vehicles.--
35     (1)(a)  No person shall knowingly offer for sale, sell, or
36exchange any vehicle that has been licensed, registered, or used
37as a taxicab, police vehicle, insurance recovery vehicle,
38salvage recovery vehicle, or short-term-lease vehicle, or a
39vehicle that has been repurchased by a manufacturer pursuant to
40a settlement, determination, or decision under chapter 681,
41until the department has stamped in a conspicuous place on the
42certificate of title of the vehicle, or its duplicate, words
43stating the nature of the previous use or ownership of the
44vehicle or the title has been stamped "Manufacturer's Buy Back"
45to reflect that the vehicle is a nonconforming vehicle. If the
46certificate of title or duplicate was not so stamped upon
47initial issuance thereof or if, subsequent to initial issuance
48of the title, the use of the vehicle is changed to a use
49requiring the notation provided for in this section, the owner
50or lienholder of the vehicle shall surrender the certificate of
51title or duplicate to the department prior to offering the
52vehicle for sale, and the department shall stamp the certificate
53or duplicate as required herein. When a vehicle has been
54repurchased by a manufacturer pursuant to a settlement,
55determination, or decision under chapter 681, the title shall be
56stamped "Manufacturer's Buy Back" to reflect that the vehicle is
57a nonconforming vehicle.
58     (b)  No person shall knowingly offer for sale, sell, or
59exchange a rebuilt vehicle until the department has stamped in a
60conspicuous place on the certificate of title for the vehicle
61words stating that the vehicle has been rebuilt or assembled
62from parts, or is a kit car, glider kit, replica, or flood
63vehicle unless proper application for a certificate of title for
64a vehicle that is rebuilt or assembled from parts, or is a kit
65car, glider kit, replica, or flood vehicle has been made to the
66department in accordance with this chapter and the department
67has conducted the physical examination of the vehicle to assure
68the identity of the vehicle and all major component parts, as
69defined in s. 319.30(1)(e), which have been repaired or
70replaced. Thereafter, the department shall affix a decal to the
71vehicle, in the manner prescribed by the department, showing the
72vehicle to be rebuilt.
73     (c)  As used in this section:
74     1.4.  "Assembled from parts" means a motor vehicle or
75mobile home assembled from parts or combined from parts of motor
76vehicles or mobile homes, new or used. "Assembled from parts"
77does not mean a motor vehicle defined as a "rebuilt vehicle" in
78subparagraph 9. 3., which has been declared a total loss
79pursuant to s. 319.30.
80     2.8.  "Flood vehicle" means a motor vehicle or mobile home
81that has been declared to be a total loss pursuant to s.
82319.30(3)(a) resulting from damage caused by water.
83     3.6.  "Glider kit" means a vehicle assembled with a kit
84supplied by a manufacturer to rebuild a wrecked or outdated
85truck or truck tractor.
86     4.  "Insurance recovery vehicle" means a motor vehicle for
87which the out-of-state documentation used to obtain Florida
88title indicates that the owner is an insurance company or
89contains a reassignment to or from an insurance company, except
90for a stolen motor vehicle that is recovered in substantially
91intact condition and is readily resalable without extensive
92repairs to or replacement of the frame or engine.
93     5.  "Kit car" means a motor vehicle assembled with a kit
94supplied by a manufacturer to rebuild a wrecked or outdated
95motor vehicle with a new body kit.
96     6.a.c.  "Lease vehicle" includes both short-term-lease
97vehicles and long-term-lease vehicles.
98     b.  "Long-term-lease vehicle" means a motor vehicle leased
99without a driver and under a written agreement to one person for
100a period of 12 months or longer.
101     c.2.a.  "Short-term-lease vehicle" means a motor vehicle
102leased without a driver and under a written agreement to one or
103more persons from time to time for a period of less than 12
104months.
105     7.9.  "Nonconforming vehicle" means a motor vehicle which
106has been purchased by a manufacturer pursuant to a settlement,
107determination, or decision under chapter 681.
108     8.1.  "Police vehicle" means a motor vehicle owned or
109leased by the state or a county or municipality and used in law
110enforcement.
111     9.3.  "Rebuilt vehicle" means a motor vehicle or mobile
112home built from salvage or junk, as defined in s. 319.30(1).
113     10.7.  "Replica" means a complete new motor vehicle
114manufactured to look like an old vehicle.
115     11.  "Salvage recovery vehicle" means a motor vehicle for
116which the out-of-state documentation used to obtain Florida
117title indicates that the owner is a salvage company or contains
118a reassignment to or from a salvage company.
119     12.  "Salvage company" means a person not licensed in this
120state who would otherwise be required to be licensed as a
121salvage motor vehicle dealer if operating in this state.
122     13.10.  "Settlement" means an agreement entered into
123between a manufacturer and a consumer that occurs after a
124dispute is submitted to a program, or an informal dispute
125settlement procedure established by a manufacturer or is
126approved for arbitration before the New Motor Vehicle
127Arbitration Board as defined in s. 681.102.
128     (2)  No person shall knowingly sell, exchange, or transfer
129a vehicle referred to in subsection (1) without, prior to
130consummating the sale, exchange, or transfer, disclosing in
131writing to the purchaser, customer, or transferee the fact that
132the vehicle has previously been titled, registered, or used as a
133taxicab, police vehicle, insurance recovery vehicle, salvage
134recovery vehicle, or short-term-lease vehicle or is a vehicle
135that is rebuilt or assembled from parts, or is a kit car, glider
136kit, replica, or flood vehicle, or is a nonconforming vehicle,
137as the case may be.
138     (3)  Any person who, with intent to offer for sale or
139exchange any vehicle referred to in subsection (1), knowingly or
140intentionally advertises, publishes, disseminates, circulates,
141or places before the public in any communications medium,
142whether directly or indirectly, any offer to sell or exchange
143the vehicle shall clearly and precisely state in each such offer
144that the vehicle has previously been titled, registered, or used
145as a taxicab, police vehicle, insurance recovery vehicle,
146salvage recovery vehicle, or short-term-lease vehicle or that
147the vehicle or mobile home is a vehicle that is rebuilt or
148assembled from parts, or is a kit car, glider kit, replica, or
149flood vehicle, or a nonconforming vehicle, as the case may be.
150Any person who violates this subsection commits a misdemeanor of
151the second degree, punishable as provided in s. 775.082 or s.
152775.083.
153     (4)  When a certificate of title, including a foreign
154certificate, is branded to reflect a condition or prior use of
155the titled vehicle, the brand must be noted on the registration
156certificate of the vehicle and such brand shall be carried
157forward on all subsequent certificates of title and registration
158certificates issued for the life of the vehicle.
159     (5)  Any person who knowingly sells, exchanges, or offers
160to sell or exchange a motor vehicle or mobile home contrary to
161the provisions of this section or any officer, agent, or
162employee of a person who knowingly authorizes, directs, aids in,
163or consents to the sale, exchange, or offer to sell or exchange
164a motor vehicle or mobile home contrary to the provisions of
165this section commits a misdemeanor of the second degree,
166punishable as provided in s. 775.082 or s. 775.083.
167     (6)  Any person who removes a rebuilt decal from a rebuilt
168vehicle with the intent to conceal the rebuilt status of the
169vehicle commits a felony of the third degree, punishable as
170provided in s. 775.082, s. 775.083, or s. 775.084.
171     (7)  This section applies to a mobile home, travel trailer,
172camping trailer, truck camper, or fifth-wheel recreation trailer
173only when such mobile home or vehicle is a rebuilt vehicle or is
174assembled from parts.
175     (8)  No person shall be liable or accountable in any civil
176action arising out of a violation of this section if the
177designation of the previous use or condition of the motor
178vehicle is not noted on the certificate of title and
179registration certificate of the vehicle which was received by,
180or delivered to, such person, unless such person has actively
181concealed the prior use or condition of the vehicle from the
182purchaser.
183     (9)  Subsections (1), (2), and (3) do not apply to the
184transfer of ownership of a motor vehicle after the motor vehicle
185has ceased to be used as a lease vehicle and the ownership has
186been transferred to an owner for private use or to the transfer
187of ownership of a nonconforming vehicle with 36,000 or more
188miles on its odometer, or 34 months whichever is later and the
189ownership has been transferred to an owner for private use. Such
190owner, as shown on the title certificate, may request the
191department to issue a corrected certificate of title that does
192not contain the statement of the previous use of the vehicle as
193a lease vehicle or condition as a nonconforming vehicle.
194     (10)  Subsections (1), (2), and (3) do not apply to
195reassignment transactions on motor vehicles that have been
196reassigned to companies in another state that would otherwise be
197licensed as motor vehicle auctions in this state when such
198reassignment is required by the laws or rules of the other
199state.
200     Section 3.  Subsection (3) of section 319.23, Florida
201Statutes, is amended to read:
202     319.23  Application for, and issuance of, certificate of
203title.--
204     (3)  If a certificate of title has not previously been
205issued for a motor vehicle or mobile home in this state, the
206application, unless otherwise provided for in this chapter,
207shall be accompanied by a proper bill of sale or sworn statement
208of ownership, or a duly certified copy thereof, or by a
209certificate of title, bill of sale, or other evidence of
210ownership required by the law of the state or county from which
211the motor vehicle or mobile home was brought into this state.
212The application shall also be accompanied by:
213     (a)1.  A sworn affidavit from the seller and purchaser
214verifying that the vehicle identification number shown on the
215affidavit is identical to the vehicle identification number
216shown on the motor vehicle; or
217     2.  An appropriate departmental form evidencing that a
218physical examination has been made of the motor vehicle by the
219owner and by a duly constituted law enforcement officer in any
220state, a licensed motor vehicle dealer, a license inspector as
221provided by s. 320.58, or a notary public commissioned by this
222state and that the vehicle identification number shown on such
223form is identical to the vehicle identification number shown on
224the motor vehicle.; and
225     (b)  If the vehicle is a used car original, a sworn
226affidavit from the owner verifying that the odometer reading
227shown on the affidavit is identical to the odometer reading
228shown on the motor vehicle in accordance with the requirements
229of 49 C.F.R. s. 580.5 at the time that application for title is
230made. For the purposes of this section, the term "used car
231original" means a used vehicle coming into and being titled in
232this state for the first time.
233     (c)  If the vehicle is an ancient or antique vehicle, as
234defined in s. 320.086, the application shall be accompanied by a
235certificate of title; a bill of sale and a registration; or a
236bill of sale and an affidavit by the owner defending the title
237from all claims. The bill of sale must contain a complete
238vehicle description to include the vehicle identification or
239engine number, year make, color, selling price, and signatures
240of the seller and purchaser.
241     (d)  If a certificate of title has not been issued for a
242used motor vehicle in this state, a sworn affidavit from the
243owner that the motor vehicle has never been declared a total
244loss and the motor vehicle was not purchased from a motor
245vehicle salvage yard or insurance company. Willful and
246deliberate violation of this paragraph or falsification of any
247document to avoid the requirements of this paragraph is
248punishable as provided in s. 319.33.
249
250Verification of the vehicle identification number is not
251required for any new motor vehicle; any mobile home; any trailer
252or semitrailer with a net weight of less than 2,000 pounds; or
253any travel trailer, camping trailer, truck camper, or fifth-
254wheel recreation trailer.
255     Section 4.  Subsection (3) of section 319.30, Florida
256Statutes, is amended to read:
257     319.30  Definitions; dismantling, destruction, change of
258identity of motor vehicle or mobile home; salvage.--
259     (3)(a)1.  As used in this section, a motor vehicle or
260mobile home is a "total loss":
261     a.  When an insurance company pays the vehicle owner to
262replace the wrecked or damaged vehicle with one of like kind and
263quality or when an insurance company pays the owner upon the
264theft of the motor vehicle or mobile home; or
265     b.  When an uninsured motor vehicle or mobile home is
266wrecked or damaged and the cost, at the time of loss, of
267repairing or rebuilding the vehicle is 80 percent or more of the
268cost to the owner of replacing the wrecked or damaged motor
269vehicle or mobile home with one of like kind and quality, except
270when a vehicle is worth less than $1,500 retail in undamaged
271condition in any official used motor vehicle guide or used
272mobile home guide.
273     2.  A motor vehicle or mobile home shall not be considered
274a "total loss" if the insurance company and owner of a motor
275vehicle or mobile home agree to repair, rather than to replace,
276the motor vehicle or mobile home. However, if the actual cost to
277repair the motor vehicle or mobile home to the insurance company
278exceeds 100 percent of the cost of replacing the wrecked or
279damaged motor vehicle or mobile home with one of like kind and
280quality, the owner shall forward to the department, within 72
281hours after the agreement, a request to brand the certificate of
282title with the words "Total Loss Vehicle." Such a brand shall
283become a part of the vehicle's title history.
284     (b)  The owner, including persons who are self-insured, of
285any motor vehicle or mobile home which is considered to be
286salvage shall, within 72 hours after the motor vehicle or mobile
287home becomes salvage, forward the title to the motor vehicle or
288mobile home to the department for processing. However, an
289insurance company which pays money as compensation for total
290loss of a motor vehicle or mobile home shall obtain the
291certificate of title for the motor vehicle or mobile home and,
292within 72 hours after receiving such certificate of title, shall
293forward such title to the department for processing. The owner
294or insurance company, as the case may be, may not dispose of a
295vehicle or mobile home that is a total loss before it has
296obtained a salvage certificate of title or certificate of
297destruction from the department. When applying for a salvage
298certificate of title or certificate of destruction, the owner or
299insurance company must provide the department with an estimate
300of the costs of repairing the physical and mechanical damage
301suffered by the vehicle for which a salvage certificate of title
302or certificate of destruction is sought. If the estimated costs
303of repairing the physical and mechanical damage to the vehicle
304are equal to 80 percent or more of the current retail cost of
305the vehicle and the vehicle is worth at least $1,500 in
306undamaged condition, as established in any official used car or
307used mobile home guide, the department shall declare the vehicle
308unrebuildable and print a certificate of destruction, which
309authorizes the dismantling or destruction of the motor vehicle
310or mobile home described therein. This certificate of
311destruction shall be reassignable a maximum of two times before
312dismantling or destruction of the vehicle shall be required, and
313shall accompany the motor vehicle or mobile home for which it is
314issued, when such motor vehicle or mobile home is sold for such
315purposes, in lieu of a certificate of title, and, thereafter,
316the department shall refuse issuance of any certificate of title
317for that vehicle. An insurer paying a total loss claim may
318obtain a certificate of destruction for such a vehicle; Nothing
319in this subsection shall be applicable when a vehicle is worth
320less than $1,500 retail in undamaged condition in any official
321used motor vehicle guide or used mobile home guide or, when a
322stolen motor vehicle or mobile home is recovered in
323substantially intact condition and is readily resalable without
324extensive repairs to or replacement of the frame or engine, the
325insurer shall obtain a certificate of title in its own name
326before the vehicle may be sold or transferred. Any person who
327willfully and deliberately violates this paragraph or falsifies
328any document to avoid the requirements of this paragraph commits
329a misdemeanor of the first degree, punishable as provided in s.
330775.082 or s. 775.083.
331     Section 5.  The Department of Highway Safety and Motor
332Vehicles shall create a program to promote and enhance public
333awareness of risks to consumers associated with buying used
334motor vehicles previously titled in other states, including
335risks associated with purchases of motor vehicles via the
336Internet. The program shall also promote and enhance public
337awareness of laws that are designed to protect used motor
338vehicle consumers and any changes to those laws.
339     Section 6.  This act shall take effect upon becoming a law.


CODING: Words stricken are deletions; words underlined are additions.