SB 1064 — Nonrepairable vehicles; titling requirements, sale to certain auto recyclers.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2023 SESSION CHAPTER E365 An Act to amend and reenact §§ 46.2-1602.1, 46.2-1603.2, and 46.2-1608.2 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 46.2-1602.3, relating to titling requirements for nonrepairable vehicles;

sale to certain auto recyclers.relatingrecyclers. to titling R O [S 1064] L Approved L Be it enacted by the General Assembly of Virginia:

E[S 1.1064] Approved March 23, 2023 Be it enacted by the General Assembly of Virginia:

That1. §§ 46.2-1602.1, 46.2-1603.2, and 46.2-1608.2 of the Code of Virginia are amended and D follows:d and that the Code of Virginia is amended by adding a section numbered 46.2-1602.3 as § 46.2-1602.1.

That §§ 46.2-1602.1, 46.2-1603.2, and 46.2-1608.2 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding a section numbered 46.2-1602.3 as follows:

§ 46.2-1602.1.

Every Except as otherwise provided in § 46.2-1602.3, every insurance company which acquires, as a result of the claims process, any late model vehicle titled in the Commonwealth or any recovered stolen vehicle whose estimated cost of repair exceeds seventy-five 75 percent of its actual cash value shallshallen apply to and obtain from the Department either (i) a salvage certificate or certificate of title as provided in § 46.2-1603 or (ii) a nonrepairable certificate as provided in § 46.2-1603.2 for each such vBhicle.vehicle.

An insurance company may apply to and obtain from the Department either a salvage certificate as p0ovidedprovided determinedin to§ be46.2-1603 eitheror a salvagenonrepairable vehiclecertificate oras aprovided nonrepairablein vehicle.603.2§ 46.2-1603.2 for any other vehicl4vehicle which is §determined 46.2-1602.3.to be either a salvage vehicle or a nonrepairable vehicle.

§ 46.2-1602.3.

R A.

Notwithstanding any provision of this chapter to the contrary, an insurance company, or authorized agent of an insurance company, may obtain a nonrepairable certificate for a vehicle titled in the Commonwealth and acquired by the insurance company through the claims process without first obtaining a certificate of title or a salvage certificate, provided that the insurance company or authorized agent of the insurance company electronically files the following with the Department in a man1.manner prescribed by the Commissioner;

1.

satisfiedb. as a result of the claims process and released by the lien holder;

andAny lien recorded on this title at the time the insurance company acquired the vehicle has been c.satisfied as a result of the claims process and released by the lien holder;

and c.

purchaserC. of the vehicle with the nonrepairable certificate and a bill of sale for each vehicle processed through subsection A.

The insurance company, or authorized agent of the insurance company, shall provide the purchaser of the vehicle with the nonrepairable certificate and a bill of sale for each vehicle processed through subsection A.

titling andA.and registration of nonrepairable vehicle prohibited.

A.

The application shall of 3 be accompanied by the vehicle's title certificate or salvage certificate.

Every insurance company or its authorized agent shall apply to the Department and obtain a of 3 nonrepairable certificate for each vehicle acquired by the insurance company as a result of the claims process if such vehicle is titled in the Commonwealth and is (i) a late model nonrepairable vehicle or (ii) a stolen vehicle that has been recovered and determined to be a nonrepairable vehicle.

Upon receipt of such notification, the Department shall check the records of nationally of 3 recognized databases.

If aElicenseda licensed auto recycler is not in possession of the certificate of title, salvage certificate, or nonrepairable certificate and the subject motor vehicle is of the current model year or of a model year that is nine years old or less,ateless, and that vehicle shall be processed in accordance with § 46.2-1202.

R of §§3 46.2-1603.1,E. 46.2-1608, and 46.2-1608.1.licensed auto recycler from complying with the provisions O L L E D B E R

Nothing in this section shall release a licensed auto recycler from complying with the provisions of §§ 46.2-1603.1, 46.2-1608, and 46.2-1608.1.