Senate Transportation Committee OKs Plan to Protect Car Buyers from Salt-Damaged Vehicles

Press Release

Senate Transportation committee OKs plan to protect car buyers from salt-damaged vehicles

Transportation leaders today approved a consumer-protection bill by Sen. Jenny Oropeza to protect Californians from buying hurricane-damaged vehicles.

"In 2005 hurricanes Katrina, Rita and Wilma flooded an estimated 600,000 vehicles, and forecasters expect additional hurricanes along the Gulf Coast and eastern seaboard," Oropeza said after the Senate Transportation Committee approved Senate Bill 498, which is supported by state Insurance Commissioner Steve Poizner. "Because California is the largest automobile market, cars flooded by hurricanes are shipped here and sold at auto auctions, used car lots and in classified ads. Given the high-tech nature of today's cars and trucks, damage from water tainted by salt and toxic chemicals can create potential time bombs."

SB 498 would make it a misdemeanor to resell or transfer ownership of a vehicle totaled due to saltwater damage.

Oropeza said SB 498 targets the source of the problem by making it illegal for insurance companies, dismantlers, salvage pools, rebuilders and dealers who know a vehicle is a total loss due to saltwater damage to sell, consign or transfer that vehicle in California.

Oropeza introduced the measure after the California Department of Motor Vehicles, the American Association of Motor Vehicle Administrators, U.S. EPA and numerous other state motor vehicle agencies and consumer groups warned consumers to be wary of salt-water damaged vehicles.

SB 498 now goes to the Senate Appropriations Committee. No date has been set.

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