S 169

SENATE, No. 169
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
���� Requires MVC to establish system for salvage
processors to electronically process salvage certificates of title.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act concerning salvage certificates of title and
amending P.L.1983, c.323.
���� Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Section 2 of P.L.1983,
c.323 (C.39:10-32) is amended to read as follows:
���� 2.��� a.� If a motor vehicle
has either been reported as being stolen or suffered sufficient damage to
render it economically impractical to repair, the person in possession of the
certificate of ownership for the vehicle shall surrender the certificate of ownership
to the chief administrator along with a statement setting forth how the person
acquired the certificate of ownership.
���� b.��� The chief administrator,
after determining ownership, shall issue a salvage certificate of title to a
person who surrenders a certificate of ownership pursuant to subsection a. of
this section.
���� c.���� (1) Notwithstanding any
provision of law to the contrary, when an insurer licensed to do business in
New Jersey settles a total loss claim with the owner of a motor vehicle, and
the owner of the motor vehicle fails to assign and deliver the motor vehicle's
certificate of ownership to the insurer within 30 days of the payment of the
claim, the insurer or an agent of the insurer may apply to the chief
administrator for a certificate of ownership or a salvage certificate of title
for the motor vehicle in the name of the insurer without providing a
certificate of ownership; provided that the chief administrator determines that
the issuance of a certificate of ownership is appropriate, in accordance with
the provisions of P.L.1983, c.323 (C.39:10-31 et seq.).
���� The provisions of this
subsection shall only apply when the most recent certificate of ownership for
the motor vehicle was issued by this State.
���� (2)�� The insurer shall
provide notice to the owner and any lienholder of the motor vehicle identified
in the records of the commission at least 30 days prior to applying for a
certificate of ownership or a salvage certificate of title pursuant to this
subsection.� The notice shall be sent by certified mail or commercial courier
whose regular business is delivery service and that provides proof of delivery
to the owner and any lienholders at the last known address identified in the
records of the commission.� Failure to provide the notice required by this
paragraph shall be cause for the chief administrator to deny issuance of a
certificate of ownership or a salvage certificate of title.
���� (3)�� The application for a
certificate of ownership or a salvage certificate of title shall be made on a
form prescribed by the chief administrator and shall include proof of payment
of the claim, proof that the insurer requested the certificate of ownership,
and proof that notice was provided, as required by paragraph (2) of this
subsection, to the owner and any lienholders of the motor vehicle.� Failure to
provide the proof required by this paragraph shall be cause for the chief
administrator to deny issuance of a certificate of ownership or a salvage
certificate of title.
���� (4)�� If, based upon the
records of the commission, there was an outstanding lien or liens against the
motor vehicle immediately prior to the payment of the claim and the claim was
paid to a lienholder or lienholders, or to a lienholder or lienholders and the owner
jointly, the proof of payment required pursuant to paragraph (3) of this
subsection shall also include proof that the claim was paid to, or a letter
stating that the lienholder has no interest in the motor vehicle was received
from, each lienholder identified in the records of the commission.� Failure to
provide the proof required by this paragraph shall be cause for the chief
administrator to deny issuance of a certificate of ownership or a salvage
certificate of title.
���� (5)�� Upon proper application,
the chief administrator shall issue a certificate of ownership or a salvage
certificate of title, as appropriate, in the name of the insurer.� In the event
the insurer sells the motor vehicle, the insurer shall assign the certificate
of ownership or salvage certificate of title to the buyer.
���� d.��� (1) Notwithstanding any
provision of law to the contrary, when an insurer licensed to do business in
New Jersey settles a total loss claim with the owner of a motor vehicle, and
the owner of the motor vehicle fails to assign and deliver the motor vehicle's
certificate of ownership to the insurer within 30 days of the payment of the
claim, the insurer or an agent of the insurer may apply to the chief
administrator for a certificate of ownership or a salvage certificate of title
for the motor vehicle in the name of the insurer without providing a
certificate of ownership; provided that the chief administrator determines that
the issuance of a certificate of ownership is appropriate, in accordance with
the provisions of P.L.1983, c.323 (C.39:10-31 et seq.).
���� The provisions of this
subsection shall only apply when the most recent certificate of ownership for a
motor vehicle was issued by another state; the motor vehicle records of the
jurisdiction that issued the certificate of ownership indicate that there are
no liens recorded against the motor vehicle; and the motor vehicle was damaged,
stolen, or recovered in this State, was owned by a resident of this State
immediately prior to a total loss settlement by an insurer, or as otherwise
permitted by the chief administrator.
���� (2)�� The insurer shall
provide notice by certified mail or commercial courier whose regular business
is delivery service and that provides proof of delivery to the owner at least
30 days prior to applying for a certificate of ownership or a salvage
certificate of title pursuant to this subsection.� Failure to provide the
notice required by this paragraph shall be cause for the chief administrator to
deny issuance of a certificate of ownership or a salvage certificate of title.
���� (3)�� The application shall be
made on a form prescribed by the chief administrator and shall include proof of
payment of the claim, proof that the insurer requested the certificate of
ownership, and proof that notice was provided to the owner of the motor vehicle
pursuant to paragraph (2) of this subsection.� Failure to provide the proof
required by this paragraph shall be cause for the chief administrator to deny
issuance of a certificate of ownership or a salvage certificate of title.
���� (4)�� Upon proper application,
the chief administrator shall issue a certificate of ownership or a salvage
certificate of title, as appropriate, in the name of the insurer for the motor
vehicle.� In the event the insurer sells the motor vehicle, the insurer shall
assign the certificate of ownership or salvage certificate of title to the
buyer.
���� e.���� (1) Notwithstanding any
provision of law to the contrary, when an insurer licensed to do business in
New Jersey settles a total loss claim with the owner of a motor vehicle and the
insurer obtains the certificate of ownership for the vehicle, but it is not
properly assigned to the insurer within 30 days of the payment of the claim,
the insurer or an agent of the insurer may apply to the chief administrator for
a certificate of ownership or a salvage certificate of title, as appropriate,
in the name of the insurer.
���� (2)�� The insurer shall
provide notice to the owner and any lienholder, based upon the records of the
commission, at least 30 days prior to applying for a certificate of ownership
or a salvage certificate of title pursuant to this subsection.� The notice
shall be sent by certified mail or commercial courier whose regular business is
delivery service and that provides proof of delivery to the owner and any
lienholder at the last known address based upon the records of the commission.�
Failure to provide the notice required by this paragraph shall be cause for the
chief administrator to deny issuance of a certificate of ownership or a salvage
certificate of title.
���� (3)�� The application for a
certificate of ownership or a salvage certificate of title shall be made on a
form prescribed by the chief administrator and shall include proof of payment
of the claim, the certificate of ownership, proof that the insurer attempted to
obtain the proper assignment of the certificate of ownership, and proof that
notice was provided to the owner of the motor vehicle and any lienholder, in
accordance with paragraph (2) of this subsection.� Failure to provide the proof
required by this paragraph shall be cause for the chief administrator to deny
issuance of a certificate of ownership or a salvage certificate of title.
���� (4)�� Upon proper application,
the chief administrator shall issue a certificate of ownership or a salvage
certificate of title, as appropriate, in the name of the insurer.� In the event
the insurer sells the motor vehicle, the insurer shall assign the certificate
of ownership or salvage certificate of title to the buyer.
���� f.���� (1) If an insurer
requests that a salvage processor, whose primary business is the sale of total
loss motor vehicles on behalf of insurers, take possession of a motor vehicle
that is the subject of an insurance claim and subsequently, the insurer does not
take ownership of the vehicle, the insurer may authorize the salvage processor
to release the vehicle to the owner or lienholder.� The insurer shall provide
to the salvage processor a release statement authorizing the release of the
vehicle to the owner or lienholder.
���� Upon receiving a release
statement from an insurer, the salvage processor shall, within five business
days, provide notice to the owner and any lienholder identified in the records
of the commission, informing the owner and any lienholder that the vehicle may
be released, upon payment of any outstanding charges, and that failure to claim
the vehicle will result in the vehicle being deemed abandoned.� The notice
shall include an invoice for any outstanding charges owed to the salvage
processor and shall inform the owner or lienholder that the vehicle is required
to be claimed within 60 days from the date of the notice.� The notice shall
also inform the owner or lienholder of the location of the vehicle.� The notice
required under this subsection shall be sent by certified mail or commercial
courier whose regular business is delivery service and that provides proof of
delivery to the last known address based upon the records of the commission.
���� (2)�� Notwithstanding any
provision of law to the contrary, in the event the owner or lienholder of the
vehicle does not claim the vehicle within 60 days after the date of the notice,
the vehicle shall be deemed abandoned and the salvage processor may apply to
the chief administrator for the issuance of a salvage certificate of title or a
junk title certificate for the motor vehicle in the name of the salvage
processor without providing a certificate of ownership.� The application shall
include proof that notice was provided to the owner of the motor vehicle and
any lienholder.�
���� (3)�� Upon proper application,
the chief administrator shall issue a salvage certificate of title or a junk
title certificate, as appropriate, in the name of the salvage processor, which
shall extinguish any existing liens against the motor vehicle.� If the salvage
processor sells the motor vehicle, the salvage certificate of title or junk
title certificate shall be assigned to the buyer and the vehicle shall be
transferred without any liens against it.
���� g.��� The chief administrator
shall be immune from liability for any errors or misrepresentations made by an
insurer pursuant to subsections c., d., and e. of this section or by a salvage
processor pursuant to [subsection] subsections
f. and i. of this section.
���� h.��� Notwithstanding any
provision of law or regulation to the contrary, an insurer licensed to do
business in this State shall be permitted to submit with an application for a
certificate of ownership or salvage certificate of title a power of attorney
executed electronically by a person who has received or is due to receive a
total loss settlement from an insurer in a form and in a format to be
prescribed by the chief administrator.
���� A power of attorney signed
electronically is not required to be notarized but shall, at a minimum, meet
security requirements prescribed by the chief administrator.
���� The chief administrator shall
adopt regulations to implement the provisions of this subsection, and may
prescribe the form and format of an electronically signed power of attorney and
any additional security requirements the chief administrator deems necessary,
including any requirements to ensure that any power of attorney signed
electronically complies with federal odometer disclosure requirements under 49
C.F.R. s.580.1 et seq.
���� i.���� (1) With respect to
salvage certificates of title and certificates of ownership issued pursuant to
this section, the chief administrator shall allow any salvage processor, whose
primary business is the sale of total loss motor vehicles on behalf of
insurers, to electronically submit applications for the issuance of salvage
certificates of title and certificates of ownership, documentation supporting
such applications, and any required fees.
���� (2) The chief administrator
shall adopt a process for the electronic issuance of salvage certificates of
title and certificates of ownership that allows the salvage processor to print
salvage certificates of title and certificates of ownership at the facility of
the salvage processor.
(cf: P.L.2021, c.360, s.1)
���� 2.��� This act shall take
effect immediately but shall remain inoperative until 180 days following
enactment.
STATEMENT
���� This bill requires the Chief
Administrator of the New Jersey Motor Vehicle Commission to allow salvage
processors to electronically submit applications for the issuance of salvage
certificates of title and certificates of ownership, documentation supporting
those applications, and any required fees.� The bill also requires the chief
administrator to allow salvage processors to print salvage certificates of
title and certificates of ownership at the facility of the salvage processor.