HB1537 Summary

• Defines "salvage vehicle" as a motor vehicle that is water-damaged or sustains damage equal to or exceeding 70% of average retail value, with specific definitions for water damage involving electronic system contamination or water entering the passenger compartment.

• Requires salvage auction operators to restrict title transfers to licensed new/used motor vehicle dealers or licensed wreckers/dismantlers effective January 1, 2014, with a limit of two salvage vehicles per person per year and penalties up to $1,000 for violations.

• Mandates salvage auction operators maintain a five-year register of all salvage vehicle sales including vehicle details, buyer/seller information, and title documents, made available for law enforcement inspection during business hours.

• Requires "SALVAGE VEHICLE - NOT FOR RESALE WITHOUT DISCLOSURE" warning language printed clearly on certificate of title front pages, alerting purchasers that salvage vehicles may be unsafe and some states prohibit or restrict their registration.

• Permits out-of-state motor vehicle dealers, wreckers, and dismantlers to purchase salvage vehicles at Arkansas auctions if their state has a reciprocity agreement with Arkansas and they comply with reporting requirements to the National Motor Vehicle Title Information System.