CHAPTER 318

FORMERLY

SENATE BILL NO. 466

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 21, DELAWARE CODE, RELATING TO THE ESTABLISHMENT OF LICENSURE PROVISIONS FOR AUTOMOBILE RECYCLERS, TO INCLUDE DEFINITIONS, LOCATION REQUIREMENTS, APPLICATION FOR LICENSES AND RENEWAL OF SAME, REVOCATION OR SUSPENSION, HEARING NOTICE AND JUDICIAL REVIEW, PROCEDURES FOR THE NOTIFICATION AND TRANSFER OF RECORDS, AND PENALTY PROVISIONS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (two-thirds of all members elected to each House thereof concurring therein):

Section 1. Amend Title 21, Delaware Code, by adding thereto a new Chapter to be designated as Chapter 75 to read as follows:

CHAPTER 75. AUTOMOTIVE RECYCLERS

§7501. Definitions

As used In this Chapter:

(I) 'Automotive recyclers' means any person engaged in:

(I) dismantling, destroying, or scrapping any vehicle for the purpose of resale of its used parts; or

(ii) Otherwise acquiring vehicles for the benefit of their usable parts; and

Notwithstanding any provision to the contrary, any reference to motor vehicle salvage yard, junkyard, automotive graveyard, wrecking and dismantling, salvage dealer, or Junk dealer in any statute or rule or regulation shall apply to an

(2) 'License' means any license issued by the Department for the operation of an Automotive Recycler.

(3) 'Vehicle' means any vehicle or motor vehicle as defined in Chapter 1 of this Title or body or chassis of any vehicle to be dismantled, destroyed, scrapped, or resold.

(4) 'Person' means an individual, partnership, or corporation.

(5) 'Department' means the Department of Public Safety unless otherwise specified. §7502. License Requirements; Exception

(a) A person may not conduct the business of an automotive recycler or engage in the business of purchasing vehicles which are to be dismantled In whole or In part by that person for the sale of usable parts, or store vehicles more than 30 days that are to be dismantled unless said person is licensed under this Chapter.

(b) This Chapter does not prohibit an unlicensed person from transporting a vehicle to a licensed automotive recycler for dismantling, destroying, or scrapping; or to a scrap processor In the business of selling iron, steel, an nonferrous scrap for resmeiting purposes; or apply to abandoned vehicles or vehicles left in the possession of a garage or service station for storage purposes only pursuant to Chapter 44 of this Title.

(c) A person must possess a valid license issued by the Division of Revenue and if applicable a license issued pursuant to Chapter 12 of Title 11.

(d) Any other provision of this Chapter notwithstanding. In a case In which All automotive recycler is also the owner or has an interest in a junkyard, he/she must comply with all requirements of Chapter 12, Title 17.

§7503. Vcation Requirements

(a) A person may not be licensed to conduct an automotive recycler business under this Chapter unless:

(I) The business is conducted from a building that Is adequate and appropriate for automotive recycling as approved by the Division of Motor Vehicles; and

(2) The business has a storage area for at least twenty- five (25) vehicles the area is properly fenced and screened and the automotive recycler has complied with all of the requirements of Title 17, Chapter 12 of the Delaware Code and all rules and regulations adopted pursuant thereto; and

(3) The location is properly zoned by the local zoning authority for the operation of an automotive recycler business; and

(4) The business be at a fixed location, as specified in the license application; and

(5) There be a substantial and legible sign:

(a) that advertises the type of business conducted at the location; and

(b) that is placed in • manner that is readily seen by the public; and

(c) that is in conformance with all state and local regulations, laws and ordinances. §7504. Application for License

The Department shall devise an automotive recycler license application which shall Include the following:

(1) The name of the business;

(2) The address of the business; and

(3) If the business is a proprietorship, partnership, or corporation, the names and addresses of all principals, partners, or corporate officers and resident agents.

§7505. Issuance of Licenses

The Department shall issue an 'Automotive Recycler'license under this Chapter to an applicant who is in compliance with this Chapter and otherwise is entitled to a license.

§7506. License Fee and Renewal

Each automotive recycler under this Chapter shall pay an annual fee for each license issued in the amount of $100.00.

A license issued under this Chapter shall expire on December 31 of each year, and may be renewed by application and payment of license fees.

§7507. Record of Vehicles

Each automotive recycler shall keep accurate and complete records of all vehicles or motor vehicles acquired in his business. The records shall be maintained in an accessible place and shall contain the following information:

(1) The names and addresses of the person or persons from whom the vehicle was acquired and/or sold;

(2) The date of acquisition and sale of the vehicle; and

(3) Documentary evidence of ownership as required by the Department.

During business hours, vehicles, parts thereof, and records and premises of the automotive recycler shall be open to inspection by the Department or any police officer while discharging his official duties.

§7508. Refusal. Suspension, or Revocation of License

The Department may refuse to grant a license under this Chapter to a person and may suspend, revoke, or refuse to renew a license of any person if it finds that:

(1) The person has violated or is attempting to violate any provision of this Chapter or any rule or regulation adopted by the Department under this Chapter;

(3) The person has violated or is attempting to violate any other provisions of the Delaware Code that relate to the business activity of that person; or any automotive recycler or employee has violated or is attempting to violate any provision of this Chapter and any rule or regulation adopted under this Chapter or any other provisions of the Delaware Code that relate to the business activities of the person unless the Department is satisfied that the management of the business:

(a) Had no knowledge of the wrongful conduct; or

(b) Were unable to prevent the violation or attempted violation. §7509. Hearing Notice

A license issued under this Chapter may be suspended, revoked, refused or refuse to be renewed only after notice of hearing has been served upon the person or his representatives. Said hearing notice shall contain:

(1) AU charges made against said person: and

(2) The date, approximate time, and place of the hearing must be specified. §7510. Hearing Procedures

All hearings shall conform to the provisions of the Administrative Procedures Act, Chapter 101, of Title 29, Delaware Code.

§7511. Judicial Review

Any aggrieved party to a hearing may appeal a decision or order of the Department to the Superior Court for review de novo.

§7512. Penalty

Any person who violates the provisions of this Chapter relating to the requirements of licensing or the maintenance of vehicle records shall be guilty of a class B misdemeanor u the same is defined in Chapter 42 of Title II, and shall be subject to the penalties prescribed therein.

§7513. Severability

If any section, subsection, paragraph, sentence, clause, or phrase of this Chapter shall be declared invalid for any reason whatsoever, such decision shall not affect the remaining portions of this Chapter which shall continue in full force and effect; and to this end the provisions of this Chapter are hereby declared to be severable."

Section 2. Amend Title 21, Chapter 21, Subchapter II, Subsection 2124 by renumerating section (I) to read as section (j) and by adding new section (i) to read u follows:

"(I) Notwithstanding the provisions of this section, the Department upon approving an application filed by a licensed Automotive Recycler may issue one or more special plates u provided for in Paragraph (a) of this Subsection.

Section 3. Amend Title 21, Chapter 21, §2153 by Inserting the words "Automotive Recycler", after the word "Transporter" in the Title of said Section; further amend said section by Inserting the words "Automotive Recycler" after the word "Transporter".

Section 4. Amend Chapter 25, Title 21 of the Delaware Code by striking §2505 in its entirety and substituting in lieu thereof a new §2505 to read as follows:

§2505. procedures; Transfer of Records and Notification

(a) Whenever an Automotive Recycler purchases or otherwise acquires any vehicle, whether registered or unregistered, for the purpose of wrecking or dismantling it in order to resell the parts thereof, such automotive recycler shall obtain the certificate of title issued by this State or any other state, a salvage certificate or other acceptable evidence or ownership from the seller or transferee which shall be deemed to meet all State proof of ownership, and shall be kept by the automotive recycler at the place of business where the vehicle was originally acquired by the automotive recycler. The automotive recycler shall report the acquisition of all vehicles to the Department on a monthly basis on a form devised by the Department. If the vehicle Is transferred by the automotive recycler or his agent to another person or location. It shall be noted by the automotive recycler in the record, and the proof of ownership shall be transferred and kept at the same location u the vehicle, unless the vehicle is transferred to a scrap processor for recycling the vehicle scrap in which case the automotive recycler shall immediately send or deliver the proof of ownership of the vehicle to the Department. In this cue the automotive recycler shall complete a three part form provided by the Department and shall:

(i) Retain one copy in Ms records;

(ii) Forward one copy to the Department together with the proof of ownership, and;

(iii) Forward the remaining copy to the scrap processor, and;

(iv) The scrap processor shall, upon destruction of the vehicle, retain a copy in Ms records. The copy retained by the scrap processor shall be kept for a period of three (3) years and the scrap processor shall make the same available for inspection by any police officer during the regular working hours of such business.

(b) The records and information required by this Section shall be maintained by the automotive recycler for as long as said vehicle remains in his possession or control; provided, however, that if the automotive recycler transfers such vehicle to another person he shall nevertheless keep such records and information for a period of three (3) years from the date of such transfer. All records shall be maintained at the approved business location.

(c) If the ownership of the vehicle held for resale is transferred for titling and registration purposes. the transferring licensed automotive recycler without applying for a new certificate of title may execute an assignment of the certificate of title or salvage certificate to the transferee on the reusignment form prescribed by the Department.

(d) Any person who fails, neglects or refuses to maintain the records and information required by this Section, or who shall refuse to permit the examination of the records or information by persons permitted to do so by this Section or Chapter 75 of this Title, shall be guilty of a class B misdemeanor u the same is defined in Chapter 42 of Title II, and shall be subject to the penalties prescribed therein.

Section 5. Amend Title 21, Chapter 44, §4402, Paragraph (g) by striking it in its entirety and substituting in lieu thereof the following:

"(g) Any persom who possesses or on whose property any abandoned vehicle or motor vehicle Is found or who owns a vehicle or motor vehicle for which the certificate of title is lost or destroyed and such vehicle or motor vehicle is more than eights years old and has no engine or is otherwise totally inoperable, may transfer the vehicle or motor vehicle to a licensed automotive recycler without the certificate of title but shall be made on forms furnished by the Department. In such cues, the licensed automotive recycler may take the vehicle or motor vehicle into his possession and shall Immediately obtain from the Division of Motor Vehicles. the name and address of the last known owner of the vehicle or motor vehicle or secured party. The licensed automotive recycler shall give at least 10 days notice to the owner or secured party by certified mail return receipt requested. If the vehicle is not reclaimed within the 10 days period specified in the noticed, the licensed automotive recycler assumes unencumbered title to the vehicle.

If the rune and address of the owner or secured party cannot be obtained from the records of the Division of Motor Vehicles or by exercising reasonable diligence the licensed automotive recycler assumes unencumbered title after the vehicle or motor vehicle has been in his possession for 30 days.

Notice of assumption of ownership shall be made to the Division of Motor Vehicles on forms devised by the Division."

Section 6. This Act shall become effective 90 days after its enactment.

Approved June 27, 1986.