Summary:

 House Bill 99 (HB 99) relates to motor vehicles. HB 99 reorganizes provisions relating to nonrepairable vehicle certificates into a new section of the NMSA 1978. HB 99 allows insurance companies that pay total loss claims to vehicle owners to obtain a salvage certificate of title or nonrepairable vehicle certification. HB 99 amends and enacts sections of the NMSA 1978.
 

Legislation Overview:

 House Bill 99 (HB 99) makes changes and adds a new section of NMSA 1978.
SECTION 1 amends Motor Vehicles to delete provisions for a nonrepairable vehicle certificate. Subsections D through H are deleted and the section is relettered.
The new Subsection D is amended to remove references to previous subsections and inserts Section 66-3-4.1 NMSA 1978. 
SECTION 2 adds a new Section 66-3-4.1 NMSA 1978 titled:  NONREPAIRABLE VEHICLE CERTIFICATE--OBTAINING EVIDENCE OF OWNERSHIP AFTER TOTAL LOSS PAYMENT BY AN INSURANCE COMPANY.
A. Prior to the sale or disposal of a nonrepairable vehicle, 
the owner, owner's agent or salvage pool shall obtain a properly endorsed nonrepairable vehicle certificate from the department and deliver it to the purchaser as specified in this subsection.. 
The department shall accept the endorsed certificate in lieu of the certificate of ownership or other evidence of ownership when accompanied by an application and other documents and fees as may be required by the department. 
A vehicle for which a nonrepairable vehicle certificate has been issued shall not be titled or registered for use on the highways of this state. 
B. If an insurance company makes a total loss settlement on a nonrepairable vehicle and takes possession of that vehicle, the insurance company shall: 
stamp the face of the title or manufacturer's certificate of origin with the word “NONREPAIRABLE" as specified in this paragraph.
within 20 days after receipt of title, submit a copy of the branded title or manufacturer's certificate of title to the department as specified in this paragraph. The department, upon receipt of the evidence of ownership, shall issue a nonrepairable vehicle certificate for the vehicle. 
C. Any documents used for conveyance of ownership of a motor vehicle to an insurance company as a result of a total loss insurance settlement shall not require a notarized signature and may be signed electronically. 
D. If an owner of a nonrepairable vehicle elects to retain possession of the vehicle, the insurance company shall:
- notify the department of the retention on a form prescribed by the department.
- notify the insured or owner of the insured's or owner's responsibility to comply with this section. 
- The owner shall, within 20 days from the date of settlement of the loss, forward a properly endorsed certificate of title or manufacturer's certificate of origin or other evidence of ownership with the proper fee to the department. 
- The department, upon receipt of the evidence of ownership, shall issue a nonrepairable vehicle certificate for the vehicle. 
E. If a nonrepairable vehicle is not the subject of an insurance settlement, the owner shall, within 20 days from the date of the loss, forward a properly endorsed certificate of title or other evidence of ownership with the proper fee to the department. The department, upon receipt of the title evidence of ownership, shall issue a nonrepairable vehicle certificate for the vehicle. 
F. If an insurance company makes a total loss payment to a vehicle owner and takes possession of the vehicle but is unable to obtain evidence of ownership acceptable to the department, the insurance company or its authorized agent may request the department to issue a salvage certificate of title or nonrepairable vehicle certificate for the vehicle on a form provided by the department and signed under penalty of perjury by a representative of the insurance company as follows: 
(1) the application on a form provided by the department to issue a salvage certificate of title or nonrepairable vehicle certificate shall not occur prior to 30 days after the insurance claim payment and shall include the evidence and fee specified in this paragraph.
(2) the attempts by the insurance company to obtain evidence of title shall be made by certified mail showing evidence of delivery or refusal; and
(3) the department, upon receipt of the the evidence as specified, shall issue a salvage certificate of title or nonrepairable vehicle certificate for the vehicle in the name of the insurance company. 
G. The insurance company shall indemnify and hold harmless the department for any and all claims resulting from or arising out of the department's issuance of a salvage certificate of title or nonrepairable vehicle certificate pursuant to the application for title. 
H. During the total loss settlement, the vehicle owner or the lienholder, shall forward to the insurance company a properly endorsed certificate of title within 15 days after the receipt of settlement funds.

 

Current Law:

 House Bill 99 affects Section 66-3-4 NMSA 1978 (being Laws 1978, Chapter 35, Section 24, as amended by Laws 2023, Chapter 10, Section 1 and by Laws 2023, Chapter 136, Section 3), which currently makes provision for a non repairable vehicle certificate. 

Amendments:

 House Bill 99 is amended by House Transportation, Public Works and Capital Improvements (HTPWC) in Section 2, which adds new material titled Nonrepairable Vehicle Certificate. 
Subsection F and G are amended  as follows:
Subsection F inserts “after paying applicable towing and storage charges” to require an insurance company to pay these charges before taking possession of a vehicle after a total loss payment to a vehicle owner.
Subsection G inserts “defend” to specify the insurance company shall indemnify, defend and hold harmless the department for any and all claims resulting from or arising out the department’s issuance of a salve certificate of title or non repairable vehicle certificate.
Subsection I is inserted:
I. Evidence of ownership as provided in this section shall be available only for privately owned passenger vehicles.