SB 246

This bill requires scrap metal processors and dealers who acquire a motor

vehicle for scrap or salvage to comply with the same requirements as motor vehicle

salvage dealers, and changes certain requirements that apply before a motor vehicle

salvage dealer may acquire a motor vehicle in which another person holds a security

interest.

This bill changes the definition of a “motor vehicle salvage dealer" to include a

scrap metal processor or scrap metal dealer who acquires a motor vehicle for scrap

or salvage. Under current law, a motor vehicle salvage dealer must be licensed by

the Department of Transportation and comply with certain requirements. Under

current law, a “scrap metal processor" is a person who processes or scraps motor

vehicles but does not sell motor vehicles or vehicle parts and whose business is

limited to a fixed location where scrap metal is processed into prepared grades for

sale for remelting. A “scrap metal dealer" is a person engaged in the business of

buying or selling scrap metal. The bill also eliminates certain requirements under

current law that apply to scrap metal dealers who acquire a motor vehicle, relating

to the acquisition of a motor vehicle whose certificate of title identifies a holder of a

security interest, that are the same as requirements that apply to motor vehicle

salvage dealers under current law.

In addition, the bill allows a licensed motor vehicle salvage dealer to acquire a

motor vehicle whose certificate of title identifies a holder of a security interest, for

the purpose of wrecking or junking the vehicle, if the dealer pays the amount of the

outstanding obligation represented by the security interest in full to the security

interest holder when the dealer obtains the title for the vehicle. Current law

prohibits a motor vehicle salvage dealer from acquiring such a motor vehicle.