07 LC 34
1120S/AP
House
Bill 183 (AS PASSED HOUSE AND SENATE)
By:
Representatives Benton of the
31st
and Powell of the
29th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 3 of Title 40 of the Official Code of Georgia Annotated, relating
to motor vehicle certificates of title, security interests, and liens, so as to
change certain provisions relating to definitions; to change certain provisions
relating to salvaged or rebuilt motor vehicles, inspections, and fees; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
3 of Title 40 of the Official Code of Georgia Annotated, relating to
certificates of title, security interests, and liens, is amended by revising
Code Section 40-3-2, relating to definitions, as follows:
"40-3-2.
As
used in this chapter, the term:
(1)
'Boat trailer' means any vehicle without motive power designed for carrying
boats, either partially or wholly on its own structure, which is being drawn by
a self-propelled vehicle and operated over the public roads of this
state.
(2)
'Commissioner' means the state revenue commissioner.
(2.1)
'Department' means the Department of Revenue.
(3)
'Dealer' means a 'dealer' as defined in Code Section 40-1-1, to whom current
dealer registration plates have been issued by the commissioner.
(3.1)
'Department' means the Department of Revenue.
(4)
'Homemade trailer' means a vehicle without motive power, designed for carrying
persons or property either partially or wholly on its own structure and for
being drawn by a self-propelled vehicle other than a self-propelled vehicle
running exclusively on tracks, which trailer has been manufactured and
constructed from component parts for personal use and not for the purpose of
commercial resale.
(5)
'Identifying number' means the numbers and letters, if any, on a vehicle
designated by the commissioner for the purpose of identifying the
vehicle.
(6)
'Lien' means any lien created by operation of law and not by contract or
agreement with respect to a vehicle and includes all liens mentioned in Code
Section 44-14-320, other than that in paragraph (5) thereof, and all liens for
taxes due the United States of America, constructive notice of which is given by
filing notice thereof in the office designated by state law.
(7)
'Lienholder' means a person holding a lien created by operation of law on a
motor vehicle.
(8)
To 'mail' means to deposit in the United States mail properly addressed and with
postage paid.
(9)
'Major component part' means any one of the following subassemblies of a motor
vehicle:
(A)
Front clip assembly (fenders, hood, and bumper);
(B)
Rear clip assembly (quarter panels, floor panel assembly, and roof assembly,
excluding a soft top);
(C)
Engine and transmission;
(D)
Frame; or
(E)
Complete side (fenders, door, and quarter panel).
(9.1)
'Natural person' means an individual human being and does not include any firm,
partnership, association, corporation, or trust.
(10)
'Rebuilt motor vehicle' means any motor vehicle which has been damaged and
subsequently restored to an operable condition by the replacement of two or more
major component parts.
(11)
'Salvage motor vehicle' means any motor vehicle:
(A)
Which has been damaged to the extent that its restoration to an operable
condition would require the replacement of two or more major component
parts;
(B)
For which an insurance company has paid a total loss claim and the vehicle has
not been repaired, regardless of the extent of damage to such vehicle or the
number of major component parts required to repair such vehicle, but shall not
mean or include any stolen motor vehicle which has been recovered with the
public manufacturer´s vehicle identification number plate intact and the
vehicle:
(i)
Is undamaged;
(ii)
Has only cosmetic damage; or
(iii)
Has been damaged but only to the extent that its restoration to an operable
condition will not require the replacement of two or more major component
parts;
(C)
Which is an imported motor vehicle which has been damaged in shipment and
disclaimed by the manufacturer as a result of the damage, has never been the
subject of a retail sale to a consumer, and has never been issued a certificate
of title.
The
term salvage motor vehicle shall not include any motor vehicle for which a total
loss claim has been paid which vehicle has sustained only cosmetic damage from
causes other than fire or flood.
(11.1)
'Salvaged-repaired motor vehicle' means any motor vehicle which has been damaged
and subsequently restored to an operable condition by the replacement of less
than two major component parts.
(12)
'Security agreement' means a written agreement which reserves or creates a
security interest.
(13)
'Security interest' means an interest in a vehicle reserved or created by
agreement which secures the payment or performance of an obligation, such as a
conditional sales contract, chattel mortgage, bill of sale to secure debt, deed
of trust, and the like. This term includes the interest of a lessor under a
lease intended as security.
(14)
'Security interest holder' means the holder of an interest in a vehicle reserved
or created by agreement and which secures payment or performance of an
obligation."
SECTION
2.
Said
chapter is further amended by revising subsections (d) and (e) of Code Section
40-3-36, relating to cancellation of certificate of title for scrap, dismantled,
or demolished vehicles, salvage certificate of title, administrative
enforcement, and removal of license plates, as follows:
"(d)
Any certificate of title which is issued to a salvage motor vehicle, as provided
for in this Code section, shall contain the word 'salvage' on the face of the
certificate in such a manner as the commissioner may prescribe, so as to
indicate clearly that the motor vehicle described is a salvage motor vehicle.
The legend
'salvaged-repaired'
'rebuilt' in
no larger than 12 point font shall be
placed on a certificate of title to a vehicle which was declared a salvage
vehicle and subsequently repaired with less than two major component parts to
restore the vehicle to an operable condition.
(e)
Notwithstanding this subsection and subsections (c) and (d) of Code Section
40-3-37, the legend 'rebuilt'
or
'salvage' or 'salvaged-repaired' shall
only be required to be placed on the certificate of title to a vehicle which was
declared a salvage vehicle on or after July 1, 2004, and which was subsequently
rebuilt."
SECTION
3.
Said
chapter is further amended by revising subsection (d) of Code Section 40-3-37,
relating to salvaged or rebuilt motor vehicles, inspections, fees, exemption of
motorcycles, and glider kits, as follows:
"(d)(1)(A)
Upon inspection under subsection (b) of this Code section, if it is determined
that the motor vehicle has been restored to an operable condition by the
replacement of two or more major component parts, a certificate of title may be
issued for such motor vehicle which shall contain the word 'rebuilt' on its face
in such
manner as the commissioner shall prescribe
no larger than
12 point font. This requirement will
indicate to all subsequent owners of the motor vehicle that such is a rebuilt
motor vehicle. If any such inspection determines that the motor vehicle shall
require the replacement of less than two major component parts in order to
restore the motor vehicle to an operable condition, a certificate of title shall
be issued for such motor vehicle which shall contain the
words
'salvaged-repaired'
word
'rebuilt' on its face in such manner as
the commissioner shall prescribe. This requirement will indicate to all
subsequent owners of the motor vehicle that such is a
salvaged-repaired
rebuilt
motor vehicle.
(B)
If it is determined that the motor vehicle required or shall require the
replacement of two or more major component parts in order to restore the motor
vehicle to an operable condition, the
person,
firm, or corporation restoring or owning such motor
vehicle
department
shall cause the word 'rebuilt' to be
permanently
affixed to said motor vehicle
after
at the time
of inspection by the commissioner. The
word 'rebuilt' shall be affixed in a clear and conspicuous manner to the door
post or such other location as the commissioner may prescribe. The word
'rebuilt' shall be stamped on
the motor
vehicle or shall be stamped on a metal plate which shall be riveted to the motor
vehicle or
a certificate
and shall be
permanently
affixed to the motor vehicle in such manner as the commissioner may prescribe.
The requirement of this subparagraph shall only apply to motor vehicles restored
after November 1, 1982.
(2)
Upon inspection by the commissioner and compliance with paragraph (2) of
subsection (b) of this Code section, if it is determined that the motor vehicle
does not require the replacement of two or more major components or has not had
two or more major components changed, a certificate of title shall be issued and
shall contain the
words
'salvaged-repaired'
word
'rebuilt' on its face.
(3)
If, after the initial inspection, the commissioner determines that the damage is
so extensive that returning such vehicle to a safe, operable condition is
impossible, the salvage certificate shall be revoked and such vehicle may only
be used for scrap or parts. A vehicle for which such a determination is made
shall not be issued a title under any circumstances or conditions including but
not limited to obtaining of a surety bond."
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.