HB 228: Vehicle Sales Amendments - Utah

Substitute #2 → Enrolled · 6 edits · Mar 23, 2026

MODERATE

This bill updates Utah's vehicle title laws to align with the National Motor Vehicle Title Information System (NMVTIS), requiring the state to check a national database before issuing titles. It also clarifies definitions for various vehicle types and brands, such as 'compliant gray market' and 'rebuilt and restored,' to ensure consumers are accurately informed about a vehicle's history.

Scope change

The bill expands the scope of title checks to include a mandatory national database search and refines the criteria for branding vehicles that have been repaired or restored.

REQUIREMENT

Requires the Motor Vehicle Division to check the National Motor Vehicle Title Information System (NMVTIS) before issuing new Utah titles to identify salvage, total loss, or damaged vehicles.

DEFINITION

Adds and clarifies definitions for terms like 'compliant gray market' (vehicles altered to meet safety standards) and specific 'rebuilt and restored' brand labels.

Updates the definition of 'Branded title' to explicitly include 'rebuilt and restored to operation' and 'flooded and restored to operation'.

Refines the definition of 'Gray market' to specify vehicles manufactured outside the US that do not meet federal or state safety/emissions standards.

Adds a new definition for 'Rebuilt and restored' to reference Section 41-1a-1004 for qualification criteria.

TIMELINE

Sets the effective date of the bill to January 1, 2027.

Substitute #1 → Substitute #2 · 7 edits

MODERATE

This bill updates Utah's vehicle title laws to improve transparency and safety regarding salvaged vehicles. Key changes include requiring the state to check a national database before issuing titles, adding new definitions for modern vehicle types, and tightening rules on how 'rebuilt and restored' vehicles are branded and advertised.

Scope change

The bill expands the scope of title branding to include specific labels for fire, flood, and hail damage, and adds a new requirement for odometer discrepancy disclosures on titles.

REQUIREMENT

Requires the Motor Vehicle Division to check the National Motor Vehicle Title Information System (NMVTIS) before issuing new Utah titles.

Requires the Motor Vehicle Division to label titles with 'Odometer discrepancy' if the vehicle's mileage does not match the actual distance driven.

Adds a requirement that advertisements for total loss vehicles must explicitly use the phrase 'insurer declared total loss'.

DEFINITION

Adds new definitions for 'Alternative fuel vehicle', 'Compliant gray market', 'Electric motor vehicle', 'Plug-in hybrid electric motor vehicle', and 'Restored-modified vehicle'.

Updates definitions for 'Fire damaged', 'Flood damaged', and 'Hail damaged' to require an insurance company to declare the vehicle a 'total loss' rather than just deeming it unsafe.

ELIGIBILITY

Modifies eligibility for 'rebuilt and restored' branding by adding a requirement that gray market vehicles must pass a safety inspection to qualify.

TIMELINE

Changes the bill's effective date from January 1, 2026, to January 1, 2027.

Introduced → Substitute #1 · 6 edits

MODERATE

This bill expands the Motor Vehicle Division's authority to check a national database (NMVTIS) before issuing new titles to ensure vehicles are not stolen or previously declared total losses. It also updates definitions for 'gray market' vehicles and clarifies how 'rebuilt and restored' brands are applied based on the vehicle's prior history.

Scope change

The bill adds a new requirement for the Motor Vehicle Division to check national records for all new title applications, whereas the previous version did not explicitly mandate this specific database check in the statute.

REQUIREMENT

Requires the Motor Vehicle Division to check the National Motor Vehicle Title Information System (NMVTIS) against stolen and recovered vehicle indices before issuing a new Utah certificate of title.

DEFINITION

Added a new definition for 'Compliant gray market' to describe vehicles that were previously branded as gray market but have been altered to meet federal and state safety and emissions standards.

Updated the definition of 'Gray market' to explicitly include that the vehicle does not meet federal or state motor vehicle safety or emissions standards.

ELIGIBILITY

Changed the criteria for a 'gray market' vehicle to receive a 'rebuilt and restored' brand; it now requires the vehicle to be altered to meet federal and state safety standards rather than just meeting safety standards.

TECHNICAL

Added Section 41-1a-513 to codify the requirement for examining national title records and indices of stolen vehicles.

TIMELINE

Added a new section specifying that the bill takes effect on January 1, 2027.

Vehicle Sales Amendments

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