Ohio enacts new rules for issuing rebuilt salvage title certificates

On March 25, 2025, the Ohio Legislature introduced House Bill 199, aimed at reforming the process for issuing titles for rebuilt salvage vehicles. The bill seeks to enhance transparency and safety in the automotive market by mandating that all certificates of title for rebuilt salvage vehicles prominently display the words "REBUILT SALVAGE" in bold letters. This requirement applies to original titles as well as any subsequent duplicates or memorandum certificates.

Key provisions of the bill include the establishment of a standardized format for these titles, which will be determined by the registrar. Additionally, the bill outlines that a fee of $50 will be charged by the state highway patrol for inspections related to these titles, with funds directed to the public safety - highway purposes fund. The legislation also stipulates that vehicles marked "FOR DESTRUCTION" cannot be used except for parts or scrap metal, reinforcing the intent to prevent unsafe vehicles from re-entering the market.

Debate surrounding House Bill 199 has highlighted concerns from various stakeholders. Proponents argue that the bill will protect consumers from unknowingly purchasing unsafe vehicles, while opponents express worries about the potential financial burden on vehicle owners due to inspection fees. Some critics also question the effectiveness of the proposed measures in truly ensuring vehicle safety.

The implications of this bill are significant, as it addresses ongoing issues related to vehicle safety and consumer protection in Ohio. Experts suggest that if passed, the bill could lead to a more regulated automotive market, potentially reducing the number of unsafe vehicles on the road. However, the financial impact on vehicle owners and the administrative burden on clerks and registrars remain points of contention.

As the legislative process continues, House Bill 199 will likely undergo further scrutiny and possible amendments. The outcome of this bill could set a precedent for how rebuilt salvage vehicles are managed in Ohio, influencing both consumer safety and the automotive industry at large.