Utah Automotive Recyclers Association Praises Passage of SB 260, Which Provides Important Safeguards and Restricts Access to Auto Salvage Auctions by Unqualified Buyers

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Thoughtful Legislation Will Promote Environmental Protections, Improve Public Safety and Enhance the Capability of Law Enforcement by Restricting Access to Salvage Pools

It’s a critically important bill that will benefit everyone who operates a vehicle on the roads in our state.

The Utah Automotive Recyclers Association today strongly praised the Utah state legislature for passing SB 260, which restricts access to auto salvage auctions. The legislation has passed both chambers of the legislature and is pending the approval of Utah’s governor.

The following are the five main benefits that will result from SB 260:

1. The bill restricts auto salvage auctions to those who possess a valid Utah business license and a valid Utah sales tax license. This is an important way to protect Uah business interests and keep jobs in the state.

2. The bill closes a loophole that was exploited by individuals to acquire more than five salvage vehicles each year. This helps prevent abuse of the salvage auctions, reduces the number of vehicles that can fall into the hands of unqualified individuals, and enhances compliance with both the letter and the spirit of pre-existing Utah law.    

3. The bill makes it mandatory for salvage pools to submit applications to title the vehicles themselves and to submit the necessary paperwork to the Utah Motor Vehicle Enforcement Division (MVED) within 7 days of purchase. Additionally, all salvage auctions will be required to provide reports of all salvage auction sales to MVED within 48 hours. Such requirements reduce the abilities of criminals to misuse the titling system, and strengthen law enforcement’s ability to track the vehicles. The bill also codifies full and complete compliance with NMVTIS (National Motor Vehicle Title Information System) reporting requirements for all purchasers regardless of licensing. This closes some existing loopholes in reporting and requires anyone who purchases vehicles to report to the NMVTIS database, bolstering the ability of federal agents to track these vehicles and investigate crimes.

4. The bill creates a non-repairable category of vehicles, which is crucial to preventing severely damaged vehicles from being repaired and returned to the roads. It restricts the sale of these dangerous vehicles to licensed recyclers, dealers, and crushers who are qualified to dismantle these cars and to dispose of the potentially hazardous materials they contain.

5. The bill requires the disclosure of a vehicle’s salvage status to prospective buyers. This ensures that consumers know that the automobile is a salvage vehicle, and makes sure they receive a description of the potential problems that car could experience if someone were to attempt to repair it.

“Passage of this bill is a tremendous victory for the hardworking recyclers of Utah whose work every day protects the environment,” said local Utah recycler and UARA member Chris Mantas. The association promotes sound business practices and cooperative working relations with all agencies responsible for oversight of the automotive recycling industry at the local, state, and regional level. “The bill helps close off access of salvage vehicles to unqualified purchasers, and puts more power into the hands of law enforcement. It’s a critically important bill that will benefit everyone who operates a vehicle on the roads in our state, and is a great first step toward leveling the playing the field for Utah recyclers.”

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Sandy Blalock

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