AB 761

This bill eliminates buyer identification (BID) cards and all associated

requirements and restrictions specific to the purchase of motor vehicles from a motor

vehicle salvage pool, imposes record-keeping requirements on salvage pools, and

changes the definition of “junk vehicle.”

Under current law, a person may not purchase or bid on a motor vehicle from

a motor vehicle salvage pool unless the person holds a valid BID card issued by the

Department of Transportation, the person displays the BID card to the salvage pool,

and the person includes the BID card number on any bid submitted to the salvage

pool. A motor vehicle salvage pool sells or distributes damaged motor vehicles at

wholesale, generally by auction. BID cards are available only to motor vehicle

dealers, wholesalers, and salvage dealers licensed in this state or another state and

to their employees. BID cards must contain the full name, business and residence

address, and a brief description of the card holder, as well as the card holder's BID

number. The motor vehicle salvage pool may not accept a bid or complete a sales

transaction unless the bidder satisfies the foregoing requirements. The motor

vehicle salvage pool must also establish and maintain, in compliance with standards

established by DOT, a record of each motor vehicle sold. DOT may also inspect the

books and records of BID card holders, at the cost of the card holder. This bill

eliminates BID cards and all associated requirements and restrictions specific to the

purchase of motor vehicles from a salvage pool.

This bill also requires a motor vehicle salvage pool to maintain an electronic

record for each junk vehicle or salvage vehicle sold by or purchased from the pool.

The record must include all of the following: 1) the year, make, model, and vehicle

identification number of the vehicle; 2) the name and address of the seller and buyer

and each bidder; and 3) a copy of the buyer's current motor vehicle operator's license

or other current, government-issued photographic identification. A motor vehicle

salvage pool must upon prior written notice make these records available to DOT or

a law enforcement agency.

Under current law, a “junk vehicle" is defined as a vehicle that is incapable of

highway operation and has no resale value except as a source of parts or scrap or that

an insurance company has taken possession of or title to because the cost of repairing

the vehicle exceeds its value. This bill changes the definition of “junk vehicle" to

mean a vehicle that has no resale value except as a source of parts or scrap and that

has been designated by the owner as a source of parts or scrap.