California Legislature—2015–16 Regular Session

Assembly Bill No. 2571

Introduced by Assembly Member Jones-Sawyer

February 19, 2016

An act to amend Section 11515 of the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 2571, as introduced, Jones-Sawyer. Total loss salvage vehicles.

Existing law requires, if the owner of a total loss salvage vehicle retains possession of the vehicle, the insurance company to notify the Department of Motor Vehicles of the retention, as specified. Existing law requires the owner, within 10 days from the settlement of loss, to forward to the department the properly endorsed certificate of ownership or other evidence of ownership acceptable to the department, the license plates, and a specified fee. Upon receipt of these items, existing law requires the department to issue a salvage certificate for the vehicle. Prior to the sale or disposal of a total loss salvage vehicle, existing law requires the owner, the owner’s agent, or salvage pool to obtain a properly endorsed salvage certificate and deliver the certificate to the purchaser within 10 days after payment in full for the salvage vehicle, as specified. A violation of these provisions is punishable as a misdemeanor.

This bill would make technical, nonsubstantive changes to this provision.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 11515 of the Vehicle Code is amended
to read:

11515.  

(a) (1)  begin delete Whenever end delete begin insert If end insert an insurance company makes a
total loss settlement on a total loss salvage vehicle, the insurance
company, an occupational licensee of the department authorized
by the insurance company, or a salvage pool authorized by the
insurance company, within 10 days from the settlement of the loss,
shall forward the properly endorsed certificate of ownership or
other evidence of ownership acceptable to the department, the
license plates, and a fee in the amount of fifteen dollars ($15), to
the department. An occupational licensee of the department may
submit a certificate of license plate destruction in lieu of the actual
license plate.

(2) If an insurance company, an occupational licensee of the
department authorized by the insurance company, or a salvage
pool authorized by the insurance company is unable to obtain the
properly endorsed certificate of ownership or other evidence of
ownership acceptable to the department within 30 days following
oral or written acceptance by the owner of an offer of an amount
in settlement of a total loss, that insurance company, licensee, or
salvage pool, on a form provided by the department and signed
under penalty of perjury, may request the department to issue a
salvage certificate for the vehicle. The request shall include and
document that the requester has made at least two written attempts
to obtain the certificate of ownership or other acceptable evidence
of title, and shall include the license plates and fee described in
paragraph (1).

(3) The department, upon receipt of the certificate of ownership,
other evidence of title, or properly executed request described in
paragraph (2), the license plates, and the fee, shall issue a salvage
certificate for the vehicle.

(b)  begin delete Whenever end delete begin insert If end insert the owner of a total loss salvage vehicle retains
possession of the vehicle, the insurance company shall notify the
department of the retention on a form prescribed by the department.
The insurance company shall also notify the insured or owner of
the insured’s or owner’s responsibility to comply with this
subdivision. The owner shall, within 10 days from the settlement
of the loss, forward the properly endorsed certificate of ownership
or other evidence of ownership acceptable to the department, the
license plates, and a fee in the amount of fifteen dollars ($15) to
the department. The department, upon receipt of the certificate of
ownership or other evidence of title, the license plates, and the fee,
shall issue a salvage certificate for the vehicle.

(c)  begin delete Whenever end delete begin insert If end insert a total loss salvage vehicle is not the subject of
an insurance settlement, the owner shall, within 10 days from the
loss, forward the properly endorsed certificate of ownership or
other evidence of ownership acceptable to the department, the
license plates, and a fee in the amount of fifteen dollars ($15) to
the department.

(d)  begin delete Whenever end delete begin insert If end insert a total loss salvage vehicle is not the subject
of an insurance settlement, a self-insurer, as defined in Section
16052, shall, within 10 days from the loss, forward the properly
endorsed certificate of ownership or other evidence of ownership
acceptable to the department, the license plates, and a fee in the
amount of fifteen dollars ($15) to the department.

(e) Prior to the sale or disposal of a total loss salvage vehicle,
the owner, owner’s agent, or salvage pool, shall obtain a properly
endorsed salvage certificate and deliver begin delete it end delete begin insert the certificate end insert to the
purchaser within 10 days after payment in full for the salvage
vehicle and shall also comply with Section 5900. The department
shall accept the endorsed salvage certificate in lieu of the certificate
of ownership or other evidence of ownership when accompanied
by an application and other documents and fees, including, but not
limited to, the fees required by Section 9265, as may be required
by the department.

(f) This section does not apply to a vehicle that has been driven
or taken without the consent of the owner thereof, until the vehicle
has been recovered by the owner and only if the vehicle is a total
loss salvage vehicle.

(g) A violation of subdivision (a), (b), (d), or (e) is a
misdemeanor, pursuant to Section 40000.11. Notwithstanding
Section 40000.11, a violation of subdivision (c) is an infraction,
except that, if committed with the intent to defraud, a violation of
subdivision (c) is a misdemeanor.

(h) (1) A salvage certificate issued pursuant to this section shall
include a statement that the seller and subsequent sellers that
transfer ownership of a total loss vehicle pursuant to a properly
endorsed salvage certificate are required to disclose to the purchaser
at, or prior to, the time of sale that the vehicle has been declared
a total loss salvage vehicle.

(2) Effective on and after the department includes in the salvage
certificate form the statement described in paragraph (1), a seller
who fails to make the disclosure described in paragraph (1) shall
be subject to a civil penalty of not more than five hundred dollars
($500).

(3) Nothing in this subdivision affects any other civil remedy
provided by law, including, but not limited to, punitive damages.