Current through Register Vol. 49, No. 9, September, 2024
This rule is promulgated by the Director of the Department of
Finance and Administration to administer the provisions of Act 410 of 2007
pursuant to the authority of Ark. Code Ann. §
27-14-2301
through Ark. Code Ann. §
27-14-2305
as amended by Act 410 of 2007.
1.
Definitions. For purposes of this rule, unless
otherwise required by their context, the following definitions apply:
A. "Affidavit of Reconstruction" means a
form, prescribed by the Commissioner, which shall be completed by a repairer or
rebuilder upon completion of the rebuilding or reconstruction of a damaged
motor vehicle and surrendered to the Commissioner by the owner of such rebuilt
or reconstructed motor vehicle when making application for registration and
issuance of a rebuilt title as defined herein.
B. "Commissioner" means the means the
Director of the Department of Finance and Administration acting in his capacity
as Commissioner of Motor Vehicles in this state.
C
(i)
"Dealer" means any person or business who sells or offers for sale a motor
vehicle after selling or offering for sale five (5) or more motor vehicles in
the previous twelve (12) months or who is a new or used motor vehicle dealer
licensed by or with the State of Arkansas.
(ii) Persons or businesses that operate as
salvage vehicle pools or salvage vehicle auctions are not dealers for purposes
of this rule when selling vehicle parts to a dealer.
D. "Declaration of Damage" means a form,
prescribed by the Commissioner, which shall be completed by the owner or
insurer of a salvage vehicle, as defined herein, which is submitted to the
Commissioner by the owner when making application for registration and issuance
of a salvage title or, for an insurer not taking title to the salvage vehicle,
within 30 days of indemnifying the owner for loss.
E
(i)
"Motor vehicle" means every self-propelled vehicle, except motorcycles,
motor-driven cycles, and trucks with an unladen weight of ten thousand pounds
(10,000 lbs.) or more, in, upon, or by which any person or property is or may
be transported upon a street or highway.
(ii) "Motor vehicle" does not include,
motorcycles, motor-driven cycles, trucks with an unladen weight of 10,000
pounds or more, any motor vehicle that has been damaged to the extent that it
is considered junk under the provisions of Ark. Code Ann. §
27-14-913
or for which an Arkansas intent to dismantle form has been submitted or an
out-of-state junking certificate has been issued and any motor vehicle that is
more than seven (7) model years old prior to the year of occurrence.
(Subtracting 8 from the current calendar year will determine the latest model
year excluded.)
F.
"Occurrence" means the event which caused the motor vehicle to become damaged
and includes, without limitation, collision, theft, vandalism, storm and
flood.
G. "Office of Motor Vehicle"
or "Office" means the Office of Motor Vehicle of the Revenue Division of the
Department of Finance and Administration.
H. "Owner" means an individual, insurance
company, or other entity with legal title to the motor vehicle.
I. "Parts only title" means an Arkansas
certificate of title issued to the owner of a vehicle that has no resale value
except as a source for parts or scrap that bears the notation "PARTS ONLY" and
"Not for Registration".
J. "Rebuilt
or reconstructed motor vehicle" means a motor vehicle for which a salvage,
damaged, water-damaged, reconstructed, rebuilt or other similar certificate of
title has been previously issued and such motor vehicle has been repaired to
the extent that it can be licensed for use on the public streets and highways
of this state.
K. "Rebuilt title"
means an Arkansas certificate of title issued to the owner of a rebuilt or
reconstructed motor vehicle, as defined herein, that bears the notation
"REBUILT" printed in the remarks section on the face of the title.
L. "Repairer or Rebuilder" means any person,
firm or entity that engages in the repairing, rebuilding or reconstructing of
any damaged motor vehicle, as defined in this regulation, whether or not such
activity is for profit.
M. "Salvage
title" means an Arkansas certificate of title issued to the owner of a salvage
vehicle, as defined herein, that bears the notation "SALVAGE" printed in the
remarks section on the face of the title.
N. "Salvage vehicle" means a motor vehicle
which is water-damaged as defined in this rule or sustains any other damage in
an amount equal to or exceeding seventy percent (70%) of its average retail
value, as listed in the most current issue of any pricing guide approved by the
Commissioner for use in determining the percentage of such damage.
O. "Water-damaged" means damage to a motor
vehicle caused by submerging or partially submerging the vehicle in water to
the extent that the vehicle was submerged or partially submerged at any water
level above the dashboard of the vehicle, regardless of the actual dollar
amount of the damage.
2.
Salvage Title Application Process.
A. Any owner of a salvage vehicle, including
insurers who acquire ownership of the vehicle through indemnification on an
insurance policy, shall, within 30 days after the date of occurrence, surrender
to the Commissioner the existing certificate of title along with:
(i) A completed Declaration of Damage form
prescribed by the Commissioner and incorporated herein which describes the
damage and reflects the extent of the damage to the motor vehicle;
(ii) An application for registration and
issuance of a salvage vehicle title
(iii) Any additional documentation required
by the Commissioner to comply with specific statutory requirements for
registration and issuance of a salvage title; and
(iv) Payment of all requisite fees and taxes
for the registration and issuance of a salvage title.
B. Effective January 1, 2008, any person
other than an insurer who acquires ownership of a salvage vehicle, as defined
in this rule, after the time it becomes a salvage vehicle but prior to the
issuance of a salvage title may either:
(i)
Apply for a salvage title by surrendering the certificate of title, along with
all accompanying documents and fees referenced herein, within 30 days following
the date of acquisition of the certificate of title for issuance of a salvage
title; or
(ii) Apply for a
parts-only title, if the salvage vehicle has no resale value other than as a
source for parts or scrap, by surrendering the certificate of title, along with
all accompanying documents and fees referenced herein, within 30 days following
the date of acquisition of the certificate of title for issuance of a salvage
title.
3.
Issuance of Salvage Titles and Title Notation.
A
(i) Owner
& Insurer Application. Upon receipt of the certificate of title and
accompanying documents and fees referenced in Section 2 of this Rule, the
Commissioner shall issue to the owner of a salvage vehicle, including insurers
who take ownership through indemnification, a new certificate of title bearing
the notation "SALVAGE" in the remarks section on the face of the
title.
(ii) Insurer Notification. If
a motor vehicle becomes a salvage vehicle and an insurer indemnifies under the
insurance policy, but the insurer does not take title to the salvage vehicle,
the insurer shall notify the Office that the motor vehicle is a salvage vehicle
by submitting a completed Insurer Notification and Declaration of Damage form
which is prescribed by the Commissioner and incorporated into this Rule. An
insurer's total loss report that lists the damage sustained by the vehicle may
be submitted to the Office in lieu of completing Section 5 of the completed
Insurer Notification and Declaration of Damage form that requires a description
of damage. Upon receipt of such the completed Insurer Notification and
Declaration of Damage form and the insurers total loss report, if applicable,
the Commissioner shall attach a note or stamp identifying the vehicle as a
salvage vehicle to any copy of a title issued by the Office or to any reissued
or changed title. Such note or stamp shall remain in place until the owner of
the vehicle surrenders the certificate of title to the salvage vehicle and a
salvage vehicle title is issued by the Commissioner.
B. In the event that a motor vehicle is
rebuilt or reconstructed after the issuance of a salvage title, a rebuilt title
may later be substituted for the salvage title if the owner complies with the
provisions of this Rule pertaining to the registration and titling of rebuilt
or reconstructed vehicles.
4.
Issuance of Parts-Only Titles
and Title Notation.
A. Any motor
vehicle that has been damaged to the extent that it is considered junk,
non-repairable or any other similar designation under the provisions of Ark.
Code Ann. §
27-14-913
and for which an Arkansas Notice of Intent to Dismantle a Motor Vehicle form,
prescribed by the Commissioner and incorporated into this Rule, has been
submitted, or for which a junking certificate has been issued by another state
shall not be registered in the State of Arkansas.
B. Effective January 1, 2008, an Owner of a
vehicle considered junk, nonrepairable or any other similar designation may
obtain a new certificate of title bearing the notation "PARTS ONLY" and "Not
for Registration" by completing and submitting a Request for Parts Only Title
Form, to be prescribed by the Commissioner, along with all requisite fees due
for issuance of the parts only title along with any additional documentation
that may be necessary to comply with the statutory requirements for the
issuance of a parts only title.
5.
Issuance of Rebuilt Titles and
Title Notation.
A. When any motor
vehicle for which a Salvage title has been issued (or for which a similarly
branded or designated title has been issued by another state) is rebuilt or
reconstructed, the repairer or rebuilder shall complete and deliver to the
owner a signed Affidavit of Reconstruction for a Salvage Vehicle form which is
prescribed by the Commissioner and incorporated into this Rule that fully
discloses the repairs made to the vehicle and lists all parts and components
that were repaired or replaced. The owner or repairer or rebuilder, if that
person is the owner, shall acknowledge receipt of the Affidavit of
Reconstruction form by signing it in the space provided for the owner's
signature.
B. The owner or repairer
or rebuilder of a salvage vehicle, if that person is the owner, shall, within
ten (10) working days, make application to receive a new certificate of title
bearing the notation "REBUILT" in the remarks section on the face of the title
by surrendering the existing Salvage title to the repaired or reconstructed
motor vehicle accompanied by:
(i) The
completed Affidavit of Reconstruction form;
(ii) An application for registration and
issuance of a certificate of title to the vehicle signed by the vehicle
owner;
(iii) Any additional
documentation otherwise necessary to comply with specific statutory
requirements for registration and issuance of a certificate of title;
and
(iv) Payment of all requisite
fees and taxes.
6.
Notation Carried
forward. The notation of "Salvage," "Rebuilt," "Parts Only" or any
other similar designation issued by another state shall be carried forward and
printed on the face of all subsequent Arkansas titles issued for the motor
vehicle.
7.
Taxes. Pursuant to the provisions of Ark. Code Ann. §
27-14-2306,
persons licensed by the State of Arkansas as motor vehicle dealers shall not be
required to pay gross receipts taxes or compensating use taxes on any motor
vehicle they are required to register and title. Pursuant to the provisions of
Ark. Code Ann. §
26-52-510
and Ark. Code Ann. §
27-14-903,
persons other than licensed motor vehicle dealers shall pay sales or
compensating use tax at registration if the total consideration paid for the
motor vehicle is more than the amount set forth in Ark. Code Ann. §
26-52-510(b)(1)(B).
8.
Special Provisions for
Insurance Companies.
A. Transfer
of Possession of Motor Vehicles. Any insurance company licensed to do business
in the State of Arkansas that obtains possession of a motor vehicle as the
result of a settlement of an insurance claim, and such motor vehicle has not
sustained sufficient damage to require the issuance of a Salvage title or is
excluded from the definition of motor vehicle by virtue of its age may dispose
of the motor vehicle by reassigning the existing certificate of title assigned
to the insurance company by the insured owner and shall not be required to
apply for registration and issuance of a title in the name of the insurance
company.
B. Transfer of Possession
of Exempt Vehicles.
Any insurance company licensed to do business in the State of
Arkansas that obtains possession of exempt motorcycles, motor driven cycles,
and trucks with unladen weight of 10,000 pounds or more as the result of a
settlement of an insurance claim, and such vehicle is excluded from the
definition of motor vehicle may dispose of the vehicle by reassigning the
existing certificate of title assigned to the insurance company by the insured
owner and shall not be required to apply for registration and issuance of a
title in the name of the insurance company.
C. Insurers having the responsibility under
this rule to surrender the certificate of title on a Salvage vehicle for which
it has taken title or to notify the Office that a motor vehicle is a Salvage,
Rebuilt or Parts Only vehicle may delegate the responsibility of surrendering
the certificate of title or of notification to a servicing organization or to
any person or entity purchasing the vehicle from the insurer.
D. Insurers shall remain responsible under
Arkansas law if the servicing organization or purchaser fails to properly
surrender the title or notify the Office.
9.
Enforcement.
Pursuant to the provisions of Ark. Code Ann. §
27-14-406,
§
27-14-701
and §
27-14-719,
failure to abide by the requirements of Ark. Code Ann. §
27-14-2301
et seq. and this Rule shall entitle the Office of Motor Vehicles to cancel the
existing title to the motor vehicle for cause and take possession of any
certificate of title, registration certificate, permit, license, or
registration plate issued by it for the motor vehicle.
10.
Repeal of Damaged Vehicle
Title Regulation, Regulation, 1995-4.
The provisions of Damaged Vehicle Title Regulation, Regulation
1995-4 are hereby repealed.
