Sub. S. B. No. 273 As Reported by the Senate Insurance, Commerce and Labor Committee

As Reported by the Senate Insurance, Commerce and Labor Committee

129th General Assembly

Regular Session

2011-2012

Sub. S. B. No. 273

Senator Faber

Cosponsors: Senators Daniels, Hite, Lehner, Manning, Eklund, Widener, Wagoner, Burke, Jones, Balderson, Tavares, Jordan, Brown, Skindell, Bacon

A BILL

To amend sections 505.871, 4501.25, 4505.061,

4505.11, 4738.01, 4738.02, 4738.03, 4738.17, and

4738.99, to enact sections 3937.19, 4505.103,

4738.021, 4738.022, 4738.023, and 4738.031, and to

repeal section 4738.18 of the Revised Code to

permit property owners to dispose of junk motor

vehicles to a motor vehicle salvage dealer or

scrap metal facility without a salvage certificate

of title, to permit a motor vehicle salvage dealer

or scrap metal processing facility to obtain a

salvage certificate of title to a junk motor

vehicle under certain circumstances, to permit

salvage motor vehicle auctions and pools to

auction and sell salvage motor vehicles to persons

other than motor vehicle salvage dealers, to

permit a person whose acquisition and disposal of

salvage motor vehicles is incidental to the

person's primary business to sell salvage motor

vehicles at retail to or through a salvage motor

vehicle auction or pool, to require salvage motor

vehicle auctions and pools to keep an electronic

record of all sales of salvage motor vehicles, and

to make other changes in the motor vehicle salvage

dealer law.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 505.871, 4501.25, 4505.061, 4505.11,	25
4738.01, 4738.02, 4738.03, 4738.17, and 4738.99 be amended and	26
sections 3937.19, 4505.103, 4738.021, 4738.022, 4738.023, and	27
4738.031 of the Revised Code be enacted to read as follows:	28

Sec. 505.871. (A) A board of township trustees may provide,	29
by resolution, for the removal of any vehicle in the	30
unincorporated territory of the township that the board determines	31
is a junk motor vehicle, as defined in section 505.173 of the	32
Revised Code.	33

(B) If a junk motor vehicle is located on public property,	34
the board of township trustees may provide in the resolution for	35
the immediate removal of the vehicle.	36

(C)(1) If a junk motor vehicle is located on private	37
property, the board of township trustees may provide in the	38
resolution for the removal of the vehicle not sooner than fourteen	39
days after the board serves written notice of its intention to	40
remove or cause the removal of the vehicle on the owner of the	41
land and any holders of liens of record on the land.	42

(2) The notice provided under this division shall generally	43
describe the vehicle to be removed and indicate all of the	44
following:	45

(a) The board has determined that the vehicle is a junk motor	46
vehicle.	47

(b) If the owner of the land fails to remove the vehicle	48
within fourteen days after service of the notice, the board may	49
remove or cause the removal of the vehicle.	50

(c) Any expenses the board incurs in removing or causing the	51
removal of the vehicle may be entered upon the tax duplicate and	52
become a lien upon the land from the date of entry.	53

(3) The board shall serve the notice under this division by	54
sending it by certified mail, return receipt requested, to the	55
owner of the land, if the owner resides in the unincorporated	56
territory of the township or if the owner resides outside the	57
unincorporated territory of the township and the owner's address	58
is known or ascertainable through an exercise of reasonable	59
diligence. The board also shall send notice in such manner to any	60
holders of liens of record on the land. If a notice sent by	61
certified mail is refused or unclaimed, or if an owner's address	62
is unknown and cannot reasonably be ascertained by an exercise of	63
reasonable diligence, the board shall publish the notice once in a	64
newspaper of general circulation in the township before the	65
removal of the vehicle, and, if the land contains any structures,	66
the board also shall post the notice on the principal structure on	67
the land.	68

A notice sent by certified mail shall be deemed to be served	69
for purposes of this section on the date it was received as	70
indicated by the date on a signed return receipt. A notice given	71
by publication shall be deemed to be served for purposes of this	72
section on the date of the newspaper publication.	73

(D) The board of township trustees may cause the removal or	74
may employ the labor, materials, and equipment necessary to remove	75
a junk motor vehicle under this section. All expenses incurred in	76
removing or causing the removal of a junk motor vehicle, when	77
approved by the board, shall be paid out of the township general	78
fund from moneys not otherwise appropriated, except that if the	79
expenses exceed five hundred dollars, the board may borrow moneys	80
from a financial institution to pay the expenses in whole or in	81
part.	82

(E) The board of township trustees may utilize any lawful	83
means to collect the expenses incurred in removing or causing the	84
removal of a junk motor vehicle under this section, including any	85
fees or interest paid to borrow moneys under division (D) of this	86
section. The board may direct the township fiscal officer to	87
certify the expenses and a description of the land to the county	88
auditor, who shall place the expenses upon the tax duplicate as a	89
lien upon the land to be collected as other taxes and returned to	90
the township general fund.	91

(F)(1) As used in this division:

(a) "Motor vehicle salvage dealer" has the same meaning as in	93
section 4738.01 of the Revised Code.	94

(b) "Scrap metal processing facility" has the same meaning as	95
in section 4737.05 of the Revised Code.	96

(2) Notwithstanding section 4513.63 of the Revised Code, the	97
clerk of courts of the county where a junk motor vehicle that is	98
removed and disposed of in accordance with this section shall	99
issue a salvage certificate of title for that junk motor vehicle	100
to a motor vehicle salvage dealer licensed pursuant to Chapter	101
4738. of the Revised Code or a scrap metal processing facility	102
licensed pursuant to sections 4737.05 to 4737.12 of the Revised	103
Code if all of the following conditions are satisfied:	104

(a) The board of township trustees has entered into a	105
contract with the motor vehicle salvage dealer or scrap metal	106
processing facility for the disposal or removal of the junk motor	107
vehicle in accordance with section 505.85 of the Revised Code.	108

(b) The fiscal officer for the board of township trustees	109
executes in triplicate an affidavit prescribed by the registrar of	110
motor vehicles describing the junk motor vehicle and the manner of	111
removal or disposal and certifying that all requirements of this	112
section and the notice and records search requirements of section	113
4505.101 of the Revised Code have been satisfied.	114

(c) The board of township trustees retains the original	115
affidavit for the board's records and furnishes the remaining two	116
copies of the affidavit to the motor vehicle salvage dealer or	117
scrap metal processing facility.	118

(d) The motor vehicle salvage dealer or scrap metal	119
processing facility presents one copy of the affidavit to the	120
clerk.	121

(3) The clerk shall issue the salvage certificate of title,	122
free and clear of all liens and encumbrances, not later than	123
thirty days after the motor vehicle salvage dealer or scrap metal	124
processing facility presents the affidavit pursuant to division	125
(F)(2) of this section.	126

(G) Notwithstanding section 4513.65 of the Revised Code, but	127
subject to division ~~(G)~~(H)(2) of this section, any collector's	128
vehicle that meets the definition of a junk motor vehicle is	129
subject to removal under this section.	130

~~(G)~~(H)(1) Nothing in this section affects the authority of a	131
board of township trustees to adopt and enforce resolutions under	132
section 505.173 of the Revised Code to regulate the storage of	133
junk motor vehicles on private or public property in the	134
unincorporated territory of the township.	135

(2) A resolution adopted under this section is subject to the	136
same restrictions specified in division (A) of section 505.173 of	137
the Revised Code for resolutions adopted under that section.	138

Sec. 3937.19. If a person purchases a motor vehicle in good	139
faith, if the purchaser is subsequently permanently divested of	140
the right of ownership or possession to that motor vehicle because	141
a court or other law enforcement entity has determined that the	142
certificate of title or vehicle identification number has been	143
falsified or otherwise tampered with or that the motor vehicle was	144
stolen, and if the purchaser has insurance coverage on the motor	145
vehicle that covers damage to or the loss of the motor vehicle,	146
the purchaser may submit a claim to the purchaser's insurance	147
company for the loss of the motor vehicle.	148

An insurance company that holds a current policy on a motor	149
vehicle that covers damage to or the loss of the vehicle for which	150
a claim is made under this division shall pay the claim in an	151
amount not less than the value of the motor vehicle at the time	152
the purchaser was divested of ownership or possession and not	153
greater than the amount for which the vehicle was insured.	154

Sec. 4501.25. There is hereby created in the state treasury	155
the state bureau of motor vehicles fund. The fund shall consist of	156
all money collected by the registrar of motor vehicles, including	157
taxes, fees, and fines levied, charged, or referred to in Chapters	158
4501., 4503., 4505., 4506., 4507., 4509., 4510., 4511., 4517.,	159
4519., and 4521., and sections ~~3123.59,~~ 2935.27, 2937.221,	160
3123.59, 4738.06, and 4738.13~~, and 4738.18~~ of the Revised Code	161
unless otherwise designated by law. The fund shall be used to pay	162
the expenses of administering the law relative to the powers and	163
duties of the registrar of motor vehicles. All investment earnings	164
of the fund shall be retained by the fund.	165

Sec. 4505.061. If the application for a certificate of title	166
refers to a motor vehicle last previously registered in another	167
state, the application shall be accompanied by a physical	168
inspection certificate issued by the department of public safety	169
verifying the make, body type, model, and manufacturer's vehicle	170
identification number of the motor vehicle for which the	171
certificate of title is desired. The physical inspection	172
certificate shall be in such form as is designated by the	173
registrar of motor vehicles. The physical inspection of the motor	174
vehicle shall be made at a deputy registrar's office, or at an	175
established place of business operated by a licensed motor vehicle	176
dealer. Additionally, the physical inspection of a salvage vehicle	177
owned by an insurance company may be made at an established place	178
of business operated by a ~~salvage~~ motor vehicle salvage dealer,	179
salvage motor vehicle auction, or salvage motor vehicle pool	180
licensed under Chapter 4738. of the Revised Code. The deputy	181
registrar, ~~the~~ motor vehicle dealer, ~~or the salvage~~ motor vehicle	182
salvage dealer, salvage motor vehicle auction, or salvage motor	183
vehicle pool may charge a maximum fee of ~~two dollars and~~	184
~~seventy-five cents commencing on July 1, 2001, three dollars and~~	185
~~twenty-five cents commencing on January 1, 2003, and~~ three dollars	186
and fifty cents ~~commencing on January 1, 2004,~~ for conducting the	187
physical inspection.	188

The clerk of the court of common pleas shall charge a fee of	189
one dollar and fifty cents for the processing of each physical	190
inspection certificate. The clerk shall retain fifty cents of the	191
one dollar and fifty cents so charged and shall pay the remaining	192
one dollar to the registrar by monthly returns, which shall be	193
forwarded to the registrar not later than the fifth day of the	194
month next succeeding that in which the certificate is received by	195
the clerk. The registrar shall pay such remaining sums into the	196
state bureau of motor vehicles fund established by section 4501.25	197
of the Revised Code.	198

Sec. 4505.103. (A) As used in this section:

199

(1) "Junk motor vehicle" means any motor vehicle meeting all	200
of the following requirements:	201

(a) Is three years old, or older;

202

(b) Is extensively damaged, such damage including any of the	203
following: missing wheels, tires, engine, motor, or transmission;	204

205

(d) Has a fair market value of one thousand five hundred	206
dollars or less.	207

(2) "Property owner" means the owner of private property or a	208
person with the right to possession of the private property.	209

(B) A property owner on whose property is located a junk	210
motor vehicle and for which vehicle a certificate of title has not	211
been issued in the name of the property owner may dispose of such	212
junk motor vehicle to a motor vehicle salvage dealer or scrap	213
metal processing facility solely for the purpose of destruction of	214
the junk motor vehicle by complying with this section.	215

(C)(1) In order to dispose of a junk motor vehicle under this	216
section, the property owner first shall conduct a search of the	217
records of the bureau of motor vehicles to determine the owner of	218
the junk motor vehicle and whether there are any outstanding liens	219
on the junk motor vehicle. The property owner shall send a notice	220
to the owner of the junk motor vehicle by certified mail, return	221
receipt requested, stating the location of the junk motor vehicle	222
and its value, and informing the owner that unless the owner	223
claims the junk motor vehicle within fifteen days from the mailing	224
of the notice, the property owner will dispose of the junk motor	225
vehicle to a motor vehicle salvage dealer or scrap metal	226
processing facility and the junk motor vehicle will be destroyed.	227

If the search of the records of the bureau reveals that there	228
is an outstanding lien on the junk motor vehicle, the property	229
owner also shall send a notice to the lienholder by certified	230
mail, return receipt requested, stating the location of the junk	231
motor vehicle and its value, and informing the lienholder that	232
unless the lienholder claims the junk motor vehicle within fifteen	233
days from the mailing of the notice, the lienholder's lien shall	234
be invalid and the property owner will dispose of the junk motor	235
vehicle to a motor vehicle salvage dealer or scrap metal	236
processing facility and the junk motor vehicle will be destroyed.	237

(2) If the motor vehicle remains unclaimed by the owner and	238
lienholder for fifteen days after the mailing of the notice, and	239
the property owner has received the signed receipt from the	240
certified mail or has been notified that delivery was not	241
possible, the property owner shall obtain from the bureau or a	242
deputy registrar a property owner junk motor vehicle affidavit.	243
The bureau shall prescribe the affidavit.	244

(3) If no part of a junk motor vehicle described in division	245
(B) of this section contains a vehicle identification number, the	246
property owner shall not be required to comply with the notice	247
requirements prescribed in divisions (C)(1) and (2) of this	248
section.	249

(D)(1) Except as provided in division (D)(2) of this section,	250
the property owner shall submit the completed property owner junk	251
motor vehicle affidavit, a fee of five dollars, and the following	252
items to the bureau:	253

(a) A photo or pencil tracing of the vehicle identification	254
number plate of the junk motor vehicle;	255

(b) Not less than five color photographs of the junk motor	256
vehicle;	257

(c) Certified mailing receipts of notification to the owner	258
of the junk motor vehicle and all lienholders;	259

(d) A copy of the letter sent to the owner of the junk motor	260
vehicle and all lienholders, notifying them that the property	261
owner intends to dispose of the junk motor vehicle;	262

(e) The property owner junk motor vehicle affidavit, signed	263
and notarized;	264

(f) Any other items the registrar of motor vehicles	265
determines are necessary.	266

(2) In the case of a junk motor vehicle of which no part	267
contains a vehicle identification number and the property owner	268
otherwise does not know the identity of the owner of the junk	269
motor vehicle, the property owner shall submit the completed	270
property owner junk motor vehicle affidavit, a fee of five	271
dollars, and the following items to the bureau:	272

(a) Not less than seven color photographs of the junk motor	273
vehicle;	274

(b) An affidavit signed by a motor vehicle mechanic certified	275
by a nationally recognized organization that certifies motor	276
vehicle mechanics, stating that no part of the junk motor vehicle	277
contains a vehicle identification number. The bureau shall	278
prescribe the affidavit.	279

(c) The property owner junk motor vehicle affidavit, signed	280
and notarized;	281

(d) Any other items the registrar of motor vehicles	282
determines are necessary.	283

(E) The bureau shall review the property owner junk motor	284
vehicle affidavit and items submitted by the property owner. If	285
the bureau approves the affidavit, the bureau shall issue to the	286
property owner a letter of authorization to scrap a junk motor	287
vehicle located on private property. The bureau shall send the	288
letter of authorization and property owner junk motor vehicle	289
affidavit to the property owner but shall retain the items listed	290
in divisions (D)(1)(a) to (d) and (f) or (D)(2)(a), (b), and (d)	291
of this section for a period of three years. After three years,	292
the bureau may destroy the items.	293

The property owner shall present the letter of authorization	294
and property owner junk motor vehicle affidavit to a motor vehicle	295
salvage dealer or scrap metal processing facility licensed by this	296
state. Upon receipt of the junk motor vehicle, the letter of	297
authorization, and property owner junk motor vehicle affidavit,	298
the motor vehicle salvage dealer or scrap metal processing	299
facility shall destroy the junk motor vehicle. The motor vehicle	300
salvage dealer or scrap metal processing facility shall retain the	301
letter of authorization and property owner junk motor vehicle	302
affidavit for a period of three years. After three years, the	303
dealer or facility may destroy the letter and affidavit.	304

(F) The fair market value of a junk motor vehicle shall be	305
determined in accordance with standards fixed by the registrar.	306

(G) The bureau shall deposit all fees the bureau receives	307
under this section into the state treasury to the credit of the	308
state bureau of motor vehicles fund created by section 4501.25 of	309
the Revised Code.	310

(H)(1)(a) No person shall submit to the bureau false,	311
fraudulent, or altered items as described in divisions (D)(1)(a)	312
to (d) and (f) or (D)(2)(a), (b), and (d) of this section or a	313
property owner junk motor vehicle affidavit that contains false,	314
fraudulent, or misleading information.	315

(b) No person shall sign an affidavit described in division	316
(D)(2)(b) of this section, knowing or having reason to know that	317
the affidavit contains false, fraudulent, or misleading	318
information.	319

(c) No motor vehicle salvage dealer or scrap metal processing	320
facility that receives a junk motor vehicle under this section	321
shall take any action relative to the vehicle other than to	322
destroy it.	323

(2) Whoever violates division (H)(1)(a), (b), or (c) of this	324
section is guilty of a felony of the third degree.	325

Sec. 4505.11. (A) Each owner of a motor vehicle and each	326
person mentioned as owner in the last certificate of title, when	327
the motor vehicle is dismantled, destroyed, or changed in such	328
manner that it loses its character as a motor vehicle, or changed	329
in such manner that it is not the motor vehicle described in the	330
certificate of title, shall surrender the certificate of title to	331
that motor vehicle to a clerk of a court of common pleas, and the	332
clerk, with the consent of any holders of any liens noted on the	333
certificate of title, then shall enter a cancellation upon the	334
clerk's records and shall notify the registrar of motor vehicles	335
of the cancellation.	336

Upon the cancellation of a certificate of title in the manner	337
prescribed by this section, any clerk and the registrar of motor	338
vehicles may cancel and destroy all certificates and all	339
memorandum certificates in that chain of title.	340

(B)(1) If an Ohio certificate of title or salvage certificate	341
of title to a motor vehicle is assigned to a salvage dealer, the	342
dealer is not required to obtain an Ohio certificate of title or a	343
salvage certificate of title to the motor vehicle in the dealer's	344
own name if the dealer dismantles or destroys the motor vehicle,	345
indicates the number of the dealer's motor vehicle salvage	346
dealer's license on it, marks "FOR DESTRUCTION" across the face of	347
the certificate of title or salvage certificate of title, and	348
surrenders the certificate of title or salvage certificate of	349
title to a clerk of a court of common pleas as provided in	350
division (A) of this section. If the salvage dealer retains the	351
motor vehicle for resale, the dealer shall make application for a	352
salvage certificate of title to the motor vehicle in the dealer's	353
own name as provided in division (C)(1) of this section.	354

(2) At the time any salvage motor vehicle is sold at auction	355
or through a pool, the salvage motor vehicle auction or salvage	356
motor vehicle pool shall give a copy of the certificate of salvage	357
title or a copy of the certificate of title marked "FOR	358
DESTRUCTION" to the purchaser.	359

(C)(1) When an insurance company declares it economically	360
impractical to repair such a motor vehicle and has paid an agreed	361
price for the purchase of the motor vehicle to any insured or	362
claimant owner, the insurance company shall receive the	363
certificate of title and the motor vehicle and proceed as follows.	364
Within thirty days, the insurance company shall deliver the	365
certificate of title to a clerk of a court of common pleas and	366
shall make application for a salvage certificate of title. The	367
clerk shall issue the salvage certificate of title on a form,	368
prescribed by the registrar, that shall be easily distinguishable	369
from the original certificate of title and shall bear the same	370
information as the original certificate of title except that it	371
may bear a different number than that of the original certificate	372
of title. Except as provided in division (C)(2) of this section,	373
the salvage certificate of title shall be assigned by the	374
insurance company to a salvage dealer or any other person for use	375
as evidence of ownership upon the sale or other disposition of the	376
motor vehicle, and the salvage certificate of title shall be	377
transferrable to any other person. The clerk shall charge a fee of	378
four dollars for the cost of processing each salvage certificate	379
of title.	380

(2) If an insurance company considers a motor vehicle as	381
described in division (C)(1) of this section to be impossible to	382
restore for highway operation, the insurance company may assign	383
the certificate of title to the motor vehicle to a salvage dealer	384
or scrap metal processing facility and send the assigned	385
certificate of title to the clerk of the court of common pleas of	386
any county. The insurance company shall mark the face of the	387
certificate of title "FOR DESTRUCTION" and shall deliver a	388
photocopy of the certificate of title to the salvage dealer or	389
scrap metal processing facility for its records.	390

(3) If an insurance company declares it economically	391
impractical to repair a motor vehicle, agrees to pay to the	392
insured or claimant owner an amount in settlement of a claim	393
against a policy of motor vehicle insurance covering the motor	394
vehicle, and agrees to permit the insured or claimant owner to	395
retain possession of the motor vehicle, the insurance company	396
shall not pay the insured or claimant owner any amount in	397
settlement of the insurance claim until the owner obtains a	398
salvage certificate of title to the vehicle and furnishes a copy	399
of the salvage certificate of title to the insurance company.	400

(D) When a self-insured organization, rental or leasing	401
company, or secured creditor becomes the owner of a motor vehicle	402
that is burned, damaged, or dismantled and is determined to be	403
economically impractical to repair, the self-insured organization,	404
rental or leasing company, or secured creditor shall do one of the	405
following:	406

(1) Mark the face of the certificate of title to the motor	407
vehicle "FOR DESTRUCTION" and surrender the certificate of title	408
to a clerk of a court of common pleas for cancellation as	409
described in division (A) of this section. The self-insured	410
organization, rental or leasing company, or secured creditor then	411
shall deliver the motor vehicle, together with a photocopy of the	412
certificate of title, to a salvage dealer or scrap metal	413
processing facility and shall cause the motor vehicle to be	414
dismantled, flattened, crushed, or destroyed.	415

(2) Obtain a salvage certificate of title to the motor	416
vehicle in the name of the self-insured organization, rental or	417
leasing company, or secured creditor, as provided in division	418
(C)(1) of this section, and then sell or otherwise dispose of the	419
motor vehicle. If the motor vehicle is sold, the self-insured	420
organization, rental or leasing company, or secured creditor shall	421
obtain a salvage certificate of title to the motor vehicle in the	422
name of the purchaser from a clerk of a court of common pleas.	423

(E) If a motor vehicle titled with a salvage certificate of	424
title is restored for operation upon the highways, application	425
shall be made to a clerk of a court of common pleas for a	426
certificate of title. Upon inspection by the state highway patrol,	427
which shall include establishing proof of ownership and an	428
inspection of the motor number and vehicle identification number	429
of the motor vehicle and of documentation or receipts for the	430
materials used in restoration by the owner of the motor vehicle	431
being inspected, which documentation or receipts shall be	432
presented at the time of inspection, the clerk, upon surrender of	433
the salvage certificate of title, shall issue a certificate of	434
title for a fee prescribed by the registrar. The certificate of	435
title shall be in the same form as the original certificate of	436
title and shall bear the words "REBUILT SALVAGE" in black boldface	437
letters on its face. Every subsequent certificate of title,	438
memorandum certificate of title, or duplicate certificate of title	439
issued for the motor vehicle also shall bear the words "REBUILT	440
SALVAGE" in black boldface letters on its face. The exact location	441
on the face of the certificate of title of the words "REBUILT	442
SALVAGE" shall be determined by the registrar, who shall develop	443
an automated procedure within the automated title processing	444
system to comply with this division. The clerk shall use	445
reasonable care in performing the duties imposed on the clerk by	446
this division in issuing a certificate of title pursuant to this	447
division, but the clerk is not liable for any of the clerk's	448
errors or omissions or those of the clerk's deputies, or the	449
automated title processing system in the performance of those	450
duties. A fee of fifty dollars shall be assessed by the state	451
highway patrol for each inspection made pursuant to this division	452
and shall be deposited into the state highway safety fund	453
established by section 4501.06 of the Revised Code.	454

(F) No person shall operate upon the highways in this state a	455
motor vehicle, title to which is evidenced by a salvage	456
certificate of title, except to deliver the motor vehicle pursuant	457
to an appointment for an inspection under this section.	458

(G) No motor vehicle the certificate of title to which has	459
been marked "FOR DESTRUCTION" and surrendered to a clerk of a	460
court of common pleas shall be used for anything except parts and	461
scrap metal.	462

(H)(1) Except as otherwise provided in this division, an	463
owner of a manufactured or mobile home that will be taxed as real	464
property pursuant to division (B) of section 4503.06 of the	465
Revised Code shall surrender the certificate of title to the	466
auditor of the county containing the taxing district in which the	467
home is located. An owner whose home qualifies for real property	468
taxation under divisions (B)(1)(a) and (b) of section 4503.06 of	469
the Revised Code shall surrender the certificate within fifteen	470
days after the home meets the conditions specified in those	471
divisions. The auditor shall deliver the certificate of title to	472
the clerk of the court of common pleas who issued it.	473

(2) If the certificate of title for a manufactured or mobile	474
home that is to be taxed as real property is held by a lienholder,	475
the lienholder shall surrender the certificate of title to the	476
auditor of the county containing the taxing district in which the	477
home is located, and the auditor shall deliver the certificate of	478
title to the clerk of the court of common pleas who issued it. The	479
lienholder shall surrender the certificate within thirty days	480
after both of the following have occurred:	481

(a) The homeowner has provided written notice to the	482
lienholder requesting that the certificate of title be surrendered	483
to the auditor of the county containing the taxing district in	484
which the home is located.	485

(b) The homeowner has either paid the lienholder the	486
remaining balance owed to the lienholder, or, with the	487
lienholder's consent, executed and delivered to the lienholder a	488
mortgage on the home and land on which the home is sited in the	489
amount of the remaining balance owed to the lienholder.	490

(3) Upon the delivery of a certificate of title by the county	491
auditor to the clerk, the clerk shall inactivate it and maintain	492
it in the automated title processing system for a period of thirty	493
years.	494

(4) Upon application by the owner of a manufactured or mobile	495
home that is taxed as real property pursuant to division (B) of	496
section 4503.06 of the Revised Code and that no longer satisfies	497
divisions (B)(1)(a) and (b) or divisions (B)(2)(a) and (b) of that	498
section, the clerk shall reactivate the record of the certificate	499
of title that was inactivated under division (H)(3) of this	500
section and shall issue a new certificate of title, but only if	501
the application contains or has attached to it all of the	502
following:	503

(a) An endorsement of the county treasurer that all real	504
property taxes charged against the home under Title LVII of the	505
Revised Code and division (B) of section 4503.06 of the Revised	506
Code for all preceding tax years have been paid;	507

(b) An endorsement of the county auditor that the home will	508
be removed from the real property tax list;	509

(c) Proof that there are no outstanding mortgages or other	510
liens on the home or, if there are such mortgages or other liens,	511
that the mortgagee or lienholder has consented to the reactivation	512
of the certificate of title.	513

(I)(1) Whoever violates division (F) of this section shall be	514
fined not more than two thousand dollars, imprisoned not more than	515
one year, or both.	516

(2) Whoever violates division (G) of this section shall be	517
fined not more than one thousand dollars, imprisoned not more than	518
six months, or both.	519

Sec. 4738.01. As used in sections 4738.01 to 4738.16 of the	520
Revised Code:	521

(A) "Motor vehicle salvage dealer" means any person who	522
engages in business primarily for the purpose of selling salvage	523
motor vehicle parts and secondarily for the purpose of selling at	524
retail salvage motor vehicles or manufacturing or selling a	525
product of gradable scrap metal.	526

(B) "Salvage motor vehicle" means any motor vehicle which is	527
in a wrecked, dismantled, or worn out condition, or unfit for	528
operation as a motor vehicle.	529

(C) "Salvage motor vehicle auction" means any person who on	530
~~his own~~the person's behalf or as an agent for a third party	531
engages in business for the purpose of auctioning salvage motor	532
vehicles ~~to motor vehicle salvage dealers~~.	533

(D) "Salvage motor vehicle pool" means any person who as an	534
agent for a third party engages in business for the purpose of	535
storing, displaying, and offering for sale salvage motor vehicles	536
~~to motor vehicle salvage dealers~~.	537

(E) "Engaging in business" means commencing, conducting, or	538
continuing in business, or liquidating a business when the	539
liquidator thereof holds ~~himself~~the liquidator out to be	540
conducting such business; making a casual sale or otherwise making	541
transfers in the ordinary course of business when the transfers	542
are made in connection with the disposition of all or	543
substantially all of the transferor's assets is not engaging in	544
business.	545

(F) "Retail sale" or "sale at retail" means the act or	546
attempted act of selling, bartering, exchanging, or otherwise	547
disposing of salvage motor vehicles or salvage motor vehicle parts	548
to ~~an ultimate purchaser~~a person who purchases the salvage motor	549
vehicle for use as a consumer.	550

(G) "~~Ultimate~~Authorized purchaser" means~~, with respect to~~	551
~~any~~a person who intends to purchase a salvage motor vehicle or	552
from a salvage motor vehicle ~~part, a purchaser who in good faith~~	553
~~purchases such~~auction or salvage motor vehicle ~~or part~~pool~~for~~	554
~~purposes other than resale and is not licensed as a motor vehicle~~	555
~~dealer under Chapter 4517. of the Revised Code.~~and who satisfies	556
any of the following criteria:	557

(1) The person is a motor vehicle salvage dealer who is	558
licensed pursuant to this chapter; a junk yard that is licensed	559
pursuant to section 4737.07 of the Revised Code; a scrap metal	560
processing facility that is licensed pursuant to section 4737.05	561
of the Revised Code; is a salvage dismantler or automotive	562
recycler; or is licensed or otherwise authorized to purchase	563
salvage motor vehicles and is regulated by another state, country,	564
or jurisdiction.	565

(2) The person is a used motor vehicle dealer who is either	566
licensed pursuant to section 4517.02 of the Revised Code or is	567
licensed or otherwise authorized to do business as a used motor	568
vehicle dealer and is regulated by another state, country, or	569
jurisdiction.	570

(3) The person does not satisfy the criteria described in	571
division (G)(1) or (2) of this section but holds a valid federal	572
tax identification number or other verifiable documentation	573
evidencing that the person is authorized by this state or the	574
federal government to do business in this state and has purchased	575
fewer than a total of seven salvage motor vehicles in the current	576
calendar year from any salvage motor vehicle auction or salvage	577
motor vehicle pool.	578

(4) The person does not satisfy the criteria described in	579
division (G)(1) or (2) of this section but has purchased fewer	580
than a total of five salvage motor vehicles in the current	581
calendar year from any salvage motor vehicle auction or salvage	582
motor vehicle pool.	583

(H) "Business" includes any activities engaged in by any	584
person for the object of gain, benefit, or advantage either direct	585
or indirect.	586

(I) "Casual sale" means any transfer of a salvage motor	587
vehicle by a person other than a motor vehicle salvage dealer,	588
salvage motor vehicle auction, or salvage motor vehicle pool, to	589
~~an ultimate purchaser~~a person who purchases the salvage motor	590
vehicle for use as a consumer.	591

Sec. 4738.02. (A) Except as provided in divisions (B) and	592
~~(D)~~(E) of this section, no person shall engage in the business of	593
selling at retail ~~salvage motor vehicles or~~ salvage motor vehicle	594
parts~~, or assume to engage in any such business~~ without first	595
obtaining a motor vehicle salvage dealer's license pursuant to	596
this chapter.	597

(B)(1) Except as provided in divisions ~~(B)(1) and~~ (C)~~(1) of~~	598
~~section 4738.03 of the Revised Code~~and (E) of this section, no	599
person shall engage in the business of selling at retail salvage	600
motor vehicles nor, other than as a lessor, provide a location or	601
a space for the sale of salvage motor vehicles without first	602
obtaining a motor vehicle salvage dealer's license, a salvage	603
motor vehicle auction license, or a salvage motor vehicle pool	604
license pursuant to this chapter.	605

(2) Notwithstanding division (B)(1) of this section, a person	606
may sell salvage motor vehicles at retail to or through a salvage	607
motor vehicle auction or salvage motor vehicle pool without	608
obtaining any license pursuant to this chapter if the acquisition	609
of salvage motor vehicles is incidental to the primary business of	610
the person and the disposal of those salvage motor vehicles is	611
incidental to the primary business of the person.	612

(C) No person shall make more than five casual sales of	613
salvage motor vehicles in a ~~twelve-month period, commencing with~~	614
~~the day of the month in which the first such sale is made, nor~~	615
~~provide a location or space for the sale at retail of salvage~~	616
~~motor vehicles, without obtaining a motor vehicle salvage dealer's~~	617
~~license pursuant to this chapter~~calendar year.	618

~~(C)~~(D) Except as provided in division ~~(D)~~(E) of this section,	619
no person shall operate as a salvage motor vehicle auction or	620
salvage motor vehicle pool without first obtaining the appropriate	621
license pursuant to this chapter.	622

~~(D)~~(E) In case of the dissolution of a partnership by death,	623
the surviving partner may operate under any license obtained by	624
the partnership pursuant to this chapter for a period of sixty	625
days and the heirs or representatives of deceased persons and	626
receivers or trustees in bankruptcy appointed by any competent	627
authority may operate under the license of the person succeeded in	628
possession by the heir, representative, receiver, or trustee in	629
bankruptcy.	630

~~(E)~~(F) Nothing in this chapter applies to any public officer	631
performing his official duties.	632

Sec. 4738.021. (A)(1) Every salvage motor vehicle auction and	633
salvage motor vehicle pool shall keep an electronic record of all	634
sales of salvage motor vehicles and shall include in the record	635
the make, model, year, vehicle identification number, and the	636
names and addresses of the purchaser and seller of the salvage	637
motor vehicle.	638

(2) In addition to the information collected pursuant to	639
division (A)(1) of this section, every salvage motor vehicle	640
auction and salvage motor vehicle pool shall obtain from any	641
authorized purchaser of an Ohio salvage motor vehicle a copy of a	642
driver's license, passport, or other government-issued	643
identification. Every salvage motor vehicle auction and salvage	644
motor vehicle pool shall maintain a copy of this identification	645
for a period of two years.	646

(3) In addition to the information collected pursuant to	647
divisions (A)(1) and (2) of this section, every salvage motor	648
vehicle auction and salvage motor vehicle pool shall obtain from	649
any person who is an authorized purchaser as defined in division	650
(G)(1) or (2) of section 4738.01 of the Revised Code documented	651
proof of any required license or other authorization to do	652
business pursuant to this chapter. Every salvage motor vehicle	653
auction and salvage motor vehicle pool shall maintain a copy of	654
this documentation for a period of two years.	655

(4) In addition to the information collected pursuant to	656
divisions (A)(1) to (3) of this section, every salvage motor	657
vehicle auction and salvage motor vehicle pool shall obtain from	658
any person who is an authorized purchaser as defined in division	659
(G)(3) or (4) of section 4738.01 of the Revised Code a declaration	660
under penalty of perjury that the authorized purchaser is not	661
making a purchase in excess of the applicable limit identified in	662
those divisions. The salvage motor vehicle auction or salvage	663
motor vehicle pool shall maintain that declaration for a period of	664
two years. The declaration may be submitted by the authorized	665
purchaser in electronic or written format.	666

(B) Every salvage motor vehicle auction and salvage motor	667
vehicle pool shall submit the information collected pursuant to	668
division (A) of this section to the registrar of motor vehicles on	669
a quarterly or other periodic basis that is not less than	670
quarterly pursuant to the rules adopted by the registrar in	671
division (C) of this section.	672

(C)(1) Within sixty days after the effective date of this	673
section, the registrar shall develop a statewide database for the	674
submission of the information collected pursuant to division (A)	675
of this section. The system shall be used to maintain an accurate	676
record of all sales conducted by a salvage motor vehicle auction	677
or salvage motor vehicle pool.	678

(2) The registrar may adopt any rules necessary to facilitate	679
the timely submission of the information required pursuant to this	680
section.	681

The registrar may make the information the registrar receives	682
under this section available to any state or local law enforcement	683
agency upon request.	684

Sec. 4738.022. Every salvage motor vehicle auction and	685
salvage motor vehicle pool shall comply with the reporting	686
requirements of the national motor vehicle title information	687
system.	688

Sec. 4738.023. Within ninety days after the sale of a	689
salvage motor vehicle, the registrar of motor vehicles shall issue	690
a certificate of salvage title to the purchaser of that salvage	691
motor vehicle containing the following notice in bold lettering:	692

"SALVAGE VEHICLE – NOT FOR RESALE WITHOUT DISCLOSURE.	693
WARNING: THIS SALVAGE VEHICLE MAY NOT BE SAFE FOR OPERATION UNLESS	694
PROPERLY REPAIRED. SOME STATES MAY REQUIRE AN INSPECTION BEFORE	695
THIS VEHICLE MAY BE REGISTERED. THE STATE OF OHIO MAY REQUIRE THIS	696
VEHICLE TO BE PERMANENTLY BRANDED AS A REBUILT SALVAGE VEHICLE.	697
OTHER STATES MAY ALSO PERMANENTLY BRAND THE CERTIFICATE OF TITLE."	698

Sec. 4738.03. (A) No person licensed as a motor vehicle	699
salvage dealer under this chapter shall engage in the business of	700
selling at retail salvage motor vehicle parts or salvage motor	701
vehicles, unless the business is operated primarily for the	702
purpose of selling at retail salvage motor vehicle parts. Any	703
person operating such a business primarily for the purpose of	704
selling at retail salvage motor vehicle parts may secondarily sell	705
at retail salvage motor vehicles or manufacture a product of	706
gradable scrap metal for sale to scrap metal processors or any	707
other consumer.	708

(B) No person licensed as a salvage motor vehicle auction	709
under this chapter shall:	710

(1) ~~Make a casual sale of~~Sell a salvage motor vehicle to	711
anyone other than an authorized purchaser;	712

(2) Sell a salvage motor vehicle when having reasonable cause	713
to believe it is not offered by the legal owner thereof;	714

~~(3) Sell a salvage motor vehicle to any person except a~~	715
~~person licensed as a motor vehicle salvage dealer under this~~	716
~~chapter;~~	717

~~(4)~~(3) Fail to make an Ohio salvage certificate of title	718
available to the purchaser of a salvage motor vehicle sold by the	719
salvage motor vehicle auction, before payment for the salvage	720
motor vehicle is completed;	721

~~(5)~~(4) Operate as a motor vehicle salvage dealer at the same	722
location where any salvage motor vehicle auction is operated.	723

(C) No person licensed as a salvage motor vehicle pool under	724
this chapter shall:	725

(1) ~~Make a casual sale of~~Sell a salvage motor vehicle to	726
anyone other than an authorized purchaser;	727

(2) Sell a salvage motor vehicle when having reasonable cause	728
to believe it is not offered by the legal owner thereof;	729

~~(3) Sell a salvage motor vehicle to any person except a~~	730
~~person licensed as a motor vehicle salvage dealer under this~~	731
~~chapter;~~	732

~~(4)~~(3) Fail to make an Ohio salvage certificate of title	733
available to the purchaser of a salvage motor vehicle sold by the	734
salvage motor vehicle pool, before payment for the salvage motor	735
vehicle is completed;	736

~~(5)~~(4) Operate as a motor vehicle salvage dealer at the same	737
location where any salvage motor vehicle pool is operated.	738

Sec. 4738.031. No person who is not an authorized purchaser	739
shall purchase a salvage motor vehicle from a salvage motor	740
vehicle auction or salvage motor vehicle pool.	741

Sec. 4738.17. (A) No person who is not licensed as a salvage	742
motor vehicle auction or salvage motor vehicle pool shall engage	743
in the business of selling salvage motor vehicle parts or salvage	744
motor vehicles at wholesale. ~~Any~~	745

(B)(1) Any person licensed as a salvage motor vehicle dealer	746
under this chapter may sell salvage motor vehicle parts or salvage	747
motor vehicles at wholesale.	748

(2) Notwithstanding division (A) of this section, a person	749
may sell salvage motor vehicles at wholesale to or through a	750
salvage motor vehicle auction or salvage motor vehicle pool	751
without obtaining any license pursuant to this chapter if the	752
acquisition of salvage motor vehicles is incidental to the primary	753
business of the person and the disposal of those salvage motor	754
vehicles is incidental to the primary business of the person.	755

Sec. 4738.99. (A) Whoever violates section 4738.02 or	756
4738.03 of the Revised Code is guilty of a misdemeanor of the	757
second degree on a first offense; on each subsequent offense, such	758
person is guilty of a misdemeanor of the first degree.	759

(B) Whoever violates section 4738.01, sections 4738.04 to	760
4738.13, or division (B) of section 4738.16 of the Revised Code is	761
guilty of a misdemeanor of the fourth degree.	762

(C) Whoever violates section 4738.031, 4738.14, or 4738.15 of	763
the Revised Code is guilty of a minor misdemeanor.	764

Section 2. That existing sections 505.871, 4501.25, 4505.061,	765
4505.11, 4738.01, 4738.02, 4738.03, 4738.17, and 4738.99 and	766
section 4738.18 of the Revised Code are hereby repealed.	767