Senate Bill sb2698
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Florida Senate - 2004 SB 2698
By Senator Atwater
25-1650-04 See HB
1 A bill to be entitled
2 An act relating to motor vehicles; providing a
3 popular name; amending s. 319.14, F.S.;
4 defining "insurance recovery vehicle" and
5 "salvage recovery vehicle"; providing
6 prohibitions on the sale of such vehicles;
7 providing penalties; amending s. 319.23, F.S.;
8 requiring affidavit with application for title
9 of used motor vehicles not previously issued
10 certificate of title; providing penalties for
11 violation or falsification; amending s. 319.30,
12 F.S.; revising provisions for issuance to
13 insurer of certificate of destruction and
14 certificate of title upon total loss of
15 vehicle; requiring the Department of Highway
16 Safety and Motor Vehicles to create a program
17 to promote and enhance public awareness of
18 risks to consumers associated with buying used
19 motor vehicles previously titled in other
20 states; providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. This act shall be known by the popular name
25 the "Auto Fraud Prevention Act of 2004."
26 Section 2. Section 319.14, Florida Statutes, is
27 amended to read:
28 319.14 Sale of motor vehicles registered or used as
29 taxicabs, police vehicles, insurance recovery vehicles,
30 salvage recovery vehicles, lease vehicles, or rebuilt vehicles
31 and nonconforming vehicles.--
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Florida Senate - 2004 SB 2698
25-1650-04 See HB
1 (1)(a) No person shall knowingly offer for sale, sell,
2 or exchange any vehicle that has been licensed, registered, or
3 used as a taxicab, police vehicle, insurance recovery vehicle,
4 salvage recovery vehicle, or short-term-lease vehicle, or a
5 vehicle that has been repurchased by a manufacturer pursuant
6 to a settlement, determination, or decision under chapter 681,
7 until the department has stamped in a conspicuous place on the
8 certificate of title of the vehicle, or its duplicate, words
9 stating the nature of the previous use or ownership of the
10 vehicle or the title has been stamped "Manufacturer's Buy
11 Back" to reflect that the vehicle is a nonconforming vehicle.
12 If the certificate of title or duplicate was not so stamped
13 upon initial issuance thereof or if, subsequent to initial
14 issuance of the title, the use of the vehicle is changed to a
15 use requiring the notation provided for in this section, the
16 owner or lienholder of the vehicle shall surrender the
17 certificate of title or duplicate to the department prior to
18 offering the vehicle for sale, and the department shall stamp
19 the certificate or duplicate as required herein. When a
20 vehicle has been repurchased by a manufacturer pursuant to a
21 settlement, determination, or decision under chapter 681, the
22 title shall be stamped "Manufacturer's Buy Back" to reflect
23 that the vehicle is a nonconforming vehicle.
24 (b) No person shall knowingly offer for sale, sell, or
25 exchange a rebuilt vehicle until the department has stamped in
26 a conspicuous place on the certificate of title for the
27 vehicle words stating that the vehicle has been rebuilt or
28 assembled from parts, or is a kit car, glider kit, replica, or
29 flood vehicle unless proper application for a certificate of
30 title for a vehicle that is rebuilt or assembled from parts,
31 or is a kit car, glider kit, replica, or flood vehicle has
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Florida Senate - 2004 SB 2698
25-1650-04 See HB
1 been made to the department in accordance with this chapter
2 and the department has conducted the physical examination of
3 the vehicle to assure the identity of the vehicle and all
4 major component parts, as defined in s. 319.30(1)(e), which
5 have been repaired or replaced. Thereafter, the department
6 shall affix a decal to the vehicle, in the manner prescribed
7 by the department, showing the vehicle to be rebuilt.
8 (c) As used in this section:
9 1.4. "Assembled from parts" means a motor vehicle or
10 mobile home assembled from parts or combined from parts of
11 motor vehicles or mobile homes, new or used. "Assembled from
12 parts" does not mean a motor vehicle defined as a "rebuilt
13 vehicle" in subparagraph 9. 3., which has been declared a
14 total loss pursuant to s. 319.30.
15 2.8. "Flood vehicle" means a motor vehicle or mobile
16 home that has been declared to be a total loss pursuant to s.
17 319.30(3)(a) resulting from damage caused by water.
18 3.6. "Glider kit" means a vehicle assembled with a kit
19 supplied by a manufacturer to rebuild a wrecked or outdated
20 truck or truck tractor.
21 4. "Insurance recovery vehicle" means a motor vehicle
22 for which the out-of-state documentation used to obtain
23 Florida title indicates that the owner is an insurance company
24 or contains a reassignment to or from an insurance company.
25 5. "Kit car" means a motor vehicle assembled with a
26 kit supplied by a manufacturer to rebuild a wrecked or
27 outdated motor vehicle with a new body kit.
28 6.a. c. "Lease vehicle" includes both short-term-lease
29 vehicles and long-term-lease vehicles.
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Florida Senate - 2004 SB 2698
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1 b. "Long-term-lease vehicle" means a motor vehicle
2 leased without a driver and under a written agreement to one
3 person for a period of 12 months or longer.
4 c.2.a. "Short-term-lease vehicle" means a motor
5 vehicle leased without a driver and under a written agreement
6 to one or more persons from time to time for a period of less
7 than 12 months.
8 7.9. "Nonconforming vehicle" means a motor vehicle
9 which has been purchased by a manufacturer pursuant to a
10 settlement, determination, or decision under chapter 681.
11 8.1. "Police vehicle" means a motor vehicle owned or
12 leased by the state or a county or municipality and used in
13 law enforcement.
14 9.3. "Rebuilt vehicle" means a motor vehicle or mobile
15 home built from salvage or junk, as defined in s. 319.30(1).
16 10.7. "Replica" means a complete new motor vehicle
17 manufactured to look like an old vehicle.
18 11. "Salvage recovery vehicle" means a motor vehicle
19 for which the out-of-state documentation used to obtain
20 Florida title indicates that the owner is a salvage company or
21 contains a reassignment to or from a salvage auction.
22 12.10. "Settlement" means an agreement entered into
23 between a manufacturer and a consumer that occurs after a
24 dispute is submitted to a program, or an informal dispute
25 settlement procedure established by a manufacturer or is
26 approved for arbitration before the New Motor Vehicle
27 Arbitration Board as defined in s. 681.102.
28 (2) No person shall knowingly sell, exchange, or
29 transfer a vehicle referred to in subsection (1) without,
30 prior to consummating the sale, exchange, or transfer,
31 disclosing in writing to the purchaser, customer, or
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Florida Senate - 2004 SB 2698
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1 transferee the fact that the vehicle has previously been
2 titled, registered, or used as a taxicab, police vehicle,
3 insurance recovery vehicle, salvage recovery vehicle, or
4 short-term-lease vehicle or is a vehicle that is rebuilt or
5 assembled from parts, or is a kit car, glider kit, replica, or
6 flood vehicle, or is a nonconforming vehicle, as the case may
7 be.
8 (3) Any person who, with intent to offer for sale or
9 exchange any vehicle referred to in subsection (1), knowingly
10 or intentionally advertises, publishes, disseminates,
11 circulates, or places before the public in any communications
12 medium, whether directly or indirectly, any offer to sell or
13 exchange the vehicle shall clearly and precisely state in each
14 such offer that the vehicle has previously been titled,
15 registered, or used as a taxicab, police vehicle, insurance
16 recovery vehicle, salvage recovery vehicle, or
17 short-term-lease vehicle or that the vehicle or mobile home is
18 a vehicle that is rebuilt or assembled from parts, or is a kit
19 car, glider kit, replica, or flood vehicle, or a nonconforming
20 vehicle, as the case may be. Any person who violates this
21 subsection commits a misdemeanor of the second degree,
22 punishable as provided in s. 775.082 or s. 775.083.
23 (4) When a certificate of title, including a foreign
24 certificate, is branded to reflect a condition or prior use of
25 the titled vehicle, the brand must be noted on the
26 registration certificate of the vehicle and such brand shall
27 be carried forward on all subsequent certificates of title and
28 registration certificates issued for the life of the vehicle.
29 (5) Any person who knowingly sells, exchanges, or
30 offers to sell or exchange a motor vehicle or mobile home
31 contrary to the provisions of this section or any officer,
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Florida Senate - 2004 SB 2698
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1 agent, or employee of a person who knowingly authorizes,
2 directs, aids in, or consents to the sale, exchange, or offer
3 to sell or exchange a motor vehicle or mobile home contrary to
4 the provisions of this section commits a misdemeanor of the
5 second degree, punishable as provided in s. 775.082 or s.
6 775.083.
7 (6) Any person who removes a rebuilt decal from a
8 rebuilt vehicle with the intent to conceal the rebuilt status
9 of the vehicle commits a felony of the third degree,
10 punishable as provided in s. 775.082, s. 775.083, or s.
11 775.084.
12 (7) This section applies to a mobile home, travel
13 trailer, camping trailer, truck camper, or fifth-wheel
14 recreation trailer only when such mobile home or vehicle is a
15 rebuilt vehicle or is assembled from parts.
16 (8) No person shall be liable or accountable in any
17 civil action arising out of a violation of this section if the
18 designation of the previous use or condition of the motor
19 vehicle is not noted on the certificate of title and
20 registration certificate of the vehicle which was received by,
21 or delivered to, such person, unless such person has actively
22 concealed the prior use or condition of the vehicle from the
23 purchaser.
24 (9) Subsections (1), (2), and (3) do not apply to the
25 transfer of ownership of a motor vehicle after the motor
26 vehicle has ceased to be used as a lease vehicle and the
27 ownership has been transferred to an owner for private use or
28 to the transfer of ownership of a nonconforming vehicle with
29 36,000 or more miles on its odometer, or 34 months whichever
30 is later and the ownership has been transferred to an owner
31 for private use. Such owner, as shown on the title
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Florida Senate - 2004 SB 2698
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1 certificate, may request the department to issue a corrected
2 certificate of title that does not contain the statement of
3 the previous use of the vehicle as a lease vehicle or
4 condition as a nonconforming vehicle.
5 Section 3. Subsection (3) of section 319.23, Florida
6 Statutes, is amended to read:
7 319.23 Application for, and issuance of, certificate
8 of title.--
9 (3) If a certificate of title has not previously been
10 issued for a motor vehicle or mobile home in this state, the
11 application, unless otherwise provided for in this chapter,
12 shall be accompanied by a proper bill of sale or sworn
13 statement of ownership, or a duly certified copy thereof, or
14 by a certificate of title, bill of sale, or other evidence of
15 ownership required by the law of the state or county from
16 which the motor vehicle or mobile home was brought into this
17 state. The application shall also be accompanied by:
18 (a)1. A sworn affidavit from the seller and purchaser
19 verifying that the vehicle identification number shown on the
20 affidavit is identical to the vehicle identification number
21 shown on the motor vehicle; or
22 2. An appropriate departmental form evidencing that a
23 physical examination has been made of the motor vehicle by the
24 owner and by a duly constituted law enforcement officer in any
25 state, a licensed motor vehicle dealer, a license inspector as
26 provided by s. 320.58, or a notary public commissioned by this
27 state and that the vehicle identification number shown on such
28 form is identical to the vehicle identification number shown
29 on the motor vehicle.; and
30 (b) If the vehicle is a used car original, a sworn
31 affidavit from the owner verifying that the odometer reading
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Florida Senate - 2004 SB 2698
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1 shown on the affidavit is identical to the odometer reading
2 shown on the motor vehicle in accordance with the requirements
3 of 49 C.F.R. s. 580.5 at the time that application for title
4 is made. For the purposes of this section, the term "used car
5 original" means a used vehicle coming into and being titled in
6 this state for the first time.
7 (c) If the vehicle is an ancient or antique vehicle,
8 as defined in s. 320.086, the application shall be accompanied
9 by a certificate of title; a bill of sale and a registration;
10 or a bill of sale and an affidavit by the owner defending the
11 title from all claims. The bill of sale must contain a
12 complete vehicle description to include the vehicle
13 identification or engine number, year make, color, selling
14 price, and signatures of the seller and purchaser.
15 (d) If a certificate of title has not been issued for
16 a used motor vehicle in this state, a sworn affidavit from the
17 owner that the motor vehicle has never been declared a total
18 loss and the motor vehicle was not purchased from a motor
19 vehicle salvage yard or insurance company. Willful and
20 deliberate violation of this paragraph or falsification of any
21 document to avoid the requirements of this paragraph is
22 punishable as provided in s. 319.33.
23
24 Verification of the vehicle identification number is not
25 required for any new motor vehicle; any mobile home; any
26 trailer or semitrailer with a net weight of less than 2,000
27 pounds; or any travel trailer, camping trailer, truck camper,
28 or fifth-wheel recreation trailer.
29 Section 4. Paragraph (b) of subsection (3) of section
30 319.30, Florida Statutes, is amended to read:
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Florida Senate - 2004 SB 2698
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1 319.30 Definitions; dismantling, destruction, change
2 of identity of motor vehicle or mobile home; salvage.--
3 (3)
4 (b) The owner, including persons who are self-insured,
5 of any motor vehicle or mobile home which is considered to be
6 salvage shall, within 72 hours after the motor vehicle or
7 mobile home becomes salvage, forward the title to the motor
8 vehicle or mobile home to the department for processing.
9 However, an insurance company which pays money as compensation
10 for total loss of a motor vehicle or mobile home shall obtain
11 the certificate of title for the motor vehicle or mobile home
12 and, within 72 hours after receiving such certificate of
13 title, shall forward such title to the department for
14 processing. The owner or insurance company, as the case may
15 be, may not dispose of a vehicle or mobile home that is a
16 total loss before it has obtained a salvage certificate of
17 title or certificate of destruction from the department. When
18 applying for a salvage certificate of title or certificate of
19 destruction, the owner or insurance company must provide the
20 department with an estimate of the costs of repairing the
21 physical and mechanical damage suffered by the vehicle for
22 which a salvage certificate of title or certificate of
23 destruction is sought. If the estimated costs of repairing the
24 physical and mechanical damage to the vehicle are equal to 80
25 percent or more of the current retail cost of the vehicle, as
26 established in any official used car or used mobile home
27 guide, the department shall declare the vehicle unrebuildable
28 and print a certificate of destruction, which authorizes the
29 dismantling or destruction of the motor vehicle or mobile home
30 described therein. This certificate of destruction shall be
31 reassignable a maximum of two times before dismantling or
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Florida Senate - 2004 SB 2698
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1 destruction of the vehicle shall be required, and shall
2 accompany the motor vehicle or mobile home for which it is
3 issued, when such motor vehicle or mobile home is sold for
4 such purposes, in lieu of a certificate of title, and,
5 thereafter, the department shall refuse issuance of any
6 certificate of title for that vehicle. An insurer paying a
7 total loss claim may obtain a certificate of destruction for
8 such a vehicle Nothing in this subsection shall be applicable
9 when a vehicle is worth less than $1,500 retail in undamaged
10 condition in any official used motor vehicle guide or used
11 mobile home guide or, when a stolen motor vehicle or mobile
12 home is recovered in substantially intact condition and is
13 readily resalable without extensive repairs to or replacement
14 of the frame or engine, the insurer shall obtain a certificate
15 of title in its own name before the vehicle may be sold or
16 transferred. Any person who willfully and deliberately
17 violates this paragraph or falsifies any document to avoid the
18 requirements of this paragraph commits a misdemeanor of the
19 first degree, punishable as provided in s. 775.082 or s.
20 775.083.
21 Section 5. The Department of Highway Safety and Motor
22 Vehicles shall create a program to promote and enhance public
23 awareness of risks to consumers associated with buying used
24 motor vehicles previously titled in other states, including
25 risks associated with purchases of motor vehicles via the
26 Internet. The program shall also promote and enhance public
27 awareness of laws that are designed to protect used motor
28 vehicle consumers and any changes to those laws.
29 Section 6. This act shall take effect upon becoming a
30 law.
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