Bill for the Restriction of Use and Registration of Actions in Used Vehicle Parts (Prevention of Thefts) (Amendment - Obligations Applicable Upon Purchase or Sale of a Damaged Vehicle), 5784-2024

The bill seeks to amend the existing law concerning the restriction of use and registration of actions in used vehicle parts, with the aim of preventing thefts. The proposed changes focus on the obligations applicable to vehicle owners and certain entities when purchasing or selling a significantly damaged vehicle. The proposal redefines the terms "vehicle dealer" and "damaged vehicle." A "vehicle dealer" will be defined as someone who sells a used vehicle, and a "damaged vehicle" will be defined as a vehicle for which an appraiser has determined a gross damage amounting to 60% or more of the vehicle's value. The main proposed changes are: Reporting obligation for the sale of a damaged vehicle: An insurer, fleet owner, or vehicle dealer who sells a significantly damaged vehicle (as defined above) will be required to report this to the Licensing Authority within one business day from the date of ownership transfer. The reporting obligation will apply even if the vehicle is sold before being repaired or is sold for the purpose of repair. Registration of a note on the vehicle license: Upon receiving the report, the Licensing Authority will register a note on the vehicle license stating that it was sold with damage. This registration will be carried out within 48 hours of the report date. Restrictions on renewing a damaged vehicle license: A license for a significantly damaged vehicle will not be renewed unless the vehicle has passed an inspection at an authorized laboratory. Fines for non-reporting: Failure to report the sale of a damaged vehicle will result in an increased fine, seven times the fine stipulated in the Penal Law (currently, approximately 204,400 NIS). Definition of "business day": For the purpose of the reporting obligation, a "business day" will be defined as weekdays, excluding Friday, Saturday, holiday eves, rest days, and holidays established by law. The proposal is intended to increase transparency regarding the condition of severely damaged vehicles, prevent the trade of defective vehicles without the buyers' knowledge, and combat the phenomenon of vehicle theft and the use of stolen vehicle parts. It also aims to ensure that repairs on these vehicles are performed professionally and safely.

Source: הצעת חוק לדיון מוקדם